iHeartMedia 2006 Annual Report Download - page 73

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73
In addition to the AMFM and Ackerley restructurings, the Company restructured its outdoor operations in France in
the third quarter of 2005. As a result, the Company recorded $26.6 million in restructuring costs as a component of
selling, general and administrative expenses. Of the $26.6 million, $22.5 million was related to severance costs and
$4.1 million was related to other costs. During 2006, $11.8 million of related costs were paid and charged to the
restructuring accrual. As of December 31, 2006, the accrual balance was $11.0 million.
NOTE E – INVESTMENTS
The Company’s most significant investments in nonconsolidated affiliates are listed below:
Australian Radio Network
The Company owns a fifty-percent (50%) interest in Australian Radio Network (“ARN”), an Australian company
that owns and operates radio stations in Australia and New Zealand.
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.
Summarized Financial Information
The following table summarizes the Company's investments in these nonconsolidated affiliates:
(In thousands)
ARN ACIR
All
Others Total
At December 31, 2005 $138,256 $ 62,675 $ 99,292 $ 300,223
Acquisition (disposition) of
investments
―
―
2,408
2,408
Other, net (14,878) ― (5,477) (20,355)
Equity in net earnings (loss) 24,520 5,865 7,093 37,478
Foreign currency transaction
adjustment
(1,170)
―
―
(1,170)
Foreign currency translation
adjustment
(1,082)
(280)
(2,575)
(3,937)
At December 31, 2006 $145,646 $ 68,260 $ 100,741 $ 314,647
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 interest income derived
from transactions with nonconsolidated affiliates of $3.4 million in 2004 recorded in the statement of operations as
“Equity in earnings of nonconsolidated affiliates.” Accumulated undistributed earnings included in retained deficit
for these investments were $112.6 million, $90.1 million and $67.4 million for December 31, 2006, 2005 and 2004,
respectively.