Company: CCO
Filing Date: 2025-02-24
Form Type: 10-K
Source: 0001334978-25-000008
Chunk: 116

Company: Clear Channel Outdoor Holdings, Inc.
Filing Date: 2025-02-24
Form: 10-K
Item: Item 8
Chunk 116
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 on their relative standalone selling prices. The Company has concluded that the contractual prices for the promised goods and services in its standard contracts generally approximate the best estimate of standalone selling prices, reflecting factors such as audience size and characteristics, market location and size, and recent market prices.The Company receives payments from customers based on billing schedules that are established in its contracts. Deferred revenue is recorded when payment is received before the performance obligation is satisfied or when a non-cancelable contract has been billed in advance. America and Airports contracts are generally billed monthly in advance.Refer to Note 5 for additional disclosures about the Company’s revenue.Contract CostsIncremental costs of obtaining a contract, primarily sales commissions, are included in “Selling, general and administrative expenses” on the Company’s Consolidated Statements of Loss. These costs are generally expensed when incurred because the period of benefit is one year or less.Share-Based CompensationUnder the fair value recognition provisions of ASC 718-10, share-based compensation cost is measured at the grant date based on the fair value of the award. This cost is included in “Corporate expenses” on the Company’s Consolidated Statements of Loss. For awards that vest based on service conditions, the expense is recognized on a straight-line basis over the requisite service period. For awards that vest based on performance conditions, the expense is recognized over the requisite service period if it is probable that the performance conditions will be met. For awards that vest based on market conditions, the expense is recognized over the requisite service period regardless of whether the market condition is ultimately satisfied. The determination the fair value of share-based awards at the grant date involves assumptions and judgments, such as expected volatility, among other factors. Refer to Note 13 for additional disclosures about the Company’s share-based compensation. 

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Table of ContentsCLEAR CHANNEL OUTDOOR HOLDINGS, INC. AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Income TaxesThe Company accounts for income taxes using the liability method. Under this method, deferred tax assets and liabilities are recognized based on the differences between the financial reporting and tax bases of assets and liabilities. These are measured using the enacted tax rates expected to apply to taxable income in the periods when the deferred tax asset or liability is expected to be realized or settled. Deferred tax assets are reduced by a valuation allowance if the Company believes it is more likely than not that some portion or all of the asset will not be realized.The Company has not provided U.S. federal income taxes for temporary differences related to investments in foreign