iHeartMedia 2005 Annual Report Download - page 72

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72
Summarized Financial Information
The following table summarizes the Company's investments in these nonconsolidated affiliates:
(In thousands)
ARN ACIR
Clear
Media
All
Others Total
At December 31, 2004 $136,035 $ 57,064 $ 73,234 $ 102,036 $ 368,369
Acquisition (disposition) of
investments
―
―
―
804
804
Reclassifications ― ― (84,912) ― (84,912)
Additional investment, net (14,391) ― 8,921 (935) (6,405)
Equity in net earnings (loss) 23,794 4,700 2,757 7,087 38,338
Foreign currency transaction
adjustment
5,375
―
―
―
5,375
Foreign currency translation
adjustment
(12,557)
911
―
(9,700)
(21,346)
At December 31, 2005 $138,256 $ 62,675 $ ― $ 99,292 $ 300,223
In July, 2005, the Company increased its investment in Clear Media, a Chinese company that operates street
furniture displays throughout China, to a controlling majority ownership interest. As a result, the Company began
consolidating the results of Clear Media in the third quarter of 2005. The Company had been accounting for Clear
Media as an equity investment prior to July 2005. The net assets of Clear Media represent less than 2% of the
Company’s consolidated net assets at December 31, 2005. With the exception of Clear Media, the investments in
the table above 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”. There was no other income derived from transactions with
nonconsolidated affiliates during 2005. Other income derived from transactions with nonconsolidated affiliates
consists of interest income of $3.4 million in 2004 and $6.0 million in 2003, 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 $90.1 million, $67.4 million and $51.8 million for December 31, 2005,
2004 and 2003, respectively.
Other Investments
Other investments of $324.6 million and $387.6 million at December 31, 2005 and 2004, respectively, include
marketable equity securities classified as follows:
(In thousands) Fair Unrealized
Investments Value Gains (Losses) Net Cost
2005
Available-for sale $ 251,904 $ 216,170 $ ― $ 216,170 $ 35,734
Trading 54,486 47,228 ― 47,228 7,258
Other cost investments 18,191 ― ― ― 18,191
Total $ 324,581 $ 263,398 $ ― $ 263,398 $ 61,183
(In thousands) Fair Unrealized
Investments Value Gains (Losses) Net Cost
2004
Available-for-sale $ 330,117 $ 294,383 $ — $ 294,383 $ 35,734
Trading 36,994 29,736 — 29,736 7,258
Other cost investments 20,478 — — — 20,478
Total $ 387,589 $ 324,119 $ $ 324,119 $ 63,470
A certain amount of the Company’s available-for-sale and trading securities secure its obligations under forward
exchange contracts discussed in Note H.