REVENUE FROM CONTRACTS WITH CUSTOMERS

The Company generates revenue from several sources, as follows:


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


•	The Americas and International outdoor segments generate revenue primarily from the sale of advertising space on printed and digital displays, including billboards, street furniture displays, transit displays and retail displays.


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

Certain of the revenue transactions in the Outdoor segments are considered leases as the agreements convey to customers the right to use the Company’s advertising structures for a stated period of time. In order for a transaction with a customer to qualify as a lease, the arrangement must be dependent on the use of a specified advertising structure, and the customer must have almost exclusive use of that structure during the term of the arrangement. Therefore, arrangements that do not involve the use of an advertising structure, where the Company can substitute the advertising structure that is used to display the customer’s advertisement, or where the advertising structure displays advertisements for multiple customers throughout the day are not leases. The Company accounts for revenue from leases, which are all classified as operating leases, in accordance with the lease accounting guidance (Topic 840). All of the Company’s revenue transactions that do not qualify as a lease are accounted for as revenue from contracts with customers (Topic 606).

The following table shows, by segment, revenue from contracts with customers disaggregated by geographical region, revenue from leases and total revenue for the three months ended March 31, 2018 and 2017:



(In thousands)	iHM			Americas Outdoor₍₁₎		International Outdoor₍₁₎			Other		Eliminations			Consolidated
Three Months Ended March 31, 2018
Revenue from contracts with customers:
United States	$	740,445		$	96,147	$	—		$	28,218	$	(313	)	$	864,497
Other Americas	78			650		16,792			—		—			17,520
Europe	2,594			—		188,381			—		—			190,975
Asia-Pacific and other	4,250			—		6,508			—		—			10,758
Eliminations	(3,680		)	—		(71		)	—		—			(3,751		)
Total	$	743,687		$	96,797	$	211,610		$	28,218	$	(313	)	$	1,079,999
Revenue from leases	881			159,050		131,254			—		(1,223		)	289,962
Total Revenue	$	744,568		$	255,847	$	342,864		$	28,218	$	(1,536	)	$	1,369,961

Three Months Ended March 31, 2017
Revenue from contracts with customers:
United States	$	753,332		$	93,662	$	—		$	29,271	$	(570	)	$	875,695
Other Americas	426			3,531		13,457			—		—			17,414
Europe	2,010			—		154,604			—		—			156,614
Asia-Pacific and other	3,805			—		5,456			—		—			9,261
Eliminations	(3,671		)	—		(40		)	—		—			(3,711		)
Total	$	755,902		$	97,193	$	173,477		29,271		$	(570	)	$	1,055,273
Revenue from leases	1,271			163,153		110,903			—		(1,278		)	274,049
Total Revenue	$	757,173		$	260,346	$	284,380		$	29,271	$	(1,848	)	$	1,329,322

⁽¹⁾ Due to a re-evaluation of the Company’s internal segment reporting during the three months ended March 31, 2018, its operations in Latin America are being included in the International outdoor advertising segment results for all periods presented. See Note 1, Basis of Presentation.

All of the Company’s advertising structures are used to generate revenue. Such revenue may be classified as revenue from contracts with customers or revenue from leases depending on the terms of the contract, as previously described.

The following table presents the activity related to the Company’s contract balances from contracts with customers for the three months ended March 31, 2018 and 2017:



	Three Months Ended March 31,
(In thousands)	2018			2017
Accounts receivable from contracts with customers:
Beginning balance, net of allowance	$	1,200,050		$	1,071,418
Additions (collections), net	(151,417		)	(110,376		)
Bad debt, net of recoveries	(7,460		)	(5,538		)
Ending balance, net of allowance	$	1,041,173		$	955,504
Accounts receivable from leases	325,839			289,145
Accounts receivable, total	$	1,367,012		$	1,244,649

Deferred income from contracts with customers:
Beginning balance	$	297,686		$	313,545
Revenue recognized, included in beginning balance	(112,114		)	(124,246		)
Additions, net of revenue recognized during period	138,613			136,651
Ending balance	$	324,185		$	325,950
Deferred income from leases	68,571			66,758
Deferred income, total	$	392,756		$	392,708

The Company’s contracts with customers generally have a term of one year or less; however, as of March 31, 2018, the Company expects to recognize $250.4 million of revenue in future periods for remaining performance obligations from current contracts with customers that have an original expected duration of greater than one year, with substantially all of this amount to be recognized over the next five years. Commissions related to the Company’s media representation businesses have been excluded from this amount as they are contingent upon future sales. As part of the transition to the new revenue standard, the Company is not required to disclose information about remaining performance obligations for periods prior to the date of initial application.

Revenue from Leases

As of December 31, 2017, the Company’s future minimum rentals under non-cancelable operating leases were as follows:



(in thousands)
2018	$	278,957
2019	37,024
2020	19,103
2021	13,683
2022	9,628
Thereafter	18,836
Total minimum future rentals	$	377,231