REVENUE

Disaggregation of Revenue

The following table shows revenue streams for the Successor Company for the Period from May 2, 2019 through June 30, 2019:



Successor Company
(In thousands)	Audio		Audio and Media Services		Eliminations			Consolidated
Period from May 2, 2019 through June 30, 2019
Revenue from contracts with customers:
Broadcast Radio⁽¹⁾	$	390,540	$	—	$	—		$	390,540
Digital⁽²⁾	64,238		—		(132		)	64,106
Networks⁽³⁾	105,426		—		—			105,426
Sponsorship and Events⁽⁴⁾	31,790		—		—			31,790
Audio and Media Services⁽⁵⁾	—		40,537		(989		)	39,548
Other⁽⁶⁾	3,957		—		—			3,957
Total	595,951		40,537		(1,121		)	635,367
Revenue from leases⁽⁷⁾	279		—		—			279
Revenue, total	$	596,230	$	40,537	$	(1,121	)	$	635,646


⁽¹⁾	Broadcast Radio revenue is generated through the sale of advertising time on the Company’s domestic radio stations.


⁽²⁾	Digital revenue is generated through the sale of streaming and display advertisements on digital platforms, subscriptions to iHeartRadio streaming services, podcasting and the dissemination of other digital content.


⁽³⁾	Networks revenue is generated through the sale of advertising on the Company’s Premiere and Total Traffic & Weather network programs and through the syndication of network programming to other media companies.


⁽⁴⁾	Sponsorship and events revenue is generated through local events and major nationally-recognized tent pole events and include sponsorship and other advertising revenue, ticket sales, and licensing, as well as endorsement and appearance fees generated by on-air talent.

⁽⁵⁾

Audio and media services revenue is generated by services provided to broadcast industry participants through the Company’s Katz Media Group and Radio Computing Services (“RCS”) businesses. As a media representation firm, Katz Media Group generates revenue via commissions on media sold on behalf of the radio and television stations that it represents, while RCS generates revenue by providing broadcast and webcast software and technology and services to radio stations, television music channels, cable companies, satellite music networks and Internet stations worldwide.


⁽⁶⁾	Other revenue represents fees earned for miscellaneous services, including on-site promotions, activations, and local marketing agreements.


⁽⁷⁾	Revenue from leases is primarily generated by the lease of towers to other media companies, which are all categorized as operating leases.

The following table shows revenue streams from continuing operations for the Predecessor Company. The presentation of amounts in the Predecessor periods has been revised to conform to the Successor period presentation.



Predecessor Company
(In thousands)	Audio⁽¹⁾		Audio and Media Services⁽¹⁾		Eliminations			Consolidated
Period from April 1, 2019 through May 1, 2019
Revenue from contracts with customers:
Broadcast Radio	$	170,632	$	—	$	—		$	170,632
Digital	26,840		—		(56		)	26,784
Networks	50,889		—		—			50,889
Sponsorship and Events	10,617		—		—			10,617
Audio and Media Services	—		17,970		(701		)	17,269
Other	1,197		—		—			1,197
Total	260,175		17,970		(757		)	277,388
Revenue from leases	286		—		—			286
Revenue, total	$	260,461	$	17,970	$	(757	)	$	277,674

Three Months Ended June 30, 2018
Revenue from contracts with customers:
Broadcast Radio	$	568,968	$	—	$	—		$	568,968
Digital	68,574		—		—			68,574
Networks	146,981		—		—			146,981
Sponsorship and Events	41,256		—		—			41,256
Audio and Media Services	—		61,417		(1,601		)	59,816
Other	5,537		—		—			5,537
Total	831,316		61,417		(1,601		)	891,132
Revenue from leases	632		—		—			632
Revenue, total	$	831,948	$	61,417	$	(1,601	)	$	891,764

