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REVENUES | 9 Months Ended
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Sep. 30, 2018
Revenue from Contract with Customer [Abstract] |
REVENUES | REVENUES The Company generates revenue from several sources:
• | The primary source of revenue in the iHM segment is the sale of advertising on the Company’s radio stations, its iHeartRadio mobile application and website, station websites, and live events. This segment also generates revenues from programming talent, network syndication, traffic and weather data, and other miscellaneous transactions.
• | The Americas outdoor and International outdoor segments generate revenue primarily from the sale of advertising space on printed and digital out-of-home advertising displays.
• | The Company also generates revenue through contractual commissions realized from the sale of national spot and online advertising on behalf of clients of its full-service media representation business, Katz Media, which is reported in the Company’s Other segment.
Certain of the revenue transactions in the Americas outdoor and International outdoor segments are considered leases, for accounting purposes, 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). Disaggregation of Revenue The following table shows, by segment, revenue from contracts with customers disaggregated by geographical region, revenue from leases and total revenue for the three and nine months ended September 30, 2018 and 2017:
(In thousands) | iHM |  | Americas Outdoor(1) |  | International Outdoor(1) |  | Other |  | Eliminations |  | Consolidated
Three Months Ended September 30, 2018
Revenue from contracts with customers: |  |  |  |  |  |  |  |  |  |  |
United States | $ | 869,126 |  |  | $ | 116,503 |  |  | $ | — |  |  | $ | 47,088 |  |  | $ | (168 | ) |  | $ | 1,032,549 |
Other Americas | 582 |  |  | 671 |  |  | 11,242 |  |  | — |  |  | — |  |  | 12,495 |
Europe | 2,415 |  |  | — |  |  | 191,514 |  |  | — |  |  | — |  |  | 193,929 |
Asia-Pacific and other | 4,059 |  |  | — |  |  | 5,563 |  |  | — |  |  | — |  |  | 9,622 |
Eliminations | (3,415 | ) |  | — |  |  | — |  |  | — |  |  | — |  |  | (3,415 | )
Total | 872,767 |  |  | 117,174 |  |  | 208,319 |  |  | 47,088 |  |  | (168 | ) |  | 1,245,180 |
Revenue from leases | 637 |  |  | 186,247 |  |  | 151,999 |  |  | — |  |  | (1,298 | ) |  | 337,585 |
Revenue, total | $ | 873,404 |  |  | $ | 303,421 |  |  | $ | 360,318 |  |  | $ | 47,088 |  |  | $ | (1,466 | ) |  | $ | 1,582,765 |
Three Months Ended September 30, 2017
Revenue from contracts with customers:
United States | $ | 854,890 |  |  | $ | 106,806 |  |  | $ | — |  |  | $ | 34,452 |  |  | $ | (341 | ) |  | $ | 995,807 |
Other Americas | 704 |  |  | 2,488 |  |  | 14,224 |  |  | — |  |  | — |  |  | 17,416 |
Europe | 2,420 |  |  | — |  |  | 181,229 |  |  | — |  |  | — |  |  | 183,649 |
Asia-Pacific and other | 4,453 |  |  | 162 |  |  | 4,635 |  |  | — |  |  | — |  |  | 9,250 |
Eliminations | (3,798 | ) |  | — |  |  | — |  |  | — |  |  | — |  |  | (3,798 | )
Total | 858,669 |  |  | 109,456 |  |  | 200,088 |  |  | 34,452 |  |  | (341 | ) |  | 1,202,324 |
Revenue from leases | 862 |  |  | 184,351 |  |  | 150,535 |  |  | — |  |  | (1,315 | ) |  | 334,433 |
Revenue, total | $ | 859,531 |  |  | $ | 293,807 |  |  | $ | 350,623 |  |  | $ | 34,452 |  |  | $ | (1,656 | ) |  | $ | 1,536,757 |
Nine Months Ended September 30, 2018
Revenue from contracts with customers: |  |  |  |  |  |  |  |  |  |  |
United States | $ | 2,457,506 |  |  | $ | 328,138 |  |  | $ | — |  |  | $ | 113,803 |  |  | $ | (1,606 | ) |  | $ | 2,897,841 |
Other Americas | 2,025 |  |  | 1,955 |  |  | 36,723 |  |  | — |  |  | — |  |  | 40,703 |
Europe | 7,477 |  |  | — |  |  | 605,032 |  |  | — |  |  | — |  |  | 612,509 |
Asia-Pacific and other | 12,640 |  |  | — |  |  | 17,685 |  |  | — |  |  | — |  |  | 30,325 |
Eliminations | (10,568 | ) |  | — |  |  | — |  |  | — |  |  | — |  |  | (10,568 | )
Total | 2,469,080 |  |  | 330,093 |  |  | 659,440 |  |  | 113,803 |  |  | (1,606 | ) |  | 3,570,810 |
Revenue from leases | 2,159 |  |  | 529,097 |  |  | 455,487 |  |  | — |  |  | (4,298 | ) |  | 982,445 |
Revenue, total | $ | 2,471,239 |  |  | $ | 859,190 |  |  | $ | 1,114,927 |  |  | $ | 113,803 |  |  | $ | (5,904 | ) |  | $ | 4,553,255 |
