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IHEARTCOMMUNICATIONS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
84
(In thousands)
ARN
All
Others
Total
Balance at December 31, 2012
$
353,062
$
17,850
$
370,912
Cash advances (repayments)
-
3,051
3,051
Acquisitions of investments, net
-
1,354
1,354
Equity in loss
(75,318)
(2,378)
(77,696)
Foreign currency translation adjustment
(37,068)
4
(37,064)
Distributions received
(19,926)
(1,750)
(21,676)
Other
-
(76)
(76)
Balance at December 31, 2013
$
220,750
$
18,055
$
238,805
Cash advances (repayments)
-
3,452
3,452
Acquisitions of investments, net
-
1,811
1,811
Equity in earnings (loss)
(12,678)
3,262
(9,416)
Foreign currency transaction adjustment
1,449
77
1,526
Distributions received
(228)
(1,000)
(1,228)
Proceeds on sale
(220,783)
(15,820)
(236,603)
Other
11,490
(344)
11,146
Balance at December 31, 2014
$
-
$
9,493
$
9,493
The investments in the table above are not consolidated, but are accounted for under the equity method of accounting, whereby the
Company records its investments in these entities in the balance sheet as “Other assets.” The Company's interests in their operations
are recorded in the statement of comprehensive loss as “Equity in earnings (loss) of nonconsolidated affiliates.”
NOTE 4 – ASSET RETIREMENT OBLIGATION
The Company’s asset retirement obligation is reported in “Other long-term liabilities” with the current portion recorded in “Accrued
liabilities” and relates to its obligation to dismantle and remove outdoor advertising displays and radio broadcasting towers from
leased land and to reclaim the site to its original condition upon the termination or non-renewal of a lease or contract. When the
liability is recorded, the cost is capitalized as part of the related long-lived assets’ carrying value. Due to the high rate of lease
renewals over a long period of time, the calculation assumes that all related assets will be removed at some period over the next
50 years. An estimate of third-party cost information is used with respect to the dismantling of the structures and the reclamation of
the site. The interest rate used to calculate the present value of such costs over the retirement period is based on an estimated risk
adjusted credit rate for the same period.
The following table presents the activity related to the Company’s asset retirement obligation:
(In thousands)
Years Ended December 31,
2014
2013
Beginning balance
$
59,380
$
56,849
Adjustment due to changes in estimates
(5,391)
806
Accretion of liability
7,858
5,106
Liabilities settled
(5,802)
(3,323)
Foreign Currency
(1,834)
(58)
Ending balance
$
54,211
$
59,380