iHeartMedia 2006 Annual Report Download - page 38

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38
Reconciliation of Segment Operating Income (Loss)
(In thousands) Years Ended December 31,
2006 2005
Radio Broadcasting $ 1,280,215 $ 1,197,361
Americas Outdoor Advertising 420,695 359,248
International Outdoor Advertising 67,460 22,936
Other 65,389 30,694
Gain on disposition of assets - net 69,330 51,355
Merger expenses (7,633) ―
Corporate (221,339) (190,401)
Consolidated operating income $ 1,674,117 $ 1,471,193
Fiscal Year 2005 Compared to Fiscal Year 2004
Consolidated
(In thousands) Years Ended December 31, % Change
2005 2004 2005 v. 2004
Revenue $ 6,578,805 $ 6,600,954 0%
Operating expenses:
Direct operating expenses (excludes depreciation and amortization) 2,457,044 2,321,459 6%
Selling, general and administrative expenses (excludes depreciation
and amortization) 1,902,837 1,894,550 0%
Depreciation and amortization 628,010 627,924 0%
Corporate expenses (excludes depreciation and amortization) 171,076 167,388 2%
Gain on disposition of assets - net 51,355 39,576 30%
Operating income 1,471,193 1,629,209 (10%)
Interest expense 443,245 367,503
Gain (loss) on marketable securities (702) 46,271
Equity in earnings of nonconsolidated affiliates 38,338 22,285
Other income (expense) - net 11,267 (30,293)
Income before income taxes, minority interest expense, discontinued
operations and cumulative effect of a change in accounting
principle 1,076,851
1,299,969
Income tax benefit (expense):
Current (43,616)
(367,599)
Deferred (381,740) (130,314)
Income tax benefit (expense) (425,356) (497,913)
Minority interest expense, net of tax 17,847 7,602
Income before discontinued operations and cumulative effect of a
change in accounting principle 633,648
794,454
Income from discontinued operations, net 302,014 51,345
Cumulative effect of a change in accounting principle, net of tax of
$2,959,003 ―
(4,883,968)
Net income (loss) $ 935,662 $ (4,038,169)
Revenue
Consolidated revenues decreased $22.1 million in 2005 as compared to 2004. Our radio broadcasting segment
declined approximately $217.9 million primarily from a decline in the number of commercial minutes broadcast on our
radio stations as part of our Less Is More initiative. Our television revenues declined approximately $14.7 million
primarily as a result of local and national political advertising revenues in 2004 that did not recur in 2005. Partially
offsetting this decline was an increase of $124.3 million and $94.7 million from our Americas and international outdoor
advertising segments, respectively. Americas outdoor revenue growth was driven primarily from rate increases on our
bulletin and poster inventory while international outdoor revenue growth occurred from improved yield on our street
furniture inventory. Foreign exchange fluctuations did not have a material impact to our revenue decline for 2005