iHeartMedia 2000 Annual Report Download - page 65

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65
debt. Included in the Jacor assets acquired is $83.0 million of restricted cash related to the disposition of
Jacor assets in connection with the merger. This merger has been accounted for as a purchase with
resulting goodwill of approximately $3.1 billion, which is being amortized over 25 years on a straight-line
basis. The results of operations of Jacor have been included in the Company’ s financial statements
beginning May 4, 1999.
In order to comply with governmental directives regarding the Jacor merger, the Company divested
certain assets valued at $205.8 million and swapped other assets valued at $35.0 million in transactions
with various third parties, resulting in a gain on sale of assets related to mergers of $138.7 million and an
increase in income tax expense (at the Company’ s statutory rate of 38%) of $52.0 million during 1999.
The Company deferred the majority of this tax expense based on its replacing the stations sold with
qualified assets. The proceeds from divestitures were held in restricted trusts until the replacement
properties were purchased.
The following table details the reconciliation of divestiture and acquisition activity in the restricted trust
accounts:
(In thousands)
Restricted cash resulting from Clear Channel divestitures $205,800
Restricted cash purchased in Jacor Merger 83,000
Restricted cash used in acquisitions (246,228)
Restricted cash refunded (41,451)
Other changes to restricted cash 3,228
Restricted cash balance at December 31, 1999 $ 4,349
During 2000, this restricted trust expired and the residual balance was refunded to the Company.
Other
Also during 1999, the Company acquired substantially all of the assets of nine radio stations in six
domestic markets, 2,789 outdoor display faces in 29 domestic markets and in malls throughout the U.S.
and 72,326 outdoor display faces in eight international markets. The aggregate cash paid for these
acquisitions was approximately $739.3 million.
The results of operations for 1999 and 1998 include the operations of each station, for which the
Company purchased the license, as well as all other businesses acquired, from the respective date of
acquisition. Unaudited pro forma consolidated results of operations, assuming the acquisitions of
Dauphin, Dame and Jacor as well as significant acquisitions from 1998 had occurred at January 1, 1998,
would have been as follows: