iHeartMedia 2007 Annual Report Download - page 74

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and cash flows from these stations remain classified as discontinued operations in the Company’s consolidated financial statements as of and
for the periods ended December 31, 2007.
The following table presents the activity related to the Company’s planned divestitures of 448 non-core radio stations:
Sale of other radio stations
In addition to its non-core stations, the Company sold 5 stations in the fourth quarter of 2006 and had definitive asset purchase agreements for 8
stations at December 31, 2007.
Sale of the Television Business
On April 20, 2007, the Company entered into a definitive agreement with an affiliate (“buyer”) of Providence Equity Partners Inc.
(“Providence”) to sell its television business. Subsequently, a representative of Providence informed the Company that the buyer is considering
its options under the definitive agreement, including not closing the acquisition on the terms and conditions in the definitive agreement. The
definitive agreement is in full force and effect, has not been terminated and contains customary closing conditions. There have been no
allegations that we have breached any of the terms or conditions of the definitive agreement or that there is a failure of a condition to closing
the acquisition. On November 29, 2007, the FCC issued its initial consent order approving the assignment of our television station licenses to
the buyer.
The Company determined that each of these radio station markets and its television business represent disposal groups. Consistent with the
provisions of Statement 144, the Company classified these assets that are subject to transfer under the definitive asset purchase agreements as
discontinued operations at December 31, 2007 and 2006. Accordingly, depreciation and amortization associated with these assets was
discontinued. Additionally, the Company determined that these assets comprise operations and cash flows that can be clearly distinguished,
operationally and for financial reporting purposes, from the rest of the Company. As of December 31, 2007, the Company determined that the
estimated fair value less costs to sell attributable to these assets was in excess of the carrying value of their related net assets held for sale.
Summarized operating results for the years ended December 31, 2007, 2006 and 2005 from these businesses are as follows:
Included in income from discontinued operations, net are income tax expenses of $76.4 million, $43.8 million and $33.3 million for the years
ended December 31, 2007, 2006 and 2005, respectively. Also included in income from discontinued operations for the years ended
December 31, 2007 and 2006 are gains on the sale of certain radio stations of $144.6 million and $0.3 million, respectively.
73
Total non-core radio stations on November 16, 2006 448
Non-core radio stations sold through December 31, 2007 (160)
Non-core radio stations under definitive asset purchase agreements at December 31, 2007 (73)
Non-core radio stations not under definitive asset purchase agreements but recorded as discontinued operations at
December 31, 2007 (187)
Non-core radio stations included in continuing operations at December 31, 2007 28
Year Ended December 31,
(In thousands) 2007 2006 2005
Revenue $546,556 $641,976 $591,389
Income before income taxes $242,806 $115,346 $ 87,702