iHeartMedia 2009 Annual Report Download - page 4

PART I
ITEM 1. Business
Introduction
As permitted by the rules and regulations of the SEC, the financial statements and related footnotes included in Item 6 and
Item 8 of Part II of this Annual Report on Form 10-K are those of Clear Channel Capital I, LLC, the direct parent of Clear Channel
Communications, Inc., a Texas corporation (“Clear Channel” or the “Subsidiary Issuer”), and contain certain footnote disclosures
regarding the financial information of Clear Channel and Clear Channel’s domestic wholly-owned subsidiaries that guarantee certain
of Clear Channel’s outstanding indebtedness. All other financial information and other data and information contained in this Annual
Report on Form 10-K is that of Clear Channel, unless otherwise indicated. Accordingly, all references in Part I, references in Item 5
of Part II through Item 7A of Part II and all references in Part III of this Annual Report on Form 10-K to “we,” “us,” and “our” refer
to Clear Channel and its consolidated subsidiaries.
Clear Channel
On November 16, 2006, Clear Channel entered into the merger agreement with Merger Sub, an entity formed by private
equity funds sponsored by Bain Capital Partners, LLC (“Bain”) and Thomas H. Lee Partners, L.P. (“THL”) (together, the “Sponsors”)
to effect the acquisition of Clear Channel by CC Media Holdings, Inc. (“CCMH”). Clear Channel held a special meeting of its
shareholders on July 24, 2008, at which time the proposed merger was approved. On July 30, 2008, upon the satisfaction of the
conditions set forth in the merger agreement, CCMH acquired Clear Channel. The acquisition was effected by the merger of Merger
Sub, then an indirect subsidiary of CCMH, with and into Clear Channel. As a result of the merger, Clear Channel became a wholly-
owned subsidiary of CCMH, held indirectly through intermediate holding companies including Clear Channel Capital. Upon the
consummation of the merger, CCMH became a public company and Clear Channel was no longer a public company.
Recent Developments
In 2008 and continuing into 2009, the global economic downturn adversely affected advertising revenues across our
businesses. In the fourth quarter of 2008, CCMH initiated an ongoing, company-wide strategic review of our costs and organizational
structure to identify opportunities to maximize efficiency and realign expenses with our current and long-term business outlook (the
“restructuring program”). As of December 31, 2009, we had incurred a total of $260.3 million of costs in conjunction with this
restructuring program. We estimate the benefit of the restructuring program was an approximate $441.3 million aggregate reduction
to fixed operating and corporate expenses in 2009 and that the benefit of these initiatives will be fully realized by 2011.
No assurance can be given that the restructuring program will achieve all of the anticipated cost savings in the timeframe
expected or at all, or that the cost savings will be sustainable. In addition, we may modify or terminate the restructuring program in
response to economic conditions or otherwise.
Also, as a result of the economic downturn and the corresponding reduction in our revenues, we recorded non-cash
impairment charges primarily related to goodwill and indefinite-lived intangibles at December 31, 2008 and June 30, 2009 of $5.3
billion and $4.0 billion, respectively.
You can find more information about us at our Internet website located at www.clearchannel.com. Our Annual Report on
Form 10-K, our Quarterly Reports on Form 10-Q, our Current Reports on Form 8-K and any amendments to those reports are
available free of charge through our Internet website as soon as reasonably practicable after we electronically file such material with
the Securities and Exchange Commission ( “SEC”). The contents of our website are not deemed to be part of this Annual Report on
Form 10-K or any of our other filings with the SEC.
Our principal executive offices are located at 200 East Basse Road, San Antonio, Texas 78209 (telephone: [phone]).
Our Business Segments
We are a diversified media company incorporated in 1974 with three reportable business segments: Radio Broadcasting, or
Radio; Americas Outdoor Advertising, or Americas outdoor; and International Outdoor Advertising, or International outdoor.
Approximately half of our revenue is generated from our Radio Broadcasting segment. The remaining half is comprised of our
Americas Outdoor Advertising business segment, our International Outdoor Advertising business segment, Katz Media, a full-service
media representation firm, and other support services and initiatives. In addition to the information provided below, you can find
more information about our segments in our consolidated financial statements located in Item 8 of this Annual Report on Form 10-K.
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