iHeartMedia 2004 Annual Report Download - page 76
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Grupo ACIR Comunicaciones
The Company owns a forty-percent (40%) interest in Grupo ACIR Comunicaciones (“ACIR”), a Mexican radio broadcasting company. ACIR
owns and operates radio stations throughout Mexico.
Clear Media
The Company owns 48.1% of the total number of shares of Hainan White Horse Advertising Media Investment Co. Ltd. (“Clear Media”),
formerly known as White Horse, a Chinese company that operates street furniture displays throughout China. At December 31, 2004, the fair
market value of the Company’s shares of Clear Media was $231.3 million.
Summarized Financial Information
The following table summarizes the Company’s investments in these nonconsolidated affiliates:
The above investments are not consolidated, but are accounted for under the equity method of accounting, whereby the Company records its
investments in these entities in the balance sheet as “Investments in, and advances to, nonconsolidated affiliates.” The Company’s interests in
their operations are recorded in the statement of operations as “Equity in earnings of nonconsolidated affiliates”. Other income derived from
transactions with nonconsolidated affiliates consists of interest income of $3.4 million in 2004, $6.0 million in 2003 and $5.1 million in 2002,
and are recorded in the statement of operations as “Equity in earnings of nonconsolidated affiliates.” Accumulated undistributed earnings
included in retained deficit for these investments were $108.7 million, $83.5 million and $67.5 million for December 31, 2004, 2003 and 2002,
respectively.
The Company conducts business with certain of its equity method investees in the ordinary course of business. Transactions relate to venue
rentals, management fees, sponsorship revenue, and reimbursement of certain costs. Payments of $3.3 million and $3.9 million were made in
2004 and 2003, respectively, and payments of $4.6 million and $6.6 million were received in 2004 and 2003, respectively, from these equity
investees for services rendered for these business ventures. It is the Company’s opinion, that these transactions were recorded at fair value.
73
Clear All
(In thousands) ARN ACIR Media Others Total
At December 31, 2003 $123,197 $54,256 $77,257 $98,422 $353,132
Acquisition (disposition) of investments
—
—
—
1,678 1,678
Transfers (to) from cost investments and other reclasses
—
—
—
494 494
Additional investment, net (13,687)
—
—
10,777 (2,910)
Equity in net earnings (loss) 19,697 2,664 (3,990)6,820 25,191
Foreign currency transaction adjustment (197)
—
—
—
(197)
Foreign currency translation adjustment 7,025 144 (33)10,847 17,983
At December 31, 2004 $136,035 $57,064 $73,234 $129,038 $395,371