iHeartMedia 2002 Annual Report Download - page 51

Download and view the complete annual report

Please find page 51 of the 2002 iHeartMedia annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 177

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177

Investing Activities:
Net cash expenditures for investing activities of $627.2 million for the year ended December 31, 2002 principally reflect capital
expenditures of $548.6 million related to purchases of property, plant and equipment and $241.2 million primarily related to acquisitions of
operating assets. Net cash provided by investing activities of $90.3 million for the year ended December 31, 2001, reflect $920.0 million of
proceeds related to the sale of Lamar stock and $577.2 million related to the liquidation of restricted cash associated with our divestitures of
radio properties. This was partially offset by cash and restricted cash expenditures of $666.6 million and $367.5 million, respectively, relating
to acquisitions of radio, outdoor and entertainment assets. This was also offset by $598.4 million of capital expenditures related to purchases of
property, plant and equipment.
Financing Activities:
Financing activities for the year ended December 31, 2002 principally reflect the net reduction in debt of $1.2 billion and proceeds of
$75.3 million related to the exercise of stock options and warrants. Financing activities for the year ended December 31, 2001 reflect a net
reduction in debt of $1.0 billion, proceeds from a forward exchange contract, as well as proceeds related to the exercise of stock options and
warrants.
We expect to fund anticipated cash requirements (including acquisitions, anticipated capital expenditures, share repurchases, payments of
principal and interest on outstanding indebtedness and commitments) with cash flows from operations and various externally generated funds.
Sources of Capital
As of December 31, 2002 and 2001 we had the following debt outstanding and cash and cash equivalents:
(In millions)
Domestic Credit Facilities
We currently have three separate domestic credit facilities. These provide cash for both working capital needs as well as to fund certain
acquisitions and refinancing of certain public debt securities.
The first credit facility is a reducing revolving credit facility, originally in the amount of $2.0 billion. At December 31, 2002, $555.0 million
was outstanding and $832.5 million was available for future borrowings. This credit facility began reducing on September 30, 2000, with
December 31,
2002 2001
Credit facilities –domestic $2,056.6 $1,419.3
Credit facility –international 95.7 94.4
Senior convertible notes 517.6 1,575.0
Liquid Yield Option Notes (a) 252.1 244.4
Long-term bonds (b) 5,655.9 5,966.8
Other borrowings 200.7 183.0
TotalDebt(c) 8,778.6 9,482.9
Less: Cash and cash equivalents 170.1 154.7
$8,608.5 $9,328.2
(a) Includes $42.1 million and $43.9 million in unamortized fair value purchase accounting adjustment premiums related to the merger with
Jacor Communications, Inc. at December 31, 2002 and 2001, respectively.
(b) Includes $44.6 million and $66.5 million in unamortized fair value purchase accounting adjustment premiums related to the merger with
AMFM at December 31, 2002 and 2001, respectively. Also includes $119.8 million and $106.6 million related to fair value adjustments
for interest rate swap agreements at December 31, 2002 and 2001, respectively.
(c) Total face value of outstanding debt was $8.7 billion and $9.4 billion at December 31, 2002 and 2001, respectively.