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REVENUE
9 Months Ended
Sep. 30, 2019
Revenue from Contract with Customer [Abstract]  
REVENUE
REVENUE
Disaggregation of Revenue
The following table shows revenue streams for the Successor Company for the three months ended September 30, 2019 and the period from May 2, 2019 through September 30, 2019:
Successor Company
(In thousands)
Audio
 
Audio and Media Services
 
Eliminations
 
Consolidated
Three Months Ended September 30, 2019
Revenue from contracts with customers:
 
 
 
 
 
 
 
  Broadcast Radio(1)
$
573,048

 
$

 
$

 
$
573,048

  Digital(2)
96,656

 

 

 
96,656

  Networks(3)
160,133

 

 

 
160,133

 Sponsorship and Events(4)
55,541

 

 

 
55,541

  Audio and Media Services(5)

 
59,873

 
(1,731
)
 
58,142

  Other(6)
4,568

 

 
(168
)
 
4,400

     Total
889,946

 
59,873

 
(1,899
)
 
947,920

Revenue from leases(7)
418

 

 

 
418

Revenue, total
$
890,364

 
$
59,873

 
$
(1,899
)
 
$
948,338

 
 
 
 
 
 
 
 
Period from May 2, 2019 through September 30, 2019
Revenue from contracts with customers:
 
 
 
 
 
 
 
  Broadcast Radio(1)
$
963,588

 
$

 
$

 
$
963,588

  Digital(2)
160,894

 

 

 
160,894

  Networks(3)
265,559

 

 

 
265,559

 Sponsorship and Events(4)
87,331

 

 

 
87,331

  Audio and Media Services(5)

 
100,410

 
(2,740
)
 
97,670

  Other(6)
8,525

 

 
(280
)
 
8,245

     Total
1,485,897

 
100,410

 
(3,020
)
 
1,583,287

Revenue from leases(7)
697

 

 

 
697

Revenue, total
$
1,486,594

 
$
100,410

 
$
(3,020
)
 
$
1,583,984


(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
Three Months Ended September 30, 2018
Revenue from contracts with customers:
  Broadcast Radio
$
576,460

 
$

 
$

 
$
576,460

  Digital
72,447

 

 

 
72,447

  Networks
146,587

 

 

 
146,587

 Sponsorship and Events
53,191

 

 

 
53,191

  Audio and Media Services

 
69,823

 
(1,611
)
 
68,212

  Other
2,957

 

 

 
2,957

     Total
851,642

 
69,823

 
(1,611
)
 
919,854

Revenue from leases
638

 

 

 
638

Revenue, total
$
852,280

 
$
69,823

 
$
(1,611
)
 
$
920,492

 
 
 
 
 
 
 
 
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

 
 
 
 
 
 
 
 
Nine Months Ended September 30, 2018
Revenue from contracts with customers:
  Broadcast Radio
$
1,635,571

 
$

 
$

 
$
1,635,571

  Digital
200,388

 

 

 
200,388

  Networks
425,619

 

 

 
425,619

 Sponsorship and Events
132,339

 

 

 
132,339

  Audio and Media Services

 
180,582

 
(4,884
)
 
175,698

  Other
13,253

 

 

 
13,253

     Total
2,407,170

 
180,582

 
(4,884
)
 
2,582,868

Revenue from leases
2,160

 

 

 
2,160

Revenue, total
$
2,409,330

 
$
180,582

 
$
(4,884
)
 
$
2,585,028


(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
 
Three Months Ended September 30,
 
 
Three Months Ended September 30,
(In thousands)
2019
 
 
2018
  Trade and barter revenues
$
59,530

 
 
$
51,831

  Trade and barter expenses
40,319

 
 
40,607

 
Successor Company
 
 
Predecessor Company
 
Period from May 2, 2019 through September 30,
 
 
Period from January 1, 2019 through May 1,
 
Nine Months Ended September 30,
(In thousands)
2019
 
 
2019
 
2018
  Trade and barter revenues
$
89,229

 
 
$
65,934

 
$
141,769

  Trade and barter expenses
68,342

 
 
58,330

 
136,827



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 September 30,
 
 
Three Months Ended September 30,
(In thousands)
2019
 
 
2018
Deferred revenue from contracts with customers:
 
 
 
 
  Beginning balance(1)
$
159,752

 
 
$
160,369

    Revenue recognized, included in beginning balance
(74,875
)
 
 
(73,190
)
    Additions, net of revenue recognized during period, and other
75,660

 
 
67,973

  Ending balance
160,537

 
 
$
155,152


 
Successor Company
 
 
Predecessor Company
 
Period from May 2, 2019 through September 30,
 
 
Period from January 1, 2019 through May 1,
 
Nine Months Ended September 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
(87,098
)
 
 
(76,473
)
 
(101,456
)
    Additions, net of revenue recognized during period, and other
95,862

 
 
79,228

 
101,380

  Ending balance
$
160,537

 
 
$
151,475

 
$
155,152

(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 September 30, 2019, the Company expects to recognize $191.0 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 September 30, 2019, the future lease payments to be received by the Successor Company are as follows:
(In thousands)
2019
$
381

2020
1,317

2021
1,139

2022
833

2023
776

Thereafter
10,693

  Total
$
15,139