iHeartMedia 2009 Annual Report Download - page 44

R
estructuring Program
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. 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.
The following table shows the expenses related to our restructuring program recognized as components of direct operating
expenses, selling, general and administrative (“SG&A”) expenses and corporate expenses for the year ended December 31, 2009 and
2008, respectively:
Sale of Non-core Radio Stations
Our sale of non-core radio stations was substantially complete in the first half of 2008. We determined that each radio
station market in our non-core radio station sales represents a disposal group consistent with the provisions of ASC 360-10.
Consistent with the provisions of ASC 360-10, we classified these assets sales as discontinued operations. Additionally, net income
and cash flow from these non-core radio station sales were classified as discontinued operations in the consolidated statements of
operations and the consolidated statements of cash flows, respectively, in 2008 through the date of sale and for all of 2007.
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(In thousands)
Balances as o
f
December 31,
2008 Acquisitions Dispositions
Foreign
Currency Impairment Adjustments
Balances as o
f
December 31,
2009
United States Radio Markets $ 5,579,190 $ 4,518 $ (62,410) $ — $(2,420,897) $ 46,468 $ 3,146,869
United States Outdoor Markets 824,730 2,250 — — (324,892) 69,844 571,932
Switzerland 56,885 — — 1,276 (7,827) — 50,334
Ireland
14,285 — — 223 (12,591) — 1,917
Baltics 10,629
—
—
—
(10,629)
—
—
Americas Outdoor – Mexico
8,729 — — 7,440 (10,085) (442) 5,642
Americas Outdoor – Chile 3,964 — — 4,417 (8,381) — —
Americas Outdoor – Peru
45,284 — — — (37,609) — 7,675
Americas Outdoor – Brazil 4,971 — — 4,436 (9,407) — —
Americas Outdoor – Canada
4,920 — — — — (4,920) —
All Others – International Outdoor 205,744 110
—
15,913 (42,717) 45,042 224,092
Other
331,290 — (2,276) — (211,988) (482) 116,544
$ 7,090,621 $ 6,878 $ (64,686) $ 33,705 $(3,097,023) $ 155,510 $ 4,125,005
(In thousands)
Pos
t
-Merger Combined
Year Ended
December 31,
2009
Year Ended
December 31,
2008
Direct operating expenses $ 89,604 $ 31,704
SG&A expenses
39,193 57,909
Corporate expenses 35,612 6,288
Total $ 164,409 $ 95,901