10-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-K

(Mark One)

☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2018

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period fromto

Commission File Number 1-36756

Lamar Advertising Company

Commission File Number 1-12407

Lamar Media Corp.

(Exact names of registrants as specified in their charters)

Delaware Delaware	72-1449411 72-1205791
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

5321 Corporate Blvd., Baton Rouge, LA	70808
(Address of principal executive offices)	(Zip Code)

Registrants’ telephone number, including area code: (225) 926-1000

SECURITIES OF LAMAR ADVERTISING COMPANY

REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT:

Title of each class Class A common stock, $0.001 par value Name of exchange on which registered The NASDAQ Stock Market, LLC

SECURITIES OF LAMAR ADVERTISING COMPANY

REGISTERED PURSUANT TO SECTION 12(g) OF THE ACT:

None

SECURITIES OF LAMAR MEDIA CORP.

REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT:

None

SECURITIES OF LAMAR MEDIA CORP.

REGISTERED PURSUANT TO SECTION 12(g) OF THE ACT:

None

Indicate by check mark if Lamar Advertising Company is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.    Yes  ☒    No  ☐

Indicate by check mark if Lamar Advertising Company is not required to file reports pursuant to Section 13 or Section 15(d) of the Exchange Act.    Yes  ☐    No  ☒

Indicate by check mark if Lamar Media Corp. is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.    Yes  ☐    No  ☒

Indicate by check mark if Lamar Media Corp. is not required to file reports pursuant to Section 13 or Section 15(d) of the Exchange Act.    Yes  ☒    No  ☐

Indicate by check mark whether each registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒    No  ☐

Indicate by check mark whether each registrant has submitted electronically every Interactive Date File required to be submitted pursuant to Rule 405 of Regulation S-T (Section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☒    No  ☐

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of Lamar Advertising Company’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.  ☒

Indicate by check mark whether Lamar Advertising Company is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See definitions of “accelerated filer”, “large accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☒	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
Emerging growth company	☐

If an emerging growth company, indicate by check mark if Lamar Advertising Company has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether Lamar Media Corp. is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See definitions of “accelerated filer”, “large accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☐
Emerging growth company	☐

If an emerging growth company, indicate by check mark if Lamar Media Corp. has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark if either registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ☐    No  ☒

The aggregate market value of the voting stock held by nonaffiliates of Lamar Advertising Company was $5,734,846,576 based on $68.31 per share as reported at the close of trading on the NASDAQ Global Select Market on June 29, 2018, the last business day of the registrant’s most recently completed second fiscal quarter.

As of June 29, 2018, the aggregate market value of the voting stock held by nonaffiliates of Lamar Media Corp. was $0.

Indicate the number of shares outstanding of each of the issuers’ classes of common stock, as of the latest practicable date.

Class	Outstanding at February 1, 2019
Lamar Advertising Company Class A common stock, $0.001 par value per share	85,163,142 shares
Lamar Advertising Company Class B common stock, $0.001 par value per share	14,420,085 shares
Lamar Media Corp. common stock, $0.001 par value per share	100 shares

DOCUMENTS INCORPORATED BY REFERENCE

Document	Parts into Which Incorporated
Proxy Statement for the Annual Meeting of Stockholders scheduled to be held on May 30, 2019 (Proxy Statement)	Part III

This combined Form 10-K is separately filed by (i) Lamar Advertising Company and (ii) Lamar Media Corp. (which is a wholly owned subsidiary of Lamar Advertising Company). Lamar Media Corp. meets the conditions set forth in general instruction I(1) (a) and (b) of Form 10-K and is, therefore, filing this form with the reduced disclosure format permitted by such instruction.

TABLE OF CONTENTS

PART I
Special Note Regarding Forward-Looking Statements
ITEM 1.	Business	4
	General	4
	Corporate History	5
	Operating Strategies	5
	Capital Allocation Strategy	6
	Company Operations	6
	Competition	8
	Geographic Diversification	10
	Taxable REIT Subsidiaries	10
	Advertising Tenants	11
	Regulation	11
	Legal Proceedings	12
	Real Estate Portfolio	12
	Contract Expirations	13
	Employees	13
	Inflation	13
	Seasonality	13
	Available Information	14
ITEM 1A.	Risk Factors	14
ITEM 1B.	Unresolved Staff Comments	21
ITEM 2.	Properties	21
ITEM 3.	Legal Proceedings	22
ITEM 4.	Mine Safety Disclosures	22
PART II
ITEM 5.	Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	23
ITEM 6.	Selected Financial Data	24
ITEM 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	25
	Lamar Advertising Company	25
	Overview	25
	Non-GAAP Financial Measures	25
	Results of Operations: Years Ended December 31, 2018 and 2017	27
	Results of Operations: Years Ended December 31, 2017 and 2016	29
	Liquidity and Capital Resources	31
	Critical Accounting Estimates	37
	Accounting Standards and Regulatory Update	38
	Lamar Media	40
	Results of Operations: Years Ended December 31, 2018 and 2017	40
	Results of Operations: Years Ended December 31, 2017 and 2016	42
ITEM 7A.	Quantitative and Qualitative Disclosures About Market Risk	45
ITEM 8.	Financial Statements	46
ITEM 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	107
ITEM 9A.	Controls and Procedures	107
ITEM 9B.	Other Information	108
PART III
ITEM 10.	Directors, Executive Officers and Corporate Governance	108
ITEM 11.	Executive Compensation	108
ITEM 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	108
ITEM 13.	Certain Relationships and Related Transactions, and Director Independence	108
ITEM 14.	Principal Accounting Fees and Services	108

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PART IV
ITEM 15.	Exhibits, Financial Statement Schedules	108
ITEM 16.	Form 10-K Summary	109
Index to Exhibits		110
Signatures		121

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NOTE REGARDING FORWARD-LOOKING STATEMENTS

Certain information included in this report is forward-looking in nature within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. This report uses terminology such as “anticipates,” “believes,” “plans,” “expects,” “future,” “intends,” “may,” “will,” “should,” “estimates,” “predicts,” “potential,” “continue” and similar expressions to identify forward-looking statements. Examples of forward-looking statements in this report include statements about: (i) our future financial performance and condition; (ii) our business plans, objectives, prospects, growth and operating strategies; (iii) our future capital expenditures and level of acquisition activity; (iv) our ability to integrate acquired assets and realize operating efficiency from acquisitions; (v) market opportunities and competitive positions; (vi) our future cash flows and expected cash requirements; (vii) expected timing and amount of distributions to our stockholders; (viii) estimated risks; (ix) our ability to maintain compliance with applicable covenants and restrictions included in Lamar Media Corp’s (“Lamar Media”) senior credit facility and the indentures relating to its outstanding notes; (x) stock price; and (xi) our ability to remain qualified as a real estate investment trust (“REIT”).

Forward-looking statements are subject to known and unknown risks, uncertainties and other important factors, including but not limited to the following, any of which may cause our actual results, performance or achievements to differ materially from those expressed or implied by the forward-looking statements: (i) the state of the economy and financial markets generally and their effects on the markets in which we operate and the broader demand for advertising; (ii) the levels of expenditures on advertising in general and outdoor advertising in particular; (iii) risks and uncertainties relating to our significant indebtedness; (iv) the demand for outdoor advertising and its continued popularity as an advertising medium; (v) our need for, and ability to obtain, additional funding for acquisitions, operations and debt refinancing; (vi) increased competition within the outdoor advertising industry; (vii) the regulation of the outdoor advertising industry by federal, state and local governments; (viii) our ability to renew expiring contracts at favorable rates; (ix) the integration of businesses that we acquire and our ability to recognize cost savings and operating efficiencies as a result of these acquisitions; (x) our ability to successfully implement our digital deployment strategy; (xi) the market for our Class A common stock; (xii) changes in accounting principles, policies or guidelines; (xiii) our ability to effectively mitigate the threat of and damages caused by hurricanes and other kinds of severe weather; (xiv) our ability to maintain our status as a REIT; and (xv) changes in tax laws applicable to REITs or in the interpretation of those laws.

The forward-looking statements in this report are based on our current good faith beliefs; however, actual results may differ due to inaccurate assumptions, the factors listed above or other foreseeable or unforeseeable factors. Consequently, we cannot guarantee that any of the forward-looking statements will prove to be accurate. The forward-looking statements in this report speak only as of the date of this report, and Lamar Advertising Company and Lamar Media Corp. expressly disclaim any obligation or undertaking to update or revise any forward-looking statement contained in this report, except as required by law.

INDUSTRY AND MARKET DATA

The industry and market data presented throughout this report are based on the experience and estimates of our management and the data in reports issued by third-parties, including the Outdoor Advertising Association of America (OAAA). In each case, we believe this industry and market data is reasonable. We have not, however, independently verified the industry and market data derived from third-party sources, and no independent source has verified the industry and market data derived from management’s experience and estimates.

PART I

ITEM 1. BUSINESS

GENERAL

Lamar Advertising Company is one of the largest outdoor advertising companies in the United States based on number of displays and has operated under the Lamar name since 1902. We operate in a single operating and reporting segment, advertising. We lease space for advertising on billboards, buses, shelters, benches, logo plates and in airport terminals. We offer our customers a fully integrated service, satisfying all aspects of their billboard display requirements from ad copy production to placement and maintenance.

We operate three types of outdoor advertising displays: billboards, logo signs and transit advertising displays.

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Billboards. As of December 31, 2018, we owned and operated approximately 156,900 billboard advertising displays in 45 states and Canada. We lease most of our advertising space on two types of billboards: bulletins and posters.

• Bulletins are generally large, illuminated advertising structures that are located on major highways and target vehicular traffic.

• Posters are generally smaller advertising structures that are located on major traffic arteries and city streets and target vehicular and pedestrian traffic.

In addition to traditional billboards, we also lease space on digital billboards, which are generally located on major traffic arteries and city streets. As of December 31, 2018, we owned and operated over 3,100 digital billboard advertising displays in 43 states and Canada.

Logo signs. We lease advertising space on logo signs located near highway exits.

• Logo signs generally advertise nearby gas, food, camping, lodging and other attractions.

We are the largest provider of logo signs in the United States, operating 23 of the 25 privatized state logo sign contracts. As of December 31, 2018, we operated approximately 149,000 logo sign advertising displays in 23 states and Canada.

Transit advertising displays. We also lease advertising space on the exterior and interior of public transportation vehicles, in airport terminals, and on transit shelters and benches in over 80 markets. As of December 31, 2018, we operated over 53,300 transit advertising displays in 22 states and Canada.

CORPORATE HISTORY

We have operated under the Lamar name since our founding in 1902 and have been publicly traded on NASDAQ under the symbol “LAMR” since 1996. We completed a reorganization on July 20, 1999 that created a holding company structure. At that time, the operating company (then called Lamar Advertising Company) was renamed Lamar Media Corp., and all of the operating company’s stockholders became stockholders of a new holding company. The new holding company then took the Lamar Advertising Company name, and Lamar Media Corp. became a wholly owned subsidiary of Lamar Advertising Company.

During 2014, we completed a reorganization in order to qualify as a real estate investment trust (a “REIT”) for federal income tax purposes. As part of the plan to reorganize our business operations so that we could elect to qualify as a REIT for the taxable year ended December 31, 2014, we completed a merger with our predecessor that was approved by our stockholders on November 17, 2014. At the time of the merger each outstanding share of our predecessor’s Class A common stock, Class B common stock and Series AA preferred stock was converted into the right to receive an equal number of shares of Class A common stock, Class B common stock and Series AA preferred stock of the surviving corporation, respectively. Accordingly, references herein to our Class A common stock, Class B common stock and Series AA preferred stock refer to our capital stock and the capital stock of our predecessor, as applicable. We hold and operate certain assets through one or more taxable REIT subsidiaries (“TRSs”). The non-REIT qualified businesses that we hold through TRSs include most of our transit and foreign operations.

We may, from time to time, change the election of previously designated TRSs to be treated as qualified REIT subsidiaries or other disregarded entities (“QRSs”), and may reorganize and transfer certain assets or operations from our TRSs to other subsidiaries, including QRSs.

In this Annual Report, unless the context otherwise requires, we refer to Lamar Advertising Company and its consolidated subsidiaries (and its predecessor and its consolidated subsidiaries), as applicable, as the “Company”, “Lamar Advertising” or “we”, we refer to Lamar Advertising’s wholly owned subsidiary Lamar Media Corp. as “Lamar Media.”

OPERATING STRATEGIES

We strive to be a leading provider of outdoor advertising services in each of the markets that we serve, and our operating strategies for achieving that goal include:

Continuing to provide high quality local sales and service. We seek to identify and closely monitor the needs of our tenants and to provide them with a full complement of high quality advertising services. Local advertising constituted approximately 76% of our net revenues for the year ended December 31, 2018, which management believes is higher than the industry average. We believe that the experience of our regional, territory and local managers has contributed greatly to our success. For example, our regional managers have been with us for an average of 33 years. In an effort to provide high quality

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sales and service at the local level, we employed over 1,050 local account executives as of December 31, 2018. Local account executives are typically supported by additional local staff and have the ability to draw upon the resources of our central office, as well as our offices in other markets, in the event business opportunities or customers’ needs support such an allocation of resources.

Continuing a centralized control and decentralized management structure. Our management believes that, for our particular business, centralized control and a decentralized organization provide for greater economies of scale and are more responsive to local market demands. Therefore, we maintain centralized accounting and financial control over our local operations, but our local managers are responsible for the day-to-day operations in each local market and are compensated according to that market’s financial performance.

Continuing to focus on internal growth. Within our existing markets we seek to increase our revenue and improve cash flow by employing highly-targeted local marketing efforts to improve our display occupancy rates and by increasing advertising rates where and when demand can absorb rate increases. Our local offices spearhead this effort and respond to local customer demands quickly.

In addition, we routinely invest in upgrading our existing displays and constructing new displays. Since January 1, 2008, we invested approximately $1.2 billion in capitalized expenditures, which include improvements to our existing real estate portfolio and the construction of new locations. Our regular improvement and expansion of our advertising display inventory allows us to provide high quality service to our current tenants and to attract new tenants.

Continuing to pursue other outdoor advertising opportunities. We plan to renew existing logo sign contracts and pursue additional logo sign contracts. Logo sign opportunities arise periodically, both from states initiating new logo sign programs and states converting from government-owned and operated programs to privately-owned and operated programs. Furthermore, we plan to pursue additional tourist oriented directional sign programs in both the United States and Canada and also other motorist information signing programs as opportunities present themselves. In addition, in an effort to maintain market share, we continue to pursue attractive transit advertising opportunities as they become available.

Reinvesting in capital expenditures including digital technology. We have a history of investing in capital expenditures, particularly in our digital platform. We spent approximately $117.6 million in total capital expenditures in fiscal 2018, of which approximately $45.9 million was spent on digital technology. We expect our 2019 capitalized expenditures to closely approximate our spending in 2018.

CAPITAL ALLOCATION STRATEGY

The objective of our capital allocation strategy is to simultaneously increase adjusted funds from operations and our return on invested capital. To maintain our REIT status we are required to distribute to our stockholders annually an amount equal to at least 90% of our REIT taxable income, excluding net capital gains. After complying with our REIT distribution requirements, we plan to continue to allocate our available capital among investment alternatives that meet our return on investment criteria. During 2018, we generated $564.8 million of cash from operating activities, which was used to fund capital expenditures, dividends to our shareholders and partially fund acquisitions.

• Capital expenditures program. We will continue to reinvest in our existing assets and expand our outdoor advertising display portfolio through new construction. This includes maintenance and growth capital expenditures associated with the construction of new billboard displays, the entrance into and renewal of logo sign and transit contracts, and the purchase of real estate and operating equipment.

• Acquisitions. We will seek to pursue strategic acquisitions of outdoor advertising businesses and assets. This includes acquisitions in our existing markets and in new markets where we can meet our return on investment criteria. When evaluating investments in new markets, our return on investment criteria reflects the additional risks inherent to the particular geographic area.

COMPANY OPERATIONS

Billboard Advertising

We lease most of our advertising space on two types of billboard advertising displays: bulletins and posters. As of December 31, 2018, we owned and operated approximately 156,900 billboard advertising displays in 45 states and Canada.  In 2018, we derived approximately 75% of our billboard advertising net revenues from bulletin rentals and 25% from poster rentals.

Bulletins are large, advertising structures (the most common size is fourteen feet high by forty-eight feet wide, or 672 square feet) consisting of panels on which advertising copy is displayed. We wrap advertising copy printed with computer-generated graphics

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on a single sheet of vinyl around the structure. To attract more attention, some of the panels may extend beyond the linear edges of the display face and may include three-dimensional embellishments. Because of their greater impact and higher cost, bulletins are usually located on major highways and target vehicular traffic. At December 31, 2018, we operated approximately 75,180 bulletin displays.

We generally lease individually-selected bulletin space to advertisers for the duration of the contract (ranging from 4 to 52 weeks). We also lease bulletins as part of a rotary plan under which we rotate the advertising copy from one bulletin location to another within a particular market at stated intervals (usually every sixty to ninety days) to achieve greater reach within that market.

Posters are smaller advertising structures (the most common size is eleven feet high by twenty-three feet wide, or 250 square feet; we also operate junior posters, which are five feet high by eleven feet wide, or 55 square feet). Poster panels utilize a single flexible sheet of polyethylene material that inserts onto the face of the panel. Posters are concentrated on major traffic arteries and target vehicular traffic, and junior posters are concentrated on city streets and target hard-to-reach pedestrian traffic and nearby residents. At December 31, 2018, we operated approximately 81,720 poster displays.

We generally lease poster space for 4 to 26 weeks; determined by the advertiser’s campaign needs.  Posters are sold in packages of Target Rating Point (“TRP”) levels, which determine the percentage of a target audience an advertiser needs to reach.  A package may include a combination of poster locations in order to meet reach and frequency campaign goals.

In addition to the traditional static displays, we also rent digital billboards. Digital billboards are large electronic light emitting diode (“LED”) displays (the most common sizes are fourteen feet high by forty-eight feet wide, or 672 square feet; ten and a half feet high by thirty six feet wide, or 378 square feet; and ten feet high by twenty-one feet wide, or 210 square feet) that are generally located on major traffic arteries and city streets. Digital billboards are capable of generating over one billion colors and vary in brightness based on ambient conditions. They display completely digital advertising copy from various advertisers in a slide show fashion, rotating each advertisement approximately every 6 to 8 seconds.  At December 31, 2018, our inventory included over 3,100 digital display billboards in various markets.  These 3,100 digital billboards generated approximately 24% of billboard advertising net revenue.

We own the physical structures on which the advertising copy is displayed. We build the structures on locations we either own or lease. In each local office, one employee typically performs site leasing activities for the markets served by that office. See Item 2. — “Properties.”

In the majority of our markets, our local production staffs perform the full range of activities required to create and install billboard advertising displays. Production work includes creating the advertising copy design and layout, coordinating its printing and installing the designs on the displays. Our talented design staff uses state-of-the-art technology to prepare creative, eye-catching displays for our tenants. We can also help with the strategic placement of advertisements throughout an advertiser’s market by using software that allows us to analyze the target audience and its demographics. Our artists also assist in developing marketing presentations, demonstrations and strategies to attract new tenant advertisers.

In marketing billboard displays to advertisers, we compete with other forms of out-of-home advertising and other media. When selecting the media and provider through which to advertise, advertisers consider a number of factors and advertising providers, which are described in the section entitled — “Competition” below.

Logo Sign Advertising

We entered the logo sign advertising business in 1988 and have become the largest provider of logo sign services in the United States, operating 23 of the 25 privatized state logo contracts. We erect logo signs, which generally advertise nearby gas, food, camping, lodging and other attractions, and directional signs, which direct vehicle traffic to nearby services and tourist attractions, near highway exits. As of December 31, 2018, we operated approximately 45,360 logo sign structures containing approximately 149,000 logo advertising displays in the United States and Canada.

We operate the logo sign contracts in the province of Ontario, Canada and in the following states:

Colorado	Georgia	Louisiana	Mississippi	Nebraska	Ohio	Utah
Delaware	Kansas	Michigan	Missouri(1)	Nevada	Oklahoma	Virginia
Florida	Kentucky	Minnesota	Montana	New Jersey	South Carolina	Wisconsin
				New Mexico	Tennessee

⁽¹⁾ The logo sign contract in Missouri is operated by a 66 2/3% owned partnership.

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We also operate the tourist oriented directional signing (“TODS”) programs for the states of Colorado, Kansas, Kentucky, Louisiana, Michigan, Missouri, Montana, Nebraska, Nevada, New Jersey, Ohio, South Carolina, Utah, Virginia and the province of Ontario, Canada.

Our logo and TODS operations are decentralized. Generally, each office is staffed with an experienced local general manager, local sales and office staff and a local signing sub-contractor. This decentralization allows the management staff of Interstate Logos, L.L.C. (the subsidiary that operates all of the logo and directional sign-related businesses) to travel extensively to the various operations and serve in a technical and management advisory capacity and monitor regulatory and contract compliance. We also run a silk screening operation in Baton Rouge, Louisiana and a display construction company in Atlanta, Georgia.

State logo sign contracts represent the exclusive right to erect and operate logo signs within a state for a period of time. The terms of the contracts vary, but generally range from five to ten years, with additional renewal terms. Each logo sign contract generally allows the state to terminate the contract prior to its expiration and, in most cases, with compensation for the termination to be paid to the Company. When a logo sign contract expires, we transfer ownership of the advertising structures to the state. Depending on the contract, we may or may not be entitled to compensation at that time. Of our 24 logo sign contracts in place, in the United States and Canada, at December 31, 2018, six are subject to renewal or expiration in 2019.

States usually award new logo sign contracts and renew expiring logo sign contracts through an open proposal process. In bidding for new and renewal contracts, we compete against other logo sign providers, as well as local companies based in the state soliciting proposals.

In marketing logo signs to advertisers, we compete with other forms of out-of-home advertising and other media. When selecting the media and provider through which to advertise, advertisers consider a number of factors and advertising providers which are described in the section entitled — “Competition” below.

Transit Advertising

We entered into the transit advertising business in 1993 as a way to complement our existing business and maintain market share in certain markets. Transit contracts are generally with the local municipalities and airport authorities and allow us the exclusive right to rent advertising space to customers, in airports and on buses, benches or shelters. The terms of the contracts vary but generally range between 3-15 years, many with renewable options for contract extension. We rent transit advertising displays in airport terminals and on bus shelters, benches and buses in over 80 transit markets, and our production staff provides a full range of creative and installation services to our transit advertising tenants. As of December 31, 2018, we operated over 53,300 transit advertising displays in 22 states and Canada.

Municipalities usually award new transit advertising contracts and renew expiring transit advertising contracts through an open bidding process. In bidding for new and renewal contracts, we compete against national outdoor advertising providers and local, on-premise sign providers and sign construction companies. Transit advertising operators incur significant start-up costs to build and install the advertising structures (such as transit shelters) upon being awarded contracts.

In marketing transit advertising displays to advertisers, we compete with other forms of out-of-home advertising and other media. When selecting the media and provider through which to advertise, advertisers consider a number of factors and advertising providers which are described in the section entitled — “Competition” below.

COMPETITION

Although the outdoor advertising industry has encountered a wave of consolidation, the industry remains fragmented. The industry is comprised of several large outdoor advertising and media companies with operations in multiple markets, as well as smaller, local companies operating a limited number of structures in one or a few local markets.

Although we primarily focus on small to mid-size markets where we can attain a strong market share, in each of our markets, we compete against other providers of outdoor advertising and other types of media, including:

• Larger outdoor advertising providers, such as (i) Clear Channel Outdoor Holdings, Inc., which operates billboards, street furniture displays, transit displays and other out-of-home advertising displays and (ii) Outfront Media, Inc. (formerly CBS Outdoor), which operates traditional outdoor, street furniture and transit advertising properties. Clear Channel Outdoor and Outfront Media each have corporate relationships with large media conglomerates and may have greater total resources, product offerings and opportunities for cross-selling than we do.

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• Broadcast and cable television, radio, print media, direct mail marketing, the internet, social media and applications used in conjunction with wireless devices.

• An increasing variety of out-of-home advertising media, such as advertising displays in shopping centers, malls, airports, stadiums, movie theaters, supermarkets and advertising displays on taxis, trains and buses.

In selecting the form of media through which to advertise, advertisers evaluate their ability to target audiences having a specific demographic profile, lifestyle, brand or media consumption or purchasing behavior or audiences located in, or traveling through, a particular geography. Advertisers also compare the relative costs of available media, evaluating the number of impressions (potential viewings), exposure (the opportunity for advertising to be seen) and circulation (traffic volume in a market), as well as potential effectiveness, quality of related services (such as advertising copy design and layout) and customer service. In competing with other media, we believe that outdoor advertising is relatively more cost-efficient than other media, allowing advertisers to reach broader audiences and target specific geographic areas or demographic groups within markets.

We believe that our strong emphasis on sales and customer service and our position as a major provider of advertising services in each of our primary markets enables us to compete effectively with the other outdoor advertising companies, as well as with other media, within those markets.

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GEOGRAPHIC DIVERSIFICATION

Our advertising displays are geographically diversified across the United States and Canada. The following table sets forth information regarding the geographic diversification of our advertising displays, which are listed in order of contributions to total revenue. Markets with less than 1% of total displays are grouped in the category “all other United States and Puerto Rico”.

	Percentage of Revenues for the year ended, December 31, 2018															Number of Displays for the year ended, December 31, 2018
Market	Static Billboard Displays			Digital Billboard Displays			Transit Displays			Logo Displays			Total Displays			Static Billboard Displays		Digital Billboard Displays		Transit Displays		Logo Displays		Total Displays		Percentage of Total Displays
Las Vegas, NV		1.6	%		2.5	%		13.4	%		—			2.7	%		851		61		1,558		—		2,470		0.7	%
New York, NY		3.4	%		1.6	%		—			—			2.5	%		1,088		33		—		—		1,121		0.3	%
Pittsburgh, PA		2.3	%		3.9	%		1.1	%		—			2.4	%		3,038		56		745		—		3,839		1.1	%
Seattle, WA		2.3	%		1.3	%		2.1	%		—			1.9	%		1,776		18		2,194		—		3,988		1.1	%
Cleveland, OH		1.7	%		2.9	%		1.9	%		—			1.9	%		2,412		58		2,643		—		5,113		1.4	%
Gary, IN		1.7	%		2.8	%		—			—			1.7	%		1,705		112		—		—		1,817		0.5	%
San Bernardino, CA		1.7	%		2.0	%		1.3	%		—			1.6	%		806		27		1,264		—		2,097		0.6	%
Dallas, TX		1.9	%		0.8	%		1.7	%		—			1.6	%		1,403		21		459		—		1,883		0.5	%
Vancouver, Canada		—			—			17.0	%		—			1.5	%		—		—		6,109		—		6,109		1.7	%
Nashville, TN		1.4	%		2.2	%		—			—			1.4	%		1,771		57		—		—		1,828		0.5	%
Atlanta, GA		1.2	%		2.5	%		—			—			1.3	%		782		56		—		—		838		0.2	%
Hartford, CT		1.2	%		2.4	%		0.1	%		—			1.3	%		935		49		100		—		1,084		0.3	%
Richmond, VA		1.4	%		1.8	%		—			—			1.3	%		1,330		37		—		—		1,367		0.4	%
Oklahoma City, OK		1.5	%		1.4	%		—			—			1.2	%		2,249		30		—		—		2,279		0.6	%
Knoxville, TN		1.6	%		0.6	%		—			—			1.2	%		2,244		30		—		—		2,274		0.6	%
Phoenix, AZ		0.2	%		2.6	%		5.3	%		—			1.2	%		138		45		3,481		—		3,664		1.0	%
Birmingham, AL		1.3	%		1.2	%		0.3	%		—			1.2	%		1,610		28		318		—		1,956		0.6	%
Cincinnati, OH		1.1	%		2.0	%		—			—			1.1	%		1,190		32		—		—		1,222		0.4	%
Reading, PA		1.1	%		1.9	%		—			—			1.1	%		1,231		99		—		—		1,330		0.4	%
Austin, TX		1.5	%		0.4	%		—			—			1.1	%		969		5		—		—		974		0.3	%
Baton Rouge, LA		1.3	%		1.2	%		—			—			1.1	%		1,490		37		—		—		1,527		0.4	%
Providence, RI		1.0	%		1.8	%		—			—			1.1	%		593		31		—		—		624		0.2	%
Columbus, OH		1.1	%		1.6	%		—			—			1.0	%		1,794		53		—		—		1,847		0.5	%
Buffalo, NY		0.9	%		1.2	%		2.7	%					1.0	%		947		27		1,594		—		2,568		0.7	%
Albany, NY		0.9	%		0.9	%		2.2	%		—			1.0	%		1,090		18		1,297		—		2,405		0.7	%
All US Logo    Programs		—			—			—			92.6	%		5.2	%		—		—		—		144,116		144,116		40.1	%
All Other United    States and Puerto    Rico(1)		64.6	%		56.5	%		41.3	%		—			57.2	%		120,130		2,169		27,163		—		149,462		41.6	%
All Other Canada		0.1	%		—			9.6	%		7.4	%		1.2	%		136		2		4,405		4,793		9,336		2.6	%
Total		100.0	%		100.0	%		100.0	%		100.0	%		100.0	%		153,708		3,191		53,330		148,909		359,138		100.0	%
Total Revenue    (in millions)	$	1,076.3		$	336.7		$	129.8		$	84.4		$	1,627.2

⁽¹⁾ Includes Puerto Rico advertising revenue recognized prior to the displays being sold on April 16, 2018.

TAXABLE REIT SUBSIDIARIES

We hold and operate certain of our assets that cannot be held and operated directly by a REIT through taxable REIT subsidiaries, or TRSs. A TRS is a subsidiary of a REIT that pays corporate taxes on its taxable income. The assets held in our TRSs primarily consist of our transit advertising business, advertising services business and our foreign operations. Our TRS assets and operations will continue to be subject, as applicable, to U.S. federal and state corporate income taxes. Furthermore, our assets and operations outside the United States will continue to be subject to foreign taxes in the jurisdictions in which those assets and operations are located. Net income from our TRSs will either be retained by our TRSs and used to fund their operations, or distributed to us, where it will be reinvested in our business or be available for distribution to Lamar Advertising’s stockholders. As of December 31, 2018, the annual revenue generated by our TRSs in the aggregate was approximately $288 million.

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ADVERTISING TENANTS

Our tenant base is diverse. The table below sets forth the ten industries from which we derived most of our billboard advertising revenues for the year ended December 31, 2018, as well as the percentage of billboard advertising revenues attributable to the advertisers in those industries. The individual advertisers in these industries accounted for approximately 75% of our billboard advertising net revenues in the year ended December 31, 2018. No individual tenant accounted for more than 2.0% of our billboard advertising net revenues in that period.

Categories	Percentage of Net Billboard Advertising Revenues
Service		13	%
Restaurants		11	%
Health Care		10	%
Retailers		10	%
Amusement — Entertainment/Sports		7	%
Automotive		5	%
Gaming		5	%
Education		4	%
Financial — Banks, Credit Unions		4	%
Insurance		3	%
Real Estate		3	%
		75	%

REGULATION

Outdoor advertising is subject to governmental regulation at the federal, state and local levels. Regulations generally restrict the size, spacing, lighting and other aspects of advertising structures and pose a significant barrier to entry and expansion in many markets.  Federal law, principally the Highway Beautification Act of 1965 (the “HBA”), regulates outdoor advertising on Federal — Aid Primary, Interstate and National Highway Systems roads. The HBA requires states, through the adoption of individual Federal/State agreements, to “effectively control” outdoor advertising along these roads, and mandates a state compliance program and state standards regarding size, spacing and lighting. These state standards, or their local and municipal equivalents, may be modified over time in response to legal challenges or otherwise, which may have an adverse effect on our business. The HBA requires any state or political subdivision that compels the removal of a lawful billboard along a Federal — Aid Primary or Interstate highway to pay just compensation to the billboard owner.

All states have passed billboard control statutes and regulations at least as restrictive as the federal requirements, including laws requiring the removal of illegal signs at the owner’s expense (and without compensation from the state). Although we believe that the number of our billboards that may be subject to removal as illegal is immaterial, and no state in which we operate has banned billboards entirely, from time to time governments have required us to remove signs and billboards legally erected in accordance with federal, state and local permit requirements and laws. Municipal and county governments generally also have sign controls as part of their zoning laws and building codes. We contest laws and regulations that we believe unlawfully restrict our constitutional or other legal rights and may adversely impact the growth of our outdoor advertising business.

Using federal funding for transportation enhancement programs, state governments have purchased and removed billboards for beautification, and may do so again in the future. Under the power of eminent domain, state or municipal governments have laid claim to property and forced the removal of billboards. Under a concept called amortization by which a governmental body asserts that a billboard operator has earned compensation by continued operation over time, local governments have attempted to force removal of legal but nonconforming billboards (i.e., billboards that conformed with applicable zoning regulations when built but which do not conform to current zoning regulations). Although the legality of amortization is questionable, it has been upheld in some instances. Often, municipal and county governments also have sign controls as part of their zoning laws, with some local governments prohibiting construction of new billboards or allowing new construction only to replace existing structures. Although we have generally been able to obtain satisfactory compensation for those of our billboards purchased or removed as a result of governmental action, there is no assurance that this will continue to be the case in the future.

We have also introduced and intend to continue to expand the deployment of digital billboards that display static digital advertising copy from various advertisers that change every 6 to 8 seconds. We have encountered some existing regulations that restrict or prohibit these types of digital displays but it has not yet materially impacted our digital deployment. Since digital billboards have been developed and introduced relatively recently into the market on a large scale, existing regulations that currently do not

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apply to them by their terms could be revised or new regulations could be enacted to impose greater restrictions. These regulations may impose greater restrictions on digital billboards due to alleged concerns over aesthetics or driver safety.

Relatively few large scale studies have been conducted to date regarding driver safety issues, if any, related to digital billboards. On December 30, 2013, the results of a study conducted by U.S. Department of Transportation and the Federal Highway Administration that looked at the effect of digital billboards and conventional billboards on driver visual behavior were issued. The conclusions of the report indicated that the presence of digital billboards did not appear to be related to a decrease in looking toward the road ahead and were generally within acceptable thresholds. The report cautioned, however, that it adds to the knowledge base but does not present definitive answers to the research questions investigated. Accordingly, the results of this or other studies may result in regulations at the federal or state level that impose greater restrictions on digital billboards. Any new restrictions on digital billboards could have a material adverse effect on both our existing inventory of digital billboards and our plans to expand our digital deployment, which could have a material adverse effect on our business, results of operations and financial condition.

LEGAL PROCEEDINGS

From time to time, we are involved in litigation in the ordinary course of business, including disputes involving advertising contracts, site leases, employment claims and construction matters. We are also involved in routine administrative and judicial proceedings regarding billboard permits, fees and compensation for condemnations. We are not a party to any lawsuit or proceeding which, in the opinion of management, is likely to have a material adverse effect on us.

REAL ESTATE PORTFOLIO

Our management headquarters is located in Baton Rouge, Louisiana. We also own 128 local operating facilities with front office administration and sales office space connected to back-shop poster and bulletin production space. In addition, we lease an additional 134 operating facilities at an aggregate lease expense for 2018 of approximately $7.7 million.

We own over 7,600 parcels of property beneath our advertising displays. As of December 31, 2018, we leased over 73,300 outdoor sites, accounting for an annualized lease expense of approximately $267.4 million. This amount represented approximately 19% of billboard advertising net revenues for that period. These leases are for varying terms ranging from month-to-month to a term of over ten years, and many provide us with renewal options. Our lease agreements generally permit us to use the land for the construction, repair and relocation of outdoor advertising displays, including all rights necessary to access and maintain the site. Approximately 67% of our leases will expire or be subject to renewal in the next 5 years, 20% will expire or be subject to renewal in 6 to 10 years and 13% thereafter. There is no significant concentration of displays under any one lease or subject to negotiation with any one landlord. An important part of our management activity is to manage our lease portfolio and negotiate suitable lease renewals and extensions.

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The following table illustrates the number of leased and owned sites by state as of December 31, 2018, which is sorted from greatest to least in number and percentage of leased sites. States in which we lease less than 2% of our portfolio are grouped in the category “All Other States”.

State	# of billboard leased sites		% of total			# of owned billboard sites		% of total
Texas		5,925		8.1	%		642		8.5	%
Pennsylvania		5,096		6.9	%		1,511		19.8	%
Ohio		4,549		6.2	%		370		4.8	%
California		4,530		6.2	%		132		1.7	%
North Carolina		4,278		5.8	%		142		1.9	%
Tennessee		3,319		4.5	%		265		3.5	%
Louisiana		3,111		4.2	%		461		6.0	%
Alabama		3,018		4.1	%		407		5.3	%
Georgia		2,775		3.8	%		197		2.6	%
Wisconsin		2,774		3.8	%		278		3.7	%
Florida		2,600		3.5	%		351		4.6	%
South Carolina		2,552		3.5	%		70		0.9	%
New York		2,295		3.1	%		185		2.4	%
Missouri		2,180		3.0	%		237		3.1	%
Michigan		2,030		2.8	%		216		2.8	%
Mississippi		1,952		2.7	%		330		4.3	%
Indiana		1,869		2.5	%		248		3.2	%
Oklahoma		1,738		2.4	%		117		1.5	%
Virginia		1,660		2.3	%		166		2.2	%
All Other States		15,096		20.6	%		1,312		17.2	%
		73,347		100.0	%		7,637		100.0	%

CONTRACT EXPIRATIONS

We derive revenues primarily from renting advertising space to customers on our advertising displays. Our contracts with customers generally cover periods ranging from one week to one year and are generally billed every four weeks. Since contract terms are short-term in nature, we do not consider revenues by year of contract expiration to be meaningful.

EMPLOYEES

We employed approximately 3,600 people as of December 31, 2018. Approximately 260 employees were engaged in overall management and general administration at our management headquarters in Baton Rouge, Louisiana, and the remainder, including over 1,050 local account executives were employed in our operating offices.

Fifteen of our local offices employ billposters and construction personnel who are covered by collective bargaining agreements. We believe that our relationship with our employees, including our 115 unionized employees, is good, and we have never experienced a strike or work stoppage.

INFLATION

In the last three years, inflation has not had a significant impact on us.

SEASONALITY

Our revenues and operating results are subject to seasonality. Typically, we experience our strongest financial performance in the summer and fall, and our weakest financial performance in the first quarter of the calendar year, partly because retailers cut back their advertising spending immediately following the holiday shopping season. We expect this trend to continue in the future. Because a significant portion of our expenses is fixed, a reduction in revenues in any quarter is likely to result in a period-to-period decline in operating performance and net earnings.

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AVAILABLE INFORMATION

We make our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and amendments to these reports available free of charge through our website, www.lamar.com, as soon as reasonably practicable after filing them with, or furnishing them to, the Securities and Exchange Commission. Information contained on the website is not part of this Annual Report.

ITEM 1A. RISK FACTORS

The Company’s substantial debt may adversely affect its business, financial condition and financial results.

The Company has borrowed substantially in the past and will continue to borrow in the future. At December 31, 2018, Lamar Advertising Company’s wholly owned subsidiary, Lamar Media, had approximately $2.889 billion of total debt outstanding, net of deferred financing costs, consisting of approximately $1.280 billion in bank debt outstanding under Lamar Media’s senior credit facility, $531.0 million in senior subordinated notes, $901.0 million in various series of senior notes, $173.8 million under the Accounts Receivable Securitization Program and $3.5 million in other seller notes. Despite the level of debt presently outstanding, the terms of the indentures governing Lamar Media’s notes and the terms of the senior credit facility allow Lamar Media to incur substantially more debt, including approximately $156.8 million available for borrowing as of December 31, 2018 under the revolving senior credit facility.

The Company’s substantial debt and its use of cash flow from operations to make principal and interest payments on its debt may, among other things:

• make it more difficult for the Company to comply with the financial covenants in its senior credit facility and in its Accounts Receivable Securitization Program, which could result in a default and an acceleration of all amounts outstanding under the facility or under the Accounts Receivable Securitization Program;

• limit the cash flow available to fund the Company’s working capital, capital expenditures, acquisitions or other general corporate requirements;

• limit the Company’s ability to obtain additional financing to fund future dividend distributions, working capital, capital expenditures or other general corporate requirements;

• place the Company at a competitive disadvantage relative to those of its competitors that have less debt;

• force the Company to seek and obtain alternate or additional sources of funding, which may be unavailable, or may be on less favorable terms, or may require the Company to obtain the consent of lenders under its senior credit facility or the holders of its other debt;

• limit the Company’s flexibility in planning for, or reacting to, changes in its business and industry; and

• increase the Company’s vulnerability to general adverse economic and industry conditions.

Any of these problems could adversely affect the Company’s business, financial condition and financial results.

Restrictions in the Company’s and Lamar Media’s debt agreements reduce operating flexibility and contain covenants and restrictions that create the potential for defaults, which could adversely affect the Company’s business, financial condition and financial results.

The terms of Lamar Media’s senior credit facility and the indentures relating to Lamar Media’s outstanding notes restrict the ability of the Company and Lamar Media to, among other things:

• incur or repay debt;

• dispose of assets;

• create liens;

• make investments;

• enter into affiliate transactions; and

• pay dividends and make inter-company distributions.

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At December 31, 2018, the terms of Lamar Media’s senior credit facility and of our Accounts Receivable Securitization Program also restrict the Company from exceeding a specified secured debt ratio.  Lamar Media is also subject to certain other financial covenants relating to the incurrence of additional debt. Please see “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Liquidity and Capital Resources” for a description of the specific financial ratio requirements under the senior credit facility.

The Company’s ability to comply with the financial covenants in the senior credit facility, Accounts Receivable Securitization Program and the indentures governing Lamar Media’s outstanding notes (and to comply with similar covenants in any future agreements) depends on its operating performance, which in turn depends significantly on prevailing economic, financial and business conditions and other factors that are beyond the Company’s control. Therefore, despite its best efforts and execution of its strategic plan, the Company may be unable to comply with these financial covenants in the future.

The Company is currently in compliance with all financial covenants. However, if in the future there are economic declines the Company can make no assurance that these declines will not negatively impact the Company’s financial results and, in turn, its ability to meet these financial covenant requirements. If Lamar Media fails to comply with its financial covenants, the lenders under the senior credit facility and the Accounts Receivable Securitization Program could accelerate all of the debt outstanding, which would create serious financial problems and could lead to a default under the indentures governing Lamar Media’s outstanding notes. Any of these events could adversely affect the Company’s business, financial condition and financial results.

In addition, these restrictions reduce the Company’s operating flexibility and could prevent the Company from exploiting investment, acquisition, marketing, or other time-sensitive business opportunities.

The Company’s revenues are sensitive to the state of the economy and the financial markets generally and other external events beyond the Company’s control.

The Company rents advertising space on outdoor structures to generate revenues. Advertising spending is particularly sensitive to changes in economic conditions.

Additionally, the occurrence of any of the following external events could further depress the Company’s revenues:

• a widespread reallocation of advertising expenditures to other available media by significant renters of the Company’s displays; and

• a decline in the amount spent on advertising in general or outdoor advertising in particular.

The Company’s growth through acquisitions may be difficult, which could adversely affect our future financial performance. In addition, if we are unable to successfully integrate any completed acquisitions, our financial performance would also be adversely affected.

The Company has historically grown through acquisitions. During the year ended December 31, 2018, we completed acquisitions for a total cash purchase price of approximately $477.4 million. We intend to continue to evaluate strategic acquisition opportunities as they arise.

The future success of our acquisition strategy could be adversely affected by many factors, including the following:

• the pool of suitable acquisition candidates is dwindling, and we may have a more difficult time negotiating acquisitions on favorable terms;

• we may face increased competition for acquisition candidates from other outdoor advertising companies, some of which have greater financial resources than we do, which may result in higher prices for those businesses and assets;

• we may not have access to the capital needed to finance potential acquisitions and may be unable to obtain any required consents from our current lenders to obtain alternate financing;

• compliance with REIT requirements may hinder our ability to make certain investments and may limit our acquisition opportunities;

• we may be unable to integrate acquired businesses and assets effectively with our existing operations and systems as a result of unforeseen difficulties that could divert significant time, attention and effort from management that could otherwise be directed at developing existing business;

• we may be unable to retain key personnel of acquired businesses;

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• we may not realize the benefits and cost savings anticipated in our acquisitions; and

• as the industry consolidates further, larger mergers and acquisitions may face substantial scrutiny under antitrust laws.

These obstacles to our opportunistic acquisition strategy may have an adverse effect on our future financial results.

The Company could suffer losses due to asset impairment charges for goodwill and other intangible assets.

The Company tested goodwill for impairment on December 31, 2018. Based on the Company’s review at December 31, 2018, no impairment charge was required. The Company continues to assess whether factors or indicators become apparent that would require an interim impairment test between our annual impairment test dates. For instance, if our market capitalization is below our equity book value for a period of time without recovery, we believe there is a strong presumption that would indicate a triggering event has occurred and it is more likely than not that the fair value of one or both of our reporting units are below their carrying amount. This would require us to test the reporting units for impairment of goodwill. If this presumption cannot be overcome a reporting unit could be impaired under ASC 350 “Goodwill and Other Intangible Assets” and a non-cash charge would be required. Any such charge could have a material adverse effect on the Company’s net earnings.

The Company faces competition from larger and more diversified outdoor advertisers and other forms of advertising that could hurt its performance.

While the Company enjoys a significant market share in many of its small and medium-sized markets, the Company faces competition from other outdoor advertisers and other media in all of its markets. Although the Company is one of the largest companies focusing exclusively on outdoor advertising in a relatively fragmented industry, it competes against larger companies with diversified operations, such as television, radio and other broadcast media. These diversified competitors have the advantage of cross-selling complementary advertising products to advertisers.

The Company also competes against an increasing variety of out-of-home advertising media, such as advertising displays in shopping centers, malls, airports, stadiums, movie theaters and supermarkets, and on taxis, trains and buses. To a lesser extent, the Company also faces competition from other forms of media, including radio, newspapers, direct mail advertising, telephone directories and the Internet. The industry competes for advertising revenue along the following dimensions: exposure (the number of “impressions” an advertisement makes), advertising rates (generally measured in cost-per-thousand impressions), ability to target specific demographic groups or geographies, effectiveness, quality of related services (such as advertising copy design and layout) and customer service. The Company may be unable to compete successfully along these dimensions in the future, and the competitive pressures that the Company faces could adversely affect its profitability or financial performance.

Federal, state and local regulation impact the Company’s operations, financial condition and financial results.

Outdoor advertising is subject to governmental regulation at the federal, state and local levels. Regulations generally restrict the size, spacing, lighting and other aspects of advertising structures and pose a significant barrier to entry and expansion in many markets.  Federal law, principally the Highway Beautification Act of 1965, or the HBA, regulates outdoor advertising on Federal — Aid Primary, Interstate and National Highway Systems roads. The HBA requires states, through the adoption of individual Federal/State Agreements, to “effectively control” outdoor advertising along these roads, and mandates a state compliance program and state standards regarding size, spacing and lighting. These state standards, or their local and municipal equivalents, may be modified over time in response to legal challenges or otherwise, which may have an adverse effect on our business.  The HBA requires any state or political subdivision that compels the removal of a lawful billboard along a Federal — Aid Primary or Interstate highway to pay just compensation to the billboard owner.

All states have passed billboard control statutes and regulations at least as restrictive as the federal requirements, including laws requiring the removal of illegal signs at the owner’s expense (and without compensation from the state). Although the Company believes that the number of our billboards that may be subject to removal as illegal is immaterial, and no state in which we operate has banned billboards entirely, from time to time governments have required us to remove signs and billboards legally erected in accordance with federal, state and local permit requirements and laws. Municipal and county governments generally also have sign controls as part of their zoning laws and building codes. We contest laws and regulations that we believe unlawfully restrict our constitutional or other legal rights and may adversely impact the growth of our outdoor advertising business.

Using federal funding for transportation enhancement programs, state governments have purchased and removed billboards for beautification, and may do so again in the future. Under the power of eminent domain, state or municipal governments have laid claim to property and forced the removal of billboards. Under a concept called amortization by which a governmental body asserts that a billboard operator has earned compensation by continued operation over time, local governments have attempted to force removal of

16

legal but nonconforming billboards (i.e., billboards that conformed to applicable zoning regulations when built but which do not conform to current zoning regulations). Although the legality of amortization is questionable, it has been upheld in some instances. Often, municipal and county governments also have sign controls as part of their zoning laws, with some local governments prohibiting construction of new billboards or allowing new construction only to replace existing structures. Although we have generally been able to obtain satisfactory compensation for those of our billboards purchased or removed as a result of governmental action, there is no assurance that this will continue to be the case in the future.

We have also introduced and intend to expand the deployment of digital billboards that display static digital advertising copy from various advertisers that change every 6 to 8 seconds. We have encountered some existing regulations that restrict or prohibit these types of digital displays but it has not yet materially impacted our digital deployment. Since digital billboards have been developed and introduced relatively recently into the market on a large scale, however, existing regulations that currently do not apply to them by their terms could be revised or new regulations could be enacted to impose greater restrictions. These regulations may impose greater restrictions on digital billboards due to alleged concerns over aesthetics or driver safety.

Relatively few large scale studies have been conducted to date regarding driver safety issues, if any, related to digital billboards. On December 30, 2013, the results of a study conducted by the U.S. Department of Transportation and the Federal Highway Administration that looked at the effect of digital billboards and conventional billboards on driver visual behavior were issued. The conclusions of the report indicated that the presence of digital billboards did not appear to be related to a decrease in looking toward the road ahead and were generally within acceptable thresholds. The report cautioned, however, that it adds to the knowledge base but does not present definitive answers to the research questions investigated. Accordingly, the results of this or other studies may result in regulations at the federal or state level that impose greater restrictions on digital billboards. Any new restrictions on digital billboards could have a material adverse effect on both our existing inventory of digital billboards and our plans to expand our digital deployment, which could have a material adverse effect on our business, results of operations and financial condition.

The Company’s logo sign contracts are subject to state award and renewal.

In 2018, the Company generated approximately 5% of its revenues from state-awarded logo sign contracts. In bidding for these contracts, the Company competes against other national logo sign providers as well as numerous smaller local logo sign providers. A logo sign provider incurs significant start-up costs upon being awarded a new contract. These contracts generally have a term of five to ten years, with additional renewal periods. Some states reserve the right to terminate a contract early, and most contracts require the state to pay compensation to the logo sign provider for early termination. At the end of the contract term, the logo sign provider transfers ownership of the logo sign structures to the state. Depending on the contract, the logo provider may or may not be entitled to compensation for the structures at the end of the contract term.

Of the Company’s 24 logo sign contracts in place at December 31, 2018, six are subject to renewal or expiration in 2019. The Company may be unable to renew its expiring contracts. The Company may also lose the bidding on new contracts.

The Company is controlled by significant stockholders who have the power to determine the outcome of all matters submitted to the stockholders for approval and whose interest in the Company may be different than yours.

As of December 31, 2018, members of the Reilly family, including Kevin P. Reilly, Jr., the Company’s Chairman and President, and Sean Reilly, the Company’s Chief Executive Officer, and their affiliates, owned in the aggregate approximately 15% of the Company’s outstanding common stock, assuming the conversion of all Class B common stock to Class A common stock. As of that date, their combined holdings represented approximately 63% of the voting power of Lamar Advertising’s outstanding capital stock, which would give the Reilly family and their affiliates the power to:

• elect the Company’s entire board of directors;

• control the Company’s management and policies; and

• determine the outcome of any corporate transaction or other matter requiring stockholder approval, including charter amendments, mergers, consolidations, financings and asset sales.

The Reilly family may have interests that are different than yours in making these decisions.

If the Company’s contingency plans relating to hurricanes and other natural disasters fail, the resulting losses could hurt the Company’s business.

The Company has determined that it is uneconomical to insure against losses resulting from hurricanes and other natural disasters. Although the Company has developed contingency plans designed to mitigate the threat posed by hurricanes and other forms

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of inclement weather to its real estate portfolio (e.g., removing advertising faces at the onset of a storm, when possible, which better permits the structures to withstand high winds during the storm), these plans could fail and significant losses could result.

If Lamar Advertising fails to remain qualified as a REIT, both Lamar Advertising and Lamar Media would be taxed as regular C corporations and would not be able to deduct distributions to the stockholders of Lamar Advertising when computing their taxable income.

Lamar Advertising elected to qualify as a REIT for U.S. federal income tax purposes starting with its taxable year ended December 31, 2014 and for each subsequent taxable year thereafter.  REIT qualification involves the application of highly technical and complex provisions of the U. S. Internal Revenue Code of 1986, as amended, (the “Code”) to Lamar Advertising’s assets and operations as well as various factual determinations concerning matters and circumstances not entirely within our control. There are limited judicial or administrative interpretations of these provisions. Although Lamar Advertising plans to operate in a manner consistent with the REIT qualification rules, the Company cannot assure you that it will so qualify or remain so qualified. Lamar Media is treated as a qualified REIT subsidiary of Lamar Advertising that is disregarded as separate from its parent REIT for U.S. federal income tax purposes.

If, in any taxable year, Lamar Advertising fails to qualify for taxation as a REIT, and is not entitled to relief under the Code:

• it will not be allowed a deduction for distributions to its stockholders in computing its taxable income;

• it and its subsidiaries, including Lamar Media, will be subject to applicable federal and state income tax, including any applicable state-level alternative minimum tax, on its taxable income at regular corporate rates; and

• it would be disqualified from REIT tax treatment for the four taxable years following the year during which it was so disqualified.

Any such corporate tax liability could be substantial and would reduce the amount of cash available for required distributions to Lamar Advertising’s stockholders, may require it to borrow funds (under Lamar Media’s senior credit facility or otherwise) or liquidate some investments to pay any such additional tax liability. This adverse impact could last for five or more years because, unless it is entitled to relief under certain statutory provisions, it will be taxable as a corporation, beginning in the year in which the failure occurs, and it will not be allowed to re-elect to be taxed as a REIT for the following four years.

Even if it qualifies as a REIT, certain of Lamar Advertising’s and its subsidiaries’ business activities will be subject to U.S. and foreign taxes which will continue to reduce its cash flows, and it will have potential deferred and contingent tax liabilities.

Even if it qualifies as a REIT, Lamar Advertising may be subject to certain U.S. federal, state and local taxes and foreign taxes on its income and assets, including any applicable state-level alternative minimum taxes, taxes on any undistributed income, and state, local or foreign income, franchise, property and transfer taxes. In addition, the Company could in certain circumstances be required to pay an excise or penalty tax, which could be significant in amount, in order to utilize one or more relief provisions under the Code to maintain qualification for taxation as a REIT.

In order to maintain its qualification as a REIT, the Company holds certain of its non-qualifying REIT assets and receives certain non-qualifying items of income through one or more TRSs. These non-qualifying REIT assets consist principally of the Company’s advertising services business and its transit advertising business. Those TRS assets and operations will continue to be subject, as applicable, to U.S. federal and state corporate income taxes. Furthermore, the Company’s assets and operations outside the United States are subject to foreign taxes in the jurisdictions in which those assets and operations are located. In addition, the Company may incur a 100% excise tax on transactions with a TRS if they are not conducted on an arm’s-length basis. Any of these taxes would decrease the Company’s earnings and its cash available for distributions to stockholders.

The Company was subject to a U.S. federal income tax at the highest regular corporate rate (currently 21%) on all or a portion of the gain recognized from a sale of assets occurring within five years after the effective date of our REIT conversion, to the extent of the built-in gain based on the fair market value of those assets held by the Company on the effective date of REIT conversion in excess of the Company’s then tax basis in those assets. Such five-year period has expired with respect to the Company but certain tax years for which this rule applied remain open such that additional taxes could be assessed with respect to sales in those tax years. The same rules apply to any assets we acquire from a “C” corporation in a carry-over basis transaction with built-in gain at the time of the acquisition by us. Gain from a sale of an asset occurring after the specified period ends will not be subject to this corporate level tax.

In addition, the Internal Revenue Service (“IRS”) and any state or local tax authority may successfully assert liabilities against the Company for corporate income taxes for taxable years of Lamar Advertising prior to the effective time of the REIT election, in which case the Company will owe these taxes (the federal corporate tax rate for tax years beginning prior to January 1, 2018 was 35%)

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plus applicable interest and penalties, if any. Moreover, any increase in taxable income for these pre-REIT periods will likely result in an increase in non-REIT accumulated earnings and profits which could cause the Company to pay taxable distributions to its stockholders after the relevant determination.

Failure to make sufficient distributions would jeopardize Lamar Advertising’s qualification as a REIT and/or would subject it to U.S. federal income and excise taxes.

As a REIT, Lamar Advertising is required to distribute to its stockholders with respect to each taxable year at least 90% of its REIT taxable income (excluding capital gains and net of any available net operating loss carry forwards) in order to qualify as a REIT, and 100% of its REIT taxable income (excluding capital gains and net of any available net operating loss carry forwards) in order to avoid U.S. federal income and excise taxes. For these purposes, Lamar Advertising’s subsidiaries that are not TRSs, including Lamar Media, will be treated as part of the REIT and therefore Lamar Advertising also will be required to distribute out their taxable income.

Because the REIT distribution requirements will prevent us from retaining earnings, we may be required to refinance debt at maturity with additional debt or equity, which may not be available on acceptable terms, or at all.

Covenants specified in our existing and future debt instruments may limit Lamar Advertising’s ability to make required REIT distributions.

Lamar Media’s senior credit facility and the indentures relating to Lamar Media’s outstanding notes contain certain covenants that could limit Lamar Advertising’s distributions to its stockholders. If these limits prevent Lamar Advertising from satisfying its REIT distribution requirements, it could fail to qualify for taxation as a REIT. If these limits do not jeopardize its qualification for taxation as a REIT but do nevertheless prevent it from distributing 100% of its REIT taxable income, it will be subject to U.S. federal corporate income tax, and potentially a nondeductible excise tax, on the retained amounts.

Lamar Advertising and its subsidiaries may be required to borrow funds, sell assets, or raise equity to satisfy its REIT distribution requirements or maintain the asset tests.

In order to meet the REIT distribution requirements and maintain its qualification and taxation as a REIT and avoid corporate income taxes, Lamar Advertising and/or its subsidiaries, including Lamar Media, may need to borrow funds, sell assets or raise equity, even if the then-prevailing market conditions are not favorable for these borrowings, sales or offerings. Any insufficiency of its cash flows to cover Lamar Advertising’s REIT distribution requirements could adversely impact its ability to raise short- and long-term debt, to sell assets, or to offer equity securities in order to fund distributions required to maintain its qualification and taxation as a REIT and avoid corporate income taxes. Furthermore, the REIT distribution requirements may increase the financing Lamar Advertising needs to fund capital expenditures, future growth and expansion initiatives. This would increase its total leverage.

In addition, if Lamar Advertising fails to comply with certain asset tests at the end of any calendar quarter, it must correct the failure within 30 days after the end of the calendar quarter or qualify for certain statutory relief provisions to avoid losing its REIT qualification. As a result, it may be required to liquidate otherwise attractive investments. These actions may reduce its income and amounts available for distribution to its stockholders.

Our cash distributions are not guaranteed and may fluctuate.

A REIT generally is required to distribute at least 90% of its REIT taxable income to its stockholders. The Company may have available NOLs that could reduce or substantially eliminate its REIT taxable income, and thus it may not be required to distribute material amounts of cash to qualify for taxation as a REIT. The Company expects that, for the foreseeable future, it may utilize available NOLs to reduce its REIT taxable income.

The board of directors of the Company, in its sole discretion, will determine on a quarterly basis the amount of cash to be distributed to its stockholders based on a number of factors including, but not limited to, the Company’s results of operations, cash flow and capital requirements, economic conditions, tax considerations, borrowing capacity and other factors, including debt covenant restrictions that may impose limitations on cash payments, future acquisitions and divestitures, any stock repurchase program, and general market demand for its advertising space available for lease. Consequently, the Company’s distribution levels may fluctuate.

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Complying with REIT requirements may cause Lamar Advertising, its subsidiaries (other than TRSs) to forego otherwise attractive opportunities.

To qualify as a REIT for U.S. federal income tax purposes, Lamar Advertising must continually satisfy tests concerning, among other things, the sources of its income, the nature and diversification of its assets, the amounts it distributes to its stockholders and the ownership of Lamar Advertising common stock. For these purposes, Lamar Advertising is treated as owning the assets of and receiving or accruing the income of its subsidiaries (other than TRSs). Thus, compliance with these tests will require Lamar Advertising and its subsidiaries to refrain from certain activities and may hinder their ability to make certain attractive investments, including investments in the businesses to be conducted by TRSs, and to that extent limit their opportunities. Furthermore, acquisition opportunities in domestic and international markets may be adversely affected if Lamar Advertising needs or requires the target company to comply with some REIT requirements prior to closing.

Ownership limitations contained in the Lamar Advertising charter may restrict stockholders from acquiring or transferring certain amounts of shares.

In order for Lamar Advertising to remain qualified as a REIT, no more than 50% of the value of the outstanding shares of its stock may be owned, directly or indirectly or through application of certain attribution rules, by five or fewer “individuals” (as defined in the Code) at any time during the last half of a taxable year (other than the first taxable year for which an election to be a REIT has been made). To preserve its REIT qualification, the Lamar Advertising charter generally prohibits any person or entity from owning actually and by virtue of the applicable constructive ownership provisions more than 5% of the outstanding shares of Lamar Advertising common stock. These ownership limitations could restrict stockholders from acquiring or transferring certain amounts of shares of its stock. The Lamar Advertising charter also provides a separate share ownership limitation for certain members of the Reilly family and their affiliates that allows them to own actually and by virtue of the applicable constructive ownership provisions no more than 19% of the outstanding shares of Lamar Advertising common stock and, during the second half of any taxable year other than its first taxable year as a REIT, no more than 33% in value of the aggregate of the outstanding shares of all classes and series of its stock, in each case excluding any shares of its stock that are not treated as outstanding for federal income tax purposes.

The Lamar Advertising charter, the Lamar Advertising bylaws and Delaware law may inhibit a takeover that stockholders consider favorable and could also limit the market price of Lamar Advertising stock.

Provisions of the Lamar Advertising charter, the Lamar Advertising bylaws and applicable provisions of Delaware law may make it more difficult for or prevent a third party from acquiring control of Lamar Advertising without the approval of the board of directors. These provisions:

• impose restrictions on ownership and transfer of Lamar Advertising common stock that are intended to facilitate the Company’s compliance with certain REIT rules relating to share ownership;

• limit who may call a special meeting of stockholders;

• establish advance notice and informational requirements and time limitations on any director nomination or proposal that a stockholder wishes to make at a meeting of stockholders;

• do not permit cumulative voting in the election of its directors, which would otherwise permit less than a majority of stockholders to elect directors; and

• provide the board of directors the ability to issue additional classes and shares of preferred stock and to set voting rights, preferences and other terms of the preferred stock without stockholder approval.

In addition, Section 203 of the DGCL generally limits the Company’s ability to engage in any business combination with certain persons who own 15% or more of its outstanding voting stock or any of its associates or affiliates who at any time in the past three years have owned 15% or more of its outstanding voting stock.

These provisions may have the effect of entrenching the Company’s management team and may deprive you of the opportunity to sell your shares to potential acquirers at a premium over prevailing prices. This potential inability to obtain a control premium could reduce the price of Lamar Advertising common stock.

Changes to the Code, such as the Tax Cuts and Jobs Act, could have a negative effect on Lamar Advertising and its subsidiaries including Lamar’s ability to deduct the full amount of its significant interest expense.

On December 22, 2017, President Trump signed into law H.R. 1, informally titled the Tax Cuts and Jobs Act (the “TCJA”). The TCJA makes major changes to the Code, including a number of provisions of the Code that affect the taxation of REITs and their

20

stockholders. Among the changes made by the TCJA are permanently reducing the generally applicable corporate tax rate, generally reducing the tax rate applicable to individuals and other non-corporate taxpayers for tax years beginning after December 31, 2017 and before January 1, 2026, eliminating or modifying certain previously allowed deductions (including substantially limiting interest deductibility and, for individuals, the deduction for non-business state and local taxes). The TCJA also imposes new limitations on the deduction of net operating losses, which may result in Lamar Advertising having to make additional distributions in order to comply with REIT distribution requirements or avoid taxes on retained income and gains. The effect of the significant changes made by the TCJA is highly uncertain, and administrative guidance will be required in order to fully evaluate the effect of many provisions. The effect of any technical corrections with respect to the TCJA could have an adverse effect on us, Lamar Advertising and its subsidiaries and shareholders.

Additionally, the TCJA may potentially limit Lamar Advertising’s ability to deduct the full amount of its interest expense.  For taxable years beginning after December 31, 2017, interest deductions for businesses with average annual gross receipts of over $25 million are capped at 30% of the business’ “adjusted taxable income” plus business interest income pursuant to the TCJA. In calculating “adjusted taxable income” for these purposes, for taxable years beginning after December 31, 2017 and before January 1, 2022, this is computed without regard to deductions allowable for depreciation, amortization, or depletion (EBITDA). For taxable years beginning after December 31, 2021, “adjusted taxable income” is calculated by taking deductions allowable for depreciation, amortization, or depletion into account (EBIT). This limitation, however, does not apply to an “electing real property trade or business.” As a REIT, Lamar Advertising would generally constitute a real property trade or businesses, and thus would retain the ability to fully deduct interest expenses if it makes such an election. However, an entity making such an election must use a longer depreciation cost recovery period for its property. Lamar Advertising has not made such an election at this time but may do so in the future.

Further legislative changes or other actions affecting REITs could have a negative effect on Lamar Advertising and its subsidiaries.

At any time, the U.S. federal income tax laws governing REITs or the administrative and judicial interpretations of those laws may be amended or interpreted in a different manner. Federal and state tax laws are constantly under review by persons involved in the legislative process, the IRS, the U.S. Department of the Treasury, and state taxing authorities. Additional changes to the tax laws, regulations and administrative and judicial interpretations, which may have retroactive application, could adversely affect Lamar Advertising and its subsidiaries. The Company cannot predict with certainty whether, when, in what forms, or with what effective dates, the tax laws, regulations and administrative and judicial interpretations applicable to Lamar Advertising may be changed. Accordingly, the Company cannot assure you that any such change will not significantly affect Lamar Advertising’s ability to qualify for taxation as a REIT or the federal income tax consequences to it of such qualification.

The ability of the board of directors of Lamar Advertising to revoke its REIT election, without stockholder approval, may cause adverse consequences to its stockholders.

The Lamar Advertising charter provides that the board of directors may revoke or otherwise terminate the REIT election, without the approval of its stockholders, if the board determines that it is no longer in the Company’s best interest to continue to qualify as a REIT. If the Company ceases to be a REIT, it will be subject to U.S. federal income tax at regular corporate rates and state and local corporate taxes, which may have adverse consequences on its total return to its stockholders.

ITEM 1B. UNRESOLVED STAFF COMMENTS

None.

ITEM 2. PROPERTIES

Our management headquarters is located in Baton Rouge, Louisiana. We also own 128 local operating facilities with front office administration and sales office space connected to back-shop poster and bulletin production space. In addition, the Company leases an additional 134 operating facilities at an aggregate lease expense for 2018 of approximately $7.7 million.

We own over 7,600 parcels of property beneath our outdoor advertising structures. As of December 31, 2018, we leased over 73,300 active outdoor sites, accounting for a total annual lease expense of approximately $267.4 million. This amount represented approximately 19% of billboard advertising net revenues for that period. These leases are for varying terms ranging from month-to-month to a term of over ten years, and many provide the Company with renewal options. There is no significant concentration of displays under any one lease or subject to negotiation with any one landlord. An important part of our management activity is to manage our lease portfolio and negotiate suitable lease renewals and extensions.

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ITEM 3. LEGAL PROCEEDINGS

The Company from time to time is involved in litigation in the ordinary course of business, including disputes involving advertising contracts, site leases, employment claims and construction matters. The Company is also involved in routine administrative and judicial proceedings regarding billboard permits, fees and compensation for condemnations. The Company is not a party to any lawsuit or proceeding which, in the opinion of management, is likely to have a material adverse effect on the Company.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

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PART II

ITEM 5. MARKET FOR THE REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

The Company’s Class A common stock has been publicly traded since August 2, 1996 and is currently listed on the NASDAQ Global Select Market under the symbol “LAMR.” As of December 31, 2018, the Class A common stock was held by 101 shareholders of record. The Company believes, however, that the actual number of beneficial holders of the Class A common stock may be substantially greater than the stated number of holders of record because a substantial portion of the Class A common stock is held in street name.

The Company’s Class B common stock is not publicly traded and is held of record by members of the Reilly family and the Reilly Family Limited Partnership (the “RFLP”). Kevin P. Reilly, Jr., our President and Chairman of the Board, is the managing general partner of the RFLP and Sean E. Reilly, our Chief Executive Officer, and Wendell Reilly and Anna Reilly, each of whom is a member of our board of directors are also general partners in the RFLP.

The Company’s Series AA preferred stock is entitled to preferential dividends, in an annual aggregate amount of $364,904, before any dividends may be paid on the common stock. All dividends related to the Company’s preferred stock are paid on a quarterly basis. In addition, the Company’s senior credit facility and other indebtedness have terms restricting the payment of dividends.

Dividends

As a REIT, we must annually distribute to our common stockholders an amount equal to at least 90% of our REIT taxable income (determined before the deduction for distributed earnings and excluding any net capital gain). Generally, we expect to distribute all or substantially all of our REIT taxable income to avoid being subject to income tax or excise tax on undistributed REIT taxable income. The amount, timing and frequency of future distributions will be at the sole discretion of our Board of Directors and will be declared based upon various factors, a number of which may be beyond our control, including our financial condition and operating cash flows, the amount required to maintain REIT status and reduce any income and excise taxes that we otherwise would be required to pay, limitations on distributions in our existing and future debt instruments, our ability to utilize net operating losses (“NOLs”) to offset our distribution requirements, limitations on our ability to fund distributions using cash generated through our TRSs and other factors that our Board of Directors may deem relevant.

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ITEM 6. SELECTED FINANCIAL DATA

Lamar Advertising Company

The selected consolidated statement of income, statement of cash flows and balance sheet data presented below are derived from the year ended December 31 audited consolidated financial statements of the Company, which are prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). The data presented below should be read in conjunction with the audited consolidated financial statements, related notes and Management’s Discussion and Analysis of Financial Condition and Results of Operations included herein.

	2018			2017			2016			2015			2014
	(Dollars in Thousands)
Statement of Income Data:
Net revenues	$	1,627,222		$	1,541,260		$	1,500,294		$	1,353,396		$	1,287,060
Operating expenses:
Direct advertising expenses		561,848			540,880			525,597			473,760			453,269
General and administrative expenses		372,324			338,573			345,789			313,941			299,878
Depreciation and amortization		225,261			211,104			204,958			191,433			258,435
Loss (gain) on disposition of assets		7,233			(4,664	)		(15,095	)		(8,765	)		(3,192	)
Total operating expenses		1,166,666			1,085,893			1,061,249			970,369			1,008,390
Operating income		460,556			455,367			439,045			383,027			278,670
Other expense (income):
Loss on extinguishment of debt		15,429			71			3,198			—			26,023
Other-than-temporary impairment of investment		—			—			—			—			4,069
Interest income		(534	)		(6	)		(6	)		(34	)		(102	)
Interest expense		129,732			128,396			123,688			98,433			105,254
Total other expense		144,627			128,461			126,880			98,399			135,244
Income before income taxes		315,929			326,906			312,165			284,628			143,426
Income tax expense (benefit)		10,697			9,230			13,356			22,058			(110,092	)
Net income		305,232			317,676			298,809			262,570			253,518
Preferred stock dividends		365			365			365			365			365
Net income applicable to common stock	$	304,867		$	317,311		$	298,444		$	262,205		$	253,153
Net income per share basic	$	3.09		$	3.24		$	3.07		$	2.72		$	2.66
Net income per share diluted	$	3.08		$	3.23		$	3.05		$	2.72		$	2.66
Cash dividends declared per common share	$	3.65		$	3.32		$	3.02		$	2.75		$	2.50
Statement of Cash Flow Data:
Cash flows provided by operating activities	$	564,846		$	507,016		$	521,823		$	477,650		$	452,529
Cash flows used in investing activities	$	584,148		$	400,066		$	680,983		$	253,880		$	163,997
Cash flows (used in) provided by financing activities	$	(73,563	)	$	(28,641	)	$	171,908		$	(224,808	)	$	(294,315	)
Balance Sheet Data(1)
Cash and cash equivalents	$	21,494		$	115,471		$	35,530		$	22,327		$	26,035
Working capital		(91,366	)		94,525			36,929			44,902			47,803
Total assets		4,544,641			4,214,345			3,898,884			3,363,744			3,318,818
Total debt (including current maturities)		2,888,688			2,556,690			2,349,183			1,891,450			1,899,895
Total long-term obligations		2,957,822			2,784,858			2,552,032			2,105,855			2,112,011
Stockholders’ equity		1,131,784			1,103,493			1,069,528			1,021,059			981,466

⁽¹⁾ Certain balance sheet reclassifications were made in order to be comparable to the current year presentation.

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ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

This report contains forward-looking statements. These statements are subject to risks and uncertainties including those described in Item 1A under the heading “Risk Factors,” and elsewhere in this Annual Report, that could cause actual results to differ materially from those projected in these forward-looking statements. The Company cautions investors not to place undue reliance on the forward-looking statements contained in this document. These statements speak only as of the date of this document, and the Company undertakes no obligation to update or revise the statements, except as may be required by law.

LAMAR ADVERTISING COMPANY

The following is a discussion of the consolidated financial condition and results of operations of the Company for the years ended December 31, 2018, 2017 and 2016. This discussion should be read in conjunction with the consolidated financial statements of the Company and the related notes.

OVERVIEW

The Company’s net revenues are derived primarily from the rental of advertising space on outdoor advertising displays owned and operated by the Company. Revenue growth is based on many factors that include the Company’s ability to increase occupancy of its existing advertising displays; raise advertising rates; and acquire new advertising displays and its operating results are therefore affected by general economic conditions, as well as trends in the advertising industry. Advertising spending is particularly sensitive to changes in general economic conditions, which affect the rates the Company is able to charge for advertising on its displays and its ability to maximize advertising sales or occupancy on its displays.

Historically, the Company has made strategic acquisitions of outdoor advertising assets to increase the number of outdoor advertising displays it operates in existing and new markets. The Company continues to evaluate and pursue strategic acquisition opportunities as they arise. The Company has financed its historical acquisitions and intends to finance any future acquisition activity from available cash, borrowings under its senior credit facility or the issuance of debt or equity securities. See “Liquidity and Capital Resources-Sources of Cash,” for more information. During the year ended December 31, 2018, the Company completed acquisitions for a total cash purchase price of approximately $477.4 million.  See “Uses of Cash-Acquisitions,” for more information.

The Company’s business requires expenditures for maintenance and capitalized costs associated with the construction of new billboard displays, the entrance into and renewal of logo sign and transit contracts, and the purchase of real estate and operating equipment. The following table presents a breakdown of capitalized expenditures for the past three years:

	2018		2017		2016
	(In thousands)
Billboard — Traditional	$	37,905	$	36,015	$	48,009
Billboard — Digital		45,938		40,218		33,181
Logos		11,438		9,614		7,781
Transit		5,364		2,863		700
Land and buildings		8,420		13,690		10,295
PP&E		8,573		6,929		7,646
Total capital expenditures	$	117,638	$	109,329	$	107,612

We expect our 2019 capital expenditures to approximate our 2018 spending.

NON-GAAP FINANCIAL MEASURES

Our management reviews our performance by focusing on several key performance indicators not prepared in conformity with Generally Accepted Accounting Principles in the United States (“GAAP”). We believe these non-GAAP performance indicators are meaningful supplemental measures of our operating performance and should not be considered in isolation of, or as a substitute for their most directly comparable GAAP financial measures.

