iHeartMedia 2009 Annual Report Download - page 70

Certain agreements relating to acquisitions provide for purchase price adjustments and other future contingent payments
based on the financial performance of the acquired companies generally over a one to five-year period. The aggregate of these
contingent payments, if performance targets are met, would not significantly impact our financial position or results of operations.
In addition to our scheduled maturities on our debt, we have future cash obligations under various types of contracts. We
lease office space, certain broadcast facilities, equipment and the majority of the land occupied by our outdoor advertising structures
under long-term operating leases. Some of our lease agreements contain renewal options and annual rental escalation clauses
(generally tied to the consumer price index), as well as provisions for our payment of utilities and maintenance.
We have minimum franchise payments associated with non-cancelable contracts that enable us to display advertising on
such media as buses, taxis, trains, bus shelters and terminals. The majority of these contracts contain rent provisions that are
calculated as the greater of a percentage of the relevant advertising revenue or a specified guaranteed minimum annual payment.
Also, we have non-cancelable contracts in our radio broadcasting operations related to program rights and music license fees.
In the normal course of business, our broadcasting operations have minimum future payments associated with employee
and talent contracts. These contracts typically contain cancellation provisions that allow us to cancel the contract with good cause.
The scheduled maturities of our senior secured credit facilities, receivables based facility, senior cash pay and senior toggle
notes, other long-term debt outstanding, future minimum rental commitments under non-cancelable lease agreements, minimum
payments under other non-cancelable contracts, payments under employment/talent contracts, capital expenditure commitments, and
other long-term obligations as of December 31, 2009 are as follows:
66
(In thousands)
Payments due by Period
Contractual Obligations Total 2010 2011-2012 2013-2014 Thereafter
Long-term Deb
t
Senior Secured Deb
t
$13,928,111 $
—
$26,095 $3,315,026 $10,586,990
Senior Cash Pay and Senior Toggle Notes 1,711,450
—
—
—
1,711,450
Clear Channel Senior Notes
3,267,549 356,156 1,082,829 853,564 975,000
Subsidiary Senior Notes 2,500,000
—
—
—
2,500,000
Other Long-term Deb
t
82,882 47,077 31,769 4,036
—
Interest payments on long-term debt 7,270,202 1,152,658 2,033,704 2,334,780 1,749,060
Non-Cancelable Operating Leases
2,649,573 367,524 588,254 468,144 1,225,651
Non-Cancelable Contracts 2,294,611 541,683 748,929 423,184 580,815
Employment/Talent Contracts
458,903 168,505 179,442 55,689 55,267
Capital Expenditures 136,262 67,372 45,638 19,837 3,415
Other long-term obligations
152,499 1,224 13,077 3,448 134,750
Total $34,452,042 $2,702,199 $4,749,737 $7,477,708 $19,522,398
(1) On January 15, 2009, we made a permitted election under the indenture governing the senior toggle notes to pay PIK Interest
with respect to 100% of the senior toggle notes for the semi-annual interest period commencing February 1, 2009. For
subsequent interest periods, we must make an election regarding whether the applicable interest payment on the senior toggle
notes will be made entirely in cash, entirely through PIK Interest or 50% in cash and 50% in PIK Interest. In the absence of such
an election for any interest period, interest on the senior toggle notes will be payable according to the election for the
immediately preceding interest period. As a result, we are deemed to have made the PIK Interest election for future interest
periods unless and until we elect otherwise. Therefore, the interest payments on the senior toggle notes assume that the PIK
Interest election remains the default election over the term of the notes. Assuming the PIK Interest election remains in effect
over the term of the Notes, we are contractually obligated to make a payment of $486.1 million on August 1, 2013 which is
included in “Interest payments on long-term debt” in the table above.
(2) Interest payments on the senior secured credit facilities, other than the revolving credit facility, assume the obligations are repaid
in accordance with the amortization schedule included in the credit agreement and the interest rate is held constant over the
remaining term based on the weighted average interest rate at December 31, 2009 on the senior secured credit facilities.
(1)
(2)
(3)
(4)