iHeartMedia 2002 Annual Report Download - page 93

The Company guarantees a $150.0 million five-year revolving credit facility between its international subsidiary and a group of international
banks. The credit facility expires in 2005. The facility allows for borrowings in various foreign currencies, which are used to hedge net assets
in those currencies and provides funds to the Company’s international operations for certain working capital needs. At December 31, 2002 and
2001, the outstanding balance on the credit facility was $95.7 million and $94.4 million, respectively. The outstanding balance on the credit
facility is recorded in “Long-term debt”on the Company’s financial statements.
AMFM Operating Inc., an indirect wholly-owned subsidiary of the Company has guaranteed a portion of the Company’s bank credit facilities
including the reducing revolving line of credit facility, the $1.5 billion five-year multi-currency revolving credit facility and the $1.5 billion
three-year term loan with outstanding balances at December 31, 2002, of $555.0 million, $1.5 million, and $1.5 billion, respectively. At
December 31, 2002, the contingent liability under these guarantees was $1.0 billion. At December 31, 2002, these outstanding balances are
recorded in “Long-term debt”on the Company’s financial statements.
Within the Company’s bank credit facilities agreements is a provision that requires the Company to reimburse lenders for any increased costs
that they may incur in an event of a change in law, rule or regulation resulting in their reduced returns from any change in capital requirements.
In addition to not being able to estimate the potential amount of any future payment under this provision, the Company is not able to predict if
such event will ever occur.
The Company currently has guarantees that provide protection to its international subsidiary’s banking institutions related to overdraft lines and
credit card charge-back transactions up to approximately $62.0 million. As of December 31, 2002, no amounts were outstanding under these
agreements.
As of December 31, 2002, the Company has outstanding commercial standby letters of credit of $142.3 million that primarily expire in 2003.
These letters of credit relate to various operational matters including insurance, bid, and performance bonds as well as other items. These letters
of credit reduce the borrowing availability on the Company’s bank credit facilities, and are included in the Company’s calculation of its
leverage ratio covenant under the bank credit facilities.
NOTE I —INCOME TAXES
Significant components of the provision for income tax expense (benefit) are as follows:
(In thousands)
Significant components of the Company’s deferred tax liabilities and assets as of December 31, 2002 and 2001 are as follows:
86
2002 2001 2000
Current —federal $102,785 $26,598 $63,366
Current —foreign 33,594 19,450 4,290
Current —state 12,764 11,315 10,364
Total current 149,143 57,363 78,020
Deferred —federal 350,237 (137,213)340,999
Deferred —foreign (36,034) (13,462) 16,484
Deferred —state 30,020 (11,659)29,228
Total deferred 344,223 (162,334) 386,711
Income tax expense (benefit) $493,366 $(104,971) $464,731