Nine Months Ended September 30, 2017
Revenue from contracts with customers:
United States | $ | 2,487,144 |  |  | $ | 308,988 |  |  | $ | — |  |  | $ | 99,332 |  |  | $ | (1,778 | ) |  | $ | 2,893,686 |
Other Americas | 2,107 |  |  | 10,279 |  |  | 37,418 |  |  | — |  |  | — |  |  | 49,804 |
Europe | 6,825 |  |  | — |  |  | 533,111 |  |  | — |  |  | — |  |  | 539,936 |
Asia-Pacific and other | 12,782 |  |  | 568 |  |  | 14,853 |  |  | — |  |  | — |  |  | 28,203 |
Eliminations | (11,120 | ) |  | — |  |  | — |  |  | — |  |  | — |  |  | (11,120 | )
Total | 2,497,738 |  |  | 319,835 |  |  | 585,382 |  |  | 99,332 |  |  | (1,778 | ) |  | 3,500,509 |
Revenue from leases | 3,346 |  |  | 534,509 |  |  | 420,572 |  |  | — |  |  | (3,666 | ) |  | 954,761 |
Revenue, total | $ | 2,501,084 |  |  | $ | 854,344 |  |  | $ | 1,005,954 |  |  | $ | 99,332 |  |  | $ | (5,444 | ) |  | $ | 4,455,270 |
(1) Due to a re-evaluation of the Company’s segment reporting in 2018, its operations in Latin America are included in the International outdoor 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. Revenue from Contracts with Customers The following tables show the changes in the Company’s contract balances from contracts with customers for the three and nine months ended September 30, 2018 and 2017:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
(In thousands) | 2018 |  | 2017 |  | 2018 |  | 2017
Accounts receivable from contracts with customers: |  |  |  |  |  |  |
Beginning balance, net of allowance | $ | 1,104,255 |  |  | $ | 1,106,289 |  |  | $ | 1,196,101 |  |  | $ | 1,067,980 |
Additions (collections), net | 19,628 |  |  | 6,487 |  |  | (58,027 | ) |  | 55,186 |
Bad debt, net of recoveries | (2,720 | ) |  | (6,189 | ) |  | (16,911 | ) |  | (16,579 | )
Ending balance, net of allowance | 1,121,163 |  |  | 1,106,587 |  |  | 1,121,163 |  |  | 1,106,587 |
Accounts receivable from leases, net of allowance | 345,761 |  |  | 326,432 |  |  | 345,761 |  |  | 326,432 |
Total accounts receivable, net of allowance | $ | 1,466,924 |  |  | $ | 1,433,019 |  |  | $ | 1,466,924 |  |  | $ | 1,433,019 |
| Three Months Ended September 30, |  | Nine Months Ended September 30,
(In thousands) | 2018 |  | 2017 |  | 2018 |  | 2017
Deferred revenue from contracts with customers: |  |  |  |  |  |  |
Beginning balance | $ | 204,013 |  |  | $ | 206,807 |  |  | $ | 181,748 |  |  | $ | 191,916 |
Revenue recognized, included in beginning balance | (106,893 | ) |  | (97,775 | ) |  | (131,449 | ) |  | (141,045 | )
Additions, net of revenue recognized during period | 96,173 |  |  | 88,297 |  |  | 142,994 |  |  | 146,458 |
Ending balance | 193,293 |  |  | 197,329 |  |  | 193,293 |  |  | 197,329 |
Deferred revenue from leases | 50,930 |  |  | 54,639 |  |  | 50,930 |  |  | 54,639 |
Total deferred revenue | 244,223 |  |  | 251,968 |  |  | 244,223 |  |  | 251,968 |
Less: Non-current portion, included in other long-term liabilities | 30,484 |  |  | 41,473 |  |  | 30,484 |  |  | 41,473 |
Current portion of deferred revenue, included in deferred income | $ | 213,739 |  |  | $ | 210,495 |  |  | $ | 213,739 |  |  | $ | 210,495 |
The Company’s contracts with customers generally have a term of one year or less; however, as of September 30, 2018, the Company expects to recognize $243.1 million of revenue in future periods for remaining performance obligations from current contracts with customers that have an original expected duration of greater than one year, with substantially all of this amount to be recognized over the next five years. Commissions related to the Company’s media representation business have been excluded from this amount as they are contingent upon future sales. 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 | $ | 280,909 |
2019 | 37,024 |
2020 | 19,103 |
2021 | 13,683 |
2022 | 9,628 |
Thereafter | 18,836 |
Total minimum future rentals | $ | 379,183 |

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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -URI http://asc.fasb.org/topic&trid=49130388 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -URI http://asc.fasb.org/topic&trid=2122369 + Details
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