iHeartMedia 2009 Annual Report Download - page 69

Dividends
We have not paid cash dividends on our common stock since the merger and our ability to pay dividends is subject to
restrictions should we seek to do so in the future. Our debt financing arrangements include restrictions on our ability to pay dividends,
which in turn affects our ability to pay dividends.
Prior to the merger, we declared a $93.4 million dividend on December 3, 2007 payable to shareholders of record on
December 31, 2007 and paid on January 15, 2008.
Capital Expenditures
Capital expenditures were $223.8 million in the year ended December 31, 2009. Capital expenditures on a combined basis
for the year ended December 31, 2008 were $430.5 million.
Acquisitions
During 2009, our Americas outdoor segment paid $5.0 million primarily for the acquisition of land and buildings.
We acquired FCC licenses in our radio segment for $11.7 million in cash during 2008. We acquired outdoor display faces
and additional equity interests in international outdoor companies for $96.5 million in cash during 2008. Our national representation
business acquired representation contracts valued at $68.9 million during 2008.
Purchases of Additional Equity Interests
During 2009, our Americas outdoor segment purchased the remaining 15% interest in our consolidated subsidiary, Paneles
Napsa S.A., for $13.0 million and our International outdoor segment acquired an additional 5% interest in our consolidated
subsidiary, Clear Channel Jolly Pubblicita SPA, for $12.1 million.
Certain Relationships with the Sponsors
We are party to a management agreement with certain affiliates of the Sponsors and certain other parties pursuant to which
such affiliates of the Sponsors will provide management and financial advisory services until 2018. These arrangements require
management fees to be paid to such affiliates of the Sponsors for such services at a rate not greater than $15.0 million per year plus
expenses. During the year ended December 31, 2009, we recognized management fees of $15.0 million. For the post-merger period of
2008, we recognized Sponsors’ management fees of $6.3 million.
In addition, we reimbursed the Sponsors for additional expenses in the amount of $5.5 million for the year ended
December 31, 2009.
In connection with the merger, CCMH paid certain affiliates of the Sponsors $87.5 million in fees and expenses for
financial and structural advice and analysis, assistance with due diligence investigations and debt financing negotiations and $15.9
million for reimbursement of escrow and other out-of-pocket expenses. This amount was allocated between merger expenses,
deferred loan costs or included in the overall purchase price of the merger.
Commitments, Contingencies and Guarantees
We are currently involved in certain legal proceedings. Based on current assumptions, we have accrued an estimate of the
probable costs for the resolution of these claims. Future results of operations could be materially affected by changes in these
assumptions.
65
(In millions)
Year Ended December 31, 2009
Radio
Americas
Outdoor
Advertising
International
Outdoor
Advertising
Corporate and
Other
Total
Non-revenue producing $ 41.9 $ 23.3 $ 23.8 $ 6.0 $ 95.0
Revenue producing
—
61.1 67.7
—
128.8
$ 41.9 $ 84.4 $ 91.5 $ 6.0 $ 223.8