iHeartMedia 2006 Annual Report Download - page 47

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47
Debt Maturity
On November 1, 2006, we redeemed our 6% Senior Notes at their maturity for $750.0 million plus accrued
interest with proceeds from our bank credit facility.
On February 1, 2007, we redeemed our 3.125% Senior Notes at their maturity for $250.0 million plus accrued
interest with proceeds from our bank credit facility.
Acquisitions
Our subsidiary, Clear Channel Outdoor Holdings, Inc., or CCO, completed the acquisition of Interspace on July
1, 2006, by issuing 4.2 million shares of CCO’s Class A Common Stock and approximately $81.3 million in cash. The
acquisition was valued at approximately $170.4 million based on CCO’s common shares issued at the closing price on
the date of acquisition and the cash consideration paid. The terms of the acquisition provide for additional consideration
based on Interspace’s financial performance. As a result, we have accrued $20.9 million of additional purchase
consideration as of December 31, 2006.
We acquired radio stations for $16.4 million and a music scheduling company for $44.3 million in cash and
$10.0 million of deferred purchase consideration during the year ended December 31, 2006. We also acquired Americas
and international outdoor display faces and additional equity interests in international outdoor companies for $242.4
million in cash, which includes cash paid for Interspace. We also exchanged assets in one of our Americas outdoor
markets for assets located in a different market. In addition, our national representation firm acquired representation
contracts for $38.1 million in cash and our television business acquired a station for $21.0 million in cash.
Capital Expenditures
(In millions) Year Ended December 31, 2006 Capital Expenditures
Radio
Americas
Outdoor
International
Outdoor
Corporate and
Other
Total
Non-revenue producing $ 99.7 $ 33.7 $ 46.3 $ 16.9
$ 196.6
Revenue producing ⎯ 56.8 97.1 ⎯ 153.9
$ 99.7 $ 90.5 $ 143.4 $ 16.9 $ 350.5
We define non-revenue producing capital expenditures as those expenditures that are required on a recurring
basis. Revenue producing capital expenditures are discretionary capital investments for new revenue streams, similar to
an acquisition.
Treasury Stock Transactions
Our Board of Directors approved two separate share repurchase programs during 2004, each for $1.0 billion.
On February 1, 2005, our Board of Directors approved a third $1.0 billion share repurchase program. On August 9,
2005, our Board of Directors authorized an increase in and extension of the February 2005 program, which had $307.4
million remaining, by $692.6 million, for a total of $1.0 billion. On March 9, 2006, our Board of Directors authorized
an additional share repurchase program, permitting us to repurchase $600.0 million of our common stock. On
September 6, 2006, our Board of Directors authorized an additional share repurchase program, permitting us to
repurchase an additional $1.0 billion of our common stock. This increase expires on September 6, 2007, although the
program may be discontinued or suspended at anytime prior to its expiration. As of December 31, 2006, 130.9 million
shares had been repurchased for an aggregate purchase price of $4.3 billion, including commissions and fees, under the
share repurchase programs. We did not repurchase any shares during the fourth quarter of 2006. No additional shares
have been repurchased subsequent to December 31, 2006 as the share repurchase program has been suspended, but may
be recommenced at any time without notice subject to the terms of the Merger Agreement.
Commitments, Contingencies and Future Obligations
Commitments and Contingencies
There are various lawsuits and claims pending against us. We believe that any ultimate liability resulting from
those actions or claims will not have a material adverse effect on our results of operations, financial position or liquidity.
Although we have recorded accruals based on our current assumptions of the future liability for these lawsuits, it is
possible that future results of operations could be materially affected by changes in our assumptions or the effectiveness
of our strategies related to these proceedings. See also “Item 3. Legal Proceedings” and “Note I – Commitments and