Included in our analysis of our results of operations are discussions regarding earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”), Funds From Operations (“FFO”), as defined by the National Association of Real Estate Investment Trusts, Adjusted Funds From Operations (“AFFO”) and acquisition-adjusted net revenue.

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We define Adjusted EBITDA as net income before income tax expense (benefit), interest expense (income), gain (loss) on extinguishment of debt and investments, stock-based compensation, depreciation and amortization and gain or loss on disposition of assets and investments.

FFO is defined as net income before gains or losses from the sale or disposal of real estate assets and investments and real estate related depreciation and amortization and including adjustments to eliminate non-controlling interest.

We define AFFO as FFO before (i) straight-line revenue and expense; (ii) stock-based compensation expense; (iii) non-cash tax expense (benefit); (iv) non-real estate related depreciation and amortization; (v) amortization of deferred financing and debt issuance costs, (vi) loss on extinguishment of debt; (vii) non-recurring infrequent or unusual losses (gains); (viii) less maintenance capital expenditures; and (ix) an adjustment for non-controlling interest.

Acquisition-adjusted net revenue adjusts our net revenue for the prior period by adding to it the net revenue generated by the acquired assets before our acquisition of these assets for the same time frame that those assets were owned in the current period. In calculating acquisition-adjusted revenue, therefore, we include revenue generated by assets that we did not own in the period but acquired in the current period. We refer to the amount of pre-acquisition revenue generated by the acquired assets during the prior period that corresponds with the current period in which we owned the assets (to the extent within the period to which this report relates) as “acquisition net revenue”. In addition, we also adjust the prior period to subtract revenue generated by the assets that have been divested since the prior period and, therefore, no revenue derived from those assets is reflected in the current period.

Adjusted EBITDA, FFO, AFFO and acquisition-adjusted net revenue are not intended to replace net income or any other performance measures determined in accordance with GAAP. Neither FFO nor AFFO represent cash flows from operating activities in accordance with GAAP and, therefore, these measures should not be considered indicative of cash flows from operating activities as a measure of liquidity or of funds available to fund our cash needs, including our ability to make cash distributions. Rather, Adjusted EBITDA, FFO, AFFO and acquisition-adjusted net revenue are presented as we believe each is a useful indicator of our current operating performance. We believe that these metrics are useful to an investor in evaluating our operating performance because (1) each is a key measure used by our management team for purposes of decision making and for evaluating our core operating results; (2) Adjusted EBITDA is widely used in the industry to measure operating performance as depreciation and amortization may vary significantly among companies depending upon accounting methods and useful lives, particularly where acquisitions and non-operating factors are involved; (3) acquisition-adjusted net revenue is a supplement to net revenue to enable investors to compare period over period results on a more consistent basis without the effects of acquisitions and divestures, which reflects our core performance and organic growth (if any) during the period in which the assets were owned and managed by us; (4) Adjusted EBITDA, FFO and AFFO each provides investors with a meaningful measure for evaluating our period-to-period operating performance by eliminating items that are not operational in nature; and (5) each provides investors with a measure for comparing our results of operations to those of other companies.

Our measurement of Adjusted EBITDA, FFO, AFFO and acquisition-adjusted net revenue may not, however, be fully comparable to similarly titled measures used by other companies. Reconciliations of Adjusted EBITDA, FFO, AFFO and acquisition-adjusted net revenue to net income, the most directly comparable GAAP measure, have been included herein.

RESULTS OF OPERATIONS

The following table presents certain items in the Consolidated Statements of Income as a percentage of net revenues for the years ended December 31, 2018, 2017 and 2016:

	Year Ended December 31,
	2018			2017			2016
Net revenues		100.0	%		100.0	%		100.0	%
Operating expenses:
Direct advertising expenses		34.5	%		35.1	%		35.0	%
General and administrative expenses		17.8	%		17.9	%		18.0	%
Corporate expenses		5.1	%		4.0	%		5.1	%
Depreciation and amortization		13.8	%		13.7	%		13.7	%
Operating income		28.3	%		29.5	%		29.3	%
Loss on extinguishment of debt		0.9	%		0.0	%		0.2	%
Interest expense		8.0	%		8.3	%		8.2	%
Income tax expense		0.7	%		0.6	%		0.9	%
Net income		18.8	%		20.6	%		19.9	%

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Year ended December 31, 2018 compared to Year ended December 31, 2017

Net revenues increased $86.0 million or 5.6% to $1.627 billion for the year ended December 31, 2018 from $1.541 billion for the same period in 2017. This increase was attributable primarily to an increase in billboard net revenues of $72.6 million or 5.4% over the prior period, which is primarily related to the integration of outdoor assets acquired during 2017 and 2018, and the addition of over 250 digital displays during the year ended December 31, 2018.  In addition, logo sign revenue increased $1.5 million, which represents an increase of 1.8% over the prior period.  Transit revenue increased $11.9 million, which represents an increase of 10.1% over the prior period, primarily due to several new transit and airport markets acquired in 2017 and 2018.

Net revenues for the year ended December 31, 2018, as compared to acquisition-adjusted net revenues for the comparable period in 2017, increased $53.1 million, or 3.4%. The $53.1 million increase in revenue primarily consisted of a $45.1 million increase in billboard revenue primarily due to increases in digital and political revenue, a $1.1 million increase in logo revenue and a $6.8 million increase in transit revenue over the acquisition-adjusted net revenue for the comparable period in 2017. See “Reconciliations” below.

Total operating expenses, exclusive of depreciation and amortization and loss (gain) on disposition of assets, increased $54.7 million, or 6.2% to $934.2 million for the year ended December 31, 2018 from $879.5 million in the same period in 2017. The $54.7 million increase over the prior year is comprised of a $19.8 million increase in stock-based compensation expense and a $34.9 million increase in total direct, general and administrative and corporate expenses (excluding stock-based compensation) primarily related to the operations of our outdoor advertising assets.

Depreciation and amortization expense increased $14.2 million to $225.3 million for the year ended December 31, 2018 as compared to $211.1 million for the same period in 2017, primarily related to the addition of approximately $774.7 million of assets acquired through acquisitions during fiscal years 2017 and 2018.

For the year ended December 31, 2018, the Company recognized a loss on disposition of assets of $7.2 million primarily related to the $7.8 million loss recognized on the sale of our Puerto Rico assets which closed on April 16, 2018.

Due primarily to the above factors, operating income increased $5.2 million to $460.6 million for the year ended December 31, 2018 compared to $455.4 million for the same period in 2017.

During the year ended December 31, 2018, the Company recorded a $15.4 million loss on debt extinguishment related to Lamar Media’s prepayment of its 5 7/8% Senior Subordinated Notes due 2022.  The $15.4 million loss is comprised of a cash redemption premium of $9.8 million and a non-cash write off of unamortized deferred financing costs of approximately $5.6 million.  See “Uses of Cash” for more information.

Interest expense increased $1.3 million for the year ended December 31, 2018 to $129.7 million as compared to $128.4 million for the year ended December 31, 2017.  The increase in interest expense is primarily related to the increased debt outstanding as compared to the same period in 2017.

The increase in operating income offset by the increases in loss on extinguishment of debt and interest expense over the comparable period in 2017, resulted in a $11.0 million decrease in net income before income taxes. The Company recognized $10.7 million in income tax expense for the year ended December 31, 2018. The effective tax rate for the year ended December 31, 2018 is approximately 3.4%, which differs from the federal statutory rate primarily due to our qualification for taxation as a REIT and adjustments for foreign items.

As a result of the above factors, the Company recognized net income for the year ended December 31, 2018 of $305.2 million, as compared to net income of $317.7 million for the same period in 2017.

Reconciliations:

Because acquisitions occurring after December 31, 2016 have contributed to our net revenue results for the periods presented, we provide 2017 acquisition-adjusted net revenue, which adjusts our 2017 net revenue for the year ended December 31, 2017 by adding to or subtracting from it the net revenue generated by the acquired or divested assets prior to our acquisition or divestiture of these assets for the same time frame that those assets were owned in the year ended December 31, 2018.

Reconciliations of 2017 reported net revenue to 2017 acquisition-adjusted net revenue for the year ended December 31, 2017 as well as a comparison of 2017 acquisition-adjusted net revenue to 2018 reported net revenue for the year ended December 31, 2018, are provided below:

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Reconciliation and Comparison of Reported Net Revenue to Acquisition-Adjusted Net Revenue

	Year ended December 31,
	2018		2017
	(in thousands)
Reported net revenue	$	1,627,222	$	1,541,260
Acquisition net revenue		—		32,898
Adjusted totals	$	1,627,222	$	1,574,158

Key Performance Indicators

Net Income/Adjusted EBITDA

(in thousands)

	Year Ended December 31,					Amount of Increase			Percent Increase
	2018		2017			(Decrease)			(Decrease)
Net income	$	305,232	$	317,676		$	(12,444	)		(3.9	)%
Income tax expense		10,697		9,230			1,467
Loss on extinguishment of debt		15,429		71			15,358
Interest expense (income), net		129,198		128,390			808
Loss (gain) on disposition of assets		7,233		(4,664	)		11,897
Depreciation and amortization		225,261		211,104			14,157
Stock-based compensation expense		29,443		9,599			19,844
Adjusted EBITDA	$	722,493	$	671,406		$	51,087			7.6	%

Adjusted EBITDA for the year ended December 31, 2018 increased 7.6% to $722.5 million. The increase in Adjusted EBITDA was primarily attributable to the increase in our gross margin (net revenue less direct advertising expense, exclusive of depreciation and amortization) of $65.0 million, and was partially offset by an increase in general and administrative and corporate expenses of $13.9 million, excluding the impact of stock-based compensation expense.

Net Income/FFO/AFFO

(in thousands)

	Year Ended December 31,						Amount of Increase			Percent Increase
	2018			2017			(Decrease)			(Decrease)
Net income	$	305,232		$	317,676		$	(12,444	)		(3.9	)%
Depreciation and amortization related to real estate		212,457			198,630			13,827
Loss (gain) from disposition of real estate assets and investments		8,689			(4,185	)		12,874
Adjustments for unconsolidated affiliates and    non-controlling interest		648			839			(191	)
FFO	$	527,026		$	512,960		$	14,066			2.7	%
Straight-line income		(2,036	)		(754	)		(1,282	)
Stock-based compensation expense		29,443			9,599			19,844
Non-cash portion of tax provision		660			804			(144	)
Non-real estate related depreciation and amortization		12,804			12,474			330
Amortization of deferred financing costs		4,920			5,120			(200	)
Loss on extinguishment of debt		15,429			71			15,358
Capital expenditures – maintenance		(43,108	)		(43,119	)		11
Adjustments for unconsolidated affiliates and    non-controlling interest		(648	)		(839	)		191
AFFO	$	544,490		$	496,316		$	48,174			9.7	%

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FFO for the year ended December 31, 2018 was $527.0 million as compared to FFO of $513.0 million for the same period in 2017. AFFO for the year ended December 31, 2018 increased 9.7% to $544.5 million as compared to $496.3 million for the same period in 2017. AFFO growth was primarily attributable to the increase in our gross margin (net revenue less direct advertising expense, exclusive of depreciation and amortization), offset by increases in general and administrative and corporate expenses (excluding the effect of stock based compensation expense).

Year ended December 31, 2017 compared to Year ended December 31, 2016

Net revenues increased $41.0 million or 2.7% to $1.541 billion for the year ended December 31, 2017 from $1.500 billion for the same period in 2016. This increase was attributable primarily to an increase in billboard net revenues of $28.6 million or 2.2% over the prior period, which is primarily related to the integration of outdoor assets acquired during 2016 and 2017, and the addition of approximately 275 digital displays during the year ended December 31, 2017.  In addition, logo sign revenue increased $2.4 million, which represents an increase of 3.0% over the prior period.  Transit revenue increased $10.0 million, which represents an increase of 9.3% over the prior period, primarily due to several new transit and airport markets acquired in 2017.

Net revenues for the year ended December 31, 2017, as compared to acquisition-adjusted net revenues for the comparable period in 2016, increased $15.5 million, or 1.0%. The $15.5 million increase in revenue primarily consisted of an $8.3 million increase in billboard revenue, a $3.1 million increase in logo revenue and a $4.1 million increase in transit revenue over the acquisition-adjusted net revenue for the comparable period in 2016. See “Reconciliations” below.

Total operating expenses, exclusive of depreciation and amortization and gain on sale of assets, increased $8.1 million or 0.9% to $879.5 million for the year ended December 31, 2017. The $8.1 million increase over the prior year is comprised of a $22.1 million increase in operating expenses related to the operations of our outdoor advertising assets, partially offset by a decrease in corporate expenses of $14.0 million primarily due to a reduction in stock-based compensation of $15.1 million over the same period in 2016.

Depreciation and amortization expense increased $6.1 million for the year ended December 31, 2017 as compared to the year ended December 31, 2016, primarily due to depreciation and amortization on the assets acquired during 2016 and 2017.

Gain on disposition of assets for the year ended December 31, 2017 decreased $10.4 million over the same period in 2016.  The $10.4 million decrease is comprised of a $6.2 million decrease in non-cash gains recognized for acquisition swap transactions in 2017 as compared to the same period in 2016, approximately $1.0 million of losses in Puerto Rico related to hurricane Maria in the fourth quarter of 2017 and a $2.8 million decrease in gains related to various transactions of inventory sold during the year ended December 31, 2017 as compared to the same period in 2016.

Due primarily to the above factors, operating income increased $16.3 million to $455.4 million for the year ended December 31, 2017 compared to $439.0 million for the same period in 2016.

During the year ended December 31, 2017, the Company recognized a $0.1 million loss on extinguishment of debt related to the amendment of Lamar Media’s senior credit facility as compared to a $3.2 million loss on debt extinguishment recognized in 2016 related to the prepayment of Lamar Media’s Term A-1 loan under its senior credit facility.

Interest expense increased approximately $4.7 million from $123.7 million for the year ended December 31, 2016 to $128.4 million for the year ended December 31, 2017, primarily as a result of increased debt outstanding due to the refinancing of Lamar Media’s senior credit facility in 2017. See —“Uses of Cash “for more information.

The increase in operating income and decrease in loss on extinguishment of debt, offset by the increase in interest expense over the comparable period in 2016, resulted in a $14.7 million increase in net income before income taxes. The Company recognized $9.2 million in income tax expense for the year ended December 31, 2017. The effective tax rate for the year ended December 31, 2017 is approximately 2.8%, which differs from the federal statutory rate primarily due to our qualification for taxation as a REIT and adjustments for foreign items.

As a result of the above factors, the Company recognized net income for the year ended December 31, 2017 of $317.7 million, as compared to net income of $298.8 million for the same period in 2016.

Reconciliations:

Because acquisitions occurring after December 31, 2015 have contributed to our net revenue results for the periods presented, we provide 2016 acquisition-adjusted net revenue, which adjusts our 2016 net revenue for the year ended December 31, 2016 by

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adding to or subtracting from it the net revenue generated by the acquired or divested assets prior to our acquisition or divestiture of these assets for the same time frame that those assets were owned in the year ended December 31, 2017.

Reconciliations of 2016 reported net revenue to 2016 acquisition-adjusted net revenue for the year ended December 31, 2016 as well as a comparison of 2016 acquisition-adjusted net revenue to 2017 reported net revenue for the year ended December 31, 2017, are provided below:

Reconciliation and Comparison of Reported Net Revenue to Acquisition-Adjusted Net Revenue

	Year ended December 31,
	2017		2016
	(in thousands)
Reported net revenue	$	1,541,260	$	1,500,294
Acquisition net revenue		—		25,424
Adjusted totals	$	1,541,260	$	1,525,718

Key Performance Indicators

Net Income/Adjusted EBITDA

(in thousands)

	Year Ended December 31,						Amount of Increase			Percent Increase
	2017			2016			(Decrease)			(Decrease)
Net income	$	317,676		$	298,809		$	18,867			6.3	%
Income tax expense		9,230			13,356			(4,126	)
Loss on extinguishment of debt		71			3,198			(3,127	)
Interest expense (income), net		128,390			123,682			4,708
Gain on disposition of assets		(4,664	)		(15,095	)		10,431
Depreciation and amortization		211,104			204,958			6,146
Stock-based compensation expense		9,599			28,560			(18,961	)
Adjusted EBITDA	$	671,406		$	657,468		$	13,938			2.1	%

Adjusted EBITDA for the year ended December 31, 2017 increased 2.1% to $671.4 million. The increase in Adjusted EBITDA was primarily attributable to the increase in our gross margin (net revenue less direct advertising expense, exclusive of depreciation and amortization) of $25.7 million, and was partially offset by an increase in general and administrative and corporate expenses of $11.7 million, excluding the impact of stock-based compensation expense.

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Net Income/FFO/AFFO

(in thousands)

	Year Ended December 31,						Amount of Increase			Percent Increase
	2017			2016			(Decrease)			(Decrease)
Net income	$	317,676		$	298,809		$	18,867			6.3	%
Depreciation and amortization related to real estate		198,630			190,964			7,666
Gain from disposition of real estate assets and investments		(4,185	)		(14,789	)		10,604
Adjustments for unconsolidated affiliates and    non-controlling interest		839			605			234
FFO	$	512,960		$	475,589		$	37,371			7.9	%
Straight-line (income) expense		(754	)		255			(1,009	)
Stock-based compensation expense		9,599			28,560			(18,961	)
Non-cash portion of tax provision		804			(343	)		1,147
Non-real estate related depreciation and amortization		12,474			13,994			(1,520	)
Amortization of deferred financing costs		5,120			5,333			(213	)
Loss on extinguishment of debt		71			3,198			(3,127	)
Capital expenditures – maintenance		(43,119	)		(37,090	)		(6,029	)
Adjustments for unconsolidated affiliates and    non-controlling interest		(839	)		(605	)		(234	)
AFFO	$	496,316		$	488,891		$	7,425			1.5	%

FFO for the year ended December 31, 2017 was $513.0 million as compared to FFO of $475.6 million for the same period in 2016. AFFO for the year ended December 31, 2017 increased 1.5% to $496.3 million as compared to $488.9 million for the same period in 2016. AFFO growth was primarily attributable to the increase in our gross margin (net revenue less direct advertising expense, exclusive of depreciation and amortization), offset by increases in general and administrative and corporate expenses (excluding the effect of stock based compensation expense) and maintenance capitalized expenditures.

LIQUIDITY AND CAPITAL RESOURCES

Overview

The Company has historically satisfied its working capital requirements with cash from operations and borrowings under its senior credit facility. The Company’s wholly owned subsidiary, Lamar Media Corp., is the principal borrower under the senior credit facility and maintains all corporate operating cash balances. Any cash requirements of the Company, therefore, must be funded by distributions from Lamar Media.

Sources of Cash

Total Liquidity at December 31, 2018. As of December 31, 2018 we had approximately $178.3 million of total liquidity, which is comprised of approximately $21.5 million in cash and cash equivalents and approximately $156.8 million of availability under the revolving portion of Lamar Media’s senior credit facility. We are currently in compliance with the maintenance covenant included in the senior credit facility, and we would remain in compliance after giving effect to borrowing the full amount available to us under the revolving portion of the senior credit facility.

Cash Generated by Operations. For the years ended December 31, 2018, 2017 and 2016 our cash provided by operating activities was $ 564.8 million, $507.0 million and $521.8 million, respectively. The increase in cash provided by operating activities for the year ended December 31, 2018 over the same period in 2017 relates to an increase in revenues offset by increases in operating expenses (excluding depreciation and amortization) and a net decrease in operating assets and liabilities. We generated cash flows from operations during 2018 in excess of our cash needs for operations and capital expenditures as described herein. We used the excess cash generated principally to pay dividends and fund our acquisitions. See — “Cash Flows” for more information.

Accounts Receivable Securitization Program.  On December 18, 2018, we entered into the Accounts Receivable Securitization Program. The Accounts Receivable Securitization Program provides up to $175.0 million in borrowing capacity, plus an accordion

feature that would permit the borrowing capacity to be increased by up to $125.0 million. Borrowing capacity under the Accounts Receivable Securitization Program is limited to the availability of eligible accounts receivable collateralizing the borrowings under the

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agreements governing the Accounts Receivable Securitization Program. In connection with the Accounts Receivable Securitization Program, Lamar Media and certain of its subsidiaries (such subsidiaries, the “Subsidiary Originators”) sell and/ or contribute their existing and future accounts receivable and certain related assets to one of two special purpose subsidiaries, Lamar QRS Receivables, LLC (the “QRS SPV”) and Lamar TRS Receivables, LLC (the “TRS SPV” and together with the QRS SPV the “Special Purpose Subsidiaries”), each of which is a wholly-owned subsidiary of Lamar Media. Existing and future accounts receivable relating to Lamar Media and its qualified REIT subsidiaries will be sold and/ or contributed to the QRS SPV and existing and future accounts receivable relating to Lamar Media’s taxable REIT subsidiaries will be sold and/ or contributed to the TRS SPV.  Each of the Special Purpose Subsidiaries has granted the lenders party to the Accounts Receivable Securitization Program a security interest in all of its assets, which consist of the accounts receivable and related assets sold or contributed to them, as described above, in order to secure the obligations of the Special Purpose Subsidiaries under the agreements governing the Accounts Receivable Securitization Program.  Pursuant to the Accounts Receivable Securitization Program, Lamar Media has agreed to service the accounts receivable on behalf of the two Special Purpose Subsidiaries for a fee. Lamar Media has also agreed to guaranty its performance in its capacity as servicer and originator, as well as the performance of the Subsidiary Originators, of their obligations under the agreements governing the Account Receivable Securitization Program. None of Lamar Media, the Subsidiary Originators or the Special Purpose Subsidiaries guarantees the collectability of the receivables under the Accounts Receivable Securitization Program. In addition, each of the Special Purpose Subsidiaries is a separate legal entity with its own separate creditors who will be entitled to access the assets of such Special Purpose Subsidiary before the assets become available to Lamar Media.  Accordingly, the assets of the Special Purpose Subsidiaries are not available to pay creditors of Lamar Media or any of its subsidiaries, although collections from receivables in excess of the amounts required to repay the lenders and the other creditors of the Special Purpose Subsidiaries may be remitted to Lamar Media.  

As of December 31, 2018, there were $175.0 million of outstanding aggregate borrowings under the Accounts Receivable Securitization Program at a borrowing rate of approximately 3.4%.

“At-the-Market” Offering Program. On May 1, 2018, the Company entered into an equity distribution agreement (the “Sales Agreement”) with J.P. Morgan Securities LLC, Wells Fargo Securities LLC and SunTrust Robinson Humphrey, Inc. as our sales agents (each a “Sales Agent”, and collectively, the “Sales Agents”).  Under the terms of the Sales Agreement, the Company may, from time to time, issue and sell shares of its Class A common stock, par value $.001 per share (the “Class A Common Stock”), having an aggregate offering price of up to $400.0 million through the Sales Agents as either agents or principals.  Sales of the Class A Common Stock, if any, may be made in negotiated transactions or transactions that are deemed to be “at-the-market offerings” as defined in Rule 415 under the Securities Act of 1933, as amended, including sales made directly on or through the Nasdaq Global Select Market and any other existing trading market for the Class A Common Stock, or sales made to or through a market maker other than on an exchange.  The Company has no obligation to sell any of the Class A Common Stock under the Sales Agreement and may at any time suspend solicitations and offers under the Sales Agreement.  The Company intends to use the net proceeds, if any, from the sale of the Class A Common Stock pursuant to the Sales Agreement for general corporate purposes, which may include the repayment, refinancing, redemption or repurchase of existing indebtedness, working capital, capital expenditures, acquisition of outdoor advertising assets and businesses and other related investments.   During the quarter and year ended December 31, 2018, the Company received gross proceeds of approximately $27.5 million and $42.8 million, resulting in net proceeds of approximately $27.0 million and $42.1 million, in exchange for ‎issuing 362,726 and 576,002 shares of its Class A common stock under this program, respectively. During the quarter and year ended December 31, 2018, the aggregate ‎commissions paid to the sales agent was approximately $0.4 and $0.6 million, respectively. ‎

Shelf Registration Statement. On August 6, 2018, we filed an automatically effective shelf registration statement (No. 333-226614) that registered the offer and sale of an indeterminate amount of additional shares of our Class A common stock.  On August 23, 2018, we filed a prospectus supplement to the shelf registration statement relating to the offer and resale of 163,137 shares of Class A common stock previously issued in connection with an acquisition.  We may issue additional shares under the shelf registration statement in the future in connection with future acquisitions or for other general corporate purposes.

Sale of Puerto Rico Operations. On April 16, 2018, the Company sold substantially all of its operating assets in Puerto Rico to B-Billboard BB LLC and B-Billboard BG LLC which resulted in a loss on disposition of assets of approximately $7.8 million.

Credit Facilities.On May 15, 2017, Lamar Media entered into a Third Restatement Agreement (“Restatement Agreement”) with the Company, certain of Lamar Media’s subsidiaries as guarantors, JPMorgan Chase Bank, N.A. as administrative agent and the lenders party thereto, under which the parties agreed to amend and restate Lamar Media’s existing senior credit facility. The Restatement Agreement amended and restated the Second Amended and Restated Credit Agreement dated as of February 3, 2014, as amended, which consisted of a $400.0 million revolving credit facility and a $300.0 million Term A loan facility. ‎

Lamar Media’s Third Amended and Restated Credit Agreement dated as of May 15, 2017 (as amended, the “senior credit facility”) originally consisted of (i) a new $450.0 million senior secured revolving credit facility which will mature on May 15, 2022

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(the “revolving credit facility”), (ii) a new $450.0 million Term A loan facility (the “Term A loans”)  which will mature on May 15, 2022, and (iii) an incremental facility (the “Incremental Facility”) pursuant to which Lamar Media may incur additional term loan tranches or increase its revolving credit facility subject to pro forma compliance with the secured debt ratio financial maintenance covenant described under “Restrictions under Senior Credit Facility.” Lamar Media borrowed all $450.0 million in Term A loans on May 15, 2017.  The Term A loans began amortizing on September 30, 2017 in quarterly installments, as set forth therein, with the remainder payable at maturity. The net proceeds from the Term A loans, together with borrowing under the revolving portion of senior credit facility and cash on hand, were used to repay all outstanding amounts under the Second Amended and Restated Credit Agreement, and all revolving commitments under that facility were terminated.

On March 16, 2018, Lamar Media entered into Amendment No. 1 to the Third Amended and Restated Credit Agreement dated May 15, 2017, with Lamar Advertising, certain of Lamar Media’s subsidiaries as Guarantors, JPMorgan Chase Bank, N.A. as administrative agent and the lenders named therein, under which the parties agreed to amend the existing senior credit facility to establish a new $600.0 million Term B Loan Facility, which will mature on March 16, 2025.  The Term B loan began amortizing on June 30, 2018 in equal quarterly installments of $1.5 million with the remainder payable at maturity.  Lamar Media borrowed the full amount of the Term B loan on March 16, 2018.  The proceeds from the Term B loan, together with available cash on hand were used to redeem in full Lamar Media’s 5 7/8% Senior Subordinated Notes due 2022.  See Uses of Cash for more information.

As of December 31, 2018, the senior credit facility consisted of (i) the revolving credit facility, (ii) the Term A loans, (iii) the Term B loans and (iv) the Incremental Facility.  As of December 31, 2018, the aggregate balance outstanding under the senior credit facility was $1.28 billion, consisting of $413.7 million outstanding in Term A loans, $589.2 million in Term B loans and $276.7 million of revolving credit loans under the revolving credit facility.  In addition, at December 31, 2018, Lamar Media had approximately $156.8 million of unused capacity under the revolving credit facility.

On January 17, 2019, Lamar Media entered into an incremental amendment to the senior credit facility to include $100.0 million in additional revolving commitments, thereby increasing the total borrowing capacity under the revolving credit facility to $550.0 million.  

Note Offerings. On February 1, 2019, Lamar Media issued $250 million in aggregate principle amount of 5 3/4% Senior Notes due 2026 through an institutional private placement (the “New Notes”).  The New Notes were issued as additional notes to the existing $400 million aggregate principal amount of 5 3/4% Senior Notes due 2026 that Lamar issued on January 28, 2016 (the “Existing Notes”).  Other than with respect to the date of issuance, issue price and CUSIP number, the New Notes have the same terms as the Existing Notes.  Once the New Notes are registered under the Securities Act and exchanged for exchange notes or become freely tradable under Rule 144, Lamar Media expects that the New Notes and the Existing Notes will share a single CUSIP number and thereafter be fungible.  The net proceeds after underwriting fees and expenses, was approximately $251.5 million and were used to repay a portion of the borrowings outstanding under the revolving credit facility.

On January 28, 2016, Lamar Media completed an institutional private placement of $400 million aggregate principal amount of its 5 3/4% Senior Notes due 2026. The institutional private placement resulted in net proceeds to Lamar Media, after payment of fees and expenses of approximately $394.5 million. Lamar Media used the proceeds of this offering to repay the $300.0 million Term A-1 loan, which it borrowed on January 7, 2016 in order to fund the acquisition of certain assets of Clear Channel Outdoor Holdings, Inc., and a portion of the borrowing outstanding under its revolving credit facility.  On September 1, 2016, Lamar Media completed an exchange offer for all of its then outstanding 5 3/4% Senior Notes, which were not registered under the Securities Act of 1933, as amended, for an equal principal amount of newly issued 5 3/4% Senior Notes that were so registered.  Lamar Media did not receive any proceeds from the exchange offer.

Factors Affecting Sources of Liquidity

Internally Generated Funds. The key factors affecting internally generated cash flow are general economic conditions, specific economic conditions in the markets where the Company conducts its business and overall spending on advertising by advertisers.

Credit Facilities and Other Debt Securities. The Company and Lamar Media must comply with certain covenants and restrictions related to the senior credit facility, its outstanding debt securities and its Accounts Receivable Securitization Program.

Restrictions under Debt Securities. The Company and Lamar Media must comply with certain covenants and restrictions related to its outstanding debt securities. As of December 31, 2018, Lamar Media had outstanding $535 million 5% Senior Subordinated Notes issued in October 2012 (the “5% Senior Subordinated Notes”), $510 million 5 3/8% Senior Notes issued in January 2014 (the “5 3/8% Senior Notes”) and the $400 million 5 3/4% Senior Notes issued in January 2016 (the “5 3/4% Senior Notes”).   Lamar Media issued an additional $250 million of 5 3/4% Senior Notes on February 1, 2019.

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The indentures relating to Lamar Media’s outstanding notes restrict its ability to incur additional indebtedness but permit the incurrence of indebtedness (including indebtedness under the senior credit facility), (i) if no default or event of default would result from such incurrence and (ii) if after giving effect to any such incurrence, the leverage ratio (defined as the sum of (x) total consolidated debt plus (y) the aggregate liquidation preference of any preferred stock of Lamar Media’s restricted subsidiaries to trailing four fiscal quarter EBITDA (as defined in the indentures)) would be less than 7.0 to 1. Currently, Lamar Media is not in default under the indentures of any of its outstanding notes and, therefore, would be permitted to incur additional indebtedness subject to the foregoing provision.

In addition to debt incurred under the provisions described in the preceding paragraph, the indentures relating to Lamar Media’s outstanding notes permit Lamar Media to incur indebtedness pursuant to the following baskets:

• up to $1.5 billion of indebtedness under the senior credit facility;

• indebtedness outstanding on the date of the indentures or debt incurred to refinance outstanding debt;

• inter-company debt between Lamar Media and its restricted subsidiaries or between restricted subsidiaries;

• certain purchase money indebtedness and capitalized lease obligations to acquire or lease property in the ordinary course of business that cannot exceed the greater of $50 million or 5% of Lamar Media’s net tangible assets; and

• additional debt not to exceed $75 million.

Restrictions under Senior Credit Facility.Lamar Media is required to comply with certain covenants and restrictions under the senior credit facility. If the Company or Lamar Media fails to comply with these tests, the lenders under the senior credit facility will be entitled to exercise certain remedies, including the termination of the lending commitments and the acceleration of the debt payments under the senior credit facility. At December 31, 2018, and currently, we were in compliance with all such tests under the senior credit facility.

Lamar Media must maintain a secured debt ratio, defined as total consolidated secured debt of Lamar Advertising, Lamar Media and its restricted subsidiaries, minus the lesser of (x) $150 million and (y) the aggregate amount of unrestricted cash and cash equivalents of Lamar Advertising, Lamar Media and its restricted subsidiaries (other than the Special Purpose Subsidiaries (as defined above under “Sources of Cash-Accounts Receivable Securitization Program)) to EBITDA, as defined below, for the period of four consecutive fiscal quarters then ended, of less than or equal to 3.5 to 1.0.

Lamar Media is restricted from incurring additional indebtedness subject to exceptions, one of which is that it may incur additional indebtedness not exceeding the greater of $250.0 million and 6% of its total assets.

Lamar Media is also restricted from incurring additional unsecured senior indebtedness under certain circumstances unless, after giving effect to the incurrence of such indebtedness, it is in compliance with the secured debt ratio covenant and its senior debt ratio, defined as (a) total consolidated debt (excluding subordinated debt) of Lamar Advertising, Lamar Media and its restricted subsidiaries as of any date minus the lesser of (i) $150 million and (ii) the aggregate amount of unrestricted cash and cash equivalents of Lamar Advertising, Lamar Media and its restricted subsidiaries (other than the Special Purpose Subsidiaries (as defined above under “Sources of Cash-Accounts Receivable Securitization Program)) to (b) EBITDA, as defined below, for the most recent four fiscal quarters then ended is less than 4.5 to 1.0.

Lamar Media is also restricted from incurring additional subordinated indebtedness under certain circumstances unless, after giving effect to the incurrence of such indebtedness, it is in compliance with the secured debt ratio covenant and its total debt ratio, defined as (a) total consolidated debt (including subordinated debt) of Lamar Advertising, Lamar Media and its restricted subsidiaries as of any date minus the lesser of (i) $150 million and (ii) the aggregate amount of unrestricted cash and cash equivalents of Lamar Advertising, Lamar Media and its restricted subsidiaries (other than the Special Purpose Subsidiaries) to (b) EBITDA, as defined below, for the most recent four fiscal quarters then ended, is less than 6.5 to 1.0.

Under the senior credit facility, “EBITDA” means, for any period, operating income for Lamar Advertising, Lamar Media and its restricted subsidiaries (determined on a consolidated basis without duplication in accordance with GAAP) for such period (calculated (A) before (i) taxes, (ii) interest expense, (iii) depreciation, (iv) amortization, (v) any other non-cash income or charges accrued for such period, (vi) charges and expenses in connection with the senior credit facility, any actual or proposed acquisition, disposition or investment (excluding, in each case, purchases and sales of advertising space and operating assets in the ordinary course of business) and any actual or proposed offering of securities, incurrence or repayment of indebtedness (or amendment to any agreement relating to indebtedness), including any refinancing thereof, or recapitalization and (vii) any loss or gain relating to amounts paid or earned in cash prior to the stated settlement date of any swap agreement that has been reflected in operating income for such period) and (B) after giving effect to the amount of cost savings, operating expense reductions and other operating

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improvements or synergies projected by Lamar Media in good faith to be realized as a result of any acquisition, investment, merger, amalgamation or disposition within 18 months of any such acquisition, investment, merger, amalgamation or disposition, net of the amount of actual benefits realized during such period from such action; provided, (a) the aggregate amount for all such cost savings, operating expense reductions and other operating improvements or synergies will not exceed an amount equal to 15% of EBITDA for the applicable four quarter period and (b) any such adjustment to EBITDA may only take into account cost savings, operating expense reductions and other operating improvements or synergies that are (I) directly attributable to such acquisition, investment, merger, amalgamation or disposition, (II) expected to have a continuing impact on Lamar Media and its restricted subsidiaries and (III) factually supportable, in each case all as certified by the chief financial officer of Lamar Media) on behalf of Lamar Media, and excluding (except to the extent received or paid in cash by Lamar Advertising, Lamar Media or any of its restricted subsidiaries income or loss attributable to equity in affiliates for such period), excluding any extraordinary and unusual gains or losses during such period, and excluding the proceeds of any casualty events and dispositions. For purposes hereof, the effect thereon of any adjustments required under Statement of Financial Accounting Standards No. 141R shall be excluded.  If during any period for which EBITDA is being determined, Lamar Media has consummated any acquisition or disposition, EBITDA will be determined on a pro forma basis as if such acquisition or disposition had been made or consummated on the first day of such period.

The Company believes that its current level of cash on hand, availability under the senior credit facility and future cash flows from operations are sufficient to meet its operating needs through fiscal 2019. All debt obligations are reflected on the Company’s balance sheet.

Restrictions under Accounts Receivable Securitization Program.  The agreements governing the Account Receivable Securitization Program contain customary representations and warranties, affirmative and negative covenants, and termination event provisions, including but not limited to those providing for the acceleration of amounts owed under the Accounts Receivable Securitization Program if, among other things, the Special Purpose Subsidiaries fail to make payments when due, Lamar Media, the Subsidiary Originators or the Special Purpose Subsidiaries become insolvent or subject to bankruptcy proceedings or certain judicial judgments, breach certain representations and warranties or covenants or default under other material indebtedness, a change of control occurs, or if Lamar Media fails to maintain the maximum secured debt ratio of 3.50 to 1.00 required under Lamar Media’s senior credit facility.

Uses of Cash

Capital Expenditures. Capital expenditures excluding acquisitions were approximately $117.6 million for the year ended December 31, 2018. We anticipate our 2019 total capital expenditures will closely approximate our 2018 spending.

Acquisitions.During the year ended December 31, 2018, the Company completed over 30 acquisitions for a total purchase price of approximately $489.7 million, which included the acquisition of more than 9,300 billboard displays across various markets.  The acquisitions occurring during the year ended December 31, 2018 were financed using available cash on hand, borrowings under its revolving credit facility, borrowings under its Accounts Receivable Securitization Program and the issuance of 163,137 share of Class A Common Stock.

Note Redemption. On March 19, 2018, the Company used proceeds from the Term B loan, together with cash on hand, to redeem in full all $500.0 million in aggregate principal amount of Lamar Media’s 5 7/8% Senior Subordinated Notes due 2022 and repay a portion of the borrowings outstanding under Lamar Media’s revolving credit facility.  The notes were redeemed at a redemption price equal to 101.958% of the aggregate principal amount of the outstanding notes, plus accrued and unpaid interest up to the redemption date.  The Company recorded a loss on debt extinguishment of $15.4 million related to this redemption which is comprised of a $9.8 million prepayment penalty and a $5.6 million non-cash write off of unamortized deferred financing costs. See Sources of Cash-Credit Facility for more information.

Term Loans. The Term A loans mature on May 15, 2022 and the Term B loans mature on March 16, 2025.  The remaining quarterly installments scheduled to be paid on each March 31, June 30, September 30 and December 31 are as follows:

Principal Payment Date	Term A		Term B
March 31, 2019-June 30, 2019	$	5,625	$	1,500
September 30, 2019-June 30, 2020	$	8,438	$	1,500
September 30, 2020-March 31, 2022	$	16,875	$	1,500
Term A Loan Maturity May 15, 2022	$	253,125	$	—
June 30, 2022-December 31, 2024	$	—	$	1,500
Term B Loan Maturity March 16, 2025	$	—	$	559,500

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The Term Loans bear interest at rates based on the Adjusted LIBO Rate (“Eurodollar term loans”) or the Adjusted Base Rate (“Base Rate term loans”), at Lamar Media’s option. Eurodollar term loans bear interest at a rate per annum equal to the Adjusted LIBO Rate plus 1.75%; (or the Adjusted LIBO Rate plus 1.50% at any time the Total Debt Ratio is less than or equal to 3.25 to 1 for Term A loans only). Base Rate  term loans bear interest at a rate per annum equal to the Adjusted Base Rate plus 0.75% (or the Adjusted Base Rate plus 0.50% at any time the Total Debt Ratio is less than or equal to 3.25 to 1 for Term A loans only). The revolving credit facility bears interest at rates based on the Adjusted LIBO Rate (“Eurodollar revolving loans”) or the Adjusted Base Rate (“Base Rate revolving loans”), at Lamar Media’s option. Eurodollar revolving loans bear interest at a rate per annum equal to the Adjusted LIBO Rate plus 2.25% (or the Adjusted LIBO Rate plus 2.00% at any time the Total Debt Ratio is less than or equal to 4.25 to 1; or the Adjusted LIBO Rate plus 1.75% at any time the Total Debt Ratio is less than or equal to 3.00 to 1). Base Rate revolving loans bear interest at a rate per annum equal to the Adjusted Base Rate plus 1.25% (or the Adjusted Base Rate plus 1.0% at any time the total debt ratio is less than or equal to 4.25 to 1, or the Adjusted Base Rate plus 0.75% at any time the Total Debt Ratio is less than or equal to 3.00 to 1). The guarantees, covenants, events of default and other terms of the senior credit facility apply to the Term A and B loans and revolving credit facility.

Dividends. During the year ended December 31, 2018, the Company declared distributions of $361.1 million or $3.65 per share of common stock.  The Company paid distributions of $442.6 million during the year ended December 31, 2018, which includes the January 2, 2018 distribution declared in November 2017.

During the year ended December 31, 2017, the Company declared distributions of $325.5 million or $3.32 per share of common stock, including paid distributions of $243.9 million or $2.49 per share of common stock. On January 2, 2018, the Company paid its quarterly distribution declared on November 28, 2017 of $0.83 per share to its stockholders of record of its Class A common stock and Class B common stock on December 18, 2017, for approximately $81.5 million.

The Company must annually distribute to its stockholders an amount equal to at least 90% of its REIT taxable income (determined before the deduction for distributed earnings and excluding any net capital gain). The amount, timing and frequency of future distributions will be at the sole discretion of the Board of Directors and will be declared based upon various factors, a number of which may be beyond the Company’s control, including financial condition and operating cash flows, the amount required to maintain REIT status and reduce any income and excise taxes that the Company otherwise would be required to pay, limitations on distributions in our existing and future debt instruments, the Company’s ability to utilize net operating losses to offset, in whole or in part, the Company’s distribution requirements, limitations on its ability to fund distributions using cash generated through its TRSs and other factors that the Board of Directors may deem relevant.

Debt Service and Contractual Obligations. As of December 31, 2018, we had outstanding debt of approximately $2.889 billion. In the future, Lamar Media has principal reduction obligations and revolver commitment reductions under the senior credit facility. In addition, it has fixed commercial commitments. These commitments are detailed on a contractual basis as follows:

			Payments Due by Period
Contractual Obligations	Total		Less Than 1 Year		1 - 3 Years		3 - 5 Years		After 5 Years
	(In millions)
Long-Term Debt	$	2,888.7	$	29.1	$	294.8	$	1,090.6	$	1,474.2
Interest obligations on long term debt(1)		720.3		146.5		286.6		205.1		82.1
Billboard site and other operating leases		1,711.8		260.4		361.8		270.6		819.0
Total payments due	$	5,320.8	$	436.0	$	943.2	$	1,566.3	$	2,375.3

⁽¹⁾ Interest rates on our variable rate instruments are assuming rates at the December 2018 levels.

			Amount of Expiration Per Period
Other Commercial Commitments	Total Amount Committed		Less Than 1 Year		1 - 3 Years		3 - 5 Years		After 5 Years
	(In millions)
Revolving Bank Facility(2)	$	450.0	$	—	$	—	$	450.0	$	—
Standby Letters of Credit(3)	$	13.2	$	12.7	$	0.5	$	—	$	—

⁽²⁾ Lamar Media had $280.0 million outstanding under the revolving facility at December 31, 2018.

⁽³⁾ The standby letters of credit are issued under Lamar Media’s revolving credit facility and reduce the availability of the facility by the same amount.

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Cash Flows

The Company’s cash flows provided by operating activities increased by $57.8 million for the year ended December 31, 2018, primarily resulting from an increase in revenues of approximately $86.0 million and a decrease in operating net assets of $7.3 million,  offset by increases in operating expenses (excluding stock-based compensation) of approximately $34.9 million, as compared to the comparable period in 2017.

Cash flows used in investing activities increased $184.0 million from $400.1 million in 2017 to $584.1 million in 2018 primarily due to an increase in acquisition activity of $180.1 million, as compared to the same period in 2017.

The Company’s cash flows used in financing activities was $73.6 million for the year ended December 31, 2018 as compared $28.6 million in 2017.  This increase in cash used in financing activities of $45.0 million for the year ended December 31, 2018 is primarily due to increases in proceeds from financing transactions during the year, offset by increases in cash paid for dividends and distributions over the comparable period in 2017.

CRITICAL ACCOUNTING ESTIMATES

Our discussion and analysis of our results of operations and liquidity and capital resources are based on our consolidated financial statements, which have been prepared in accordance with GAAP. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses. On an ongoing basis, we evaluate our estimates and judgments, including those related to intangible assets, goodwill impairment and asset retirement obligations. We base our estimates on historical and anticipated results and trends and on various other assumptions that we believe are reasonable under the circumstances, including assumptions as to future events and, where applicable, established valuation techniques. These estimates form the basis for making judgments about carrying values of assets and liabilities that are not readily apparent from other sources. By their nature, estimates are subject to an inherent degree of uncertainty. Actual results may differ from our estimates. We believe that the following significant accounting policies and assumptions may involve a higher degree of judgment and complexity than others.

Intangible Assets. The Company has significant intangible assets recorded on its balance sheet. Intangible assets primarily represent site locations of $806.0 million and customer relationships of $95.4 million associated with the Company’s acquisitions. The fair values of intangible assets recorded are determined using discounted cash flow models that require management to make assumptions related to future operating results, including projecting net revenue growth discounted using current cost of capital rates, of each acquisition and the anticipated future economic environment. If actual results differ from management’s assumptions, an impairment of these intangibles may exist and a charge to income would be made in the period such impairment is determined. Historically no impairment charge has been required with respect to the Company’s intangible assets.

Goodwill Impairment. The Company has a significant amount of goodwill on its consolidated balance sheet and must perform an impairment test of goodwill annually or on a more frequent basis if events and circumstances indicate that the asset might be impaired. We have identified two reporting units (Logo operations and Billboard operations) in accordance with Accounting Standards Codification (“ASC”) 350 and no changes have been made to our reporting units from the prior period.

In our annual or interim measurement for impairment of goodwill, the Company conducts a qualitative assessment by examining relevant events and circumstances that could have a negative impact on the Company’s goodwill, which include macroeconomic conditions, industry and market conditions, cost factors, overall financial performance, reporting unit dispositions and acquisitions, the market capitalization of the Company and other relevant events specific to the Company. If, after assessing the totality of events or circumstances described above, the Company determines that it is more likely than not that the fair value of either of the Company's reporting units is less than its carrying amount, the Company will perform a quantitative impairment test. If impairment is indicated as a result of the quantitative impairment test, a goodwill impairment charge would be recorded to write the goodwill down to its implied fair value.  Based on the goodwill impairment analysis performed on December 31, 2018, we determined that the fair value of each reporting unit exceeded the carrying value and no impairment charge was recorded.

Asset Retirement Obligations. The Company had an asset retirement obligation of $223.0 million as of December 31, 2018. This liability relates to the Company’s obligation upon the termination or non-renewal of a lease to dismantle and remove its billboard structures from the leased land and to reclaim the site to its original condition. The Company records the present value of obligations associated with the retirement of tangible long-lived assets in the period in which they are incurred. The liability is capitalized as part of the related long-lived asset’s carrying amount. Over time, accretion of the liability is recognized as an operating expense and the capitalized cost is depreciated over the expected useful life of the related asset. In calculating the liability, the Company calculates the present value of the estimated cost to dismantle using an average cost to dismantle, adjusted for inflation and market risk.

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This calculation includes 100% of the Company’s billboard structures on leased land (which currently consist of approximately 74,500 structures). The Company uses a 15-year retirement period based on historical operating experience in its core markets, including the actual time that billboard structures have been located on leased land in such markets and the actual length of the leases in the core markets, which includes the initial term of the lease, plus consideration of any renewal period. Historical third-party cost information is used to estimate the cost of dismantling of the structures and the reclamation of the site. The interest rate used to calculate the present value of such costs over the retirement period is based on the Company’s historical credit-adjusted risk free rate.

Acquisitions. The Company accounts for transactions that meet the definition of a business and group asset purchases as acquisitions.  For transactions that meet the definition of a business combination, the Company allocates the purchase price, including any contingent consideration, to the assets acquired and the liabilities assumed at their estimated fair values as of the date of the acquisition with any excess of the purchase price paid over the estimated fair value of net assets acquired recorded as goodwill. For transactions that meet the definition of asset group purchases, the Company allocates the purchase price to the assets acquired and the liabilities assumed at their estimated fair values as of the date of the acquisition.  If a transaction is determined to be a group of assets, any direct acquisition costs are capitalized. Transaction costs for transactions determined to be a business combination are expensed as incurred.

The fair value of the assets acquired and liabilities assumed is typically determined by using either estimates of replacement costs or discounted cash flow valuation methods. When determining the fair value of tangible assets acquired, the Company must estimate the cost to replace the asset with a new asset, adjusted for an estimated reduction in fair value due to age of the asset, and the economic useful life. When determining the fair value of intangible assets acquired, the Company must estimate the applicable discount rate and the timing and amount of future cash flows. The determination of the final purchase price and the acquisition-date fair value of identifiable assets acquired and liabilities assumed may extend over more than one period and result in adjustments to the preliminary estimate recognized in the prior period financial statements.

ACCOUNTING STANDARDS AND REGULATORY UPDATE

Revenue. In May 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-09 (Codified as ASC 606), Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU replaced most existing revenue recognition guidance in U.S. GAAP when it became effective. In August 2015, the FASB issued ASU No. 2015-14 deferring the effective date from January 1, 2017 to January 1, 2018, while allowing for early adoption as of January 1, 2017. The standard permits the use of either the retrospective or cumulative effect transition method. The Company adopted the provisions of ASC 606 on January 1, 2018 using the cumulative effect transition method. The Company did not have an adjustment to its opening balance of retained earnings for the adoption of this update.

Leases. In February 2016, the FASB established Topic 842, Leases, by issuing Accounting Standards Update (ASU) No. 2016-02, which requires lessees to recognize leases on the balance sheet and disclose key information about leasing arrangements. Topic 842 was subsequently amended by ASU No. 2018-01, Land Easement Practical Expedient for Transition to Topic 842; ASU No. 2018-10, Codification Improvements to Topic 842, Leases; and ASU No. 2018-11, TargetedImprovements. The new standard establishes a right-of-use model (ROU) that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement.

The new standard was effective for us on January 1, 2019, with early adoption permitted.  A modified retrospective transition approach is required, applying the new standard to all leases existing at the date of initial application. An entity may choose to use either (1) its effective date or (2) the beginning of the earliest comparative period presented in the financial statements as its date of initial application. If an entity chooses the second option, the transition requirements for existing leases also apply to leases entered into between the date of initial application and the effective date. The entity must also recast its comparative period financial statements and provide the disclosures required by the new standard for the comparative periods. We adopted the new standard on January 1, 2019 and used the effective date as our date of initial application. Consequently, financial information will not be updated and the disclosures required under the new standard will not be provided for dates and periods before January 1, 2019.

The new standard provides a number of optional practical expedients in transition. We expect to elect the ‘package of practical expedients’, which permits us not to reassess under the new standard our prior conclusions about lease identification, lease classification and initial direct costs. We also expect to elect the use of hindsight and the practical expedient pertaining to land easements. We expect to elect all of the new standard’s available transition practical expedients.

We expect that this standard will have a material effect on our financial statements. While we continue to assess all of the effects of adoption, we currently believe the most significant effects relate to (1) the recognition of new ROU assets and lease liabilities on our balance sheet for our billboard, logo, building and vehicle operating leases; (2) reclassification within our balance

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sheet of current asset prepaid operating lease balances to be a reduction of our lease liabilities and; (3) providing significant new disclosures about our leasing activities.

On adoption, we currently expect to recognize additional operating liabilities exceeding $1.1 billion, with corresponding ROU assets of the same amount based on the present value of the remaining minimum rental payments under current leasing standards for our existing operating leases.

The new standard also provides practical expedients for a company’s ongoing accounting. We currently expect to elect the short-term lease recognition exemption for our vehicle leases. This means, for those leases that qualify, we will not recognize ROU assets or lease liabilities.  This includes not recognizing ROU assets or lease liabilities for existing short-term leases of those assets in transition.

Other recently released pronouncements. In March 2016, the FASB issued ASU 2016-09, Compensation – Stock Compensation: Improvements to Employee Share-Based Payment Accounting.  The update is designed to simplify accounting for share-based payment transactions, including income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows.  The update is effective for annual periods beginning January 1, 2017 with early adoption permitted.  The adoption of this update did not have a material impact on the Company’s consolidated financial statements.

In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows – Classification of Certain Cash Receipts and Cash Payments.  The update clarifies how certain cash receipts and cash payments are presented in the statement of cash flows.  The update is effective for annual periods beginning January 1, 2018 with early adoption permitted.  The Company adopted the update for the period ended December 31, 2016.  The update did not have a material impact on the Company’s consolidated statement of cash flows.

In January 2017, the FASB issued ASU No. 2017-01, Business Combinations: Clarifying the definition of a business.  The update clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions of assets or businesses.  The update is effective for annual periods beginning after December 15, 2017, including interim periods within those periods.  Early adoption is allowed for transactions in which the acquisition date occurs before the issuance date or effective date of the amendment, but only when the transaction has not been reported in financial statements that have been issued or made available for issuance. The Company adopted the update for transactions that occurred on or after October 1, 2016. The adoption of this update did not have a material impact on the Company’s consolidated financial statements.

In January 2017, the FASB issued ASU No. 2017-04, Intangibles – Goodwill and other (Topic 350): Simplifying the test for goodwill impairment. The update simplifies how a company completes its goodwill impairment test by eliminating the two-step process, which requires determining the fair value of assets acquired or liabilities assumed in a business combination. The update requires completing the goodwill impairment test by comparing the difference between the reporting unit’s carrying value and fair value.  Goodwill charges, if any, would be determined by reducing the goodwill balance by the excess of the reporting unit’s carrying value over its fair value.  The update is effective for annual and interim fiscal periods beginning after December 15, 2019, with early adoption permitted for interim or annual goodwill impairment tests performed on or after January 1, 2017.  The Company adopted this update beginning with its December 31, 2017 goodwill impairment test.

In November 2018, the FASB issued ASU No. 2018-18, Collaborative Arrangements (Topic 808). The update is to clarify when certain transactions between collaborative arrangement participants should be accounted for as revenue under Topic 606 and when the collaborative arrangement participant is a customer in the context of a unit of account. The update also adds unit-of-account guidance in Topic 808 and requires that a collaborative arrangement participant that is not directly related to sales to a third party, and is presenting the transaction together with revenue recognized under Topic 606 is precluded if the collaborative arrangement participant is not a customer. The update is effective for annual and interim fiscal periods beginning after December 15, 2019 with early adoption permitted.  The Company does not believe this update will have a material effect on the Company’s consolidated financial statements.

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LAMAR MEDIA CORP.

The following is a discussion of the consolidated financial condition and results of operations of Lamar Media for the years ended December 31, 2018, 2017 and 2016. This discussion should be read in conjunction with the consolidated financial statements of Lamar Media and the related notes.

RESULTS OF OPERATIONS

The following table presents certain items in the Consolidated Statements of Income as a percentage of net revenues for the years ended December 31, 2018, 2017 and 2016:

	Year Ended December 31,
	2018			2017			2016
Net revenues		100.0	%		100.0	%		100.0	%
Operating expenses:
Direct advertising expenses		34.5	%		35.1	%		35.0	%
General and administrative expenses		17.8	%		17.9	%		18.0	%
Corporate expenses		5.1	%		4.0	%		5.1	%
Depreciation and amortization		13.8	%		13.7	%		13.7	%
Operating income		28.3	%		29.6	%		29.3	%
Loss on extinguishment of debt		0.9	%		0.0	%		0.2	%
Interest expense		8.0	%		8.3	%		8.2	%
Income tax expense		0.7	%		0.6	%		0.9	%
Net income		18.8	%		20.6	%		19.9	%

Year ended December 31, 2018 compared to Year ended December 31, 2017

Net revenues increased $86.0 million or 5.6% to $1.627 billion for the year ended December 31, 2018 from $1.541 billion for the same period in 2017. This increase was attributable primarily to an increase in billboard net revenues of $72.6 million or 5.4% over the prior period, which is primarily related to the integration of outdoor assets acquired during 2017 and 2018, and the addition of over 250 digital displays during the year ended December 31, 2018.  In addition, logo sign revenue increased $1.5 million, which represents an increase of 1.8% over the prior period.  Transit revenue increased $11.9 million, which represents an increase of 10.1% over the prior period, primarily due to several new transit and airport markets acquired in 2017 and 2018.

Net revenues for the year ended December 31, 2018, as compared to acquisition-adjusted net revenues for the comparable period in 2017, increased $53.1 million, or 3.4%. The $53.1 million increase in revenue primarily consisted of a $45.1 million increase in billboard revenue primarily due to increases in digital and political revenue, a $1.1 million increase in logo revenue and a $6.8 million increase in transit revenue over the acquisition-adjusted net revenue for the comparable period in 2017. See “Reconciliations” below.

Total operating expenses, exclusive of depreciation and amortization and loss (gain) on disposition of assets, increased $54.7 million, or 6.2% to $933.8 million for the year ended December 31, 2018 from $879.1 million in the same period in 2017. The $54.7 million increase over the prior year is comprised of a $19.8 million increase in stock-based compensation expense and a $34.9 million increase in total direct, general and administrative and corporate expenses (excluding stock-based compensation) primarily related to the operations of our outdoor advertising assets.

Depreciation and amortization expense increased $14.2 million to $225.3 million for the year ended December 31, 2018 as compared to $211.1 million for the same period in 2017, primarily related to the addition of approximately $774.7 million of assets acquired through acquisitions during fiscal years 2017 and 2018.

For the year ended December 31, 2018, Lamar Media recognized a loss on disposition of assets of $7.2 million primarily related to the $7.8 million loss recognized on the sale of its Puerto Rico assets which closed on April 16, 2018.

Due primarily to the above factors, operating income increased $5.2 million to $461.0 million for the year ended December 31, 2018 compared to $455.7 million for the same period in 2017.

During the year ended December 31, 2018, Lamar Media recorded a $15.4 million loss on debt extinguishment related to the prepayment of its 5 7/8% Senior Subordinated Notes due 2022.  The $15.4 million loss is comprised of a cash redemption premium of

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$9.8 million and a non-cash write off of unamortized deferred financing costs of approximately $5.6 million.  See “Uses of Cash” for more information.

Interest expense increased $1.3 million for the year ended December 31, 2018 to $129.7 million as compared to $128.4 million for the year ended December 31, 2017.  The increase in interest expense is primarily related to the increased debt outstanding as compared to the same period in 2017.

The increase in operating income offset by the increases in loss on extinguishment of debt and interest expense over the comparable period in 2017, resulted in a $11.0 million decrease in net income before income taxes. Lamar Media recognized $10.7 million in income tax expense for the year ended December 31, 2018. The effective tax rate for the year ended December 31, 2018 is approximately 3.4%, which differs from the federal statutory rate primarily due to our qualification for taxation as a REIT and adjustments for foreign items.

As a result of the above factors, Lamar Media recognized net income for the year ended December 31, 2018 of $305.6 million, as compared to net income of $318.1 million for the same period in 2017.

Reconciliations:

Because acquisitions occurring after December 31, 2016 have contributed to our net revenue results for the periods presented, we provide 2017 acquisition-adjusted net revenue, which adjusts our 2017 net revenue for the year ended December 31, 2017 by adding to or subtracting from it the net revenue generated by the acquired or divested assets prior to our acquisition or divestiture of these assets for the same time frame that those assets were owned in the year ended December 31, 2018.

Reconciliations of 2017 reported net revenue to 2017 acquisition-adjusted net revenue for the year ended December 31, 2017 as well as a comparison of 2017 acquisition-adjusted net revenue to 2018 reported net revenue for the year ended December 31, 2018, are provided below:

Reconciliation and Comparison of Reported Net Revenue to Acquisition-Adjusted Net Revenue

	Year ended December 31,
	2018		2017
	(in thousands)
Reported net revenue	$	1,627,222	$	1,541,260
Acquisition net revenue		—		32,898
Adjusted totals	$	1,627,222	$	1,574,158

Key Performance Indicators

Net Income/Adjusted EBITDA

(in thousands)

	Year Ended December 31,					Amount of Increase			Percent Increase
	2018		2017			(Decrease)			(Decrease)
Net income	$	305,631	$	318,058		$	(12,427	)		(3.9	)%
Income tax expense		10,697		9,230			1,467
Loss on extinguishment of debt		15,429		71			15,358
Interest expense, net		129,198		128,390			808
Loss (gain) on disposition of assets		7,233		(4,664	)		11,897
Depreciation and amortization		225,261		211,104			14,157
Stock-based compensation expense		29,443		9,599			19,844
Adjusted EBITDA	$	722,892	$	671,788		$	51,104			7.6	%

Adjusted EBITDA for the year ended December 31, 2018 increased 7.6% to $722.9 million. The increase in Adjusted EBITDA was primarily attributable to the increase in our gross margin (net revenue less direct advertising expense, exclusive of depreciation and amortization) of $65.0 million, and was partially offset by an increase in general and administrative and corporate expenses of $13.9 million, excluding the impact of stock-based compensation expense.

41

Net Income/FFO/AFFO

(in thousands)

	Year Ended December 31,						Amount of Increase			Percent Increase
	2018			2017			(Decrease)			(Decrease)
Net income	$	305,631		$	318,058		$	(12,427	)		(3.9	)%
Depreciation and amortization related to real estate		212,457			198,630			13,827
Loss (gain) from disposition of real estate assets and investments		8,689			(4,185	)		12,874
Adjustments for unconsolidated affiliates and    non-controlling interest		648			839			(191	)
FFO	$	527,425		$	513,342		$	14,083			2.7	%
Straight-line income		(2,036	)		(754	)		(1,282	)
Stock-based compensation expense		29,443			9,599			19,844
Non-cash portion of tax provision		660			804			(144	)
Non-real estate related depreciation and amortization		12,804			12,474			330
Amortization of deferred financing costs		4,920			5,120			(200	)
Loss on extinguishment of debt		15,429			71			15,358
Capital expenditures – maintenance		(43,108	)		(43,119	)		11
Adjustments for unconsolidated affiliates and    non-controlling interest		(648	)		(839	)		191
AFFO	$	544,889		$	496,698		$	48,191			9.7	%

FFO for the year ended December 31, 2018 was $527.4 million as compared to FFO of $513.3 million for the same period in 2017. AFFO for the year ended December 31, 2018 increased 9.7% to $544.9 million as compared to $496.7 million for the same period in 2017. AFFO growth was primarily attributable to the increase in our gross margin (net revenue less direct advertising expense, exclusive of depreciation and amortization), offset by increases in general and administrative and corporate expenses (excluding the effect of stock based compensation expense).

Year ended December 31, 2017 compared to Year ended December 31, 2016

Net revenues increased $41.0 million or 2.7% to $1.541 billion for the year ended December 31, 2017 from $1.500 billion for the same period in 2016. This increase was attributable primarily to an increase in billboard net revenues of $28.6 million or 2.2% over the prior period, which is primarily related to the integration of outdoor assets acquired during 2016 and 2017, and the addition of approximately 275 digital displays during the year ended December 31, 2017.  In addition, logo sign revenue increased $2.4 million, which represents an increase of 3.0% over the prior period.  Transit revenue increased $10.0 million, which represents an increase of 9.3% over the prior period, primarily due to several new transit and airport markets acquired in 2017.

Net revenues for the year ended December 31, 2017, as compared to acquisition-adjusted net revenues for the comparable period in 2016, increased $15.5 million, or 1.0%. The $15.5 million increase in revenue primarily consisted of an $8.3 million increase in billboard revenue, a $3.1 million increase in logo revenue and a $4.1 million increase in transit revenue over the acquisition-adjusted net revenue for the comparable period in 2016. See “Reconciliations” below.

Total operating expenses, exclusive of depreciation and amortization and gain on sale of assets, increased $8.1 million or 0.9% to $879.1 million for the year ended December 31, 2017. The $8.1 million increase over the prior year is comprised of a $22.1 million increase in operating expenses related to the operations of our outdoor advertising assets, partially offset by a decrease in corporate expenses of $14.0 million primarily due to a reduction in stock-based compensation of $15.1 million over the same period in 2016.

Depreciation and amortization expense increased $6.1 million for the year ended December 31, 2017 as compared to the year ended December 31, 2016, primarily due to depreciation and amortization on the assets acquired during 2016 and 2017.

Gain on disposition of assets for the year ended December 31, 2017 decreased $10.4 million over the same period in 2016.  The $10.4 million decrease is comprised of a $6.6 million decrease in non-cash gains recognized for acquisition swap transactions in 2017 as compared to the same period in 2016, approximately $1.0 million of losses in Puerto Rico related to hurricane Maria in the fourth quarter of 2017 and a $2.8 million decrease in gains related to various transactions of inventory sold during the year ended December 31, 2017 as compared to the same period in 2016.

42

Due primarily to the above factors, operating income increased $16.3 million to $455.7 million for the year ended December 31, 2017 compared to $439.4 million for the same period in 2016.

During the year ended December 31, 2017, Lamar Media recognized a $0.1 million loss on extinguishment of debt related to the amendment of its senior credit facility as compared to a $3.2 million loss on debt extinguishment recognized in 2016 related to the prepayment of its Term A-1 loan under the senior credit facility.

Interest expense increased approximately $4.7 million from $123.7 million for the year ended December 31, 2016 to $128.4 million for the year ended December 31, 2017, primarily resulting from an increase in debt outstanding due to the refinancing of Lamar Media’s senior credit facility in 2017. See —“Uses of Cash “for more information.

The increase in operating income and decrease in loss on extinguishment of debt, offset by the increase in interest expense over the comparable period in 2016, resulted in a $14.8 million increase in net income before income taxes. Lamar Media recognized $9.2 million in income tax expense for the year ended December 31, 2017. The effective tax rate for the year ended December 31, 2017 is approximately 2.8%, which differs from the federal statutory rate primarily due to our qualification for taxation as a REIT and adjustments for foreign items.

As a result of the above factors, Lamar Media recognized net income for the year ended December 31, 2017 of $318.1 million, as compared to net income of $299.2 million for the same period in 2016.

Reconciliations:

Because acquisitions occurring after December 31, 2015 have contributed to our net revenue results for the periods presented, we provide 2016 acquisition-adjusted net revenue, which adjusts our 2016 net revenue for the year ended December 31, 2016 by adding to or subtracting from it the net revenue generated by the acquired or divested assets prior to our acquisition or divestiture of these assets for the same time frame that those assets were owned in the year ended December 31, 2017.

Reconciliations of 2016 reported net revenue to 2016 acquisition-adjusted net revenue for the year ended December 31, 2016 as well as a comparison of 2016 acquisition-adjusted net revenue to 2017 reported net revenue for the year ended December 31, 2017, are provided below:

Reconciliation and Comparison of Reported Net Revenue to Acquisition-Adjusted Net Revenue

	Year ended December 31,
	2017		2016
	(in thousands)
Reported net revenue	$	1,541,260	$	1,500,294
Acquisition net revenue		—		25,424
Adjusted totals	$	1,541,260	$	1,525,718

Key Performance Indicators

Net Income/Adjusted EBITDA

(in thousands)

	Year Ended December 31,						Amount of Increase			Percent Increase
	2017			2016			(Decrease)			(Decrease)
Net income	$	318,058		$	299,181		$	18,877			6.3	%
Income tax expense		9,230			13,356			(4,126	)
Loss on extinguishment of debt		71			3,198			(3,127	)
Interest expense (income), net		128,390			123,682			4,708
Gain on disposition of assets		(4,664	)		(15,095	)		10,431
Depreciation and amortization		211,104			204,958			6,146
Stock-based compensation expense		9,599			28,560			(18,961	)
Adjusted EBITDA	$	671,788		$	657,840		$	13,948			2.1	%

43

Adjusted EBITDA for the year ended December 31, 2017 increased 2.1% to $671.8 million. The increase in Adjusted EBITDA was primarily attributable to the increase in our gross margin (net revenue less direct advertising expense, exclusive of depreciation and amortization) of $25.7 million, and was partially offset by an increase in general and administrative and corporate expenses of $11.7 million, excluding the impact of stock-based compensation expense.

Net Income/FFO/AFFO

(in thousands)

	Year Ended December 31,						Amount of Increase			Percent Increase
	2017			2016			(Decrease)			(Decrease)
Net income	$	318,058		$	299,181		$	18,877			6.3	%
Depreciation and amortization related to real estate		198,630			190,964			7,666
Gain from disposition of real estate assets and investments		(4,185	)		(14,789	)		10,604
Adjustments for unconsolidated affiliates and    non-controlling interest		839			605			234
FFO	$	513,342		$	475,961		$	37,381			7.9	%
Straight-line (income) expense		(754	)		255			(1,009	)
Stock-based compensation expense		9,599			28,560			(18,961	)
Non-cash portion of tax provision		804			(343	)		1,147
Non-real estate related depreciation and amortization		12,474			13,994			(1,520	)
Amortization of deferred financing costs		5,120			5,333			(213	)
Loss on extinguishment of debt		71			3,198			(3,127	)
Capital expenditures – maintenance		(43,119	)		(37,090	)		(6,029	)
Adjustments for unconsolidated affiliates and    non-controlling interest		(839	)		(605	)		(234	)
AFFO	$	496,698		$	489,263		$	7,435			1.5	%

FFO for the year ended December 31, 2017 was $513.3 million as compared to FFO of $476.0 million for the same period in 2016. AFFO for the year ended December 31, 2017 increased 1.5% to $496.7 million as compared to $489.3 million for the same period in 2016. AFFO growth was primarily attributable to the increase in our gross margin (net revenue less direct advertising expense, exclusive of depreciation and amortization), offset by increases in general and administrative expenses and corporate expenses (excluding the effect of stock-based compensation expense) and capitalized expenditures related to maintenance.

44

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Lamar Advertising Company and Lamar Media Corp.

Lamar Advertising Company is exposed to interest rate risk in connection with variable rate debt instruments issued by its wholly owned subsidiary Lamar Media Corp. The information below summarizes the Company’s interest rate risk associated with its principal variable rate debt instruments outstanding at December 31, 2018, and should be read in conjunction with Note 9 of the Notes to the Company’s Consolidated Financial Statements.

Lamar Media Corp. has variable-rate debt outstanding under its senior credit facility and its Accounts Receivable Securitization Program.  Because interest rates may increase or decrease at any time, the Company is exposed to market risk as a result of the impact that changes in interest rates may have on the applicable borrowings outstanding.  Increases in the interest rates applicable to these borrowings would result in increased interest expense and a reduction in the Company’s net income.

At December 31, 2018 there was approximately $1.45 billion of indebtedness outstanding under the senior credit facility and Accounts Receivable Securitization Program, or approximately 54.1% of the Company’s outstanding long-term debt on that date, bearing interest at variable rates. The aggregate interest expense for 2018 with respect to borrowings under the senior credit facility and the Accounts Receivable Securitization Program was $40.9 million, and the weighted average interest rate applicable to these borrowings during 2018 was 3.8%. Assuming that the weighted average interest rate was 200 basis points higher (that is 5.8% rather than 3.8%), then the Company’s 2018 interest expense would have increased by approximately $20.8 million for the years ended December 31, 2018.

The Company attempted to mitigate the interest rate risk resulting from its variable interest rate long-term debt instruments by issuing fixed rate long-term debt instruments and maintaining a balance over time between the amount of the Company’s variable rate and fixed rate indebtedness. In addition, the Company has the capability under the senior credit facility to fix the interest rates applicable to its borrowings at an amount equal to Adjusted LIBO Rate or Adjusted Base Rate plus the applicable margin for periods of up to twelve months (in certain cases with the consent of the lenders), which would allow the Company to mitigate the impact of short-term fluctuations in market interest rates. In the event of an increase in interest rates, the Company may take further actions to mitigate its exposure. The Company cannot guarantee, however, that the actions that it may take to mitigate this risk will be feasible or that, if these actions are taken, that they will be effective.

45

ITEM 8.FINANCIAL STATEMENTS

LAMAR ADVERTISING COMPANY

AND SUBSIDIARIES

Management’s Report on Internal Control Over Financial Reporting	47
Report of Independent Registered Public Accounting Firm — Internal Control Over Financial Reporting	48
Report of Independent Registered Public Accounting Firm — Consolidated Financial Statements	50
Consolidated Balance Sheets as of December 31, 2018 and 2017	51
Consolidated Statements of Income and Comprehensive Income for the years ended December  31, 2018, 2017 and 2016	52
Consolidated Statements of Stockholders’ Equity for the years ended December 31, 2018, 2017 and 2016	53
Consolidated Statements of Cash Flows for the years ended December 31, 2018, 2017 and 2016	54
Notes to Consolidated Financial Statements	55-78
Schedule II — Valuation and Qualifying Accounts for the years ended December 31, 2018, 2017 and 2016	79
Schedule III — Schedule of Real Estate and Accumulated Depreciation as of December 31, 2018, 2017 and 2016	80

46

Management’s Report on Internal Control Over Financial Reporting

The management of Lamar Advertising Company is responsible for establishing and maintaining adequate internal control over financial reporting as such term is defined in Rule 13a-15(f) and 15d-15(f) under the Exchange Act.

Lamar Advertising’s management assessed the effectiveness of Lamar Advertising’s internal control over financial reporting as of December 31, 2018. In making this assessment, management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control-Integrated Framework (2013). Based on this assessment, Lamar Advertising’s management has concluded that, as of December 31, 2018, Lamar Advertising’s internal control over financial reporting is effective based on those criteria. The effectiveness of Lamar Advertising’s internal control over financial reporting as of December 31, 2018 has been audited by KPMG LLP, an independent registered public accounting firm, as stated in their report, which is included in Item 8 to this Annual Report.

47

Report of Independent Registered Public Accounting Firm

To the Stockholders and Board of Directors
Lamar Advertising Company:

Opinion on Internal Control Over Financial Reporting

We have audited Lamar Advertising Company and subsidiaries’ (the Company) internal control over financial reporting as of December 31, 2018, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2018, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.  

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of December 31, 2018 and 2017, the related consolidated statements of income and comprehensive income, stockholders’ equity, and cash flows for each of the years in the three-year period ended December 31, 2018, and the related notes and financial statement schedules II to III (collectively, the consolidated financial statements), and our report dated February 25, 2019 expressed an unqualified opinion on those consolidated financial statements.

The Company completed a business combination with Fairway Outdoor Advertising during 2018, and management excluded from its assessment of the effectiveness of the Company’s internal control over financial reporting as of December 31, 2018, Fairway Outdoor Advertising’s internal controls over financial reporting associated with Fairway Outdoor Advertising’s total assets of $459.6 million and total revenues of $1.9 million included in the consolidated financial statements of the Company as of and for the year ended December 31, 2018. Our audit of internal controls over financial reporting of the Company also excluded an evaluation of the internal controls over financial reporting of Fairway Outdoor Advertising.

Basis for Opinion

The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audit also included performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

Definition and Limitations of Internal Control Over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

48

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ KPMG LLP

KPMG LLP

Baton Rouge, Louisiana
February 25, 2019

49

Report of Independent Registered Public Accounting Firm

To the Stockholders and Board of Directors
Lamar Advertising Company:

Opinion on the ConsolidatedFinancial Statements

We have audited the accompanying consolidated balance sheets of Lamar Advertising Company and subsidiaries (the Company) as of December 31, 2018 and 2017, the related consolidated statements of income and comprehensive income, stockholders’ equity, and cash flows for each of the years in the three‑year period ended December 31, 2018, and the related notes and financial statement schedules II to III (collectively, the consolidated financial statements). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2018 and 2017, and the results of its operations and its cash flows for each of the years in the three‑year period ended December 31, 2018, in conformity with U.S. generally accepted accounting principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of December 31, 2018, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission, and our report dated February 25, 2019 expressed an unqualified opinion on the effectiveness of the Company’s internal control over financial reporting.