Period from January 1, 2019 through May 1, 2019
Revenue from contracts with customers:
Broadcast Radio	$	657,864	$	—	$	—		$	657,864
Digital	102,789		—		(223		)	102,566
Networks	189,088		—		—			189,088
Sponsorship and Events	50,330		—		—			50,330
Audio and Media Services	—		69,362		(2,345		)	67,017
Other	5,910		—		—			5,910
Total	1,005,981		69,362		(2,568		)	1,072,775
Revenue from leases	696		—		—			696
Revenue, total	$	1,006,677	$	69,362	$	(2,568	)	$	1,073,471

Six Months Ended June 30, 2018
Revenue from contracts with customers:
Broadcast Radio	$	1,059,111	$	—	$	—		$	1,059,111
Digital	127,941		—		—			127,941
Networks	279,032		—		—			279,032
Sponsorship and Events	79,148		—		—			79,148
Audio and Media Services	—		110,759		(3,273		)	107,486
Other	10,296							10,296
Total	1,555,528		110,759		(3,273		)	1,663,014
Revenue from leases	1,522		—		—			1,522
Revenue, total	$	1,557,050	$	110,759	$	(3,273	)	$	1,664,536


⁽¹⁾	Due to a re-evaluation of the Company’s internal segment reporting upon the effectiveness of the Plan of Reorganization, the Company’s RCS business is included in the Audio & Media Services results for all periods presented. See Note 1 for further information.

Trade and Barter

Trade and barter transactions represent the exchange of advertising spots 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 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:



	Successor Company		Predecessor Company
	Period from May 2, 2019 through June 30,		Period from April 1, 2019 through May 1,		Three Months Ended June 30,
(In thousands)	2019		2019		2018
Trade and barter revenues	$	29,699	$	10,349	$	35,992
Trade and barter expenses	28,023		8,474		31,688



	Successor Company		Predecessor Company
	Period from May 2, 2019 through June 30,		Period from January 1, 2019 through May 1,		Six Months Ended June 30,
(In thousands)	2019		2019		2018
Trade and barter revenues	$	29,699	$	65,934	$	89,938
Trade and barter expenses	28,023		58,330		96,220

Deferred Revenue

The following tables show the Company’s deferred revenue balance from contracts with customers, excluding discontinued operations:



	Successor Company			Predecessor Company
	Period from May 2, 2019 through June 30,			Period from April 1, 2019 through May 1,			Three Months Ended June 30,
(In thousands)	2019			2019			2018
Deferred revenue from contracts with customers:
Beginning balance⁽¹⁾	$	151,773		$	155,114		$	166,429
Revenue recognized, included in beginning balance	(59,018		)	(43,172		)	(59,450		)
Additions, net of revenue recognized during period, and other	66,997			39,533			53,390
Ending balance	159,752			$	151,475		$	160,369



	Successor Company			Predecessor Company
	Period from May 2, 2019 through June 30,			Period from January 1, 2019 through May 1,			Six Months Ended June 30,
(In thousands)	2019			2019			2018
Deferred revenue from contracts with customers:
Beginning balance⁽¹⁾	$	151,773		$	148,720		$	155,228
Revenue recognized, included in beginning balance	(59,018		)	(76,473		)	(82,215		)
Additions, net of revenue recognized during period, and other	66,997			79,228			87,356
Ending balance	$	159,752		$	151,475		$	160,369

⁽¹⁾

Deferred revenue from contracts with customers, which excludes other sources of deferred revenue that are not related to contracts with customers, is included within deferred revenue and other long-term liabilities on the Consolidated Balance Sheets, depending upon when revenue is expected to be recognized. As described in Note 3, as part of the fresh start accounting adjustments on May 1, 2019, deferred revenue from contracts with customers was adjusted to its estimated fair value.

The Company’s contracts with customers generally have terms of one year or less; however, as of June 30, 2019, the Company expects to recognize $199.8 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 June 30, 2019, the future lease payments to be received by the Successor Company are as follows:



(In thousands)
2019	$	556
2020	1,028
2021	959
2022	700
2023	656
Thereafter	10,602
Total	$	14,501