iHeartMedia 2001 Annual Report Download - page 79

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79
The pro forma information above is presented in response to applicable accounting rules relating to
business acquisitions and is not necessarily indicative of the actual results that would have been achieved
had these acquisitions occurred at the beginning of 1999, nor is it indicative of future results of
operations. The Company made other acquisitions during 2001, 2000 and 1999, the effects of which,
individually and in aggregate, were not material to the Company’s consolidated financial position or
results of operations.
The following is a summary of the assets and liabilities acquired and the consideration given for
acquisitions:
(In thousands)
2001 2000
Property, plant and equipment $ 149,151 $ 1,703,871
Accounts receivable 24,250 826,426
Goodwill and FCC licenses 960,259 29,705,197
Investments 25,029 1,316,241
Other assets 8,484 1,611,208
1,167,173 35,162,943
Long-term debt (11,316) (4,999,900)
Other liabilities (98,897) (2,016,676)
Deferred tax (4,640) (5,223,905)
SFX shares held prior to merger (84,881)
Common stock issued (18,234) (20,283,157)
(133,087) (32,608,519)
Total cash consideration 1,034,086 2,554,424
Less: Restricted cash used (367,519) (670,228)
Cash paid for acquisitions $ 666,567 $ 1,884,196
Restructuring
In connection with the Company’s mergers with SFX Entertainment, Inc. (“SFX”) and AMFM Inc.
(“AMFM”), the Company restructured the SFX and AMFM operations. The AMFM corporate offices in
Dallas and Austin, Texas were closed on March 31, 2001 and a portion of the SFX corporate office in
New York was closed on June 30, 2001. Other operations of AMFM have either been discontinued or
integrated into existing similar operations. As of December 31, 2001, the restructuring has resulted in
the actual termination of approximately 600 employees and the pending termination of approximately 50
more employees. The Company has recorded a liability in purchase accounting primarily related to
severance for terminated employees and lease terminations as follows:
(In thousands)
December 31,
2001 2000
Severance and lease termination costs:
Accrual at January 1 $ 84,291 $ 4,348
Adjustments to restructuring accrual 41,624 120,797
Payments charged against restructuring accrual (72,733) (40,854)
Remaining severance and lease termination accrual $ 53,182 $ 84,291