Change in Accounting Principle

As discussed in Note 21 to the consolidated financial statements, the Company changed its method of accounting for business combinations effective October 1, 2016, due to the adoption of FASB ASU No. 2017-01, Clarifying the Definition of a Business.

As discussed in Note 21 to the consolidated financial statements, the Company changed its method of accounting for revenue recognition effective January 1, 2018, due to the adoption of Accounting Standards Codification Topic 606, Revenue from Contracts with Customers.

Basis for Opinion

These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.

/s/ KPMG LLP

KPMG LLP

We have served as the Company’s auditor since 1999.

Baton Rouge, Louisiana
February 25, 2019

50

LAMAR ADVERTISING COMPANY

AND SUBSIDIARIES

Consolidated Balance Sheets

December 31, 2018 and 2017

(In thousands, except share and per share data)

	2018			2017
ASSETS
Current assets:
Cash and cash equivalents	$	21,494		$	115,471
Receivables, net of allowance for doubtful accounts of $11,161 and $10,055    as of 2018 and 2017, respectively		235,576			201,699
Prepaid lease and contract expenses		80,684			70,755
Other current assets		25,915			32,594
Total current assets		363,669			420,519
Property, plant and equipment (note 5)		3,525,725			3,384,723
Less accumulated depreciation and amortization		(2,230,677	)		(2,170,585	)
Net property, plant and equipment		1,295,048			1,214,138
Goodwill (note 6)		1,919,386			1,740,454
Intangible assets, net (note 6)		915,453			796,348
Other assets		51,085			42,886
Total assets	$	4,544,641		$	4,214,345
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Trade accounts payable	$	21,246		$	17,961
Current maturities of long-term debt, net of deferred financing costs of $5,245 and  $5,133 in 2018 and 2017, respectively (note 9)		204,120			17,664
Accrued expenses (note 8)		122,467			197,675
Deferred income		107,202			92,694
Total current liabilities		455,035			325,994
Long-term debt, net of deferred financing costs of $20,619 and $23,586 in 2018 and 2017, respectively (note 9)		2,684,568			2,539,026
Deferred income tax liabilities (note 12)		20,734			884
Asset retirement obligation (note 10)		222,989			215,089
Other liabilities		29,531			29,859
Total liabilities		3,412,857			3,110,852
Stockholders’ equity (note 14):
Series AA preferred stock, par value $.001, $63.80 cumulative dividends, authorized    5,720 shares; 5,720 shares issued and outstanding at 2018 and 2017		—			—
Class A common stock, par value $.001, 362,500,000 shares authorized, 85,551,595    and 84,169,118 shares issued and 85,162,692 and 83,837,834 outstanding at 2018    and 2017, respectively		86			84
Class B common stock, par value $.001, 37,500,000 shares authorized,    14,420,085 shares issued and outstanding at 2018 and 2017		14			14
Additional paid-in-capital		1,852,421			1,762,499
Accumulated comprehensive income		12			1,302
Accumulated deficit		(695,337	)		(639,106	)
Cost of shares held in treasury, 388,903 and 331,284 shares in 2018 and 2017, respectively		(25,412	)		(21,300	)
Stockholders’ equity		1,131,784			1,103,493
Total liabilities and stockholders’ equity	$	4,544,641		$	4,214,345

See accompanying notes to consolidated financial statements.

51

LAMAR ADVERTISING COMPANY

AND SUBSIDIARIES

Consolidated Statements of Income and Comprehensive Income

Years Ended December 31, 2018, 2017 and 2016

(In thousands, except share and per share data)

	2018			2017			2016
Statements of Income
Net revenues (note 2)	$	1,627,222		$	1,541,260		$	1,500,294
Operating expenses (income):
Direct advertising expenses (exclusive of depreciation and amortization)		561,848			540,880			525,597
General and administrative expenses (exclusive of depreciation    and amortization)		289,428			276,229			269,423
Corporate expenses (exclusive of depreciation and amortization)		82,896			62,344			76,366
Depreciation and amortization (note 11)		225,261			211,104			204,958
Loss (gain) on disposition of assets		7,233			(4,664	)		(15,095	)
		1,166,666			1,085,893			1,061,249
Operating income		460,556			455,367			439,045
Other expense (income):
Loss on extinguishment of debt		15,429			71			3,198
Interest income		(534	)		(6	)		(6	)
Interest expense		129,732			128,396			123,688
		144,627			128,461			126,880
Income before income tax expense		315,929			326,906			312,165
Income tax expense (note 12)		10,697			9,230			13,356
Net income		305,232			317,676			298,809
Preferred stock dividends		365			365			365
Net income applicable to common stock	$	304,867		$	317,311		$	298,444
Earnings per share:
Basic earnings per share	$	3.09		$	3.24		$	3.07
Diluted earnings per share	$	3.08		$	3.23		$	3.05
Cash dividends declared per share of common stock	$	3.65		$	3.32		$	3.02
Weighted average common shares used in computing earnings per share:
Weighted average common shares outstanding basic		98,817,525			97,930,555			97,129,614
Weighted average common shares outstanding diluted		99,086,160			98,369,865			97,693,424
Statements of Comprehensive Income
Net income	$	305,232		$	317,676		$	298,809
Other comprehensive (loss) income, net of tax
Foreign currency translation adjustments		(1,290	)		1,926			554
Comprehensive income	$	303,942		$	319,602		$	299,363

See accompanying notes to consolidated financial statements.

52

LAMAR ADVERTISING COMPANY

AND SUBSIDIARIES

Consolidated Statements of Stockholders’ Equity

Years Ended December 31, 2018, 2017 and 2016

(In thousands, except share and per share data)

	Series AA PREF Stock		Class A CMN Stock		Class B CMN Stock			Treasury Stock			Add’l Paid in Capital		Accumulated Comprehensive Income (Loss)			Accumulated Deficit			Total
Balance, December 31, 2015	$	—		82		15			(6,099	)		1,664,038		(1,178	)		(635,799	)		1,021,059
Non-cash compensation		—		—		—			—			26,177		—			—			26,177
Exercise of 470,029 shares of stock    options		—		1		—			—			17,151		—			—			17,152
Issuance of shares of common stock    through employee purchase plan		—		—		—			—			5,930		—			—			5,930
Tax benefit related to options    exercised		—		—		—			—			16		—			—			16
Purchase of 111,252 shares of    treasury stock		—		—		—			(6,204	)		—		—			—			(6,204	)
Foreign currency translation		—		—		—			—			—		554			—			554
Net income		—		—		—			—			—		—			298,809			298,809
Dividends/distributions to common    shareholders ($3.02 per common    share)		—		—		—			—			—		—			(293,600	)		(293,600	)
Dividends ($63.80 per preferred    share)		—		—		—			—			—		—			(365	)		(365	)
Balance, December 31, 2016	$	—		83		15			(12,303	)		1,713,312		(624	)		(630,955	)		1,069,528
Non-cash compensation		—		—		—			—			22,503		—			—			22,503
Exercise of 554,049 shares of stock    options		—		—		—			—			20,306		—			—			20,306
Issuance of shares of common stock    through employee purchase plan		—		—		—			—			6,378		—			—			6,378
Conversion of 190,280 shares of Class B    common stock to Class A common stock		—		1		(1	)		—			—		—			—			—
Purchase of 115,196 shares of    treasury stock		—		—		—			(8,997	)		—		—			—			(8,997	)
Foreign currency translation		—		—		—			—			—		1,926			—			1,926
Net income		—		—		—			—			—		—			317,676			317,676
Dividends/distributions to common    shareholders ($3.32 per common    share)		—		—		—			—			—		—			(325,462	)		(325,462	)
Dividends ($63.80 per preferred    share)		—		—		—			—			—		—			(365	)		(365	)
Balance, December 31, 2017	$	—		84		14			(21,300	)		1,762,499		1,302			(639,106	)		1,103,493
Non-cash compensation		—		—		—			—			15,024		—			—			15,024
Exercise of 361,618 shares of stock    options		—		1		—			—			13,432		—			—			13,433
Issuance of shares of common stock    through employee purchase plan		—		—		—			—			7,115		—			—			7,115
Issuance of 576,002 shares of common stock for cash		—		1		—			—			42,069		—			—			42,070
Issuance of 163,137 shares of common    stock for purchase of assets		—		—		—			—			12,282		—			—			12,282
Purchase of 57,619 shares of    treasury stock		—		—		—			(4,112	)		—		—			—			(4,112	)
Foreign currency translation		—		—		—			—			—		(1,290	)		—			(1,290	)
Net income		—		—		—			—			—		—			305,232			305,232
Dividends/distributions to common    shareholders ($3.65 per common    share)		—		—		—			—			—		—			(361,098	)		(361,098	)
Dividends ($63.80 per preferred    share)		—		—		—			—			—		—			(365	)		(365	)
Balance, December 31, 2018	$	—		86		14			(25,412	)		1,852,421		12			(695,337	)		1,131,784

See accompanying notes to consolidated financial statements.

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Consolidated Statements of Cash Flows

Years Ended December 31, 2018, 2017 and 2016

(In thousands)

	2018			2017			2016
Cash flows from operating activities:
Net income	$	305,232		$	317,676		$	298,809
Adjustments to reconcile net income to net cash provided by    operating activities:
Depreciation and amortization		225,261			211,104			204,958
Stock-based compensation		29,443			9,599			28,560
Amortization included in interest expense		4,920			5,120			5,333
Loss (gain) on disposition of assets and investments		7,233			(4,664	)		(15,095	)
Loss on extinguishment of debt		15,429			71			3,198
Deferred income tax expense (benefit)		1,538			804			(343	)
Provision for doubtful accounts		7,985			6,762			6,870
Changes in operating assets and liabilities:
(Increase) decrease in:
Receivables		(33,292	)		(17,524	)		(22,677	)
Prepaid expenses		(5,433	)		309			1,320
Other assets		2,828			(8,410	)		5,462
Increase (decrease) in:
Trade accounts payable		1,366			309			(746	)
Accrued expenses		(6,292	)		(9,508	)		10,245
Other liabilities		8,628			(4,632	)		(4,071	)
Cash flows provided by operating activities		564,846			507,016			521,823
Cash flows from investing activities:
Capital expenditures		(117,638	)		(109,329	)		(107,612	)
Acquisitions		(477,389	)		(297,305	)		(585,054	)
Decrease in notes receivable		9			515			21
Proceeds received from property insurance claims		4,222			—			—
Proceeds from disposition of assets and investments		6,648			6,053			11,662
Cash flows used in investing activities		(584,148	)		(400,066	)		(680,983	)
Cash flows from financing activities:
Net proceeds from issuance of common stock		62,662			26,684			23,082
Cash used for purchase of treasury shares		(4,112	)		(8,997	)		(6,204	)
Proceeds received from revolving credit facility		563,000			495,000			483,000
Payments on revolving credit facility		(481,000	)		(477,000	)		(403,000	)
Principal payments on long term debt		(27,328	)		(16,993	)		(21,118	)
Proceeds received from senior credit facility term loans		599,250			450,000			300,000
Proceeds received from accounts receivable securitization program		175,000			—			—
Debt issuance costs		(7,616	)		(4,941	)		(9,467	)
Proceeds received from note offering		—			—			400,000
Redemption of senior subordinated notes		(509,790	)		—			—
Payment on senior credit facility term loans		—			(247,500	)		(300,000	)
Distributions to non-controlling interest		(541	)		(693	)		(420	)
Dividends/distributions		(443,088	)		(244,201	)		(293,965	)
Cash flows (used in) provided by financing activities		(73,563	)		(28,641	)		171,908
Effect of exchange rate changes in cash and cash equivalents		(1,112	)		1,632			455
Net (decrease) increase in cash and cash equivalents		(93,977	)		79,941			13,203
Cash and cash equivalents at beginning of period		115,471			35,530			22,327
Cash and cash equivalents at end of period	$	21,494		$	115,471		$	35,530
Supplemental disclosures of cash flow information:
Cash paid for interest	$	136,711		$	123,213		$	108,719
Cash paid for state and federal income taxes	$	8,563		$	12,640		$	14,167

See accompanying notes to consolidated financial statements.

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Notes to Consolidated Financial Statements

(Dollars in thousands, except share and per share data)

(1) Significant Accounting Policies

(a) Nature of Business

Lamar Advertising Company (the Company) is engaged in the outdoor advertising business, operating approximately 156,900 billboard advertising displays in 45 states and Canada. The Company’s operating strategy is to be the leading provider of outdoor advertising services in the markets it serves.

In addition, the Company operates a logo sign business in 23 states throughout the United States and the province of Ontario, Canada and operates approximately 53,300 transit advertising displays in 22 states and Canada. Logo signs are erected pursuant to state-awarded service contracts on public rights-of-way near highway exits and deliver brand name information on available gas, food, lodging and camping services. Included in the Company’s logo sign business are tourism signing contracts. The Company provides transit advertising in airport terminals, on bus shelters, benches and buses in the markets it serves.

The Company operates as a Real Estate Investment Trust (“REIT”) for U.S. federal income tax purposes and generally will not be subject to federal income taxes on its income and gains that the Company distributes to its stockholders, including the income derived from advertising rental revenue. However, even as a REIT, the Company will remain obligated to pay income taxes on earnings from the assets of its taxable REIT subsidiaries (“TRSs”). In addition, the Company’s foreign assets and operations continue to be subject to taxation in the foreign jurisdictions where those assets are held or those operations are conducted.

(b) Principles of Consolidation

The accompanying consolidated financial statements include Lamar Advertising Company, its wholly owned subsidiary, Lamar Media Corp. (Lamar Media), and its majority-owned subsidiaries. All inter-company transactions and balances have been eliminated in consolidation.

An operating segment is a component of an enterprise:

• that engages in business activities from which it may earn revenues and incur expenses;

• whose operating results are regularly reviewed by the enterprise’s chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performance; and

• for which discrete financial information is available.

We define the term ‘chief operating decision maker’ to be our executive management group, which consist of our Chief Executive Officer, President and Chief Financial Officer. Currently, all operations are reviewed on a consolidated basis for budget and business plan performance by our executive management group. Additionally, operational performance at the end of each reporting period is viewed in the aggregate by our management group. Any decisions related to changes in invested capital, personnel, operational improvement or training, or to allocate other company resources are made based on the combined results.

We operate in a single operating and reporting segment, advertising. We rent advertising space on billboards, buses, shelters, benches, logo plates and in airport terminals.

(c) Property, Plant and Equipment

Property, plant and equipment are stated at cost. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets.

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Notes to Consolidated Financial Statements

(Dollars in thousands, except share and per share data)

(d) Goodwill and Intangible Assets

Goodwill is subject to an annual impairment test. The Company designated December 31 as the date of its annual goodwill impairment test. The Company is required to identify its reporting units and determine the carrying value of each reporting unit. The Company has identified two reporting units, Billboard operations and Logo operations, by assigning the assets and liabilities, including the existing goodwill and intangible assets, to those reporting units. The Company is required to determine the fair value of each reporting unit and compare it to the carrying amount of the reporting unit. To the extent the carrying amount of a reporting unit exceeds the fair value of the reporting unit, the Company would be required to book an impairment loss.

The Company conducts a qualitative assessment by examining relevant events and circumstances which could have a negative impact on the Company’s goodwill, which includes macroeconomic conditions, industry and market conditions, cost factors, overall financial performance, reporting unit dispositions and acquisitions, the market capitalization of the Company and other relevant events specific to the Company. If, after assessing the totality of events or circumstances described above, the Company determines that it is more likely than not that the fair value of either of the Company's reporting units is less than its carrying amount, the Company will perform a quantitative impairment test.  If industry and economic conditions deteriorate, the Company may be required to assess goodwill impairment before the next annual test, which could result in impairment charges.

The Company performed its annual measurement for impairment of the goodwill of its reporting units and concluded the fair value of each reporting unit exceeded its carrying amount at its annual impairment test date on December 31, 2018 and 2017; therefore, the Company was not required to recognize an impairment loss.

Intangible assets, consisting primarily of site locations, customer lists and contracts, and non-competition agreements are amortized using the straight-line method over the assets estimated useful lives, generally from 2 to 15 years.

(e) Impairment of Long-Lived Assets

Long-lived assets, such as property, plant and equipment, and purchased intangibles subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset or asset group before interest expense. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset or asset group. Assets to be disposed of would be separately presented in the balance sheet and reported at the lower of the carrying amount or fair value less costs to sell, and are no longer depreciated. The assets and liabilities of a disposed group classified as held for sale would be presented separately in the appropriate asset and liability sections of the balance sheet.

(f) Acquisitions

The Company accounts for transactions that meet the definition of a business and group asset purchases as acquisitions.  For transactions that meet the definition of a business combination, the Company allocates the purchase price, including any contingent consideration, to the assets acquired and the liabilities assumed at their estimated fair values as of the date of the acquisition with any excess of the purchase price paid over the estimated fair value of net assets acquired recorded as goodwill. For transactions that meet the definition of asset group purchases, the Company allocates the purchase price to the assets acquired and the liabilities assumed at their estimated fair values as of the date of the acquisition.  If a transaction is determined to be a group of assets, any direct acquisition costs are capitalized. Transaction costs for transactions determined to be a business combination are expensed as incurred.

The fair value of the assets acquired and liabilities assumed is typically determined by using either estimates of replacement costs or discounted cash flow valuation methods. When determining the fair value of tangible assets acquired, the Company must estimate the cost to replace the asset with a new asset, adjusted for an estimated reduction in fair value due to age of the asset, and the economic useful life. When determining the fair value of intangible assets acquired, the Company must estimate the applicable discount rate and the timing and amount of future cash flows. The determination of the final purchase price and the acquisition-date fair value of identifiable assets acquired and liabilities assumed may extend over more than one period and result in adjustments to the preliminary estimate recognized in the prior period financial statements.

Effective October 1, 2016, the Company changed its accounting for business combinations, as further discussed in note 21 to the consolidated financial statements.

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Notes to Consolidated Financial Statements

(Dollars in thousands, except share and per share data)

(g) Deferred Income

Deferred income consists principally of advertising revenue invoiced in advance. Deferred advertising revenue is recognized in income over the term of the contract.

(h) Revenue Recognition

The Company recognizes outdoor advertising revenue on an accrual basis ratably over the term of the contracts. Production revenue and the related expense for the advertising copy are recognized upon satisfaction of its performance obligation.

The Company engages in barter transactions where the Company trades advertising space for goods and services. The Company recognizes revenues and expenses from barter transactions at fair value, which is determined based on the Company’s own historical practice of receiving cash for similar advertising space from buyers unrelated to the party in the barter transaction. The amount of revenue and expense recognized for advertising barter transactions is as follows:

	2018		2017		2016
Net revenues	$	8,955	$	8,469	$	8,051
Direct advertising expenses	$	3,633	$	3,603	$	3,559
General and administrative expenses	$	4,758	$	4,332	$	4,067

(i) Income Taxes

As a REIT, the Company is generally not subject to federal income taxes on income and gains distributed to the Company’s stockholders. However, the Company remains obligated to pay income taxes on earnings from domestic TRSs. In addition, the Company’s foreign assets and operations continue to be subject to taxation in the foreign jurisdictions where those assets are held or where those operations are conducted, including those designated as Qualified REIT Subsidiaries, or QRSs, for federal income tax purposes. Accordingly, the consolidated financial statements reflect provisions for federal, state, local and foreign income taxes. The Company recognizes deferred tax assets and liabilities for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis, as well as operating loss and tax credit carryforwards. The Company measures deferred tax assets and liabilities using enacted tax rates expected to apply to taxable income in the years in which those temporary differences and carry forwards are expected to be recovered or settled. The effect on deferred tax assets and liabilities as a result of a change in tax rates is recognized in income in the period that includes the enactment date.

(j) Dividends/Distributions

As a REIT, the Company must annually distribute to its stockholders an amount equal to at least 90% of its REIT taxable income (determined before the deduction for distributed earnings and excluding any net capital gain). During the year ended December 31, 2018, the Company paid cash distributions of its REIT taxable income in an aggregate amount of $442,632 or $4.48 per share. The distributions paid during 2018 include distributions declared and accrued as of December 31, 2017 of $81,534 or $0.83 per share. During the year ended December 31, 2017, the Company declared distributions of $325,462 or $3.32 per share, including paid distributions of $243,928 or $2.49 per share. During the year ended 2016, the Company declared and paid distributions of its REIT taxable income of an aggregate of $293,600 or $3.02 per share. The amount, timing and frequency of future distributions will be at the sole discretion of the Board of Directors and will be declared based upon various factors, a number of which may be beyond the Company’s control, including the financial condition and operating cash flows, the amount required to maintain REIT status and reduce any income and excise taxes that the Company otherwise would be required to pay, limitations on distributions in its existing and future debt instruments, the Company’s ability to utilize net operating losses (“NOLs”) to offset, in whole or in part, the Company’s distribution requirements, limitations on its ability to fund distributions using cash generated through its TRSs and other factors that the Board of Directors may deem relevant. During the year ended December 31, 2018, the Company paid cash dividend distributions to holders of its Series AA Preferred Stock in an aggregate amount of $456 or $79.75 per share, including $91, or $15.95 per share, related to distributions declared in 2017. During the years ended December 31, 2017 and 2016, the Company accrued or paid cash dividend distributions to holders of its Series AA Preferred Stock of $365 or $63.80 per share.

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Notes to Consolidated Financial Statements

(Dollars in thousands, except share and per share data)

(k) Earnings Per Share

The calculation of basic earnings per share excludes any dilutive effect of stock options, while diluted earnings per share includes the dilutive effect of stock options. For the years ended December 31, 2018, 2017 and 2016 there were no dilutive shares excluded from the calculation.

(l) Stock Based Compensation

Compensation expense for share-based awards is recognized based on the grant date fair value of those awards. Stock-based compensation expense includes an estimate for pre-vesting forfeitures and is recognized over the requisite service periods of the awards on a straight-line basis, which is generally commensurate with the vesting term. Non-cash compensation expense recognized during the years ended December 31, 2018, 2017, and 2016 were $29,443, $9,599 and $28,560, respectively. The $29,443 expensed during the year ended December 31, 2018 consists of (i) $3,644 related to stock options, (ii) $25,427 related to stock grants made under the Company’s performance-based stock incentive program in 2018 and (iii) $372 related to stock awards to directors. See Note 15 for information on the assumptions used to calculate the fair value of stock-based compensation.

(m) Cash and Cash Equivalents

The Company considers all highly-liquid investments with original maturities of three months or less to be cash equivalents.

(n) Foreign Currency Translation

Local currencies generally are considered the functional currencies outside the United States. Assets and liabilities for operations in local-currency environments are translated at year-end exchange rates. Income and expense items are translated at average rates of exchange prevailing during the year. Foreign currency translation adjustments are recorded as a component of other comprehensive income (loss) in the Consolidated Statements of Income and Comprehensive Income and as a component of accumulated comprehensive income (loss) in the Consolidated Statements of Stockholders’ Equity.

(o) Asset Retirement Obligations

The Company is required to record the fair value of obligations associated with the retirement of tangible long-lived assets in the period in which it is incurred. The liability is capitalized as part of the related long-lived asset’s carrying amount. Over time, accretion of the liability is recognized as an operating expense and the capitalized cost is depreciated over the expected useful life of the related asset. The Company’s asset retirement obligations relate primarily to the dismantlement, removal, site reclamation and similar activities of its leased properties.

(p) Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

(q) Comprehensive Income

Total comprehensive income is presented in the Consolidated Statements of Income and Comprehensive Income and the components of accumulated comprehensive income (loss) are presented in the Consolidated Statements of Stockholders’ Equity. Comprehensive income (loss) is composed of foreign currency translation effects.

(r) Fair Value Measurements

The Company determines the fair value of its financial instruments using the fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.

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Notes to Consolidated Financial Statements

(Dollars in thousands, except share and per share data)

(s) Subsequent Events

The Company has performed an evaluation of subsequent events through the date on which the financial statements are issued.

(t) Reclassification of prior amounts

Certain amounts in the prior years’ consolidated balance sheet have been reclassified to conform to the current year presentation.

(2) Revenue

On January 1, 2018, we adopted FASB Accounting Standards Update (“ASU”) No. 2014-09 (Codified as ASC 606), Revenue from Contracts with Customers using the cumulative effect transition method applied to those contracts which were not completed as of January 1, 2018 and are not accounted for under ASC 840, Leases.  Results for reporting periods beginning after January 1, 2018 are presented under ASC 606 or 840, while comparative information has not been adjusted and continues to be reported under ASC 605.

A majority of our billboard, logo, and transit space contracts are accounted for under ASC 840 and will continue to be accounted for under the topic until January 1, 2019, our adoption date of ASU No. 2016-02 (Codified as ASC 842), Leases. Contracts which begin prior to January 1, 2019 and are accounted for under ASC 840 will continue to be accounted for as a lease until the contract ends or is modified. Contracts beginning or modified on or after January 1, 2019 which do not meet the criteria of a lease under ASC 842 will be accounted for under ASC 606, Revenue. The majority of our advertising space contracts will not meet the definition of a lease under ASC 842.

Revenue Recognition

Advertising revenues:  The majority of our revenues are derived from contracts for advertising space on billboard, logo and transit displays and are currently accounted for under ASC 840, Leases.  Upon the Company’s adoption of ASC 842, Leases the majority of our contracts for advertising space will transition to being accounted for under ASC 606, Revenue. The contract revenues, under ASC 840, Leases and ASC 606, Revenue, are recognized ratably over their contract life.

Other revenues:  Our other component of revenue primarily consists of production services which includes creating and printing the advertising copy.  As of January 1, 2018 revenue for production contracts is recognized under ASC 606. Contract revenues for production services are recognized upon satisfaction of the contract which is typically less than one week.

Arrangements with multiple performance obligations:  Our contracts with customers may include multiple performance obligations.  For such arrangements, we allocate revenue to each performance obligation based on the relative standalone selling price.  We determine standalone selling prices based on the prices charged to customers using expected cost plus margin.

Deferred revenues:  We record deferred revenues when cash payments are received or due in advance of our performance obligation. The term between invoicing and when a payment is due is not significant.  For certain services we require payment before the product or services are delivered to the customer.  The balance of deferred income is considered short-term and will be recognized in revenue within twelve months.

Practical expedients and exemptions: Upon our transition to ASC 606 from ASC 840, the Company plans to utilize the following practical expedients and exemptions from ASC 606.  We generally expense sales commissions when incurred because the amortization period is one year or less. These costs are recorded within direct advertising expense (exclusive of depreciation and amortization).  We do not disclose the value of unsatisfied performance obligations as the majority of our contracts with customers have an original expected length of less than one year. For contracts with customers which exceed one year, the future amount to be invoiced to the customer corresponds directly with the value to be received by the customer.

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Notes to Consolidated Financial Statements

(Dollars in thousands, except share and per share data)

The following table presents our disaggregated revenue by source including both revenues accounted for under ASC 840 and ASC 606 for the years ended December 31, 2018, 2017 and 2016.

	2018		2017		2016
Billboard Advertising	$	1,412,978	$	1,340,422	$	1,311,861
Logo Advertising		84,424		82,936		80,533
Transit Advertising		129,820		117,902		107,900
Net Revenues	$	1,627,222	$	1,541,260	$	1,500,294

(3) Acquisitions

Year Ended December 31, 2018

During the twelve months ended December 31, 2018, the Company completed several acquisitions of outdoor advertising assets for a total purchase price of $489,671, net of acquired cash of $8,554. The total purchase price consisted of the issuance of 163,137 shares of its Class A common stock for $12,282 and cash of $477,389. The purchases included the acquisition of assets in five U.S markets from Fairway Outdoor Advertising (“Fairway”) on December 21, 2018 for an aggregate purchase price of $418,500.

As of December 31, 2018, our fair value allocation of the assets acquired and liabilities assumed from Fairway is considered preliminary and is subject to revision, which may result in adjustments to this allocation. We expect to finalize these amounts as soon as possible but not later than the end of 2019. In order to develop our preliminary fair values, the Company utilized asset information received from Fairway and fair value allocation benchmarks from similar completed transactions. Our preliminary allocation of Fairway includes property, plant and equipment, intangibles and goodwill of $91,173, $156,319 and $182,117, respectively.

Each of these acquisitions was accounted for under the acquisition method of accounting, and, accordingly, the accompanying consolidated financial statements include the results of operations of each acquired entity from the date of acquisition. The acquisition costs have been allocated to assets acquired and liabilities assumed based on fair market value at the dates of acquisition.

The following is a summary of the allocation of the acquisition costs in the above transactions, excluding the preliminary allocation of Fairway.

	Total
Property, plant and equipment	$	8,648
Site locations		57,105
Non-competition agreements		342
Customer lists and contracts		6,521
Asset acquisition costs		336
Current assets		1,041
Current liabilities		(355	)
	$	73,638

Total acquired intangible assets for the year ended December 31, 2018 were $402,740, of which $182,117 was assigned to goodwill. Goodwill is not amortized for financial statement purposes, and no goodwill related to 2018 acquisitions is expected to be deductible for tax purposes. The remaining $220,623 of acquired intangible assets have a weighted average useful life of approximately 14 years. The intangible assets include customer lists and contracts of $33,310 (7 year weighted average useful life) and site locations of $186,635 (15 year weighted average useful life). The aggregate amortization expense related to the 2018 acquisitions for the year ended December 31, 2018 was approximately $2,681.

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Notes to Consolidated Financial Statements

(Dollars in thousands, except share and per share data)

The following unaudited pro forma financial information for the Company gives effect to the 2018 and 2017 acquisitions as if they had occurred on January 1, 2017. These pro forma results do not purport to be indicative of the results of operations which actually would have resulted had the acquisitions occurred on such date or to project the Company’s results of operations for any future period.

	2018		2017
	(unaudited)
Net revenues	$	1,699,052	$	1,647,445
Net income applicable to common stock	$	299,493	$	306,900
Net income per common share — basic	$	3.03	$	3.13
Net income per common share — diluted	$	3.02	$	3.12

Year Ended December 31, 2017

During the twelve months ended December 31, 2017, the Company completed several acquisitions of outdoor advertising assets for a total purchase price of $300,185, of which $297,305 was in cash and $2,880 in non-cash consideration consisting principally of exchanges of outdoor advertising assets. As a result of the acquisitions, a gain of $2,389 was recorded for transactions which involved the exchanges of outdoor advertising assets during the year ended December 31, 2017.

Each of these acquisitions was accounted for under the acquisition method of accounting, and, accordingly, the accompanying consolidated financial statements include the results of operations of each acquired entity from the date of acquisition. The acquisition costs have been allocated to assets acquired and liabilities assumed based on fair market value at the dates of acquisition. The following is a summary of the allocation of the acquisition costs in the above transactions.

	Total
Property, plant and equipment	$	43,483
Goodwill		13,925
Site locations		216,510
Non-competition agreements		826
Customer lists and contracts		26,397
Asset acquisition costs		529
Current assets		3,583
Current liabilities		(1,733	)
Long–term liabilities		(3,335	)
	$	300,185

Total acquired intangible assets for the year ended December 31, 2017 were $258,187, of which $13,925 was assigned to goodwill. Goodwill is not amortized for financial statement purposes, and no goodwill related to 2017 acquisitions is expected to be deductible for tax purposes. The remaining $244,262 of acquired intangible assets have a weighted average useful life of approximately 14 years. The intangible assets include customer lists and contracts of $26,397 (7 year weighted average useful life) and site locations of $216,510 (15 year weighted average useful life). The aggregate amortization expense related to the 2017 acquisitions for the year ended December 31, 2017 was approximately $6,106.

The following unaudited pro forma financial information for the Company gives effect to the 2017 and 2016 acquisitions as if they had occurred on January 1, 2016. These pro forma results do not purport to be indicative of the results of operations which actually would have resulted had the acquisitions occurred on such date or to project the Company’s results of operations for any future period.

	2017		2016
	(unaudited)
Net revenues	$	1,572,989	$	1,554,758
Net income applicable to common stock	$	318,200	$	297,518
Net income per common share — basic	$	3.25	$	3.06
Net income per common share — diluted	$	3.23	$	3.05

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Notes to Consolidated Financial Statements

(Dollars in thousands, except share and per share data)

(4) Non-cash Financing and Investing Activities

For the year ended December 31, 2018, the Company had non-cash investing activities for the issuance of 163,137 shares of its Class A common stock related to acquisition purchases. The issuance had an approximate value of $12,282. For the years ended December 31, 2017 and 2016, the Company had $2,879 and $9,000 non-cash investing activities related to capital expenditures and acquisitions of outdoor advertising assets, respectively. During the year ended December 31, 2017, the Company had non-cash financing activity related to declared distributions of $81,625 which were paid to shareholders in January 2018. There were no significant non-cash financing activities during the years ended December 31, 2018 and 2016.

(5) Property, Plant and Equipment

Major categories of property, plant and equipment at December 31, 2018 and 2017 are as follows:

	Estimated Life (Years)		2018		2017
Land		—	$	384,264	$	369,690
Building and improvements	10 — 39			173,306		160,494
Advertising structures	5 — 15			2,817,170		2,704,356
Automotive and other equipment	3 — 7			150,985		150,183
			$	3,525,725	$	3,384,723

(6) Goodwill and Other Intangible Assets

The following is a summary of intangible assets at December 31, 2018 and December 31, 2017:

	Estimated		2018				2017
	Life (Years)		Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Amortizable Intangible Assets:
Customer lists and contracts	7 — 10		$	610,376	$	514,928	$	586,055	$	505,778
Non-competition agreements	3 — 15			65,771		64,119		65,477		63,924
Site locations		15		2,228,767		1,422,794		2,072,059		1,372,954
Other	2 — 15			45,992		33,612		45,741		30,328
			$	2,950,906	$	2,035,453	$	2,769,332	$	1,972,984
Unamortizable Intangible Assets:
Goodwill			$	2,172,922	$	253,536	$	1,993,990	$	253,536

The changes in the gross carrying amount of goodwill for the year ended December 31, 2018 are as follows:

Balance as of December 31, 2017	$	1,993,990
Goodwill acquired during the year		182,117
Purchase price adjustments and other		(3,185	)
Impairment losses		—
Balance as of December 31, 2018	$	2,172,922

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Notes to Consolidated Financial Statements

(Dollars in thousands, except share and per share data)

Amortization expense for the years ended December 31, 2018, 2017 and 2016 was $95,010, $85,257 and $80,864, respectively. The following is a summary of the estimated amortization expense for future years:

2019	$	103,754
2020		93,200
2021		89,240
2022		84,410
2023		73,552
Thereafter		471,297
Total	$	915,453

(7) Leases

The Company is party to various operating leases for production facilities, vehicles and sites upon which advertising structures are built. The leases expire at various dates, and have varying options to renew and to cancel and may contain escalation provisions. The following is a summary of minimum annual rental payments required under those operating leases that have original or remaining lease terms in excess of one year as of December 31, 2018:

2019	$	254,866
2020	$	188,138
2021	$	165,642
2022	$	144,814
2023	$	122,814
Thereafter	$	819,004

Rental expense related to the Company’s operating leases was $381,890, $366,892 and $350,135 for the years ended December 31, 2018, 2017 and 2016, respectively.

(8) Accrued Expenses

The following is a summary of accrued expenses at December 31, 2018 and 2017:

	2018		2017
Payroll	$	20,667	$	14,962
Interest		27,067		38,967
Insurance benefits		12,633		13,393
Accrued lease expense		36,158		37,073
Stock-based compensation		19,211		4,793
Distributions payable		—		81,625
Other		6,731		6,862
	$	122,467	$	197,675

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Notes to Consolidated Financial Statements

(Dollars in thousands, except share and per share data)

(9) Long-term Debt

Long-term debt consists of the following at December 31, 2018 and 2017:

	December 31, 2018
	Debt			Deferred financing costs			Debt, net of deferred financing costs
Senior Credit Facility	$	1,291,088		$	11,576		$	1,279,512
Accounts Receivable Securitization Program		175,000			1,168			173,832
5% Senior Subordinated Notes		535,000			4,104			530,896
5 3/8% Senior Notes		510,000			4,262			505,738
5 3/4% Senior Notes		400,000			4,754			395,246
Other notes with various rates and terms		3,464			—			3,464
		2,914,552			25,864			2,888,688
Less current maturities		(209,365	)		(5,245	)		(204,120	)
Long-term debt, excluding current maturities	$	2,705,187		$	20,619		$	2,684,568
	December 31, 2017
	Debt			Deferred financing costs			Debt, net of deferred financing costs
Senior Credit Facility	$	636,750		$	7,689		$	629,061
5 7/8% Senior Subordinated Notes		500,000			5,850			494,150
5% Senior Subordinated Notes		535,000			4,927			530,073
5 3/8% Senior Notes		510,000			4,982			505,018
5 3/4% Senior Notes		400,000			5,271			394,729
Other notes with various rates and terms		3,659			—			3,659
		2,585,409			28,719			2,556,690
Less current maturities		(22,797	)		(5,133	)		(17,664	)
Long-term debt, excluding current maturities	$	2,562,612		$	23,586		$	2,539,026

Long-term debt contractual maturities are as follows:

	Debt		Deferred financing costs		Debt, net of deferred financing costs
2019	$	34,365	$	5,245	$	29,120
2020	$	56,881	$	5,368	$	51,513
2021	$	248,773	$	5,498	$	243,275
2022	$	556,256	$	4,064	$	552,192
2023	$	541,275	$	2,900	$	538,375
Later years	$	1,477,002	$	2,789	$	1,474,213

Senior Credit Facility

Lamar Media’s Third Amended and Restated Credit Agreement dated as of May 15, 2017 (as amended, the “senior credit facility”) originally consisted of (i) a $450,000 senior secured revolving credit facility which will mature on May 15, 2022 (the “revolving credit facility”), (ii) a $450,000 Term A loan facility (the “Term A loans”)  which will mature on May 15, 2022, and (iii) an incremental facility pursuant to which Lamar Media may incur additional term loan tranches or increase its revolving credit facility subject to pro forma compliance with the secured debt ratio financial maintenance covenant (the “Incremental Facility”). Lamar Media borrowed all $450,000 in Term A loans on May 15, 2017.  The net proceeds of the Term A loans, together with borrowing under the

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Notes to Consolidated Financial Statements

(Dollars in thousands, except share and per share data)

revolving portion of senior credit facility and cash on hand, were used to repay all outstanding amounts under the existing senior credit facility, and all revolving commitments under that facility were terminated.

On March 16, 2018, Lamar Media entered into Amendment No. 1 to the Third Amended and Restated Credit Agreement dated May 15, 2017, which amended the existing senior credit facility to establish a new $600,000 Term B Loan Facility (the “Term B loan”), which will mature on March 16, 2025.  Lamar Media borrowed the full amount of the Term B loan on March 16, 2018.  The proceeds from the Term B loan, together with available cash on hand were used to redeem in full Lamar Media’s 5 7/8% Senior Subordinated Notes due 2022.   

As of December 31, 2018, the senior credit facility consisted of (i) the revolving credit facility, (ii) the Term A loans, (iii) the Term B loans and (iv) the Incremental Facility.  

The Term A loans mature on May 15, 2022 and the Term B loans mature on March 16, 2025.  The remaining quarterly installments are scheduled to be paid on each March 31, June 30, September 30 and December 31 as follows:

Principal Payment Date	Term A		Term B
March 31, 2019-June 30, 2019	$	5,625	$	1,500
September 30, 2019-June 30, 2020	$	8,438	$	1,500
September 30, 2020-March 31, 2022	$	16,875	$	1,500
Term A Loan Maturity May 15, 2022	$	253,125	$	—
June 30, 2022-December 31, 2024	$	—	$	1,500
Term B Loan Maturity March 16, 2025	$	—	$	559,500

The Term loans bear interest at rates based on the Adjusted LIBO Rate (“Eurodollar term loans”) or the Adjusted Base Rate (“Base Rate term loans”), at Lamar Media’s option. Eurodollar term loans bear interest at a rate per annum equal to the Adjusted LIBO Rate plus 1.75%; (or the Adjusted LIBO Rate plus 1.50% at any time the Total Debt Ratio is less than or equal to 3.25 to 1 for Term A loans only). Base Rate term loans bear interest at a rate per annum equal to the Adjusted Base Rate plus 0.75% (or the Adjusted Base Rate plus 0.50% at any time the Total Debt Ratio is less than or equal to 3.25 to 1 for Term A loans only). The revolving credit facility bears interest at rates based on the Adjusted LIBO Rate (“Eurodollar revolving loans”) or the Adjusted Base Rate (“Base Rate revolving loans”), at Lamar Media’s option. Eurodollar revolving loans bear interest at a rate per annum equal to the Adjusted LIBO Rate plus 2.25% (or the Adjusted LIBO Rate plus 2.00% at any time the Total Debt Ratio is less than or equal to 4.25 to 1; or the Adjusted LIBO Rate plus 1.75% at any time the Total Debt Ratio is less than or equal to 3.00 to 1). Base Rate revolving Loans bear interest at a rate per annum equal to the Adjusted Base Rate plus 1.25% (or the Adjusted Base Rate plus 1.0% at any time the total debt ratio is less than or equal to 4.25 to 1, or the Adjusted Base Rate plus 0.75% at any time the Total Debt Ratio is less than or equal to 3.00 to 1). The guarantees, covenants, events of default and other terms of the senior credit facility apply to the Term A and B loans and revolving credit facility.

As of December 31, 2018, there was $280,000 outstanding under the revolving credit facility. Availability under the revolving facility is reduced by the amount of any letters of credit outstanding. Lamar Media had $13,183 letters of credit outstanding as of December 31, 2018 resulting in $156,817 of availability under its revolving facility. Revolving credit loans may be requested under the revolving credit facility at any time prior to its maturity on May 15, 2022.

The terms of Lamar Media’s senior credit facility and the indentures relating to Lamar Media’s outstanding notes restrict, among other things, the ability of Lamar Advertising and Lamar Media to:

• dispose of assets;

• incur or repay debt;

• create liens;

• make investments; and

• pay dividends.

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Notes to Consolidated Financial Statements

(Dollars in thousands, except share and per share data)

The senior credit facility contains provisions that would allow Lamar Media to conduct its affairs in a manner that would allow Lamar Advertising to qualify and remain qualified as a REIT, including by allowing Lamar Media to make distributions to Lamar Advertising required for the Company to qualify and remain qualified for taxation as a REIT, subject to certain restrictions.

Lamar Media’s ability to make distributions to Lamar Advertising is also restricted under the terms of these agreements. Under Lamar Media’s senior credit facility the Company must maintain a specified senior debt ratio at all times and in addition, must satisfy a total debt ratio in order to incur debt, make distributions or make certain investments.

Lamar Advertising and Lamar Media were in compliance with all of the terms of their indentures and the applicable senior credit agreement provisions during the periods presented.

Accounts Receivable Securitization Program

On December 18, 2018 Lamar Media entered into a $175,000 Receivable Financing Agreement (the “AR Program”) with its wholly-owned special purpose entities, Lamar QRS Receivables, LLC and Lamar TRS Receivables, LLC (the “Special Purpose Subsidiaries”) maturing on December 17, 2021.  The AR Program is limited to the availability of eligible accounts receivable collateralizing the borrowings under the agreements governing the AR Program.

Pursuant to two separate Purchase and Sale Agreements dated December 18, 2018, each of which is among Lamar Media as initial Servicer, certain of Lamar Media’s subsidiaries and a Special Purpose Subsidiary, the subsidiaries sold substantially all of their existing and future accounts receivable balances to the Special Purpose Subsidiaries. The Special Purpose Subsidiaries use the accounts receivable balances to collateralize loans pursuant to the AR Program. Lamar Media retains the responsibility of servicing the accounts receivable balances pledged as collateral under the AR Program and provides a performance guaranty.

As of December 31, 2018 there was $175,000 outstanding on the AR Program bearing interest at approximately 3.4%. Proceeds from the AR Program were used primarily to repay outstanding amounts under our revolving credit facility. The commitment fee based on the amount of unused commitments under the AR Program was immaterial in 2018.

The AR Program is accounted for as a collateralized financing activity, rather than a sale of assets, and therefore: (i) accounts receivable balances pledged as collateral are presented as assets and the borrowings are presented as liabilities on our Consolidated Balance Sheets, (ii) our Consolidated Statements of Income and Comprehensive Income reflect the associated charges for bad debt expense (a component of general and administrative expenses) related to the pledged accounts receivable and interest expense associated with the collateralized borrowings and (iii) receipts from customers related to the underlying accounts receivable are reflected as operating cash flows and borrowings and repayments under the collateralized loans are reflected as financing cash flows within our Consolidated Statements of Cash Flows.

5 7/8% Senior Subordinated Notes

On February 9, 2012, Lamar Media completed an institutional private placement of $500,000 aggregate principal amount of 5 7/8% Senior Subordinated Notes, due 2022 (the “5 7/8% Senior Subordinated Notes”). The institutional private placement resulted in net proceeds to Lamar Media of approximately $489,000. The Company used the proceeds from the Term B loans to redeem all of the 5 7/8% Notes on March 19, 2018 at a redemption price of 101.958% of the aggregate principal amount of the outstanding 5 7/8% Notes, plus accrued and unpaid interest up to but not including the redemption date. In conjunction with the redemption the Company recorded a loss on debt extinguishment of $15,429, of which $9,790 was cash, for the year ended December 31, 2018.

5% Senior Subordinated Notes

On October 30, 2012, Lamar Media completed an institutional private placement of $535,000 aggregate principal amount of 5% Senior Subordinated Notes due 2023 (the “5% Senior Subordinated Notes”). The institutional private placement resulted in net proceeds to Lamar Media of approximately $527,100.

Lamar Media may redeem the 5% Senior Subordinated Notes, in whole or in part, in cash at redemption prices specified in the 5% Senior Subordinated Notes. In addition, if the Company or Lamar Media undergoes a change of control, Lamar Media may be required to make an offer to purchase each holder’s 5% Senior Subordinated Notes at a price equal to 101% of the principal amount of the 5% Senior Subordinated Notes, plus accrued and unpaid interest, up to but not including the repurchase date.

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Notes to Consolidated Financial Statements

(Dollars in thousands, except share and per share data)

5 3/8% Senior Notes

On January 10, 2014, Lamar Media completed an institutional private placement of $510,000 aggregate principal amount of 5 3/8% Senior Notes due 2024 (the “5 3/8% Senior Notes”). The institutional private placement resulted in net proceeds to Lamar Media of approximately $502,300.

    At any time prior to January 15, 2019, Lamar Media may redeem some or all of the 5 3/8% Senior Notes at a price equal to 100% of the aggregate principal amount, plus accrued and unpaid interest thereon and a make-whole premium. On or after January 15, 2019, Lamar Media may redeem the 5 3/8% Senior Notes, in whole or in part, in cash at redemption prices specified in the 5 3/8% Senior Notes. In addition, if the Company or Lamar Media undergoes a change of control, Lamar Media may be required to make an offer to purchase each holder’s 5 3/8% Senior Notes at a price equal to 101% of the principal amount of the 5 3/8% Senior Notes, plus accrued and unpaid interest, up to but not including the repurchase date.

5 3/4% Senior Notes

On January 28, 2016, Lamar Media completed an institutional private placement of $400,000 aggregate principal amount of 5 3/4% Senior Notes due 2026 (the “5 3/4 % Senior Notes”). The institutional private placement resulted in net proceeds to Lamar Media of approximately $394,500.

Lamar Media may redeem up to 35% of the aggregate principal amount of the 5 3/4% Senior Notes, at any time and from time to time, at a price equal to 105.750% of the aggregate principal amount so redeemed, plus accrued and unpaid interest thereon, with the net cash proceeds of certain public equity offerings completed before February 1, 2019, provided that following the redemption, at least 65% of the 5 3/4%  Senior Notes that were originally issued remain outstanding and any such redemption occurs within 120 days following the closing of any such public equity offering. At any time prior to February 1, 2021, Lamar Media may redeem some or all of the 5 3/4% Senior Notes at a price equal to 100% of the aggregate principal amount, plus accrued and unpaid interest thereon plus a make-whole premium. On or after February 1, 2021, Lamar Media may redeem the 5 3/4% Senior Notes, in whole or in part, in cash at redemption prices specified in the 5 3/4% Senior Notes. In addition, if the Company or Lamar Media undergoes a change of control, Lamar Media may be required to make an offer to purchase each holder’s 5 3/4% Senior Notes at a price equal to 101% of the principal amount of the 5 3/4% Senior Notes, plus accrued and unpaid interest, up to but not including the repurchase date.

(10) Asset Retirement Obligation

The Company’s asset retirement obligation includes the costs associated with the removal of its structures, resurfacing of the land and retirement cost, if applicable, related to the Company’s outdoor advertising portfolio. The following table reflects information related to our asset retirement obligations:

Balance at December 31, 2016	$	210,889
Additions to asset retirement obligations		4,003
Accretion expense		4,236
Liabilities settled		(4,039	)
Balance at December 31, 2017	$	215,089
Additions to asset retirement obligations		7,583
Accretion expense		4,404
Liabilities settled		(4,087	)
Balance at December 31, 2018	$	222,989

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Notes to Consolidated Financial Statements

(Dollars in thousands, except share and per share data)

(11) Depreciation and Amortization

The Company includes all categories of depreciation and amortization on a separate line in its Statements of Income. The amounts of depreciation and amortization expense excluded from the following operating expenses in its Statements of Income are:

	Year Ended December 31,
	2018		2017		2016
Direct expenses	$	212,585	$	196,107	$	191,169
General and administrative expenses		4,134		4,151		3,650
Corporate expenses		8,542		10,846		10,139
	$	225,261	$	211,104	$	204,958

(12) Income Taxes

Commencing January 1, 2014, the Company began operating as a REIT for U.S. income tax purposes. Since operating as a REIT, the Company filed, and intends to continue to file, as a REIT, and its TRSs filed, and intend to continue to file, as C corporations. The Company also files tax returns in various states and countries. The Company’s state tax returns reflect different combinations of the Company’s subsidiaries and are dependent on the connection each subsidiary has with a particular state. The following information pertains to the Company’s income taxes on a consolidated basis.

On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (the “TCJA”) was signed into law, making significant changes to the Internal Revenue Code.  As a result of the TCJA, a tax benefit of $3,372 and $466 was recorded to current tax expense and deferred tax expense, respectively, for the year ended December 31, 2017.

Income tax expense (benefit) consists of the following:

	Current		Deferred			Total
Year ended December 31, 2018:
U.S. federal	$	4,952	$	435		$	5,387
State and local		2,615		(123	)		2,492
Foreign		1,592		1,226			2,818
	$	9,159	$	1,538		$	10,697
Year ended December 31, 2017:
U.S. federal	$	4,174	$	359		$	4,533
State and local		2,706		(170	)		2,536
Foreign		1,546		615			2,161
	$	8,426	$	804		$	9,230
Year ended December 31, 2016:
U.S. federal	$	9,518	$	(935	)	$	8,583
State and local		2,681		(6	)		2,675
Foreign		1,500		598			2,098
	$	13,699	$	(343	)	$	13,356

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Notes to Consolidated Financial Statements

(Dollars in thousands, except share and per share data)

 As of December 31, 2018 and 2017, the Company had income taxes (payable) receivable of $(458) and $3,106, respectively.

The U.S. and foreign components of earnings before income taxes are as follows:

	2018			2017			2016
U.S.	$	317,695		$	332,607		$	313,429
Foreign		(1,766	)		(5,701	)		(1,264	)
Total	$	315,929		$	326,906		$	312,165

A reconciliation of significant differences between the reported amount of income tax expense and the expected amount of income tax expense that would result from applying the U.S. federal statutory income tax rate of 21 percent to income before taxes for the 2018 tax year and 35 percent for the 2017 and 2016 tax years, is as follows:

	2018			2017			2016
Income tax expense at U.S. federal statutory rate	$	66,345		$	114,417		$	109,257
Tax adjustment related to REIT(a)		(63,669	)		(109,294	)		(101,868	)
State and local income taxes, net of federal income    tax benefit		1,461			1,193			1,481
Book expenses not deductible for tax purposes		1,926			2,635			2,465
Stock-based compensation		1,090			(121	)		169
Valuation allowance(b)		3,813			3,953			2,340
Rate change(c)		(80	)		(466	)		(19	)
Undistributed earnings of foreign subsidiaries(d)		(393	)		1,363			—
Minimum tax credit refundable(e)		—			(4,108	)		—
Other differences, net(f)		204			(342	)		(469	)
Income tax expense	$	10,697		$	9,230		$	13,356

^(a) Includes dividend paid deduction of $69,818, $110,442 and $102,888 for the tax years ended December 31, 2018, 2017 and 2016, respectively.

^(b) For the years ended December 31, 2018, 2017 and 2016, a non-cash valuation allowance of $3,813, $3,953 and $2,340, respectively, was recorded to income tax expense due to our limited ability to utilize Puerto Rico deferred tax assets in future years.

^(c) Under the TCJA, the U.S. corporate income tax rate was lowered from 35% to 21%.  As a result, a non-cash benefit of $466 to income tax expense was recorded for the reduction of the U.S. net deferred tax liability for the year ended December 31, 2017.

^(d) In periods prior to December 31, 2017, the undistributed earnings of our Canadian subsidiaries were designated as permanently reinvested.  As of December 31, 2017, however, management did not assert that the undistributed earnings of our Canadian subsidiaries will be permanently reinvested.  For the years ended December 31, 2018 and 2017, we recognized a deferred tax (benefit) charge of $(393) and $1,363, respectively, for future foreign withholding taxes related to undistributed earnings.

^(e) Under the TCJA, the corporate alternative minimum tax was repealed and any minimum tax carryforwards not utilized become fully refundable in 2021.  The Company does not expect to utilize its minimum tax credit carryforward. As a result, a cash benefit of $4,108 to income tax expense was recorded for the year ended December 31, 2017.

^(f) Upon enactment, the TCJA includes a one-time transition tax on the mandatory deemed repatriation of cumulative foreign earnings, net of foreign tax credits. As a result, a cash charge of $736 to income tax expense was recorded for the year ended December 31, 2017.

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Notes to Consolidated Financial Statements

(Dollars in thousands, except share and per share data)

The tax effect of temporary differences that give rise to significant portions of the deferred tax assets and (liabilities) are presented below:

	2018			2017
Deferred tax assets:
Allowance for doubtful accounts	$	654		$	709
Accrued liabilities not deducted for tax purposes		7,022			3,648
Asset retirement obligation		—			124
Net operating loss carry forwards		34,716			18,617
Tax credit carry forwards		320			153
Charitable contributions carry forward		47			7
Property, plant and equipment		—			2,300
Investment in partnerships		—			240
Gross deferred tax assets		42,759			25,798
Less: valuation allowance		(23,934	)		(20,120	)
Net deferred tax assets		18,825			5,678
Deferred tax liabilities:
Intangibles		(6,565	)		(5,199	)
Investment in partnerships		(31,746	)		—
Property, plant and equipment		(366	)		—
Undistributed earnings of foreign subsidiaries		(882	)		(1,363	)
Gross deferred tax liabilities		(39,559	)		(6,562	)
Net deferred tax liabilities	$	(20,734	)	$	(884	)

As of December 31, 2018, we have approximately $285,126 of U.S. net operating loss carry forwards to offset future taxable income. Of this amount, $63,716 is subject to Internal Revenue Code §382 limitation but will be available to be fully utilized by no later than 2032. These carry forwards expire between 2029 through 2032. In addition, we have $4,799 of various credits available to offset future U.S. federal income tax. Under the TCJA, the corporate alternative minimum tax was repealed and any minimum tax credit carryforwards not utilized become fully refundable in 2021. We do not expect to utilize our minimum tax credit of $4,108 before 2021.

As of December 31, 2018 we have approximately $724,635 of state net operating loss carry forwards before valuation allowances. These state net operating losses are available to reduce future taxable income and expire at various times and amounts. In addition, we have $190 of various credits available to offset future state income tax. There was no valuation allowance related to state net operating loss carry forwards as of December 31, 2018 and 2017. There were no net changes in the total state valuation allowance for the years ended December 31, 2018 and 2017.   

During 2018, we generated $7,377 of Puerto Rico net operating losses. As of December 31, 2018, we had approximately $51,642 of Puerto Rico net operating loss carry forwards before valuation allowances. These Puerto Rico net operating losses are available to offset future taxable income. These carry forwards expire between 2019 and 2028. In addition, we have $153 of alternative minimum tax credits available to offset future Puerto Rico income tax.

In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income in those jurisdictions during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities (including the impact of available carry back and carry forward periods), projected future taxable income, and tax-planning strategies in making this assessment. In order to fully realize the deferred tax assets, the Company will need to generate future taxable income before the expiration of the carry forwards governed by the tax code. Based on the current level of pretax earnings, the Company will not generate the minimum amount of future taxable income to support the realization of the deferred tax assets. As a result, management has determined that a valuation allowance related to Puerto Rico net operating loss carry forwards and other deferred tax assets is necessary. The valuation allowance for these deferred tax assets as of December 31, 2018 and 2017 was $23,934 and $20,120, respectively. The net change in the total valuation allowance for the years ended December 31, 2018 and 2017 was an increase of $3,814 and $3,953, respectively. The amount of the deferred tax asset

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Notes to Consolidated Financial Statements

(Dollars in thousands, except share and per share data)

considered realizable, however, could be adjusted in the near term if estimates of future taxable income during the carry forward period increase.

As of December 31, 2018, the Company has accumulated undistributed earnings generated by our foreign subsidiaries of approximately $22,528. Management does not designate these earnings as permanently reinvested and has recognized a deferred tax liability of approximately $882 related to foreign withholding taxes on these earnings. We have recognized a current year tax expense of $234 related to 2018 earnings and a tax benefit of $(635) related to prior year earnings repatriated in 2018.

Under ASC 740 Income Taxes, we provide for uncertain tax positions, and the related interest, and adjust recognized tax benefits and accrued interest accordingly. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

Balance as of December 31, 2016	$	772
Additions for tax positions related to current year		1,122
Additions for tax positions related to prior years		173
Reductions for tax positions related to prior years		—
Lapse of statute of limitations		—
Settlements		—
Balance as of December 31, 2017	$	2,067
Additions for tax positions related to current year		932
Additions for tax positions related to prior years		238
Reductions for tax positions related to prior years		—
Lapse of statute of limitations		(30	)
Settlements		—
Balance as of December 31, 2018	$	3,207

Included in the balance of unrecognized benefits at December 31, 2018 is $3,207 of tax benefits that, if recognized in future periods, would impact our effective tax rate. During the years ended December 31, 2018 and 2017, we recognized interest and penalties of $411 and $213, respectively, as a component of income tax expense in connection with our liabilities related to uncertain tax positions.

Within the next twelve months, we expect to decrease our unrecognized tax benefits by approximately $112 as a result of the expiration of statute of limitations.

We are subject to income taxes in the U.S. and nearly all states. In addition, the Company is subject to income taxes in Canada and the Commonwealth of Puerto Rico. We are no longer subject to U.S federal income tax examinations by tax authorities for years prior to 2013, or for any U.S. state income tax audit prior to 2010. The Internal Revenue Service has completed a review of the 2013 income tax return. With respect to Canada and Puerto Rico, we are no longer subject to income tax audits for years before 2015 and 2014, respectively.

(13) Related Party Transactions

Affiliates, as used within these statements, are persons or entities that are affiliated with Lamar Advertising Company or its subsidiaries through common ownership and directorate control.  

The Company had receivables from employees of $80 at December 31, 2018. There were no receivables from employees at December 31, 2017. These receivables are primarily relocation loans for employees. The Company does not have any receivables from its current executive officers.

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Notes to Consolidated Financial Statements

(Dollars in thousands, except share and per share data)

(14) Stockholders’ Equity

On July 16, 1999, the Board of Directors designated 5,720 shares of the 1,000,000 shares of previously undesignated preferred stock, par value $.001, as Series AA preferred stock, which shares were subsequently exchanged on a one for one basis in the REIT conversion. The Series AA preferred stock ranks senior to the Class A common stock and Class B common stock with respect to dividends and upon liquidation. Holders of Series AA preferred stock are entitled to receive, on a pari passu basis, dividends at the rate of $15.95 per share per quarter when, as and if declared by the Board of Directors. The Series AA preferred stock is entitled to receive, on a pari passu basis, $638 plus a further amount equal to any dividend accrued and unpaid to the date of distribution before any payments are made or assets distributed to the Class A common stock or Class B stock upon voluntary or involuntary liquidation, dissolution or winding up of the Company. The liquidation value of the outstanding Series AA preferred stock at December 31, 2018 was $3,649. The Series AA preferred stock is entitled to one vote per share.

All of the outstanding shares of common stock are fully paid and nonassessable. In the event of the liquidation or dissolution of the Company, following any required distribution to the holders of outstanding shares of preferred stock, the holders of common stock are entitled to share pro rata in any balance of the corporate assets available for distribution to them. The Company may pay dividends if, when and as declared by the Board of Directors from funds legally available therefore, subject to the restrictions set forth in the Company’s existing indentures and the senior credit facility. Subject to the preferential rights of the holders of any class of preferred stock, holders of shares of common stock are entitled to receive such dividends as may be declared by the Company’s Board of Directors out of funds legally available for such purpose. No dividend may be declared or paid in cash or property on any share of either class of common stock unless simultaneously the same dividend is declared or paid on each share of the other class of common stock, provided that, in the event of stock dividends, holders of a specific class of common stock shall be entitled to receive only additional shares of such class.

The rights of the Class A and Class B common stock are equal in all respects, except holders of Class B common stock have ten votes per share on all matters in which the holders of common stock are entitled to vote and holders of Class A common stock have one vote per share on such matters. The Class B common stock will convert automatically into Class A common stock upon the sale or transfer to persons other than permitted transferees (as defined in the Company’s certificate of incorporation, as amended).

On December 11, 2014, the Company announced that its Board of Directors authorized the repurchase of up to $250,000 of the Company’s Class A common stock (the “repurchase program”). There were no repurchases under the repurchase program which expired on June 30, 2016.

On May 1, 2018, the Company entered into an equity distribution agreement (the “Sales Agreement”) with J.P. Morgan Securities LLC, Wells Fargo Securities LLC, and SunTrust Robinson Humphrey, Inc. as its sales agents (each a “Sales Agent”, and collectively, the “Sales Agents”). Under the terms of the Sales Agreement, the Company may, from time to time, issue and sell shares of its Class A common stock, par value $0.001 per share (the “Class A Common Stock”), having an aggregate offering price of up to $400,000, through the Sales Agents as either agents or principals. As of December 31, 2018, 576,002 shares of our Class A Common Stock have been sold under the Sales Agreement and accordingly $357,885 remains available to be sold under the Sales Agreement.

Sales of the Class A Common Stock, if any, may be made in negotiated transactions or transactions that are deemed to be “at-the-market offerings” as defined in Rule 415 under the Securities Act of 1933, as amended, including sales made directly on or through the Nasdaq Global Select Market and any other existing trading market for the Class A Common Stock, or sales made to or through a market maker other than on an exchange. The Company has no obligation to sell any of the Class A Common Stock under the Sales Agreement and may at any time suspend solicitations and offers under the Sales Agreement.

On August 6, 2018, the Company filed an automatically effective shelf registration statement that registered the offer and sale of an indeterminate amount of additional shares of our Class A common stock. As of December 31, 2018, the Company issued 163,137 shares of its Class A common stock in connection with acquisitions occurring during the period. The Company filed a prospectus supplement to the shelf registration statement relating to the offer and resale of such shares of Class A common stock.

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Notes to Consolidated Financial Statements

(Dollars in thousands, except share and per share data)

(15) Stock Compensation Plans

Equity Incentive Plan. Lamar’s 1996 Equity Incentive Plan, as amended, (the “1996 Plan”) has reserved 15.5 million shares of common stock for issuance to directors and employees, including options granted and common stock reserved for issuance under its performance-based incentive program. Options granted under the 1996 Plan expire ten years from the grant date with vesting terms ranging from three to five years which primarily includes 1) options that vest in one-fifth increments beginning on the grant date and continuing on each of the first four anniversaries of the grant date and 2) options that cliff-vest on the fifth anniversary of the grant date. All grants are made at fair market value based on the closing price of our Class A common stock as reported on the NASDAQ Global Select Market on the date of grant.

In February 2013, the 1996 Plan was amended to eliminate the provision that limited the amount of Class A common stock, including shares retained from an award, that could be withheld to satisfy tax withholding obligations to the minimum tax obligations required by law (except with respect to option awards). In accordance with ASC 718, Compensation – Stock Compensation, the Company is required to classify the awards affected by the amendment as liability-classified awards at fair value each period prior to their settlement. As of December 31, 2018 and 2017, the Company recorded a liability, in accrued expenses, of $19,211 and $4,793, respectively, related to its equity incentive awards affected by this amendment.

We use a Black-Scholes-Merton option pricing model to estimate the fair value of share-based awards. The Black-Scholes-Merton option pricing model incorporates various highly subjective assumptions, including expected term and expected volatility. We have reviewed our historical pattern of option exercises and have determined that meaningful differences in option exercise activity existed among vesting schedules. Therefore, for all stock options granted after January 1, 2006, we have categorized these awards into two groups of vesting 1) 5-year cliff vest and 2) 4-year graded vest, for valuation purposes. We have determined there were no meaningful differences in employee activity under our ESPP due to the nature of the plan.

We estimate the expected term of options granted using an implied life derived from the results of a hypothetical mid-point settlement scenario, which incorporates our historical exercise, expiration and post-vesting employment termination patterns, while accommodating for partial life cycle effects. We believe these estimates will approximate future behavior.

We estimate the expected volatility of our Class A common stock at the grant date using a blend of 90% historical volatility of our Class A common stock and 10% implied volatility of publicly traded options with maturities greater than six months on our Class A common stock as of the option grant date. Our decision to use a blend of historical and implied volatility was based upon the volume of actively traded options on our common stock and our belief that historical volatility alone may not be completely representative of future stock price trends.

Our risk-free interest rate assumption is determined using the Federal Reserve nominal rates for U.S. Treasury zero-coupon bonds with maturities similar to those of the expected term of the award being valued. We assumed an expected dividend yield of 5%.

We estimate option forfeitures at the time of grant and periodically revise those estimates in subsequent periods if actual forfeitures differ from those estimates. We record stock-based compensation expense only for those awards expected to vest using an estimated forfeiture rate based on our historical forfeiture data.

The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions used:

Grant Year	Dividend Yield	Expected Volatility	Risk Free Interest Rate	Expected Lives
2018	5%	46%	2%		6
2017	5%	45%	2%		6
2016	5%	45%	2%		6

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Notes to Consolidated Financial Statements

(Dollars in thousands, except share and per share data)

Information regarding the 1996 Plan for the year ended December 31, 2018 is as follows:

	Shares			Weighted Average Exercise Price		Weighted Average Contractual Life
Outstanding, beginning of year		1,099,877		$	44.00
Granted		104,000			67.21
Exercised		(361,618	)		37.15
Forfeited		(5,400	)		73.56
Expired		—			—
Outstanding, end of year		836,859			49.65		5.34
Exercisable at end of year		650,359			44.59		4.43

At December 31, 2018 there was $2,837 of unrecognized compensation cost related to stock options granted which is expected to be recognized over a weighted-average period of 1.77 years.

Shares available for future stock option and restricted share grants to employees and directors under existing plans were 975,215 at December 31, 2018. The aggregate intrinsic value of options outstanding as of December 31, 2018 was $16,821, and the aggregate intrinsic value of options exercisable was $16,143. Total intrinsic value of options exercised was $12,378 for the year ended December 31, 2018.

Stock Purchase Plan. In 2009 our Board of Directors adopted a new employee stock purchase plan, the 2009 Employee Stock Purchase Plan (the “2009 ESPP”), which was approved by our shareholders on May 28, 2009. The 2009 ESPP reserved 588,154 shares of Class A common stock for issuance to our employees, which included 88,154 shares of Class A common stock that had been available for issuance under our 2000 Employee Stock Purchase Plan (the “ 2000 ESPP”). The 2000 ESPP was terminated following the issuance of all shares that were subject to the offer that commenced under the 2000 ESPP on January 1, 2009 and ended June 30, 2009. The terms of the 2009 ESPP are substantially the same as the 2000 ESPP.

The number of shares of Class A common stock available under the 2009 ESPP was automatically increased by 83,838 shares on January 1, 2018 pursuant to the automatic increase provisions of the 2009 ESPP. The following is a summary of 2009 ESPP share activity for the year ended December 31, 2018:

	Shares
Available for future purchases, January 1, 2018		225,418
Additional shares reserved under 2009 ESPP		83,838
Purchases		(126,012	)
Available for future purchases, December 31, 2018		183,244

Performance-based compensation. Unrestricted shares of our Class A common stock may be awarded to key officers and employees under our 1996 Plan based on certain Company performance measures for fiscal 2018. The number of shares to be issued, if any, are dependent on the level of achievement of these performance measures as determined by the Company’s Compensation Committee based on our 2018 results and were issued in the first quarter of 2019. The shares subject to these awards can range from a minimum of 0% to a maximum of 100% of the target number of shares depending on the level at which the goals are attained. Based on the Company’s performance measures achieved through December 31, 2018, the Company has accrued $18,929 as compensation expense related to these agreements.

(16) Benefit Plans

The Company sponsors a partially self-insured group health insurance program. The Company is obligated to pay all claims under the program, which are in excess of premiums, up to program limits. The Company is also self-insured with respect to its income disability benefits and against casualty losses on advertising structures. Amounts for expected losses, including a provision for losses incurred but not reported, is included in accrued expenses in the accompanying consolidated financial statements. As of

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LAMAR ADVERTISING COMPANY

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Notes to Consolidated Financial Statements

(Dollars in thousands, except share and per share data)

December 31, 2018, the Company maintained $8,091 in letters of credit with a bank to meet requirements of the Company’s worker’s compensation and general liability insurance carrier.

Savings and Profit Sharing Plan

The Company sponsors The Lamar Corporation Savings and Profit Sharing Plan covering eligible employees who have completed one year of service and are at least 21 years of age. The Company has the option to match 50% of employees’ contributions up to 5% of eligible compensation. Employees can contribute up to 100% of compensation. Full vesting on the Company’s matched contributions occurs after three years for contributions made after January 1, 2002. Annually, at the Company’s discretion, an additional profit sharing contribution may be made on behalf of each eligible employee. The Company matched contributions of $4,966, $4,715 and $4,545 for the years ended December 31, 2018, 2017 and 2016, respectively.

Deferred Compensation Plan

The Company sponsors a Deferred Compensation Plan for the benefit of certain of its board-elected officers who meet specific age and years of service and other criteria. Officers that have attained the age of 30 and have a minimum of 10 years of service to the Company and satisfy additional eligibility guidelines are eligible for annual contributions to the plan generally ranging from $3 to $8, depending on the employee’s length of service. The Company’s contributions to the plan are maintained in a rabbi trust and, accordingly, the assets and liabilities of the plan are reflected in the balance sheet of the Company in other assets and other liabilities. Upon termination, death or disability, participating employees are eligible to receive an amount equal to the fair market value of the assets in the employee’s deferred compensation account. For the years ended December 31, 2018, 2017 and 2016, the Company contributed $1,585, $1,526 and $1,487, respectively.

On December 8, 2005, the Company’s Board of Directors approved an amendment to the Lamar Deferred Compensation Plan in order to (1) to comply with the requirements of Section 409A of the Internal Revenue Code (“Section 409A”) applicable to deferred compensation and (2) to reflect changes in the administration of the plan. The Company’s Board of Directors also approved the adoption of a grantor trust pursuant to which amounts may be set aside, but remain subject to claims of the Company’s creditors, for payments of liabilities under the new plan, including amounts contributed under the old plan. The plan was further amended in August 2007 to make certain amendments to reflect Section 409A regulations issued on April 10, 2007. An additional clarifying amendment was made to the plan in December 2013.

(17) Commitment and Contingencies

The Company is involved in various claims and legal actions arising in the ordinary course of business. In the opinion of management, the ultimate disposition of these matters will not have a material adverse effect on the Company’s consolidated financial position, results of operations, or liquidity.

(18) Distribution Restrictions

Lamar Media’s ability to make distributions to Lamar Advertising is restricted under both the terms of the indentures relating to Lamar Media’s outstanding notes and by the terms of its senior credit facility. As of December 31, 2018 and December 31, 2017, Lamar Media was permitted under the terms of its outstanding senior subordinated and senior notes to make transfers to Lamar Advertising in the form of cash dividends, loans or advances in amounts up to $3,156,061 and $2,975,593, respectively.

As of December 31, 2018, Lamar Media’s senior credit facility allows it to make transfers to Lamar Advertising in any taxable year up to the amount of Lamar Advertising’s taxable income (without any deduction for dividends paid). In addition, as of December 31, 2018, transfers to Lamar Advertising are permitted under Lamar Media’s senior credit facility and as defined therein up to the available cumulative credit, as long as no default has occurred and is continuing and, after giving effect to such distributions, (i) the total debt ratio is less than 6.5 to 1 and (ii) the secured debt ratio does not exceed 3.5 to 1. As of December 31, 2018, the total debt ratio was less than 6.5 to 1 and Lamar Media’s secured debt ratio was less than 3.5 to 1, and the available cumulative credit was $1,906,541.

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Notes to Consolidated Financial Statements

(Dollars in thousands, except share and per share data)

(19) Fair Value of Financial Instruments

At December 31, 2018 and 2017, the Company’s financial instruments included cash and cash equivalents, marketable securities, accounts receivable, investments, accounts payable and borrowings. The fair values of cash and cash equivalents, accounts receivable, accounts payable and short-term borrowings and current portion of long-term debt approximated carrying values because of the short-term nature of these instruments. Investments and initial recognition of asset retirement obligations are reported at fair values. Fair values for investments held at cost are not readily available, but are estimated to approximate fair value. The estimated fair value of the Company’s long term debt (including current maturities) was $2,904,851, which is less than both the gross and carrying amount of $2,914,552 as of December 31, 2018. The majority of the fair value is determined using observed prices of publicly traded debt (level 1 in the fair value hierarchy) and the remaining is valued based on quoted prices for similar debt (level 2 in the fair value hierarchy).

(20) Information about Geographic Areas

Revenues from external customers attributable to foreign countries totaled $35,146, $33,424 and $32,669 for the years ended December 31, 2018, 2017 and 2016, respectively. Net carrying value of long lived assets located in foreign countries totaled $2,387 and $3,571 as of December 31, 2018 and 2017, respectively. All other revenues from external customers and long lived assets relate to domestic operations.

(21) New Accounting Pronouncements

Revenue

In May 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-09 (Codified as ASC 606), Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU replaced most existing revenue recognition guidance in U.S. GAAP when it became effective. In August 2015, the FASB issued ASU No. 2015-14 deferring the effective date from January 1, 2017 to January 1, 2018, while allowing for early adoption as of January 1, 2017. The standard permits the use of either the retrospective or cumulative effect transition method. The Company adopted the provisions of ASC 606 on January 1, 2018 using the cumulative effect transition method. The Company did not have an adjustment to its opening balance of retained earnings for the adoption of this update.

Leases

In February 2016, the FASB established Topic 842, Leases, by issuing Accounting Standards Update (ASU) No. 2016-02, which requires lessees to recognize leases on-balance sheet and disclose key information about leasing arrangements. Topic 842 was subsequently amended by ASU No. 2018-01, Land Easement Practical Expedient for Transition to Topic 842; ASU No. 2018-10, Codification Improvements to Topic 842, Leases; and ASU No. 2018-11, Targeted Improvements. The new standard establishes a right-of-use model (ROU) that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement.

The new standard is effective for us on January 1, 2019, with early adoption permitted. A modified retrospective transition approach is required, applying the new standard to all leases existing at the date of initial application. An entity may choose to use either (1) its effective date or (2) the beginning of the earliest comparative period presented in the financial statements as its date of initial application. If an entity chooses the second option, the transition requirements for existing leases also apply to leases entered into between the date of initial application and the effective date. The entity must also recast its comparative period financial statements and provide the disclosures required by the new standard for the comparative periods. We expect to adopt the new standard on January 1, 2019 and use the effective date as our date of initial application. Consequently, financial information will not be updated and the disclosures required under the new standard will not be provided for dates and periods before January 1, 2019.

