REVENUE

The Company generates revenue from several sources:


•	The primary source of revenue in the iHM segment is the sale of local and national advertising on the Company’s broadcast radio stations, its iHeartRadio digital platforms, station websites, sponsorships and live events. This segment also generates revenues from traffic and weather data, syndicated content, 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.

Trade and Barter

Trade and barter transactions represent the exchange of advertising spots or display space for merchandise, services or other assets in the ordinary course of business. The transaction price for these contracts is measured at the estimated fair value of the non-cash consideration received unless this is not reasonably estimable, in which case the consideration is measured based on the standalone selling price of the advertising spots or display space promised to the customer. Trade and barter revenues and expenses from continuing operations, which are included in consolidated revenue and selling, general and administrative expenses, respectively, were as follows:



	Three Months Ended March 31,
(In thousands)	2019		2018
Consolidated:
Trade and barter revenues	$	59,382	$	57,392
Trade and barter expenses	51,928		68,277

iHM Segment:
Trade and barter revenues	$	55,585	$	53,946
Trade and barter expenses	49,856		64,532

Lease Revenue Considerations in Outdoor Segments

Certain of the revenue transactions in the Americas outdoor and International outdoor segments are considered leases, for accounting purposes, as the contracts convey to customers the right to control the use of the Company’s advertising displays for a period of time. These contracts, which typically cover periods of a few weeks to one year (although there are some with longer terms), are generally cancelable after a specified notice period in the Americas outdoor segment, while contracts in the International outdoor segment are generally non-cancelable or require the customer to pay a fee to terminate the contract. To qualify as a lease, fulfillment of the contract must be dependent upon the use of a specified advertising structure, the customer must have almost exclusive use of the advertising display throughout the contract term, and, upon adoption of the new leases standard (ASC 842) on January 1, 2019, the customer must also have the right to change the advertisement that is displayed throughout the contract term.

The Company has elected a practical expedient to not separate non-lease components from associated lease components if certain criteria are met. As such, each right to control the use of an advertising display that meets the lease criteria is combined with the related installation and maintenance services provided under the contract into a single lease component. Production services, which do not meet the criteria to be combined, and each advertising display that does not meet the lease criteria (along with any related installation and maintenance services) are non-lease components. Consideration in outdoor advertising contracts is allocated between lease and non-lease components in proportion to their relative standalone selling prices, which are generally approximated by the contractual prices for each promised service. The Company accounts for revenue from leases, which are all classified as operating leases, in accordance with the lease accounting guidance (ASC Topic 840 or ASC Topic 842, depending on the advertising campaign start date), while the Company’s remaining revenue transactions are accounted for as revenue from contracts with customers (ASC Topic 606).

In accordance with the transition approach that the Company elected to adopt ASC Topic 842, as described in Note 1, revenue contracts with campaign start dates prior to January 1, 2019 were not reassessed to determine whether they qualify as a lease under the requirements of the new leasing standard. Instead, they continue to be accounted for as revenue from contracts with customers or revenue from leases based on the requirements of the previous standard (ASC Topic 840), and the new requirements have been applied to revenue contracts with campaign start dates on or after January 1, 2019. Because the definition of a lease is more restrictive under the new standard, fewer of our new outdoor advertising contracts meet the definition of a lease for accounting purposes, resulting in an increase in the percentage of revenue that is categorized as revenue from contracts with customers as compared to the prior year.

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 months ended March 31, 2019 and 2018:



(In thousands)	iHM		Americas Outdoor⁽¹⁾		International Outdoor⁽¹⁾		Other		Eliminations			Consolidated
Three Months Ended March 31, 2019
Revenue from contracts with customers:
United States	$	759,400	$	131,431	$	—	$	30,190	$	(269	)	$	920,752
Other Americas	1,027		896		13,645		—		—			15,568
Europe	2,351		—		201,205		—		—			203,556
Asia-Pacific and other	2,622		—		53,231		—		—			55,853
Total	765,400		132,327		268,081		30,190		(269		)	1,195,729
Revenue from leases	410		140,395		46,313		—		(948		)	186,170
Revenue, total	$	765,810	$	272,722	$	314,394	$	30,190	$	(1,217	)	$	1,381,899

Three Months Ended March 31, 2018
Revenue from contracts with customers:
United States	$	736,940	$	96,147	$	—	$	28,218	$	(313	)	$	860,992
Other Americas	1,180		650		12,123		—		—			13,953
Europe	2,601		—		187,216		—		—			189,817
Asia-Pacific and other	2,957		—		3,012		—		—			5,969
Total	743,678		96,797		202,351		28,218		(313		)	1,070,731
Revenue from leases	890		159,050		140,200		—		(1,223		)	298,917
Revenue, total	$	744,568	$	255,847	$	342,551	$	28,218	$	(1,536	)	$	1,369,648


⁽¹⁾	All of the Company’s outdoor advertising structures, which may be owned or leased, 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 Company’s beginning and ending accounts receivable and deferred revenue balances from contracts with customers:



	Three Months Ended March 31,
(In thousands)	2019		2018
Accounts receivable, net of allowance, from contracts with customers:
Beginning balance	$	1,236,779	$	1,195,145
Ending balance	$	1,169,518	$	1,035,939

Deferred revenue from contracts with customers:
Beginning balance	$	188,604	$	184,000
Ending balance	$	212,286	$	211,582

During the three months ended March 31, 2019 and 2018, respectively, the Company recognized $97.3 million and $83.3 million of revenue that was included in the deferred revenue from contracts with customers balance at the beginning of the period.

The Company’s contracts with customers generally have terms of one year or less; however, as of March 31, 2019, the Company expects to recognize $316.7 million of revenue in future periods for remaining performance obligations from current contracts with customers that have an original expected duration 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.

Revenue from Leases

As of March 31, 2019, the future lease payments to be received by the Company are as follows:



(In thousands)
2019	$	397,444
2020	48,769
2021	19,832
2022	10,505
2023	3,138
Thereafter	15,432
Total	$	495,120

Note that the future lease payments disclosed are limited to the non-cancelable period of the lease and, for contracts that require the customer to pay a significant fee to terminate the contract such that the customer is considered reasonably certain not to exercise this option, periods beyond the termination option. Payments scheduled for periods beyond a termination option are not included for contracts that allow cancellation by the customer without a significant fee.