iHeartMedia 2002 Annual Report Download - page 86

(In thousands)
Accumulated net unrealized gain (loss) on available-for-sale securities, net of tax, of $(3.1) million and $92.0 million were recorded in
shareholders’equity in “Accumulated other comprehensive income (loss)”at December 31, 2002 and 2001, respectively. The net unrealized
gain (loss) on trading securities of $(11.9) million and $12.6 million for the year ended December 31, 2002 and 2001, respectively, is recorded
on the statement of operations in “Gain on marketable securities”. Other cost investments include various investments in companies for which
there is no readily determinable market value.
On January 1, 2001, the Company reclassified 2.0 million shares of American Tower Corporation from available-for-sale to a trading security
under the one-time exception allowed in Financial Accounting Standards No. 133 Accounting for Derivative Instruments and Hedging
A
ctivities. The shares were transferred to a trading classification at their fair market value of $76.2 million and an unrealized pretax holding
gain of $69.7 million was recorded on the statement of operations in “Gain on marketable securities”.
During 2002, an unrealized loss of $25.3 million was recorded on the statement of operations in “Gain (loss) on marketable securities”related
to the impairment of investment in a media company that had declines in its market value that was considered to be other-than-temporary. Also
during 2002, realized gains of $4.0 million, $4.6 million and $2.8 million were recorded on the statement of operations in “Gain (loss) on sale
of assets related to mergers”, “Gain (loss) on marketable securities”and “Other income expense –net”, respectively. Finally, during 2002, the
Company cancelled its investment of $14.2 million in Ackerley common shares as part of the consideration paid in that merger. During 2001,
unrealized losses of $55.6 million and $11.6 million were recorded on the statement of operations in “Gain (loss) on marketable securities”and
“Gain (loss) on sale of assets related to mergers”, respectively, related to impairments of investments that had declines in their market values
that were considered to be other-than-temporary. These impairments include investments in Internet companies and various media companies.
In connection with the completion of the AMFM merger, Clear Channel and AMFM entered into a Consent Decree with the Department of
Justice regarding AMFM’s investment in Lamar Advertising Company, (“Lamar”). The Consent Decree, among other things, required the
Company to sell all of its 26.2 million shares of Lamar by December 31, 2002 and relinquish all shareholder rights during the disposition
period. As a result, the Company did not exercise significant influence and accounted for this investment under the cost method of accounting.
During 2001, proceeds of $920.0 million were received on the sale of 24.9 million shares of Lamar. A loss of $235.0 million was realized on
the sale of Lamar common stock in 2001, which was recorded in “Gain (loss) on sale of assets related to mergers”. At December 31, 2001, the
CompanynolongerheldanyLamarcommonstock.
79
Unrealized
Fair
Investments Value Gains (Losses) Net Cost
2001
Available-for sale $270,890 $143,344 $
—
$143,344 $127,546
Trading 19,040 12,606
—
12,606 6,434
Other cost investments 64,411
—
—
—
64,411
Total $354,341 $155,950 $
—
$155,950 $198,391