The new standard provides a number of optional practical expedients in transition. We expect to elect the ‘package of practical expedients’, which permits us not to reassess under the new standard our prior conclusions about lease identification, lease classification and initial direct costs. We also expect to elect the use of hindsight and the practical expedient pertaining to land easements. We expect to elect all of the new standard’s available transition practical expedients.

We expect that this standard will have a material effect on our financial statements. While we continue to assess all of the effects of adoption, we currently believe the most significant effects relate to (1) the recognition of new ROU assets and lease

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Notes to Consolidated Financial Statements

(Dollars in thousands, except share and per share data)

liabilities on our balance sheet for our billboard, logo, building and vehicle operating leases; (2) reclassification within our balance sheet of current asset prepaid operating lease balances to be a reduction of our lease liabilities and; (3) providing significant new disclosures about our leasing activities.

On adoption, we currently expect to recognize additional operating liabilities exceeding $1.1 billion, with corresponding ROU assets of the same amount based on the present value of the remaining minimum rental payments under current leasing standards for our existing operating leases.

The new standard also provides practical expedients for a company’s ongoing accounting. We currently expect to elect the short-term lease recognition exemption for our vehicle leases. This means, for those leases that qualify, we will not recognize ROU assets or lease liabilities. This includes not recognizing ROU assets or lease liabilities for existing short-term leases of those assets in transition.

Other recently released pronouncements

In March 2016, the FASB issued ASU 2016-09, Compensation – Stock Compensation: Improvements to Employee Share-Based Payment Accounting.  The update is designed to simplify accounting for share-based payment transactions, including income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows.  The update is effective for annual periods beginning January 1, 2017 with early adoption permitted.  The adoption of this update did not have a material impact on the Company’s consolidated financial statements.

In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows – Classification of Certain Cash Receipts and Cash Payments.  The update clarifies how certain cash receipts and cash payments are presented in the statement of cash flows.  The update is effective for annual periods beginning January 1, 2018 with early adoption permitted.  The Company adopted the update for the period ended December 31, 2016.  The update did not have a material impact on the Company’s consolidated statement of cash flows.

In January 2017, the FASB issued ASU No. 2017-01, Business Combinations: Clarifying the definition of a business.  The update clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions of assets or businesses.  The update is effective for annual periods beginning after December 15, 2017, including interim periods within those periods.  Early adoption is allowed for transactions in which the acquisition date occurs before the issuance date or effective date of the amendment, but only when the transaction has not been reported in financial statements that have been issued or made available for issuance. The Company adopted the update for transactions that occurred on or after October 1, 2016. The adoption of this update did not have a material impact on the Company’s consolidated financial statements.

In January 2017, the FASB issued ASU No. 2017-04, Intangibles – Goodwill and other (Topic 350): Simplifying the test for goodwill impairment. The update simplifies how a company completes its goodwill impairment test by eliminating the two-step process, which requires determining the fair value of assets acquired or liabilities assumed in a business combination. The update requires completing the goodwill impairment test by comparing the difference between the reporting unit’s carrying value and fair value.  Goodwill charges, if any, would be determined by reducing the goodwill balance by the excess of the reporting unit’s carrying value over its fair value.  The update is effective for annual and interim fiscal periods beginning after December 15, 2019, with early adoption permitted for interim or annual goodwill impairment tests performed on or after January 1, 2017.  The Company adopted this update beginning with its December 31, 2017 goodwill impairment test.

In November 2018, the FASB issued ASU No. 2018-18, Collaborative Arrangements (Topic 808). The update is to clarify when certain transactions between collaborative arrangement participants should be accounted for as revenue under Topic 606 and when the collaborative arrangement participant is a customer in the context of a unit of account. The update also adds unit-of-account guidance in Topic 808 and requires that a collaborative arrangement participant that is not directly related to sales to a third party, presenting the transaction together with revenue recognized under Topic 606 is precluded if the collaborative arrangement participant is not a customer. The update is effective for annual and interim fiscal periods beginning after December 15, 2019 with early adoption permitted.  The Company does not believe this update will have a material effect on the Company’s consolidated financial statements.

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Notes to Consolidated Financial Statements

(Dollars in thousands, except share and per share data)

(22) Quarterly Financial Data (Unaudited)

The tables below represent the balances for the selected quarterly financial data of the Company for each reporting period in the years ended December 31, 2018 and 2017.

	Year 2018 Quarters
	March 31		June 30		September 30		December 31
Net revenues	$	361,026	$	419,800	$	418,498	$	427,898
Net revenues less direct advertising expenses	$	222,733	$	279,016	$	277,799	$	285,826
Net income applicable to common stock	$	14,961	$	100,340	$	93,965	$	95,601
Net income per common share basic	$	0.15	$	1.02	$	0.95	$	0.97
Net income per common share diluted	$	0.15	$	1.02	$	0.95	$	0.96

	Year 2017 Quarters
	March 31		June 30		September 30		December 31
Net revenues	$	346,362	$	397,078	$	399,345	$	398,475
Net revenues less direct advertising expenses	$	214,518	$	262,003	$	264,368	$	259,491
Net income applicable to common stock	$	41,696	$	92,303	$	96,240	$	87,072
Net income per common share basic	$	0.43	$	0.94	$	0.98	$	0.89
Net income per common share diluted	$	0.42	$	0.94	$	0.98	$	0.89

(23) Divestiture of Assets

On April 16, 2018 the Company sold its assets in Puerto Rico for $3,000 in cash and non-cash consideration consisting of a note receivable for $9,250 due April 2024. The Company recorded a loss on the sale of $7,809 for the year ended December 31, 2018.

(24) Subsequent Events

On January 17, 2019, Lamar Media entered into an incremental amendment to the senior credit facility to include $100,000 in additional revolving commitments, thereby increasing the total borrowing capacity under the revolving credit facility to $550,000.

On February 1, 2019, Lamar Media issued $250,000 in aggregate principle amount of 5 3/4% Senior Notes due 2026 through an institutional private placement (the “New Notes”).  The New Notes were issued as additional notes to the existing $400,000 aggregate principal amount of 5 3/4% Senior Notes due 2026 that Lamar issued on January 28, 2016 (the “Existing Notes”).  Other than with respect to the date of issuance, issue price and CUSIP number, the New Notes have the same terms as the Existing Notes.  Once the New Notes are registered under the Securities Act and exchanged for exchange notes or become freely tradable under Rule 144, Lamar Media expects that the New Notes and the Existing Notes will share a single CUSIP number and thereafter be fungible.  The net proceeds after underwriting fees and expenses, was approximately $251,500 and were used to repay a portion of the borrowings outstanding under the revolving credit facility.

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SCHEDULE II

LAMAR ADVERTISING COMPANY

AND SUBSIDIARIES

Valuation and Qualifying Accounts

Years Ended December 31, 2018, 2017 and 2016

(In thousands)

	Balance at Beginning of Period		Charged to Costs and Expenses		Deductions		Balance at End of Period
Year ended December 31, 2018
Deducted in balance sheet from trade accounts receivable:
Allowance for doubtful accounts	$	10,055		8,472		7,366	$	11,161
Deducted in balance sheet from deferred tax assets:
Valuation allowance	$	20,120		3,814		—	$	23,934
Year ended December 31, 2017
Deducted in balance sheet from trade accounts receivable:
Allowance for doubtful accounts	$	9,356		6,762		6,063	$	10,055
Deducted in balance sheet from deferred tax assets:
Valuation allowance	$	16,167		3,953		—	$	20,120
Year ended December 31, 2016
Deducted in balance sheet from trade accounts receivable:
Allowance for doubtful accounts	$	8,984		6,870		6,498	$	9,356
Deducted in balance sheet from deferred tax assets:
Valuation allowance	$	13,827		2,340		—	$	16,167

79

SCHEDULE III

LAMAR ADVERTISING COMPANY

AND SUBSIDIARIES

Schedule of Real Estate and Accumulated Depreciation

December 31, 2018, 2017 and 2016

(In thousands)

Description(1)

Encumbrances

Initial Cost(2)

Gross Carrying Amount(3)

Accumulated Depreciation

Construction Date

Acquisition Date

Useful Lives

359,138 Displays

—

—

$

3,201,434

$

(2,082,335

)

Various

Various

5 to 20 years

⁽¹⁾ No single asset exceeded 5% of the total gross carrying amount at December 31, 2018

⁽²⁾ This information is omitted, as it would be impracticable to compile such information on a site-by-site basis

⁽³⁾ Includes sites under construction

The following table summarizes activity for the Company’s real estate assets, which consists of advertising displays and the related accumulated depreciation.

	December 31,			December 31,			December 31,
	2018			2017			2016
Gross real estate assets:
Balance at the beginning of the year	$	3,074,046		$	2,998,540		$	2,856,243
Capital expenditures on new advertising displays(4)		54,151			49,946			50,799
Capital expenditures on improvements/redevelopments of existing advertising displays		12,781			6,265			12,031
Capital expenditures other recurring		34,758			32,523			26,254
Land acquisitions(6)		15,368			14,904			30,283
Acquisition of advertising displays(5) (6)		82,617			32,109			69,821
Assets sold or written-off		(70,494	)		(61,306	)		(47,317	)
Foreign exchange		(1,793	)		1,065			426
Balance at the end of the year	$	3,201,434		$	3,074,046		$	2,998,540
Accumulated depreciation:
Balance at the beginning of the year	$	2,025,251		$	1,973,958		$	1,910,860
Depreciation		106,700			102,494			100,197
Assets sold or written-off		(48,488	)		(51,976	)		(37,373	)
Foreign exchange		(1,128	)		775			274
Balance at the end of the year	$	2,082,335		$	2,025,251		$	1,973,958

⁽⁴⁾ Includes non-cash amounts of $446, $921 and $379 at December 31, 2018, 2017 and 2016, respectively

⁽⁵⁾ Includes non-cash amounts of $7,199, $3,043 and $4,623 at December 31, 2018, 2017 and 2016, respectively

⁽⁶⁾ Includes preliminary allocation of assets acquired from Fairway at December 31, 2018

80

LAMAR MEDIA CORP.

AND SUBSIDIARIES

Management’s Report on Internal Control Over Financial Reporting	82
Report of Independent Registered Public Accounting Firm — Internal Control Over Financial Reporting	83
Report of Independent Registered Public Accounting Firm — Consolidated Financial Statements	85
Consolidated Balance Sheets as of December 31, 2018 and 2017	86
Consolidated Statements of Income and Comprehensive Income for the years ended December  31, 2018, 2017 and 2016	87
Consolidated Statements of Stockholder’s Equity for the years ended December 31, 2018, 2017 and 2016	88
Consolidated Statements of Cash Flows for the years ended December 31, 2018, 2017 and 2016	89
Notes to Consolidated Financial Statements	90-104
Schedule II — Valuation and Qualifying Accounts for the years ended December 31, 2018, 2017 and 2016	105
Schedule III — Schedule of Real Estate and Accumulated Depreciation as of December 31, 2018, 2017 and 2016	106

81

Management’s Report on Internal Control Over Financial Reporting

The management of Lamar Media Corp. is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Rule 13a-15(f) and 15d-15(f) under the Exchange Act.

Lamar Media Corp.’s management assessed the effectiveness of Lamar Media Corp.’s internal control over financial reporting as of December 31, 2017. In making this assessment, management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control-Integrated Framework (2013). Based on this assessment, Lamar Media Corp.’s management has concluded that, as of December 31, 2017, Lamar Media Corp.’s internal control over financial reporting is effective based on those criteria. The effectiveness of Lamar Media Corp.’s internal control over financial reporting as of December 31, 2017 has been audited by KPMG LLP, an independent registered public accounting firm, as stated in their report, which is included in Item 8 to this Annual Report.

82

Report of Independent Registered Public Accounting Firm

To the Stockholders and Board of Directors
Lamar Media Corp.:

Opinion on Internal Control Over Financial Reporting

We have audited Lamar Media Corp. and subsidiaries’ (the Company) internal control over financial reporting as of December 31, 2018, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2018, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of December 31, 2018 and 2017, the related consolidated statements of income and comprehensive income, stockholder’s equity, and cash flows for each of the years in the three-year period ended December 31, 2018, and the related notes and financial statement schedules II to III (collectively, the consolidated financial statements), and our report dated February 25, 2019 expressed an unqualified opinion on those consolidated financial statements.

The Company completed a business combination with Fairway Outdoor Advertising during 2018, and management excluded from its assessment of the effectiveness of the Company’s internal control over financial reporting as of December 31, 2018, Fairway Outdoor Advertising’s internal controls over financial reporting associated with Fairway Outdoor Advertising’s total assets of $459.6 million and total revenues of $1.9 million included in the consolidated financial statements of the Company as of and for the year ended December 31, 2018. Our audit of internal controls over financial reporting of the Company also excluded an evaluation of the internal controls over financial reporting of Fairway Outdoor Advertising.

Basis for Opinion

The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Report on Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audit also included performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

Definition and Limitations of Internal Control Over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

83

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ KPMG LLP

KPMG LLP

Baton Rouge, Louisiana
February 25, 2019

84

Report of Independent Registered Public Accounting Firm

To the Stockholders and Board of Directors
Lamar Media Corp.:

Opinion on the ConsolidatedFinancial Statements

We have audited the accompanying consolidated balance sheets of Lamar Media Corp. and subsidiaries (the Company) as of December 31, 2018 and 2017, the related consolidated statements of income and comprehensive income, stockholder’s equity, and cash flows for each of the years in the three‑year period ended December 31, 2018, and the related notes and financial statement schedules II to III (collectively, the consolidated financial statements). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2018 and 2017, and the results of its operations and its cash flows for each of the years in the three‑year period ended December 31, 2018, in conformity with U.S. generally accepted accounting principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of December 31, 2018, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission, and our report dated February 25, 2019 expressed an unqualified opinion on the effectiveness of the Company’s internal control over financial reporting.

Change in Accounting Principle

As discussed in Note 21 to the consolidated financial statements, the Company changed its method of accounting for business combinations effective October 1, 2016, due to the adoption of FASB ASU No. 2017-01, Clarifying the Definition of a Business.

As discussed in Note 21 to the consolidated financial statements, the Company changed its method of accounting for revenue recognition effective January 1, 2018, due to the adoption of Accounting Standards Codification Topic 606, Revenue from Contracts with Customers.

Basis for Opinion

These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.

/s/ KPMG LLP

KPMG LLP

We have served as the Company’s auditor since 1992.

Baton Rouge, Louisiana
February 25, 2019

85

LAMAR MEDIA CORP.

AND SUBSIDIARIES

Consolidated Balance Sheets

December 31, 2018 and 2017

(In thousands, except share and per share data)

	2018			2017
ASSETS
Current assets:
Cash and cash equivalents	$	20,994		$	114,971
Receivables, net of allowance for doubtful accounts of $11,161 and $10,055 as of      2018 and 2017, respectively		235,576			201,699
Prepaid lease and contract expenses		80,684			70,755
Other current assets		25,915			32,594
Total current assets		363,169			420,019
Property, plant and equipment		3,525,725			3,384,723
Less accumulated depreciation and amortization		(2,230,677	)		(2,170,585	)
Net property, plant and equipment		1,295,048			1,214,138
Goodwill (note 3)		1,909,235			1,730,303
Intangible assets, net (note 3)		914,984			795,879
Other assets		45,450			37,603
Total assets	$	4,527,886		$	4,197,942
LIABILITIES AND STOCKHOLDER’S EQUITY
Current liabilities:
Trade accounts payable	$	21,246		$	17,961
Current maturities of long-term debt, net of deferred financing costs of $5,245 and      $5,133 in 2018 and 2017, respectively (note 5)		204,120			17,664
Accrued expenses (note 4)		117,300			193,667
Deferred income		107,202			92,694
Total current liabilities		449,868			321,986
Long-term debt, net of deferred financing costs of $20,619 and $23,586 in 2018 and      2017, respectively (note 5)		2,684,568			2,539,026
Deferred income tax liabilities (note 6)		20,734			884
Asset retirement obligation		222,989			215,089
Other liabilities		29,531			29,859
Total liabilities		3,407,690			3,106,844
Stockholder’s equity:
Common stock, $.01 par value, authorized 3,000 shares; 100 shares issued and      outstanding at 2018 and 2017		—			—
Additional paid-in-capital		2,922,907			2,832,940
Accumulated comprehensive income		12			1,302
Accumulated deficit		(1,802,723	)		(1,743,144	)
Stockholder’s equity		1,120,196			1,091,098
Total liabilities and stockholder’s equity	$	4,527,886		$	4,197,942

See accompanying notes to consolidated financial statements.

86

LAMAR MEDIA CORP.

AND SUBSIDIARIES

Consolidated Statements of Income and Comprehensive Income

Years Ended December 31, 2018, 2017 and 2016

(In thousands)

	2018			2017			2016
Statements of Income
Net revenues	$	1,627,222		$	1,541,260		$	1,500,294
Operating expenses (income):
Direct advertising expenses (exclusive of depreciation and amortization)		561,848			540,880			525,597
General and administrative expenses (exclusive of depreciation and    amortization)		289,428			276,229			269,423
Corporate expenses (exclusive of depreciation and amortization)		82,497			61,962			75,994
Depreciation and amortization		225,261			211,104			204,958
Loss (gain) on disposition of assets		7,233			(4,664	)		(15,095	)
		1,166,267			1,085,511			1,060,877
Operating income		460,955			455,749			439,417
Other expense (income):
Loss on extinguishment of debt		15,429			71			3,198
Interest income		(534	)		(6	)		(6	)
Interest expense		129,732			128,396			123,688
		144,627			128,461			126,880
Income before income tax expense		316,328			327,288			312,537
Income tax expense (note 6)		10,697			9,230			13,356
Net income	$	305,631		$	318,058		$	299,181
Statements of Comprehensive Income
Net income	$	305,631		$	318,058		$	299,181
Other comprehensive (loss) income, net of tax
Foreign currency translation adjustments		(1,290	)		1,926			554
Comprehensive income	$	304,341		$	319,984		$	299,735

See accompanying notes to consolidated financial statements.

87

LAMAR MEDIA CORP.

AND SUBSIDIARIES

Consolidated Statements of Stockholder’s Equity

Years Ended December 31, 2018, 2017 and 2016

(In thousands, except share and per share data)

	Common Stock		Additional Paid-In Capital		Accumulated Comprehensive Income (Loss)			Accumulated Deficit			Total
Balance, December 31, 2015	$	—		2,734,479		(1,178	)		(1,726,120	)		1,007,181
Contribution from parent		—		49,274		—			—			49,274
Foreign currency translations		—		—		554			—			554
Net income		—		—		—			299,181			299,181
Dividend to parent		—		—		—			(299,804	)		(299,804	)
Balance, December 31, 2016	$	—		2,783,753		(624	)		(1,726,743	)		1,056,386
Contribution from parent		—		49,187		—			—			49,187
Foreign currency translations		—		—		1,926			—			1,926
Net income		—		—		—			318,058			318,058
Dividend to parent		—		—		—			(334,459	)		(334,459	)
Balance, December 31, 2017	$	—		2,832,940		1,302			(1,743,144	)		1,091,098
Contribution from parent		—		89,967		—			—			89,967
Foreign currency translations		—		—		(1,290	)		—			(1,290	)
Net income		—		—		—			305,631			305,631
Dividend to parent		—		—		—			(365,210	)		(365,210	)
Balance, December 31, 2018	$	—		2,922,907		12			(1,802,723	)		1,120,196

See accompanying notes to consolidated financial statements.

88

LAMAR MEDIA CORP.

AND SUBSIDIARIES

Consolidated Statements of Cash Flows

Years Ended December 31, 2018, 2017 and 2016

(In thousands)

	2018			2017			2016
Cash flows from operating activities:
Net income	$	305,631		$	318,058		$	299,181
Adjustments to reconcile net income to net cash provided by operating    activities:
Depreciation and amortization		225,261			211,104			204,958
Non-cash compensation		29,443			9,599			28,560
Amortization included in interest expense		4,920			5,120			5,333
Loss (gain) on disposition of assets and investments		7,233			(4,664	)		(15,095	)
Loss on extinguishment of debt		15,429			71			3,198
Deferred income tax expense (benefit)		1,538			804			(343	)
Provision for doubtful accounts		7,985			6,762			6,870
Changes in operating assets and liabilities:
(Increase) decrease in:
Receivables		(33,292	)		(17,524	)		(22,677	)
Prepaid expenses		(5,433	)		309			1,320
Other assets		3,270			(8,410	)		5,462
Increase (decrease) in:
Trade accounts payable		1,366			309			(746	)
Accrued expenses		(6,292	)		(9,416	)		10,245
Other liabilities		(19,974	)		(27,882	)		(31,000	)
Cash flows provided by operating activities		537,085			484,240			495,266
Cash flows from investing activities:
Capital expenditures		(117,638	)		(109,329	)		(107,612	)
Acquisitions		(477,389	)		(297,305	)		(585,054	)
Decrease in notes receivable		9			515			21
Proceeds received from property insurance claims		4,222			—			—
Proceeds from disposition of assets and investments		6,648			6,053			11,662
Cash flows used in investing activities		(584,148	)		(400,066	)		(680,983	)
Cash flows from financing activities:
Proceeds received from revolving credit facility		563,000			495,000			483,000
Payments on revolving credit facility		(481,000	)		(477,000	)		(403,000	)
Principal payments on long-term debt		(27,328	)		(16,993	)		(21,118	)
Proceeds received from senior credit facility term loans		599,250			450,000			300,000
Proceeds received from accounts receivable securitization program		175,000			—			—
Debt issuance costs		(7,616	)		(4,941	)		(9,467	)
Proceeds received from note offering		—			—			400,000
Redemption on senior subordinated notes		(509,790	)		—			—
Payment on senior credit facility term loans		—			(247,500	)		(300,000	)
Distributions to non-controlling interest		(541	)		(693	)		(420	)
Dividends to parent		(446,744	)		(252,925	)		(299,804	)
Contributions from parent		89,967			49,187			49,274
Cash flows (used in) provided by financing activities		(45,802	)		(5,865	)		198,465
Effect of exchange rate changes in cash and cash equivalents		(1,112	)		1,632			455
Net (decrease) increase in cash and cash equivalents		(93,977	)		79,941			13,203
Cash and cash equivalents at beginning of period		114,971			35,030			21,827
Cash and cash equivalents at end of period	$	20,994		$	114,971		$	35,030
Supplemental disclosures of cash flow information:
Cash paid for interest	$	136,711		$	123,213		$	108,719
Cash paid for state and federal income taxes	$	8,563		$	12,640		$	14,167

See accompanying notes to consolidated financial statements.

89

LAMAR MEDIA CORP.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(Dollars in thousands, except share and per share data)

(1) Significant Accounting Policies

(a) Nature of Business

Lamar Media Corp. (“Lamar Media”) is a wholly owned subsidiary of Lamar Advertising Company. Lamar Media is engaged in the outdoor advertising business operating approximately 156,900 outdoor advertising displays in 45 states and Canada. Lamar Media’s operating strategy is to be the leading provider of outdoor advertising services in the markets it serves.

In addition, Lamar Media operates a logo sign business in 23 states throughout the United States as well as the province of Ontario, Canada. Logo signs are erected pursuant to state-awarded service contracts on public rights-of-way near highway exits and deliver brand name information on available gas, food, lodging and camping services. Included in the Company’s logo sign business are tourism signing contracts. The Company provides transit advertising in airport terminals, on bus shelters, benches and buses in the markets it serves.

Certain footnotes are not provided for the accompanying financial statements as the information in notes 2, 3, 5, 7, 10, 11, 13, 14, 15, 16, 17, 18, 19, 20, 21, 23 and 24 and portions of note 1 to the consolidated financial statements of Lamar Advertising Company included elsewhere in this filing are substantially equivalent to that required for the consolidated financial statements of Lamar Media Corp. Earnings per share data is not provided for the operating results of Lamar Media Corp. as it is a wholly owned subsidiary of Lamar Advertising Company.

(b) Principles of Consolidation

The accompanying consolidated financial statements include Lamar Media, its wholly owned subsidiaries, The Lamar Company, L.L.C., Lamar Central Outdoor, LLC, Lamar TRS Holdings, LLC, Lamar Advertising Southwest, Inc., Interstate Logos, L.L.C., Lamar Obie Company, LLC, Lamar Canadian Outdoor Company, Lamar Advertising of Puerto Rico, Inc. and their majority-owned subsidiaries. All inter-company transactions and balances have been eliminated in consolidation.

(2) Non-cash Financing and Investing Activities

There were no significant non-cash investing activities for Lamar Media during the year ended December 31, 2018. For the years ended December 31, 2017 and 2016, the Company had non-cash investing activities of $2,879 and $9,000 related to capital expenditures and acquisitions of outdoor advertising assets. During the year ended December 31, 2017, Lamar Media had non-cash financing activities related to dividends to Lamar Advertising Company of $81,534 which were paid in January 2018. There were no significant non-cash financing activities during the years ended December 31, 2018 and 2016.

(3) Goodwill and Other Intangible Assets

The following is a summary of intangible assets at December 31, 2018 and December 31, 2017:

	Estimated		2018				2017
	Life (Years)		Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Amortizable Intangible Assets:
Customer lists and contracts	7—10		$	610,376	$	514,928	$	586,055	$	505,778
Non-competition agreement	3—15			65,771		64,119		65,477		63,924
Site locations		15		2,228,767		1,422,794		2,072,059		1,372,954
Other	2—15			45,446		33,535		45,195		30,251
			$	2,950,360	$	2,035,376	$	2,768,786	$	1,972,907
Unamortizable Intangible Assets:
Goodwill			$	2,161,902	$	252,667	$	1,982,970	$	252,667

90

LAMAR MEDIA CORP.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(Dollars in thousands, except share and per share data)

The changes in the gross carrying amount of goodwill for the year ended December 31, 2018 are as follows:

Balance as of December 31, 2017	$	1,982,970
Goodwill acquired during the year		182,117
Purchase price adjustments and other		(3,185	)
Impairment losses		—
Balance as of December 31, 2018	$	2,161,902

(4) Accrued Expenses

The following is a summary of accrued expenses at December 31, 2018 and 2017:

	2018		2017
Payroll	$	20,667	$	14,962
Interest		27,067		38,967
Accrued lease expense		36,158		37,073
Stock-based compensation		19,211		4,793
Dividend to parent payable		—		81,534
Other		14,197		16,338
	$	117,300	$	193,667

91

LAMAR MEDIA CORP.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(Dollars in thousands, except share and per share data)

(5) Long-term Debt

Long-term debt consists of the following at December 31, 2018 and 2017:

	December 31, 2018
	Debt			Deferred financing costs			Debt, net of deferred financing costs
Senior Credit Facility	$	1,291,088		$	11,576		$	1,279,512
Accounts Receivable Securitization Program		175,000			1,168			173,832
5% Senior Subordinated Notes		535,000			4,104			530,896
5 3/8% Senior Notes		510,000			4,262			505,738
5 3/4% Senior Notes		400,000			4,754			395,246
Other notes with various rates and terms		3,464			—			3,464
		2,914,552			25,864			2,888,688
Less current maturities		(209,365	)		(5,245	)		(204,120	)
Long-term debt, excluding current maturities	$	2,705,187		$	20,619		$	2,684,568
	December 31, 2017
	Debt			Deferred financing costs			Debt, net of deferred financing costs
Senior Credit Facility	$	636,750		$	7,689		$	629,061
5 7/8% Senior Subordinated Notes		500,000			5,850			494,150
5% Senior Subordinated Notes		535,000			4,927			530,073
5 3/8% Senior Notes		510,000			4,982			505,018
5 3/4% Senior Notes		400,000			5,271			394,729
Other notes with various rates and terms		3,659			—			3,659
		2,585,409			28,719			2,556,690
Less current maturities		(22,797	)		(5,133	)		(17,664	)
Long-term debt, excluding current maturities	$	2,562,612		$	23,586		$	2,539,026

Long-term debt contractual maturities are as follows:

	Debt		Deferred financing costs		Debt, net of deferred financing costs
2019	$	34,365	$	5,245	$	29,120
2020	$	56,881	$	5,368	$	51,513
2021	$	248,773	$	5,498	$	243,275
2022	$	556,256	$	4,064	$	552,192
2023	$	541,275	$	2,900	$	538,375
Later years	$	1,477,002	$	2,789	$	1,474,213

92

LAMAR MEDIA CORP.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(Dollars in thousands, except share and per share data)

(6) Income Taxes

On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (the “TCJA”) was signed into law, making significant changes to the Internal Revenue Code. As a result of the TCJA, a tax benefit of $3,372 and $466 was recorded to current tax expense and deferred tax expense, respectively, for the year ended December 31, 2017.

Income tax expense (benefit) consists of the following:

	Current		Deferred			Total
Year ended December 31, 2018:
U.S. federal	$	4,952	$	435		$	5,387
State and local		2,615		(123	)		2,492
Foreign		1,592		1,226			2,818
	$	9,159	$	1,538		$	10,697
Year ended December 31, 2017:
U.S. federal	$	4,174	$	359		$	4,533
State and local		2,706		(170	)		2,536
Foreign		1,546		615			2,161
	$	8,426	$	804		$	9,230
Year ended December 31, 2016:
U.S. federal	$	9,518	$	(935	)	$	8,583
State and local		2,681		(6	)		2,675
Foreign		1,500		598			2,098
	$	13,699	$	(343	)	$	13,356

 As of December 31, 2018 and 2017, the Company had income taxes (payable) receivable of $(458) and $3,106, respectively, included in accrued expenses.

The U.S. and foreign components of earnings before income taxes are as follows:

	2018			2017			2016
U.S.	$	318,094		$	332,989		$	313,801
Foreign		(1,766	)		(5,701	)		(1,264	)
Total	$	316,328		$	327,288		$	312,537

A reconciliation of significant differences between the reported amount of income tax expense and the expected amount of income tax expense that would result from applying the U.S. federal statutory income tax rate of 21 percent to income before taxes for the 2018 tax year and 35 percent for the 2017 and 2016 tax years, is as follows:

	2018			2017			2016
Income tax expense at U.S. federal statutory rate	$	66,429		$	114,551		$	109,388
Tax adjustment related to REIT(a)		(63,753	)		(109,294	)		(101,999	)
State and local income taxes, net of federal income    tax benefit		1,461			1,193			1,481
Book expenses not deductible for tax purposes		1,926			2,635			2,465
Stock-based compensation		1,090			(121	)		169
Valuation allowance(b)		3,813			3,953			2,340
Rate Change(c)		(80	)		(466	)		(19	)
Undistributed earnings of foreign subsidiaries(d)		(393	)		1,363			—
Minimum tax credit refundable(e)		—			(4,108	)		—
Other differences, net(f)		204			(476	)		(469	)
Income tax expense	$	10,697		$	9,230		$	13,356

93

LAMAR MEDIA CORP.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(Dollars in thousands, except share and per share data)

^(a) Includes dividend paid deduction of $69,902, $110,824 and $102,888 for the tax years ended December 31, 2018, 2017 and 2016, respectively.

^(b) For the years ended December 31, 2018, 2017 and 2016, a non-cash valuation allowance of $3,813, $3,953 and $2,340, respectively, was recorded to income tax expense due to our limited ability to utilize Puerto Rico deferred tax assets in future years.

^(c) Under the TCJA, the U.S. corporate income tax rate was lowered from 35% to 21%.  As a result, a non-cash benefit of $466 to income tax expense was recorded for the reduction of the U.S. net deferred tax liability for the year ended December 31, 2017.

^(d) In periods prior to December 31, 2017, the undistributed earnings of our Canadian subsidiaries were designated as permanently reinvested.  As of December 31, 2017, however, management did not assert that the undistributed earnings of our Canadian subsidiaries will be permanently reinvested.  For the years ended December 31, 2018 and 2017, we recognized a deferred tax (benefit) charge of $(393) and $1,363 for future foreign withholding taxes related to undistributed earnings.

^(e) Under the TCJA, the corporate alternative minimum tax was repealed and any minimum tax carryforwards not utilized become fully refundable in 2021.  The Company does not expect to utilize its minimum tax credit carryforward. As a result, a cash benefit of $4,108 to income tax expense was recorded for the year ended December 31, 2017.

^(f) Upon enactment, the TCJA includes a one-time transition tax on the mandatory deemed repatriation of cumulative foreign earnings, net of foreign tax credits. As a result, a cash charge of $736 to income tax expense was recorded for the year ended December 31, 2017.

The tax effect of temporary differences that give rise to significant portions of the deferred tax assets and (liabilities) are presented below:

	2018			2017
Deferred tax assets:
Allowance for doubtful accounts	$	654		$	709
Accrued liabilities not deducted for tax purposes		7,022			3,648
Asset retirement obligation		—			124
Net operating loss carry forwards		34,716			18,617
Tax credit carry forwards		320			153
Charitable contributions carry forward		47			7
Property, plant and equipment		—			2,300
Investment in partnership		—			240
Gross deferred tax assets		42,759			25,798
Less: valuation allowance		(23,934	)		(20,120	)
Net deferred tax assets		18,825			5,678
Deferred tax liabilities:
Intangibles		(6,565	)		(5,199	)
Investment in partnership		(31,746	)		—
Property, plant and equipment		(366	)		—
Undistributed earnings of foreign subsidiaries		(882	)		(1,363	)
Gross deferred tax liabilities		(39,559	)		(6,562	)
Net deferred tax liabilities	$	(20,734	)	$	(884	)

As of December 31, 2018, we have approximately $148,993 of U.S. net operating loss carry forwards to offset future taxable income. Of this amount, $63,716 is subject to an Internal Revenue Code §382 limitation but will be available to be fully utilized by no later than 2032. These carry forwards expire between 2029 and 2032. As of December 31, 2018, the Company has $14,771 of various tax credits available to offset future U.S. federal taxable income. Also, the Company recognized a $4,108 tax benefit related to its minimum tax credit carryforwards which we do not expect to utilize before 2021.

As of December 31, 2018, we have approximately $686,914 state net operating loss carry forwards before valuation allowances. These state net operating losses are available to reduce future taxable income and expire at various times and amounts. In addition, we have $190 of various credits available to offset future state income tax. There was no valuation allowance related to state net operating

94

LAMAR MEDIA CORP.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(Dollars in thousands, except share and per share data)

loss carry forwards as of December 31, 2018 and December 31, 2017. There were no net changes in the total state valuation allowance for the years ended December 31, 2018 and 2017.

During 2018 we generated $7,377 of Puerto Rico net operating losses. As of December 31, 2018, we had approximately $51,642 of Puerto Rico net operating loss carry forwards before valuation allowances. These Puerto Rico net operating losses are available to offset future taxable income. These carry forwards expire between 2019 and 2028. In addition, we have $153 of alternative minimum tax credits available to offset future Puerto Rico income tax.

In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income in those jurisdictions during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities (including the impact of available carry back and carry forward periods), projected future taxable income, and tax-planning strategies in making this assessment. In order to fully realize the deferred tax assets, the Company will need to generate future taxable income before the expiration of the carry forwards governed by the tax code. Based on the current level of pretax earnings, the Company will not generate the minimum amount of future taxable income to support the realization of the deferred tax assets. As a result, management has determined that a valuation allowance related to Puerto Rico net operating loss carry forwards and other deferred tax assets is necessary. The valuation allowance for these deferred tax assets as of December 31, 2018 and 2017 was $23,934 and $20,120, respectively. The net change in the total valuation allowance for the years ended December 31, 2018 and 2017 was an increase of $3,814 and $3,953, respectively. The amount of the deferred tax asset considered realizable, however, could be adjusted in the near term if estimates of future taxable income during the carry forward period increase.

As of December 31, 2018, the Company has accumulated undistributed earnings generated by our foreign subsidiaries of approximately $22,528. Management does not designate these earnings as permanently reinvested. We have recognized a deferred tax liability of approximately $882 related to foreign withholding taxes on these earnings. We have recognized a current year tax expense of $234 related to 2018 earnings and a tax benefit of $(635) related to prior year earnings repatriated in 2018.

Under ASC 740 Income Taxes, we provide for uncertain tax positions, and the related interest, and adjust recognized tax benefits and accrued interest accordingly. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

Balance as of December 31, 2016	$	772
Additions for tax positions related to current year		1,122
Additions for tax positions related to prior years		173
Reductions for tax positions related to prior years		—
Lapse of statute of limitations		—
Settlements		—
Balance as of December 31, 2017	$	2,067
Additions for tax positions related to current year		932
Additions for tax positions related to prior years		238
Reductions for tax positions related to prior years		—
Lapse of statute of limitations		(30	)
Settlements		—
Balance as of December 31, 2018	$	3,207

Included in the balance of unrecognized benefits at December 31, 2018 is $3,207 of tax benefits that, if recognized in future periods, would impact our effective tax rate. During the year ended December 31, 2018 and 2017, we recognized interest and penalties of $411 and $213 , respectively, as a component of income tax expense in connection with our liabilities related to uncertain tax positions.

95

LAMAR MEDIA CORP.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(Dollars in thousands, except share and per share data)

Within the next twelve months, we expect to decrease our unrecognized tax benefits by approximately $112 as a result of the expiration of statute of limitations.

We are subject to income taxes in the U.S. and nearly all states. In addition, the Company is subject to income taxes in Canada and the Commonwealth of Puerto Rico. We are no longer subject to U.S federal income tax examinations by tax authorities for years prior to 2013, or for any U.S. state income tax audit prior to 2010. The IRS has completed a review of the 2013 income tax return. With respect to Canada and Puerto Rico, we are no longer subject to income tax audits for years before 2015 and 2014, respectively.

(7) Related Party Transactions

Affiliates, as used within these statements, are persons or entities that are affiliated with Lamar Media Corp. or its subsidiaries through common ownership and directorate control.

As of December 31, 2018 and December 31, 2017, there was a payable to Lamar Advertising Company, its parent, in the amount of $5,571 and $6,731, respectively.

Effective December 31, 2018 and December 31, 2017, Lamar Advertising Company contributed $89,967 and $49,187, respectively, to Lamar Media which resulted in an increase in Lamar Media’s additional paid-in capital.

(8) Quarterly Financial Data (Unaudited)

The tables below represent the balances for the selected quarterly financial data of the Company for each reporting period in the years ended December 31, 2018 and 2017.

	Year 2018 Quarters
	March 31		June 30		September 30		December 31
Net revenues	$	361,026	$	419,800	$	418,498	$	427,898
Net revenues less direct advertising expenses	$	222,733	$	279,016	$	277,799	$	285,826
Net income	$	15,158	$	100,520	$	94,165	$	95,788

	Year 2017 Quarters
	March 31		June 30		September 30		December 31
Net revenues	$	346,362	$	397,078	$	399,345	$	398,475
Net revenues less direct advertising expenses	$	214,518	$	262,003	$	264,368	$	259,491
Net income	$	41,893	$	92,479	$	96,437	$	87,249

96

LAMAR MEDIA CORP.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(Dollars in thousands, except share and per share data)

(9) Summarized Financial Information of Subsidiaries

Separate condensed consolidating financial information for Lamar Media,subsidiary guarantors and non-guarantor subsidiaries are presented below. Lamar Media and its subsidiary guarantors have fully and unconditionally guaranteed Lamar Media’s obligations with respect to its publicly issued notes. All guarantees are joint and several. As a result of these guarantee arrangements, we are required to present the following condensed consolidating financial information. The following condensed consolidating financial information should be read in conjunction with the accompanying consolidated financial statements and notes. The condensed consolidating financial information is provided as an alternative to providing separate financial statements for guarantor subsidiaries. Separate financial statements of Lamar Media’s subsidiary guarantors are not included because the guarantees are full and unconditional and the subsidiary guarantors are 100% owned and jointly and severally liable for Lamar Media’s outstanding publicly issued notes. The accounts for all companies reflected herein are presented using the equity method of accounting for investments in subsidiaries.

Condensed Consolidating Balance Sheet as of December 31, 2018
	Lamar Media Corp.		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Lamar Media Consolidated
ASSETS
Total current assets	$	4,653	$	121,549	$	236,967	$	—		$	363,169
Net property, plant and equipment		—		1,289,348		5,700		—			1,295,048
Intangibles and goodwill, net		—		2,804,915		19,304		—			2,824,219
Other assets		4,056,288		230,504		184,247		(4,425,589	)		45,450
Total assets	$	4,060,941	$	4,446,316	$	446,218	$	(4,425,589	)	$	4,527,886
LIABILITIES AND STOCKHOLDER'S EQUITY
Current liabilities:
Current maturities of long-term debt	$	29,086	$	34	$	175,000	$	—		$	204,120
Other current liabilities		27,067		204,103		14,578		—			245,748
Total current liabilities		56,153		204,137		189,578		—			449,868
Long-term debt		2,684,500		68		—		—			2,684,568
Other noncurrent liabilities		200,092		246,312		251,835		(424,985	)		273,254
Total liabilities		2,940,745		450,517		441,413		(424,985	)		3,407,690
Stockholders’ equity		1,120,196		3,995,799		4,805		(4,000,604	)		1,120,196
Total liabilities and stockholders’ equity	$	4,060,941	$	4,446,316	$	446,218	$	(4,425,589	)	$	4,527,886

97

LAMAR MEDIA CORP.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(Dollars in thousands, except share and per share data)

Condensed Consolidating Balance Sheet as of December 31, 2017
	Lamar Media Corp.		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Lamar Media Consolidated
ASSETS
Total current assets	$	87,167	$	293,536	$	39,316	$	—		$	420,019
Net property, plant and equipment		—		1,193,705		20,433		—			1,214,138
Intangibles and goodwill, net		—		2,495,370		30,812		—			2,526,182
Other assets		3,707,352		10,571		7		(3,680,327	)		37,603
Total assets	$	3,794,519	$	3,993,182	$	90,568	$	(3,680,327	)	$	4,197,942
LIABILITIES AND STOCKHOLDER'S EQUITY
Current liabilities:
Current maturities of long-term debt	$	17,664	$	—	$	—	$	—		$	17,664
Other current liabilities		120,500		164,393		19,429		—			304,322
Total current liabilities		138,164		164,393		19,429		—			321,986
Long-term debt		2,539,026		—		—		—			2,539,026
Other noncurrent liabilities		26,231		218,900		61,587		(60,886	)		245,832
Total liabilities		2,703,421		383,293		81,016		(60,886	)		3,106,844
Stockholders’ equity		1,091,098		3,609,889		9,552		(3,619,441	)		1,091,098
Total liabilities and stockholders’ equity	$	3,794,519	$	3,993,182	$	90,568	$	(3,680,327	)	$	4,197,942

98

LAMAR MEDIA CORP.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(Dollars in thousands, except share and per share data)

Condensed Consolidating Statements of Income and Comprehensive Income for the Year Ended December 31, 2018
	Lamar Media Corp.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Lamar Media Consolidated
Statement of Income
Net revenues	$	—		$	1,579,619		$	50,352		$	(2,749	)	$	1,627,222
Operating expenses
Direct advertising expenses (1)		—			537,269			27,307			(2,728	)		561,848
General and administrative expenses (1)		—			280,874			8,554			—			289,428
Corporate expenses (1)		—			80,861			1,636			—			82,497
Depreciation and amortization		—			219,341			5,920			—			225,261
(Gain) loss on disposition of assets		—			(576	)		7,809			—			7,233
		—			1,117,769			51,226			(2,728	)		1,166,267
Operating income (loss)		—			461,850			(874	)		(21	)		460,955
Equity in (earnings) loss of subsidiaries		(450,791	)		—			—			450,791			—
Interest expense (income), net		129,731			(99	)		(413	)		(21	)		129,198
Other expenses		15,429			—			—			—			15,429
Income (loss) before income tax expense		305,631			461,949			(461	)		(450,791	)		316,328
Income tax expense (2)		—			7,879			2,818			—			10,697
Net income (loss)	$	305,631		$	454,070		$	(3,279	)	$	(450,791	)	$	305,631
Statement of Comprehensive Income
Net income (loss)	$	305,631		$	454,070		$	(3,279	)	$	(450,791	)	$	305,631
Total other comprehensive income, net of tax		—			—			(1,290	)		—			(1,290	)
Total comprehensive income (loss)	$	305,631		$	454,070		$	(4,569	)	$	(450,791	)	$	304,341
(1) Caption is exclusive of depreciation and amortization.
(2) The income tax expense reflected in each column does not include any tax effect of the equity in earnings from subsidiaries.

99

LAMAR MEDIA CORP.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(Dollars in thousands, except share and per share data)

Condensed Consolidating Statements of Income and Comprehensive Income for the Year Ended December 31, 2017
	Lamar Media Corp.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Lamar Media Consolidated
Statement of Income
Net revenues	$	—		$	1,494,275		$	51,332		$	(4,347	)	$	1,541,260
Operating expenses
Direct advertising expenses (1)		—			512,247			31,277			(2,644	)		540,880
General and administrative expenses (1)		—			266,798			9,431			—			276,229
Corporate expenses (1)		—			60,830			1,132			—			61,962
Depreciation and amortization		—			201,424			9,680			—			211,104
(Gain) loss on disposition of assets		—			(5,704	)		1,040			—			(4,664	)
		—			1,035,595			52,560			(2,644	)		1,085,511
Operating income (loss)		—			458,680			(1,228	)		(1,703	)		455,749
Equity in (earnings) loss of subsidiaries		(446,520	)		—			—			446,520			—
Interest expense (income), net		128,391			(5	)		1,707			(1,703	)		128,390
Other expenses		71			—			—			—			71
Income (loss) before income tax expense		318,058			458,685			(2,935	)		(446,520	)		327,288
Income tax expense (2)		—			7,069			2,161			—			9,230
Net income (loss)	$	318,058		$	451,616		$	(5,096	)	$	(446,520	)	$	318,058
Statement of Comprehensive Income
Net income (loss)	$	318,058		$	451,616		$	(5,096	)	$	(446,520	)	$	318,058
Total other comprehensive income, net of tax		—			—			1,926			—			1,926
Total comprehensive income (loss)	$	318,058		$	451,616		$	(3,170	)	$	(446,520	)	$	319,984
(1) Caption is exclusive of depreciation and amortization.
(2) The income tax expense reflected in each column does not include any tax effect of the equity in earnings from subsidiaries.

100

LAMAR MEDIA CORP.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(Dollars in thousands, except share and per share data)

Condensed Consolidating Statements of Income and Comprehensive Income for the Year Ended December 31, 2016
	Lamar Media Corp.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Lamar Media Consolidated
Statement of Income
Net revenues	$	—		$	1,450,997		$	53,190		$	(3,893	)	$	1,500,294
Operating expenses
Direct advertising expenses (1)		—			497,011			31,197			(2,611	)		525,597
General and administrative expenses (1)		—			259,152			10,271			—			269,423
Corporate expenses (1)		—			74,587			1,407			—			75,994
Depreciation and amortization		—			197,117			7,841			—			204,958
(Gain) loss on disposition of assets		—			(15,365	)		270			—			(15,095	)
		—			1,012,502			50,986			(2,611	)		1,060,877
Operating income (loss)		—			438,495			2,204			(1,282	)		439,417
Equity in (earnings) loss of subsidiaries		(426,053	)		—			—			426,053			—
Interest expense (income), net		123,674			(6	)		1,296			(1,282	)		123,682
Other expenses		3,198			—			—			—			3,198
Income (loss) before income tax expense		299,181			438,501			908			(426,053	)		312,537
Income tax expense (2)		—			11,258			2,098			—			13,356
Net income (loss)	$	299,181		$	427,243		$	(1,190	)	$	(426,053	)	$	299,181
Statement of Comprehensive Income
Net income (loss)	$	299,181		$	427,243		$	(1,190	)	$	(426,053	)	$	299,181
Total other comprehensive income, net of tax		—			—			554			—			554
Total comprehensive income (loss)	$	299,181		$	427,243		$	(636	)	$	(426,053	)	$	299,735
(1) Caption is exclusive of depreciation and amortization.
(2) The income tax expense reflected in each column does not include any tax effect of the equity in earnings from subsidiaries.

101

LAMAR MEDIA CORP.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(Dollars in thousands, except share and per share data)

Condensed Consolidating Statement of Cash Flows for the Year Ended December 31, 2018
	Lamar Media Corp.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Lamar Media Consolidated
Cash flows from operating activities:
Net cash provided by (used in) operating activities	$	430,896		$	689,718		$	(17,143	)	$	(566,386	)	$	537,085
Cash flows from investing activities:
Acquisitions		—			(477,389	)		—			—			(477,389	)
Capital expenditures		—			(113,259	)		(4,379	)		—			(117,638	)
Proceeds from disposition of assets and investments		—			3,839			2,809			—			6,648
Proceeds received from insurance claims		—			—			4,222			—			4,222
Investment in subsidiaries		(498,226	)		—			—			498,226			—
Decrease in intercompany notes receivable		30,034			—			—			(30,034	)		—
Decrease in notes receivable		9			—			—			—			9
Net cash (used in) provided by investing activities		(468,183	)		(586,809	)		2,652			468,192			(584,148	)
Cash flows from financing activities:
Proceeds received from revolving credit facility		563,000			—			—			—			563,000
Payment on revolving credit facility		(481,000	)		—			—			—			(481,000	)
Principal payments on long-term debt		(27,297	)		(31	)		—			—			(27,328	)
Proceeds received from senior credit facility term loans		599,250			—			—			—			599,250
Proceeds received from receivable financing agreement		—			—			175,000			—			175,000
Debt issuance costs		(7,616	)		—			—			—			(7,616	)
Redemption on senior subordinated notes		(509,790	)		—			—			—			(509,790	)
Intercompany loan proceeds (payments)		175,000			(24,688	)		(180,346	)		30,034			—
Distributions to non-controlling interest		—			—			(541	)		—			(541	)
Contributions from (to) parent		89,967			498,226			—			(498,226	)		89,967
Dividends (to) from parent		(446,744	)		(566,386	)		—			566,386			(446,744	)
Net cash (used in) provided by financing activities		(45,230	)		(92,879	)		(5,887	)		98,194			(45,802	)
Effect of exchange rate changes in cash and cash equivalents		—			—			(1,112	)		—			(1,112	)
Net increase in cash and cash equivalents		(82,517	)		10,030			(21,490	)		—			(93,977	)
Cash and cash equivalents at beginning of period		86,546			1,625			26,800			—			114,971
Cash and cash equivalents at end of period	$	4,029		$	11,655		$	5,310		$	—		$	20,994

102

LAMAR MEDIA CORP.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(Dollars in thousands, except share and per share data)

Condensed Consolidating Statement of Cash Flows for the Year Ended December 31, 2017
	Lamar Media Corp.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Lamar Media Consolidated
Cash flows from operating activities:
Net cash provided by (used in) operating activities	$	383,370		$	602,504		$	2,174		$	(503,808	)	$	484,240
Cash flows from investing activities:
Acquisitions		3,750			(298,901	)		(2,154	)		—			(297,305	)
Capital expenditures		—			(104,325	)		(5,004	)		—			(109,329	)
Proceeds from disposition of assets and investments		—			6,053			—			—			6,053
Investment in subsidiaries		(301,055	)		—			—			301,055			—
(Increase) decrease in intercompany notes receivable		(7,624	)		—			—			7,624			—
Decrease in notes receivable		515			—			—			—			515
Net cash (used in) provided by investing activities		(304,414	)		(397,173	)		(7,158	)		308,679			(400,066	)
Cash flows from financing activities:
Principal payments on long-term debt		(16,993	)		—			—			—			(16,993	)
Payment on revolving credit facility		(477,000	)		—			—			—			(477,000	)
Proceeds received from revolving credit facility		495,000			—			—			—			495,000
Payment on senior credit facility		(247,500	)		—			—			—			(247,500	)
Proceeds received from senior credit facility		450,000			—			—			—			450,000
Debt issuance costs		(4,941	)		—			—			—			(4,941	)
Intercompany loan proceeds (payments)		—			—			7,624			(7,624	)		—
Distributions to non-controlling interest		—			—			(693	)		—			(693	)
Contributions from (to) parent		49,187			298,901			2,154			(301,055	)		49,187
Dividends (to) from parent		(252,925	)		(503,808	)		—			503,808			(252,925	)
Net cash (used in) provided by financing activities		(5,172	)		(204,907	)		9,085			195,129			(5,865	)
Effect of exchange rate changes in cash and cash equivalents		—			—			1,632			—			1,632
Net increase in cash and cash equivalents		73,784			424			5,733			—			79,941
Cash and cash equivalents at beginning of period		12,762			1,201			21,067			—			35,030
Cash and cash equivalents at end of period	$	86,546		$	1,625		$	26,800		$	—		$	114,971

103

LAMAR MEDIA CORP.

AND SUBSIDIARIES

Notes to Consolidated Financial Statements

(Dollars in thousands, except share and per share data)

Condensed Consolidating Statement of Cash Flows for the Year Ended December 31, 2016
	Lamar Media Corp.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Lamar Media Consolidated
Cash flows from operating activities:
Net cash provided by (used in) operating activities	$	394,215		$	597,948		$	7,526		$	(504,423	)	$	495,266
Cash flows from investing activities:
Acquisitions		—			(585,054	)		—			—			(585,054	)
Capital expenditures		—			(104,440	)		(3,172	)		—			(107,612	)
Proceeds from disposition of assets and investments		—			11,662			—			—			11,662
Investment in subsidiaries		(585,054	)		—			—			585,054			—
(Increase) decrease in intercompany notes receivable		(260	)		—			—			260			—
Decrease in notes receivable		21			—			—			—			21
Net cash (used in) provided by investing activities		(585,293	)		(677,832	)		(3,172	)		585,314			(680,983	)
Cash flows from financing activities:
Principal payments on long-term debt		(21,118	)		—			—			—			(21,118	)
Payment on revolving credit facility		(403,000	)		—			—			—			(403,000	)
Proceeds received from revolving credit facility		483,000			—			—			—			483,000
Proceeds received from note offering		400,000			—			—			—			400,000
Payment on senior credit facility		(300,000	)		—			—			—			(300,000	)
Proceeds received from senior credit facility		300,000			—			—			—			300,000
Debt issuance costs		(9,467	)		—			—			—			(9,467	)
Intercompany loan proceeds (payments)		—			—			260			(260	)		—
Distributions to non-controlling interest		—			—			(420	)		—			(420	)
Contributions from (to) parent		49,274			585,054			—			(585,054	)		49,274
Dividends (to) from parent		(299,804	)		(504,423	)		—			504,423			(299,804	)
Net cash provided by (used in) financing activities		198,885			80,631			(160	)		(80,891	)		198,465
Effect of exchange rate changes in cash and cash equivalents		—			—			455			—			455
Net increase in cash and cash equivalents		7,807			747			4,649			—			13,203
Cash and cash equivalents at beginning of period		4,955			454			16,418			—			21,827
Cash and cash equivalents at end of period	$	12,762		$	1,201		$	21,067		$	—		$	35,030

104

SCHEDULE II

LAMAR MEDIA CORP.

AND SUBSIDIARIES

Valuation and Qualifying Accounts

Years Ended December 31, 2018, 2017 and 2016

(In thousands)

	Balance at Beginning of Period		Charged to Costs and Expenses		Deductions		Balance at End of Period
Year ended December 31, 2018
Deducted in balance sheet from trade accounts receivable:
Allowance for doubtful accounts	$	10,055		8,472		7,366	$	11,161
Deducted in balance sheet from deferred tax assets:
Valuation allowance	$	20,120		3,814		—	$	23,934
Year ended December 31, 2017
Deducted in balance sheet from trade accounts receivable:
Allowance for doubtful accounts	$	9,356		6,762		6,063	$	10,055
Deducted in balance sheet from deferred tax assets:
Valuation allowance	$	16,167		3,953		—	$	20,120
Year ended December 31, 2016
Deducted in balance sheet from trade accounts receivable:
Allowance for doubtful accounts	$	8,984		6,870		6,498	$	9,356
Deducted in balance sheet from deferred tax assets:
Valuation allowance	$	13,827		2,340		—	$	16,167

105

SCHEDULE III

LAMAR MEDIA CORP.

AND SUBSIDIARIES

Schedule of Real Estate and Accumulated Depreciation

December 31, 2018, 2017 and 2016

(In thousands)

Description(1)

Encumbrances

Initial Cost(2)

Gross Carrying Amount(3)

Accumulated Depreciation

Construction Date

Acquisition Date

Useful Lives

359,138 Displays

—

—

$

3,201,434

$

(2,082,335

)

Various

Various

5 to 20 years

⁽¹⁾ No single asset exceeded 5% of the total gross carrying amount at December 31, 2018

⁽²⁾ This information is omitted, as it would be impracticable to compile such information on a site-by-site basis

⁽³⁾ Includes sites under construction

The following table summarizes activity for the Company’s real estate assets, which consists of advertising displays and the related accumulated depreciation.

	December 31, 2018			December 31, 2017			December 31, 2016
Gross real estate assets:
Balance at the beginning of the year	$	3,074,046		$	2,998,540		$	2,856,243
Capital expenditures on new advertising displays(4)		54,151			49,946			50,799
Capital expenditures on improvements/redevelopments of existing advertising displays		12,781			6,265			12,031
Capital expenditures other recurring		34,758			32,523			26,254
Land acquisitions(6)		15,368			14,904			30,283
Acquisition of advertising displays(5) (6)		82,617			32,109			69,821
Assets sold or written-off		(70,494	)		(61,306	)		(47,317	)
Foreign exchange		(1,793	)		1,065			426
Balance at the end of the year	$	3,201,434		$	3,074,046		$	2,998,540
Accumulated depreciation:
Balance at the beginning of the year	$	2,025,251		$	1,973,958		$	1,910,860
Depreciation		106,700			102,494			100,197
Assets sold or written-off		(48,488	)		(51,976	)		(37,373	)
Foreign exchange		(1,128	)		775			274
Balance at the end of the year	$	2,082,335		$	2,025,251		$	1,973,958

⁽⁴⁾ Includes non-cash amounts of $446, $921 and $379 at December 31, 2018, 2017 and 2016, respectively

⁽⁵⁾ Includes non-cash amounts of $7,199, $3,043 and $4,623 at December 31, 2018, 2017 and 2016, respectively

⁽⁶⁾ Includes preliminary allocation of assets acquired from Fairway at December 31, 2018

106

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

Lamar Advertising Company

None.

Lamar Media Corp.

None.

ITEM 9A. CONTROLS AND PROCEDURES

Conclusion Regarding the Effectiveness of Disclosure Controls and Procedures.

The Company’s and Lamar Media’s management, with the participation of the principal executive officer and principal financial officer of the Company and Lamar Media, have evaluated the effectiveness of the design and operation of the Company’s and Lamar Media’s disclosure controls and procedures, as such term is defined in Rules 13a-15(e) and 15d-15(e) promulgated under the Securities Exchange Act of 1934, as amended. Based on this evaluation, the principal executive officer and principal financial officer of the Company and Lamar Media concluded, as of December 31, 2018, that these disclosure controls and procedures are effective and designed to ensure that the information required to be disclosed in the Company’s and Lamar Media’s reports filed or submitted under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the requisite time periods. In management’s evaluation during the year ended December 31, 2018, the Company has excluded an assessment of the effectiveness of the design and operation of controls and procedures related to the operation of Fairway Outdoor Advertising (“Fairway”) assets which were purchased by the Company on December 21, 2018. During the year ended December 31, 2018, the net revenue of the Fairway assets was $1.9 million which was 0.1% of our total net revenues. As of December 31, 2018, the total assets of Fairway acquired by the Company amounted to $459.6 million (including $182.1 million of goodwill) which was 10.1% of the Company’s total assets.

Management’s Report on Internal Control Over Financial Reporting

Lamar Advertising Company

The Company’s Management Report on Internal Control Over Financial Reporting is set forth on page 47 of this combined Annual Report and is incorporated herein by reference.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. A control system, no matter how well designed and operated, can provide only reasonable assurance with respect to financial statement preparation and presentation. Projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Lamar Media Corp.

Lamar Media’s Management Report on Internal Control Over Financial Reporting is set forth on page 82 of this combined Annual Report and is incorporated herein by reference.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. A control system, no matter how well designed and operated, can provide only reasonable assurance with respect to financial statement preparation and presentation. Projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Changes in Internal Control Over Financial Reporting

There were no changes in the Company’s or Lamar Media’s internal control over financial reporting identified in connection with the evaluation of the Company’s and Lamar Media’s internal controls performed during the fourth fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Company’s or Lamar Media’s internal control over financial reporting.

107

ITEM 9B. OTHER INFORMATION

Lamar Advertising Company

None.

Lamar Media Corp.

None.

PART III

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

The information required by this item is incorporated by reference to Lamar Advertising Company’s Proxy Statement for its 2019 Annual Meeting of Stockholders to be filed with the SEC within 120 days after the end of the fiscal year ended December 31, 2018.

We have adopted a Code of Business Conduct and Ethics (the “code of ethics”) that applies to all of our directors, officers and employees. The code of ethics is filed as an exhibit that is incorporated by reference into this Annual Report. In addition, if we make any substantive amendments to the code of ethics or grant any wavier, including any implicit wavier, from a provision of the code to any of our executive officers or directors, we will disclose the nature of such amendment or waiver in a report on Form 8-K.

ITEM 11. EXECUTIVE COMPENSATION

The information required by this item is incorporated by reference to Lamar Advertising Company’s Proxy Statement for its 2019 Annual Meeting of Stockholders to be filed with the SEC within 120 days after the end of the fiscal year ended December 31, 2018.

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

The information required by this item is incorporated by reference to Lamar Advertising Company’s Proxy Statement for its 2019 Annual Meeting of Stockholders to be filed with the SEC within 120 days after the end of the fiscal year ended December 31, 2018.

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

The information required by this item is incorporated by reference to Lamar Advertising Company’s Proxy Statement for its 2019 Annual Meeting of Stockholders to be filed with the SEC within 120 days after the end of the fiscal year ended December 31, 2018.

ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES

The information required by this item is incorporated by reference to Lamar Advertising Company’s Proxy Statement for its 2019 Annual Meeting of Stockholders to be filed with the SEC within 120 days after the end of the fiscal year ended December 31, 2018.

PART IV

ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES

(A) 1. FINANCIAL STATEMENTS

The financial statements are listed under Part II, Item 8 of this Annual Report.

2. FINANCIAL STATEMENT SCHEDULES

The financial statement schedules are included under Part II, Item 8 of this Annual Report.

108

3. EXHIBITS

The exhibits filed as part of this report are listed on the Exhibit Index immediately following the signature page hereto, which Exhibit Index is incorporated herein by reference.

(B) Exhibits required by Item 601 of Regulation S-K are listed on the Exhibit Index immediately following the signature page hereto.

ITEM 16. FORM 10-K SUMMARY

None.

109

INDEX TO EXHIBITS

EXHIBIT NUMBER	DESCRIPTION	METHOD OF FILING
2(a)	Agreement and Plan of Merger by and between Lamar Advertising Company (the “Company”) and Lamar Advertising REIT Company dated August 27, 2014.	Previously filed as Exhibit 2.1 to the Company’s Current Report on Form 8-K (File No. 0-30242) filed on September 2, 2014 and incorporated herein by reference.
2(b)	Equity Purchase Agreement dated January 7, 2016 by and among CCOI Holdco Parent I, LLC, CCOI Holdco Sub I, LLC, and Lamar Media Corp (“Lamar Media”).	Previously filed as Exhibit 2.1 to the Company’s Current Report on Form 8-K (File No. 1-36756) filed on January 13, 2016 and incorporated herein by reference.
2(c)	Equity Purchase Agreement dated January 7, 2016 by and among CCOI Holdco Parent II, LLC, CCOI Holdco Sub II, LLC, and Lamar Media.	Previously filed as Exhibit 2.2 to the Company’s Current Report on Form 8-K (File No. 1-36756) filed on January 13, 2016 and incorporated herein by reference.
2(d)	Equity Purchase Agreement, dated December  21, 2018, by and among Lamar Media, FMG Outdoor Holdings, LLC, GTCR/FMG Blocker Corp., NCP Fairway, Inc., GTCR Fund XI/C LP, Newstone Capital Partners II, L.P., each of the Selling Members party thereto, and GTCR Partners XI/B LP, solely in its capacity as the Representative.	Previously filed as Exhibit 2.1 to the Company’s Current Report on Form 8-K (File No. 1-36756) filed on December 28, 2018 and incorporated herein by reference.
3(a)	Amended and Restated Certificate of Incorporation of the Company, as filed with the Secretary of the State of Delaware effective as of November 18, 2014.	Previously filed as Exhibit 3.1 to the Company’s Current Report on Form 8-K (File No. 1-36756) filed on November 19, 2014 and incorporated herein by reference.
3(b)	Certificate of Merger, effective as of November 18, 2014.	Previously filed as Exhibit 3.2 to the Company’s Current Report on Form 8-K (File No. 1-36756) filed on November 19, 2014 and incorporated herein by reference.
3(c)	Amended and Restated Bylaws of the Company, adopted as of November 18, 2014.	Previously filed as Exhibit 3.3 to the Company’s Current Report on Form 8-K (File No. 1-36756) filed on November 19, 2014 and incorporated herein by reference.
3(d)	Amended and Restated Certificate of Incorporation of Lamar Media.	Previously filed as Exhibit 3.2 to Lamar Media’s Quarterly Report on Form 10-Q for the period ended March 31, 2007 (File No. 0-30242) filed on May 10, 2007 and incorporated herein by reference.
3(e)	Amended and Restated Bylaws of Lamar Media.	Previously filed as Exhibit 3.1 to Lamar Media’s Quarterly Report on Form 10-Q for the period ended September 30, 1999 (File No. 1-12407) filed on November 12, 1999 and incorporated herein by reference.
4(a)(1)	Specimen certificate for the shares of Class A common stock of the Company.	Previously filed as Exhibit 4.2 to the Company’s Current Report on Form 8-K (File No. 1-36756) filed on November 19, 2014 and incorporated herein by reference.

110

EXHIBIT NUMBER	DESCRIPTION	METHOD OF FILING
4(a)(2)	Specimen certificate for the shares of Class B common stock of the Company.	Previously filed as Exhibit 4.3 to the Company’s Current Report on Form 8-K (File No. 1-36756) filed on November 19, 2014 and incorporated herein by reference.
4(b)(1)	Indenture, dated as of February 9, 2012, among Lamar Media, the Guarantors named therein and The Bank of New York Mellon Trust Company, N.A., as Trustee, relating to Lamar Media’s 5 7/8% Senior Subordinated Notes due 2022.	Previously filed as Exhibit 4.1 to the Company’s Current Report on Form 8-K (File No. 0-30242) filed on February 14, 2012 and incorporated herein by reference.
4(b)(2)	Form of 5 7/8% Senior Subordinated Notes due 2022.	Previously filed with the Indenture dated February 9, 2012, filed as Exhibit 4.1 to the Company’s Current Report on Form 8-K (File No. 0-30242) filed on February 14, 2012, and incorporated herein by reference.
4(b)(3)	Form of 5 7/8% Senior Subordinated Exchange Notes due 2022.	Previously filed with the Indenture dated February 9, 2012, filed as Exhibit 4.1 to the Company’s Current Report on Form 8-K (File No. 0-30242) filed on February 14, 2012, and incorporated herein by reference.
4(b)(4)	Supplemental Indenture to the Indenture dated as of February 9, 2012, among Lamar Media, the Guarantors named therein and The Bank of New York Mellon Trust Company, N.A., as Trustee, dated as of December 30, 2012, relating to Lamar Media’s 5 7/8% Senior Subordinated Notes due 2022.	Previously filed as Exhibit 4(g)(4) to the Company’s Annual Report on Form 10-K for the year ended December 31, 2012 (File No. 0-30242) filed on February 28, 2013 and incorporated herein by reference.
4(b)(5)	Supplemental Indenture to the Indenture dated as of February 9, 2012, among Lamar Media, the Guarantors named therein and The Bank of New York Mellon Trust Company, N.A., as Trustee, dated as of December 30, 2012, relating to Lamar Media’s 5 7/8% Senior Subordinated Notes due 2022.	Previously filed as Exhibit 4(g)(5) to the Company’s Annual Report on Form 10-K for the year ended December 31, 2012 (File No. 0-30242) filed on February 28, 2013 and incorporated herein by reference.
4(b)(6)	Supplemental Indenture to the Indenture dated as of February 9, 2012, among Lamar Media, the Guarantors named therein and The Bank of New York Mellon Trust Company, N.A., as Trustee, dated as of December 30, 2012, relating to Lamar Media’s 5 7/8% Senior Subordinated Notes due 2022.	Previously filed as Exhibit 4(g)(6) to the Company’s Annual Report on Form 10-K for the year ended December 31, 2012 (File No. 0-30242) filed on February 28, 2013 and incorporated herein by reference.
4(b)(7)	Supplemental Indenture to the Indenture dated as of February 9, 2012, among Lamar Media, the Guarantors named therein and The Bank of New York Mellon Trust Company, N.A., as Trustee, dated as of May 31, 2013, relating to Lamar Media’s 5 7/8% Senior Subordinated Notes due 2022.	Previously filed as Exhibit 4.3 to the Company’s Quarterly Report on Form 10-Q for the period ended June 30, 2013 (File No. 0-30242) filed on August 8, 2013 and incorporated herein by reference.
4(b)(8)	Supplemental Indenture to the Indenture dated as of February 9, 2012, among Lamar Media, the Guarantors named therein and The Bank of New York Mellon Trust Company, N.A., as Trustee, dated as of January 2, 2014, relating to Lamar Media’s 5 7/8% Senior Subordinated Notes due 2022.	Previously filed as Exhibit 4.4 to the Company’s Quarterly Report on Form 10-Q for the period ended March 31, 2014 (File No. 0-30242) filed on May 7, 2014 and incorporated herein by reference.
4(b)(9)	Supplemental Indenture to the Indenture dated as of February 9, 2012, among Lamar Media, the Guarantors named therein and The Bank of New York Mellon Trust Company, N.A., as Trustee, dated as of July 28, 2015, relating to Lamar Media’s 5 7/8% Senior Subordinated Notes due 2022.	Previously filed as Exhibit 4.3 to the Company’s Quarterly Report on Form 10-Q for the period ended September 30, 2015 (File No. 1-36756) filed on November 5, 2015 and incorporated herein by reference.

111

EXHIBIT NUMBER	DESCRIPTION	METHOD OF FILING
4(b)(10)	Supplemental Indenture to the Indenture dated as of February 9, 2012, among Lamar Media, the Guarantors named therein and The Bank of New York Mellon Trust Company, N.A., as Trustee, dated as of December 14, 2017, relating to Lamar Media’s 5 7/8% Senior Subordinated Notes due 2022.	Previously filed as Exhibit 4(b)(10) to the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 (File No. ‎1-36756‎) filed on February 27, 2018 and incorporated herein by reference.
4(b)(11)	Supplemental Indenture to the Indenture dated as of February 9, 2012, among Lamar Media, the Guarantors named therein and The Bank of New York Mellon Trust Company, N.A., as Trustee, dated as of December 14, 2017, relating to Lamar Media’s 5 7/8% Senior Subordinated Notes due 2022.	Previously filed as Exhibit 4(b)(11) to the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 (File No. ‎1-36756‎) filed on February 27, 2018 and incorporated herein by reference.
4(c)(1)	Indenture, dated as of October 30, 2012, among Lamar Media, the Guarantors named therein and The Bank of New York Mellon Trust Company, N.A., as Trustee, relating to Lamar Media’s 5% Senior Subordinated Notes due 2023.	Previously filed as Exhibit 4.1 to the Company’s Current Report on Form 8-K (File No. 0-30242) filed on October 31, 2012 and incorporated herein by reference.
4(c)(2)	Form of 5% Senior Subordinated Notes due 2023.	Previously filed with the Indenture dated October 30, 2012, filed as Exhibit 4.1 to the Company’s Current Report on Form 8-K (File No. 0-30242) filed on October 31, 2012, and incorporated herein by reference.
4(c)(3)	Form of 5% Senior Subordinated Exchange Notes due 2023.	Previously filed with the Indenture dated October 30, 2012, filed as Exhibit 4.1 to the Company’s Current Report on Form 8-K (File No. 0-30242) filed on October 31, 2012, and incorporated herein by reference.
4(c)(4)	Supplemental Indenture to the Indenture dated as of October 30, 2012, among Lamar Media, the Guarantors named therein and The Bank of New York Mellon Trust Company, N.A., as Trustee, dated as of December 30, 2012, relating to Lamar Media’s 5% Senior Subordinated Notes due 2023.	Previously filed as Exhibit 4(h)(4) to the Company’s Annual Report on Form 10-K for the year ended December 31, 2012 (File No. 0-30242) filed on February 28, 2013 and incorporated herein by reference.
4(c)(5)	Supplemental Indenture to the Indenture dated as of October 30, 2012, among Lamar Media, the Guarantors named therein and The Bank of New York Mellon Trust Company, N.A., as Trustee, dated as of December 30, 2012, relating to Lamar Media’s 5% Senior Subordinated Notes due 2023.	Previously filed as Exhibit 4(h)(5) to the Company’s Annual Report on Form 10-K for the year ended December 31, 2012 (File No. 0-30242) filed on February 28, 2013 and incorporated herein by reference.
4(c)(6)	Supplemental Indenture to the Indenture dated as of October 30, 2012, among Lamar Media, the Guarantors named therein and The Bank of New York Mellon Trust Company, N.A., as Trustee, dated as of December 30, 2012, relating to Lamar Media’s 5% Senior Subordinated Notes due 2023.	Previously filed as Exhibit 4(h)(6) to the Company’s Annual Report on Form 10-K for the year ended December 31, 2012 (File No. 0-30242) filed on February 28, 2013 and incorporated herein by reference.
4(c)(7)	Supplemental Indenture to the Indenture dated as of October 30, 2012, among Lamar Media, the Guarantors named therein and The Bank of New York Mellon Trust Company, N.A., as Trustee, dated as of May 31, 2013, relating to Lamar Media’s 5% Senior Subordinated Notes due 2023.	Previously filed as Exhibit 4.4 to the Company’s Quarterly Report on Form 10-Q for the period ended June 30, 2013 (File No. 0-30242) filed on August 8, 2013 and incorporated herein by reference.
4(c)(8)	Supplemental Indenture to the Indenture dated as of October 30, 2012, among Lamar Media, the Guarantors named therein and The Bank of New York Mellon Trust Company, N.A., as Trustee, dated as of January 2, 2014, relating to Lamar Media’s 5% Senior Subordinated Notes due 2023.	Previously filed as Exhibit 4.5 to the Company’s Quarterly Report on Form 10-Q for the period ended March 31, 2014 (File No. 0-30242) filed on May 7, 2014 and incorporated herein by reference.

