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REVENUE | 12 Months Ended
--- | ---
Dec. 31, 2019
Revenue from Contract with Customer [Abstract] |
REVENUE | REVENUE The Company generates revenue from several sources:
• | The primary source of revenue in the Audio 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 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 Audio and Media Services segment.
Disaggregation of Revenue The following table shows revenue streams for the Successor Company for the period from May 2, 2019 through December 31, 2019:
Successor Company
(In thousands) | Audio |  | Audio and Media Services |  | Eliminations |  | Consolidated
Period from May 2, 2019 through December 31, 2019
Revenue from contracts with customers: |  |  |  |  |  |  |
Broadcast Radio(1) | $ | 1,575,382 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,575,382 |
Digital(2) | 273,389 |  |  | — |  |  | — |  |  | 273,389 |
Networks(3) | 425,631 |  |  | — |  |  | — |  |  | 425,631 |
Sponsorship and Events(4) | 159,187 |  |  | — |  |  | — |  |  | 159,187 |
Audio and Media Services(5) | — |  |  | 167,292 |  |  | (4,589 | ) |  | 162,703 |
Other(6) | 13,017 |  |  | — |  |  | (447 | ) |  | 12,570 |
Total | 2,446,606 |  |  | 167,292 |  |  | (5,036 | ) |  | 2,608,862 |
Revenue from leases(7) | 1,194 |  |  | — |  |  | — |  |  | 1,194 |
Revenue, total | $ | 2,447,800 |  |  | $ | 167,292 |  |  | $ | (5,036 | ) |  | $ | 2,610,056 |
(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 and RCS businesses. As a media representation firm, Katz Media 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 January 1, 2019 through May 1, 2019
Revenue from contracts with customers: |  |  |  |  |  |  |
Broadcast Radio | $ | 657,864 |  |  | $ | — |  |  | $ | — |  |  | $ | 657,864 |
Digital | 102,789 |  |  | — |  |  | — |  |  | 102,789 |
Networks | 189,088 |  |  | — |  |  | — |  |  | 189,088 |
Sponsorship and Events | 50,330 |  |  | — |  |  | — |  |  | 50,330 |
Audio and Media Services | — |  |  | 69,362 |  |  | (2,325 | ) |  | 67,037 |
Other | 5,910 |  |  | — |  |  | (243 | ) |  | 5,667 |
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 |
Year Ended December 31, 2018
Revenue from contracts with customers:
Broadcast Radio | $ | 2,264,058 |  |  | $ | — |  |  | $ | — |  |  | $ | 2,264,058 |
Digital | 284,565 |  |  | — |  |  | — |  |  | 284,565 |
Networks | 582,302 |  |  | — |  |  | — |  |  | 582,302 |
Sponsorship and Events | 200,605 |  |  | — |  |  | — |  |  | 200,605 |
Audio and Media Services | — |  |  | 264,061 |  |  | (6,508 | ) |  | 257,553 |
Other | 19,446 |  |  | — |  |  | — |  |  | 19,446 |
Total | 3,350,976 |  |  | 264,061 |  |  | (6,508 | ) |  | 3,608,529 |
Revenue from leases | 2,794 |  |  | — |  |  | — |  |  | 2,794 |
Revenue, total | $ | 3,353,770 |  |  | $ | 264,061 |  |  | $ | (6,508 | ) |  | $ | 3,611,323 |
Year Ended December 31, 2017
Revenue from contracts with customers:
Broadcast Radio | $ | 2,292,116 |  |  | $ | — |  |  | $ | — |  |  | $ | 2,292,116 |
Digital | 248,736 |  |  | — |  |  | — |  |  | 248,736 |
Networks | 581,733 |  |  | — |  |  | — |  |  | 581,733 |
Sponsorship and Events | 201,775 |  |  | — |  |  | — |  |  | 201,775 |
Audio and Media Services | — |  |  | 235,951 |  |  | (6,511 | ) |  | 229,440 |
Other | 28,545 |  |  | — |  |  | — |  |  | 28,545 |
Total | 3,352,905 |  |  | 235,951 |  |  | (6,511 | ) |  | 3,582,345 |
Revenue from leases | 4,302 |  |  | — |  |  | — |  |  | 4,302 |
Revenue, total | $ | 3,357,207 |  |  | $ | 235,951 |  |  | $ | (6,511 | ) |  | $ | 3,586,647 |
(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, other advertising 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 December 31, |  |  | Period from January 1, 2019 through May 1, |  | Year Ended December 31,
(In thousands) | 2019 |  |  | 2019 |  | 2018 |  | 2017
Consolidated: |  |  |  |  |  |  |  |
Trade and barter revenues | $ | 151,497 |  |  |  | $ | 65,934 |  |  | $ | 202,674 |  |  | $ | 226,737 |
Trade and barter expenses | 134,865 |  |  |  | 58,330 |  |  | 199,982 |  |  | 190,906 |
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 December 31, |  |  | Period from January 1, 2019 through May 1, |  | Year Ended December 31,
(In thousands) | 2019 |  |  | 2019 |  | 2018 |  | 2017
Deferred revenue from contracts with customers: |  |  |  |  |  |  |  |
Beginning balance(1) | $ | 151,475 |  |  |  | $ | 148,720 |  |  | $ | 155,228 |  |  | $ | 165,037 |
Impact of fresh start accounting | 298 |  |  |  | — |  |  | — |  |  | — |
Revenue recognized, included in beginning balance | (102,237 | ) |  |  | (76,473 | ) |  | (115,930 | ) |  | (119,739 | )
Additions, net of revenue recognized during period, and other | 112,532 |  |  |  | 79,228 |  |  | 109,422 |  |  | 109,930 |
Ending balance | $ | 162,068 |  |  |  | $ | 151,475 |  |  | $ | 148,720 |  |  | $ | 155,228 |
(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 a term of one year or less; however, as of December 31, 2019, the Company expects to recognize $234.9 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. Revenue from Leases As of December 31, 2019, the future lease payments to be received by the Successor Company are as follows:
(In thousands)
2020 | $ | 1,462 |
2021 | 1,245 |
2022 | 858 |
2023 | 788 |
2024 | 690 |
Thereafter | 10,020 |
Total minimum future rentals | $ | 15,063 |

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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://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -URI http://asc.fasb.org/topic&trid=49130388 + Details
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