iHeartMedia 2003 Annual Report Download - page 26

We own or have permanent easements on relatively few parcels of real property that serve as the sites for our outdoor displays. Our
remaining outdoor display sites are leased. Our leases are for varying terms ranging from month-to-month to year-to-year and can be for terms
of ten years or longer, and many provide for renewal options. There is no significant concentration of displays under any one lease or subject to
negotiation with any one landlord. We believe that an important part of our management activity is to negotiate suitable lease renewals and
extensions.
Live Entertainment
The international headquarters of our live entertainment operations is in 191,383 square feet of leased office space in New York City,
New York. The lease on this premises expires in September 2020. Several members of the live entertainment senior management team as well
as other live entertainment operations are located in 95,165 square feet of leased office space in Houston, Texas. The lease on this premises
expires in March 2009. The types of properties required to support each of our live entertainment operations include offices and venues. Our
live entertainment venues generally include offices and are located in major metropolitan areas.
The studios and offices of our radio stations, outdoor advertising branches and live entertainment venues are located in leased or owned
facilities. These leases generally have expiration dates that range from one to twenty years. We either own or lease our transmitter and antenna
sites. These leases generally have expiration dates that range from five to fifteen years. We do not anticipate any difficulties in renewing those
leases that expire within the next several years or in leasing other space, if required. We own substantially all of the equipment used in our
radio broadcasting, outdoor advertising and live entertainment businesses.
As noted in Item 1 above, as of December 31, 2003, we owned or programmed 1,182 radio stations, owned or leased 787,575 outdoor
advertising display faces and owned or operated 103 entertainment venues in various markets throughout the world. See “Business —
Operating Segments.” Therefore, no one property is material to our overall operations. We believe that our properties are in good condition and
suitable for our operations.
ITEM 3. Legal Proceedings
At the Senate Judiciary Committee hearing on July 24, 2003, an Assistant United States Attorney General announced that the Department of
Justice (the “DOJ”), is pursuing two separate antitrust inquiries concerning us. One inquiry is whether we have violated antitrust laws in one of
our radio markets. The other is whether we have limited airplay of artists who do not use our concert services in violation of antitrust laws. We
are cooperating fully with all DOJ requests.
On September 9, 2003, the Assistant United States Attorney for the Eastern District of Missouri caused a Subpoena to Testify before Grand
Jury to be issued to us. The Subpoena requires us to produce certain information regarding commercial advertising run by us on behalf of
offshore and/or online (Internet) gambling businesses, including sports bookmaking and casino-style gambling. We are cooperating with such
requirements.
We are 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 allege that we are in violation of Section One and Section Two of the Sherman Antitrust Act as
well as various other claims, such as unfair trade practices and defamation, among other counts. This case was dismissed with prejudice on
January 31, 2003. The plaintiffs filed an appeal with the 11th Circuit Court of Appeals and oral argument was held in the case in February
2004. A decision has not yet been issued.
We are currently involved in certain legal proceedings and, as required, have accrued our estimate of the probable costs for the resolution of
these claims. These estimates have been developed in consultation with counsel and are based upon an analysis of potential results, assuming a
combination of litigation and settlement strategies. It is possible, however, that future results of operations for any particular period could be
materially affected by changes in our assumptions or the effectiveness of our strategies related to these proceedings.
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