iHeartMedia 2014 Annual Report Download - page 51

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The following table reflects a reconciliation of consolidated EBITDA (as defined by our senior secured credit facilities) to operating
income and net cash provided by operating activities for the year ended December 31, 2014:
Year Ended
(In Millions)
December 31, 2014
Consolidated EBITDA (as defined by our senior secured credit facilities)
$
1,942.2
Less adjustments to consolidated EBITDA (as defined by our senior secured credit facilities):
Costs incurred in connection with the closure and/or consolidation of facilities, retention charges,
consulting fees, and other permitted activities
(75.7)
Extraordinary, non-recurring or unusual gains or losses or expenses and severance (as referenced in the
definition of consolidated EBITDA in our senior secured credit facilities)
(31.6)
Non-cash charges
(35.8)
Cash received from nonconsolidated affiliates
(1.2)
Other items
(10.5)
Less: Depreciation and amortization, Impairment charges, Other operating income (expense), net,
and Share-based compensation expense
(705.8)
Operating income
1,081.6
Plus: Depreciation and amortization, Impairment charges, Gain (loss) on disposal of operating and fixed assets,
and Share-based compensation expense
701.3
Less: Interest expense
(1,741.6)
Less: Current income tax expense
(24.6)
Plus: Other income (expense), net
9.1
Adjustments to reconcile consolidated net loss to net cash provided by operating activities (including
Provision for doubtful accounts, Amortization of deferred financing charges and note discounts, net
and Other reconciling items, net)
89.6
Change in assets and liabilities, net of assets acquired and liabilities assumed
129.7
Net cash provided by operating activities
$
245.1
The maximum ratio under this financial covenant is currently set at 8.75:1. At December 31, 2014, the ratio was 6.3:1.
In addition, the senior secured credit facilities include negative covenants that, subject to significant exceptions, limit our
ability and the ability of its restricted subsidiaries to, among other things:
incur additional indebtedness;
create liens on assets;
engage in mergers, consolidations, liquidations and dissolutions;
sell assets;
pay dividends and distributions or repurchase our capital stock;
make investments, loans, or advances;
prepay certain junior indebtedness;
engage in certain transactions with affiliates;
amend material agreements governing certain junior indebtedness; and
change lines of business.
The senior secured credit facilities include certain customary representations and warranties, affirmative covenants and
events of default, including payment defaults, breach of representations and warranties, covenant defaults, cross-defaults to certain
indebtedness, certain events of bankruptcy, certain events under ERISA, material judgments, the invalidity of material provisions of
the senior secured credit facilities documentation, the failure of collateral under the security documents for the senior secured credit
facilities, the failure of the senior secured credit facilities to be senior debt under the subordination provisions of certain of our
subordinated debt and a change of control. If an event of default occurs, the lenders under the senior secured credit facilities will be