iHeartMedia 2002 Annual Report Download - page 56

Capital Expenditures
Capital expenditures in 2002 decreased from $598.4 million in 2001 to $548.6 million in 2002. Overall, capital expenditures decreased in
2002 as compared to 2001 due to less recurring capital expenditures in our outdoor and corporate and other segments, partially offset by small
increases in recurring capital expenditures in our radio and entertainment segments. In addition, capital expenditures decreased due to less
integration and consolidation of our operations during the year ended December 31, 2002 as compared to the year ended December 31, 2001.
These decreases were partially offset by an increase in our capital expenditures related to revenue producing assets primarily in our outdoor
segment.
(In millions)
Our radio broadcasting capital expenditures decreased $29.7 million during the year ended December 31, 2002 as compared to 2001
primarily due to less consolidation of operations in certain markets in conjunction with our prior acquisitions that are expected to result in
improved results in such markets.
Our outdoor advertising capital expenditures increased $27.9 million during the year ended December 31, 2002 as compared to 2001
primarily due to additional construction of new revenue producing advertising displays.
Our live entertainment capital expenditures decreased $4.1 million during the year ended December 31, 2002 as compared to 2001 primarily
due to a higher spending in 2001 relating to a consolidated sales and operations facility. This decrease was partially offset by an increase in
spending relating to new venues.
Our corporate and other capital expenditures decreased $43.9 million during the year ended December 31, 2002 as compared to 2001
primarily related to additional spending in 2001 related to the purchase of certain corporate assets and upgrades of our television related
operating assets as well as other technology expenditures.
Income Taxes
During the year ended December 31, 2002, we utilized tax net operating loss carryforwards, which reduced our current tax expense and cash
tax payments by $152.0 million. In addition, we received approximately $24.6 million in 2002 related to tax refund payments. 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.
Deferred income taxes changed from a benefit of $162.3 million for the year ended December 31, 2001 to an expense of $344.2 million for
the year ended December 31, 2002, primarily as a result of adopting Statement 142. As we no longer amortize FCC licenses, we will no longer
recognize a deferred tax benefit for the difference between book and tax amortization on our FCC licenses. The deferred tax liability on the
balance sheet will not reverse over time unless we impair or sell our FCC licenses. In addition to the effects of Statement 142, the residual
increase in deferred tax expense for 2002 related to additional tax deductions taken on our 2001 federal tax return, filed on September 15, 2002,
compared to the amount recorded at December 31, 2001, which resulted in $68.3 million of deferred tax expense. The deductions in excess of
those previously estimated on the 2001 tax provision relate to recent changes in the tax laws associated primarily with tax depreciation.
Finally, during 2002, the following deferred tax benefits (expenses) were recorded which related to unusual transactions not expected to
reoccur in the near future: (1) $118.9 million deferred tax benefit associated with a lawsuit settlement, (2) $152.0 million deferred tax expense
associated with the utilization of acquired net operating
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Year Ended December 31, 2002 Ca
p
ital Ex
p
enditures
Cor
p
orate and
Radio Outdoor Entertainment Other Total
Recurring $34.8 $48.9 $15.5 $17.1 $116.3
Non-recurring projects 80.4 32.1 16.6 60.3 189.4
Revenue producing
—
211.6 31.3 —242.9
$115.2 $292.6 $63.4 $77.4 $548.6