iHeartMedia 2009 Annual Report Download - page 136

NOTE N - EMPLOYEE STOCK AND SAVINGS PLANS
The Company has various 401(k) savings and other plans for the purpose of providing retirement benefits for substantially all
employees. Under these plans, an employee can make pre-tax contributions and Clear Channel will match a portion of such an
employee’s contribution. Employees vest in these Clear Channel matching contributions based upon their years of service to the
Company. Contributions from continuing operations to these plans of $23.0 million for the year ended December 31, 2009, $12.4
million for the post-merger period ended December 31, 2008 and $17.9 million for the pre-merger period ended July 30, 2008, were
charged to expense. Contributions from continuing operations to these plans of $39.1 million were charged to expense for the year
ended December 31, 2007. As of April 30, 2009, Clear Channel suspended the matching contribution.
Clear Channel sponsored a non-qualified employee stock purchase plan for all eligible employees. Under the plan, employees were
provided with the opportunity to purchase shares of the Clear Channel’s common stock at 95% of the market value on the day of
purchase. During each calendar year, employees were able to purchase shares having a value not exceeding 10% of their annual gross
compensation or $25,000, whichever was lower. The Company stopped accepting contributions to this plan, effective January 1,
2007, as a condition of its Merger Agreement. Clear Channel terminated this plan upon the closing of the merger and each share held
under the plan was converted into the right to receive a cash payment equal to the value of $36.00 per share.
Clear Channel offered a non-qualified deferred compensation plan for its highly compensated executives, under which such
executives were able to make an annual election to defer up to 50% of their annual salary and up to 80% of their bonus before taxes.
Clear Channel accounted for the plan in accordance with the provisions of ASC 710-10, Compensation—General. Clear Channel
terminated this plan upon the closing of the merger and the related asset and liability of approximately $38.4 million were settled.
Clear Channel offers a non-qualified deferred compensation plan for its highly compensated executives, under which such executives
are able to make an annual election to defer up to 50% of their annual salary and up to 80% of their bonus before taxes. The Company
accounts for the plan in accordance with the provisions of ASC 710-10. Matching credits on amounts deferred may be made in Clear
Channel’s sole discretion and Clear Channel retains ownership of all assets until distributed. Participants in the plan have the
opportunity to allocate their deferrals and any Clear Channel matching credits among different investment options, the performance o
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which is used to determine the amounts to be paid to participants under the plan. In accordance with the provisions of ASC 710-10,
the assets and liabilities of the non-qualified deferred compensation plan are presented in “Other assets” and “Other long-term
liabilities” in the accompanying consolidated balance sheets, respectively. The asset and liability under the deferred compensation
plan at December 31, 2009 was approximately $9.9 million recorded in “Other assets” and $9.9 million recorded in “Other long-term
liabilities”, respectively. The asset and liability under the deferred compensation plan at December 31, 2008 were approximately $2.5
million recorded in “Other assets” and $2.5 million recorded in “Other long-term liabilities”, respectively.
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