iHeartMedia 2001 Annual Report Download - page 56

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56
(In millions)
Year Ended December 31, 2001 Capital Expenditures
Radio
Outdoor
Entertainment
Corporate
and Other
Total
Recurring $ 33.8
$ 74.6 $ 12.7 $ 24.8 $ 145.9
Non-recurring projects 111.1 27.2 37.2 96.5 272.0
Revenue producing —
162.9 17.6 — 180.5
$ 144.9 $ 264.7 $ 67.5 $ 121.3 $ 598.4
Our radio broadcasting capital expenditures during the year ended December 31, 2001 are related
primarily to expenditures associated with the consolidation of operations in certain markets in
conjunction with acquisitions that are expected to result in improved operating results in such markets.
Our outdoor advertising capital expenditures during the year ended December 31, 2001 are
related primarily to the construction of new revenue producing advertising displays as well as
replacement expenditures on our existing advertising displays.
Our live entertainment capital expenditures during the year ended December 31, 2001 include
expenditures primarily related to a consolidated sales and operations facility, new venues and
improvements to existing venues.
Included in “corporate and other” capital expenditures during the year ended December 31, 2001
is the purchase of land for an additional corporate facility to replace leased space, purchase of certain
corporate assets, upgrades of our television related operating assets and other technology expenditures.
Future acquisitions of radio broadcasting stations, outdoor advertising facilities, live
entertainment assets and other media-related properties affected in connection with the implementation
of our acquisition strategy are expected to be financed from increased borrowings under our existing
credit facilities, additional public equity and debt offerings and cash flow from operations. We anticipate
utilizing available capacity on the credit facilities to refinance 2002 debt maturities. We believe that cash
flow from operations, as well as the proceeds from securities offerings made from time to time, will be
sufficient to make all required future interest and principal payments on the credit facilities, senior
convertible notes and bonds, and will be sufficient to fund all anticipated capital expenditures.
Other
During the year ended December 31, 2001, we made cash tax payments of $450.0 million
relating to gains realized on divested radio stations during 2000. Also, we made payments of
approximately $229.0 million related to severance and other merger related accruals during 2001.
Commitments and Contingencies
There are various lawsuits and claims pending against us. We believe that any ultimate liability
resulting from those actions or claims will not have a material adverse effect on our results of operations,
financial position or liquidity.
Certain agreements relating to acquisitions provide for purchase price adjustments and other
future contingent payments based on the financial performance of the acquired companies generally over
a one to five year period. We will continue to accrue additional amounts related to such contingent