112

EXHIBIT NUMBER	DESCRIPTION	METHOD OF FILING
4(c)(9)	Supplemental Indenture to the Indenture dated as of October 30, 2012, among Lamar Media, the Guarantors named therein and The Bank of New York Mellon Trust Company, N.A., as Trustee, dated as of July 28, 2015, relating to Lamar Media’s 5% Senior Subordinated Notes due 2023.	Previously filed as Exhibit 4.2 to the Company’s Quarterly Report on Form 10-Q for the period ended September 30, 2015 (File No. 1-36756) filed on November 5, 2015 and incorporated herein by reference.
4(c)(10)	Supplemental Indenture to the Indenture dated as of October 30, 2012, among Lamar Media, the Guarantors named therein and The Bank of New York Mellon Trust Company, N.A., as Trustee, dated as of December 14, 2017, relating to Lamar Media’s 5% Senior Subordinated Notes due 2023.	Previously filed as Exhibit 4(c)(10) to the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 (File No. ‎1-36756‎) filed on February 27, 2018 and incorporated herein by reference.
4(c)(11)	Supplemental Indenture to the Indenture dated as of October 30, 2012, among Lamar Media, the Guarantors named therein and The Bank of New York Mellon Trust Company, N.A., as Trustee, dated as of December 14, 2017, relating to Lamar Media’s 5% Senior Subordinated Notes due 2023.	Previously filed as Exhibit 4(c)(11) to the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 (File No. ‎1-36756‎) filed on February 27, 2018 and incorporated herein by reference.
4(d)(1)	Indenture, dated as of January 10, 2014, between Lamar Media, the Guarantors named therein and The Bank of New York Mellon Trust Company, N.A., as Trustee, relating to Lamar Media’s 5 3/8% Senior Notes due 2024.	Previously filed as Exhibit 4.1 to the Company’s Current Report on Form 8-K (File No. 0-30242) filed on January 15, 2014 and incorporated herein by reference.
4(d)(2)	Form of 5 3/8% Senior Notes due 2024.	Previously filed with the Indenture dated January 10, 2014, filed as Exhibit 4.1 to the Company’s Current Report on Form 8-K (File No. 0-30242) filed on January 15, 2014 and incorporated herein by reference.
4(d)(3)	Form of 5 3/8% Senior Exchange Notes due 2024.	Previously filed with the Indenture dated January 10, 2014, filed as Exhibit 4.1 to the Company’s Current Report on Form 8-K (File No. 0-30242) filed on January 15, 2014 and incorporated herein by reference.
4(d)(4)	Supplemental Indenture to the Indenture dated as of January 10, 2014, among Lamar Media, the Guarantors named therein and The Bank of New York Mellon Trust Company, N.A., as Trustee, dated as of July 28, 2015, relating to Lamar Media’s 5 3/8% Senior Notes due 2024.	Previously filed as Exhibit 4.1 to the Company’s Quarterly Report on Form 10-Q for the period ended September 30, 2015 (File No. 1-36756) filed on November 5, 2015 and incorporated herein by reference.
4(d)(5)	Supplemental Indenture to the Indenture dated as of January 10, 2014, among Lamar Media, the Guarantors named therein and The Bank of New York Mellon Trust Company, N.A., as Trustee, dated as of December 14, 2017, relating to Lamar Media’s 5 3/8% Senior Notes due 2024.	Previously filed as Exhibit 4(d)(5) to the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 (File No. ‎1-36756‎) filed on February 27, 2018 and incorporated herein by reference.
4(d)(6)	Supplemental Indenture to the Indenture dated as of January 10, 2014, among Lamar Media, the Guarantors named therein and The Bank of New York Mellon Trust Company, N.A., as Trustee, dated as of December 14, 2017, relating to Lamar Media’s 5 3/8% Senior Notes due 2024.	Previously filed as Exhibit 4(d)(6) to the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 (File No. ‎1-36756‎) filed on February 27, 2018 and incorporated herein by reference.
4(e)(1)	Indenture, dated as of January 28, 2016, between Lamar Media, the Guarantors named therein and The Bank of New York Mellon Trust Company, N.A., as Trustee, relating to Lamar Media’s 5 3/4% Senior Notes due 2026.	Previously filed as Exhibit 4.1 to the Company’s Current Report on Form 8-K (File No. 1-36756) filed on February 1, 2016 and incorporated herein by reference.

113

EXHIBIT NUMBER	DESCRIPTION	METHOD OF FILING
4(e)(2)	Form of 5 3/4% Senior Notes due 2026.	Previously filed with the Indenture dated January 28, 2016, filed as Exhibit 4.1 to the Company’s Current Report on Form 8-K (File No. 1-36756) filed on February 1, 2016 and incorporated herein by reference.
4(e)(3)	Form of 5 3/4% Senior Exchange Notes due 2026.	Previously filed with the Indenture dated January 28, 2016, filed as Exhibit 4.1 to the Company’s Current Report on Form 8-K (File No. 1-36756) filed on February 1, 2016 and incorporated herein by reference.
4(e)(4)	Supplemental Indenture to the Indenture dated as of January 28, 2016, among Lamar Media, the Guarantors named therein and The Bank of New York Mellon Trust Company, N.A., as Trustee, dated as of December 14, 2017, relating to Lamar Media’s 5 3/4% Senior Notes due 2026.	Previously filed as Exhibit 4(e)(4) to the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 (File No. ‎1-36756‎) filed on February 27, 2018 and incorporated herein by reference.
4(e)(5)	Supplemental Indenture to the Indenture dated as of January 28, 2016, among Lamar Media, the Guarantors named therein and The Bank of New York Mellon Trust Company, N.A., as Trustee, dated as of December 14, 2017, relating to Lamar Media’s 5 3/4% Senior Notes due 2026.	Previously filed as Exhibit 4(e)(5) to the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 (File No. ‎1-36756‎) filed on February 27, 2018 and incorporated herein by reference.
10(a)(1)*	Lamar Advertising Company 1996 Equity Incentive Plan, as amended and restated.	Previously filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K (File No. 0-30242) filed on May 24, 2013 and incorporated herein by reference.
10(a)(2)*	Form of Stock Option Agreement under the 1996 Equity Incentive Plan, as amended.	Previously filed as Exhibit 10.14 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2004 (File No. 0-30242) filed on March 10, 2005 and incorporated herein by reference.
10(a)(3)*	Form of Restricted Stock Agreement.	Previously filed as Exhibit 10.16 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2005 (File No. 0-30242) filed on March 15, 2006 and incorporated herein by reference.
10(a)(4)*	Form of Restricted Stock Agreement for Non-Employee directors.	Previously filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K (File No. 0-30242) filed on May 30, 2007 and incorporated herein by reference.
10(b)*	2009 Employee Stock Purchase Plan, as amended.	Previously filed as Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q for the period ended September 30, 2017 (File No. 1-36756) filed on November 6, 2017 and incorporated herein by reference.
10(c)(1)*	Lamar Deferred Compensation Plan (as amended).	Previously filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K (File No. 0-30242) filed on August 27, 2007 and incorporated herein by reference.

114

EXHIBIT NUMBER	DESCRIPTION	METHOD OF FILING
10(c)(2)*	Form of Trust Agreement for the Lamar Deferred Compensation Plan.	Previously filed as Exhibit 10.2 to the Company’s Current Report on Form 8-K (File No. 0-30242) filed on December 14, 2005 and incorporated herein by reference.
10(c)(3)*	Amendment to the Lamar Deferred Compensation Plan dated December 13, 2013.	Previously filed as Exhibit 10(d)(3) to the Company’s Annual Report on Form 10-K for the year ended December 31, 2013 (File No. 0-30242) filed on February 27, 2014 and incorporated herein by reference.
10(c)(1)*	Summary of Management Compensatory Arrangements, dated March 28, 2016.	Previously filed on the Company’s Current Report on Form 8-K (File No. 1-36756) filed on March 29, 2016 and incorporated herein by reference.
10(d)(2)*	Summary of Non-Management Director Compensatory Arrangements, dated May 26, 2016.	Previously filed on the Company’s Current Report on Form 8-K (File No. 1-36756) filed on May 31, 2016 and incorporated herein by reference.
10(e)(1)	Receivables Financing Agreement, dated December  18, 2018, by and among Lamar Media, as initial Servicer, Lamar TRS Receivables, LLC and Lamar QRS	Previously filed as Exhibit 10.1 to the ‎Company’s Current Report on Form 8-K (File No. 1-36756) filed on December 21, 2018 and incorporated herein by reference.
10(e)(2)	Purchase and Sale Agreement, dated December 18, 2018, by and among certain subsidiaries of Lamar Media, Lamar Media, as initial Servicer, and Lamar QRS Receivables, LLC as Buyer.	Previously filed as Exhibit 10.2 to the ‎Company’s Current Report on Form 8-K (File ‎No. 1-36756) filed on December 21, 2018 ‎and incorporated herein by reference.‎
10(e)(3)	Purchase and Sale Agreement, dated December 18, 2018, by and among certain subsidiaries of Lamar Media, Lamar Media, as initial Servicer, and Lamar TRS Receivables, LLC as Buyer.	Previously filed as Exhibit 10.3 to the ‎Company’s Current Report on Form 8-K (File ‎No. 1-36756) filed on December 21, 2018 ‎and incorporated herein by reference.‎
10(e)(4)	Performance Guaranty of Lamar Media dated December 18, 2018 in favor of PNC Bank, National Association.	Previously filed as Exhibit 10.4 to the ‎Company’s Current Report on Form 8-K (File ‎No. 1-36756) filed on December 21, 2018 ‎and incorporated herein by reference.‎
10(f)(1)	Credit Agreement dated as of April 28, 2010 by and among Lamar Media, Lamar Advertising of Puerto Rico, Inc., the Subsidiary Guarantors named therein, each additional Subsidiary Borrower that may be designated as such thereunder, the Lenders named therein, and JPMorgan Chase Bank, N.A., as administrative agent.	Previously filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K (File No. 0-30242) filed on May 3, 2010, and incorporated herein by reference.
10(f)(2)	Amendment No. 1, dated as of June 11, 2010, to the Credit Agreement dated as of April 28, 2010 by and among Lamar Media, Lamar Advertising of Puerto Rico, Inc., the Subsidiary Guarantors named therein, each additional Subsidiary Borrower that may be designated as such thereunder, the Lenders named therein, and JPMorgan Chase Bank, N.A., as administrative agent.	Previously filed as Exhibit 10(p)(2) to the Company’s Annual Report on Form 10-K for the year ended December 31, 2010 (File No. 0-30242) filed on February 25, 2011 and incorporated herein by reference.

115

EXHIBIT NUMBER	DESCRIPTION	METHOD OF FILING
10(f)(3)	Amendment No. 2, dated as of November 18, 2010, to the Credit Agreement dated as of April 28, 2010 by and among Lamar Media, Lamar Advertising of Puerto Rico, Inc., the Subsidiary Guarantors named therein, each additional Subsidiary Borrower that may be designated as such thereunder, the Lenders named therein, and JPMorgan Chase Bank, N.A., as administrative agent.	Previously filed as Exhibit 10(p)(3) to the Company’s Annual Report on Form 10-K for the year ended December 31, 2010 (File No. 0-30242) filed on February 25, 2011 and incorporated herein by reference.
10(f)(4)	Restatement Agreement, dated as of February 9, 2012, to the Credit Agreement dated as of April 28, 2010 by and among Lamar Media, Lamar Advertising of Puerto Rico, Inc., the Subsidiary Guarantors named therein, each additional Subsidiary Borrower that may be designated as such thereunder, the Lenders named therein, and JPMorgan Chase Bank, N.A., as administrative agent (including the Amended and Restated Credit Agreement).	Previously filed as Exhibit 10.2 to the Company’s Current Report on Form 8-K (File No. 0-30242) filed on February 14, 2012 and incorporated herein by reference.
10(f)(5)	Amendment No. 1, dated as of October 24, 2013, to the Amended and Restated Credit Agreement dated as of February 9, 2012 among Lamar Media, the subsidiary borrower party thereto, the subsidiary guarantors party thereto, the lenders party thereto and JPMorgan Chase Bank, N.A., as administrative agent.	Previously filed as Exhibit 10(f)(11) to the Company’s Annual Report on Form 10-K for the year ended December 31, 2013 (File No. 0-30242) filed on February 27, 2014 and incorporated herein by reference.
10(f)(6)	Second Restatement Agreement, dated as of February 3, 2014, by and among Lamar Media, the Company, the Subsidiary Guarantors named therein, the Lenders named therein, and JPMorgan Chase Bank, N.A., as administrative agent (including the Second Amended and Restated Credit Agreement as Exhibit A thereto).	Previously filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K (File No. 0-30242) filed on February 7, 2014 and incorporated herein by reference.

116

EXHIBIT NUMBER	DESCRIPTION	METHOD OF FILING
10(f)(7)	Amendment No. 1, dated as of April 18, 2014, to the Second Amended and Restated Credit Agreement, dated as of February 3, 2014, by and among Lamar Media, the Company, the Subsidiary Guarantors named therein, the Lenders named therein, and JPMorgan Chase Bank, N.A., as administrative agent.	Previously filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K (File No. 0-30242) filed on April 22, 2014 and incorporated herein by reference.
10(f)(8)	Incremental Amendment No. 1 dated January 7, 2016 to the Second Amended and Restated Credit Agreement, dated as of February 3, 2014, as amended by and among Lamar Media, the Company, the Subsidiary Guarantors named therein, the Lenders named therein, and JPMorgan Chase Bank, N.A., as Administrative Agent.	Previously filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K (File No. 1-36756) filed on January 13, 2016 and incorporated herein by reference.
10(f)(9)	Amendment No. 2, dated as of March 4, 2016, to the Second Amended and Restated Credit Agreement, dated as of February 3, 2014, as amended by and among Lamar Media, the Company, certain of Lamar Media’s subsidiaries as Guarantors, JPMorgan Chase Bank, N.A. as Administrative Agent and the Lenders party thereto.	Previously filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K (File No. 1-36756) filed on March 8, 2016 and incorporated herein by reference.
10(f)(10)	Third Restatement Agreement, dated as of May 15, 2017, by and among Lamar Media, the Company, the Subsidiary Guarantors named therein, the Lenders named therein, and JPMorgan Chase Bank, N.A., as Administrative Agent (including the Third Amended and Restated Credit Agreement as Exhibit A thereto).	Previously filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K (File No. 1-36756) filed on May 19, 2017 and incorporated herein by reference.
10(f)(11)	Amendment No. 1 dated as of March  16, 2018 to the Third Restatement Agreement, by and among Lamar Media, the Company, the subsidiary guarantors named therein, the Lenders named therein, and JPMorgan Chase Bank, N.A., as administrative agent (including the Third Amended and Restated Credit Agreement, as amended for Amendment No. 1, as Exhibit A thereto).	Previously filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K (File No. 1-36756) filed on March 21, 2018 and incorporated herein by reference.
10(f)(12)	Amendment No. 2 dated as of December  6, 2018 to the Third Restatement Agreement, by and among Lamar Media, the Company, the subsidiary guarantors named therein, the Lenders named therein, and JPMorgan Chase Bank, N.A., as administrative agent (including the Third Amended and Restated Credit Agreement, as amended for Amendment No. 2, as Exhibit A thereto).	Previously filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K (File No. 1-36756) filed on December 12, 2018 and incorporated herein by reference.
10(f)(13)	Joinder Agreement, dated as of July 19, 2010, to the Credit Agreement dated as of April 28, 2010 among Lamar Media, the subsidiary borrower party thereto, the subsidiary guarantors party thereto, the lenders party thereto and JPMorgan Chase Bank, N.A., as administrative agent, by Arizona Logos, L.L.C.	Previously filed as Exhibit 10(p)(4) to the Company’s Annual Report on Form 10-K for the year ended December 31, 2011 (File No. 0-30242) filed on February 27, 2012 and incorporated herein by reference.
10(f)(14)	Joinder Agreement, dated as of April 21, 2011, to the Credit Agreement dated as of April 28, 2010 among Lamar Media, the subsidiary borrower party thereto, the subsidiary guarantors party thereto, the lenders party thereto and JPMorgan Chase Bank, N.A., as administrative agent, by Wisconsin Logos, LLC.	Previously filed as Exhibit 10(p)(5) to the Company’s Annual Report on Form 10-K for the year ended December 31, 2011 (File No. 0-30242) filed on February 27, 2012 and incorporated herein by reference.
10(f)(15)	Joinder Agreement, dated as of August 26, 2011, to the Credit Agreement dated as of April 28, 2010 among Lamar Media, the subsidiary borrower party thereto, the subsidiary guarantors party thereto, the lenders party thereto and JPMorgan Chase Bank, N.A., as administrative agent, by Montana Logos, LLC.	Previously filed as Exhibit 10(p)(6) to the Company’s Annual Report on Form 10-K for the year ended December 31, 2011 (File No. 0-30242) filed on February 27, 2012 and incorporated herein by reference.

117

EXHIBIT NUMBER	DESCRIPTION	METHOD OF FILING
10(f)(16)	Joinder Agreement, dated as of November 14, 2012, to the Amended and Restated Credit Agreement dated as of February 9, 2012 among Lamar Media, the subsidiary borrower party thereto, the subsidiary guarantors party thereto, the lenders party thereto and JPMorgan Chase Bank, N.A., as administrative agent, by NextMedia Outdoor, Inc.	Previously filed as Exhibit 10(f)(9) to the Company’s Annual Report on Form 10-K for the year ended December 31, 2012 (File No. 0-30242) filed on February 28, 2013 and incorporated herein by reference.
10(f)(17)	Joinder Agreement, dated as of November 14, 2012, to the Amended and Restated Credit Agreement dated as of February 9, 2012 among Lamar Media, the subsidiary borrower party thereto, the subsidiary guarantors party thereto, the lenders party thereto and JPMorgan Chase Bank, N.A., as administrative agent, by NextMedia Outdoor, Inc.	Previously filed as Exhibit 10(f)(9) to the Company’s Annual Report on Form 10-K for the year ended December 31, 2012 (File No. 0-30242) filed on February 28, 2013 and incorporated herein by reference.
10(f)(18)	Joinder Agreement, dated as of November 14, 2012, to the Amended and Restated Credit Agreement dated as of February 9, 2012 among Lamar Media, the subsidiary borrower party thereto, the subsidiary guarantors party thereto, the lenders party thereto and JPMorgan Chase Bank, N.A., as administrative agent, by NMG Outdoor I Corp.	Previously filed as Exhibit 10(f)(10) to the Company’s Annual Report on Form 10-K for the year ended December 31, 2012 (File No. 0-30242) filed on February 28, 2013 and incorporated herein by reference.
10(f)(19)	Joinder Agreement, dated as of December 5, 2013, to the Amended and Restated Credit Agreement dated as of February 9, 2012 among Lamar Media, the subsidiary borrower party thereto, the subsidiary guarantors party thereto, the lenders party thereto and JPMorgan Chase Bank, N.A., as administrative agent, by Lamar TRS Holdings, LLC.	Previously filed as Exhibit 10(f)(12) to the Company’s Annual Report on Form 10-K for the year ended December 31, 2013 (File No. 0-30242) filed on February 27, 2014 and incorporated herein by reference.
10(f)(20)	Joinder Agreement, dated as of December 5, 2013, to the Amended and Restated Credit Agreement dated as of February 9, 2012 among Lamar Media, the subsidiary borrower party thereto, the subsidiary guarantors party thereto, the lenders party thereto and JPMorgan Chase Bank, N.A., as administrative agent, by Lamar Service Company, LLC.	Previously filed as Exhibit 10(f)(13) to the Company’s Annual Report on Form 10-K for the year ended December 31, 2013 (File No. 0-30242) filed on February 27, 2014 and incorporated herein by reference.
10(f)(21)	Joinder Agreement, dated as of December 5, 2013, to the Amended and Restated Credit Agreement dated as of February 9, 2012 among Lamar Media, the subsidiary borrower party thereto, the subsidiary guarantors party thereto, the lenders party thereto and JPMorgan Chase Bank, N.A., as administrative agent, by Lamar Investments, LLC.	Previously filed as Exhibit 10(f)(14) to the Company’s Annual Report on Form 10-K for the year ended December 31, 2013 (File No. 0-30242) filed on February 27, 2014 and incorporated herein by reference.
10(f)(22)	Joinder Agreement, dated as of December 5, 2013, to the Amended and Restated Credit Agreement dated as of February 9, 2012 among Lamar Media, the subsidiary borrower party thereto, the subsidiary guarantors party thereto, the lenders party thereto and JPMorgan Chase Bank, N.A., as administrative agent, by Lamar Transit, LLC.	Previously filed as Exhibit 10(f)(15) to the Company’s Annual Report on Form 10-K for the year ended December 31, 2013 (File No. 0-30242) filed on February 27, 2014 and incorporated herein by reference.
10(f)(23)	Joinder Agreement, dated as of July 28, 2015, to the Second Amended and Restated Credit Agreement dated as of February 3, 2014, as amended, among Lamar Media, the subsidiary borrower party thereto, the subsidiary guarantors party thereto, the lenders party thereto and JPMorgan Chase Bank, N.A., as administrative agent, by Lamar Alliance Airport Advertising Company.	Previously filed as Exhibit 10(f)(20) to the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 (File No. 1-36756) filed on February 24, 2017 and incorporated herein by reference.

118

EXHIBIT NUMBER	DESCRIPTION	METHOD OF FILING
10(f)(24)	Joinder Agreement, dated as of January 30, 2018, to the Third Amended and Restated Credit Agreement dated as of May 15, 2017, as amended, among Lamar Media, the subsidiary borrower party thereto, the subsidiary guarantors party thereto, the lenders party thereto and JPMorgan Chase Bank, N.A., as administrative agent, by Interstate Logos TRS, LLC.	Previously filed as Exhibit 10.1 to the Company’s Quarterly Report on Form 10-Q for the period ended March 31, 2018 (File No. 1-36756) filed on May 5, 2018 and incorporated herein by reference.‎
10(h)	Registration Rights Agreement, dated as of October 30, 2012, between Lamar Media, the Guarantors named therein and the Initial Purchasers named therein.	Previously filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K (File No. 0-30242) filed on October 31, 2012 and incorporated herein by reference.
10(i)	Registration Rights Agreement, dated as of January 10, 2014, between Lamar Media, the Guarantors named therein and J.P. Morgan Securities LLC, as representative for the Initial Purchasers named therein.	Previously filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K (File No. 0-30242) filed on January 15, 2014 and incorporated herein by reference.
10(j)	Registration Rights Agreement, dated as of January 28, 2016, between Lamar Media, the Guarantors named therein and J.P. Morgan Securities LLC, as representative for the Initial Purchasers named therein.	Previously filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K (File No. 1-36756) filed on February 1, 2016 and incorporated herein by reference.
10(k)*	Form of Indemnification Agreement between the Company and the directors and executive officers of the Company, dated as of November 18, 2014.	Previously filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K (File No. 1-36756) filed on November 19, 2014 and incorporated herein by reference.
14(a)	Lamar Advertising Company Code of Business Conduct and Ethics.	Previously filed as Exhibit 14.1 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2003 (File No. 0-30242) filed on March 10, 2004 and incorporated herein by reference.
21(a)	Subsidiaries of the Company.	Filed herewith.
23(a)	Consent of KPMG LLP.	Filed herewith.
31(a)	Certification of the Chief Executive Officer of the Company and Lamar Media pursuant to Securities Exchange Act Rules 13a-14(a) and 15d-14(a) as adopted pursuant to Section 302 of the Sarbanes- Oxley Act of 2002.	Filed herewith.
31(b)	Certification of the Chief Financial Officer of the Company and Lamar Media pursuant to Securities Exchange Act Rules 13a-14(a) and 15d-14(a) as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.	Filed herewith.
32(a)	Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.	Filed herewith.

119

EXHIBIT NUMBER	DESCRIPTION	METHOD OF FILING
101	The following materials from the combined Annual Report of the Company and Lamar Media Corp. on Form 10-K for the year ended December 31, 2018, formatted in XBRL (eXtensible Business Reporting Language): (i) Consolidated Balance Sheets as of December 31, 2018 and 2017 of the Company and Lamar Media, (ii) Consolidated Statements of Income and Comprehensive Income for the years ended December 31, 2018, 2017 and 2016 of the Company and Lamar Media, (iii) Consolidated Statements of Stockholders’ Equity for the years ended December 31, 2018, 2017 and 2016 of the Company and Lamar Media, (iv) Consolidated Statements of Cash Flows for the years ended December 31, 2018, 2017 and 2016 of the Company and Lamar Media, and (v) Notes to Consolidated Financial Statements of the Company and Lamar Media.

* Denotes management contract or compensatory plan or arrangement in which the executive officers or directors of the Company participate.

120

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	LAMAR ADVERTISING COMPANY
February 25, 2019	By:	/s/ Sean E. Reilly
		Sean E. Reilly
		Chief Executive Officer

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

Signature	Title	Date
/s/ Sean E. Reilly	Chief Executive Officer (Principal Executive Officer)	2/25/19
Sean E. Reilly
/s/ Keith A. Istre	Chief Financial Officer (Principal Financial and Accounting Officer)	2/25/19
Keith A. Istre
/s/ Kevin P. Reilly, Jr.	President and Director	2/25/19
Kevin P. Reilly, Jr.
/s/ Wendell S. Reilly	Director	2/25/19
Wendell S. Reilly
/s/ Stephen P. Mumblow	Director	2/25/19
Stephen P. Mumblow
/s/ Marshall A. Loeb	Director	2/25/19
Marshall A. Loeb
/s/ Thomas Reifenheiser	Director	2/25/19
Thomas Reifenheiser
/s/ Anna Reilly	Director	2/25/19
Anna Reilly
/s/ John E. Koerner, III	Director	2/25/19
John E. Koerner, III

121

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	LAMAR MEDIA CORP.
February 25, 2019	By:	/s/ Sean E. Reilly
		Sean E. Reilly
		Chief Executive Officer

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

Signature	Title	Date
/s/ Kevin P. Reilly, Jr.	President and Director	2/25/19
Kevin P. Reilly, Jr.
/s/ Sean E. Reilly	Chief Executive Officer and Director (Principal Executive Officer)	2/25/19
Sean E. Reilly
/s/ Keith A. Istre	Chief Financial and Accounting Officer and Director (Principal Financial and Accounting Officer)	2/25/19
Keith A. Istre
/s/ C. Brent McCoy	Executive Vice President of Business Development and Director	2/25/19
C. Brent McCoy

122

EX-21.A

Exhibit 21(a)

SUBSIDIARIES OF LAMAR ADVERTISING

Exact Name of Entity as Specified in its Charter	State or Other Jurisdiction of Incorporation or Organization
Lamar Media Corp.	Delaware
Arizona Logos, L.L.C.	Arizona
Canadian TODS Limited	Nova Scotia, Canada
Colorado Logos, Inc.	Colorado
Delaware Logos, L.L.C.	Delaware
Douglas Outdoor Advertising of GA, Inc.‎	Georgia ‎
Fairway CCO Indiana, LLC	Delaware ‎
Fairway Media Group, LLC	Delaware
Fairway Outdoor Advertising, LLC	Delaware
Fairway Outdoor Funding, LLC	Delaware  ‎
Fairway Outdoor Funding Holdings, LLC	Delaware
Florida Logos, LLC	Florida
FMG Outdoor Holdings, LLC	Delaware
FMO Real Estate, LLC	Delaware
Georgia Logos, L.L.C.	Georgia
Interstate Logos, L.L.C.	Louisiana
Interstate Logos TRS, LLC	Delaware
Kansas Logos, Inc.	Kansas
Kentucky Logos, LLC	Kentucky
Lamar Advantage GP Company, LLC	Delaware
Lamar Advantage Holding Company	Delaware
Lamar Advantage LP Company, LLC	Delaware
Lamar Advantage Outdoor Company, L.P.	Delaware
Lamar Advertising of Colorado Springs, L.L.C.	Colorado
Lamar Advertising of Louisiana, L.L.C.	Louisiana
Lamar Advertising of Michigan, Inc.	Michigan
Lamar Advertising of Penn, LLC	Delaware
Lamar Advertising of Puerto Rico, Inc.	Puerto Rico
Lamar Advertising of South Dakota, L.L.C.	South Dakota
Lamar Advertising of Youngstown, Inc.	Delaware
Lamar Advertising Southwest, Inc.	Nevada
Lamar Air, L.L.C.	Louisiana
Lamar Airport Advertising Company	Nevada
Lamar Canadian Outdoor Company	Ontario, Canada
Lamar Central Outdoor, LLC	Delaware
Lamar Electrical, Inc.	Louisiana
Lamar-Fairway Blocker 1, Inc.‎	Delaware
Lamar-Fairway Blocker 2, Inc.‎	Delaware
Lamar Florida, L.L.C.	Florida
Lamar Investments, LLC	Delaware
Lamar Obie Company, LLC	Delaware
Lamar OCI North, L.L.C.	Delaware
Lamar OCI South Corporation	Mississippi
Lamar Ohio Outdoor Holding Corp.	Ohio
Lamar Pensacola Transit, Inc.	Florida
Lamar QRS Receivables, LLC	Delaware
Lamar Tennessee, L.L.C.	Tennessee
Lamar Service Company, LLC	Delaware
Lamar Transit, LLC	Delaware
Lamar Texas Limited Partnership	Texas
Lamar Transit Advertising Canada Ltd.	British Columbia, Canada
Lamar TRS Holdings, LLC	Delaware
Lamar TRS Receivables, LLC	Delaware
Louisiana Interstate Logos, L.L.C.	Louisiana

Exact Name of Entity as Specified in its Charter	State or Other Jurisdiction of Incorporation or Organization
Magic Media, Inc.‎	Delaware
Magic Media Real Estate, LLC	Delaware
Maine Logos, L.L.C.	Maine
MCC Outdoor, LLC	Georgia
Michigan Logos, Inc.	Michigan
Minnesota Logos, Inc.	Minnesota
Mississippi Logos, L.L.C.	Mississippi
Missouri Logos, LLC	Missouri
Montana Logos, L.L.C.	Montana
Nebraska Logos, Inc.	Nebraska
Nevada Logos, Inc.	Nevada
New Hampshire Logos, L.L.C.‎	New Hampshire ‎
New Jersey Logos, L.L.C.	New Jersey
New Mexico Logos, Inc.	New Mexico
Ohio Logos, Inc.	Ohio
Oklahoma Logos, L.L.C.	Oklahoma
Olympus Media/Indiana, LLC	Delaware ‎
Outdoor Marketing Systems, L.L.C.	Pennsylvania
Outdoor Promotions West, LLC	Delaware
QMC Transit, Inc.	Puerto Rico
South Carolina Logos, Inc.	South Carolina
Tennessee Logos, Inc.	Tennessee
The Lamar Company, L.L.C.	Louisiana
TLC Farms, L.L.C.	Louisiana
TLC Properties II, LLC	Texas
TLC Properties, Inc.	Louisiana
TLC Properties, L.L.C.	Louisiana
Triumph Outdoor Holdings, LLC	Delaware
Triumph Outdoor Rhode Island, LLC	Delaware
Utah Logos, Inc.	Utah
Virginia Logos, LLC	Virginia
Washington Logos, L.L.C.	Washington
Wisconsin Logos, L.L.C.	Wisconsin

EX-23.A

Exhibit 23(a)

Consent of Independent Registered Public Accounting Firm

The Board of Directors
Lamar Advertising Company and Lamar Media Corp.:

We consent to the incorporation by reference in the registration statements Nos. 333-224943, 333-89034, 333-37858, 333-116008, 333-160943, 333-160945, 333-182365, 333-190603, 333-190604 and 333-206483 on Form S-8 and 333-224579 and 333-226614 on Form S-3of Lamar Advertising Company of (a) our reports dated February 25, 2019, with respect to the consolidated balance sheets of Lamar Advertising Company and subsidiaries as of December 31, 2018 and 2017, and the related consolidated statements of income and comprehensive income, stockholders’ equity, and cash flows for each of the years in the three-year period ended December 31, 2018 and the related notes and financial statement schedules II to III, and the effectiveness of internal control over financial reporting as of December 31, 2018, and (b) our reports dated February 25, 2019, with respect to the consolidated balance sheets of Lamar Media Corp. and subsidiaries as of December 31, 2018 and 2017, and the related consolidated statements of income and comprehensive income, stockholder’s equity, and cash flows for each of the years in the three-year period ended December 31, 2018 and the related notes and financial statement schedules II to III, and the effectiveness of internal control over financial reporting as of December 31, 2018, which reports appear in the December 31, 2018 annual report on Form 10-K of Lamar Advertising Company and Lamar Media Corp. Our reports on the consolidated financial statements refer to a change in the method of accounting for business combinations and a change in the method of accounting for revenue recognition.

/s/ KPMG LLP

KPMG LLP

Baton Rouge, Louisiana
February 25, 2019

EX-31.A

Exhibit 31(a)

CERTIFICATION

I, Sean E. Reilly, certify that:

1. I have reviewed this combined annual report on Form 10-K of Lamar Advertising Company and Lamar Media Corp.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrants as of, and for, the periods presented in this report;

4. The registrants’ other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrants and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrants, including their consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrants’ disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrants’ internal control over financial reporting that occurred during the registrants’ most recent fiscal quarter (the registrants’ fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrants’ internal control over financial reporting; and

5. The registrants’ other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrants’ auditors and the audit committee of the registrants’ board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants’ abilities to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants’ internal control over financial reporting.

Date: February 25, 2019

/s/ Sean E. Reilly

Sean E. Reilly

Chief Executive Officer, Lamar Advertising Company

Chief Executive Officer, Lamar Media Corp.

EX-31.B

Exhibit 31(b)

CERTIFICATION

I, Keith A. Istre, certify that:

1. I have reviewed this combined annual report on Form 10-K of Lamar Advertising Company and Lamar Media Corp.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrants as of, and for, the periods presented in this report;

4. The registrants’ other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrants and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrants, including their consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrants’ disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrants’ internal control over financial reporting that occurred during the registrants’ most recent fiscal quarter (the registrants’ fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrants’ internal control over financial reporting; and

5. The registrants’ other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrants’ auditors and the audit committee of the registrants’ board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants’ abilities to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants’ internal control over financial reporting.

Date: February 25, 2019

/s/ Keith A. Istre

Keith A. Istre

Chief Financial Officer, Lamar Advertising Company

Chief Financial Officer, Lamar Media Corp.

EX-32.A

Exhibit 32(a)

LAMAR ADVERTISING COMPANY

LAMAR MEDIA CORP.

Certification of Periodic Financial Report

Pursuant to 18 U.S.C. Section 1350

as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

Each of the undersigned officers of Lamar Advertising Company (“Lamar Advertising”) and Lamar Media Corp. (“Lamar Media”) certifies, to his knowledge and solely for the purposes of 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that the combined Annual Report on Form 10-K of Lamar Advertising and Lamar Media for the year ended December 31, 2018 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that information contained in that combined Form 10-K fairly presents, in all material respects, the financial condition and results of operations of Lamar Advertising and Lamar Media.

Dated: February 25, 2019	By:	/s/ Sean E. Reilly
		Sean E. Reilly
		Chief Executive Officer, Lamar Advertising Company
		Chief Executive Officer, Lamar Media Corp.
Dated: February 25, 2019	By:	/s/ Keith A. Istre
		Keith A. Istre
		Chief Financial Officer, Lamar Advertising Company
		Chief Financial Officer, Lamar Media Corp.

XML

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2018	Feb. 01, 2019	Jun. 29, 2018
Document Information [Line Items]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2018
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	FY
Trading Symbol	LAMR
Entity Registrant Name	LAMAR ADVERTISING CO/NEW
Entity Central Index Key	0001090425
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$ 5,734,846,576
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Common Class A [Member]
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		85,163,142
Common Class B [Member]
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		14,420,085
LAMAR MEDIA CORP. AND SUBSIDIARIES [Member]
Document Information [Line Items]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2018
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	FY
Entity Registrant Name	LAMAR MEDIA CORP/DE
Entity Central Index Key	0000899045
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Current Reporting Status	Yes
Entity Voluntary Filers	Yes
Entity Filer Category	Non-accelerated Filer
Entity Public Float			$ 0
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
LAMAR MEDIA CORP. AND SUBSIDIARIES [Member] | Class Units [Member]
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		100

XML

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Current assets:
Cash and cash equivalents	$ 21,494	$ 115,471
Receivables, net of allowance for doubtful accounts	235,576	201,699
Prepaid lease and contract expenses	80,684	70,755
Other current assets	25,915	32,594
Total current assets	363,669	420,519
Property, plant and equipment	3,525,725	3,384,723
Less accumulated depreciation and amortization	(2,230,677)	(2,170,585)
Net property, plant and equipment	1,295,048	1,214,138
Goodwill	1,919,386	1,740,454
Intangible assets, net	915,453	796,348
Other assets	51,085	42,886
Total assets	4,544,641	4,214,345
Current liabilities:
Trade accounts payable	21,246	17,961
Current maturities of long-term debt, net of deferred financing costs	204,120	17,664
Accrued expenses	122,467	197,675
Deferred income	107,202	92,694
Total current liabilities	455,035	325,994
Long-term debt, net of deferred financing costs	2,684,568	2,539,026
Deferred income tax liabilities	20,734	884
Asset retirement obligation	222,989	215,089
Other liabilities	29,531	29,859
Total liabilities	3,412,857	3,110,852
Long-term debt, net of deferred financing costs	2,684,568	2,539,026
Stockholders’ equity:
Additional paid-in-capital	1,852,421	1,762,499
Accumulated comprehensive income	12	1,302
Accumulated deficit	(695,337)	(639,106)
Cost of shares held in treasury, 388,903 and 331,284 shares in 2018 and 2017, respectively	(25,412)	(21,300)
Stockholders’ equity	1,131,784	1,103,493
Total liabilities and stockholders’ equity	4,544,641	4,214,345
LAMAR MEDIA CORP. AND SUBSIDIARIES [Member]
Current assets:
Cash and cash equivalents	20,994	114,971
Receivables, net of allowance for doubtful accounts	235,576	201,699
Prepaid lease and contract expenses	80,684	70,755
Other current assets	25,915	32,594
Total current assets	363,169	420,019
Property, plant and equipment	3,525,725	3,384,723
Less accumulated depreciation and amortization	(2,230,677)	(2,170,585)
Net property, plant and equipment	1,295,048	1,214,138
Goodwill	1,909,235	1,730,303
Intangible assets, net	914,984	795,879
Other assets	45,450	37,603
Total assets	4,527,886	4,197,942
Current liabilities:
Trade accounts payable	21,246	17,961
Current maturities of long-term debt, net of deferred financing costs	204,120	17,664
Accrued expenses	117,300	193,667
Deferred income	107,202	92,694
Total current liabilities	449,868	321,986
Long-term debt, net of deferred financing costs	2,684,568	2,539,026
Deferred income tax liabilities	20,734	884
Asset retirement obligation	222,989	215,089
Other liabilities	29,531	29,859
Total liabilities	3,407,690	3,106,844
Long-term debt, net of deferred financing costs	2,684,568	2,539,026
Stockholders’ equity:
Additional paid-in-capital	2,922,907	2,832,940
Accumulated comprehensive income	12	1,302
Accumulated deficit	(1,802,723)	(1,743,144)
Stockholders’ equity	1,120,196	1,091,098
Total liabilities and stockholders’ equity	4,527,886	4,197,942
Series AA Preferred Stock [Member]
Stockholders’ equity:
Preferred stock, value
Common Class A [Member]
Stockholders’ equity:
Common stock, value	86	84
Common Class B [Member]
Stockholders’ equity:
Common stock, value	$ 14	$ 14

XML

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Allowance for doubtful accounts	$ 11,161	$ 10,055
Current deferred financing costs	5,245	5,133
Noncurrent deferred financing costs	$ 20,619	$ 23,586
Shares held in treasury	388,903	331,284
LAMAR MEDIA CORP. AND SUBSIDIARIES [Member]
Allowance for doubtful accounts	$ 11,161	$ 10,055
Current deferred financing costs	5,245	5,133
Noncurrent deferred financing costs	$ 20,619	$ 23,586
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	3,000	3,000
Common stock, shares issued	100	100
Common stock, shares outstanding	100	100
Series AA Preferred Stock [Member]
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, cumulative dividends	$ 63.80	$ 63.80
Preferred stock, shares authorized	5,720	5,720
Preferred stock, shares issued	5,720	5,720
Preferred stock, shares outstanding	5,720	5,720
Common Class A [Member]
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	362,500,000	362,500,000
Common stock, shares issued	85,551,595	84,169,118
Common stock, shares outstanding	85,162,692	83,837,834
Common Class B [Member]
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	37,500,000	37,500,000
Common stock, shares issued	14,420,085	14,420,085
Common stock, shares outstanding	14,420,085	14,420,085

XML

Consolidated Statements of Income and Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Net revenues	$ 1,627,222	$ 1,541,260	$ 1,500,294
Type of Revenue [Extensible List]	us-gaap:AdvertisingMember	us-gaap:AdvertisingMember	us-gaap:AdvertisingMember
Operating expenses (income)
Direct advertising expenses (exclusive of depreciation and amortization)	$ 561,848	$ 540,880	$ 525,597
Type of Cost Good or Service [Extensible List]	us-gaap:AdvertisingMember	us-gaap:AdvertisingMember	us-gaap:AdvertisingMember
General and administrative expenses (exclusive of depreciation and amortization)	$ 289,428	$ 276,229	$ 269,423
Corporate expenses (exclusive of depreciation and amortization)	82,896	62,344	76,366
Depreciation and amortization	225,261	211,104	204,958
Total Operating Expenses	1,166,666	1,085,893	1,061,249
Loss (gain) on disposition of assets	7,233	(4,664)	(15,095)
Operating income	460,556	455,367	439,045
Other expense (income)
Loss on extinguishment of debt	15,429	71	3,198
Interest income	(534)	(6)	(6)
Interest expense	129,732	128,396	123,688
Non-operating (Income) Expenses	144,627	128,461	126,880
Income before income tax expense	315,929	326,906	312,165
Income tax expense	10,697	9,230	13,356
Net income	305,232	317,676	298,809
Preferred stock dividends	365	365	365
Net income applicable to common stock	$ 304,867	$ 317,311	$ 298,444
Earnings per share:
Basic earnings per share	$ 3.09	$ 3.24	$ 3.07
Diluted earnings per share	3.08	3.23	3.05
Cash dividends declared per share of common stock	$ 3.65	$ 3.32	$ 3.02
Weighted average common shares used in computing earnings per share:
Weighted average common shares outstanding basic	98,817,525	97,930,555	97,129,614
Weighted average common shares outstanding diluted	99,086,160	98,369,865	97,693,424
Statements of Comprehensive Income
Net income	$ 305,232	$ 317,676	$ 298,809
Other comprehensive (loss) income, net of tax
Foreign currency translation adjustments	(1,290)	1,926	554
Comprehensive income	303,942	319,602	299,363
LAMAR MEDIA CORP. AND SUBSIDIARIES [Member]
Net revenues	$ 1,627,222	$ 1,541,260	$ 1,500,294
Type of Revenue [Extensible List]	us-gaap:AdvertisingMember	us-gaap:AdvertisingMember	us-gaap:AdvertisingMember
Operating expenses (income)
Direct advertising expenses (exclusive of depreciation and amortization)	$ 561,848	$ 540,880	$ 525,597
Type of Cost Good or Service [Extensible List]	us-gaap:AdvertisingMember	us-gaap:AdvertisingMember	us-gaap:AdvertisingMember
General and administrative expenses (exclusive of depreciation and amortization)	$ 289,428	$ 276,229	$ 269,423
Corporate expenses (exclusive of depreciation and amortization)	82,497	61,962	75,994
Depreciation and amortization	225,261	211,104	204,958
Total Operating Expenses	1,166,267	1,085,511	1,060,877
Loss (gain) on disposition of assets	7,233	(4,664)	(15,095)
Operating income	460,955	455,749	439,417
Other expense (income)
Loss on extinguishment of debt	15,429	71	3,198
Interest income	(534)	(6)	(6)
Interest expense	129,732	128,396	123,688
Non-operating (Income) Expenses	144,627	128,461	126,880
Income before income tax expense	316,328	327,288	312,537
Income tax expense	10,697	9,230	13,356
Net income	305,631	318,058	299,181
Statements of Comprehensive Income
Net income	305,631	318,058	299,181
Other comprehensive (loss) income, net of tax
Foreign currency translation adjustments	(1,290)	1,926	554
Comprehensive income	$ 304,341	$ 319,984	$ 299,735

XML

Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	LAMAR MEDIA CORP. AND SUBSIDIARIES [Member]	Common Stock [Member] Common Class A [Member]	Common Stock [Member] Common Class B [Member]	Treasury Stock [Member]	Additional Paid-in Capital [Member]	Additional Paid-in Capital [Member] LAMAR MEDIA CORP. AND SUBSIDIARIES [Member]	Accumulated Comprehensive Income (Loss) [Member]	Accumulated Comprehensive Income (Loss) [Member] LAMAR MEDIA CORP. AND SUBSIDIARIES [Member]	Accumulated Deficit [Member]	Accumulated Deficit [Member] LAMAR MEDIA CORP. AND SUBSIDIARIES [Member]
Beginning Balance at Dec. 31, 2015	$ 1,021,059	$ 1,007,181	$ 82	$ 15	$ (6,099)	$ 1,664,038	$ 2,734,479	$ (1,178)	$ (1,178)	$ (635,799)	$ (1,726,120)
Non-cash compensation	26,177					26,177
Exercise of stock options	17,152		1			17,151
Issuance of shares of common stock through employee purchase plan	5,930					5,930
Tax benefit related to options exercised	16					16
Purchase of treasury stock	(6,204)				(6,204)
Foreign currency translation	554							554
Contribution from parent		49,274					49,274
Foreign currency translations		554							554
Net income	298,809	299,181								298,809	299,181
Dividend to parent		(299,804)									(299,804)
Dividends/distributions to common shareholders	(293,600)									(293,600)
Dividends	(365)									(365)
Ending Balance at Dec. 31, 2016	1,069,528	1,056,386	83	15	(12,303)	1,713,312	2,783,753	(624)	(624)	(630,955)	(1,726,743)
Non-cash compensation	22,503					22,503
Exercise of stock options	20,306					20,306
Issuance of shares of common stock through employee purchase plan	6,378					6,378
Conversion shares of Class B common stock to Class A common stock			1	(1)
Purchase of treasury stock	(8,997)				(8,997)
Foreign currency translation	1,926							1,926
Contribution from parent		49,187					49,187
Foreign currency translations		1,926							1,926
Net income	317,676	318,058								317,676	318,058
Dividend to parent		(334,459)									(334,459)
Dividends/distributions to common shareholders	(325,462)									(325,462)
Dividends	(365)									(365)
Ending Balance at Dec. 31, 2017	1,103,493	1,091,098	84	14	(21,300)	1,762,499	2,832,940	1,302	1,302	(639,106)	(1,743,144)
Non-cash compensation	15,024					15,024
Exercise of stock options	13,433		1			13,432
Issuance of shares of common stock through employee purchase plan	7,115					7,115
Issuance of common stock for cash	42,070		1			42,069
Issuance of common stock for purchase of assets	12,282					12,282
Purchase of treasury stock	(4,112)				(4,112)
Foreign currency translation	(1,290)							(1,290)
Contribution from parent		89,967					89,967
Foreign currency translations		(1,290)							(1,290)
Net income	305,232	305,631								305,232	305,631
Dividend to parent		(365,210)									(365,210)
Dividends/distributions to common shareholders	(361,098)									(361,098)
Dividends	(365)									(365)
Ending Balance at Dec. 31, 2018	$ 1,131,784	$ 1,120,196	$ 86	$ 14	$ (25,412)	$ 1,852,421	$ 2,922,907	$ 12	$ 12	$ (695,337)	$ (1,802,723)

XML

Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Exercise of stock options	361,618	554,049	470,029
Conversion of common stock		190,280
Common stock shares issued for cash	576,002
Common stock shares issued for purchase of assets	163,137
Purchase of treasury stock	57,619	115,196	111,252
Common stock dividends/distributions	$ 3.65	$ 3.32	$ 3.02
Preferred stock dividend shares	$ 63.80	$ 63.80	$ 63.80
Additional Paid-in Capital [Member]
Exercise of stock options	361,618	554,049	470,029
Common stock shares issued for cash	576,002
Common stock shares issued for purchase of assets	163,137
Common Stock [Member]
Conversion of common stock		190,280
Treasury Stock [Member]
Purchase of treasury stock	57,619	115,196	111,252
Accumulated Deficit [Member]
Common stock dividends/distributions	$ 3.65	$ 3.32	$ 3.02
Preferred stock dividend shares	$ 63.80	$ 63.80	$ 63.80

XML

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Cash flows from operating activities:
Net income	$ 305,232	$ 317,676	$ 298,809
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	225,261	211,104	204,958
Stock-based compensation	29,443	9,599	28,560
Amortization included in interest expense	4,920	5,120	5,333
Loss (gain) on disposition of assets and investments	7,233	(4,664)	(15,095)
Loss on extinguishment of debt	15,429	71	3,198
Deferred income tax expense (benefit)	1,538	804	(343)
Provision for doubtful accounts	7,985	6,762	6,870
(Increase) decrease in:
Receivables	(33,292)	(17,524)	(22,677)
Prepaid expenses	(5,433)	309	1,320
Other assets	2,828	(8,410)	5,462
Increase (decrease) in:
Trade accounts payable	1,366	309	(746)
Accrued expenses	(6,292)	(9,508)	10,245
Other liabilities	8,628	(4,632)	(4,071)
Cash flows provided by operating activities	564,846	507,016	521,823
Cash flows from investing activities:
Capital expenditures	(117,638)	(109,329)	(107,612)
Acquisitions	(477,389)	(297,305)	(585,054)
Decrease (increase) in notes receivable	9	515	21
Proceeds received from property insurance claims	4,222
Proceeds from disposition of assets and investments	6,648	6,053	11,662
Cash flows used in investing activities	(584,148)	(400,066)	(680,983)
Cash flows from financing activities:
Net proceeds from issuance of common stock	62,662	26,684	23,082
Cash used for purchase of treasury shares	(4,112)	(8,997)	(6,204)
Proceeds received from revolving credit facility	563,000	495,000	483,000
Payments on revolving credit facility	(481,000)	(477,000)	(403,000)
Principal payments on long term debt	(27,328)	(16,993)	(21,118)
Proceeds received from senior credit facility term loans	599,250	450,000	300,000
Proceeds received from accounts receivable securitization program	175,000
Debt issuance costs	(7,616)	(4,941)	(9,467)
Proceeds received from note offering			400,000
Redemption of senior subordinated notes	(509,790)
Payment on senior credit facility term loans		(247,500)	(300,000)
Distributions to non-controlling interest	(541)	(693)	(420)
Dividends/distributions	(443,088)	(244,201)	(293,965)
Cash flows (used in) provided by financing activities	(73,563)	(28,641)	171,908
Effect of exchange rate changes in cash and cash equivalents	(1,112)	1,632	455
Net (decrease) increase in cash and cash equivalents	(93,977)	79,941	13,203
Cash and cash equivalents at beginning of period	115,471	35,530	22,327
Cash and cash equivalents at end of period	21,494	115,471	35,530
Supplemental disclosures of cash flow information:
Cash paid for interest	136,711	123,213	108,719
Cash paid for state and federal income taxes	8,563	12,640	14,167
LAMAR MEDIA CORP. AND SUBSIDIARIES [Member]
Cash flows from operating activities:
Net income	305,631	318,058	299,181
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	225,261	211,104	204,958
Stock-based compensation	29,443	9,599	28,560
Amortization included in interest expense	4,920	5,120	5,333
Loss (gain) on disposition of assets and investments	7,233	(4,664)	(15,095)
Loss on extinguishment of debt	15,429	71	3,198
Deferred income tax expense (benefit)	1,538	804	(343)
Provision for doubtful accounts	7,985	6,762	6,870
(Increase) decrease in:
Receivables	(33,292)	(17,524)	(22,677)
Prepaid expenses	(5,433)	309	1,320
Other assets	3,270	(8,410)	5,462
Increase (decrease) in:
Trade accounts payable	1,366	309	(746)
Accrued expenses	(6,292)	(9,416)	10,245
Other liabilities	(19,974)	(27,882)	(31,000)
Cash flows provided by operating activities	537,085	484,240	495,266
Cash flows from investing activities:
Capital expenditures	(117,638)	(109,329)	(107,612)
Acquisitions	(477,389)	(297,305)	(585,054)
Decrease (increase) in notes receivable	9	515	21
Proceeds received from property insurance claims	4,222
Proceeds from disposition of assets and investments	6,648	6,053	11,662
Cash flows used in investing activities	(584,148)	(400,066)	(680,983)
Cash flows from financing activities:
Proceeds received from revolving credit facility	563,000	495,000	483,000
Payments on revolving credit facility	(481,000)	(477,000)	(403,000)
Principal payments on long term debt	(27,328)	(16,993)	(21,118)
Proceeds received from senior credit facility term loans	599,250	450,000	300,000
Proceeds received from accounts receivable securitization program	175,000
Debt issuance costs	(7,616)	(4,941)	(9,467)
Proceeds received from note offering			400,000
Redemption of senior subordinated notes	(509,790)
Payment on senior credit facility term loans		(247,500)	(300,000)
Distributions to non-controlling interest	(541)	(693)	(420)
Dividends to parent	(446,744)	(252,925)	(299,804)
Contributions from parent	89,967	49,187	49,274
Cash flows (used in) provided by financing activities	(45,802)	(5,865)	198,465
Effect of exchange rate changes in cash and cash equivalents	(1,112)	1,632	455
Net (decrease) increase in cash and cash equivalents	(93,977)	79,941	13,203
Cash and cash equivalents at beginning of period	114,971	35,030	21,827
Cash and cash equivalents at end of period	20,994	114,971	35,030
Supplemental disclosures of cash flow information:
Cash paid for interest	136,711	123,213	108,719
Cash paid for state and federal income taxes	$ 8,563	$ 12,640	$ 14,167

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Significant Accounting Policies

12 Months Ended

Dec. 31, 2018

Significant Accounting Policies

(1) Significant Accounting Policies

(a) Nature of Business

Lamar Advertising Company (the Company) is engaged in the outdoor advertising business, operating approximately 156,900 billboard advertising displays in 45 states and Canada. The Company’s operating strategy is to be the leading provider of outdoor advertising services in the markets it serves.

In addition, the Company operates a logo sign business in 23 states throughout the United States and the province of Ontario, Canada and operates approximately 53,300 transit advertising displays in 22 states and Canada. Logo signs are erected pursuant to state-awarded service contracts on public rights-of-way near highway exits and deliver brand name information on available gas, food, lodging and camping services. Included in the Company’s logo sign business are tourism signing contracts. The Company provides transit advertising in airport terminals, on bus shelters, benches and buses in the markets it serves.

The Company operates as a Real Estate Investment Trust (“REIT”) for U.S. federal income tax purposes and generally will not be subject to federal income taxes on its income and gains that the Company distributes to its stockholders, including the income derived from advertising rental revenue. However, even as a REIT, the Company will remain obligated to pay income taxes on earnings from the assets of its taxable REIT subsidiaries (“TRSs”). In addition, the Company’s foreign assets and operations continue to be subject to taxation in the foreign jurisdictions where those assets are held or those operations are conducted.

(b) Principles of Consolidation

The accompanying consolidated financial statements include Lamar Advertising Company, its wholly owned subsidiary, Lamar Media Corp. (Lamar Media), and its majority-owned subsidiaries. All inter-company transactions and balances have been eliminated in consolidation.

An operating segment is a component of an enterprise:

• that engages in business activities from which it may earn revenues and incur expenses;

• whose operating results are regularly reviewed by the enterprise’s chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performance; and

• for which discrete financial information is available.

We define the term ‘chief operating decision maker’ to be our executive management group, which consist of our Chief Executive Officer, President and Chief Financial Officer. Currently, all operations are reviewed on a consolidated basis for budget and business plan performance by our executive management group. Additionally, operational performance at the end of each reporting period is viewed in the aggregate by our management group. Any decisions related to changes in invested capital, personnel, operational improvement or training, or to allocate other company resources are made based on the combined results.

We operate in a single operating and reporting segment, advertising. We rent advertising space on billboards, buses, shelters, benches, logo plates and in airport terminals.

(c) Property, Plant and Equipment

Property, plant and equipment are stated at cost. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets.

(d) Goodwill and Intangible Assets

Goodwill is subject to an annual impairment test. The Company designated December 31 as the date of its annual goodwill impairment test. The Company is required to identify its reporting units and determine the carrying value of each reporting unit. The Company has identified two reporting units, Billboard operations and Logo operations, by assigning the assets and liabilities, including the existing goodwill and intangible assets, to those reporting units. The Company is required to determine the fair value of each reporting unit and compare it to the carrying amount of the reporting unit. To the extent the carrying amount of a reporting unit exceeds the fair value of the reporting unit, the Company would be required to book an impairment loss.

The Company conducts a qualitative assessment by examining relevant events and circumstances which could have a negative impact on the Company’s goodwill, which includes macroeconomic conditions, industry and market conditions, cost factors, overall financial performance, reporting unit dispositions and acquisitions, the market capitalization of the Company and other relevant events specific to the Company. If, after assessing the totality of events or circumstances described above, the Company determines that it is more likely than not that the fair value of either of the Company's reporting units is less than its carrying amount, the Company will perform a quantitative impairment test.  If industry and economic conditions deteriorate, the Company may be required to assess goodwill impairment before the next annual test, which could result in impairment charges.

The Company performed its annual measurement for impairment of the goodwill of its reporting units and concluded the fair value of each reporting unit exceeded its carrying amount at its annual impairment test date on December 31, 2018 and 2017; therefore, the Company was not required to recognize an impairment loss.

Intangible assets, consisting primarily of site locations, customer lists and contracts, and non-competition agreements are amortized using the straight-line method over the assets estimated useful lives, generally from 2 to 15 years.

(e) Impairment of Long-Lived Assets

Long-lived assets, such as property, plant and equipment, and purchased intangibles subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset or asset group before interest expense. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset or asset group. Assets to be disposed of would be separately presented in the balance sheet and reported at the lower of the carrying amount or fair value less costs to sell, and are no longer depreciated. The assets and liabilities of a disposed group classified as held for sale would be presented separately in the appropriate asset and liability sections of the balance sheet.

(f) Acquisitions

The Company accounts for transactions that meet the definition of a business and group asset purchases as acquisitions.  For transactions that meet the definition of a business combination, the Company allocates the purchase price, including any contingent consideration, to the assets acquired and the liabilities assumed at their estimated fair values as of the date of the acquisition with any excess of the purchase price paid over the estimated fair value of net assets acquired recorded as goodwill. For transactions that meet the definition of asset group purchases, the Company allocates the purchase price to the assets acquired and the liabilities assumed at their estimated fair values as of the date of the acquisition.  If a transaction is determined to be a group of assets, any direct acquisition costs are capitalized. Transaction costs for transactions determined to be a business combination are expensed as incurred.

The fair value of the assets acquired and liabilities assumed is typically determined by using either estimates of replacement costs or discounted cash flow valuation methods. When determining the fair value of tangible assets acquired, the Company must estimate the cost to replace the asset with a new asset, adjusted for an estimated reduction in fair value due to age of the asset, and the economic useful life. When determining the fair value of intangible assets acquired, the Company must estimate the applicable discount rate and the timing and amount of future cash flows. The determination of the final purchase price and the acquisition-date fair value of identifiable assets acquired and liabilities assumed may extend over more than one period and result in adjustments to the preliminary estimate recognized in the prior period financial statements.

Effective October 1, 2016, the Company changed its accounting for business combinations, as further discussed in note 21 to the consolidated financial statements.

(g) Deferred Income

Deferred income consists principally of advertising revenue invoiced in advance. Deferred advertising revenue is recognized in income over the term of the contract.

(h) Revenue Recognition

The Company recognizes outdoor advertising revenue on an accrual basis ratably over the term of the contracts. Production revenue and the related expense for the advertising copy are recognized upon satisfaction of its performance obligation.

The Company engages in barter transactions where the Company trades advertising space for goods and services. The Company recognizes revenues and expenses from barter transactions at fair value, which is determined based on the Company’s own historical practice of receiving cash for similar advertising space from buyers unrelated to the party in the barter transaction. The amount of revenue and expense recognized for advertising barter transactions is as follows:

	2018		2017		2016
Net revenues	$	8,955	$	8,469	$	8,051
Direct advertising expenses	$	3,633	$	3,603	$	3,559
General and administrative expenses	$	4,758	$	4,332	$	4,067

(i) Income Taxes

As a REIT, the Company is generally not subject to federal income taxes on income and gains distributed to the Company’s stockholders. However, the Company remains obligated to pay income taxes on earnings from domestic TRSs. In addition, the Company’s foreign assets and operations continue to be subject to taxation in the foreign jurisdictions where those assets are held or where those operations are conducted, including those designated as Qualified REIT Subsidiaries, or QRSs, for federal income tax purposes. Accordingly, the consolidated financial statements reflect provisions for federal, state, local and foreign income taxes. The Company recognizes deferred tax assets and liabilities for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis, as well as operating loss and tax credit carryforwards. The Company measures deferred tax assets and liabilities using enacted tax rates expected to apply to taxable income in the years in which those temporary differences and carry forwards are expected to be recovered or settled. The effect on deferred tax assets and liabilities as a result of a change in tax rates is recognized in income in the period that includes the enactment date.

(j) Dividends/Distributions

As a REIT, the Company must annually distribute to its stockholders an amount equal to at least 90% of its REIT taxable income (determined before the deduction for distributed earnings and excluding any net capital gain). During the year ended December 31, 2018, the Company paid cash distributions of its REIT taxable income in an aggregate amount of $442,632 or $4.48 per share. The distributions paid during 2018 include distributions declared and accrued as of December 31, 2017 of $81,534 or $0.83 per share. During the year ended December 31, 2017, the Company declared distributions of $325,462 or $3.32 per share, including paid distributions of $243,928 or $2.49 per share. During the year ended 2016, the Company declared and paid distributions of its REIT taxable income of an aggregate of $293,600 or $3.02 per share. The amount, timing and frequency of future distributions will be at the sole discretion of the Board of Directors and will be declared based upon various factors, a number of which may be beyond the Company’s control, including the financial condition and operating cash flows, the amount required to maintain REIT status and reduce any income and excise taxes that the Company otherwise would be required to pay, limitations on distributions in its existing and future debt instruments, the Company’s ability to utilize net operating losses (“NOLs”) to offset, in whole or in part, the Company’s distribution requirements, limitations on its ability to fund distributions using cash generated through its TRSs and other factors that the Board of Directors may deem relevant. During the year ended December 31, 2018, the Company paid cash dividend distributions to holders of its Series AA Preferred Stock in an aggregate amount of $456 or $79.75 per share, including $91, or $15.95 per share, related to distributions declared in 2017. During the years ended December 31, 2017 and 2016, the Company accrued or paid cash dividend distributions to holders of its Series AA Preferred Stock of $365 or $63.80 per share.

(k) Earnings Per Share

The calculation of basic earnings per share excludes any dilutive effect of stock options, while diluted earnings per share includes the dilutive effect of stock options. For the years ended December 31, 2018, 2017 and 2016 there were no dilutive shares excluded from the calculation.

(l) Stock Based Compensation

Compensation expense for share-based awards is recognized based on the grant date fair value of those awards. Stock-based compensation expense includes an estimate for pre-vesting forfeitures and is recognized over the requisite service periods of the awards on a straight-line basis, which is generally commensurate with the vesting term. Non-cash compensation expense recognized during the years ended December 31, 2018, 2017, and 2016 were $29,443, $9,599 and $28,560, respectively. The $29,443 expensed during the year ended December 31, 2018 consists of (i) $3,644 related to stock options, (ii) $25,427 related to stock grants made under the Company’s performance-based stock incentive program in 2018 and (iii) $372 related to stock awards to directors. See Note 15 for information on the assumptions used to calculate the fair value of stock-based compensation.

(m) Cash and Cash Equivalents

The Company considers all highly-liquid investments with original maturities of three months or less to be cash equivalents.

(n) Foreign Currency Translation

Local currencies generally are considered the functional currencies outside the United States. Assets and liabilities for operations in local-currency environments are translated at year-end exchange rates. Income and expense items are translated at average rates of exchange prevailing during the year. Foreign currency translation adjustments are recorded as a component of other comprehensive income (loss) in the Consolidated Statements of Income and Comprehensive Income and as a component of accumulated comprehensive income (loss) in the Consolidated Statements of Stockholders’ Equity.

(o) Asset Retirement Obligations

The Company is required to record the fair value of obligations associated with the retirement of tangible long-lived assets in the period in which it is incurred. The liability is capitalized as part of the related long-lived asset’s carrying amount. Over time, accretion of the liability is recognized as an operating expense and the capitalized cost is depreciated over the expected useful life of the related asset. The Company’s asset retirement obligations relate primarily to the dismantlement, removal, site reclamation and similar activities of its leased properties.

(p) Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

(q) Comprehensive Income

Total comprehensive income is presented in the Consolidated Statements of Income and Comprehensive Income and the components of accumulated comprehensive income (loss) are presented in the Consolidated Statements of Stockholders’ Equity. Comprehensive income (loss) is composed of foreign currency translation effects.

(r) Fair Value Measurements

The Company determines the fair value of its financial instruments using the fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.

(s) Subsequent Events

The Company has performed an evaluation of subsequent events through the date on which the financial statements are issued.

(t) Reclassification of prior amounts

Certain amounts in the prior years’ consolidated balance sheet have been reclassified to conform to the current year presentation.

LAMAR MEDIA CORP. AND SUBSIDIARIES [Member]

Significant Accounting Policies

(1) Significant Accounting Policies

(a) Nature of Business

Lamar Media Corp. (“Lamar Media”) is a wholly owned subsidiary of Lamar Advertising Company. Lamar Media is engaged in the outdoor advertising business operating approximately 156,900 outdoor advertising displays in 45 states and Canada. Lamar Media’s operating strategy is to be the leading provider of outdoor advertising services in the markets it serves.

In addition, Lamar Media operates a logo sign business in 23 states throughout the United States as well as the province of Ontario, Canada. Logo signs are erected pursuant to state-awarded service contracts on public rights-of-way near highway exits and deliver brand name information on available gas, food, lodging and camping services. Included in the Company’s logo sign business are tourism signing contracts. The Company provides transit advertising in airport terminals, on bus shelters, benches and buses in the markets it serves.

Certain footnotes are not provided for the accompanying financial statements as the information in notes 2, 3, 5, 7, 10, 11, 13, 14, 15, 16, 17, 18, 19, 20, 21, 23 and 24 and portions of note 1 to the consolidated financial statements of Lamar Advertising Company included elsewhere in this filing are substantially equivalent to that required for the consolidated financial statements of Lamar Media Corp. Earnings per share data is not provided for the operating results of Lamar Media Corp. as it is a wholly owned subsidiary of Lamar Advertising Company.

(b) Principles of Consolidation

The accompanying consolidated financial statements include Lamar Media, its wholly owned subsidiaries, The Lamar Company, L.L.C., Lamar Central Outdoor, LLC, Lamar TRS Holdings, LLC, Lamar Advertising Southwest, Inc., Interstate Logos, L.L.C., Lamar Obie Company, LLC, Lamar Canadian Outdoor Company, Lamar Advertising of Puerto Rico, Inc. and their majority-owned subsidiaries. All inter-company transactions and balances have been eliminated in consolidation.

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Revenues

12 Months Ended

Dec. 31, 2018

Revenue From Contract With Customer [Abstract]

Revenues

(2) Revenue

On January 1, 2018, we adopted FASB Accounting Standards Update (“ASU”) No. 2014-09 (Codified as ASC 606), Revenue from Contracts with Customers using the cumulative effect transition method applied to those contracts which were not completed as of January 1, 2018 and are not accounted for under ASC 840, Leases.  Results for reporting periods beginning after January 1, 2018 are presented under ASC 606 or 840, while comparative information has not been adjusted and continues to be reported under ASC 605.

A majority of our billboard, logo, and transit space contracts are accounted for under ASC 840 and will continue to be accounted for under the topic until January 1, 2019, our adoption date of ASU No. 2016-02 (Codified as ASC 842), Leases. Contracts which begin prior to January 1, 2019 and are accounted for under ASC 840 will continue to be accounted for as a lease until the contract ends or is modified. Contracts beginning or modified on or after January 1, 2019 which do not meet the criteria of a lease under ASC 842 will be accounted for under ASC 606, Revenue. The majority of our advertising space contracts will not meet the definition of a lease under ASC 842.

Revenue Recognition

Advertising revenues:  The majority of our revenues are derived from contracts for advertising space on billboard, logo and transit displays and are currently accounted for under ASC 840, Leases.  Upon the Company’s adoption of ASC 842, Leases the majority of our contracts for advertising space will transition to being accounted for under ASC 606, Revenue. The contract revenues, under ASC 840, Leases and ASC 606, Revenue, are recognized ratably over their contract life.

Other revenues:  Our other component of revenue primarily consists of production services which includes creating and printing the advertising copy.  As of January 1, 2018 revenue for production contracts is recognized under ASC 606. Contract revenues for production services are recognized upon satisfaction of the contract which is typically less than one week.

Arrangements with multiple performance obligations:  Our contracts with customers may include multiple performance obligations.  For such arrangements, we allocate revenue to each performance obligation based on the relative standalone selling price.  We determine standalone selling prices based on the prices charged to customers using expected cost plus margin.

Deferred revenues:  We record deferred revenues when cash payments are received or due in advance of our performance obligation. The term between invoicing and when a payment is due is not significant.  For certain services we require payment before the product or services are delivered to the customer.  The balance of deferred income is considered short-term and will be recognized in revenue within twelve months.

Practical expedients and exemptions: Upon our transition to ASC 606 from ASC 840, the Company plans to utilize the following practical expedients and exemptions from ASC 606.  We generally expense sales commissions when incurred because the amortization period is one year or less. These costs are recorded within direct advertising expense (exclusive of depreciation and amortization).  We do not disclose the value of unsatisfied performance obligations as the majority of our contracts with customers have an original expected length of less than one year. For contracts with customers which exceed one year, the future amount to be invoiced to the customer corresponds directly with the value to be received by the customer.

The following table presents our disaggregated revenue by source including both revenues accounted for under ASC 840 and ASC 606 for the years ended December 31, 2018, 2017 and 2016.

	2018		2017		2016
Billboard Advertising	$	1,412,978	$	1,340,422	$	1,311,861
Logo Advertising		84,424		82,936		80,533
Transit Advertising		129,820		117,902		107,900
Net Revenues	$	1,627,222	$	1,541,260	$	1,500,294

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Acquisitions

12 Months Ended

Dec. 31, 2018

Business Combinations [Abstract]

Acquisitions

(3) Acquisitions

Year Ended December 31, 2018

During the twelve months ended December 31, 2018, the Company completed several acquisitions of outdoor advertising assets for a total purchase price of $489,671, net of acquired cash of $8,554. The total purchase price consisted of the issuance of 163,137 shares of its Class A common stock for $12,282 and cash of $477,389. The purchases included the acquisition of assets in five U.S markets from Fairway Outdoor Advertising (“Fairway”) on December 21, 2018 for an aggregate purchase price of $418,500.

As of December 31, 2018, our fair value allocation of the assets acquired and liabilities assumed from Fairway is considered preliminary and is subject to revision, which may result in adjustments to this allocation. We expect to finalize these amounts as soon as possible but not later than the end of 2019. In order to develop our preliminary fair values, the Company utilized asset information received from Fairway and fair value allocation benchmarks from similar completed transactions. Our preliminary allocation of Fairway includes property, plant and equipment, intangibles and goodwill of $91,173, $156,319 and $182,117, respectively.

Each of these acquisitions was accounted for under the acquisition method of accounting, and, accordingly, the accompanying consolidated financial statements include the results of operations of each acquired entity from the date of acquisition. The acquisition costs have been allocated to assets acquired and liabilities assumed based on fair market value at the dates of acquisition.

The following is a summary of the allocation of the acquisition costs in the above transactions, excluding the preliminary allocation of Fairway.

	Total
Property, plant and equipment	$	8,648
Site locations		57,105
Non-competition agreements		342
Customer lists and contracts		6,521
Asset acquisition costs		336
Current assets		1,041
Current liabilities		(355	)
	$	73,638

Total acquired intangible assets for the year ended December 31, 2018 were $402,740, of which $182,117 was assigned to goodwill. Goodwill is not amortized for financial statement purposes, and no goodwill related to 2018 acquisitions is expected to be deductible for tax purposes. The remaining $220,623 of acquired intangible assets have a weighted average useful life of approximately 14 years. The intangible assets include customer lists and contracts of $33,310 (7 year weighted average useful life) and site locations of $186,635 (15 year weighted average useful life). The aggregate amortization expense related to the 2018 acquisitions for the year ended December 31, 2018 was approximately $2,681.

The following unaudited pro forma financial information for the Company gives effect to the 2018 and 2017 acquisitions as if they had occurred on January 1, 2017. These pro forma results do not purport to be indicative of the results of operations which actually would have resulted had the acquisitions occurred on such date or to project the Company’s results of operations for any future period.

	2018		2017
	(unaudited)
Net revenues	$	1,699,052	$	1,647,445
Net income applicable to common stock	$	299,493	$	306,900
Net income per common share — basic	$	3.03	$	3.13
Net income per common share — diluted	$	3.02	$	3.12

Year Ended December 31, 2017

During the twelve months ended December 31, 2017, the Company completed several acquisitions of outdoor advertising assets for a total purchase price of $300,185, of which $297,305 was in cash and $2,880 in non-cash consideration consisting principally of exchanges of outdoor advertising assets. As a result of the acquisitions, a gain of $2,389 was recorded for transactions which involved the exchanges of outdoor advertising assets during the year ended December 31, 2017.

Each of these acquisitions was accounted for under the acquisition method of accounting, and, accordingly, the accompanying consolidated financial statements include the results of operations of each acquired entity from the date of acquisition. The acquisition costs have been allocated to assets acquired and liabilities assumed based on fair market value at the dates of acquisition. The following is a summary of the allocation of the acquisition costs in the above transactions.

	Total
Property, plant and equipment	$	43,483
Goodwill		13,925
Site locations		216,510
Non-competition agreements		826
Customer lists and contracts		26,397
Asset acquisition costs		529
Current assets		3,583
Current liabilities		(1,733	)
Long–term liabilities		(3,335	)
	$	300,185

Total acquired intangible assets for the year ended December 31, 2017 were $258,187, of which $13,925 was assigned to goodwill. Goodwill is not amortized for financial statement purposes, and no goodwill related to 2017 acquisitions is expected to be deductible for tax purposes. The remaining $244,262 of acquired intangible assets have a weighted average useful life of approximately 14 years. The intangible assets include customer lists and contracts of $26,397 (7 year weighted average useful life) and site locations of $216,510 (15 year weighted average useful life). The aggregate amortization expense related to the 2017 acquisitions for the year ended December 31, 2017 was approximately $6,106.

The following unaudited pro forma financial information for the Company gives effect to the 2017 and 2016 acquisitions as if they had occurred on January 1, 2016. These pro forma results do not purport to be indicative of the results of operations which actually would have resulted had the acquisitions occurred on such date or to project the Company’s results of operations for any future period.

	2017		2016
	(unaudited)
Net revenues	$	1,572,989	$	1,554,758
Net income applicable to common stock	$	318,200	$	297,518
Net income per common share — basic	$	3.25	$	3.06
Net income per common share — diluted	$	3.23	$	3.05

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Non-cash Financing and Investing Activities

12 Months Ended

Dec. 31, 2018

Non-cash Financing and Investing Activities

(4) Non-cash Financing and Investing Activities

For the year ended December 31, 2018, the Company had non-cash investing activities for the issuance of 163,137 shares of its Class A common stock related to acquisition purchases. The issuance had an approximate value of $12,282. For the years ended December 31, 2017 and 2016, the Company had $2,879 and $9,000 non-cash investing activities related to capital expenditures and acquisitions of outdoor advertising assets, respectively. During the year ended December 31, 2017, the Company had non-cash financing activity related to declared distributions of $81,625 which were paid to shareholders in January 2018. There were no significant non-cash financing activities during the years ended December 31, 2018 and 2016.

LAMAR MEDIA CORP. AND SUBSIDIARIES [Member]

Non-cash Financing and Investing Activities

(2) Non-cash Financing and Investing Activities

There were no significant non-cash investing activities for Lamar Media during the year ended December 31, 2018. For the years ended December 31, 2017 and 2016, the Company had non-cash investing activities of $2,879 and $9,000 related to capital expenditures and acquisitions of outdoor advertising assets. During the year ended December 31, 2017, Lamar Media had non-cash financing activities related to dividends to Lamar Advertising Company of $81,534 which were paid in January 2018. There were no significant non-cash financing activities during the years ended December 31, 2018 and 2016.

