Company: CCO
Filing Date: 2025-02-24
Form Type: 10-K
Source: 0001334978-25-000008
Chunk: 115

Company: Clear Channel Outdoor Holdings, Inc.
Filing Date: 2025-02-24
Form: 10-K
Item: Item 8
Chunk 115
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 of advertising on printed and digital out-of-home advertising displays, which may be sold as individual units or as network packages. These contracts typically cover periods from a few weeks to one year, though some have longer terms. Revenue contracts in the Company’s America and Airports segments are generally cancelable after a specified notice period.

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

Certain revenue transactions qualify as leases for accounting purposes, as they grant customers the right to control the use of the Company’s advertising displays for a specified period. To qualify as a lease, the contract must depend on a specified advertising structure, the customer must have exclusive use of the display, and the customer must have the right to change the advertisement displayed during the contract term. Revenue from leases, classified as operating leases, is accounted for under ASC 842, and revenue from remaining transactions is accounted for as revenue from contracts with customers under ASC 606.Revenue from LeasesThe Company has elected the practical expedient under ASC 842 to combine non-lease components with associated lease components when certain criteria are met. As a result, the right to control the use of an advertising display that meets lease criteria is combined with related installation and maintenance services into a single lease component. Production services, which do not meet the criteria to be combined, and each advertising display that does not meet the lease criteria (along with any related installation and maintenance services) are non-lease components. Consideration in these contracts is allocated between lease and non-lease components based on their relative standalone selling prices, typically approximated by the contractual prices for each service.Revenue from Contracts with CustomersThe Company recognizes revenue when or as it satisfies a performance obligation by transferring a promised good or service to a customer. Revenue from the sale of advertising is generally recognized ratably over the contract term. The Company also generates revenue from production and creative services, which are distinct from advertising display services, and this revenue is recognized when the advertising copy is installed at the display site.The Company recognizes revenue in amounts that reflect the consideration it expects to receive, excluding taxes collected on behalf of governmental authorities (the “transaction price”). Because the transfer of goods and services typically occurs within a year of scheduled payment, the time value of money is generally not considered in determining the transaction price. Advertising revenue is reported net of agency commissions.For contracts with multiple distinct goods or services, the Company allocates the transaction price to each performance obligation based