iHeartMedia 2004 Annual Report Download - page 46

Divisional operating expenses increased $166.2 million in 2003 compared to 2002. Approximately $81.3 million of the increase is the result
of foreign exchange. The remaining increase primarily relates to variable costs associated with the mix of events in 2003 as compared to 2002.
Reconciliation of Segment Operating Income (Loss)
LIQUIDITY AND CAPITAL RESOURCES
Cash Flow
Operating Activities
Net cash flow from operating activities of $1.8 billion for the year ended December 31, 2004 principally reflects a net loss of $4.0 billion,
adjusted for non-cash charges of $4.9 billion for the adoption of Topic D-108 and depreciation and amortization of $694.0 million. Net cash
flow from operating activities was negatively impacted during the year ended December 31, 2004 by $150.0 million, primarily related to the
taxes paid on the gain from the sale of our remaining shares of Univision, which was partially offset by the tax loss related to the partial
redemption of our Euro denominated debt. Net cash flow from operating activities also reflects increases in prepaid expenses, accounts payable
and accrued interest, income taxes and other expenses, partially offset by decreases in accounts receivables and other current assets. Net cash
flow from operating activities of $1.7 billion for the year ended December 31, 2003 principally reflects net income of $1.1 billion plus
depreciation and amortization of $671.3 million. Net cash flow from operating activities also reflects increases in accounts receivables,
accounts payable and other accrued expenses and income taxes.
Investing Activities
Net cash provided by investing activities of $74.8 million for the year ended December 31, 2004 principally includes proceeds of
$627.5 million related to the sale of investments, primarily the sale of our Univision shares. These proceeds were partially offset by capital
expenditures of $357.2 million related to purchases of property, plant and equipment and $229.0 million related to acquisitions of operating
assets. 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 shares, of $344.2 million.
Financing Activities
Financing activities for the year ended December 31, 2004 principally reflect payments for share repurchases of $1.8 billion and dividends
paid of $255.9 million, partially offset by the net increase in debt of $262.3 million. 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.
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.
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Years Ended December 31,
(In thousands) 2003 2002
Radio Broadcasting $1,409,236 $1,432,763
Outdoor Advertising 201,221 168,656
Live Entertainmen
t
130,232 96,130
Other 51,131 70,704
Corporate (200,287)(202,531)
Consolidated Operating Income $ 1,591,533 $ 1,565,722