iHeartMedia 2003 Annual Report Download - page 43

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principally reflects a net loss of $16.1 billion adjusted for non-cash charges of $16.8 billion for the adoption of Statement 142 and depreciation
and amortization of $620.8 million. Cash flow from operations was positively impacted by our utilization of tax net operating loss
carryforwards, which reduced our cash taxes by approximately $152.0 million. Cash flow from operations also reflects increases in deferred
income, accounts payable and other accrued expenses partially offset by an increase in receivables and prepaids.
Investing Activities:
Net cash expenditures for investing activities of $93.3 million for the year ended December 31, 2003 principally reflect capital expenditures
of $378.0 million related to purchases of property, plant and equipment and $105.4 million primarily related to acquisitions of operating assets,
partially offset by proceeds from the sale of investments, primarily Univision Corporation, of $344.2 million. 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.
Financing Activities:
Financing activities for the year ended December 31, 2003 principally reflect the net reduction in debt of $1.8 billion, proceeds from
extinguishment of a derivative agreement of $83.8 million, proceeds from a secured forward exchange contract of $83.5 million, proceeds of
$55.6 million related to the exercise of stock options, all partially offset by $61.6 million in dividend payments. 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.
We expect to fund anticipated cash requirements (including payments of principal and interest on outstanding indebtedness and
commitments, acquisitions, anticipated capital expenditures, share repurchases and dividends) for the foreseeable future with cash flows from
operations and various externally generated funds.
Sources of Capital
As of December 31, 2003 and 2002, we had the following debt outstanding and cash and cash equivalents:
43
(In millions)
December 31,
2003 2002
Credit facilities — domestic $660.5 $2,056.6
Credit facility — international 50.1 95.7
Senior convertible notes —517.6
LiquidYieldOptionNotes(a)
—
252.1
Long-term bonds (b) 6,159.4 5,655.9
Other borrowings 195.0 200.7
TotalDebt(c) 7,065.0 8,778.6
Less: Cash and cash equivalents 123.3 170.1
$6,941.7 $8,608.5
(a) Includes $42.1 million in unamortized fair value purchase accounting adjustment premiums related to the merger with Jacor
Communications, Inc. at December 31, 2002.
(b) Includes $16.8 million and $44.6 million in unamortized fair value purchase accounting adjustment premiums related to the merger with
AMFM at December 31, 2003 and 2002, respectively. Also includes $7.0 million and $119.8 million related to fair value adjustments for
interest rate swap agreements at December 31, 2003 and 2002, respectively.
(c) Total face value of outstanding debt was $7.0 billion and $8.7 billion at December 31, 2003 and 2002, respectively.