iHeartMedia 2002 Annual Report Download - page 57

loss carryforward, and (3) $23.0 million deferred tax expense associated with the extinguishment of debt and the sale of a television license.
Other
During the year ended December 31, 2002, we made payments of approximately $54.1 million as compared to $229.0 million in 2001
related to severance and other merger related accruals.
Pending Transaction
On June 12, 2002, Univision Communications, Inc., a Spanish language television group, announced that it would acquire Hispanic
Broadcasting in a stock for stock merger. Pursuant to the terms of the merger agreement, each share of Hispanic will be exchanged for .85
shares of Univision. As we currently own 26% of Hispanic, we account for this investment using the equity method of accounting. Once this
merger is completed, we will own less than 20% of the combined company. As a result, we will no longer account for this investment using the
equity method of accounting, but instead will account for this investment as a cost investment. Upon the consummation of this merger, we will
carry this investment at its fair market value. Assuming a market price of $24.00 per Univision share on the date of this merger, we would
record a pre-tax gain of approximately $400.0 million. The merger is subject to approval by the FCC.
Commitments and Contingencies
We were among the defendants in a lawsuit filed on June 12, 2002 in the United States District Court for the Southern District of Florida by
Spanish Broadcasting System. The plaintiffs alleged that we were in violation of Section One and Section Two of the Sherman Antitrust Act as
well as various claims such as unfair trade practices, defamation among other counts. This case was dismissed with prejudice on January 31,
2003. The plaintiffs have filed with the court for reconsideration.
There are various other lawsuits and claims pending against us. We believe that any ultimate liability resulting from those actions or claims
will not have a material adverse effect on our results of operations, financial position or liquidity.
Certain agreements relating to acquisitions provide for purchase price adjustments and other future contingent payments based on the
financial performance of the acquired companies generally over a one to five year period. We will continue to accrue additional amounts
related to such contingent payments if and when it is determinable that the applicable financial performance targets will be met. The aggregate
of these contingent payments, if performance targets are met, would not significantly impact our financial position or results of operations.
Future Obligations
In addition to our scheduled maturities on our debt, we have future cash obligations under various types of contracts. We lease office space,
certain broadcast facilities, equipment and the majority of the land occupied by our outdoor advertising structures under long-term operating
leases. In addition, we have minimum franchise payments associated with non-cancelable contracts that enable us to display advertising on
such media as buses, taxis, trains, bus shelters and terminals as well as other contracts. Finally, we have commitments relating to required
purchases of property, plant and equipment under certain street furniture contracts, as well as construction commitments for facilities and
venues.
The scheduled maturities of our credit facilities, other long-term debt outstanding, future minimum rental commitments under non-
cancelable operating lease agreements, minimum rental payments under non-cancelable contracts and capital expenditure commitments at
December 31, 2002 are as follows:
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