iHeartMedia 2001 Annual Report Download - page 91

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Included in the above reconciliation of income tax for 1999 is $8.1 million of benefit related to
extraordinary loss resulting from early extinguishment of long-term debt.
The Company has certain net operating loss carryforwards amounting to $362.0 million, which expire in
various amounts from 2003 to 2020. Approximately $269.0 million in net operating loss carryforwards
were generated by certain acquired companies prior to their acquisition by the Company. During the
current year, the Company did not utilize any net operating loss carryforwards.
During 2001, the Company recorded certain adjustments to deferred tax assets and related valuation
allowances for net operating losses of certain acquired companies. If benefits are subsequently realized,
the valuation allowance will be reversed through goodwill.
NOTE H – SHAREHOLDERS’ EQUITY
Common Stock Warrants
The Company assumed two issues of fully exercisable common stock warrants as a part of the merger
with Jacor in 1999 with a fair value of $253.4 million.
Warrants expired September 18, 2001
The Company assumed 21.6 million common stock warrants that expired on September 18, 2001. Each
warrant represented the right to receive .2355422 shares of the Company’s common stock, at an exercise
price of $24.19 per full share of the Company’s common stock. The Company issued 5.1 million and
220 shares of common in 2001 and 2000, respectively, on exercises of these common stock warrants.
Warrants expiring February 27, 2002
The Company assumed 3.6 million common stock warrants that expire on February 27, 2002. Each
warrant represents the right to receive .1304410 shares of the Company’s common stock, at an exercise
price of $34.56 per full share of the Company’s common stock. The Company issued 15,768 and 99,550
shares of common in 2001 and 2000, respectively, on exercises of these common stock warrants. At
December 31, 2001, approximately 348,000 shares of common stock were reserved for the conversion of
these warrants.
Stock Options
The Company has granted options to purchase its common stock to employees and directors of the
Company and its affiliates under various stock option plans at no less than the fair market value of the
underlying stock on the date of grant. These options are granted for a term not exceeding ten years and
are forfeited in the event the employee or director terminates his or her employment or relationship with
the Company or one of its affiliates. All option plans contain anti-dilutive provisions that require the
adjustment of the number of shares of the Company common stock represented by each option for any
stock splits or dividends.
As a result of the mergers with Jacor in 1999 and AMFM and SFX in 2000, the Company assumed stock
options that were granted to employees and affiliates of these companies. These options were granted in
accordance with each respective company’s policy and under the terms of each respective company’s
stock option plans. Pursuant to the respective merger agreements, the Company assumed the obligation
to fulfill all options granted in accordance with the original grant terms adjusted for the appropriate