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Property, Plant and Equipment

12 Months Ended

Dec. 31, 2018

Property Plant And Equipment [Abstract]

Property, Plant and Equipment

(5) Property, Plant and Equipment

Major categories of property, plant and equipment at December 31, 2018 and 2017 are as follows:

	Estimated Life (Years)		2018		2017
Land		—	$	384,264	$	369,690
Building and improvements	10 — 39			173,306		160,494
Advertising structures	5 — 15			2,817,170		2,704,356
Automotive and other equipment	3 — 7			150,985		150,183
			$	3,525,725	$	3,384,723

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Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2018

Goodwill and Other Intangible Assets

(6) Goodwill and Other Intangible Assets

The following is a summary of intangible assets at December 31, 2018 and December 31, 2017:

	Estimated		2018				2017
	Life (Years)		Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Amortizable Intangible Assets:
Customer lists and contracts	7 — 10		$	610,376	$	514,928	$	586,055	$	505,778
Non-competition agreements	3 — 15			65,771		64,119		65,477		63,924
Site locations		15		2,228,767		1,422,794		2,072,059		1,372,954
Other	2 — 15			45,992		33,612		45,741		30,328
			$	2,950,906	$	2,035,453	$	2,769,332	$	1,972,984
Unamortizable Intangible Assets:
Goodwill			$	2,172,922	$	253,536	$	1,993,990	$	253,536

The changes in the gross carrying amount of goodwill for the year ended December 31, 2018 are as follows:

Balance as of December 31, 2017	$	1,993,990
Goodwill acquired during the year		182,117
Purchase price adjustments and other		(3,185	)
Impairment losses		—
Balance as of December 31, 2018	$	2,172,922

Amortization expense for the years ended December 31, 2018, 2017 and 2016 was $95,010, $85,257 and $80,864, respectively. The following is a summary of the estimated amortization expense for future years:

2019	$	103,754
2020		93,200
2021		89,240
2022		84,410
2023		73,552
Thereafter		471,297
Total	$	915,453

LAMAR MEDIA CORP. AND SUBSIDIARIES [Member]

Goodwill and Other Intangible Assets

(3) Goodwill and Other Intangible Assets

The following is a summary of intangible assets at December 31, 2018 and December 31, 2017:

	Estimated		2018				2017
	Life (Years)		Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Amortizable Intangible Assets:
Customer lists and contracts	7—10		$	610,376	$	514,928	$	586,055	$	505,778
Non-competition agreement	3—15			65,771		64,119		65,477		63,924
Site locations		15		2,228,767		1,422,794		2,072,059		1,372,954
Other	2—15			45,446		33,535		45,195		30,251
			$	2,950,360	$	2,035,376	$	2,768,786	$	1,972,907
Unamortizable Intangible Assets:
Goodwill			$	2,161,902	$	252,667	$	1,982,970	$	252,667

The changes in the gross carrying amount of goodwill for the year ended December 31, 2018 are as follows:

Balance as of December 31, 2017	$	1,982,970
Goodwill acquired during the year		182,117
Purchase price adjustments and other		(3,185	)
Impairment losses		—
Balance as of December 31, 2018	$	2,161,902

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Leases

12 Months Ended

Dec. 31, 2018

Leases [Abstract]

Leases

(7) Leases

The Company is party to various operating leases for production facilities, vehicles and sites upon which advertising structures are built. The leases expire at various dates, and have varying options to renew and to cancel and may contain escalation provisions. The following is a summary of minimum annual rental payments required under those operating leases that have original or remaining lease terms in excess of one year as of December 31, 2018:

2019	$	254,866
2020	$	188,138
2021	$	165,642
2022	$	144,814
2023	$	122,814
Thereafter	$	819,004

Rental expense related to the Company’s operating leases was $381,890, $366,892 and $350,135 for the years ended December 31, 2018, 2017 and 2016, respectively.

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Accrued Expenses

12 Months Ended

Dec. 31, 2018

Accrued Expenses

(8) Accrued Expenses

The following is a summary of accrued expenses at December 31, 2018 and 2017:

	2018		2017
Payroll	$	20,667	$	14,962
Interest		27,067		38,967
Insurance benefits		12,633		13,393
Accrued lease expense		36,158		37,073
Stock-based compensation		19,211		4,793
Distributions payable		—		81,625
Other		6,731		6,862
	$	122,467	$	197,675

LAMAR MEDIA CORP. AND SUBSIDIARIES [Member]

Accrued Expenses

(4) Accrued Expenses

The following is a summary of accrued expenses at December 31, 2018 and 2017:

	2018		2017
Payroll	$	20,667	$	14,962
Interest		27,067		38,967
Accrued lease expense		36,158		37,073
Stock-based compensation		19,211		4,793
Dividend to parent payable		—		81,534
Other		14,197		16,338
	$	117,300	$	193,667

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Long-term Debt

12 Months Ended

Dec. 31, 2018

Long-term Debt

(9) Long-term Debt

Long-term debt consists of the following at December 31, 2018 and 2017:

	December 31, 2018
	Debt			Deferred financing costs			Debt, net of deferred financing costs
Senior Credit Facility	$	1,291,088		$	11,576		$	1,279,512
Accounts Receivable Securitization Program		175,000			1,168			173,832
5% Senior Subordinated Notes		535,000			4,104			530,896
5 3/8% Senior Notes		510,000			4,262			505,738
5 3/4% Senior Notes		400,000			4,754			395,246
Other notes with various rates and terms		3,464			—			3,464
		2,914,552			25,864			2,888,688
Less current maturities		(209,365	)		(5,245	)		(204,120	)
Long-term debt, excluding current maturities	$	2,705,187		$	20,619		$	2,684,568
	December 31, 2017
	Debt			Deferred financing costs			Debt, net of deferred financing costs
Senior Credit Facility	$	636,750		$	7,689		$	629,061
5 7/8% Senior Subordinated Notes		500,000			5,850			494,150
5% Senior Subordinated Notes		535,000			4,927			530,073
5 3/8% Senior Notes		510,000			4,982			505,018
5 3/4% Senior Notes		400,000			5,271			394,729
Other notes with various rates and terms		3,659			—			3,659
		2,585,409			28,719			2,556,690
Less current maturities		(22,797	)		(5,133	)		(17,664	)
Long-term debt, excluding current maturities	$	2,562,612		$	23,586		$	2,539,026

Long-term debt contractual maturities are as follows:

	Debt		Deferred financing costs		Debt, net of deferred financing costs
2019	$	34,365	$	5,245	$	29,120
2020	$	56,881	$	5,368	$	51,513
2021	$	248,773	$	5,498	$	243,275
2022	$	556,256	$	4,064	$	552,192
2023	$	541,275	$	2,900	$	538,375
Later years	$	1,477,002	$	2,789	$	1,474,213

Senior Credit Facility

Lamar Media’s Third Amended and Restated Credit Agreement dated as of May 15, 2017 (as amended, the “senior credit facility”) originally consisted of (i) a $450,000 senior secured revolving credit facility which will mature on May 15, 2022 (the “revolving credit facility”), (ii) a $450,000 Term A loan facility (the “Term A loans”)  which will mature on May 15, 2022, and (iii) an incremental facility pursuant to which Lamar Media may incur additional term loan tranches or increase its revolving credit facility subject to pro forma compliance with the secured debt ratio financial maintenance covenant (the “Incremental Facility”). Lamar Media borrowed all $450,000 in Term A loans on May 15, 2017.  The net proceeds of the Term A loans, together with borrowing under the revolving portion of senior credit facility and cash on hand, were used to repay all outstanding amounts under the existing senior credit facility, and all revolving commitments under that facility were terminated.

On March 16, 2018, Lamar Media entered into Amendment No. 1 to the Third Amended and Restated Credit Agreement dated May 15, 2017, which amended the existing senior credit facility to establish a new $600,000 Term B Loan Facility (the “Term B loan”), which will mature on March 16, 2025.  Lamar Media borrowed the full amount of the Term B loan on March 16, 2018.  The proceeds from the Term B loan, together with available cash on hand were used to redeem in full Lamar Media’s 5 7/8% Senior Subordinated Notes due 2022.   

As of December 31, 2018, the senior credit facility consisted of (i) the revolving credit facility, (ii) the Term A loans, (iii) the Term B loans and (iv) the Incremental Facility.  

The Term A loans mature on May 15, 2022 and the Term B loans mature on March 16, 2025.  The remaining quarterly installments are scheduled to be paid on each March 31, June 30, September 30 and December 31 as follows:

Principal Payment Date	Term A		Term B
March 31, 2019-June 30, 2019	$	5,625	$	1,500
September 30, 2019-June 30, 2020	$	8,438	$	1,500
September 30, 2020-March 31, 2022	$	16,875	$	1,500
Term A Loan Maturity May 15, 2022	$	253,125	$	—
June 30, 2022-December 31, 2024	$	—	$	1,500
Term B Loan Maturity March 16, 2025	$	—	$	559,500

The Term loans bear interest at rates based on the Adjusted LIBO Rate (“Eurodollar term loans”) or the Adjusted Base Rate (“Base Rate term loans”), at Lamar Media’s option. Eurodollar term loans bear interest at a rate per annum equal to the Adjusted LIBO Rate plus 1.75%; (or the Adjusted LIBO Rate plus 1.50% at any time the Total Debt Ratio is less than or equal to 3.25 to 1 for Term A loans only). Base Rate term loans bear interest at a rate per annum equal to the Adjusted Base Rate plus 0.75% (or the Adjusted Base Rate plus 0.50% at any time the Total Debt Ratio is less than or equal to 3.25 to 1 for Term A loans only). The revolving credit facility bears interest at rates based on the Adjusted LIBO Rate (“Eurodollar revolving loans”) or the Adjusted Base Rate (“Base Rate revolving loans”), at Lamar Media’s option. Eurodollar revolving loans bear interest at a rate per annum equal to the Adjusted LIBO Rate plus 2.25% (or the Adjusted LIBO Rate plus 2.00% at any time the Total Debt Ratio is less than or equal to 4.25 to 1; or the Adjusted LIBO Rate plus 1.75% at any time the Total Debt Ratio is less than or equal to 3.00 to 1). Base Rate revolving Loans bear interest at a rate per annum equal to the Adjusted Base Rate plus 1.25% (or the Adjusted Base Rate plus 1.0% at any time the total debt ratio is less than or equal to 4.25 to 1, or the Adjusted Base Rate plus 0.75% at any time the Total Debt Ratio is less than or equal to 3.00 to 1). The guarantees, covenants, events of default and other terms of the senior credit facility apply to the Term A and B loans and revolving credit facility.

As of December 31, 2018, there was $280,000 outstanding under the revolving credit facility. Availability under the revolving facility is reduced by the amount of any letters of credit outstanding. Lamar Media had $13,183 letters of credit outstanding as of December 31, 2018 resulting in $156,817 of availability under its revolving facility. Revolving credit loans may be requested under the revolving credit facility at any time prior to its maturity on May 15, 2022.

The terms of Lamar Media’s senior credit facility and the indentures relating to Lamar Media’s outstanding notes restrict, among other things, the ability of Lamar Advertising and Lamar Media to:

• dispose of assets;

• incur or repay debt;

• create liens;

• make investments; and

• pay dividends.

The senior credit facility contains provisions that would allow Lamar Media to conduct its affairs in a manner that would allow Lamar Advertising to qualify and remain qualified as a REIT, including by allowing Lamar Media to make distributions to Lamar Advertising required for the Company to qualify and remain qualified for taxation as a REIT, subject to certain restrictions.

Lamar Media’s ability to make distributions to Lamar Advertising is also restricted under the terms of these agreements. Under Lamar Media’s senior credit facility the Company must maintain a specified senior debt ratio at all times and in addition, must satisfy a total debt ratio in order to incur debt, make distributions or make certain investments.

Lamar Advertising and Lamar Media were in compliance with all of the terms of their indentures and the applicable senior credit agreement provisions during the periods presented.

Accounts Receivable Securitization Program

On December 18, 2018 Lamar Media entered into a $175,000 Receivable Financing Agreement (the “AR Program”) with its wholly-owned special purpose entities, Lamar QRS Receivables, LLC and Lamar TRS Receivables, LLC (the “Special Purpose Subsidiaries”) maturing on December 17, 2021.  The AR Program is limited to the availability of eligible accounts receivable collateralizing the borrowings under the agreements governing the AR Program.

Pursuant to two separate Purchase and Sale Agreements dated December 18, 2018, each of which is among Lamar Media as initial Servicer, certain of Lamar Media’s subsidiaries and a Special Purpose Subsidiary, the subsidiaries sold substantially all of their existing and future accounts receivable balances to the Special Purpose Subsidiaries. The Special Purpose Subsidiaries use the accounts receivable balances to collateralize loans pursuant to the AR Program. Lamar Media retains the responsibility of servicing the accounts receivable balances pledged as collateral under the AR Program and provides a performance guaranty.

As of December 31, 2018 there was $175,000 outstanding on the AR Program bearing interest at approximately 3.4%. Proceeds from the AR Program were used primarily to repay outstanding amounts under our revolving credit facility. The commitment fee based on the amount of unused commitments under the AR Program was immaterial in 2018.

The AR Program is accounted for as a collateralized financing activity, rather than a sale of assets, and therefore: (i) accounts receivable balances pledged as collateral are presented as assets and the borrowings are presented as liabilities on our Consolidated Balance Sheets, (ii) our Consolidated Statements of Income and Comprehensive Income reflect the associated charges for bad debt expense (a component of general and administrative expenses) related to the pledged accounts receivable and interest expense associated with the collateralized borrowings and (iii) receipts from customers related to the underlying accounts receivable are reflected as operating cash flows and borrowings and repayments under the collateralized loans are reflected as financing cash flows within our Consolidated Statements of Cash Flows.

5 7/8% Senior Subordinated Notes

On February 9, 2012, Lamar Media completed an institutional private placement of $500,000 aggregate principal amount of 5 7/8% Senior Subordinated Notes, due 2022 (the “5 7/8% Senior Subordinated Notes”). The institutional private placement resulted in net proceeds to Lamar Media of approximately $489,000. The Company used the proceeds from the Term B loans to redeem all of the 5 7/8% Notes on March 19, 2018 at a redemption price of 101.958% of the aggregate principal amount of the outstanding 5 7/8% Notes, plus accrued and unpaid interest up to but not including the redemption date. In conjunction with the redemption the Company recorded a loss on debt extinguishment of $15,429, of which $9,790 was cash, for the year ended December 31, 2018.

5% Senior Subordinated Notes

On October 30, 2012, Lamar Media completed an institutional private placement of $535,000 aggregate principal amount of 5% Senior Subordinated Notes due 2023 (the “5% Senior Subordinated Notes”). The institutional private placement resulted in net proceeds to Lamar Media of approximately $527,100.

Lamar Media may redeem the 5% Senior Subordinated Notes, in whole or in part, in cash at redemption prices specified in the 5% Senior Subordinated Notes. In addition, if the Company or Lamar Media undergoes a change of control, Lamar Media may be required to make an offer to purchase each holder’s 5% Senior Subordinated Notes at a price equal to 101% of the principal amount of the 5% Senior Subordinated Notes, plus accrued and unpaid interest, up to but not including the repurchase date.

5 3/8% Senior Notes

On January 10, 2014, Lamar Media completed an institutional private placement of $510,000 aggregate principal amount of 5 3/8% Senior Notes due 2024 (the “5 3/8% Senior Notes”). The institutional private placement resulted in net proceeds to Lamar Media of approximately $502,300.

    At any time prior to January 15, 2019, Lamar Media may redeem some or all of the 5 3/8% Senior Notes at a price equal to 100% of the aggregate principal amount, plus accrued and unpaid interest thereon and a make-whole premium. On or after January 15, 2019, Lamar Media may redeem the 5 3/8% Senior Notes, in whole or in part, in cash at redemption prices specified in the 5 3/8% Senior Notes. In addition, if the Company or Lamar Media undergoes a change of control, Lamar Media may be required to make an offer to purchase each holder’s 5 3/8% Senior Notes at a price equal to 101% of the principal amount of the 5 3/8% Senior Notes, plus accrued and unpaid interest, up to but not including the repurchase date.

5 3/4% Senior Notes

On January 28, 2016, Lamar Media completed an institutional private placement of $400,000 aggregate principal amount of 5 3/4% Senior Notes due 2026 (the “5 3/4 % Senior Notes”). The institutional private placement resulted in net proceeds to Lamar Media of approximately $394,500.

Lamar Media may redeem up to 35% of the aggregate principal amount of the 5 3/4% Senior Notes, at any time and from time to time, at a price equal to 105.750% of the aggregate principal amount so redeemed, plus accrued and unpaid interest thereon, with the net cash proceeds of certain public equity offerings completed before February 1, 2019, provided that following the redemption, at least 65% of the 5 3/4%  Senior Notes that were originally issued remain outstanding and any such redemption occurs within 120 days following the closing of any such public equity offering. At any time prior to February 1, 2021, Lamar Media may redeem some or all of the 5 3/4% Senior Notes at a price equal to 100% of the aggregate principal amount, plus accrued and unpaid interest thereon plus a make-whole premium. On or after February 1, 2021, Lamar Media may redeem the 5 3/4% Senior Notes, in whole or in part, in cash at redemption prices specified in the 5 3/4% Senior Notes. In addition, if the Company or Lamar Media undergoes a change of control, Lamar Media may be required to make an offer to purchase each holder’s 5 3/4% Senior Notes at a price equal to 101% of the principal amount of the 5 3/4% Senior Notes, plus accrued and unpaid interest, up to but not including the repurchase date.

LAMAR MEDIA CORP. AND SUBSIDIARIES [Member]

Long-term Debt

(5) Long-term Debt

Long-term debt consists of the following at December 31, 2018 and 2017:

	December 31, 2018
	Debt			Deferred financing costs			Debt, net of deferred financing costs
Senior Credit Facility	$	1,291,088		$	11,576		$	1,279,512
Accounts Receivable Securitization Program		175,000			1,168			173,832
5% Senior Subordinated Notes		535,000			4,104			530,896
5 3/8% Senior Notes		510,000			4,262			505,738
5 3/4% Senior Notes		400,000			4,754			395,246
Other notes with various rates and terms		3,464			—			3,464
		2,914,552			25,864			2,888,688
Less current maturities		(209,365	)		(5,245	)		(204,120	)
Long-term debt, excluding current maturities	$	2,705,187		$	20,619		$	2,684,568
	December 31, 2017
	Debt			Deferred financing costs			Debt, net of deferred financing costs
Senior Credit Facility	$	636,750		$	7,689		$	629,061
5 7/8% Senior Subordinated Notes		500,000			5,850			494,150
5% Senior Subordinated Notes		535,000			4,927			530,073
5 3/8% Senior Notes		510,000			4,982			505,018
5 3/4% Senior Notes		400,000			5,271			394,729
Other notes with various rates and terms		3,659			—			3,659
		2,585,409			28,719			2,556,690
Less current maturities		(22,797	)		(5,133	)		(17,664	)
Long-term debt, excluding current maturities	$	2,562,612		$	23,586		$	2,539,026

Long-term debt contractual maturities are as follows:

	Debt		Deferred financing costs		Debt, net of deferred financing costs
2019	$	34,365	$	5,245	$	29,120
2020	$	56,881	$	5,368	$	51,513
2021	$	248,773	$	5,498	$	243,275
2022	$	556,256	$	4,064	$	552,192
2023	$	541,275	$	2,900	$	538,375
Later years	$	1,477,002	$	2,789	$	1,474,213

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Asset Retirement Obligation

12 Months Ended

Dec. 31, 2018

Asset Retirement Obligation Disclosure [Abstract]

Asset Retirement Obligation

(10) Asset Retirement Obligation

The Company’s asset retirement obligation includes the costs associated with the removal of its structures, resurfacing of the land and retirement cost, if applicable, related to the Company’s outdoor advertising portfolio. The following table reflects information related to our asset retirement obligations:

Balance at December 31, 2016	$	210,889
Additions to asset retirement obligations		4,003
Accretion expense		4,236
Liabilities settled		(4,039	)
Balance at December 31, 2017	$	215,089
Additions to asset retirement obligations		7,583
Accretion expense		4,404
Liabilities settled		(4,087	)
Balance at December 31, 2018	$	222,989

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Depreciation and Amortization

12 Months Ended

Dec. 31, 2018

Depreciation And Amortization [Abstract]

Depreciation and Amortization

(11) Depreciation and Amortization

The Company includes all categories of depreciation and amortization on a separate line in its Statements of Income. The amounts of depreciation and amortization expense excluded from the following operating expenses in its Statements of Income are:

	Year Ended December 31,
	2018		2017		2016
Direct expenses	$	212,585	$	196,107	$	191,169
General and administrative expenses		4,134		4,151		3,650
Corporate expenses		8,542		10,846		10,139
	$	225,261	$	211,104	$	204,958

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Income Taxes

12 Months Ended

Dec. 31, 2018

Income Taxes

(12) Income Taxes

Commencing January 1, 2014, the Company began operating as a REIT for U.S. income tax purposes. Since operating as a REIT, the Company filed, and intends to continue to file, as a REIT, and its TRSs filed, and intend to continue to file, as C corporations. The Company also files tax returns in various states and countries. The Company’s state tax returns reflect different combinations of the Company’s subsidiaries and are dependent on the connection each subsidiary has with a particular state. The following information pertains to the Company’s income taxes on a consolidated basis.

On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (the “TCJA”) was signed into law, making significant changes to the Internal Revenue Code.  As a result of the TCJA, a tax benefit of $3,372 and $466 was recorded to current tax expense and deferred tax expense, respectively, for the year ended December 31, 2017.

Income tax expense (benefit) consists of the following:

	Current		Deferred			Total
Year ended December 31, 2018:
U.S. federal	$	4,952	$	435		$	5,387
State and local		2,615		(123	)		2,492
Foreign		1,592		1,226			2,818
	$	9,159	$	1,538		$	10,697
Year ended December 31, 2017:
U.S. federal	$	4,174	$	359		$	4,533
State and local		2,706		(170	)		2,536
Foreign		1,546		615			2,161
	$	8,426	$	804		$	9,230
Year ended December 31, 2016:
U.S. federal	$	9,518	$	(935	)	$	8,583
State and local		2,681		(6	)		2,675
Foreign		1,500		598			2,098
	$	13,699	$	(343	)	$	13,356

 As of December 31, 2018 and 2017, the Company had income taxes (payable) receivable of $(458) and $3,106, respectively.

The U.S. and foreign components of earnings before income taxes are as follows:

	2018			2017			2016
U.S.	$	317,695		$	332,607		$	313,429
Foreign		(1,766	)		(5,701	)		(1,264	)
Total	$	315,929		$	326,906		$	312,165

A reconciliation of significant differences between the reported amount of income tax expense and the expected amount of income tax expense that would result from applying the U.S. federal statutory income tax rate of 21 percent to income before taxes for the 2018 tax year and 35 percent for the 2017 and 2016 tax years, is as follows:

	2018			2017			2016
Income tax expense at U.S. federal statutory rate	$	66,345		$	114,417		$	109,257
Tax adjustment related to REIT(a)		(63,669	)		(109,294	)		(101,868	)
State and local income taxes, net of federal income    tax benefit		1,461			1,193			1,481
Book expenses not deductible for tax purposes		1,926			2,635			2,465
Stock-based compensation		1,090			(121	)		169
Valuation allowance(b)		3,813			3,953			2,340
Rate change(c)		(80	)		(466	)		(19	)
Undistributed earnings of foreign subsidiaries(d)		(393	)		1,363			—
Minimum tax credit refundable(e)		—			(4,108	)		—
Other differences, net(f)		204			(342	)		(469	)
Income tax expense	$	10,697		$	9,230		$	13,356

^(a) Includes dividend paid deduction of $69,818, $110,442 and $102,888 for the tax years ended December 31, 2018, 2017 and 2016, respectively.

^(b) For the years ended December 31, 2018, 2017 and 2016, a non-cash valuation allowance of $3,813, $3,953 and $2,340, respectively, was recorded to income tax expense due to our limited ability to utilize Puerto Rico deferred tax assets in future years.

^(c) Under the TCJA, the U.S. corporate income tax rate was lowered from 35% to 21%.  As a result, a non-cash benefit of $466 to income tax expense was recorded for the reduction of the U.S. net deferred tax liability for the year ended December 31, 2017.

^(d) In periods prior to December 31, 2017, the undistributed earnings of our Canadian subsidiaries were designated as permanently reinvested.  As of December 31, 2017, however, management did not assert that the undistributed earnings of our Canadian subsidiaries will be permanently reinvested.  For the years ended December 31, 2018 and 2017, we recognized a deferred tax (benefit) charge of $(393) and $1,363, respectively, for future foreign withholding taxes related to undistributed earnings.

^(e) Under the TCJA, the corporate alternative minimum tax was repealed and any minimum tax carryforwards not utilized become fully refundable in 2021.  The Company does not expect to utilize its minimum tax credit carryforward. As a result, a cash benefit of $4,108 to income tax expense was recorded for the year ended December 31, 2017.

^(f) Upon enactment, the TCJA includes a one-time transition tax on the mandatory deemed repatriation of cumulative foreign earnings, net of foreign tax credits. As a result, a cash charge of $736 to income tax expense was recorded for the year ended December 31, 2017.

The tax effect of temporary differences that give rise to significant portions of the deferred tax assets and (liabilities) are presented below:

	2018			2017
Deferred tax assets:
Allowance for doubtful accounts	$	654		$	709
Accrued liabilities not deducted for tax purposes		7,022			3,648
Asset retirement obligation		—			124
Net operating loss carry forwards		34,716			18,617
Tax credit carry forwards		320			153
Charitable contributions carry forward		47			7
Property, plant and equipment		—			2,300
Investment in partnerships		—			240
Gross deferred tax assets		42,759			25,798
Less: valuation allowance		(23,934	)		(20,120	)
Net deferred tax assets		18,825			5,678
Deferred tax liabilities:
Intangibles		(6,565	)		(5,199	)
Investment in partnerships		(31,746	)		—
Property, plant and equipment		(366	)		—
Undistributed earnings of foreign subsidiaries		(882	)		(1,363	)
Gross deferred tax liabilities		(39,559	)		(6,562	)
Net deferred tax liabilities	$	(20,734	)	$	(884	)

As of December 31, 2018, we have approximately $285,126 of U.S. net operating loss carry forwards to offset future taxable income. Of this amount, $63,716 is subject to Internal Revenue Code §382 limitation but will be available to be fully utilized by no later than 2032. These carry forwards expire between 2029 through 2032. In addition, we have $4,799 of various credits available to offset future U.S. federal income tax. Under the TCJA, the corporate alternative minimum tax was repealed and any minimum tax credit carryforwards not utilized become fully refundable in 2021. We do not expect to utilize our minimum tax credit of $4,108 before 2021.

As of December 31, 2018 we have approximately $724,635 of state net operating loss carry forwards before valuation allowances. These state net operating losses are available to reduce future taxable income and expire at various times and amounts. In addition, we have $190 of various credits available to offset future state income tax. There was no valuation allowance related to state net operating loss carry forwards as of December 31, 2018 and 2017. There were no net changes in the total state valuation allowance for the years ended December 31, 2018 and 2017.   

During 2018, we generated $7,377 of Puerto Rico net operating losses. As of December 31, 2018, we had approximately $51,642 of Puerto Rico net operating loss carry forwards before valuation allowances. These Puerto Rico net operating losses are available to offset future taxable income. These carry forwards expire between 2019 and 2028. In addition, we have $153 of alternative minimum tax credits available to offset future Puerto Rico income tax.

In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income in those jurisdictions during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities (including the impact of available carry back and carry forward periods), projected future taxable income, and tax-planning strategies in making this assessment. In order to fully realize the deferred tax assets, the Company will need to generate future taxable income before the expiration of the carry forwards governed by the tax code. Based on the current level of pretax earnings, the Company will not generate the minimum amount of future taxable income to support the realization of the deferred tax assets. As a result, management has determined that a valuation allowance related to Puerto Rico net operating loss carry forwards and other deferred tax assets is necessary. The valuation allowance for these deferred tax assets as of December 31, 2018 and 2017 was $23,934 and $20,120, respectively. The net change in the total valuation allowance for the years ended December 31, 2018 and 2017 was an increase of $3,814 and $3,953, respectively. The amount of the deferred tax asset considered realizable, however, could be adjusted in the near term if estimates of future taxable income during the carry forward period increase.

As of December 31, 2018, the Company has accumulated undistributed earnings generated by our foreign subsidiaries of approximately $22,528. Management does not designate these earnings as permanently reinvested and has recognized a deferred tax liability of approximately $882 related to foreign withholding taxes on these earnings. We have recognized a current year tax expense of $234 related to 2018 earnings and a tax benefit of $(635) related to prior year earnings repatriated in 2018.

Under ASC 740 Income Taxes, we provide for uncertain tax positions, and the related interest, and adjust recognized tax benefits and accrued interest accordingly. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

Balance as of December 31, 2016	$	772
Additions for tax positions related to current year		1,122
Additions for tax positions related to prior years		173
Reductions for tax positions related to prior years		—
Lapse of statute of limitations		—
Settlements		—
Balance as of December 31, 2017	$	2,067
Additions for tax positions related to current year		932
Additions for tax positions related to prior years		238
Reductions for tax positions related to prior years		—
Lapse of statute of limitations		(30	)
Settlements		—
Balance as of December 31, 2018	$	3,207

Included in the balance of unrecognized benefits at December 31, 2018 is $3,207 of tax benefits that, if recognized in future periods, would impact our effective tax rate. During the years ended December 31, 2018 and 2017, we recognized interest and penalties of $411 and $213, respectively, as a component of income tax expense in connection with our liabilities related to uncertain tax positions.

Within the next twelve months, we expect to decrease our unrecognized tax benefits by approximately $112 as a result of the expiration of statute of limitations.

We are subject to income taxes in the U.S. and nearly all states. In addition, the Company is subject to income taxes in Canada and the Commonwealth of Puerto Rico. We are no longer subject to U.S federal income tax examinations by tax authorities for years prior to 2013, or for any U.S. state income tax audit prior to 2010. The Internal Revenue Service has completed a review of the 2013 income tax return. With respect to Canada and Puerto Rico, we are no longer subject to income tax audits for years before 2015 and 2014, respectively.

LAMAR MEDIA CORP. AND SUBSIDIARIES [Member]

Income Taxes

(6) Income Taxes

On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (the “TCJA”) was signed into law, making significant changes to the Internal Revenue Code. As a result of the TCJA, a tax benefit of $3,372 and $466 was recorded to current tax expense and deferred tax expense, respectively, for the year ended December 31, 2017.

Income tax expense (benefit) consists of the following:

	Current		Deferred			Total
Year ended December 31, 2018:
U.S. federal	$	4,952	$	435		$	5,387
State and local		2,615		(123	)		2,492
Foreign		1,592		1,226			2,818
	$	9,159	$	1,538		$	10,697
Year ended December 31, 2017:
U.S. federal	$	4,174	$	359		$	4,533
State and local		2,706		(170	)		2,536
Foreign		1,546		615			2,161
	$	8,426	$	804		$	9,230
Year ended December 31, 2016:
U.S. federal	$	9,518	$	(935	)	$	8,583
State and local		2,681		(6	)		2,675
Foreign		1,500		598			2,098
	$	13,699	$	(343	)	$	13,356

 As of December 31, 2018 and 2017, the Company had income taxes (payable) receivable of $(458) and $3,106, respectively, included in accrued expenses.

The U.S. and foreign components of earnings before income taxes are as follows:

	2018			2017			2016
U.S.	$	318,094		$	332,989		$	313,801
Foreign		(1,766	)		(5,701	)		(1,264	)
Total	$	316,328		$	327,288		$	312,537

A reconciliation of significant differences between the reported amount of income tax expense and the expected amount of income tax expense that would result from applying the U.S. federal statutory income tax rate of 21 percent to income before taxes for the 2018 tax year and 35 percent for the 2017 and 2016 tax years, is as follows:

	2018			2017			2016
Income tax expense at U.S. federal statutory rate	$	66,429		$	114,551		$	109,388
Tax adjustment related to REIT(a)		(63,753	)		(109,294	)		(101,999	)
State and local income taxes, net of federal income    tax benefit		1,461			1,193			1,481
Book expenses not deductible for tax purposes		1,926			2,635			2,465
Stock-based compensation		1,090			(121	)		169
Valuation allowance(b)		3,813			3,953			2,340
Rate Change(c)		(80	)		(466	)		(19	)
Undistributed earnings of foreign subsidiaries(d)		(393	)		1,363			—
Minimum tax credit refundable(e)		—			(4,108	)		—
Other differences, net(f)		204			(476	)		(469	)
Income tax expense	$	10,697		$	9,230		$	13,356

^(a) Includes dividend paid deduction of $69,902, $110,824 and $102,888 for the tax years ended December 31, 2018, 2017 and 2016, respectively.

^(b) For the years ended December 31, 2018, 2017 and 2016, a non-cash valuation allowance of $3,813, $3,953 and $2,340, respectively, was recorded to income tax expense due to our limited ability to utilize Puerto Rico deferred tax assets in future years.

^(c) Under the TCJA, the U.S. corporate income tax rate was lowered from 35% to 21%.  As a result, a non-cash benefit of $466 to income tax expense was recorded for the reduction of the U.S. net deferred tax liability for the year ended December 31, 2017.

^(d) In periods prior to December 31, 2017, the undistributed earnings of our Canadian subsidiaries were designated as permanently reinvested.  As of December 31, 2017, however, management did not assert that the undistributed earnings of our Canadian subsidiaries will be permanently reinvested.  For the years ended December 31, 2018 and 2017, we recognized a deferred tax (benefit) charge of $(393) and $1,363 for future foreign withholding taxes related to undistributed earnings.

^(e) Under the TCJA, the corporate alternative minimum tax was repealed and any minimum tax carryforwards not utilized become fully refundable in 2021.  The Company does not expect to utilize its minimum tax credit carryforward. As a result, a cash benefit of $4,108 to income tax expense was recorded for the year ended December 31, 2017.

^(f) Upon enactment, the TCJA includes a one-time transition tax on the mandatory deemed repatriation of cumulative foreign earnings, net of foreign tax credits. As a result, a cash charge of $736 to income tax expense was recorded for the year ended December 31, 2017.

The tax effect of temporary differences that give rise to significant portions of the deferred tax assets and (liabilities) are presented below:

	2018			2017
Deferred tax assets:
Allowance for doubtful accounts	$	654		$	709
Accrued liabilities not deducted for tax purposes		7,022			3,648
Asset retirement obligation		—			124
Net operating loss carry forwards		34,716			18,617
Tax credit carry forwards		320			153
Charitable contributions carry forward		47			7
Property, plant and equipment		—			2,300
Investment in partnership		—			240
Gross deferred tax assets		42,759			25,798
Less: valuation allowance		(23,934	)		(20,120	)
Net deferred tax assets		18,825			5,678
Deferred tax liabilities:
Intangibles		(6,565	)		(5,199	)
Investment in partnership		(31,746	)		—
Property, plant and equipment		(366	)		—
Undistributed earnings of foreign subsidiaries		(882	)		(1,363	)
Gross deferred tax liabilities		(39,559	)		(6,562	)
Net deferred tax liabilities	$	(20,734	)	$	(884	)

As of December 31, 2018, we have approximately $148,993 of U.S. net operating loss carry forwards to offset future taxable income. Of this amount, $63,716 is subject to an Internal Revenue Code §382 limitation but will be available to be fully utilized by no later than 2032. These carry forwards expire between 2029 and 2032. As of December 31, 2018, the Company has $14,771 of various tax credits available to offset future U.S. federal taxable income. Also, the Company recognized a $4,108 tax benefit related to its minimum tax credit carryforwards which we do not expect to utilize before 2021.

As of December 31, 2018, we have approximately $686,914 state net operating loss carry forwards before valuation allowances. These state net operating losses are available to reduce future taxable income and expire at various times and amounts. In addition, we have $190 of various credits available to offset future state income tax. There was no valuation allowance related to state net operating loss carry forwards as of December 31, 2018 and December 31, 2017.  There were no net changes in the total state valuation allowance for the years ended December 31, 2018 and 2017. 

During 2018 we generated $7,377 of Puerto Rico net operating losses. As of December 31, 2018, we had approximately $51,642 of Puerto Rico net operating loss carry forwards before valuation allowances. These Puerto Rico net operating losses are available to offset future taxable income. These carry forwards expire between 2019 and 2028. In addition, we have $153 of alternative minimum tax credits available to offset future Puerto Rico income tax.

In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income in those jurisdictions during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities (including the impact of available carry back and carry forward periods), projected future taxable income, and tax-planning strategies in making this assessment. In order to fully realize the deferred tax assets, the Company will need to generate future taxable income before the expiration of the carry forwards governed by the tax code. Based on the current level of pretax earnings, the Company will not generate the minimum amount of future taxable income to support the realization of the deferred tax assets. As a result, management has determined that a valuation allowance related to Puerto Rico net operating loss carry forwards and other deferred tax assets is necessary. The valuation allowance for these deferred tax assets as of December 31, 2018 and 2017 was $23,934 and $20,120, respectively. The net change in the total valuation allowance for the years ended December 31, 2018 and 2017 was an increase of $3,814 and $3,953, respectively. The amount of the deferred tax asset considered realizable, however, could be adjusted in the near term if estimates of future taxable income during the carry forward period increase.

As of December 31, 2018, the Company has accumulated undistributed earnings generated by our foreign subsidiaries of approximately $22,528. Management does not designate these earnings as permanently reinvested. We have recognized a deferred tax liability of approximately $882 related to foreign withholding taxes on these earnings. We have recognized a current year tax expense of $234 related to 2018 earnings and a tax benefit of $(635) related to prior year earnings repatriated in 2018.

Under ASC 740 Income Taxes, we provide for uncertain tax positions, and the related interest, and adjust recognized tax benefits and accrued interest accordingly. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

Balance as of December 31, 2016	$	772
Additions for tax positions related to current year		1,122
Additions for tax positions related to prior years		173
Reductions for tax positions related to prior years		—
Lapse of statute of limitations		—
Settlements		—
Balance as of December 31, 2017	$	2,067
Additions for tax positions related to current year		932
Additions for tax positions related to prior years		238
Reductions for tax positions related to prior years		—
Lapse of statute of limitations		(30	)
Settlements		—
Balance as of December 31, 2018	$	3,207

Included in the balance of unrecognized benefits at December 31, 2018 is $3,207 of tax benefits that, if recognized in future periods, would impact our effective tax rate. During the year ended December 31, 2018 and 2017, we recognized interest and penalties of $411 and $213 , respectively, as a component of income tax expense in connection with our liabilities related to uncertain tax positions.

Within the next twelve months, we expect to decrease our unrecognized tax benefits by approximately $112 as a result of the expiration of statute of limitations.

We are subject to income taxes in the U.S. and nearly all states. In addition, the Company is subject to income taxes in Canada and the Commonwealth of Puerto Rico. We are no longer subject to U.S federal income tax examinations by tax authorities for years prior to 2013, or for any U.S. state income tax audit prior to 2010. The IRS has completed a review of the 2013 income tax return. With respect to Canada and Puerto Rico, we are no longer subject to income tax audits for years before 2015 and 2014, respectively.

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Related Party Transactions

12 Months Ended

Dec. 31, 2018

Related Party Transactions

(13) Related Party Transactions

Affiliates, as used within these statements, are persons or entities that are affiliated with Lamar Advertising Company or its subsidiaries through common ownership and directorate control.  

The Company had receivables from employees of $80 at December 31, 2018. There were no receivables from employees at December 31, 2017. These receivables are primarily relocation loans for employees. The Company does not have any receivables from its current executive officers.

LAMAR MEDIA CORP. AND SUBSIDIARIES [Member]

Related Party Transactions

(7) Related Party Transactions

Affiliates, as used within these statements, are persons or entities that are affiliated with Lamar Media Corp. or its subsidiaries through common ownership and directorate control.

As of December 31, 2018 and December 31, 2017, there was a payable to Lamar Advertising Company, its parent, in the amount of $5,571 and $6,731, respectively.

Effective December 31, 2018 and December 31, 2017, Lamar Advertising Company contributed $89,967 and $49,187, respectively, to Lamar Media which resulted in an increase in Lamar Media’s additional paid-in capital.

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Stockholders' Equity

12 Months Ended

Dec. 31, 2018

Equity [Abstract]

Stockholders' Equity

(14) Stockholders’ Equity

On July 16, 1999, the Board of Directors designated 5,720 shares of the 1,000,000 shares of previously undesignated preferred stock, par value $.001, as Series AA preferred stock, which shares were subsequently exchanged on a one for one basis in the REIT conversion. The Series AA preferred stock ranks senior to the Class A common stock and Class B common stock with respect to dividends and upon liquidation. Holders of Series AA preferred stock are entitled to receive, on a pari passu basis, dividends at the rate of $15.95 per share per quarter when, as and if declared by the Board of Directors. The Series AA preferred stock is entitled to receive, on a pari passu basis, $638 plus a further amount equal to any dividend accrued and unpaid to the date of distribution before any payments are made or assets distributed to the Class A common stock or Class B stock upon voluntary or involuntary liquidation, dissolution or winding up of the Company. The liquidation value of the outstanding Series AA preferred stock at December 31, 2018 was $3,649. The Series AA preferred stock is entitled to one vote per share.

All of the outstanding shares of common stock are fully paid and nonassessable. In the event of the liquidation or dissolution of the Company, following any required distribution to the holders of outstanding shares of preferred stock, the holders of common stock are entitled to share pro rata in any balance of the corporate assets available for distribution to them. The Company may pay dividends if, when and as declared by the Board of Directors from funds legally available therefore, subject to the restrictions set forth in the Company’s existing indentures and the senior credit facility. Subject to the preferential rights of the holders of any class of preferred stock, holders of shares of common stock are entitled to receive such dividends as may be declared by the Company’s Board of Directors out of funds legally available for such purpose. No dividend may be declared or paid in cash or property on any share of either class of common stock unless simultaneously the same dividend is declared or paid on each share of the other class of common stock, provided that, in the event of stock dividends, holders of a specific class of common stock shall be entitled to receive only additional shares of such class.

The rights of the Class A and Class B common stock are equal in all respects, except holders of Class B common stock have ten votes per share on all matters in which the holders of common stock are entitled to vote and holders of Class A common stock have one vote per share on such matters. The Class B common stock will convert automatically into Class A common stock upon the sale or transfer to persons other than permitted transferees (as defined in the Company’s certificate of incorporation, as amended).

On December 11, 2014, the Company announced that its Board of Directors authorized the repurchase of up to $250,000 of the Company’s Class A common stock (the “repurchase program”). There were no repurchases under the repurchase program which expired on June 30, 2016.

On May 1, 2018, the Company entered into an equity distribution agreement (the “Sales Agreement”) with J.P. Morgan Securities LLC, Wells Fargo Securities LLC, and SunTrust Robinson Humphrey, Inc. as its sales agents (each a “Sales Agent”, and collectively, the “Sales Agents”). Under the terms of the Sales Agreement, the Company may, from time to time, issue and sell shares of its Class A common stock, par value $0.001 per share (the “Class A Common Stock”), having an aggregate offering price of up to $400,000, through the Sales Agents as either agents or principals. As of December 31, 2018, 576,002 shares of our Class A Common Stock have been sold under the Sales Agreement and accordingly $357,885 remains available to be sold under the Sales Agreement.

Sales of the Class A Common Stock, if any, may be made in negotiated transactions or transactions that are deemed to be “at-the-market offerings” as defined in Rule 415 under the Securities Act of 1933, as amended, including sales made directly on or through the Nasdaq Global Select Market and any other existing trading market for the Class A Common Stock, or sales made to or through a market maker other than on an exchange. The Company has no obligation to sell any of the Class A Common Stock under the Sales Agreement and may at any time suspend solicitations and offers under the Sales Agreement.

On August 6, 2018, the Company filed an automatically effective shelf registration statement that registered the offer and sale of an indeterminate amount of additional shares of our Class A common stock. As of December 31, 2018, the Company issued 163,137 shares of its Class A common stock in connection with acquisitions occurring during the period. The Company filed a prospectus supplement to the shelf registration statement relating to the offer and resale of such shares of Class A common stock.

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Stock Compensation Plans

12 Months Ended

Dec. 31, 2018

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Stock Compensation Plans

(15) Stock Compensation Plans

Equity Incentive Plan. Lamar’s 1996 Equity Incentive Plan, as amended, (the “1996 Plan”) has reserved 15.5 million shares of common stock for issuance to directors and employees, including options granted and common stock reserved for issuance under its performance-based incentive program. Options granted under the 1996 Plan expire ten years from the grant date with vesting terms ranging from three to five years which primarily includes 1) options that vest in one-fifth increments beginning on the grant date and continuing on each of the first four anniversaries of the grant date and 2) options that cliff-vest on the fifth anniversary of the grant date. All grants are made at fair market value based on the closing price of our Class A common stock as reported on the NASDAQ Global Select Market on the date of grant.

In February 2013, the 1996 Plan was amended to eliminate the provision that limited the amount of Class A common stock, including shares retained from an award, that could be withheld to satisfy tax withholding obligations to the minimum tax obligations required by law (except with respect to option awards). In accordance with ASC 718, Compensation – Stock Compensation, the Company is required to classify the awards affected by the amendment as liability-classified awards at fair value each period prior to their settlement. As of December 31, 2018 and 2017, the Company recorded a liability, in accrued expenses, of $19,211 and $4,793, respectively, related to its equity incentive awards affected by this amendment.

We use a Black-Scholes-Merton option pricing model to estimate the fair value of share-based awards. The Black-Scholes-Merton option pricing model incorporates various highly subjective assumptions, including expected term and expected volatility. We have reviewed our historical pattern of option exercises and have determined that meaningful differences in option exercise activity existed among vesting schedules. Therefore, for all stock options granted after January 1, 2006, we have categorized these awards into two groups of vesting 1) 5-year cliff vest and 2) 4-year graded vest, for valuation purposes. We have determined there were no meaningful differences in employee activity under our ESPP due to the nature of the plan.

We estimate the expected term of options granted using an implied life derived from the results of a hypothetical mid-point settlement scenario, which incorporates our historical exercise, expiration and post-vesting employment termination patterns, while accommodating for partial life cycle effects. We believe these estimates will approximate future behavior.

We estimate the expected volatility of our Class A common stock at the grant date using a blend of 90% historical volatility of our Class A common stock and 10% implied volatility of publicly traded options with maturities greater than six months on our Class A common stock as of the option grant date. Our decision to use a blend of historical and implied volatility was based upon the volume of actively traded options on our common stock and our belief that historical volatility alone may not be completely representative of future stock price trends.

Our risk-free interest rate assumption is determined using the Federal Reserve nominal rates for U.S. Treasury zero-coupon bonds with maturities similar to those of the expected term of the award being valued. We assumed an expected dividend yield of 5%.

We estimate option forfeitures at the time of grant and periodically revise those estimates in subsequent periods if actual forfeitures differ from those estimates. We record stock-based compensation expense only for those awards expected to vest using an estimated forfeiture rate based on our historical forfeiture data.

The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions used:

Grant Year	Dividend Yield	Expected Volatility	Risk Free Interest Rate	Expected Lives
2018	5%	46%	2%		6
2017	5%	45%	2%		6
2016	5%	45%	2%		6

Information regarding the 1996 Plan for the year ended December 31, 2018 is as follows:

	Shares			Weighted Average Exercise Price		Weighted Average Contractual Life
Outstanding, beginning of year		1,099,877		$	44.00
Granted		104,000			67.21
Exercised		(361,618	)		37.15
Forfeited		(5,400	)		73.56
Expired		—			—
Outstanding, end of year		836,859			49.65		5.34
Exercisable at end of year		650,359			44.59		4.43

At December 31, 2018 there was $2,837 of unrecognized compensation cost related to stock options granted which is expected to be recognized over a weighted-average period of 1.77 years.

Shares available for future stock option and restricted share grants to employees and directors under existing plans were 975,215 at December 31, 2018. The aggregate intrinsic value of options outstanding as of December 31, 2018 was $16,821, and the aggregate intrinsic value of options exercisable was $16,143. Total intrinsic value of options exercised was $12,378 for the year ended December 31, 2018.

Stock Purchase Plan. In 2009 our Board of Directors adopted a new employee stock purchase plan, the 2009 Employee Stock Purchase Plan (the “2009 ESPP”), which was approved by our shareholders on May 28, 2009. The 2009 ESPP reserved 588,154 shares of Class A common stock for issuance to our employees, which included 88,154 shares of Class A common stock that had been available for issuance under our 2000 Employee Stock Purchase Plan (the “ 2000 ESPP”). The 2000 ESPP was terminated following the issuance of all shares that were subject to the offer that commenced under the 2000 ESPP on January 1, 2009 and ended June 30, 2009. The terms of the 2009 ESPP are substantially the same as the 2000 ESPP.

The number of shares of Class A common stock available under the 2009 ESPP was automatically increased by 83,838 shares on January 1, 2018 pursuant to the automatic increase provisions of the 2009 ESPP. The following is a summary of 2009 ESPP share activity for the year ended December 31, 2018:

	Shares
Available for future purchases, January 1, 2018		225,418
Additional shares reserved under 2009 ESPP		83,838
Purchases		(126,012	)
Available for future purchases, December 31, 2018		183,244

Performance-based compensation. Unrestricted shares of our Class A common stock may be awarded to key officers and employees under our 1996 Plan based on certain Company performance measures for fiscal 2018. The number of shares to be issued, if any, are dependent on the level of achievement of these performance measures as determined by the Company’s Compensation Committee based on our 2018 results and were issued in the first quarter of 2019. The shares subject to these awards can range from a minimum of 0% to a maximum of 100% of the target number of shares depending on the level at which the goals are attained. Based on the Company’s performance measures achieved through December 31, 2018, the Company has accrued $18,929 as compensation expense related to these agreements.

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Benefit Plans

12 Months Ended

Dec. 31, 2018

Compensation And Retirement Disclosure [Abstract]

Benefit Plans

(16) Benefit Plans

The Company sponsors a partially self-insured group health insurance program. The Company is obligated to pay all claims under the program, which are in excess of premiums, up to program limits. The Company is also self-insured with respect to its income disability benefits and against casualty losses on advertising structures. Amounts for expected losses, including a provision for losses incurred but not reported, is included in accrued expenses in the accompanying consolidated financial statements. As of December 31, 2018, the Company maintained $8,091 in letters of credit with a bank to meet requirements of the Company’s worker’s compensation and general liability insurance carrier.

Savings and Profit Sharing Plan

The Company sponsors The Lamar Corporation Savings and Profit Sharing Plan covering eligible employees who have completed one year of service and are at least 21 years of age. The Company has the option to match 50% of employees’ contributions up to 5% of eligible compensation. Employees can contribute up to 100% of compensation. Full vesting on the Company’s matched contributions occurs after three years for contributions made after January 1, 2002. Annually, at the Company’s discretion, an additional profit sharing contribution may be made on behalf of each eligible employee. The Company matched contributions of $4,966, $4,715 and $4,545 for the years ended December 31, 2018, 2017 and 2016, respectively.

Deferred Compensation Plan

The Company sponsors a Deferred Compensation Plan for the benefit of certain of its board-elected officers who meet specific age and years of service and other criteria. Officers that have attained the age of 30 and have a minimum of 10 years of service to the Company and satisfy additional eligibility guidelines are eligible for annual contributions to the plan generally ranging from $3 to $8, depending on the employee’s length of service. The Company’s contributions to the plan are maintained in a rabbi trust and, accordingly, the assets and liabilities of the plan are reflected in the balance sheet of the Company in other assets and other liabilities. Upon termination, death or disability, participating employees are eligible to receive an amount equal to the fair market value of the assets in the employee’s deferred compensation account. For the years ended December 31, 2018, 2017 and 2016, the Company contributed $1,585, $1,526 and $1,487, respectively.

On December 8, 2005, the Company’s Board of Directors approved an amendment to the Lamar Deferred Compensation Plan in order to (1) to comply with the requirements of Section 409A of the Internal Revenue Code (“Section 409A”) applicable to deferred compensation and (2) to reflect changes in the administration of the plan. The Company’s Board of Directors also approved the adoption of a grantor trust pursuant to which amounts may be set aside, but remain subject to claims of the Company’s creditors, for payments of liabilities under the new plan, including amounts contributed under the old plan. The plan was further amended in August 2007 to make certain amendments to reflect Section 409A regulations issued on April 10, 2007. An additional clarifying amendment was made to the plan in December 2013.

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Commitment and Contingencies

12 Months Ended

Dec. 31, 2018

Commitments And Contingencies Disclosure [Abstract]

Commitment and Contingencies

(17) Commitment and Contingencies

The Company is involved in various claims and legal actions arising in the ordinary course of business. In the opinion of management, the ultimate disposition of these matters will not have a material adverse effect on the Company’s consolidated financial position, results of operations, or liquidity.

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Distribution Restrictions

12 Months Ended

Dec. 31, 2018

Distribution Restrictions [Abstract]

Distribution Restrictions

(18) Distribution Restrictions

Lamar Media’s ability to make distributions to Lamar Advertising is restricted under both the terms of the indentures relating to Lamar Media’s outstanding notes and by the terms of its senior credit facility. As of December 31, 2018 and December 31, 2017, Lamar Media was permitted under the terms of its outstanding senior subordinated and senior notes to make transfers to Lamar Advertising in the form of cash dividends, loans or advances in amounts up to $3,156,061 and $2,975,593, respectively.

As of December 31, 2018, Lamar Media’s senior credit facility allows it to make transfers to Lamar Advertising in any taxable year up to the amount of Lamar Advertising’s taxable income (without any deduction for dividends paid). In addition, as of December 31, 2018, transfers to Lamar Advertising are permitted under Lamar Media’s senior credit facility and as defined therein up to the available cumulative credit, as long as no default has occurred and is continuing and, after giving effect to such distributions, (i) the total debt ratio is less than 6.5 to 1 and (ii) the secured debt ratio does not exceed 3.5 to 1. As of December 31, 2018, the total debt ratio was less than 6.5 to 1 and Lamar Media’s secured debt ratio was less than 3.5 to 1, and the available cumulative credit was $1,906,541.

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Fair Value of Financial Instruments

12 Months Ended

Dec. 31, 2018

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

(19) Fair Value of Financial Instruments

At December 31, 2018 and 2017, the Company’s financial instruments included cash and cash equivalents, marketable securities, accounts receivable, investments, accounts payable and borrowings. The fair values of cash and cash equivalents, accounts receivable, accounts payable and short-term borrowings and current portion of long-term debt approximated carrying values because of the short-term nature of these instruments. Investments and initial recognition of asset retirement obligations are reported at fair values. Fair values for investments held at cost are not readily available, but are estimated to approximate fair value. The estimated fair value of the Company’s long term debt (including current maturities) was $2,904,851, which is less than both the gross and carrying amount of $2,914,552 as of December 31, 2018. The majority of the fair value is determined using observed prices of publicly traded debt (level 1 in the fair value hierarchy) and the remaining is valued based on quoted prices for similar debt (level 2 in the fair value hierarchy).

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Information about Geographic Areas

12 Months Ended

Dec. 31, 2018

Segment Reporting [Abstract]

Information about Geographic Areas

(20) Information about Geographic Areas

Revenues from external customers attributable to foreign countries totaled $35,146, $33,424 and $32,669 for the years ended December 31, 2018, 2017 and 2016, respectively. Net carrying value of long lived assets located in foreign countries totaled $2,387 and $3,571 as of December 31, 2018 and 2017, respectively. All other revenues from external customers and long lived assets relate to domestic operations.

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New Accounting Pronouncements

12 Months Ended

Dec. 31, 2018

New Accounting Pronouncements And Changes In Accounting Principles [Abstract]

New Accounting Pronouncements

(21) New Accounting Pronouncements

Revenue

In May 2014, the FASB issued Accounting Standards Update (“ASU”) No. 2014-09 (Codified as ASC 606), Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU replaced most existing revenue recognition guidance in U.S. GAAP when it became effective. In August 2015, the FASB issued ASU No. 2015-14 deferring the effective date from January 1, 2017 to January 1, 2018, while allowing for early adoption as of January 1, 2017. The standard permits the use of either the retrospective or cumulative effect transition method. The Company adopted the provisions of ASC 606 on January 1, 2018 using the cumulative effect transition method. The Company did not have an adjustment to its opening balance of retained earnings for the adoption of this update.

Leases

In February 2016, the FASB established Topic 842, Leases, by issuing Accounting Standards Update (ASU) No. 2016-02, which requires lessees to recognize leases on-balance sheet and disclose key information about leasing arrangements. Topic 842 was subsequently amended by ASU No. 2018-01, Land Easement Practical Expedient for Transition to Topic 842; ASU No. 2018-10, Codification Improvements to Topic 842, Leases; and ASU No. 2018-11, Targeted Improvements. The new standard establishes a right-of-use model (ROU) that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement.

The new standard is effective for us on January 1, 2019, with early adoption permitted. A modified retrospective transition approach is required, applying the new standard to all leases existing at the date of initial application. An entity may choose to use either (1) its effective date or (2) the beginning of the earliest comparative period presented in the financial statements as its date of initial application. If an entity chooses the second option, the transition requirements for existing leases also apply to leases entered into between the date of initial application and the effective date. The entity must also recast its comparative period financial statements and provide the disclosures required by the new standard for the comparative periods. We expect to adopt the new standard on January 1, 2019 and use the effective date as our date of initial application. Consequently, financial information will not be updated and the disclosures required under the new standard will not be provided for dates and periods before January 1, 2019.

The new standard provides a number of optional practical expedients in transition. We expect to elect the ‘package of practical expedients’, which permits us not to reassess under the new standard our prior conclusions about lease identification, lease classification and initial direct costs. We also expect to elect the use of hindsight and the practical expedient pertaining to land easements. We expect to elect all of the new standard’s available transition practical expedients.

We expect that this standard will have a material effect on our financial statements. While we continue to assess all of the effects of adoption, we currently believe the most significant effects relate to (1) the recognition of new ROU assets and lease liabilities on our balance sheet for our billboard, logo, building and vehicle operating leases; (2) reclassification within our balance sheet of current asset prepaid operating lease balances to be a reduction of our lease liabilities and; (3) providing significant new disclosures about our leasing activities.

On adoption, we currently expect to recognize additional operating liabilities exceeding $1.1 billion, with corresponding ROU assets of the same amount based on the present value of the remaining minimum rental payments under current leasing standards for our existing operating leases.

The new standard also provides practical expedients for a company’s ongoing accounting. We currently expect to elect the short-term lease recognition exemption for our vehicle leases. This means, for those leases that qualify, we will not recognize ROU assets or lease liabilities. This includes not recognizing ROU assets or lease liabilities for existing short-term leases of those assets in transition.

Other recently released pronouncements

In March 2016, the FASB issued ASU 2016-09, Compensation – Stock Compensation: Improvements to Employee Share-Based Payment Accounting.  The update is designed to simplify accounting for share-based payment transactions, including income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows.  The update is effective for annual periods beginning January 1, 2017 with early adoption permitted.  The adoption of this update did not have a material impact on the Company’s consolidated financial statements.

In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows – Classification of Certain Cash Receipts and Cash Payments.  The update clarifies how certain cash receipts and cash payments are presented in the statement of cash flows.  The update is effective for annual periods beginning January 1, 2018 with early adoption permitted.  The Company adopted the update for the period ended December 31, 2016.  The update did not have a material impact on the Company’s consolidated statement of cash flows.

In January 2017, the FASB issued ASU No. 2017-01, Business Combinations: Clarifying the definition of a business.  The update clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions of assets or businesses.  The update is effective for annual periods beginning after December 15, 2017, including interim periods within those periods.  Early adoption is allowed for transactions in which the acquisition date occurs before the issuance date or effective date of the amendment, but only when the transaction has not been reported in financial statements that have been issued or made available for issuance. The Company adopted the update for transactions that occurred on or after October 1, 2016. The adoption of this update did not have a material impact on the Company’s consolidated financial statements.

In January 2017, the FASB issued ASU No. 2017-04, Intangibles – Goodwill and other (Topic 350): Simplifying the test for goodwill impairment. The update simplifies how a company completes its goodwill impairment test by eliminating the two-step process, which requires determining the fair value of assets acquired or liabilities assumed in a business combination. The update requires completing the goodwill impairment test by comparing the difference between the reporting unit’s carrying value and fair value.  Goodwill charges, if any, would be determined by reducing the goodwill balance by the excess of the reporting unit’s carrying value over its fair value.  The update is effective for annual and interim fiscal periods beginning after December 15, 2019, with early adoption permitted for interim or annual goodwill impairment tests performed on or after January 1, 2017.  The Company adopted this update beginning with its December 31, 2017 goodwill impairment test.

In November 2018, the FASB issued ASU No. 2018-18, Collaborative Arrangements (Topic 808). The update is to clarify when certain transactions between collaborative arrangement participants should be accounted for as revenue under Topic 606 and when the collaborative arrangement participant is a customer in the context of a unit of account. The update also adds unit-of-account guidance in Topic 808 and requires that a collaborative arrangement participant that is not directly related to sales to a third party, presenting the transaction together with revenue recognized under Topic 606 is precluded if the collaborative arrangement participant is not a customer. The update is effective for annual and interim fiscal periods beginning after December 15, 2019 with early adoption permitted.  The Company does not believe this update will have a material effect on the Company’s consolidated financial statements.

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Quarterly Financial Data (Unaudited)

12 Months Ended

Dec. 31, 2018

Quarterly Financial Data (Unaudited)

(22) Quarterly Financial Data (Unaudited)

The tables below represent the balances for the selected quarterly financial data of the Company for each reporting period in the years ended December 31, 2018 and 2017.

	Year 2018 Quarters
	March 31		June 30		September 30		December 31
Net revenues	$	361,026	$	419,800	$	418,498	$	427,898
Net revenues less direct advertising expenses	$	222,733	$	279,016	$	277,799	$	285,826
Net income applicable to common stock	$	14,961	$	100,340	$	93,965	$	95,601
Net income per common share basic	$	0.15	$	1.02	$	0.95	$	0.97
Net income per common share diluted	$	0.15	$	1.02	$	0.95	$	0.96

	Year 2017 Quarters
	March 31		June 30		September 30		December 31
Net revenues	$	346,362	$	397,078	$	399,345	$	398,475
Net revenues less direct advertising expenses	$	214,518	$	262,003	$	264,368	$	259,491
Net income applicable to common stock	$	41,696	$	92,303	$	96,240	$	87,072
Net income per common share basic	$	0.43	$	0.94	$	0.98	$	0.89
Net income per common share diluted	$	0.42	$	0.94	$	0.98	$	0.89

LAMAR MEDIA CORP. AND SUBSIDIARIES [Member]

Quarterly Financial Data (Unaudited)

(8) Quarterly Financial Data (Unaudited)

The tables below represent the balances for the selected quarterly financial data of the Company for each reporting period in the years ended December 31, 2018 and 2017.

	Year 2018 Quarters
	March 31		June 30		September 30		December 31
Net revenues	$	361,026	$	419,800	$	418,498	$	427,898
Net revenues less direct advertising expenses	$	222,733	$	279,016	$	277,799	$	285,826
Net income	$	15,158	$	100,520	$	94,165	$	95,788

	Year 2017 Quarters
	March 31		June 30		September 30		December 31
Net revenues	$	346,362	$	397,078	$	399,345	$	398,475
Net revenues less direct advertising expenses	$	214,518	$	262,003	$	264,368	$	259,491
Net income	$	41,893	$	92,479	$	96,437	$	87,249

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Divestiture of Assets

12 Months Ended

Dec. 31, 2018

Assets Of Disposal Group Including Discontinued Operation [Abstract]

Divestiture of Assets

(23) Divestiture of Assets

On April 16, 2018 the Company sold its assets in Puerto Rico for $3,000 in cash and non-cash consideration consisting of a note receivable for $9,250 due April 2024. The Company recorded a loss on the sale of $7,809 for the year ended December 31, 2018.

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Subsequent Events

12 Months Ended

Dec. 31, 2018

Subsequent Events [Abstract]

Subsequent Events

(24) Subsequent Events

On January 17, 2019, Lamar Media entered into an incremental amendment to the senior credit facility to include $100,000 in additional revolving commitments, thereby increasing the total borrowing capacity under the revolving credit facility to $550,000.

On February 1, 2019, Lamar Media issued $250,000 in aggregate principle amount of 5 3/4% Senior Notes due 2026 through an institutional private placement (the “New Notes”).  The New Notes were issued as additional notes to the existing $400,000 aggregate principal amount of 5 3/4% Senior Notes due 2026 that Lamar issued on January 28, 2016 (the “Existing Notes”).  Other than with respect to the date of issuance, issue price and CUSIP number, the New Notes have the same terms as the Existing Notes.  Once the New Notes are registered under the Securities Act and exchanged for exchange notes or become freely tradable under Rule 144, Lamar Media expects that the New Notes and the Existing Notes will share a single CUSIP number and thereafter be fungible.  The net proceeds after underwriting fees and expenses, was approximately $251,500 and were used to repay a portion of the borrowings outstanding under the revolving credit facility.

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Schedule II - Valuation and Qualifying Accounts

12 Months Ended

Dec. 31, 2018

Schedule II - Valuation and Qualifying Accounts

SCHEDULE II

LAMAR ADVERTISING COMPANY

AND SUBSIDIARIES

Valuation and Qualifying Accounts

Years Ended December 31, 2018, 2017 and 2016

(In thousands)

	Balance at Beginning of Period		Charged to Costs and Expenses		Deductions		Balance at End of Period
Year ended December 31, 2018
Deducted in balance sheet from trade accounts receivable:
Allowance for doubtful accounts	$	10,055		8,472		7,366	$	11,161
Deducted in balance sheet from deferred tax assets:
Valuation allowance	$	20,120		3,814		—	$	23,934
Year ended December 31, 2017
Deducted in balance sheet from trade accounts receivable:
Allowance for doubtful accounts	$	9,356		6,762		6,063	$	10,055
Deducted in balance sheet from deferred tax assets:
Valuation allowance	$	16,167		3,953		—	$	20,120
Year ended December 31, 2016
Deducted in balance sheet from trade accounts receivable:
Allowance for doubtful accounts	$	8,984		6,870		6,498	$	9,356
Deducted in balance sheet from deferred tax assets:
Valuation allowance	$	13,827		2,340		—	$	16,167

LAMAR MEDIA CORP. AND SUBSIDIARIES [Member]

Schedule II - Valuation and Qualifying Accounts

SCHEDULE II

LAMAR MEDIA CORP.

AND SUBSIDIARIES

Valuation and Qualifying Accounts

Years Ended December 31, 2018, 2017 and 2016

(In thousands)

	Balance at Beginning of Period		Charged to Costs and Expenses		Deductions		Balance at End of Period
Year ended December 31, 2018
Deducted in balance sheet from trade accounts receivable:
Allowance for doubtful accounts	$	10,055		8,472		7,366	$	11,161
Deducted in balance sheet from deferred tax assets:
Valuation allowance	$	20,120		3,814		—	$	23,934
Year ended December 31, 2017
Deducted in balance sheet from trade accounts receivable:
Allowance for doubtful accounts	$	9,356		6,762		6,063	$	10,055
Deducted in balance sheet from deferred tax assets:
Valuation allowance	$	16,167		3,953		—	$	20,120
Year ended December 31, 2016
Deducted in balance sheet from trade accounts receivable:
Allowance for doubtful accounts	$	8,984		6,870		6,498	$	9,356
Deducted in balance sheet from deferred tax assets:
Valuation allowance	$	13,827		2,340		—	$	16,167

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Schedule III - Real Estate and Accumulated Depreciation

12 Months Ended

Dec. 31, 2018

Schedule III - Real Estate and Accumulated Depreciation

SCHEDULE III

LAMAR ADVERTISING COMPANY

AND SUBSIDIARIES

Schedule of Real Estate and Accumulated Depreciation

December 31, 2018, 2017 and 2016

(In thousands)

Description(1)

Encumbrances

Initial Cost(2)

Gross Carrying Amount(3)

Accumulated Depreciation

Construction Date

Acquisition Date

Useful Lives

359,138 Displays

—

—

$

3,201,434

$

(2,082,335

)

Various

Various

5 to 20 years

⁽¹⁾ No single asset exceeded 5% of the total gross carrying amount at December 31, 2018

⁽²⁾ This information is omitted, as it would be impracticable to compile such information on a site-by-site basis

⁽³⁾ Includes sites under construction

The following table summarizes activity for the Company’s real estate assets, which consists of advertising displays and the related accumulated depreciation.

	December 31,			December 31,			December 31,
	2018			2017			2016
Gross real estate assets:
Balance at the beginning of the year	$	3,074,046		$	2,998,540		$	2,856,243
Capital expenditures on new advertising displays(4)		54,151			49,946			50,799
Capital expenditures on improvements/redevelopments of existing advertising displays		12,781			6,265			12,031
Capital expenditures other recurring		34,758			32,523			26,254
Land acquisitions(6)		15,368			14,904			30,283
Acquisition of advertising displays(5) (6)		82,617			32,109			69,821
Assets sold or written-off		(70,494	)		(61,306	)		(47,317	)
Foreign exchange		(1,793	)		1,065			426
Balance at the end of the year	$	3,201,434		$	3,074,046		$	2,998,540
Accumulated depreciation:
Balance at the beginning of the year	$	2,025,251		$	1,973,958		$	1,910,860
Depreciation		106,700			102,494			100,197
Assets sold or written-off		(48,488	)		(51,976	)		(37,373	)
Foreign exchange		(1,128	)		775			274
Balance at the end of the year	$	2,082,335		$	2,025,251		$	1,973,958

⁽⁴⁾ Includes non-cash amounts of $446, $921 and $379 at December 31, 2018, 2017 and 2016, respectively

⁽⁵⁾ Includes non-cash amounts of $7,199, $3,043 and $4,623 at December 31, 2018, 2017 and 2016, respectively

⁽⁶⁾ Includes preliminary allocation of assets acquired from Fairway at December 31, 2018

LAMAR MEDIA CORP. AND SUBSIDIARIES [Member]

Schedule III - Real Estate and Accumulated Depreciation

SCHEDULE III

LAMAR MEDIA CORP.

AND SUBSIDIARIES

Schedule of Real Estate and Accumulated Depreciation

December 31, 2018, 2017 and 2016

(In thousands)

Description(1)

Encumbrances

Initial Cost(2)

Gross Carrying Amount(3)

Accumulated Depreciation

Construction Date

Acquisition Date

Useful Lives

359,138 Displays

—

—

$

3,201,434

$

(2,082,335

)

Various

Various

5 to 20 years

⁽¹⁾ No single asset exceeded 5% of the total gross carrying amount at December 31, 2018

⁽²⁾ This information is omitted, as it would be impracticable to compile such information on a site-by-site basis

⁽³⁾ Includes sites under construction

The following table summarizes activity for the Company’s real estate assets, which consists of advertising displays and the related accumulated depreciation.

	December 31, 2018			December 31, 2017			December 31, 2016
Gross real estate assets:
Balance at the beginning of the year	$	3,074,046		$	2,998,540		$	2,856,243
Capital expenditures on new advertising displays(4)		54,151			49,946			50,799
Capital expenditures on improvements/redevelopments of existing advertising displays		12,781			6,265			12,031
Capital expenditures other recurring		34,758			32,523			26,254
Land acquisitions(6)		15,368			14,904			30,283
Acquisition of advertising displays(5) (6)		82,617			32,109			69,821
Assets sold or written-off		(70,494	)		(61,306	)		(47,317	)
Foreign exchange		(1,793	)		1,065			426
Balance at the end of the year	$	3,201,434		$	3,074,046		$	2,998,540
Accumulated depreciation:
Balance at the beginning of the year	$	2,025,251		$	1,973,958		$	1,910,860
Depreciation		106,700			102,494			100,197
Assets sold or written-off		(48,488	)		(51,976	)		(37,373	)
Foreign exchange		(1,128	)		775			274
Balance at the end of the year	$	2,082,335		$	2,025,251		$	1,973,958

⁽⁴⁾ Includes non-cash amounts of $446, $921 and $379 at December 31, 2018, 2017 and 2016, respectively

⁽⁵⁾ Includes non-cash amounts of $7,199, $3,043 and $4,623 at December 31, 2018, 2017 and 2016, respectively

⁽⁶⁾ Includes preliminary allocation of assets acquired from Fairway at December 31, 2018

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Summarized Financial Information of Subsidiaries

12 Months Ended

Dec. 31, 2018

LAMAR MEDIA CORP. AND SUBSIDIARIES [Member]

Summarized Financial Information of Subsidiaries

(9) Summarized Financial Information of Subsidiaries

Separate condensed consolidating financial information for Lamar Media,subsidiary guarantors and non-guarantor subsidiaries are presented below. Lamar Media and its subsidiary guarantors have fully and unconditionally guaranteed Lamar Media’s obligations with respect to its publicly issued notes. All guarantees are joint and several. As a result of these guarantee arrangements, we are required to present the following condensed consolidating financial information. The following condensed consolidating financial information should be read in conjunction with the accompanying consolidated financial statements and notes. The condensed consolidating financial information is provided as an alternative to providing separate financial statements for guarantor subsidiaries. Separate financial statements of Lamar Media’s subsidiary guarantors are not included because the guarantees are full and unconditional and the subsidiary guarantors are 100% owned and jointly and severally liable for Lamar Media’s outstanding publicly issued notes. The accounts for all companies reflected herein are presented using the equity method of accounting for investments in subsidiaries.

Condensed Consolidating Balance Sheet as of December 31, 2018
	Lamar Media Corp.		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Lamar Media Consolidated
ASSETS
Total current assets	$	4,653	$	121,549	$	236,967	$	—		$	363,169
Net property, plant and equipment		—		1,289,348		5,700		—			1,295,048
Intangibles and goodwill, net		—		2,804,915		19,304		—			2,824,219
Other assets		4,056,288		230,504		184,247		(4,425,589	)		45,450
Total assets	$	4,060,941	$	4,446,316	$	446,218	$	(4,425,589	)	$	4,527,886
LIABILITIES AND STOCKHOLDER'S EQUITY
Current liabilities:
Current maturities of long-term debt	$	29,086	$	34	$	175,000	$	—		$	204,120
Other current liabilities		27,067		204,103		14,578		—			245,748
Total current liabilities		56,153		204,137		189,578		—			449,868
Long-term debt		2,684,500		68		—		—			2,684,568
Other noncurrent liabilities		200,092		246,312		251,835		(424,985	)		273,254
Total liabilities		2,940,745		450,517		441,413		(424,985	)		3,407,690
Stockholders’ equity		1,120,196		3,995,799		4,805		(4,000,604	)		1,120,196
Total liabilities and stockholders’ equity	$	4,060,941	$	4,446,316	$	446,218	$	(4,425,589	)	$	4,527,886

Condensed Consolidating Balance Sheet as of December 31, 2017
	Lamar Media Corp.		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Lamar Media Consolidated
ASSETS
Total current assets	$	87,167	$	293,536	$	39,316	$	—		$	420,019
Net property, plant and equipment		—		1,193,705		20,433		—			1,214,138
Intangibles and goodwill, net		—		2,495,370		30,812		—			2,526,182
Other assets		3,707,352		10,571		7		(3,680,327	)		37,603
Total assets	$	3,794,519	$	3,993,182	$	90,568	$	(3,680,327	)	$	4,197,942
LIABILITIES AND STOCKHOLDER'S EQUITY
Current liabilities:
Current maturities of long-term debt	$	17,664	$	—	$	—	$	—		$	17,664
Other current liabilities		120,500		164,393		19,429		—			304,322
Total current liabilities		138,164		164,393		19,429		—			321,986
Long-term debt		2,539,026		—		—		—			2,539,026
Other noncurrent liabilities		26,231		218,900		61,587		(60,886	)		245,832
Total liabilities		2,703,421		383,293		81,016		(60,886	)		3,106,844
Stockholders’ equity		1,091,098		3,609,889		9,552		(3,619,441	)		1,091,098
Total liabilities and stockholders’ equity	$	3,794,519	$	3,993,182	$	90,568	$	(3,680,327	)	$	4,197,942

Condensed Consolidating Statements of Income and Comprehensive Income for the Year Ended December 31, 2018
	Lamar Media Corp.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Lamar Media Consolidated
Statement of Income
Net revenues	$	—		$	1,579,619		$	50,352		$	(2,749	)	$	1,627,222
Operating expenses
Direct advertising expenses (1)		—			537,269			27,307			(2,728	)		561,848
General and administrative expenses (1)		—			280,874			8,554			—			289,428
Corporate expenses (1)		—			80,861			1,636			—			82,497
Depreciation and amortization		—			219,341			5,920			—			225,261
(Gain) loss on disposition of assets		—			(576	)		7,809			—			7,233
		—			1,117,769			51,226			(2,728	)		1,166,267
Operating income (loss)		—			461,850			(874	)		(21	)		460,955
Equity in (earnings) loss of subsidiaries		(450,791	)		—			—			450,791			—
Interest expense (income), net		129,731			(99	)		(413	)		(21	)		129,198
Other expenses		15,429			—			—			—			15,429
Income (loss) before income tax expense		305,631			461,949			(461	)		(450,791	)		316,328
Income tax expense (2)		—			7,879			2,818			—			10,697
Net income (loss)	$	305,631		$	454,070		$	(3,279	)	$	(450,791	)	$	305,631
Statement of Comprehensive Income
Net income (loss)	$	305,631		$	454,070		$	(3,279	)	$	(450,791	)	$	305,631
Total other comprehensive income, net of tax		—			—			(1,290	)		—			(1,290	)
Total comprehensive income (loss)	$	305,631		$	454,070		$	(4,569	)	$	(450,791	)	$	304,341
(1) Caption is exclusive of depreciation and amortization.
(2) The income tax expense reflected in each column does not include any tax effect of the equity in earnings from subsidiaries.

