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DISCONTINUED OPERATIONS | 9 Months Ended
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Sep. 30, 2019
Discontinued Operations and Disposal Groups [Abstract] |
DISCONTINUED OPERATIONS | DISCONTINUED OPERATIONS Discontinued operations relate to our domestic and international outdoor advertising businesses and were previously reported as the Americas outdoor and International outdoor segments prior to the Separation. Assets, liabilities, revenue, expenses and cash flows for these businesses are separately reported as assets, liabilities, revenue, expenses and cash flows from discontinued operations in the Company's financial statements for all periods presented. Financial Information for Discontinued Operations Income Statement Information The following shows the revenue, income (loss) from discontinued operations and gain on disposal of the Predecessor Company's discontinued operations for the periods presented:
(In thousands) | Predecessor Company
| Three Months Ended September 30, |  | Period from January 1, 2019 through May 1, |  | Nine Months Ended September 30,
| 2018 |  | 2019 |  | 2018
Revenue | $ | 663,739 |  |  | $ | 804,566 |  |  | $ | 1,974,117 |
Loss from discontinued operations before income taxes | $ | (42,595 | ) |  | $ | (133,475 | ) |  | $ | (149,952 | )
Income tax expense | (6,896 | ) |  | (6,933 | ) |  | (57,016 | )
Loss from discontinued operations, net of taxes | $ | (49,491 | ) |  | $ | (140,408 | ) |  | $ | (206,968 | )
Gain on disposals before income taxes | $ | — |  |  | $ | 1,825,531 |  |  | $ | — |
Income tax expense | — |  |  | — |  |  | — |
Gain on disposals, net of taxes | $ | — |  |  | $ | 1,825,531 |  |  | $ | — |
Income (loss) from discontinued operations, net of taxes | $ | (49,491 | ) |  | $ | 1,685,123 |  |  | $ | (206,968 | )
Balance Sheet Information The following table shows the classes of assets and liabilities classified as discontinued operations for the Predecessor Company as of December 31, 2018:
(In thousands) | Predecessor Company
| December 31, 2018
CURRENT ASSETS |
Cash and cash equivalents | $ | 182,456 |
Accounts receivable, net of allowance of $24,224 | 706,309 |
Prepaid expenses | 95,734 |
Other current assets | 31,301 |
Current assets of discontinued operations | $ | 1,015,800 |
LONG-TERM ASSETS |
Structures, net | $ | 1,053,016 |
Property, plant and equipment, net | 235,922 |
Indefinite-lived intangibles - permits | 971,163 |
Other intangibles, net | 252,862 |
Goodwill | 706,003 |
Other assets | 132,504 |
Long-term assets of discontinued operations | $ | 3,351,470 |
CURRENT LIABILITIES |
Accounts payable | $ | 113,714 |
Accrued expenses | 528,482 |
Accrued interest | 2,341 |
Deferred income | 85,052 |
Current portion of long-term debt | 227 |
Current liabilities of discontinued operations | $ | 729,816 |
LONG-TERM LIABILITIES |
Long-term debt | $ | 5,277,108 |
Deferred income taxes | 335,015 |
Other long-term liabilities | 260,150 |
Long-term liabilities of discontinued operations | $ | 5,872,273 |
In connection with the Separation, the Company and its subsidiaries entered into the agreements described below. Transition Services Agreement On the Effective Date, the Company, iHM Management Services, iHeartCommunications and CCOH entered into a transition services agreement (the “Transition Services Agreement”), pursuant to which iHM Management Services has agreed to provide, or cause the Company, iHeartCommunications, iHeart Operations or any member of the iHeart Group to provide, CCOH with certain administrative and support services and other assistance which CCOH will utilize in the conduct of its business as such business was conducted prior to the Separation, for one year from the Effective Date (subject to certain rights of CCOH to extend up to one additional year, as described below). The transition services may include, among other things, (a) treasury, payroll and other financial related services, (b) certain executive officer services, (c) human resources and employee benefits, (d) legal and related services, (e) information systems, network and related services, (f) investment services and (g) procurement and sourcing support. The charges for the transition services are generally consistent with the Corporate Services Agreement, dated as of November 10, 2005, by and between iHM Management Services and CCOH (the “Corporate Services Agreement”), which governed the provision of certain services by the iHeart Group to the Outdoor Group prior to the Separation. The allocation of cost is based on various measures depending on the service provided, which measures include relative