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