Condensed Consolidating Statements of Income and Comprehensive Income for the Year Ended December 31, 2017
	Lamar Media Corp.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Lamar Media Consolidated
Statement of Income
Net revenues	$	—		$	1,494,275		$	51,332		$	(4,347	)	$	1,541,260
Operating expenses
Direct advertising expenses (1)		—			512,247			31,277			(2,644	)		540,880
General and administrative expenses (1)		—			266,798			9,431			—			276,229
Corporate expenses (1)		—			60,830			1,132			—			61,962
Depreciation and amortization		—			201,424			9,680			—			211,104
(Gain) loss on disposition of assets		—			(5,704	)		1,040			—			(4,664	)
		—			1,035,595			52,560			(2,644	)		1,085,511
Operating income (loss)		—			458,680			(1,228	)		(1,703	)		455,749
Equity in (earnings) loss of subsidiaries		(446,520	)		—			—			446,520			—
Interest expense (income), net		128,391			(5	)		1,707			(1,703	)		128,390
Other expenses		71			—			—			—			71
Income (loss) before income tax expense		318,058			458,685			(2,935	)		(446,520	)		327,288
Income tax expense (2)		—			7,069			2,161			—			9,230
Net income (loss)	$	318,058		$	451,616		$	(5,096	)	$	(446,520	)	$	318,058
Statement of Comprehensive Income
Net income (loss)	$	318,058		$	451,616		$	(5,096	)	$	(446,520	)	$	318,058
Total other comprehensive income, net of tax		—			—			1,926			—			1,926
Total comprehensive income (loss)	$	318,058		$	451,616		$	(3,170	)	$	(446,520	)	$	319,984
(1) Caption is exclusive of depreciation and amortization.
(2) The income tax expense reflected in each column does not include any tax effect of the equity in earnings from subsidiaries.

Condensed Consolidating Statements of Income and Comprehensive Income for the Year Ended December 31, 2016
	Lamar Media Corp.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Lamar Media Consolidated
Statement of Income
Net revenues	$	—		$	1,450,997		$	53,190		$	(3,893	)	$	1,500,294
Operating expenses
Direct advertising expenses (1)		—			497,011			31,197			(2,611	)		525,597
General and administrative expenses (1)		—			259,152			10,271			—			269,423
Corporate expenses (1)		—			74,587			1,407			—			75,994
Depreciation and amortization		—			197,117			7,841			—			204,958
(Gain) loss on disposition of assets		—			(15,365	)		270			—			(15,095	)
		—			1,012,502			50,986			(2,611	)		1,060,877
Operating income (loss)		—			438,495			2,204			(1,282	)		439,417
Equity in (earnings) loss of subsidiaries		(426,053	)		—			—			426,053			—
Interest expense (income), net		123,674			(6	)		1,296			(1,282	)		123,682
Other expenses		3,198			—			—			—			3,198
Income (loss) before income tax expense		299,181			438,501			908			(426,053	)		312,537
Income tax expense (2)		—			11,258			2,098			—			13,356
Net income (loss)	$	299,181		$	427,243		$	(1,190	)	$	(426,053	)	$	299,181
Statement of Comprehensive Income
Net income (loss)	$	299,181		$	427,243		$	(1,190	)	$	(426,053	)	$	299,181
Total other comprehensive income, net of tax		—			—			554			—			554
Total comprehensive income (loss)	$	299,181		$	427,243		$	(636	)	$	(426,053	)	$	299,735
(1) Caption is exclusive of depreciation and amortization.
(2) The income tax expense reflected in each column does not include any tax effect of the equity in earnings from subsidiaries.

Condensed Consolidating Statement of Cash Flows for the Year Ended December 31, 2018
	Lamar Media Corp.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Lamar Media Consolidated
Cash flows from operating activities:
Net cash provided by (used in) operating activities	$	430,896		$	689,718		$	(17,143	)	$	(566,386	)	$	537,085
Cash flows from investing activities:
Acquisitions		—			(477,389	)		—			—			(477,389	)
Capital expenditures		—			(113,259	)		(4,379	)		—			(117,638	)
Proceeds from disposition of assets and investments		—			3,839			2,809			—			6,648
Proceeds received from insurance claims		—			—			4,222			—			4,222
Investment in subsidiaries		(498,226	)		—			—			498,226			—
Decrease in intercompany notes receivable		30,034			—			—			(30,034	)		—
Decrease in notes receivable		9			—			—			—			9
Net cash (used in) provided by investing activities		(468,183	)		(586,809	)		2,652			468,192			(584,148	)
Cash flows from financing activities:
Proceeds received from revolving credit facility		563,000			—			—			—			563,000
Payment on revolving credit facility		(481,000	)		—			—			—			(481,000	)
Principal payments on long-term debt		(27,297	)		(31	)		—			—			(27,328	)
Proceeds received from senior credit facility term loans		599,250			—			—			—			599,250
Proceeds received from receivable financing agreement		—			—			175,000			—			175,000
Debt issuance costs		(7,616	)		—			—			—			(7,616	)
Redemption on senior subordinated notes		(509,790	)		—			—			—			(509,790	)
Intercompany loan proceeds (payments)		175,000			(24,688	)		(180,346	)		30,034			—
Distributions to non-controlling interest		—			—			(541	)		—			(541	)
Contributions from (to) parent		89,967			498,226			—			(498,226	)		89,967
Dividends (to) from parent		(446,744	)		(566,386	)		—			566,386			(446,744	)
Net cash (used in) provided by financing activities		(45,230	)		(92,879	)		(5,887	)		98,194			(45,802	)
Effect of exchange rate changes in cash and cash equivalents		—			—			(1,112	)		—			(1,112	)
Net increase in cash and cash equivalents		(82,517	)		10,030			(21,490	)		—			(93,977	)
Cash and cash equivalents at beginning of period		86,546			1,625			26,800			—			114,971
Cash and cash equivalents at end of period	$	4,029		$	11,655		$	5,310		$	—		$	20,994

Condensed Consolidating Statement of Cash Flows for the Year Ended December 31, 2017
	Lamar Media Corp.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Lamar Media Consolidated
Cash flows from operating activities:
Net cash provided by (used in) operating activities	$	383,370		$	602,504		$	2,174		$	(503,808	)	$	484,240
Cash flows from investing activities:
Acquisitions		3,750			(298,901	)		(2,154	)		—			(297,305	)
Capital expenditures		—			(104,325	)		(5,004	)		—			(109,329	)
Proceeds from disposition of assets and investments		—			6,053			—			—			6,053
Investment in subsidiaries		(301,055	)		—			—			301,055			—
(Increase) decrease in intercompany notes receivable		(7,624	)		—			—			7,624			—
Decrease in notes receivable		515			—			—			—			515
Net cash (used in) provided by investing activities		(304,414	)		(397,173	)		(7,158	)		308,679			(400,066	)
Cash flows from financing activities:
Principal payments on long-term debt		(16,993	)		—			—			—			(16,993	)
Payment on revolving credit facility		(477,000	)		—			—			—			(477,000	)
Proceeds received from revolving credit facility		495,000			—			—			—			495,000
Payment on senior credit facility		(247,500	)		—			—			—			(247,500	)
Proceeds received from senior credit facility		450,000			—			—			—			450,000
Debt issuance costs		(4,941	)		—			—			—			(4,941	)
Intercompany loan proceeds (payments)		—			—			7,624			(7,624	)		—
Distributions to non-controlling interest		—			—			(693	)		—			(693	)
Contributions from (to) parent		49,187			298,901			2,154			(301,055	)		49,187
Dividends (to) from parent		(252,925	)		(503,808	)		—			503,808			(252,925	)
Net cash (used in) provided by financing activities		(5,172	)		(204,907	)		9,085			195,129			(5,865	)
Effect of exchange rate changes in cash and cash equivalents		—			—			1,632			—			1,632
Net increase in cash and cash equivalents		73,784			424			5,733			—			79,941
Cash and cash equivalents at beginning of period		12,762			1,201			21,067			—			35,030
Cash and cash equivalents at end of period	$	86,546		$	1,625		$	26,800		$	—		$	114,971

Condensed Consolidating Statement of Cash Flows for the Year Ended December 31, 2016
	Lamar Media Corp.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Lamar Media Consolidated
Cash flows from operating activities:
Net cash provided by (used in) operating activities	$	394,215		$	597,948		$	7,526		$	(504,423	)	$	495,266
Cash flows from investing activities:
Acquisitions		—			(585,054	)		—			—			(585,054	)
Capital expenditures		—			(104,440	)		(3,172	)		—			(107,612	)
Proceeds from disposition of assets and investments		—			11,662			—			—			11,662
Investment in subsidiaries		(585,054	)		—			—			585,054			—
(Increase) decrease in intercompany notes receivable		(260	)		—			—			260			—
Decrease in notes receivable		21			—			—			—			21
Net cash (used in) provided by investing activities		(585,293	)		(677,832	)		(3,172	)		585,314			(680,983	)
Cash flows from financing activities:
Principal payments on long-term debt		(21,118	)		—			—			—			(21,118	)
Payment on revolving credit facility		(403,000	)		—			—			—			(403,000	)
Proceeds received from revolving credit facility		483,000			—			—			—			483,000
Proceeds received from note offering		400,000			—			—			—			400,000
Payment on senior credit facility		(300,000	)		—			—			—			(300,000	)
Proceeds received from senior credit facility		300,000			—			—			—			300,000
Debt issuance costs		(9,467	)		—			—			—			(9,467	)
Intercompany loan proceeds (payments)		—			—			260			(260	)		—
Distributions to non-controlling interest		—			—			(420	)		—			(420	)
Contributions from (to) parent		49,274			585,054			—			(585,054	)		49,274
Dividends (to) from parent		(299,804	)		(504,423	)		—			504,423			(299,804	)
Net cash provided by (used in) financing activities		198,885			80,631			(160	)		(80,891	)		198,465
Effect of exchange rate changes in cash and cash equivalents		—			—			455			—			455
Net increase in cash and cash equivalents		7,807			747			4,649			—			13,203
Cash and cash equivalents at beginning of period		4,955			454			16,418			—			21,827
Cash and cash equivalents at end of period	$	12,762		$	1,201		$	21,067		$	—		$	35,030

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Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2018

Nature of Business

(a) Nature of Business

Lamar Advertising Company (the Company) is engaged in the outdoor advertising business, operating approximately 156,900 billboard advertising displays in 45 states and Canada. The Company’s operating strategy is to be the leading provider of outdoor advertising services in the markets it serves.

In addition, the Company operates a logo sign business in 23 states throughout the United States and the province of Ontario, Canada and operates approximately 53,300 transit advertising displays in 22 states and Canada. Logo signs are erected pursuant to state-awarded service contracts on public rights-of-way near highway exits and deliver brand name information on available gas, food, lodging and camping services. Included in the Company’s logo sign business are tourism signing contracts. The Company provides transit advertising in airport terminals, on bus shelters, benches and buses in the markets it serves.

The Company operates as a Real Estate Investment Trust (“REIT”) for U.S. federal income tax purposes and generally will not be subject to federal income taxes on its income and gains that the Company distributes to its stockholders, including the income derived from advertising rental revenue. However, even as a REIT, the Company will remain obligated to pay income taxes on earnings from the assets of its taxable REIT subsidiaries (“TRSs”). In addition, the Company’s foreign assets and operations continue to be subject to taxation in the foreign jurisdictions where those assets are held or those operations are conducted.

Principles of Consolidation

(b) Principles of Consolidation

The accompanying consolidated financial statements include Lamar Advertising Company, its wholly owned subsidiary, Lamar Media Corp. (Lamar Media), and its majority-owned subsidiaries. All inter-company transactions and balances have been eliminated in consolidation.

An operating segment is a component of an enterprise:

• that engages in business activities from which it may earn revenues and incur expenses;

• whose operating results are regularly reviewed by the enterprise’s chief operating decision maker to make decisions about resources to be allocated to the segment and assess its performance; and

• for which discrete financial information is available.

We define the term ‘chief operating decision maker’ to be our executive management group, which consist of our Chief Executive Officer, President and Chief Financial Officer. Currently, all operations are reviewed on a consolidated basis for budget and business plan performance by our executive management group. Additionally, operational performance at the end of each reporting period is viewed in the aggregate by our management group. Any decisions related to changes in invested capital, personnel, operational improvement or training, or to allocate other company resources are made based on the combined results.

We operate in a single operating and reporting segment, advertising. We rent advertising space on billboards, buses, shelters, benches, logo plates and in airport terminals.

Property, Plant and Equipment

(c) Property, Plant and Equipment

Property, plant and equipment are stated at cost. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets.

Goodwill and Intangible Assets

(d) Goodwill and Intangible Assets

Goodwill is subject to an annual impairment test. The Company designated December 31 as the date of its annual goodwill impairment test. The Company is required to identify its reporting units and determine the carrying value of each reporting unit. The Company has identified two reporting units, Billboard operations and Logo operations, by assigning the assets and liabilities, including the existing goodwill and intangible assets, to those reporting units. The Company is required to determine the fair value of each reporting unit and compare it to the carrying amount of the reporting unit. To the extent the carrying amount of a reporting unit exceeds the fair value of the reporting unit, the Company would be required to book an impairment loss.

The Company conducts a qualitative assessment by examining relevant events and circumstances which could have a negative impact on the Company’s goodwill, which includes macroeconomic conditions, industry and market conditions, cost factors, overall financial performance, reporting unit dispositions and acquisitions, the market capitalization of the Company and other relevant events specific to the Company. If, after assessing the totality of events or circumstances described above, the Company determines that it is more likely than not that the fair value of either of the Company's reporting units is less than its carrying amount, the Company will perform a quantitative impairment test.  If industry and economic conditions deteriorate, the Company may be required to assess goodwill impairment before the next annual test, which could result in impairment charges.

The Company performed its annual measurement for impairment of the goodwill of its reporting units and concluded the fair value of each reporting unit exceeded its carrying amount at its annual impairment test date on December 31, 2018 and 2017; therefore, the Company was not required to recognize an impairment loss.

Intangible assets, consisting primarily of site locations, customer lists and contracts, and non-competition agreements are amortized using the straight-line method over the assets estimated useful lives, generally from 2 to 15 years.

Impairment of Long-Lived Assets

(e) Impairment of Long-Lived Assets

Long-lived assets, such as property, plant and equipment, and purchased intangibles subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset or asset group before interest expense. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset or asset group. Assets to be disposed of would be separately presented in the balance sheet and reported at the lower of the carrying amount or fair value less costs to sell, and are no longer depreciated. The assets and liabilities of a disposed group classified as held for sale would be presented separately in the appropriate asset and liability sections of the balance sheet.

Acquisitions

(f) Acquisitions

The Company accounts for transactions that meet the definition of a business and group asset purchases as acquisitions.  For transactions that meet the definition of a business combination, the Company allocates the purchase price, including any contingent consideration, to the assets acquired and the liabilities assumed at their estimated fair values as of the date of the acquisition with any excess of the purchase price paid over the estimated fair value of net assets acquired recorded as goodwill. For transactions that meet the definition of asset group purchases, the Company allocates the purchase price to the assets acquired and the liabilities assumed at their estimated fair values as of the date of the acquisition.  If a transaction is determined to be a group of assets, any direct acquisition costs are capitalized. Transaction costs for transactions determined to be a business combination are expensed as incurred.

The fair value of the assets acquired and liabilities assumed is typically determined by using either estimates of replacement costs or discounted cash flow valuation methods. When determining the fair value of tangible assets acquired, the Company must estimate the cost to replace the asset with a new asset, adjusted for an estimated reduction in fair value due to age of the asset, and the economic useful life. When determining the fair value of intangible assets acquired, the Company must estimate the applicable discount rate and the timing and amount of future cash flows. The determination of the final purchase price and the acquisition-date fair value of identifiable assets acquired and liabilities assumed may extend over more than one period and result in adjustments to the preliminary estimate recognized in the prior period financial statements.

Effective October 1, 2016, the Company changed its accounting for business combinations, as further discussed in note 21 to the consolidated financial statements.

Deferred Income

(g) Deferred Income

Deferred income consists principally of advertising revenue invoiced in advance. Deferred advertising revenue is recognized in income over the term of the contract.

Revenue Recognition

(h) Revenue Recognition

The Company recognizes outdoor advertising revenue on an accrual basis ratably over the term of the contracts. Production revenue and the related expense for the advertising copy are recognized upon satisfaction of its performance obligation.

The Company engages in barter transactions where the Company trades advertising space for goods and services. The Company recognizes revenues and expenses from barter transactions at fair value, which is determined based on the Company’s own historical practice of receiving cash for similar advertising space from buyers unrelated to the party in the barter transaction. The amount of revenue and expense recognized for advertising barter transactions is as follows:

	2018		2017		2016
Net revenues	$	8,955	$	8,469	$	8,051
Direct advertising expenses	$	3,633	$	3,603	$	3,559
General and administrative expenses	$	4,758	$	4,332	$	4,067

Income Taxes

(i) Income Taxes

As a REIT, the Company is generally not subject to federal income taxes on income and gains distributed to the Company’s stockholders. However, the Company remains obligated to pay income taxes on earnings from domestic TRSs. In addition, the Company’s foreign assets and operations continue to be subject to taxation in the foreign jurisdictions where those assets are held or where those operations are conducted, including those designated as Qualified REIT Subsidiaries, or QRSs, for federal income tax purposes. Accordingly, the consolidated financial statements reflect provisions for federal, state, local and foreign income taxes. The Company recognizes deferred tax assets and liabilities for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis, as well as operating loss and tax credit carryforwards. The Company measures deferred tax assets and liabilities using enacted tax rates expected to apply to taxable income in the years in which those temporary differences and carry forwards are expected to be recovered or settled. The effect on deferred tax assets and liabilities as a result of a change in tax rates is recognized in income in the period that includes the enactment date.

Dividends/Distributions

(j) Dividends/Distributions

As a REIT, the Company must annually distribute to its stockholders an amount equal to at least 90% of its REIT taxable income (determined before the deduction for distributed earnings and excluding any net capital gain). During the year ended December 31, 2018, the Company paid cash distributions of its REIT taxable income in an aggregate amount of $442,632 or $4.48 per share. The distributions paid during 2018 include distributions declared and accrued as of December 31, 2017 of $81,534 or $0.83 per share. During the year ended December 31, 2017, the Company declared distributions of $325,462 or $3.32 per share, including paid distributions of $243,928 or $2.49 per share. During the year ended 2016, the Company declared and paid distributions of its REIT taxable income of an aggregate of $293,600 or $3.02 per share. The amount, timing and frequency of future distributions will be at the sole discretion of the Board of Directors and will be declared based upon various factors, a number of which may be beyond the Company’s control, including the financial condition and operating cash flows, the amount required to maintain REIT status and reduce any income and excise taxes that the Company otherwise would be required to pay, limitations on distributions in its existing and future debt instruments, the Company’s ability to utilize net operating losses (“NOLs”) to offset, in whole or in part, the Company’s distribution requirements, limitations on its ability to fund distributions using cash generated through its TRSs and other factors that the Board of Directors may deem relevant. During the year ended December 31, 2018, the Company paid cash dividend distributions to holders of its Series AA Preferred Stock in an aggregate amount of $456 or $79.75 per share, including $91, or $15.95 per share, related to distributions declared in 2017. During the years ended December 31, 2017 and 2016, the Company accrued or paid cash dividend distributions to holders of its Series AA Preferred Stock of $365 or $63.80 per share.

Earnings Per Share

(k) Earnings Per Share

The calculation of basic earnings per share excludes any dilutive effect of stock options, while diluted earnings per share includes the dilutive effect of stock options. For the years ended December 31, 2018, 2017 and 2016 there were no dilutive shares excluded from the calculation.

Share Based Compensation

(l) Stock Based Compensation

Compensation expense for share-based awards is recognized based on the grant date fair value of those awards. Stock-based compensation expense includes an estimate for pre-vesting forfeitures and is recognized over the requisite service periods of the awards on a straight-line basis, which is generally commensurate with the vesting term. Non-cash compensation expense recognized during the years ended December 31, 2018, 2017, and 2016 were $29,443, $9,599 and $28,560, respectively. The $29,443 expensed during the year ended December 31, 2018 consists of (i) $3,644 related to stock options, (ii) $25,427 related to stock grants made under the Company’s performance-based stock incentive program in 2018 and (iii) $372 related to stock awards to directors. See Note 15 for information on the assumptions used to calculate the fair value of stock-based compensation.

Cash and Cash Equivalents

(m) Cash and Cash Equivalents

The Company considers all highly-liquid investments with original maturities of three months or less to be cash equivalents.

Foreign Currency Translation

(n) Foreign Currency Translation

Local currencies generally are considered the functional currencies outside the United States. Assets and liabilities for operations in local-currency environments are translated at year-end exchange rates. Income and expense items are translated at average rates of exchange prevailing during the year. Foreign currency translation adjustments are recorded as a component of other comprehensive income (loss) in the Consolidated Statements of Income and Comprehensive Income and as a component of accumulated comprehensive income (loss) in the Consolidated Statements of Stockholders’ Equity.

Asset Retirement Obligations

(o) Asset Retirement Obligations

The Company is required to record the fair value of obligations associated with the retirement of tangible long-lived assets in the period in which it is incurred. The liability is capitalized as part of the related long-lived asset’s carrying amount. Over time, accretion of the liability is recognized as an operating expense and the capitalized cost is depreciated over the expected useful life of the related asset. The Company’s asset retirement obligations relate primarily to the dismantlement, removal, site reclamation and similar activities of its leased properties.

Use of Estimates

(p) Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Comprehensive Income

(q) Comprehensive Income

Total comprehensive income is presented in the Consolidated Statements of Income and Comprehensive Income and the components of accumulated comprehensive income (loss) are presented in the Consolidated Statements of Stockholders’ Equity. Comprehensive income (loss) is composed of foreign currency translation effects.

Fair Value Measurements

(r) Fair Value Measurements

The Company determines the fair value of its financial instruments using the fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value.

Subsequent Events

(s) Subsequent Events

The Company has performed an evaluation of subsequent events through the date on which the financial statements are issued.

Reclassification of prior amounts

(t) Reclassification of prior amounts

Certain amounts in the prior years’ consolidated balance sheet have been reclassified to conform to the current year presentation.

LAMAR MEDIA CORP. AND SUBSIDIARIES [Member]

Nature of Business

(a) Nature of Business

Lamar Media Corp. (“Lamar Media”) is a wholly owned subsidiary of Lamar Advertising Company. Lamar Media is engaged in the outdoor advertising business operating approximately 156,900 outdoor advertising displays in 45 states and Canada. Lamar Media’s operating strategy is to be the leading provider of outdoor advertising services in the markets it serves.

In addition, Lamar Media operates a logo sign business in 23 states throughout the United States as well as the province of Ontario, Canada. Logo signs are erected pursuant to state-awarded service contracts on public rights-of-way near highway exits and deliver brand name information on available gas, food, lodging and camping services. Included in the Company’s logo sign business are tourism signing contracts. The Company provides transit advertising in airport terminals, on bus shelters, benches and buses in the markets it serves.

Certain footnotes are not provided for the accompanying financial statements as the information in notes 2, 3, 5, 7, 10, 11, 13, 14, 15, 16, 17, 18, 19, 20, 21, 23 and 24 and portions of note 1 to the consolidated financial statements of Lamar Advertising Company included elsewhere in this filing are substantially equivalent to that required for the consolidated financial statements of Lamar Media Corp. Earnings per share data is not provided for the operating results of Lamar Media Corp. as it is a wholly owned subsidiary of Lamar Advertising Company.

Principles of Consolidation

(b) Principles of Consolidation

The accompanying consolidated financial statements include Lamar Media, its wholly owned subsidiaries, The Lamar Company, L.L.C., Lamar Central Outdoor, LLC, Lamar TRS Holdings, LLC, Lamar Advertising Southwest, Inc., Interstate Logos, L.L.C., Lamar Obie Company, LLC, Lamar Canadian Outdoor Company, Lamar Advertising of Puerto Rico, Inc. and their majority-owned subsidiaries. All inter-company transactions and balances have been eliminated in consolidation.

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Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2018

Accounting Policies [Abstract]

Revenue and Expense Recognized for Advertising Barter Transactions

The amount of revenue and expense recognized for advertising barter transactions is as follows:

	2018		2017		2016
Net revenues	$	8,955	$	8,469	$	8,051
Direct advertising expenses	$	3,633	$	3,603	$	3,559
General and administrative expenses	$	4,758	$	4,332	$	4,067

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Revenues (Tables)

12 Months Ended

Dec. 31, 2018

Revenue From Contract With Customer [Abstract]

Disaggregation Revenue

The following table presents our disaggregated revenue by source including both revenues accounted for under ASC 840 and ASC 606 for the years ended December 31, 2018, 2017 and 2016.

	2018		2017		2016
Billboard Advertising	$	1,412,978	$	1,340,422	$	1,311,861
Logo Advertising		84,424		82,936		80,533
Transit Advertising		129,820		117,902		107,900
Net Revenues	$	1,627,222	$	1,541,260	$	1,500,294

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Acquisitions (Tables)

12 Months Ended

Dec. 31, 2018

2018 Acquisitions [Member]

Summary of Allocation of Acquisition Costs

The following is a summary of the allocation of the acquisition costs in the above transactions, excluding the preliminary allocation of Fairway.

	Total
Property, plant and equipment	$	8,648
Site locations		57,105
Non-competition agreements		342
Customer lists and contracts		6,521
Asset acquisition costs		336
Current assets		1,041
Current liabilities		(355	)
	$	73,638

Summary of Unaudited Pro Forma Financial Information

The following unaudited pro forma financial information for the Company gives effect to the 2018 and 2017 acquisitions as if they had occurred on January 1, 2017. These pro forma results do not purport to be indicative of the results of operations which actually would have resulted had the acquisitions occurred on such date or to project the Company’s results of operations for any future period.

	2018		2017
	(unaudited)
Net revenues	$	1,699,052	$	1,647,445
Net income applicable to common stock	$	299,493	$	306,900
Net income per common share — basic	$	3.03	$	3.13
Net income per common share — diluted	$	3.02	$	3.12

2017 Acquisitions [Member]

Summary of Allocation of Acquisition Costs

The following is a summary of the allocation of the acquisition costs in the above transactions.

	Total
Property, plant and equipment	$	43,483
Goodwill		13,925
Site locations		216,510
Non-competition agreements		826
Customer lists and contracts		26,397
Asset acquisition costs		529
Current assets		3,583
Current liabilities		(1,733	)
Long–term liabilities		(3,335	)
	$	300,185

Summary of Unaudited Pro Forma Financial Information

The following unaudited pro forma financial information for the Company gives effect to the 2017 and 2016 acquisitions as if they had occurred on January 1, 2016. These pro forma results do not purport to be indicative of the results of operations which actually would have resulted had the acquisitions occurred on such date or to project the Company’s results of operations for any future period.

	2017		2016
	(unaudited)
Net revenues	$	1,572,989	$	1,554,758
Net income applicable to common stock	$	318,200	$	297,518
Net income per common share — basic	$	3.25	$	3.06
Net income per common share — diluted	$	3.23	$	3.05

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Property, Plant and Equipment (Tables)

12 Months Ended

Dec. 31, 2018

Property Plant And Equipment [Abstract]

Summary of Major Categories of Property, Plant and Equipment

Major categories of property, plant and equipment at December 31, 2018 and 2017 are as follows:

	Estimated Life (Years)		2018		2017
Land		—	$	384,264	$	369,690
Building and improvements	10 — 39			173,306		160,494
Advertising structures	5 — 15			2,817,170		2,704,356
Automotive and other equipment	3 — 7			150,985		150,183
			$	3,525,725	$	3,384,723

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Goodwill and Other Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2018

Summary of Intangible Assets

The following is a summary of intangible assets at December 31, 2018 and December 31, 2017:

	Estimated		2018				2017
	Life (Years)		Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Amortizable Intangible Assets:
Customer lists and contracts	7 — 10		$	610,376	$	514,928	$	586,055	$	505,778
Non-competition agreements	3 — 15			65,771		64,119		65,477		63,924
Site locations		15		2,228,767		1,422,794		2,072,059		1,372,954
Other	2 — 15			45,992		33,612		45,741		30,328
			$	2,950,906	$	2,035,453	$	2,769,332	$	1,972,984
Unamortizable Intangible Assets:
Goodwill			$	2,172,922	$	253,536	$	1,993,990	$	253,536

Summary of Changes in Gross Carrying Amount of Goodwill

The changes in the gross carrying amount of goodwill for the year ended December 31, 2018 are as follows:

Balance as of December 31, 2017	$	1,993,990
Goodwill acquired during the year		182,117
Purchase price adjustments and other		(3,185	)
Impairment losses		—
Balance as of December 31, 2018	$	2,172,922

Summary of Estimated Amortization Expense

The following is a summary of the estimated amortization expense for future years:

2019	$	103,754
2020		93,200
2021		89,240
2022		84,410
2023		73,552
Thereafter		471,297
Total	$	915,453

LAMAR MEDIA CORP. AND SUBSIDIARIES [Member]

Summary of Intangible Assets

The following is a summary of intangible assets at December 31, 2018 and December 31, 2017:

	Estimated		2018				2017
	Life (Years)		Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Amortizable Intangible Assets:
Customer lists and contracts	7—10		$	610,376	$	514,928	$	586,055	$	505,778
Non-competition agreement	3—15			65,771		64,119		65,477		63,924
Site locations		15		2,228,767		1,422,794		2,072,059		1,372,954
Other	2—15			45,446		33,535		45,195		30,251
			$	2,950,360	$	2,035,376	$	2,768,786	$	1,972,907
Unamortizable Intangible Assets:
Goodwill			$	2,161,902	$	252,667	$	1,982,970	$	252,667

Summary of Changes in Gross Carrying Amount of Goodwill

The changes in the gross carrying amount of goodwill for the year ended December 31, 2018 are as follows:

Balance as of December 31, 2017	$	1,982,970
Goodwill acquired during the year		182,117
Purchase price adjustments and other		(3,185	)
Impairment losses		—
Balance as of December 31, 2018	$	2,161,902

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Leases (Tables)

12 Months Ended

Dec. 31, 2018

Leases [Abstract]

Summary of Minimum Annual Rental Payments

The following is a summary of minimum annual rental payments required under those operating leases that have original or remaining lease terms in excess of one year as of December 31, 2018:

2019	$	254,866
2020	$	188,138
2021	$	165,642
2022	$	144,814
2023	$	122,814
Thereafter	$	819,004

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Accrued Expenses (Tables)

12 Months Ended

Dec. 31, 2018

Summary of Accrued Expenses

The following is a summary of accrued expenses at December 31, 2018 and 2017:

	2018		2017
Payroll	$	20,667	$	14,962
Interest		27,067		38,967
Insurance benefits		12,633		13,393
Accrued lease expense		36,158		37,073
Stock-based compensation		19,211		4,793
Distributions payable		—		81,625
Other		6,731		6,862
	$	122,467	$	197,675

LAMAR MEDIA CORP. AND SUBSIDIARIES [Member]

Summary of Accrued Expenses

The following is a summary of accrued expenses at December 31, 2018 and 2017:

	2018		2017
Payroll	$	20,667	$	14,962
Interest		27,067		38,967
Accrued lease expense		36,158		37,073
Stock-based compensation		19,211		4,793
Dividend to parent payable		—		81,534
Other		14,197		16,338
	$	117,300	$	193,667

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Long-term Debt (Tables)

12 Months Ended

Dec. 31, 2018

Long-Term Debt

Long-term debt consists of the following at December 31, 2018 and 2017:

	December 31, 2018
	Debt			Deferred financing costs			Debt, net of deferred financing costs
Senior Credit Facility	$	1,291,088		$	11,576		$	1,279,512
Accounts Receivable Securitization Program		175,000			1,168			173,832
5% Senior Subordinated Notes		535,000			4,104			530,896
5 3/8% Senior Notes		510,000			4,262			505,738
5 3/4% Senior Notes		400,000			4,754			395,246
Other notes with various rates and terms		3,464			—			3,464
		2,914,552			25,864			2,888,688
Less current maturities		(209,365	)		(5,245	)		(204,120	)
Long-term debt, excluding current maturities	$	2,705,187		$	20,619		$	2,684,568
	December 31, 2017
	Debt			Deferred financing costs			Debt, net of deferred financing costs
Senior Credit Facility	$	636,750		$	7,689		$	629,061
5 7/8% Senior Subordinated Notes		500,000			5,850			494,150
5% Senior Subordinated Notes		535,000			4,927			530,073
5 3/8% Senior Notes		510,000			4,982			505,018
5 3/4% Senior Notes		400,000			5,271			394,729
Other notes with various rates and terms		3,659			—			3,659
		2,585,409			28,719			2,556,690
Less current maturities		(22,797	)		(5,133	)		(17,664	)
Long-term debt, excluding current maturities	$	2,562,612		$	23,586		$	2,539,026

Summary of Long-Term Debt Contractual Maturities

Long-term debt contractual maturities are as follows:

	Debt		Deferred financing costs		Debt, net of deferred financing costs
2019	$	34,365	$	5,245	$	29,120
2020	$	56,881	$	5,368	$	51,513
2021	$	248,773	$	5,498	$	243,275
2022	$	556,256	$	4,064	$	552,192
2023	$	541,275	$	2,900	$	538,375
Later years	$	1,477,002	$	2,789	$	1,474,213

Schedule of Maturities of Long Term Debt

The Term A loans mature on May 15, 2022 and the Term B loans mature on March 16, 2025.  The remaining quarterly installments are scheduled to be paid on each March 31, June 30, September 30 and December 31 as follows:

Principal Payment Date	Term A		Term B
March 31, 2019-June 30, 2019	$	5,625	$	1,500
September 30, 2019-June 30, 2020	$	8,438	$	1,500
September 30, 2020-March 31, 2022	$	16,875	$	1,500
Term A Loan Maturity May 15, 2022	$	253,125	$	—
June 30, 2022-December 31, 2024	$	—	$	1,500
Term B Loan Maturity March 16, 2025	$	—	$	559,500

LAMAR MEDIA CORP. AND SUBSIDIARIES [Member]

Long-Term Debt

Long-term debt consists of the following at December 31, 2018 and 2017:

	December 31, 2018
	Debt			Deferred financing costs			Debt, net of deferred financing costs
Senior Credit Facility	$	1,291,088		$	11,576		$	1,279,512
Accounts Receivable Securitization Program		175,000			1,168			173,832
5% Senior Subordinated Notes		535,000			4,104			530,896
5 3/8% Senior Notes		510,000			4,262			505,738
5 3/4% Senior Notes		400,000			4,754			395,246
Other notes with various rates and terms		3,464			—			3,464
		2,914,552			25,864			2,888,688
Less current maturities		(209,365	)		(5,245	)		(204,120	)
Long-term debt, excluding current maturities	$	2,705,187		$	20,619		$	2,684,568
	December 31, 2017
	Debt			Deferred financing costs			Debt, net of deferred financing costs
Senior Credit Facility	$	636,750		$	7,689		$	629,061
5 7/8% Senior Subordinated Notes		500,000			5,850			494,150
5% Senior Subordinated Notes		535,000			4,927			530,073
5 3/8% Senior Notes		510,000			4,982			505,018
5 3/4% Senior Notes		400,000			5,271			394,729
Other notes with various rates and terms		3,659			—			3,659
		2,585,409			28,719			2,556,690
Less current maturities		(22,797	)		(5,133	)		(17,664	)
Long-term debt, excluding current maturities	$	2,562,612		$	23,586		$	2,539,026

Summary of Long-Term Debt Contractual Maturities

Long-term debt contractual maturities are as follows:

	Debt		Deferred financing costs		Debt, net of deferred financing costs
2019	$	34,365	$	5,245	$	29,120
2020	$	56,881	$	5,368	$	51,513
2021	$	248,773	$	5,498	$	243,275
2022	$	556,256	$	4,064	$	552,192
2023	$	541,275	$	2,900	$	538,375
Later years	$	1,477,002	$	2,789	$	1,474,213

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Asset Retirement Obligation (Tables)

12 Months Ended

Dec. 31, 2018

Asset Retirement Obligation Disclosure [Abstract]

Information Related to Asset Retirement Obligations

The following table reflects information related to our asset retirement obligations:

Balance at December 31, 2016	$	210,889
Additions to asset retirement obligations		4,003
Accretion expense		4,236
Liabilities settled		(4,039	)
Balance at December 31, 2017	$	215,089
Additions to asset retirement obligations		7,583
Accretion expense		4,404
Liabilities settled		(4,087	)
Balance at December 31, 2018	$	222,989

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Depreciation and Amortization (Tables)

12 Months Ended

Dec. 31, 2018

Depreciation And Amortization [Abstract]

Depreciation and Amortization Expense Excluded from Operating Expenses in its Statements of Income

The amounts of depreciation and amortization expense excluded from the following operating expenses in its Statements of Income are:

	Year Ended December 31,
	2018		2017		2016
Direct expenses	$	212,585	$	196,107	$	191,169
General and administrative expenses		4,134		4,151		3,650
Corporate expenses		8,542		10,846		10,139
	$	225,261	$	211,104	$	204,958

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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Income Tax Expense (Benefit)

Income tax expense (benefit) consists of the following:

	Current		Deferred			Total
Year ended December 31, 2018:
U.S. federal	$	4,952	$	435		$	5,387
State and local		2,615		(123	)		2,492
Foreign		1,592		1,226			2,818
	$	9,159	$	1,538		$	10,697
Year ended December 31, 2017:
U.S. federal	$	4,174	$	359		$	4,533
State and local		2,706		(170	)		2,536
Foreign		1,546		615			2,161
	$	8,426	$	804		$	9,230
Year ended December 31, 2016:
U.S. federal	$	9,518	$	(935	)	$	8,583
State and local		2,681		(6	)		2,675
Foreign		1,500		598			2,098
	$	13,699	$	(343	)	$	13,356

U.S. and Foreign Components of Earnings Before Income Taxes

The U.S. and foreign components of earnings before income taxes are as follows:

	2018			2017			2016
U.S.	$	317,695		$	332,607		$	313,429
Foreign		(1,766	)		(5,701	)		(1,264	)
Total	$	315,929		$	326,906		$	312,165

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of significant differences between the reported amount of income tax expense and the expected amount of income tax expense that would result from applying the U.S. federal statutory income tax rate of 21 percent to income before taxes for the 2018 tax year and 35 percent for the 2017 and 2016 tax years, is as follows:

	2018			2017			2016
Income tax expense at U.S. federal statutory rate	$	66,345		$	114,417		$	109,257
Tax adjustment related to REIT(a)		(63,669	)		(109,294	)		(101,868	)
State and local income taxes, net of federal income    tax benefit		1,461			1,193			1,481
Book expenses not deductible for tax purposes		1,926			2,635			2,465
Stock-based compensation		1,090			(121	)		169
Valuation allowance(b)		3,813			3,953			2,340
Rate change(c)		(80	)		(466	)		(19	)
Undistributed earnings of foreign subsidiaries(d)		(393	)		1,363			—
Minimum tax credit refundable(e)		—			(4,108	)		—
Other differences, net(f)		204			(342	)		(469	)
Income tax expense	$	10,697		$	9,230		$	13,356

^(a) Includes dividend paid deduction of $69,818, $110,442 and $102,888 for the tax years ended December 31, 2018, 2017 and 2016, respectively.

^(b) For the years ended December 31, 2018, 2017 and 2016, a non-cash valuation allowance of $3,813, $3,953 and $2,340, respectively, was recorded to income tax expense due to our limited ability to utilize Puerto Rico deferred tax assets in future years.

^(c) Under the TCJA, the U.S. corporate income tax rate was lowered from 35% to 21%.  As a result, a non-cash benefit of $466 to income tax expense was recorded for the reduction of the U.S. net deferred tax liability for the year ended December 31, 2017.

^(d) In periods prior to December 31, 2017, the undistributed earnings of our Canadian subsidiaries were designated as permanently reinvested.  As of December 31, 2017, however, management did not assert that the undistributed earnings of our Canadian subsidiaries will be permanently reinvested.  For the years ended December 31, 2018 and 2017, we recognized a deferred tax (benefit) charge of $(393) and $1,363, respectively, for future foreign withholding taxes related to undistributed earnings.

^(e) Under the TCJA, the corporate alternative minimum tax was repealed and any minimum tax carryforwards not utilized become fully refundable in 2021.  The Company does not expect to utilize its minimum tax credit carryforward. As a result, a cash benefit of $4,108 to income tax expense was recorded for the year ended December 31, 2017.

^(f) Upon enactment, the TCJA includes a one-time transition tax on the mandatory deemed repatriation of cumulative foreign earnings, net of foreign tax credits. As a result, a cash charge of $736 to income tax expense was recorded for the year ended December 31, 2017.

Components of Deferred Taxes

The tax effect of temporary differences that give rise to significant portions of the deferred tax assets and (liabilities) are presented below:

	2018			2017
Deferred tax assets:
Allowance for doubtful accounts	$	654		$	709
Accrued liabilities not deducted for tax purposes		7,022			3,648
Asset retirement obligation		—			124
Net operating loss carry forwards		34,716			18,617
Tax credit carry forwards		320			153
Charitable contributions carry forward		47			7
Property, plant and equipment		—			2,300
Investment in partnerships		—			240
Gross deferred tax assets		42,759			25,798
Less: valuation allowance		(23,934	)		(20,120	)
Net deferred tax assets		18,825			5,678
Deferred tax liabilities:
Intangibles		(6,565	)		(5,199	)
Investment in partnerships		(31,746	)		—
Property, plant and equipment		(366	)		—
Undistributed earnings of foreign subsidiaries		(882	)		(1,363	)
Gross deferred tax liabilities		(39,559	)		(6,562	)
Net deferred tax liabilities	$	(20,734	)	$	(884	)

Reconciliation Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

Balance as of December 31, 2016	$	772
Additions for tax positions related to current year		1,122
Additions for tax positions related to prior years		173
Reductions for tax positions related to prior years		—
Lapse of statute of limitations		—
Settlements		—
Balance as of December 31, 2017	$	2,067
Additions for tax positions related to current year		932
Additions for tax positions related to prior years		238
Reductions for tax positions related to prior years		—
Lapse of statute of limitations		(30	)
Settlements		—
Balance as of December 31, 2018	$	3,207

LAMAR MEDIA CORP. AND SUBSIDIARIES [Member]

Income Tax Expense (Benefit)

Income tax expense (benefit) consists of the following:

	Current		Deferred			Total
Year ended December 31, 2018:
U.S. federal	$	4,952	$	435		$	5,387
State and local		2,615		(123	)		2,492
Foreign		1,592		1,226			2,818
	$	9,159	$	1,538		$	10,697
Year ended December 31, 2017:
U.S. federal	$	4,174	$	359		$	4,533
State and local		2,706		(170	)		2,536
Foreign		1,546		615			2,161
	$	8,426	$	804		$	9,230
Year ended December 31, 2016:
U.S. federal	$	9,518	$	(935	)	$	8,583
State and local		2,681		(6	)		2,675
Foreign		1,500		598			2,098
	$	13,699	$	(343	)	$	13,356

U.S. and Foreign Components of Earnings Before Income Taxes

The U.S. and foreign components of earnings before income taxes are as follows:

	2018			2017			2016
U.S.	$	318,094		$	332,989		$	313,801
Foreign		(1,766	)		(5,701	)		(1,264	)
Total	$	316,328		$	327,288		$	312,537

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of significant differences between the reported amount of income tax expense and the expected amount of income tax expense that would result from applying the U.S. federal statutory income tax rate of 21 percent to income before taxes for the 2018 tax year and 35 percent for the 2017 and 2016 tax years, is as follows:

	2018			2017			2016
Income tax expense at U.S. federal statutory rate	$	66,429		$	114,551		$	109,388
Tax adjustment related to REIT(a)		(63,753	)		(109,294	)		(101,999	)
State and local income taxes, net of federal income    tax benefit		1,461			1,193			1,481
Book expenses not deductible for tax purposes		1,926			2,635			2,465
Stock-based compensation		1,090			(121	)		169
Valuation allowance(b)		3,813			3,953			2,340
Rate Change(c)		(80	)		(466	)		(19	)
Undistributed earnings of foreign subsidiaries(d)		(393	)		1,363			—
Minimum tax credit refundable(e)		—			(4,108	)		—
Other differences, net(f)		204			(476	)		(469	)
Income tax expense	$	10,697		$	9,230		$	13,356

^(a) Includes dividend paid deduction of $69,902, $110,824 and $102,888 for the tax years ended December 31, 2018, 2017 and 2016, respectively.

^(b) For the years ended December 31, 2018, 2017 and 2016, a non-cash valuation allowance of $3,813, $3,953 and $2,340, respectively, was recorded to income tax expense due to our limited ability to utilize Puerto Rico deferred tax assets in future years.

^(c) Under the TCJA, the U.S. corporate income tax rate was lowered from 35% to 21%.  As a result, a non-cash benefit of $466 to income tax expense was recorded for the reduction of the U.S. net deferred tax liability for the year ended December 31, 2017.

^(d) In periods prior to December 31, 2017, the undistributed earnings of our Canadian subsidiaries were designated as permanently reinvested.  As of December 31, 2017, however, management did not assert that the undistributed earnings of our Canadian subsidiaries will be permanently reinvested.  For the years ended December 31, 2018 and 2017, we recognized a deferred tax (benefit) charge of $(393) and $1,363 for future foreign withholding taxes related to undistributed earnings.

^(e) Under the TCJA, the corporate alternative minimum tax was repealed and any minimum tax carryforwards not utilized become fully refundable in 2021.  The Company does not expect to utilize its minimum tax credit carryforward. As a result, a cash benefit of $4,108 to income tax expense was recorded for the year ended December 31, 2017.

^(f) Upon enactment, the TCJA includes a one-time transition tax on the mandatory deemed repatriation of cumulative foreign earnings, net of foreign tax credits. As a result, a cash charge of $736 to income tax expense was recorded for the year ended December 31, 2017.

Components of Deferred Taxes

The tax effect of temporary differences that give rise to significant portions of the deferred tax assets and (liabilities) are presented below:

	2018			2017
Deferred tax assets:
Allowance for doubtful accounts	$	654		$	709
Accrued liabilities not deducted for tax purposes		7,022			3,648
Asset retirement obligation		—			124
Net operating loss carry forwards		34,716			18,617
Tax credit carry forwards		320			153
Charitable contributions carry forward		47			7
Property, plant and equipment		—			2,300
Investment in partnership		—			240
Gross deferred tax assets		42,759			25,798
Less: valuation allowance		(23,934	)		(20,120	)
Net deferred tax assets		18,825			5,678
Deferred tax liabilities:
Intangibles		(6,565	)		(5,199	)
Investment in partnership		(31,746	)		—
Property, plant and equipment		(366	)		—
Undistributed earnings of foreign subsidiaries		(882	)		(1,363	)
Gross deferred tax liabilities		(39,559	)		(6,562	)
Net deferred tax liabilities	$	(20,734	)	$	(884	)

Reconciliation Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows

Balance as of December 31, 2016	$	772
Additions for tax positions related to current year		1,122
Additions for tax positions related to prior years		173
Reductions for tax positions related to prior years		—
Lapse of statute of limitations		—
Settlements		—
Balance as of December 31, 2017	$	2,067
Additions for tax positions related to current year		932
Additions for tax positions related to prior years		238
Reductions for tax positions related to prior years		—
Lapse of statute of limitations		(30	)
Settlements		—
Balance as of December 31, 2018	$	3,207

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Stock Compensation Plans (Tables)

12 Months Ended

Dec. 31, 2018

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Weighted Average Assumptions

The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions used:

Grant Year	Dividend Yield	Expected Volatility	Risk Free Interest Rate	Expected Lives
2018	5%	46%	2%		6
2017	5%	45%	2%		6
2016	5%	45%	2%		6

Stock Option Transactions under Various Stock-Based Employee Compensation Plans

Information regarding the 1996 Plan for the year ended December 31, 2018 is as follows:

	Shares			Weighted Average Exercise Price		Weighted Average Contractual Life
Outstanding, beginning of year		1,099,877		$	44.00
Granted		104,000			67.21
Exercised		(361,618	)		37.15
Forfeited		(5,400	)		73.56
Expired		—			—
Outstanding, end of year		836,859			49.65		5.34
Exercisable at end of year		650,359			44.59		4.43

Summary of ESPP Share Activity

The following is a summary of 2009 ESPP share activity for the year ended December 31, 2018:

	Shares
Available for future purchases, January 1, 2018		225,418
Additional shares reserved under 2009 ESPP		83,838
Purchases		(126,012	)
Available for future purchases, December 31, 2018		183,244

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Quarterly Financial Data (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2018

Summary of Quarterly Financial Data

The tables below represent the balances for the selected quarterly financial data of the Company for each reporting period in the years ended December 31, 2018 and 2017.

	Year 2018 Quarters
	March 31		June 30		September 30		December 31
Net revenues	$	361,026	$	419,800	$	418,498	$	427,898
Net revenues less direct advertising expenses	$	222,733	$	279,016	$	277,799	$	285,826
Net income applicable to common stock	$	14,961	$	100,340	$	93,965	$	95,601
Net income per common share basic	$	0.15	$	1.02	$	0.95	$	0.97
Net income per common share diluted	$	0.15	$	1.02	$	0.95	$	0.96

	Year 2017 Quarters
	March 31		June 30		September 30		December 31
Net revenues	$	346,362	$	397,078	$	399,345	$	398,475
Net revenues less direct advertising expenses	$	214,518	$	262,003	$	264,368	$	259,491
Net income applicable to common stock	$	41,696	$	92,303	$	96,240	$	87,072
Net income per common share basic	$	0.43	$	0.94	$	0.98	$	0.89
Net income per common share diluted	$	0.42	$	0.94	$	0.98	$	0.89

LAMAR MEDIA CORP. AND SUBSIDIARIES [Member]

Summary of Quarterly Financial Data

The tables below represent the balances for the selected quarterly financial data of the Company for each reporting period in the years ended December 31, 2018 and 2017.

	Year 2018 Quarters
	March 31		June 30		September 30		December 31
Net revenues	$	361,026	$	419,800	$	418,498	$	427,898
Net revenues less direct advertising expenses	$	222,733	$	279,016	$	277,799	$	285,826
Net income	$	15,158	$	100,520	$	94,165	$	95,788

	Year 2017 Quarters
	March 31		June 30		September 30		December 31
Net revenues	$	346,362	$	397,078	$	399,345	$	398,475
Net revenues less direct advertising expenses	$	214,518	$	262,003	$	264,368	$	259,491
Net income	$	41,893	$	92,479	$	96,437	$	87,249

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Summarized Financial Information of Subsidiaries (Tables) - LAMAR MEDIA CORP. AND SUBSIDIARIES [Member]

12 Months Ended

Dec. 31, 2018

Condensed Consolidating Balance Sheet

Condensed Consolidating Balance Sheet as of December 31, 2018
	Lamar Media Corp.		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Lamar Media Consolidated
ASSETS
Total current assets	$	4,653	$	121,549	$	236,967	$	—		$	363,169
Net property, plant and equipment		—		1,289,348		5,700		—			1,295,048
Intangibles and goodwill, net		—		2,804,915		19,304		—			2,824,219
Other assets		4,056,288		230,504		184,247		(4,425,589	)		45,450
Total assets	$	4,060,941	$	4,446,316	$	446,218	$	(4,425,589	)	$	4,527,886
LIABILITIES AND STOCKHOLDER'S EQUITY
Current liabilities:
Current maturities of long-term debt	$	29,086	$	34	$	175,000	$	—		$	204,120
Other current liabilities		27,067		204,103		14,578		—			245,748
Total current liabilities		56,153		204,137		189,578		—			449,868
Long-term debt		2,684,500		68		—		—			2,684,568
Other noncurrent liabilities		200,092		246,312		251,835		(424,985	)		273,254
Total liabilities		2,940,745		450,517		441,413		(424,985	)		3,407,690
Stockholders’ equity		1,120,196		3,995,799		4,805		(4,000,604	)		1,120,196
Total liabilities and stockholders’ equity	$	4,060,941	$	4,446,316	$	446,218	$	(4,425,589	)	$	4,527,886

Condensed Consolidating Balance Sheet as of December 31, 2017
	Lamar Media Corp.		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Lamar Media Consolidated
ASSETS
Total current assets	$	87,167	$	293,536	$	39,316	$	—		$	420,019
Net property, plant and equipment		—		1,193,705		20,433		—			1,214,138
Intangibles and goodwill, net		—		2,495,370		30,812		—			2,526,182
Other assets		3,707,352		10,571		7		(3,680,327	)		37,603
Total assets	$	3,794,519	$	3,993,182	$	90,568	$	(3,680,327	)	$	4,197,942
LIABILITIES AND STOCKHOLDER'S EQUITY
Current liabilities:
Current maturities of long-term debt	$	17,664	$	—	$	—	$	—		$	17,664
Other current liabilities		120,500		164,393		19,429		—			304,322
Total current liabilities		138,164		164,393		19,429		—			321,986
Long-term debt		2,539,026		—		—		—			2,539,026
Other noncurrent liabilities		26,231		218,900		61,587		(60,886	)		245,832
Total liabilities		2,703,421		383,293		81,016		(60,886	)		3,106,844
Stockholders’ equity		1,091,098		3,609,889		9,552		(3,619,441	)		1,091,098
Total liabilities and stockholders’ equity	$	3,794,519	$	3,993,182	$	90,568	$	(3,680,327	)	$	4,197,942

Condensed Consolidating Statements of Income and Comprehensive Income

Condensed Consolidating Statements of Income and Comprehensive Income for the Year Ended December 31, 2018
	Lamar Media Corp.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Lamar Media Consolidated
Statement of Income
Net revenues	$	—		$	1,579,619		$	50,352		$	(2,749	)	$	1,627,222
Operating expenses
Direct advertising expenses (1)		—			537,269			27,307			(2,728	)		561,848
General and administrative expenses (1)		—			280,874			8,554			—			289,428
Corporate expenses (1)		—			80,861			1,636			—			82,497
Depreciation and amortization		—			219,341			5,920			—			225,261
(Gain) loss on disposition of assets		—			(576	)		7,809			—			7,233
		—			1,117,769			51,226			(2,728	)		1,166,267
Operating income (loss)		—			461,850			(874	)		(21	)		460,955
Equity in (earnings) loss of subsidiaries		(450,791	)		—			—			450,791			—
Interest expense (income), net		129,731			(99	)		(413	)		(21	)		129,198
Other expenses		15,429			—			—			—			15,429
Income (loss) before income tax expense		305,631			461,949			(461	)		(450,791	)		316,328
Income tax expense (2)		—			7,879			2,818			—			10,697
Net income (loss)	$	305,631		$	454,070		$	(3,279	)	$	(450,791	)	$	305,631
Statement of Comprehensive Income
Net income (loss)	$	305,631		$	454,070		$	(3,279	)	$	(450,791	)	$	305,631
Total other comprehensive income, net of tax		—			—			(1,290	)		—			(1,290	)
Total comprehensive income (loss)	$	305,631		$	454,070		$	(4,569	)	$	(450,791	)	$	304,341
(1) Caption is exclusive of depreciation and amortization.
(2) The income tax expense reflected in each column does not include any tax effect of the equity in earnings from subsidiaries.

Condensed Consolidating Statements of Income and Comprehensive Income for the Year Ended December 31, 2017
	Lamar Media Corp.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Lamar Media Consolidated
Statement of Income
Net revenues	$	—		$	1,494,275		$	51,332		$	(4,347	)	$	1,541,260
Operating expenses
Direct advertising expenses (1)		—			512,247			31,277			(2,644	)		540,880
General and administrative expenses (1)		—			266,798			9,431			—			276,229
Corporate expenses (1)		—			60,830			1,132			—			61,962
Depreciation and amortization		—			201,424			9,680			—			211,104
(Gain) loss on disposition of assets		—			(5,704	)		1,040			—			(4,664	)
		—			1,035,595			52,560			(2,644	)		1,085,511
Operating income (loss)		—			458,680			(1,228	)		(1,703	)		455,749
Equity in (earnings) loss of subsidiaries		(446,520	)		—			—			446,520			—
Interest expense (income), net		128,391			(5	)		1,707			(1,703	)		128,390
Other expenses		71			—			—			—			71
Income (loss) before income tax expense		318,058			458,685			(2,935	)		(446,520	)		327,288
Income tax expense (2)		—			7,069			2,161			—			9,230
Net income (loss)	$	318,058		$	451,616		$	(5,096	)	$	(446,520	)	$	318,058
Statement of Comprehensive Income
Net income (loss)	$	318,058		$	451,616		$	(5,096	)	$	(446,520	)	$	318,058
Total other comprehensive income, net of tax		—			—			1,926			—			1,926
Total comprehensive income (loss)	$	318,058		$	451,616		$	(3,170	)	$	(446,520	)	$	319,984
(1) Caption is exclusive of depreciation and amortization.
(2) The income tax expense reflected in each column does not include any tax effect of the equity in earnings from subsidiaries.

Condensed Consolidating Statements of Income and Comprehensive Income for the Year Ended December 31, 2016
	Lamar Media Corp.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Lamar Media Consolidated
Statement of Income
Net revenues	$	—		$	1,450,997		$	53,190		$	(3,893	)	$	1,500,294
Operating expenses
Direct advertising expenses (1)		—			497,011			31,197			(2,611	)		525,597
General and administrative expenses (1)		—			259,152			10,271			—			269,423
Corporate expenses (1)		—			74,587			1,407			—			75,994
Depreciation and amortization		—			197,117			7,841			—			204,958
(Gain) loss on disposition of assets		—			(15,365	)		270			—			(15,095	)
		—			1,012,502			50,986			(2,611	)		1,060,877
Operating income (loss)		—			438,495			2,204			(1,282	)		439,417
Equity in (earnings) loss of subsidiaries		(426,053	)		—			—			426,053			—
Interest expense (income), net		123,674			(6	)		1,296			(1,282	)		123,682
Other expenses		3,198			—			—			—			3,198
Income (loss) before income tax expense		299,181			438,501			908			(426,053	)		312,537
Income tax expense (2)		—			11,258			2,098			—			13,356
Net income (loss)	$	299,181		$	427,243		$	(1,190	)	$	(426,053	)	$	299,181
Statement of Comprehensive Income
Net income (loss)	$	299,181		$	427,243		$	(1,190	)	$	(426,053	)	$	299,181
Total other comprehensive income, net of tax		—			—			554			—			554
Total comprehensive income (loss)	$	299,181		$	427,243		$	(636	)	$	(426,053	)	$	299,735
(1) Caption is exclusive of depreciation and amortization.
(2) The income tax expense reflected in each column does not include any tax effect of the equity in earnings from subsidiaries.

Condensed Consolidating Statements of Cash Flows

Condensed Consolidating Statement of Cash Flows for the Year Ended December 31, 2018
	Lamar Media Corp.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Lamar Media Consolidated
Cash flows from operating activities:
Net cash provided by (used in) operating activities	$	430,896		$	689,718		$	(17,143	)	$	(566,386	)	$	537,085
Cash flows from investing activities:
Acquisitions		—			(477,389	)		—			—			(477,389	)
Capital expenditures		—			(113,259	)		(4,379	)		—			(117,638	)
Proceeds from disposition of assets and investments		—			3,839			2,809			—			6,648
Proceeds received from insurance claims		—			—			4,222			—			4,222
Investment in subsidiaries		(498,226	)		—			—			498,226			—
Decrease in intercompany notes receivable		30,034			—			—			(30,034	)		—
Decrease in notes receivable		9			—			—			—			9
Net cash (used in) provided by investing activities		(468,183	)		(586,809	)		2,652			468,192			(584,148	)
Cash flows from financing activities:
Proceeds received from revolving credit facility		563,000			—			—			—			563,000
Payment on revolving credit facility		(481,000	)		—			—			—			(481,000	)
Principal payments on long-term debt		(27,297	)		(31	)		—			—			(27,328	)
Proceeds received from senior credit facility term loans		599,250			—			—			—			599,250
Proceeds received from receivable financing agreement		—			—			175,000			—			175,000
Debt issuance costs		(7,616	)		—			—			—			(7,616	)
Redemption on senior subordinated notes		(509,790	)		—			—			—			(509,790	)
Intercompany loan proceeds (payments)		175,000			(24,688	)		(180,346	)		30,034			—
Distributions to non-controlling interest		—			—			(541	)		—			(541	)
Contributions from (to) parent		89,967			498,226			—			(498,226	)		89,967
Dividends (to) from parent		(446,744	)		(566,386	)		—			566,386			(446,744	)
Net cash (used in) provided by financing activities		(45,230	)		(92,879	)		(5,887	)		98,194			(45,802	)
Effect of exchange rate changes in cash and cash equivalents		—			—			(1,112	)		—			(1,112	)
Net increase in cash and cash equivalents		(82,517	)		10,030			(21,490	)		—			(93,977	)
Cash and cash equivalents at beginning of period		86,546			1,625			26,800			—			114,971
Cash and cash equivalents at end of period	$	4,029		$	11,655		$	5,310		$	—		$	20,994

Condensed Consolidating Statement of Cash Flows for the Year Ended December 31, 2017
	Lamar Media Corp.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Lamar Media Consolidated
Cash flows from operating activities:
Net cash provided by (used in) operating activities	$	383,370		$	602,504		$	2,174		$	(503,808	)	$	484,240
Cash flows from investing activities:
Acquisitions		3,750			(298,901	)		(2,154	)		—			(297,305	)
Capital expenditures		—			(104,325	)		(5,004	)		—			(109,329	)
Proceeds from disposition of assets and investments		—			6,053			—			—			6,053
Investment in subsidiaries		(301,055	)		—			—			301,055			—
(Increase) decrease in intercompany notes receivable		(7,624	)		—			—			7,624			—
Decrease in notes receivable		515			—			—			—			515
Net cash (used in) provided by investing activities		(304,414	)		(397,173	)		(7,158	)		308,679			(400,066	)
Cash flows from financing activities:
Principal payments on long-term debt		(16,993	)		—			—			—			(16,993	)
Payment on revolving credit facility		(477,000	)		—			—			—			(477,000	)
Proceeds received from revolving credit facility		495,000			—			—			—			495,000
Payment on senior credit facility		(247,500	)		—			—			—			(247,500	)
Proceeds received from senior credit facility		450,000			—			—			—			450,000
Debt issuance costs		(4,941	)		—			—			—			(4,941	)
Intercompany loan proceeds (payments)		—			—			7,624			(7,624	)		—
Distributions to non-controlling interest		—			—			(693	)		—			(693	)
Contributions from (to) parent		49,187			298,901			2,154			(301,055	)		49,187
Dividends (to) from parent		(252,925	)		(503,808	)		—			503,808			(252,925	)
Net cash (used in) provided by financing activities		(5,172	)		(204,907	)		9,085			195,129			(5,865	)
Effect of exchange rate changes in cash and cash equivalents		—			—			1,632			—			1,632
Net increase in cash and cash equivalents		73,784			424			5,733			—			79,941
Cash and cash equivalents at beginning of period		12,762			1,201			21,067			—			35,030
Cash and cash equivalents at end of period	$	86,546		$	1,625		$	26,800		$	—		$	114,971

Condensed Consolidating Statement of Cash Flows for the Year Ended December 31, 2016
	Lamar Media Corp.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Lamar Media Consolidated
Cash flows from operating activities:
Net cash provided by (used in) operating activities	$	394,215		$	597,948		$	7,526		$	(504,423	)	$	495,266
Cash flows from investing activities:
Acquisitions		—			(585,054	)		—			—			(585,054	)
Capital expenditures		—			(104,440	)		(3,172	)		—			(107,612	)
Proceeds from disposition of assets and investments		—			11,662			—			—			11,662
Investment in subsidiaries		(585,054	)		—			—			585,054			—
(Increase) decrease in intercompany notes receivable		(260	)		—			—			260			—
Decrease in notes receivable		21			—			—			—			21
Net cash (used in) provided by investing activities		(585,293	)		(677,832	)		(3,172	)		585,314			(680,983	)
Cash flows from financing activities:
Principal payments on long-term debt		(21,118	)		—			—			—			(21,118	)
Payment on revolving credit facility		(403,000	)		—			—			—			(403,000	)
Proceeds received from revolving credit facility		483,000			—			—			—			483,000
Proceeds received from note offering		400,000			—			—			—			400,000
Payment on senior credit facility		(300,000	)		—			—			—			(300,000	)
Proceeds received from senior credit facility		300,000			—			—			—			300,000
Debt issuance costs		(9,467	)		—			—			—			(9,467	)
Intercompany loan proceeds (payments)		—			—			260			(260	)		—
Distributions to non-controlling interest		—			—			(420	)		—			(420	)
Contributions from (to) parent		49,274			585,054			—			(585,054	)		49,274
Dividends (to) from parent		(299,804	)		(504,423	)		—			504,423			(299,804	)
Net cash provided by (used in) financing activities		198,885			80,631			(160	)		(80,891	)		198,465
Effect of exchange rate changes in cash and cash equivalents		—			—			455			—			455
Net increase in cash and cash equivalents		7,807			747			4,649			—			13,203
Cash and cash equivalents at beginning of period		4,955			454			16,418			—			21,827
Cash and cash equivalents at end of period	$	12,762		$	1,201		$	21,067		$	—		$	35,030

XML

Significant Accounting Policies - Additional Information (Detail) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2018 USD ($) Billboard State Transit Reporting_Unit $ / shares shares	Dec. 31, 2017 USD ($) $ / shares shares	Dec. 31, 2016 USD ($) $ / shares shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of advertising displays | Billboard	156,900
Number of states in which the company operates | State	45
Number of states in which the company operates logo sign business | State	23
Number of transit advertising displays | Transit	53,300
Number of states in which the company operates transit advertising displays | State	22
Number of reporting units | Reporting_Unit	2
REIT threshold percentage of taxable income to be distributed to stockholders	90.00%
Dividends paid in current year declared in prior period	$ 81,534
Dividends paid in current year declared in prior period, per share | $ / shares	$ 0.83
Dividends declared		$ 325,462	$ 293,600
Dividends declared, per share | $ / shares	$ 3.65	$ 3.32	$ 3.02
Distributions declared, preferred stockholders		$ 91
Distributions declared, preferred stockholders, per share | $ / shares		$ 15.95
Distributions paid, preferred stockholders	$ 456		$ 365
Distributions paid, preferred stockholders, per share | $ / shares	$ 79.75		$ 63.80
Distributions declared, preferred stockholders	$ 365	$ 365	$ 365
Distributions declared, preferred stockholders, per share | $ / shares	$ 63.80	$ 63.80	$ 63.80
Dilutive shares | shares	0	0	0
Non cash compensation expense	$ 29,443	$ 9,599	$ 28,560
Investment maturity period	Three months or less
LAMAR MEDIA CORP. AND SUBSIDIARIES [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Number of advertising displays | Billboard	156,900
Number of states in which the company operates | State	45
Number of states in which the company operates logo sign business | State	23
Non cash compensation expense	$ 29,443	9,599	28,560
Stock Options [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Non cash compensation expense	3,644
Performance-Based Stock Incentive Program [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Non cash compensation expense	25,427
Stock Awards to Directors [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Non cash compensation expense	372
Taxable Income Distribution [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Distributions paid	$ 442,632	$ 243,928	$ 293,600
Distributions paid, per share | $ / shares	$ 4.48	$ 2.49	$ 3.02
Minimum [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Estimated useful lives of Intangible assets	2 years
Maximum [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Estimated useful lives of Intangible assets	15 years

XML

Significant Accounting Policies - Revenue and Expense Recognized for Advertising Barter Transactions (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Accounting Policies [Abstract]
Net revenues	$ 8,955	$ 8,469	$ 8,051
Direct advertising expenses	3,633	3,603	3,559
General and administrative expenses	$ 4,758	$ 4,332	$ 4,067

XML

Revenues - Disaggregation Revenue (Detail) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Disaggregation Of Revenue [Line Items]
Net revenues	$ 427,898	$ 418,498	$ 419,800	$ 361,026	$ 398,475	$ 399,345	$ 397,078	$ 346,362	$ 1,627,222	$ 1,541,260	$ 1,500,294
Billboard Advertising [Member]
Disaggregation Of Revenue [Line Items]
Net revenues									1,412,978	1,340,422	1,311,861
Logo Advertising [Member]
Disaggregation Of Revenue [Line Items]
Net revenues									84,424	82,936	80,533
Transit Advertising [Member]
Disaggregation Of Revenue [Line Items]
Net revenues									$ 129,820	$ 117,902	$ 107,900

XML

Acquisitions - Additional Information (Detail) $ in Thousands	12 Months Ended
	Dec. 31, 2018 USD ($) Market shares	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)
Business Acquisition [Line Items]
Total purchase price of outdoor advertising assets paid in cash	$ 477,389	$ 297,305	$ 585,054
2018 Acquisitions [Member]
Business Acquisition [Line Items]
Total purchase price of outdoor advertising assets	489,671
Total purchase price of outdoor advertising assets paid in cash	8,554
Total purchase price consisting of cash	477,389
Portion of acquired assets assigned to goodwill	182,117
Total acquired intangible assets	402,740
Amount deductible for tax purposes	0
Aggregate amortization expense related to acquisition	2,681
2018 Acquisitions [Member] | Other [Member]
Business Acquisition [Line Items]
Total acquired intangible assets	$ 220,623
Weighted average useful life	14 years
2018 Acquisitions [Member] | Customer Lists and Contracts [Member]
Business Acquisition [Line Items]
Total acquired intangible assets	$ 33,310
Weighted average useful life	7 years
2018 Acquisitions [Member] | Site Locations [Member]
Business Acquisition [Line Items]
Total acquired intangible assets	$ 186,635
Weighted average useful life	15 years
2018 Acquisitions [Member] | Common Class A [Member]
Business Acquisition [Line Items]
Issuance of common stock | shares	163,137
Issuance of common stock, value	$ 12,282
Fairway Outdoor Advertising [Member]
Business Acquisition [Line Items]
Total purchase price of outdoor advertising assets	$ 418,500
Number of business acquired | Market	5
Portion of acquired assets assigned to property, plant and equipment	$ 91,173
Portion of acquired assets assigned to intangibles	156,319
Portion of acquired assets assigned to goodwill	$ 182,117
2017 Acquisitions [Member]
Business Acquisition [Line Items]
Total purchase price of outdoor advertising assets		300,185
Portion of acquired assets assigned to goodwill		13,925
Total acquired intangible assets		258,187
Amount deductible for tax purposes		0
Aggregate amortization expense related to acquisition		6,106
Total purchase price of outdoor advertising assets paid in cash		297,305
Non cash consideration of outdoor advertising assets		2,880
Gain on exchange of outdoor advertising assets		2,389
2017 Acquisitions [Member] | Other [Member]
Business Acquisition [Line Items]
Total acquired intangible assets		$ 244,262
Weighted average useful life		14 years
2017 Acquisitions [Member] | Customer Lists and Contracts [Member]
Business Acquisition [Line Items]
Total acquired intangible assets		$ 26,397
Weighted average useful life		7 years
2017 Acquisitions [Member] | Site Locations [Member]
Business Acquisition [Line Items]
Total acquired intangible assets		$ 216,510
Weighted average useful life		15 years

XML

Acquisitions - Summary of Allocation of Acquisition Costs (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2018
2018 Acquisitions [Member]
Business Acquisition [Line Items]
Property, plant and equipment		$ 8,648
Asset acquisition costs		336
Current assets		1,041
Current liabilities		(355)
Total		73,638
Goodwill		182,117
2018 Acquisitions [Member] | Site Locations [Member]
Business Acquisition [Line Items]
Finite lived intangible assets		57,105
2018 Acquisitions [Member] | Non-competition Agreements [Member]
Business Acquisition [Line Items]
Finite lived intangible assets		342
2018 Acquisitions [Member] | Customer Lists and Contracts [Member]
Business Acquisition [Line Items]
Finite lived intangible assets		$ 6,521
2017 Acquisitions [Member]
Business Acquisition [Line Items]
Property, plant and equipment	$ 43,483
Asset acquisition costs	529
Current assets	3,583
Current liabilities	(1,733)
Total	300,185
Goodwill	13,925
Long–term liabilities	(3,335)
2017 Acquisitions [Member] | Site Locations [Member]
Business Acquisition [Line Items]
Finite lived intangible assets	216,510
2017 Acquisitions [Member] | Non-competition Agreements [Member]
Business Acquisition [Line Items]
Finite lived intangible assets	826
2017 Acquisitions [Member] | Customer Lists and Contracts [Member]
Business Acquisition [Line Items]
Finite lived intangible assets	$ 26,397

XML

Acquisitions - Summary of Unaudited Pro Forma Financial Information (Detail) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
2018 Acquisitions [Member]
Business Acquisition [Line Items]
Net revenues	$ 1,699,052	$ 1,647,445
Net income applicable to common stock	$ 299,493	$ 306,900
Net income per common share — basic	$ 3.03	$ 3.13
Net income per common share — diluted	$ 3.02	$ 3.12
2017 Acquisitions [Member]
Business Acquisition [Line Items]
Net revenues		$ 1,572,989	$ 1,554,758
Net income applicable to common stock		$ 318,200	$ 297,518
Net income per common share — basic		$ 3.25	$ 3.06
Net income per common share — diluted		$ 3.23	$ 3.05

XML

Non-cash Financing and Investing Activities - Additional Information (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Supplemental Disclosure Of Non Cash Investing And Financing Information [Line Items]
Non-cash acquisition of capital expenditures and outdoor advertising assets		$ 2,879,000	$ 9,000,000
Non-cash financing activity of declared distributions		81,625,000
Non-cash financing activity	$ 0		0
LAMAR MEDIA CORP. AND SUBSIDIARIES [Member]
Supplemental Disclosure Of Non Cash Investing And Financing Information [Line Items]
Non-cash acquisition of capital expenditures and outdoor advertising assets		2,879,000	9,000,000
Non-cash financing activity	0		$ 0
Non-cash investing activities	$ 0
Non-cash financing activity of declared distributions to parent company		$ 81,534,000
Common Class A [Member]
Supplemental Disclosure Of Non Cash Investing And Financing Information [Line Items]
Issuance of shares related to acquisition	163,137
Issuance of shares related to acquisition, value	$ 12,282,000

XML

Property, Plant and Equipment - Summary of Major Categories of Property, Plant and Equipment (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Property, Plant and Equipment [Line Items]
Property, plant and equipment	$ 3,525,725	$ 3,384,723
Land [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment	$ 384,264	369,690
Land [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Property plant and equipment, Estimated life	0 years
Land [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Property plant and equipment, Estimated life	0 years
Building and Improvements [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment	$ 173,306	160,494
Building and Improvements [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Property plant and equipment, Estimated life	10 years
Building and Improvements [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Property plant and equipment, Estimated life	39 years
Advertising Structures [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment	$ 2,817,170	2,704,356
Advertising Structures [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Property plant and equipment, Estimated life	5 years
Advertising Structures [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Property plant and equipment, Estimated life	15 years
Automotive and Other Equipment [Member]
Property, Plant and Equipment [Line Items]
Property, plant and equipment	$ 150,985	$ 150,183
Automotive and Other Equipment [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Property plant and equipment, Estimated life	3 years
Automotive and Other Equipment [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Property plant and equipment, Estimated life	7 years