revenue, employee headcount, number of users of a service or other factors. CCOH may request an extension of the term for all services or individual services for one-month periods for up to an additional 12 months, and the price for transition services provided during such extended term will be increased for any service other than those identified in the schedules to the Transition Services Agreement as an “IT Service” or any other service the use and enjoyment of which requires the use of another IT Service. CCOH may terminate the Transition Services Agreement with respect to all or any individual service, in whole or in part, upon 30 days’ prior written notice, provided that any co-dependent services must be terminated concurrently. New Tax Matters Agreement On the Effective Date, the Company entered into a new tax matters agreement (the “New Tax Matters Agreement”) by and among the Company, iHeartCommunications, iHeart Operations, CCH, CCOH and CCOL, to allocate the responsibility of the Company and its subsidiaries, on the one hand, and the Outdoor Group, on the other, for the payment of taxes arising prior and subsequent to, and in connection with, the Separation. The New Tax Matters Agreement requires that the Company and iHeartCommunications indemnify CCOH and its subsidiaries, and their respective directors, officers and employees, and hold them harmless, on an after-tax basis, from and against (i) any taxes other than transfer taxes or indirect gains taxes imposed on the Company or any of its subsidiaries (other than CCOH and its subsidiaries) in connection with the Separation, (ii) any transfer taxes and indirect gains taxes arising in connection with the Separation, and (iii) fifty percent of the amount by which the amount of taxes (other than transfer taxes or indirect gains taxes) imposed on CCOH or any of its subsidiaries in connection with the Separation that are paid to the applicable taxing authority on or before the third anniversary of the separation of CCOH exceeds $5 million, provided that, the obligations of the Company and iHeartCommunications to indemnify CCOH and its subsidiaries with respect taxes (other than transfer taxes or indirect gains taxes) imposed on CCOH or any of its subsidiaries in connection with the Separation will not exceed $15 million. In addition, if the Company or its subsidiaries use certain tax attributes of CCOH and its subsidiaries (including net operating losses, foreign tax credits and other credits) and such use results in a decrease in the tax liability of the Company or its subsidiaries, then the Company is required to reimburse CCOH for the use of such attributes based on the amount of tax benefit realized. The New Tax Matters Agreement provides that any reduction of the tax attributes of CCOH and its subsidiaries as a result of cancellation of indebtedness income realized in connection with the Chapter 11 Cases is not treated as a use of such attributes (and therefore does not require the Company or iHeartCommunications to reimburse CCOH for such reduction). The New Tax Matters Agreement also requires that (i) CCOH indemnify the Company for any income taxes paid by the Company on behalf of CCOH and its subsidiaries or, with respect to any income tax return for which CCOH or any of its subsidiaries joins with the Company or any of subsidiaries in filing a consolidated, combined or unitary return, the amount of taxes that would have been incurred by CCOH and its subsidiaries if they had filed a separate return, and (ii) except as described in the preceding paragraph, CCOH indemnify the Company and its subsidiaries, and their respective directors, officers and employees, and hold them harmless, on an after-tax basis, from and against any taxes other than transfer taxes or indirect gains taxes imposed on CCOH or any of its subsidiaries in connection with the Separation. Any tax liability of CCH attributable to any taxable period ending on or before the date of the completion of the Separation, other than any such tax liability resulting from CCH’s being a successor of CCOH in connection with the merger of CCOH with and into CCOH or arising from the operation of the business of CCOH and its subsidiaries after the merger of CCOH with and into CCH, will not be treated as a liability of CCOH and its subsidiaries for purposes of the New Tax Matters Agreement.

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- Definition The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -URI http://asc.fasb.org/topic&trid=2155823 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=2122178 + Details
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