iHeartMedia 2007 Annual Report Download - page 79

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Summarized Financial Information
The following table summarizes the Company’s investments in these nonconsolidated affiliates:
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”. Accumulated
undistributed earnings included in retained deficit for these investments were $133.6 million, $112.8 million and $90.1 million for
December 31, 2007, 2006 and 2005, respectively.
Other Investments
Other investments of $237.6 million and $245.0 million at December 31, 2007 and 2006, respectively, include marketable equity securities and
other investments classified as follows:
(In thousands)
A certain amount of the Company’s trading securities secure its obligations under forward exchange contracts discussed in Note H.
The accumulated net unrealized gain on available-for-sale securities, net of tax, of $69.4 million and $79.5 million were recorded in
shareholders’ equity in “Accumulated other comprehensive income” at December 31, 2007 and 2006, respectively. The net unrealized gain
(loss) on trading securities of $10.7 million and $20.5 million for the years ended December 31, 2007 and 2006, respectively, is recorded on the
statement of operations in “Gain (loss) on marketable securities”. Other cost investments include various investments in companies for which
there is no readily determinable market value.
78
All
(In thousands) ARN ACIR Others Total
At December 31, 2006 $145,646 $68,260 $ 97,352 $311,258
Acquisition (disposition) of investments, ne
t
—
— (46) (46)
Other, ne
t
(22,259) — 2,861 (19,398)
Equity in net earnings (loss) 25,832 4,942 4,402 35,176
Foreign currency transaction adjustment (2,082) — — (2,082)
Foreign currency translation adjustment 18,337 (297) 3,439 21,479
At December 31, 2007 $165,474 $72,905 $108,008 $346,387
Fair
Unrealized
Investments Value Gains (Losses) Net Cost
2007
Available-for sale $140,731 $104,996 $ — $104,996 $35,735
Trading 85,649 78,391 — 78,391 7,258
Other cost investments 11,218
—
—
—
11,218
Total $237,598 $183,387 $ — $183,387 $54,211
2006
Available-for sale $154,297 $118,563 $ — $118,563 $35,734
Trading 74,953 67,695 — 67,695 7,258
Other cost investments 15,730
—
—
—
15,730
Total $244,980 $186,258 $ — $186,258 $58,722