XML

Goodwill and Other Intangible Assets - Summary of Intangible Assets (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Finite Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 2,950,906	$ 2,769,332
Accumulated Amortization	2,035,453	1,972,984
Goodwill gross carrying amount	2,172,922	1,993,990
Goodwill accumulated amortization	253,536	253,536
LAMAR MEDIA CORP. AND SUBSIDIARIES [Member]
Finite Lived Intangible Assets [Line Items]
Gross Carrying Amount	2,950,360	2,768,786
Accumulated Amortization	2,035,376	1,972,907
Goodwill gross carrying amount	2,161,902	1,982,970
Goodwill accumulated amortization	$ 252,667	252,667
Minimum [Member]
Finite Lived Intangible Assets [Line Items]
Estimated Life (Years)	2 years
Maximum [Member]
Finite Lived Intangible Assets [Line Items]
Estimated Life (Years)	15 years
Customer Lists and Contracts [Member]
Finite Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 610,376	586,055
Accumulated Amortization	514,928	505,778
Customer Lists and Contracts [Member] | LAMAR MEDIA CORP. AND SUBSIDIARIES [Member]
Finite Lived Intangible Assets [Line Items]
Gross Carrying Amount	610,376	586,055
Accumulated Amortization	$ 514,928	505,778
Customer Lists and Contracts [Member] | Minimum [Member]
Finite Lived Intangible Assets [Line Items]
Estimated Life (Years)	7 years
Customer Lists and Contracts [Member] | Minimum [Member] | LAMAR MEDIA CORP. AND SUBSIDIARIES [Member]
Finite Lived Intangible Assets [Line Items]
Estimated Life (Years)	7 years
Customer Lists and Contracts [Member] | Maximum [Member]
Finite Lived Intangible Assets [Line Items]
Estimated Life (Years)	10 years
Customer Lists and Contracts [Member] | Maximum [Member] | LAMAR MEDIA CORP. AND SUBSIDIARIES [Member]
Finite Lived Intangible Assets [Line Items]
Estimated Life (Years)	10 years
Non-competition Agreements [Member]
Finite Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 65,771	65,477
Accumulated Amortization	64,119	63,924
Non-competition Agreements [Member] | LAMAR MEDIA CORP. AND SUBSIDIARIES [Member]
Finite Lived Intangible Assets [Line Items]
Gross Carrying Amount	65,771	65,477
Accumulated Amortization	$ 64,119	63,924
Non-competition Agreements [Member] | Minimum [Member]
Finite Lived Intangible Assets [Line Items]
Estimated Life (Years)	3 years
Non-competition Agreements [Member] | Minimum [Member] | LAMAR MEDIA CORP. AND SUBSIDIARIES [Member]
Finite Lived Intangible Assets [Line Items]
Estimated Life (Years)	3 years
Non-competition Agreements [Member] | Maximum [Member]
Finite Lived Intangible Assets [Line Items]
Estimated Life (Years)	15 years
Non-competition Agreements [Member] | Maximum [Member] | LAMAR MEDIA CORP. AND SUBSIDIARIES [Member]
Finite Lived Intangible Assets [Line Items]
Estimated Life (Years)	15 years
Site Locations [Member]
Finite Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 2,228,767	2,072,059
Accumulated Amortization	1,422,794	1,372,954
Site Locations [Member] | LAMAR MEDIA CORP. AND SUBSIDIARIES [Member]
Finite Lived Intangible Assets [Line Items]
Gross Carrying Amount	2,228,767	2,072,059
Accumulated Amortization	$ 1,422,794	1,372,954
Site Locations [Member] | Maximum [Member]
Finite Lived Intangible Assets [Line Items]
Estimated Life (Years)	15 years
Site Locations [Member] | Maximum [Member] | LAMAR MEDIA CORP. AND SUBSIDIARIES [Member]
Finite Lived Intangible Assets [Line Items]
Estimated Life (Years)	15 years
Other [Member]
Finite Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 45,992	45,741
Accumulated Amortization	33,612	30,328
Other [Member] | LAMAR MEDIA CORP. AND SUBSIDIARIES [Member]
Finite Lived Intangible Assets [Line Items]
Gross Carrying Amount	45,446	45,195
Accumulated Amortization	$ 33,535	$ 30,251
Other [Member] | Minimum [Member]
Finite Lived Intangible Assets [Line Items]
Estimated Life (Years)	2 years
Other [Member] | Minimum [Member] | LAMAR MEDIA CORP. AND SUBSIDIARIES [Member]
Finite Lived Intangible Assets [Line Items]
Estimated Life (Years)	2 years
Other [Member] | Maximum [Member]
Finite Lived Intangible Assets [Line Items]
Estimated Life (Years)	15 years
Other [Member] | Maximum [Member] | LAMAR MEDIA CORP. AND SUBSIDIARIES [Member]
Finite Lived Intangible Assets [Line Items]
Estimated Life (Years)	15 years

XML

Goodwill and Other Intangible Assets - Summary of Changes in Gross Carrying Amount of Goodwill (Detail) $ in Thousands	12 Months Ended
	Dec. 31, 2018 USD ($)
Goodwill [Line Items]
Goodwill, beginning balance	$ 1,993,990
Goodwill acquired during the year	182,117
Purchase price adjustments and other	(3,185)
Impairment losses	0
Goodwill, ending balance	2,172,922
LAMAR MEDIA CORP. AND SUBSIDIARIES [Member]
Goodwill [Line Items]
Goodwill, beginning balance	1,982,970
Goodwill acquired during the year	182,117
Purchase price adjustments and other	(3,185)
Impairment losses	0
Goodwill, ending balance	$ 2,161,902

XML

Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Goodwill And Intangible Assets Disclosure [Abstract]
Amortization expense	$ 95,010	$ 85,257	$ 80,864

XML

Goodwill and Other Intangible Assets - Summary of Estimated Amortization Expense (Detail) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Goodwill And Intangible Assets Disclosure [Abstract]
2019	$ 103,754
2020	93,200
2021	89,240
2022	84,410
2023	73,552
Thereafter	471,297
Total	$ 915,453	$ 796,348

XML

Leases - Summary of Minimum Annual Rental Payments (Detail) $ in Thousands	Dec. 31, 2018 USD ($)
Leases [Abstract]
2019	$ 254,866
2020	188,138
2021	165,642
2022	144,814
2023	122,814
Thereafter	$ 819,004

XML

Leases - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Leases [Abstract]
Rental expense related to company's operating lease	$ 381,890	$ 366,892	$ 350,135

XML

Accrued Expenses - Summary of Accrued Expenses (Detail) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Accounts Payable And Accrued Liabilities Current [Line Items]
Payroll	$ 20,667	$ 14,962
Interest	27,067	38,967
Insurance benefits	12,633	13,393
Accrued lease expense	36,158	37,073
Stock-based compensation	19,211	4,793
Distributions payable		81,625
Other	6,731	6,862
Total	122,467	197,675
LAMAR MEDIA CORP. AND SUBSIDIARIES [Member]
Accounts Payable And Accrued Liabilities Current [Line Items]
Payroll	20,667	14,962
Interest	27,067	38,967
Accrued lease expense	36,158	37,073
Stock-based compensation	19,211	4,793
Dividend to parent payable		81,534
Other	14,197	16,338
Total	$ 117,300	$ 193,667

XML

Long-term Debt - Long-Term Debt (Detail) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Debt Instrument [Line Items]
Debt	$ 2,914,552	$ 2,585,409
Debt, Less current maturities	(209,365)	(22,797)
Debt, excluding current maturities	2,705,187	2,562,612
Deferred financing costs	25,864	28,719
Deferred financing costs, Less current maturities	(5,245)	(5,133)
Deferred financing costs, excluding current maturities	20,619	23,586
Debt, net of deferred financing costs	2,888,688	2,556,690
Debt, net of deferred financing costs, Less current maturities	(204,120)	(17,664)
Long-term debt, net of deferred financing costs	2,684,568	2,539,026
LAMAR MEDIA CORP. AND SUBSIDIARIES [Member]
Debt Instrument [Line Items]
Debt	2,914,552	2,585,409
Debt, Less current maturities	(209,365)	(22,797)
Debt, excluding current maturities	2,705,187	2,562,612
Deferred financing costs	25,864	28,719
Deferred financing costs, Less current maturities	(5,245)	(5,133)
Deferred financing costs, excluding current maturities	20,619	23,586
Debt, net of deferred financing costs	2,888,688	2,556,690
Debt, net of deferred financing costs, Less current maturities	(204,120)	(17,664)
Long-term debt, net of deferred financing costs	2,684,568	2,539,026
Senior Credit Facility [Member]
Debt Instrument [Line Items]
Debt	1,291,088	636,750
Deferred financing costs	11,576	7,689
Debt, net of deferred financing costs	1,279,512	629,061
Senior Credit Facility [Member] | LAMAR MEDIA CORP. AND SUBSIDIARIES [Member]
Debt Instrument [Line Items]
Debt	1,291,088	636,750
Deferred financing costs	11,576	7,689
Debt, net of deferred financing costs	1,279,512	629,061
5 7/8% Senior Subordinated Notes [Member]
Debt Instrument [Line Items]
Debt		500,000
Deferred financing costs		5,850
Debt, net of deferred financing costs		494,150
5 7/8% Senior Subordinated Notes [Member] | LAMAR MEDIA CORP. AND SUBSIDIARIES [Member]
Debt Instrument [Line Items]
Debt		500,000
Deferred financing costs		5,850
Debt, net of deferred financing costs		494,150
Accounts Receivable Securitization Program [Member]
Debt Instrument [Line Items]
Debt	175,000
Deferred financing costs	1,168
Debt, net of deferred financing costs	173,832
Accounts Receivable Securitization Program [Member] | LAMAR MEDIA CORP. AND SUBSIDIARIES [Member]
Debt Instrument [Line Items]
Debt	175,000
Deferred financing costs	1,168
Debt, net of deferred financing costs	173,832
5% Senior Subordinated Notes [Member]
Debt Instrument [Line Items]
Debt	535,000	535,000
Deferred financing costs	4,104	4,927
Debt, net of deferred financing costs	530,896	530,073
5% Senior Subordinated Notes [Member] | LAMAR MEDIA CORP. AND SUBSIDIARIES [Member]
Debt Instrument [Line Items]
Debt	535,000	535,000
Deferred financing costs	4,104	4,927
Debt, net of deferred financing costs	530,896	530,073
5 3/8% Senior Notes [Member]
Debt Instrument [Line Items]
Debt	510,000	510,000
Deferred financing costs	4,262	4,982
Debt, net of deferred financing costs	505,738	505,018
5 3/8% Senior Notes [Member] | LAMAR MEDIA CORP. AND SUBSIDIARIES [Member]
Debt Instrument [Line Items]
Debt	510,000	510,000
Deferred financing costs	4,262	4,982
Debt, net of deferred financing costs	505,738	505,018
Other Notes with Various Rates and Terms [Member]
Debt Instrument [Line Items]
Debt	3,464	3,659
Debt, net of deferred financing costs	3,464	3,659
Other Notes with Various Rates and Terms [Member] | LAMAR MEDIA CORP. AND SUBSIDIARIES [Member]
Debt Instrument [Line Items]
Debt	3,464	3,659
Debt, net of deferred financing costs	3,464	3,659
5 3/4% Senior Notes [Member]
Debt Instrument [Line Items]
Debt	400,000	400,000
Deferred financing costs	4,754	5,271
Debt, net of deferred financing costs	395,246	394,729
5 3/4% Senior Notes [Member] | LAMAR MEDIA CORP. AND SUBSIDIARIES [Member]
Debt Instrument [Line Items]
Debt	400,000	400,000
Deferred financing costs	4,754	5,271
Debt, net of deferred financing costs	$ 395,246	$ 394,729

XML

Long-term Debt - Long-Term Debt (Parenthetical) (Detail)	Dec. 31, 2018	Dec. 31, 2017	Jan. 28, 2016	Jan. 10, 2014	Oct. 30, 2012	Feb. 09, 2012
5 7/8% Senior Subordinated Notes [Member]
Debt Instrument [Line Items]
Interest rate on senior notes		5.875%				5.875%
5 7/8% Senior Subordinated Notes [Member] | LAMAR MEDIA CORP. AND SUBSIDIARIES [Member]
Debt Instrument [Line Items]
Interest rate on senior notes		5.875%
5% Senior Subordinated Notes [Member]
Debt Instrument [Line Items]
Interest rate on senior notes	5.00%	5.00%			5.00%
5% Senior Subordinated Notes [Member] | LAMAR MEDIA CORP. AND SUBSIDIARIES [Member]
Debt Instrument [Line Items]
Interest rate on senior notes	5.00%	5.00%
5 3/8% Senior Notes [Member]
Debt Instrument [Line Items]
Interest rate on senior notes	5.375%	5.375%		5.375%
5 3/8% Senior Notes [Member] | LAMAR MEDIA CORP. AND SUBSIDIARIES [Member]
Debt Instrument [Line Items]
Interest rate on senior notes	5.375%	5.375%
5 3/4% Senior Notes [Member]
Debt Instrument [Line Items]
Interest rate on senior notes	5.75%	5.75%	5.75%
5 3/4% Senior Notes [Member] | LAMAR MEDIA CORP. AND SUBSIDIARIES [Member]
Debt Instrument [Line Items]
Interest rate on senior notes	5.75%	5.75%

XML

Long-term Debt - Summary of Long-Term Debt Contractual Maturities (Detail) $ in Thousands	Dec. 31, 2018 USD ($)
Debt [Member]
Debt Instrument [Line Items]
2019	$ 34,365
2020	56,881
2021	248,773
2022	556,256
2023	541,275
Later years	1,477,002
Debt [Member] | LAMAR MEDIA CORP. AND SUBSIDIARIES [Member]
Debt Instrument [Line Items]
2019	34,365
2020	56,881
2021	248,773
2022	556,256
2023	541,275
Later years	1,477,002
Deferred Financing Costs [Member]
Debt Instrument [Line Items]
2019	5,245
2020	5,368
2021	5,498
2022	4,064
2023	2,900
Later years	2,789
Deferred Financing Costs [Member] | LAMAR MEDIA CORP. AND SUBSIDIARIES [Member]
Debt Instrument [Line Items]
2019	5,245
2020	5,368
2021	5,498
2022	4,064
2023	2,900
Later years	2,789
Debt Net of Deferred Financing Costs [Member]
Debt Instrument [Line Items]
2019	29,120
2020	51,513
2021	243,275
2022	552,192
2023	538,375
Later years	1,474,213
Debt Net of Deferred Financing Costs [Member] | LAMAR MEDIA CORP. AND SUBSIDIARIES [Member]
Debt Instrument [Line Items]
2019	29,120
2020	51,513
2021	243,275
2022	552,192
2023	538,375
Later years	$ 1,474,213

XML

Long-term Debt - Additional Information (Detail)									12 Months Ended
	Dec. 18, 2018 USD ($)	Mar. 19, 2018	Mar. 16, 2018 USD ($)	May 15, 2017 USD ($)	Jan. 28, 2016 USD ($)	Jan. 10, 2014 USD ($)	Oct. 30, 2012 USD ($)	Feb. 09, 2012 USD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)
Debt Instrument [Line Items]
Proceeds received from term A loans									$ 599,250,000	$ 450,000,000	$ 300,000,000
Outstanding revolving credit facility									280,000,000
Remaining borrowing capacity under revolving credit facility									156,817,000
Aggregate principal amount of debt issued									2,914,552,000
Debt instrument outstanding amount									2,914,552,000	2,585,409,000
Loss on debt extinguishment									15,429,000	71,000	3,198,000
AR Program [Member]
Debt Instrument [Line Items]
Debt instrument maturity date	Dec. 17, 2021
Aggregate principal amount of debt issued	$ 175,000,000
Debt instrument outstanding amount									$ 175,000,000
Bearing interest rate									3.40%
5 7/8% Senior Subordinated Notes [Member]
Debt Instrument [Line Items]
Redemption price, percentage of loan		101.958%
Aggregate principal amount of debt issued								$ 500,000,000
Debt instrument outstanding amount										$ 500,000,000
Interest rate on convertible notes								5.875%		5.875%
Net proceeds from the issuance of debt								$ 489,000,000
Loss on debt extinguishment									$ 15,429,000
Loss on debt extinguishment on cash									9,790,000
5% Senior Subordinated Notes [Member]
Debt Instrument [Line Items]
Aggregate principal amount of debt issued							$ 535,000,000
Debt instrument outstanding amount									$ 535,000,000	$ 535,000,000
Interest rate on convertible notes							5.00%		5.00%	5.00%
Net proceeds from the issuance of debt							$ 527,100,000
Redemption price percentage of the principal amount to be purchased							101.00%
5 3/8% Senior Notes [Member]
Debt Instrument [Line Items]
Aggregate principal amount of debt issued						$ 510,000,000
Debt instrument outstanding amount									$ 510,000,000	$ 510,000,000
Interest rate on convertible notes						5.375%			5.375%	5.375%
Net proceeds from the issuance of debt						$ 502,300,000
Redemption price percentage of the principal amount to be purchased						101.00%
5 3/8% Senior Notes [Member] | Prior to January 15, 2019 [Member]
Debt Instrument [Line Items]
Redemption percentage equal to principal amount include aggregate premium						100.00%
5 3/4% Senior Notes [Member]
Debt Instrument [Line Items]
Aggregate principal amount of debt issued					$ 400,000,000
Debt instrument outstanding amount									$ 400,000,000	$ 400,000,000
Interest rate on convertible notes					5.75%				5.75%	5.75%
Net proceeds from the issuance of debt					$ 394,500,000
Redemption price percentage of the principal amount to be purchased					101.00%
5 3/4% Senior Notes [Member] | Prior to February 1, 2019 [Member]
Debt Instrument [Line Items]
Redemption price, percentage of loan					105.75%
Redemption percentage of aggregate principal amount of senior notes					35.00%
Redemption percentage of issued notes which remain outstanding					65.00%
5 3/4% Senior Notes [Member] | Prior to February 1, 2021 [Member]
Debt Instrument [Line Items]
Redemption price, percentage of loan					100.00%
Letter of Credit [Member]
Debt Instrument [Line Items]
Letter of credit outstanding balance									$ 13,183,000
LAMAR MEDIA CORP. AND SUBSIDIARIES [Member]
Debt Instrument [Line Items]
Proceeds received from term A loans									599,250,000	$ 450,000,000	300,000,000
Debt instrument outstanding amount									2,914,552,000	2,585,409,000
Loss on debt extinguishment									15,429,000	71,000	$ 3,198,000
LAMAR MEDIA CORP. AND SUBSIDIARIES [Member] | AR Program [Member]
Debt Instrument [Line Items]
Debt instrument outstanding amount									175,000,000
LAMAR MEDIA CORP. AND SUBSIDIARIES [Member] | 5 7/8% Senior Subordinated Notes [Member]
Debt Instrument [Line Items]
Debt instrument outstanding amount										$ 500,000,000
Interest rate on convertible notes										5.875%
LAMAR MEDIA CORP. AND SUBSIDIARIES [Member] | 5% Senior Subordinated Notes [Member]
Debt Instrument [Line Items]
Debt instrument outstanding amount									$ 535,000,000	$ 535,000,000
Interest rate on convertible notes									5.00%	5.00%
LAMAR MEDIA CORP. AND SUBSIDIARIES [Member] | 5 3/8% Senior Notes [Member]
Debt Instrument [Line Items]
Debt instrument outstanding amount									$ 510,000,000	$ 510,000,000
Interest rate on convertible notes									5.375%	5.375%
LAMAR MEDIA CORP. AND SUBSIDIARIES [Member] | 5 3/4% Senior Notes [Member]
Debt Instrument [Line Items]
Debt instrument outstanding amount									$ 400,000,000	$ 400,000,000
Interest rate on convertible notes									5.75%	5.75%
Senior Credit Facility [Member]
Debt Instrument [Line Items]
Maximum borrowing limit of incremental loan facility				$ 450,000,000
Debt instrument maturity date				May 15, 2022
Term A Loan Facility [Member]
Debt Instrument [Line Items]
Maximum borrowing limit of incremental loan facility				$ 450,000,000
Debt instrument maturity date				May 15, 2022
Proceeds received from term A loans				$ 450,000,000
Term A Loan Facility [Member] | LIBO Rate [Member]
Debt Instrument [Line Items]
Adjusted Rate			1.75%
Ratio of indebtedness to net capital one			3.25
Ratio of indebtedness to net capital minimum			1
Term A Loan Facility [Member] | LIBO Rate [Member] | Debt Ratio Less Than Three Point Two Five [Member]
Debt Instrument [Line Items]
Adjusted Rate			1.50%
Term A Loan Facility [Member] | Base Rate [Member]
Debt Instrument [Line Items]
Adjusted Rate			0.75%
Ratio of indebtedness to net capital one			3.25
Ratio of indebtedness to net capital minimum			1
Term A Loan Facility [Member] | Base Rate [Member] | Debt Ratio Less Than Three Point Two Five [Member]
Debt Instrument [Line Items]
Adjusted Rate			0.50%
Term B Loan Facility [Member]
Debt Instrument [Line Items]
Maximum borrowing limit of incremental loan facility			$ 600,000,000
Debt instrument maturity date			Mar. 16, 2025
Amended and restated date			Mar. 16, 2018
Redemption price, percentage of loan			5.875%
Revolving Credit Facility [Member] | LAMAR MEDIA CORP. AND SUBSIDIARIES [Member]
Debt Instrument [Line Items]
Debt instrument maturity date									May 15, 2022
Revolving Credit Facility [Member] | LIBO Rate [Member]
Debt Instrument [Line Items]
Adjusted Rate			2.25%
Ratio of indebtedness to net capital one			4.25
Ratio of indebtedness to net capital minimum			1
Revolving Credit Facility [Member] | LIBO Rate [Member] | Debt Ratio Less Than Four Point Two Five [Member]
Debt Instrument [Line Items]
Adjusted Rate			2.00%
Revolving Credit Facility [Member] | LIBO Rate [Member] | Debt Ratio Less Than Three Point Zero Zero [Member]
Debt Instrument [Line Items]
Adjusted Rate			1.75%
Ratio of indebtedness to net capital one			3.00
Ratio of indebtedness to net capital minimum			1
Revolving Credit Facility [Member] | Base Rate [Member]
Debt Instrument [Line Items]
Adjusted Rate			1.25%
Ratio of indebtedness to net capital one			4.25
Ratio of indebtedness to net capital minimum			1
Revolving Credit Facility [Member] | Base Rate [Member] | Debt Ratio Less Than Four Point Two Five [Member]
Debt Instrument [Line Items]
Adjusted Rate			1.00%
Revolving Credit Facility [Member] | Base Rate [Member] | Debt Ratio Less Than Three Point Zero Zero [Member]
Debt Instrument [Line Items]
Adjusted Rate			0.75%
Ratio of indebtedness to net capital one			3.00
Ratio of indebtedness to net capital minimum			1

XML

Long-term Debt - Schedule of Maturities of Long Term Debt (Detail) $ in Thousands	12 Months Ended
	Dec. 31, 2018 USD ($)
March 31, 2019-June 30, 2019 [Member] | Term A [Member]
Debt Instrument [Line Items]
Principal payment amount	$ 5,625
March 31, 2019-June 30, 2019 [Member] | Term B [Member]
Debt Instrument [Line Items]
Principal payment amount	1,500
September 30, 2019-June 30, 2020 [Member] | Term A [Member]
Debt Instrument [Line Items]
Principal payment amount	8,438
September 30, 2019-June 30, 2020 [Member] | Term B [Member]
Debt Instrument [Line Items]
Principal payment amount	1,500
September 30, 2020-March 31, 2022 [Member] | Term A [Member]
Debt Instrument [Line Items]
Principal payment amount	16,875
September 30, 2020-March 31, 2022 [Member] | Term B [Member]
Debt Instrument [Line Items]
Principal payment amount	1,500
Term A Loan Maturity May 15, 2022 [Member] | Term A [Member]
Debt Instrument [Line Items]
Principal payment amount	253,125
June 30, 2022-December 31, 2024 [Member] | Term B [Member]
Debt Instrument [Line Items]
Principal payment amount	1,500
Term B Loan Maturity March 16, 2025 [Member] | Term B [Member]
Debt Instrument [Line Items]
Principal payment amount	$ 559,500

XML

Long-term Debt - Schedule of Maturities of Long Term Debt (Parenthetical) (Detail)	12 Months Ended
	Dec. 31, 2018
March 31, 2019-June 30, 2019 [Member]
Debt Instrument [Line Items]
Principal payment date	March 31, 2019-June 30, 2019
September 30, 2019-June 30, 2020 [Member]
Debt Instrument [Line Items]
Principal payment date	September 30, 2019-June 30, 2020
September 30, 2020-March 31, 2022 [Member]
Debt Instrument [Line Items]
Principal payment date	September 30, 2020-March 31, 2022
June 30, 2022-December 31, 2024 [Member]
Debt Instrument [Line Items]
Principal payment date	June 30, 2022-December 31, 2024

XML

Asset Retirement Obligation - Information Related to Asset Retirement Obligations (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Asset Retirement Obligation Disclosure [Abstract]
Beginning Balance	$ 215,089	$ 210,889
Additions to asset retirement obligations	7,583	4,003
Accretion expense	4,404	4,236
Liabilities settled	(4,087)	(4,039)
Ending Balance	$ 222,989	$ 215,089

XML

Depreciation and Amortization - Depreciation and Amortization Expense Excluded from Operating Expenses in its Statements of Income (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Depreciation and Amortization Expense [Line Items]
Depreciation and amortization	$ 225,261	$ 211,104	$ 204,958
Direct Advertising Expenses [Member]
Depreciation and Amortization Expense [Line Items]
Depreciation and amortization	212,585	196,107	191,169
General and Administrative Expenses [Member]
Depreciation and Amortization Expense [Line Items]
Depreciation and amortization	4,134	4,151	3,650
Corporate Expenses [Member]
Depreciation and Amortization Expense [Line Items]
Depreciation and amortization	$ 8,542	$ 10,846	$ 10,139

XML

Income Taxes - Additional Information (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Income Tax [Line Items]
TCJA, Tax benefit to Current tax expense		$ 3,372,000
TCJA, Tax benefit to deferred tax expense		466,000
Income taxes receivable (payable)	$ (458,000)	$ 3,106,000
Income tax rate	21.00%	35.00%	35.00%
Amounts of credits available to offset income tax	$ 4,799,000
Minimum tax credit carryforward, cash benefit		$ 4,108,000
Net operating income	460,556,000	455,367,000	$ 439,045,000
Undistributed earnings of subsidiaries	22,528,000
Deferred tax liabiliites foreign withholding taxes	882,000	1,363,000
Current income tax expense (benefit) related to current period earnings	234,000
Tax benefit prior year earnings repatriated	(635,000)
Unrecognized tax benefits	3,207,000	2,067,000	$ 772,000
Income tax penalties and interest expense	411,000	213,000
LAMAR MEDIA CORP. AND SUBSIDIARIES [Member]
Income Tax [Line Items]
TCJA, Tax benefit to Current tax expense		3,372,000
TCJA, Tax benefit to deferred tax expense		466,000
Income taxes receivable (payable)	$ (458,000)	$ 3,106,000
Income tax rate	21.00%	35.00%	35.00%
Amounts of credits available to offset income tax	$ 14,771,000
Minimum tax credit carryforward, cash benefit		$ 4,108,000
Net operating income	460,955,000	455,749,000	$ 439,417,000
Undistributed earnings of subsidiaries	22,528,000
Deferred tax liabiliites foreign withholding taxes	882,000	1,363,000
Current income tax expense (benefit) related to current period earnings	234,000
Tax benefit prior year earnings repatriated	(635,000)
Unrecognized tax benefits	3,207,000	2,067,000	772,000
Income tax penalties and interest expense	411,000	213,000
Minimum tax credit carryforwards, tax benefit		4,108,000
Unrecognized tax benefits	112,000
State and Local Jurisdiction [Member]
Income Tax [Line Items]
Amounts of credits available to offset income tax	190,000
State net operating loss carry forward	724,635,000
Valuation allowance for deferred tax assets	0	0
Net change in total state valuation allowance		0	0
State and Local Jurisdiction [Member] | LAMAR MEDIA CORP. AND SUBSIDIARIES [Member]
Income Tax [Line Items]
Net operating loss subject to Internal Revenue Code 382	686,914,000
Amounts of credits available to offset income tax	190,000
Valuation allowance for deferred tax assets	0	0
Net change in total state valuation allowance		0	$ 0
Foreign Tax Authority
Income Tax [Line Items]
Net operating loss subject to Internal Revenue Code 382	51,642,000
Amounts of credits available to offset income tax	153,000
Valuation allowance for deferred tax assets	23,934,000	20,120,000
Net change in total state valuation allowance	3,814,000	3,953,000
Net operating income	(7,377,000)
Foreign Tax Authority | LAMAR MEDIA CORP. AND SUBSIDIARIES [Member]
Income Tax [Line Items]
Net operating loss subject to Internal Revenue Code 382	51,642,000
Amounts of credits available to offset income tax	153,000
Valuation allowance for deferred tax assets	23,934,000	20,120,000
Net change in total state valuation allowance	3,814,000	$ 3,953,000
Net operating income	(7,377,000)
US [Member]
Income Tax [Line Items]
US net operating loss carry forwards	285,126,000
US [Member] | LAMAR MEDIA CORP. AND SUBSIDIARIES [Member]
Income Tax [Line Items]
Net operating loss subject to Internal Revenue Code 382	148,993,000
Internal Revenue Service IRS [Member]
Income Tax [Line Items]
Net operating loss subject to Internal Revenue Code 382	63,716,000
Internal Revenue Service IRS [Member] | LAMAR MEDIA CORP. AND SUBSIDIARIES [Member]
Income Tax [Line Items]
Net operating loss subject to Internal Revenue Code 382	$ 63,716,000

XML

Income Taxes - Income Tax Expense (Benefit) (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Income Tax [Line Items]
U.S. federal, Current	$ 4,952	$ 4,174	$ 9,518
State and local, Current	2,615	2,706	2,681
Foreign, Current	1,592	1,546	1,500
Total Current	9,159	8,426	13,699
U.S. federal, Deferred	435	359	(935)
State and local, Deferred	(123)	(170)	(6)
Foreign, Deferred	1,226	615	598
Total, Deferred	1,538	804	(343)
U.S. federal, Total	5,387	4,533	8,583
State and local, Total	2,492	2,536	2,675
Foreign, Total	2,818	2,161	2,098
Income tax expense	10,697	9,230	13,356
LAMAR MEDIA CORP. AND SUBSIDIARIES [Member]
Income Tax [Line Items]
U.S. federal, Current	4,952	4,174	9,518
State and local, Current	2,615	2,706	2,681
Foreign, Current	1,592	1,546	1,500
Total Current	9,159	8,426	13,699
U.S. federal, Deferred	435	359	(935)
State and local, Deferred	(123)	(170)	(6)
Foreign, Deferred	1,226	615	598
Total, Deferred	1,538	804	(343)
U.S. federal, Total	5,387	4,533	8,583
State and local, Total	2,492	2,536	2,675
Foreign, Total	2,818	2,161	2,098
Income tax expense	$ 10,697	$ 9,230	$ 13,356

XML

Income Taxes - U.S. and Foreign Components of Earnings Before Income Taxes (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Components Of Earnings From Continuing Operations Before Income Taxes And Provision For Income Taxes [Line Items]
U.S.	$ 317,695	$ 332,607	$ 313,429
Foreign	(1,766)	(5,701)	(1,264)
Income before income tax expense	315,929	326,906	312,165
LAMAR MEDIA CORP. AND SUBSIDIARIES [Member]
Components Of Earnings From Continuing Operations Before Income Taxes And Provision For Income Taxes [Line Items]
U.S.	318,094	332,989	313,801
Foreign	(1,766)	(5,701)	(1,264)
Income before income tax expense	$ 316,328	$ 327,288	$ 312,537

XML

Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Schedule Of Effective Income Tax Rate Reconciliation [Line Items]
Income tax expense at U.S. federal statutory rate	$ 66,345	$ 114,417	$ 109,257
Tax adjustment related to REIT	(63,669)	(109,294)	(101,868)
State and local income taxes, net of federal income tax benefit	1,461	1,193	1,481
Book expenses not deductible for tax purposes	1,926	2,635	2,465
Stock-based compensation	1,090	(121)	169
Valuation allowance	3,813	3,953	2,340
Rate change	(80)	(466)	(19)
Undistributed earnings of foreign subsidiaries	(393)	1,363
Minimum tax credit refundable		(4,108)
Other differences, net	204	(342)	(469)
Income tax expense	10,697	9,230	13,356
LAMAR MEDIA CORP. AND SUBSIDIARIES [Member]
Schedule Of Effective Income Tax Rate Reconciliation [Line Items]
Income tax expense at U.S. federal statutory rate	66,429	114,551	109,388
Tax adjustment related to REIT	(63,753)	(109,294)	(101,999)
State and local income taxes, net of federal income tax benefit	1,461	1,193	1,481
Book expenses not deductible for tax purposes	1,926	2,635	2,465
Stock-based compensation	1,090	(121)	169
Valuation allowance	3,813	3,953	2,340
Rate change	(80)	(466)	(19)
Undistributed earnings of foreign subsidiaries	(393)	1,363
Minimum tax credit refundable		(4,108)
Other differences, net	204	(476)	(469)
Income tax expense	$ 10,697	$ 9,230	$ 13,356

XML

Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Parenthetical) (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Schedule Of Effective Income Tax Rate Reconciliation [Line Items]
Tax adjustment related dividend paid deduction	$ 69,818	$ 110,442	$ 102,888
Valuation allowance	$ 3,813	$ 3,953	$ 2,340
Income tax rate	21.00%	35.00%	35.00%
Rate change	$ 80	$ 466	$ 19
Recognized a deferred tax charge for future foreign withholding taxes related to undistributed earnings	(393)	1,363
Minimum tax credit carryforward, cash benefit		$ 4,108
Alternative minimum tax carryforwards utilized refundable year		2021
One-time transition tax, cash charge		$ 736
LAMAR MEDIA CORP. AND SUBSIDIARIES [Member]
Schedule Of Effective Income Tax Rate Reconciliation [Line Items]
Tax adjustment related dividend paid deduction	69,902	110,824	102,888
Valuation allowance	$ 3,813	$ 3,953	$ 2,340
Income tax rate	21.00%	35.00%	35.00%
Rate change	$ 80	$ 466	$ 19
Recognized a deferred tax charge for future foreign withholding taxes related to undistributed earnings	(393)	1,363
Minimum tax credit carryforward, cash benefit		$ 4,108
Alternative minimum tax carryforwards utilized refundable year		2021
One-time transition tax, cash charge		$ 736
Puerto Rico [Member]
Schedule Of Effective Income Tax Rate Reconciliation [Line Items]
Valuation allowance	3,813	3,953	2,340
Puerto Rico [Member] | LAMAR MEDIA CORP. AND SUBSIDIARIES [Member]
Schedule Of Effective Income Tax Rate Reconciliation [Line Items]
Valuation allowance	$ 3,813	$ 3,953	$ 2,340

XML

Income Taxes - Components of Deferred Taxes (Detail) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Deferred tax assets:
Allowance for doubtful accounts	$ 654	$ 709
Accrued liabilities not deducted for tax purposes	7,022	3,648
Asset retirement obligation		124
Net operating loss carry forwards	34,716	18,617
Tax credit carry forwards	320	153
Charitable contributions carry forward	47	7
Property, plant and equipment		2,300
Investment in partnerships		240
Gross deferred tax assets	42,759	25,798
Less: valuation allowance	(23,934)	(20,120)
Net deferred tax assets	18,825	5,678
Deferred tax liabilities:
Intangibles	(6,565)	(5,199)
Investment in partnerships	(31,746)
Property, plant and equipment	(366)
Undistributed earnings of foreign subsidiaries	(882)	(1,363)
Gross deferred tax liabilities	(39,559)	(6,562)
Net deferred tax liabilities	(20,734)	(884)
LAMAR MEDIA CORP. AND SUBSIDIARIES [Member]
Deferred tax assets:
Allowance for doubtful accounts	654	709
Accrued liabilities not deducted for tax purposes	7,022	3,648
Asset retirement obligation		124
Net operating loss carry forwards	34,716	18,617
Tax credit carry forwards	320	153
Charitable contributions carry forward	47	7
Property, plant and equipment		2,300
Investment in partnerships		240
Gross deferred tax assets	42,759	25,798
Less: valuation allowance	(23,934)	(20,120)
Net deferred tax assets	18,825	5,678
Deferred tax liabilities:
Intangibles	(6,565)	(5,199)
Investment in partnerships	(31,746)
Property, plant and equipment	(366)
Undistributed earnings of foreign subsidiaries	(882)	(1,363)
Gross deferred tax liabilities	(39,559)	(6,562)
Net deferred tax liabilities	$ (20,734)	$ (884)

XML

Income Taxes - Reconciliation Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Income Tax [Line Items]
Beginning balance	$ 2,067	$ 772
Additions for tax positions related to current year	932	1,122
Additions for tax positions related to prior years	238	173
Lapse of statute of limitations	(30)
Ending balance	3,207	2,067
LAMAR MEDIA CORP. AND SUBSIDIARIES [Member]
Income Tax [Line Items]
Beginning balance	2,067	772
Additions for tax positions related to current year	932	1,122
Additions for tax positions related to prior years	238	173
Lapse of statute of limitations	(30)
Ending balance	$ 3,207	$ 2,067

XML

Related Party Transactions - Additional Information (Detail) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Related Party Transaction [Line Items]
Receivables from employees	$ 80	$ 0
LAMAR MEDIA CORP. AND SUBSIDIARIES [Member]
Related Party Transaction [Line Items]
Amount payable to parent company	5,571	6,731
Amount contributed to affiliate	$ 89,967	$ 49,187

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Stockholders' Equity - Additional Information (Detail) - USD ($)		12 Months Ended
	Jul. 16, 1999	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	May 01, 2018	Dec. 11, 2014
Class of Stock [Line Items]
Liquidation value of outstanding preferred stock		$ 3,649,000
Preferred stock voting right		Series AA preferred stock is entitled to one vote per share.
Class B common stock voting rights		Holders of Class B common stock have ten votes per share on all matters in which the holders of common stock are entitled to vote and holders of Class?A common stock have one vote per share on such matters.
Stock repurchases under the repurchase program, amount		$ 4,112,000	$ 8,997,000	$ 6,204,000
Stock repurchase program expiration date		Jun. 30, 2016
Series AA Preferred Stock [Member]
Class of Stock [Line Items]
Preferred stock, shares authorized	5,720	5,720	5,720
Preferred stock, par value	$ 0.001	$ 0.001	$ 0.001
Dividends paid to preferred stock	15.95
Amount entitled	$ 638
Preferred Class A [Member]
Class of Stock [Line Items]
Preferred stock, shares authorized	1,000,000
Common Class A [Member]
Class of Stock [Line Items]
Authorized amount of Stock repurchase						$ 250,000,000
Stock repurchases under the repurchase program, amount		$ 0
Common stock, par value		$ 0.001	$ 0.001		$ 0.001
Issuance of shares related to acquisition		163,137
Common Class A [Member] | Equity Distribution Agreement [Member]
Class of Stock [Line Items]
Common stock, shares sold		576,002
Common stock, shares available to be sold		$ 357,885,000
Common Class A [Member] | Maximum [Member]
Class of Stock [Line Items]
Aggregate offering price of common stock issuable					$ 400,000,000

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Stock Compensation Plans - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Award vesting terms	Vesting terms ranging from three to five years which primarily includes 1) options that vest in one-fifth increments beginning on the grant date and continuing on each of the first four anniversaries of the grant date and 2) options that cliff-vest on the fifth anniversary of the grant date.
Period of graded vesting for option valuation	4 years
Period of cliff vesting for option valuation	5 years
Expected dividend yield	5.00%	5.00%	5.00%
Total unrecognized compensation cost related to nonvested awards	$ 2,837
Weighted average number of years over which compensation cost related to nonvested awards is expected to be recognized	1 year 9 months 7 days
Shares available for future stock option and restricted share grants to employees and directors under existing plans	975,215
Aggregate intrinsic value of options outstanding	$ 16,821
Aggregate intrinsic value of options exercisable	16,143
Total intrinsic value of options exercised	12,378
Accrued expenses, liability	$ 19,211	$ 4,793
Common Class A [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected Volatility	90.00%
Volatility rate on publicly traded options	10.00%
Minimum [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Award vesting period	3 years
Maximum [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Award vesting period	5 years
1996 Equity Incentive Plan [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares reserved for issuance to directors and employees	15,500,000
1996 Equity Incentive Plan [Member] | Minimum [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Range of awards of target number of share	0.00%
1996 Equity Incentive Plan [Member] | Maximum [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Range of awards of target number of share	100.00%
Performance Based Compensation [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Compensation expense related to performance based compensation agreements	$ 18,929
Restricted Stock [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expiration date of options granted under equity incentive plan	10 years
2009 Employee Stock Purchase Plan [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares available for future stock option and restricted share grants to employees and directors under existing plans	183,244	225,418
Additional shares reserved under 2009 ESPP	83,838
2009 Employee Stock Purchase Plan [Member] | Common Class A [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares reserved for issuance to directors and employees	588,154
Employee stock purchase plan, which available for issuance of common stock	88,154
Additional shares reserved under 2009 ESPP	83,838

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Stock Compensation Plans - Weighted Average Fair Value of Options Granted (Detail)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Dividend Yield	5.00%	5.00%	5.00%
Expected Volatility	46.00%	45.00%	45.00%
Risk Free Interest Rate	2.00%	2.00%	2.00%
Expected Lives	6 years	6 years	6 years

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Stock Compensation Plans - Stock Option Transactions Under Various Stock-Based Employee Compensation Plans (Detail) - $ / shares	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Outstanding, Beginning Balance, Shares	1,099,877
Granted, Shares	104,000
Exercised, Shares	(361,618)	(554,049)	(470,029)
Forfeited, Shares	(5,400)
Outstanding, Ending Balance, Shares	836,859	1,099,877
Exercisable, Ending Balance, Shares	650,359
Outstanding, Beginning Balance, Weighted Average Exercise Price	$ 44.00
Granted, Weighted Average Exercise Price	67.21
Exercised, Weighted-Average Exercise Price	37.15
Forfeited, Weighted Average Exercise Price	73.56
Outstanding, Ending Balance, Weighted Average Exercise Price	49.65	$ 44.00
Exercisable, Ending Balance, Weighted Average Exercise Price	$ 44.59
Outstanding, Ending balance, Weighted Average Remaining Contractual Term	5 years 4 months 2 days
Exercisable, Ending Balance, Weighted Average Remaining Contractual Term	4 years 5 months 5 days

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Stock Compensation Plans - Summary of ESPP Share Activity (Detail)	12 Months Ended
	Dec. 31, 2018 shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Available for future purchases, December 31, 2018	975,215
2009 Employee Stock Purchase Plan [Member]
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Available for future purchases, January 1, 2018	225,418
Additional shares reserved under 2009 ESPP	83,838
Purchases	(126,012)
Available for future purchases, December 31, 2018	183,244

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Benefit Plans - Additional Information (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items]
Employees eligibility	Completed one year of service and are at least 21 years of age
Minimum years of service required to participate in Company sponsored saving and profit sharing plan	1 year
Minimum age required to participate in Company sponsored saving and profit sharing plan	21 years
Employers contribution and compensation	Match 50% of employees? contributions up to 5% of eligible compensation
Employers contribution as percentage of employees contribution	50.00%
Employers contribution as percentage of employees compensation	5.00%
Employees contribution limit	100.00%
Fully vesting period of contribution	3 years
Minimum age for entitlement to benefit of deferred compensation plan	30 years
Minimum years of experience to attain the benefit of deferred compensation plan	10 years
Deferred compensation arrangement with individual employees contribution minimum	$ 3,000
Deferred compensation arrangement with individual employees contribution maximum	8,000
Deferred Profit Sharing [Member]
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items]
Employer's contribution	4,966,000	$ 4,715,000	$ 4,545,000
Deferred Compensation Plan [Member]
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items]
Employer's contribution	1,585,000	$ 1,526,000	$ 1,487,000
Benefit Plans [Member]
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items]
Letters of credit with bank	$ 8,091,000

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Distribution Restrictions - Additional Information (Detail) $ in Thousands	12 Months Ended
	Dec. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)
Debt Instrument [Line Items]
Balance of permitted transfers to parent company	$ 3,156,061	$ 2,975,593
Description of provisions on senior credit facility transfers to Lamar Advertising not subject to additional restrictions	(i) the total debt ratio is less than 6.5 to 1 and (ii) the secured debt ratio does not exceed 3.5 to 1.
Debt ratio	6.5
Debt ratio related to actual position on senior credit facility	6.5
Available cumulative credit	$ 1,906,541
Secured Debt [Member] | Maximum [Member]
Debt Instrument [Line Items]
Secured debt ratio	3.5
LAMAR MEDIA CORP [Member] | Secured Debt [Member] | Maximum [Member]
Debt Instrument [Line Items]
Secured debt ratio	3.5

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Fair Value of Financial Instruments - Additional Information (Detail) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Fair Value Disclosures [Abstract]
Estimated fair value of Long-term debt (including current maturities)	$ 2,904,851
Gross amount of company's long term debt	2,914,552
Debt instrument outstanding amount	$ 2,914,552	$ 2,585,409

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Information about Geographic Areas - Additional Information (Detail) - Foreign Countries [Member] - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Revenues from External Customers and Long-Lived Assets [Line Items]
Net carrying value of long lived assets	$ 2,387	$ 3,571
External Customers [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue from external customers	$ 35,146	$ 33,424	$ 32,669

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New Accounting Pronouncements - Additional Information (Detail) $ in Billions	Jan. 01, 2019 USD ($)
ASU 2018-11 [Member] | Subsequent Events [Member]
New Accounting Pronouncements Or Change In Accounting Principle [Line Items]
Operating liabilities, expected to be recognized	$ 1.1

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Quarterly Financial Data - Summary of Quarterly Financial Data (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Interim Reporting [Line Items]
Net revenues	$ 427,898	$ 418,498	$ 419,800	$ 361,026	$ 398,475	$ 399,345	$ 397,078	$ 346,362	$ 1,627,222	$ 1,541,260	$ 1,500,294
Type of Revenue [Extensible List]	us-gaap:AdvertisingMember	us-gaap:AdvertisingMember	us-gaap:AdvertisingMember	us-gaap:AdvertisingMember	us-gaap:AdvertisingMember	us-gaap:AdvertisingMember	us-gaap:AdvertisingMember	us-gaap:AdvertisingMember	us-gaap:AdvertisingMember	us-gaap:AdvertisingMember	us-gaap:AdvertisingMember
Net revenues less direct advertising expenses	$ 285,826	$ 277,799	$ 279,016	$ 222,733	$ 259,491	$ 264,368	$ 262,003	$ 214,518
Net income applicable to common stock	$ 95,601	$ 93,965	$ 100,340	$ 14,961	$ 87,072	$ 96,240	$ 92,303	$ 41,696	$ 304,867	$ 317,311	$ 298,444
Net income									$ 305,232	$ 317,676	$ 298,809
Net income per common share basic	$ 0.97	$ 0.95	$ 1.02	$ 0.15	$ 0.89	$ 0.98	$ 0.94	$ 0.43	$ 3.09	$ 3.24	$ 3.07
Net income per common share diluted	$ 0.96	$ 0.95	$ 1.02	$ 0.15	$ 0.89	$ 0.98	$ 0.94	$ 0.42	$ 3.08	$ 3.23	$ 3.05
LAMAR MEDIA CORP. AND SUBSIDIARIES [Member]
Interim Reporting [Line Items]
Net revenues	$ 427,898	$ 418,498	$ 419,800	$ 361,026	$ 398,475	$ 399,345	$ 397,078	$ 346,362	$ 1,627,222	$ 1,541,260	$ 1,500,294
Type of Revenue [Extensible List]	us-gaap:AdvertisingMember	us-gaap:AdvertisingMember	us-gaap:AdvertisingMember	us-gaap:AdvertisingMember	us-gaap:AdvertisingMember	us-gaap:AdvertisingMember	us-gaap:AdvertisingMember	us-gaap:AdvertisingMember	us-gaap:AdvertisingMember	us-gaap:AdvertisingMember	us-gaap:AdvertisingMember
Net revenues less direct advertising expenses	$ 285,826	$ 277,799	$ 279,016	$ 222,733	$ 259,491	$ 264,368	$ 262,003	$ 214,518
Net income	$ 95,788	$ 94,165	$ 100,520	$ 15,158	$ 87,249	$ 96,437	$ 92,479	$ 41,893	$ 305,631	$ 318,058	$ 299,181

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Divestiture of Assets - Additional Information (Detail) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	Apr. 16, 2018	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Divestiture Of Assets [Line Items]
Loss (gain) on disposition of assets		$ 7,233	$ (4,664)	$ (15,095)
Puerto Rico [Member]
Divestiture Of Assets [Line Items]
Non-cash consideration consisting of note receivable	$ 9,250
Cash on sale of assets	$ 3,000
Loss (gain) on disposition of assets		$ 7,809

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Subsequent Events - Additional Information (Detail) - USD ($)	Feb. 01, 2019	Jan. 28, 2016	Jan. 17, 2019	Dec. 31, 2018	Dec. 31, 2017
Subsequent Event [Line Items]
Gross amount of company's long term debt				$ 2,914,552,000
5 3/4% Senior Notes [Member]
Subsequent Event [Line Items]
Gross amount of company's long term debt		$ 400,000,000
Interest rate on convertible notes		5.75%		5.75%	5.75%
Net proceeds from the issuance of debt		$ 394,500,000
Subsequent Events [Member]
Subsequent Event [Line Items]
Additional revolving commitment			$ 100,000,000
Subsequent Events [Member] | 5 3/4% Senior Notes [Member] | Private Placement [Member]
Subsequent Event [Line Items]
Gross amount of company's long term debt	$ 250,000,000
Interest rate on convertible notes	5.75%
Net proceeds from the issuance of debt	$ 251,500,000
Subsequent Events [Member] | Revolving Credit Facility [Member]
Subsequent Event [Line Items]
Maximum borrowing limit of incremental loan facility			$ 550,000,000

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Schedule II - Valuation and Qualifying Accounts (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Deducted in Balance Sheet from Trade Accounts Receivable: Allowance for Doubtful Accounts [Member]
Valuation and Qualifying Accounts Disclosure [Line Items]
Balance at Beginning of Period	$ 10,055	$ 9,356	$ 8,984
Charged to Costs and Expenses	8,472	6,762	6,870
Deductions	7,366	6,063	6,498
Balance at End of Period	11,161	10,055	9,356
Deducted in Balance Sheet from Trade Accounts Receivable: Allowance for Doubtful Accounts [Member] | LAMAR MEDIA CORP. AND SUBSIDIARIES [Member]
Valuation and Qualifying Accounts Disclosure [Line Items]
Balance at Beginning of Period	10,055	9,356	8,984
Charged to Costs and Expenses	8,472	6,762	6,870
Deductions	7,366	6,063	6,498
Balance at End of Period	11,161	10,055	9,356
Deducted in Balance Sheet from Deferred Tax Assets: Valuation Allowance [Member]
Valuation and Qualifying Accounts Disclosure [Line Items]
Balance at Beginning of Period	20,120	16,167	13,827
Charged to Costs and Expenses	3,814	3,953	2,340
Balance at End of Period	23,934	20,120	16,167
Deducted in Balance Sheet from Deferred Tax Assets: Valuation Allowance [Member] | LAMAR MEDIA CORP. AND SUBSIDIARIES [Member]
Valuation and Qualifying Accounts Disclosure [Line Items]
Balance at Beginning of Period	20,120	16,167	13,827
Charged to Costs and Expenses	3,814	3,953	2,340
Balance at End of Period	$ 23,934	$ 20,120	$ 16,167

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Schedule III - Schedule of Real Estate and Accumulated Depreciation (Detail) $ in Thousands	12 Months Ended
	Dec. 31, 2018 USD ($) Display	Dec. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)	Dec. 31, 2015 USD ($)
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Number of advertising displays | Display	359,138
Encumbrances	$ 0
Initial Cost	0
Gross Carrying Amount	3,201,434	$ 3,074,046	$ 2,998,540	$ 2,856,243
Accumulated Depreciation	$ (2,082,335)	(2,025,251)	(1,973,958)	(1,910,860)
Construction Date	Various
Acquisition Date	Various
LAMAR MEDIA CORP. AND SUBSIDIARIES [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Number of advertising displays | Display	359,138
Encumbrances	$ 0
Initial Cost	0
Gross Carrying Amount	3,201,434	3,074,046	2,998,540	2,856,243
Accumulated Depreciation	$ (2,082,335)	$ (2,025,251)	$ (1,973,958)	$ (1,910,860)
Construction Date	Various
Acquisition Date	Various
Minimum [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Useful Lives	5 years
Minimum [Member] | LAMAR MEDIA CORP. AND SUBSIDIARIES [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Useful Lives	5 years
Maximum [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Useful Lives	20 years
Maximum [Member] | LAMAR MEDIA CORP. AND SUBSIDIARIES [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Useful Lives	20 years

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Schedule III - Schedule of Real Estate and Accumulated Depreciation (Parenthetical) (Detail)	12 Months Ended
	Dec. 31, 2018 Asset
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Number of single asset exceeded 5% of the total gross carrying amount	0
Percentage of asset contribution to total gross carrying amount	5.00%
LAMAR MEDIA CORP. AND SUBSIDIARIES [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Number of single asset exceeded 5% of the total gross carrying amount	0
Percentage of asset contribution to total gross carrying amount	5.00%

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Schedule III - Summary of Company's Real Estate Assets (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Gross real estate assets:
Balance at the beginning of the year	$ 3,074,046	$ 2,998,540	$ 2,856,243
Capital expenditures on new advertising displays	54,151	49,946	50,799
Capital expenditures on improvements/redevelopments of existing advertising displays	12,781	6,265	12,031
Capital expenditures other recurring	34,758	32,523	26,254
Land acquisitions	15,368	14,904	30,283
Acquisition of advertising displays	82,617	32,109	69,821
Assets sold or written-off	(70,494)	(61,306)	(47,317)
Foreign exchange	(1,793)	1,065	426
Balance at the end of the year	3,201,434	3,074,046	2,998,540
Accumulated depreciation:
Balance at the beginning of the year	2,025,251	1,973,958	1,910,860
Depreciation	106,700	102,494	100,197
Assets sold or written-off	(48,488)	(51,976)	(37,373)
Foreign exchange	(1,128)	775	274
Balance at the end of the year	2,082,335	2,025,251	1,973,958
LAMAR MEDIA CORP. AND SUBSIDIARIES [Member]
Gross real estate assets:
Balance at the beginning of the year	3,074,046	2,998,540	2,856,243
Capital expenditures on new advertising displays	54,151	49,946	50,799
Capital expenditures on improvements/redevelopments of existing advertising displays	12,781	6,265	12,031
Capital expenditures other recurring	34,758	32,523	26,254
Land acquisitions	15,368	14,904	30,283
Acquisition of advertising displays	82,617	32,109	69,821
Assets sold or written-off	(70,494)	(61,306)	(47,317)
Foreign exchange	(1,793)	1,065	426
Balance at the end of the year	3,201,434	3,074,046	2,998,540
Accumulated depreciation:
Balance at the beginning of the year	2,025,251	1,973,958	1,910,860
Depreciation	106,700	102,494	100,197
Assets sold or written-off	(48,488)	(51,976)	(37,373)
Foreign exchange	(1,128)	775	274
Balance at the end of the year	$ 2,082,335	$ 2,025,251	$ 1,973,958

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Schedule III - Summary of Company's Real Estate Assets (Parenthetical) (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
New Advertising Displays [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Non-cash amounts	$ 446	$ 921	$ 379
New Advertising Displays [Member] | LAMAR MEDIA CORP. AND SUBSIDIARIES [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Non-cash amounts	446	921	379
Acquisition of Advertising Displays [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Non-cash amounts	7,199	3,043	4,623
Acquisition of Advertising Displays [Member] | LAMAR MEDIA CORP. AND SUBSIDIARIES [Member]
SEC Schedule III, Real Estate and Accumulated Depreciation [Line Items]
Non-cash amounts	$ 7,199	$ 3,043	$ 4,623

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Condensed Consolidating Balance Sheet (Detail) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
ASSETS
Total current assets	$ 363,669	$ 420,519
Net property, plant and equipment	1,295,048	1,214,138
Other assets	51,085	42,886
Total assets	4,544,641	4,214,345
Current liabilities:
Current maturities of long-term debt	204,120	17,664
Total current liabilities	455,035	325,994
Long-term debt, net of deferred financing costs	2,684,568	2,539,026
Total liabilities	3,412,857	3,110,852
Stockholders’ equity	1,131,784	1,103,493	$ 1,069,528	$ 1,021,059
Total liabilities and stockholders’ equity	4,544,641	4,214,345
LAMAR MEDIA CORP. AND SUBSIDIARIES [Member]
ASSETS
Total current assets	363,169	420,019
Net property, plant and equipment	1,295,048	1,214,138
Intangibles and goodwill, net	2,824,219	2,526,182
Other assets	45,450	37,603
Total assets	4,527,886	4,197,942
Current liabilities:
Current maturities of long-term debt	204,120	17,664
Other current liabilities	245,748	304,322
Total current liabilities	449,868	321,986
Long-term debt, net of deferred financing costs	2,684,568	2,539,026
Other noncurrent liabilities	273,254	245,832
Total liabilities	3,407,690	3,106,844
Stockholders’ equity	1,120,196	1,091,098
Total liabilities and stockholders’ equity	4,527,886	4,197,942
LAMAR MEDIA CORP. AND SUBSIDIARIES [Member] | Reportable Legal Entities [Member] | Lamar Media [Member]
ASSETS
Total current assets	4,653	87,167
Other assets	4,056,288	3,707,352
Total assets	4,060,941	3,794,519
Current liabilities:
Current maturities of long-term debt	29,086	17,664
Other current liabilities	27,067	120,500
Total current liabilities	56,153	138,164
Long-term debt, net of deferred financing costs	2,684,500	2,539,026
Other noncurrent liabilities	200,092	26,231
Total liabilities	2,940,745	2,703,421
Stockholders’ equity	1,120,196	1,091,098
Total liabilities and stockholders’ equity	4,060,941	3,794,519
LAMAR MEDIA CORP. AND SUBSIDIARIES [Member] | Reportable Legal Entities [Member] | Guarantor Subsidiaries [Member]
ASSETS
Total current assets	121,549	293,536
Net property, plant and equipment	1,289,348	1,193,705
Intangibles and goodwill, net	2,804,915	2,495,370
Other assets	230,504	10,571
Total assets	4,446,316	3,993,182
Current liabilities:
Current maturities of long-term debt	34
Other current liabilities	204,103	164,393
Total current liabilities	204,137	164,393
Long-term debt, net of deferred financing costs	68
Other noncurrent liabilities	246,312	218,900
Total liabilities	450,517	383,293
Stockholders’ equity	3,995,799	3,609,889
Total liabilities and stockholders’ equity	4,446,316	3,993,182
LAMAR MEDIA CORP. AND SUBSIDIARIES [Member] | Reportable Legal Entities [Member] | Non-Guarantor Subsidiaries [Member]
ASSETS
Total current assets	236,967	39,316
Net property, plant and equipment	5,700	20,433
Intangibles and goodwill, net	19,304	30,812
Other assets	184,247	7
Total assets	446,218	90,568
Current liabilities:
Current maturities of long-term debt	175,000
Other current liabilities	14,578	19,429
Total current liabilities	189,578	19,429
Other noncurrent liabilities	251,835	61,587
Total liabilities	441,413	81,016
Stockholders’ equity	4,805	9,552
Total liabilities and stockholders’ equity	446,218	90,568
LAMAR MEDIA CORP. AND SUBSIDIARIES [Member] | Eliminations [Member]
ASSETS
Other assets	(4,425,589)	(3,680,327)
Total assets	(4,425,589)	(3,680,327)
Current liabilities:
Other noncurrent liabilities	(424,985)	(60,886)
Total liabilities	(424,985)	(60,886)
Stockholders’ equity	(4,000,604)	(3,619,441)
Total liabilities and stockholders’ equity	$ (4,425,589)	$ (3,680,327)

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Condensed Consolidating Statements of Income and Comprehensive Income (Detail) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Type of Revenue [Extensible List]	us-gaap:AdvertisingMember	us-gaap:AdvertisingMember	us-gaap:AdvertisingMember	us-gaap:AdvertisingMember	us-gaap:AdvertisingMember	us-gaap:AdvertisingMember	us-gaap:AdvertisingMember	us-gaap:AdvertisingMember	us-gaap:AdvertisingMember	us-gaap:AdvertisingMember	us-gaap:AdvertisingMember
Net revenues	$ 427,898	$ 418,498	$ 419,800	$ 361,026	$ 398,475	$ 399,345	$ 397,078	$ 346,362	$ 1,627,222	$ 1,541,260	$ 1,500,294
Operating expenses
Type of Cost Good or Service [Extensible List]									us-gaap:AdvertisingMember	us-gaap:AdvertisingMember	us-gaap:AdvertisingMember
Direct advertising expenses									$ 561,848	$ 540,880	$ 525,597
General and administrative expenses									289,428	276,229	269,423
Corporate expenses									82,896	62,344	76,366
Depreciation and amortization									225,261	211,104	204,958
Loss (gain) on disposition of assets and investments									7,233	(4,664)	(15,095)
Total Operating Expenses									1,166,666	1,085,893	1,061,249
Operating income									460,556	455,367	439,045
Income before income tax expense									315,929	326,906	312,165
Income tax expense									10,697	9,230	13,356
Net income									305,232	317,676	298,809
Statements of Comprehensive Income
Net income									305,232	317,676	298,809
Comprehensive income									$ 303,942	$ 319,602	$ 299,363
LAMAR MEDIA CORP. AND SUBSIDIARIES [Member]
Type of Revenue [Extensible List]									us-gaap:AdvertisingMember	us-gaap:AdvertisingMember	us-gaap:AdvertisingMember
Net revenues									$ 1,627,222	$ 1,541,260	$ 1,500,294
Operating expenses
Type of Cost Good or Service [Extensible List]									us-gaap:AdvertisingMember	us-gaap:AdvertisingMember	us-gaap:AdvertisingMember
Direct advertising expenses									$ 561,848	$ 540,880	$ 525,597
General and administrative expenses									289,428	276,229	269,423
Corporate expenses									82,497	61,962	75,994
Depreciation and amortization									225,261	211,104	204,958
Loss (gain) on disposition of assets and investments									7,233	(4,664)	(15,095)
Total Operating Expenses									1,166,267	1,085,511	1,060,877
Operating income									460,955	455,749	439,417
Interest expense (income), net									129,198	128,390	123,682
Other expenses									15,429	71	3,198
Income before income tax expense									316,328	327,288	312,537
Income tax expense									10,697	9,230	13,356
Net income									305,631	318,058	299,181
Statements of Comprehensive Income
Net income									305,631	318,058	299,181
Foreign currency translation adjustments									(1,290)	1,926	554
Comprehensive income									$ 304,341	$ 319,984	$ 299,735
LAMAR MEDIA CORP. AND SUBSIDIARIES [Member] | Reportable Legal Entities [Member] | Lamar Media [Member]
Type of Revenue [Extensible List]									us-gaap:AdvertisingMember	us-gaap:AdvertisingMember	us-gaap:AdvertisingMember
Operating expenses
Type of Cost Good or Service [Extensible List]									us-gaap:AdvertisingMember	us-gaap:AdvertisingMember	us-gaap:AdvertisingMember
Equity in (earnings) loss of subsidiaries									$ (450,791)	$ (446,520)	$ (426,053)
Interest expense (income), net									129,731	128,391	123,674
Other expenses									15,429	71	3,198
Income before income tax expense									305,631	318,058	299,181
Net income									305,631	318,058	299,181
Statements of Comprehensive Income
Net income									305,631	318,058	299,181
Comprehensive income									$ 305,631	$ 318,058	$ 299,181
LAMAR MEDIA CORP. AND SUBSIDIARIES [Member] | Reportable Legal Entities [Member] | Guarantor Subsidiaries [Member]
Type of Revenue [Extensible List]									us-gaap:AdvertisingMember	us-gaap:AdvertisingMember	us-gaap:AdvertisingMember
Net revenues									$ 1,579,619	$ 1,494,275	$ 1,450,997
Operating expenses
Type of Cost Good or Service [Extensible List]									us-gaap:AdvertisingMember	us-gaap:AdvertisingMember	us-gaap:AdvertisingMember
Direct advertising expenses									$ 537,269	$ 512,247	$ 497,011
General and administrative expenses									280,874	266,798	259,152
Corporate expenses									80,861	60,830	74,587
Depreciation and amortization									219,341	201,424	197,117
Loss (gain) on disposition of assets and investments									(576)	(5,704)	(15,365)
Total Operating Expenses									1,117,769	1,035,595	1,012,502
Operating income									461,850	458,680	438,495
Interest expense (income), net									(99)	(5)	(6)
Income before income tax expense									461,949	458,685	438,501
Income tax expense									7,879	7,069	11,258
Net income									454,070	451,616	427,243
Statements of Comprehensive Income
Net income									454,070	451,616	427,243
Comprehensive income									$ 454,070	$ 451,616	$ 427,243
LAMAR MEDIA CORP. AND SUBSIDIARIES [Member] | Reportable Legal Entities [Member] | Non-Guarantor Subsidiaries [Member]
Type of Revenue [Extensible List]									us-gaap:AdvertisingMember	us-gaap:AdvertisingMember	us-gaap:AdvertisingMember
Net revenues									$ 50,352	$ 51,332	$ 53,190
Operating expenses
Type of Cost Good or Service [Extensible List]									us-gaap:AdvertisingMember	us-gaap:AdvertisingMember	us-gaap:AdvertisingMember
Direct advertising expenses									$ 27,307	$ 31,277	$ 31,197
General and administrative expenses									8,554	9,431	10,271
Corporate expenses									1,636	1,132	1,407
Depreciation and amortization									5,920	9,680	7,841
Loss (gain) on disposition of assets and investments									7,809	1,040	270
Total Operating Expenses									51,226	52,560	50,986
Operating income									(874)	(1,228)	2,204
Interest expense (income), net									(413)	1,707	1,296
Income before income tax expense									(461)	(2,935)	908
Income tax expense									2,818	2,161	2,098
Net income									(3,279)	(5,096)	(1,190)
Statements of Comprehensive Income
Net income									(3,279)	(5,096)	(1,190)
Foreign currency translation adjustments									(1,290)	1,926	554
Comprehensive income									$ (4,569)	$ (3,170)	$ (636)
LAMAR MEDIA CORP. AND SUBSIDIARIES [Member] | Eliminations [Member]
Type of Revenue [Extensible List]									us-gaap:AdvertisingMember	us-gaap:AdvertisingMember	us-gaap:AdvertisingMember
Net revenues									$ (2,749)	$ (4,347)	$ (3,893)
Operating expenses
Type of Cost Good or Service [Extensible List]									us-gaap:AdvertisingMember	us-gaap:AdvertisingMember	us-gaap:AdvertisingMember
Direct advertising expenses									$ (2,728)	$ (2,644)	$ (2,611)
Total Operating Expenses									(2,728)	(2,644)	(2,611)
Operating income									(21)	(1,703)	(1,282)
Equity in (earnings) loss of subsidiaries									450,791	446,520	426,053
Interest expense (income), net									(21)	(1,703)	(1,282)
Income before income tax expense									(450,791)	(446,520)	(426,053)
Net income									(450,791)	(446,520)	(426,053)
Statements of Comprehensive Income
Net income									(450,791)	(446,520)	(426,053)
Comprehensive income									$ (450,791)	$ (446,520)	$ (426,053)

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Condensed Consolidating Statement of Cash Flows (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Cash flows from operating activities:
Net cash provided by (used in) operating activities	$ 564,846	$ 507,016	$ 521,823
Cash flows from investing activities:
Acquisitions	(477,389)	(297,305)	(585,054)
Capital expenditures	(117,638)	(109,329)	(107,612)
Proceeds from disposition of assets and investments	6,648	6,053	11,662
Proceeds received from property insurance claims	4,222
Decrease (increase) in notes receivable	9	515	21
Cash flows used in investing activities	(584,148)	(400,066)	(680,983)
Cash flows from financing activities:
Proceeds received from revolving credit facility	563,000	495,000	483,000
Payment on revolving credit facility	(481,000)	(477,000)	(403,000)
Principal payments on long-term debt	(27,328)	(16,993)	(21,118)
Proceeds received from senior credit facility term loans	599,250	450,000	300,000
Proceeds received from note offering			400,000
Debt issuance costs	(7,616)	(4,941)	(9,467)
Redemption of senior subordinated notes	(509,790)
Distributions to non-controlling interest	(541)	(693)	(420)
Cash flows (used in) provided by financing activities	(73,563)	(28,641)	171,908
Payment on senior credit facility term loans		(247,500)	(300,000)
Effect of exchange rate changes in cash and cash equivalents	(1,112)	1,632	455
Net (decrease) increase in cash and cash equivalents	(93,977)	79,941	13,203
Cash and cash equivalents at beginning of period	115,471	35,530	22,327
Cash and cash equivalents at end of period	21,494	115,471	35,530
LAMAR MEDIA CORP. AND SUBSIDIARIES [Member]
Cash flows from operating activities:
Net cash provided by (used in) operating activities	537,085	484,240	495,266
Cash flows from investing activities:
Acquisitions	(477,389)	(297,305)	(585,054)
Capital expenditures	(117,638)	(109,329)	(107,612)
Proceeds from disposition of assets and investments	6,648	6,053	11,662
Proceeds received from property insurance claims	4,222
Decrease (increase) in notes receivable	9	515	21
Cash flows used in investing activities	(584,148)	(400,066)	(680,983)
Cash flows from financing activities:
Proceeds received from revolving credit facility	563,000	495,000	483,000
Payment on revolving credit facility	(481,000)	(477,000)	(403,000)
Principal payments on long-term debt	(27,328)	(16,993)	(21,118)
Proceeds received from senior credit facility term loans	599,250	450,000	300,000
Proceeds received from receivable financing agreement	175,000
Proceeds received from note offering			400,000
Debt issuance costs	(7,616)	(4,941)	(9,467)
Redemption of senior subordinated notes	(509,790)
Distributions to non-controlling interest	(541)	(693)	(420)
Contributions from (to) parent	89,967	49,187	49,274
Dividends (to) from parent	(446,744)	(252,925)	(299,804)
Cash flows (used in) provided by financing activities	(45,802)	(5,865)	198,465
Payment on senior credit facility term loans		(247,500)	(300,000)
Effect of exchange rate changes in cash and cash equivalents	(1,112)	1,632	455
Net (decrease) increase in cash and cash equivalents	(93,977)	79,941	13,203
Cash and cash equivalents at beginning of period	114,971	35,030	21,827
Cash and cash equivalents at end of period	20,994	114,971	35,030
LAMAR MEDIA CORP. AND SUBSIDIARIES [Member] | Reportable Legal Entities [Member] | Lamar Media [Member]
Cash flows from operating activities:
Net cash provided by (used in) operating activities	430,896	383,370	394,215
Cash flows from investing activities:
Acquisitions		3,750
Investment in subsidiaries	(498,226)	(301,055)	(585,054)
Decrease in intercompany notes receivable	30,034	(7,624)	(260)
Decrease (increase) in notes receivable	9	515	21
Cash flows used in investing activities	(468,183)	(304,414)	(585,293)
Cash flows from financing activities:
Proceeds received from revolving credit facility	563,000	495,000	483,000
Payment on revolving credit facility	(481,000)	(477,000)	(403,000)
Principal payments on long-term debt	(27,297)	(16,993)	(21,118)
Proceeds received from senior credit facility term loans	599,250	450,000	300,000
Proceeds received from note offering			400,000
Debt issuance costs	(7,616)	(4,941)	(9,467)
Redemption of senior subordinated notes	(509,790)
Intercompany loan proceeds (payments)	175,000
Contributions from (to) parent	89,967	49,187	49,274
Dividends (to) from parent	(446,744)	(252,925)	(299,804)
Cash flows (used in) provided by financing activities	(45,230)	(5,172)	198,885
Payment on senior credit facility term loans		(247,500)	(300,000)
Net (decrease) increase in cash and cash equivalents	(82,517)	73,784	7,807
Cash and cash equivalents at beginning of period	86,546	12,762	4,955
Cash and cash equivalents at end of period	4,029	86,546	12,762
LAMAR MEDIA CORP. AND SUBSIDIARIES [Member] | Reportable Legal Entities [Member] | Guarantor Subsidiaries [Member]
Cash flows from operating activities:
Net cash provided by (used in) operating activities	689,718	602,504	597,948
Cash flows from investing activities:
Acquisitions	(477,389)	(298,901)	(585,054)
Capital expenditures	(113,259)	(104,325)	(104,440)
Proceeds from disposition of assets and investments	3,839	6,053	11,662
Cash flows used in investing activities	(586,809)	(397,173)	(677,832)
Cash flows from financing activities:
Principal payments on long-term debt	(31)
Intercompany loan proceeds (payments)	(24,688)
Contributions from (to) parent	498,226	298,901	585,054
Dividends (to) from parent	(566,386)	(503,808)	(504,423)
Cash flows (used in) provided by financing activities	(92,879)	(204,907)	80,631
Net (decrease) increase in cash and cash equivalents	10,030	424	747
Cash and cash equivalents at beginning of period	1,625	1,201	454
Cash and cash equivalents at end of period	11,655	1,625	1,201
LAMAR MEDIA CORP. AND SUBSIDIARIES [Member] | Reportable Legal Entities [Member] | Non-Guarantor Subsidiaries [Member]
Cash flows from operating activities:
Net cash provided by (used in) operating activities	(17,143)	2,174	7,526
Cash flows from investing activities:
Acquisitions		(2,154)
Capital expenditures	(4,379)	(5,004)	(3,172)
Proceeds from disposition of assets and investments	2,809
Proceeds received from property insurance claims	4,222
Cash flows used in investing activities	2,652	(7,158)	(3,172)
Cash flows from financing activities:
Proceeds received from receivable financing agreement	175,000
Intercompany loan proceeds (payments)	(180,346)	7,624	260
Distributions to non-controlling interest	(541)	(693)	(420)
Contributions from (to) parent		2,154
Cash flows (used in) provided by financing activities	(5,887)	9,085	(160)
Effect of exchange rate changes in cash and cash equivalents	(1,112)	1,632	455
Net (decrease) increase in cash and cash equivalents	(21,490)	5,733	4,649
Cash and cash equivalents at beginning of period	26,800	21,067	16,418
Cash and cash equivalents at end of period	5,310	26,800	21,067
LAMAR MEDIA CORP. AND SUBSIDIARIES [Member] | Eliminations [Member]
Cash flows from operating activities:
Net cash provided by (used in) operating activities	(566,386)	(503,808)	(504,423)
Cash flows from investing activities:
Investment in subsidiaries	498,226	301,055	585,054
Decrease in intercompany notes receivable	(30,034)	7,624	260
Cash flows used in investing activities	468,192	308,679	585,314
Cash flows from financing activities:
Intercompany loan proceeds (payments)	30,034	(7,624)	(260)
Contributions from (to) parent	(498,226)	(301,055)	(585,054)
Dividends (to) from parent	566,386	503,808	504,423
Cash flows (used in) provided by financing activities	$ 98,194	$ 195,129	$ (80,891)