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REVENUE

3 Months Ended

Mar. 31, 2020

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue

The following table shows revenue streams for the Successor Company for the three months ended March 31, 2020:



Successor Company
(In thousands)	Audio		Audio and Media Services		Eliminations			Consolidated
Three Months Ended March 31, 2020
Revenue from contracts with customers:
Broadcast Radio⁽¹⁾	$	461,660	$	—	$	—		$	461,660
Digital⁽²⁾	92,776		—		—			92,776
Networks⁽³⁾	134,577		—		—			134,577
Sponsorship and Events⁽⁴⁾	29,348		—		—			29,348
Audio and Media Services⁽⁵⁾	—		60,227		(1,811		)	58,416
Other⁽⁶⁾	3,560		—		(167		)	3,393
Total	721,921		60,227		(1,978		)	780,170
Revenue from leases⁽⁷⁾	464		—		—			464
Revenue, total	$	722,385	$	60,227	$	(1,978	)	$	780,634


⁽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 period has been revised to conform to the Successor period presentation.



Predecessor Company
(In thousands)	Audio⁽¹⁾		Audio and Media Services⁽¹⁾		Eliminations			Consolidated
Three Months Ended March 31, 2019
Revenue from contracts with customers:
Broadcast Radio	$	487,232	$	—	$	—		$	487,232
Digital	75,949		—		—			75,949
Networks	138,199		—		—			138,199
Sponsorship and Events	39,713		—		—			39,713
Audio and Media Services	—		51,392		(1,623		)	49,769
Other	4,713		—		(188		)	4,525
Total	745,806		51,392		(1,811		)	795,387
Revenue from leases	410		—		—			410
Revenue, total	$	746,216	$	51,392	$	(1,811	)	$	795,797


⁽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.

Trade and Barter

Trade and barter transactions represent the exchange of advertising spots for merchandise, services, advertising and promotion 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
	Three Months Ended March 31,		Three Months Ended March 31,
(In thousands)	2020		2019
Trade and barter revenues	$	52,678	$	55,585
Trade and barter expenses	54,998		49,856

The Successor Company recognized barter revenue of $5.0 million in the three months ended March 31, 2020 in connection with investments made in companies in exchange for advertising services. The Predecessor Company recognized barter revenue of $5.1 million in the three months ended March 31, 2019 in connection with investments made in companies in exchange for advertising services.

Deferred Revenue

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



	Successor Company			Predecessor Company
	Three Months Ended March 31,			Three Months Ended March 31,
(In thousands)	2020			2019
Deferred revenue from contracts with customers:
Beginning balance⁽¹⁾	$	162,068		$	148,720
Revenue recognized, included in beginning balance	(80,055		)	(68,927		)
Additions, net of revenue recognized during period, and other	93,308			75,321
Ending balance	175,321			$	155,114


⁽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.

The Company’s contracts with customers generally have terms of one year or less; however, as of March 31, 2020, the Company expects to recognize $233.7 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, 2020, the future lease payments to be received by the Successor Company are as follows:



(In thousands)
2020	$	1,109
2021	1,252
2022	858
2023	793
2024	694
Thereafter	10,021
Total	$	14,727