iHeartMedia 2009 Annual Report Download - page 98

FASB Staff Position Emerging Issues Task Force 03-6-1, Determining Whether Instruments Granted in Share-Based Payment
Transactions Are Participating Securities, codified in ASC 260-10-45, was issued in June 2008. ASC 260-10-45 clarifies that
unvested share-based payment awards with a right to receive nonforfeitable dividends are participating securities. Guidance is also
provided on how to allocate earnings to participating securities and compute basic earnings per share using the two-class method. All
prior-period earnings per share data presented shall be adjusted retrospectively (including interim financial statements, summaries of
earnings, and selected financial data) to conform with the provisions of ASC 260-10-45. The Company retrospectively adopted the
provisions of ASC 260-10-45 on January 1, 2009. The impact of adopting ASC 260-10-45 decreased previously reported basic
earnings per share by $.01 for the pre-merger year ended December 31, 2007.
Statement of Financial Accounting Standards No. 160, Noncontrolling Interests in Consolidated Financial Statements - an
amendment of ARB No. 51, codified in ASC 810-10-45, was issued in December 2007. ASC 810-10-45 clarifies the classification of
noncontrolling interests in consolidated statements of financial position and the accounting for and reporting of transactions between
the reporting entity and holders of such noncontrolling interests. Under this guidance, noncontrolling interests are considered equity
and should be reported as an element of consolidated equity, net income will encompass the total income of all consolidated
subsidiaries and there will be separate disclosure on the face of the income statement of the attribution of that income between the
controlling and noncontrolling interests, and increases and decreases in the noncontrolling ownership interest amount will be
accounted for as equity transactions. The provisions of ASC 810-10-45 are effective for the first annual reporting period beginning on
or after December 15, 2008, and earlier application is prohibited. Guidance is required to be adopted prospectively, except for
reclassifying noncontrolling interests to equity, separate from the parent’s shareholders’ equity, in the consolidated statement of
financial position and recasting consolidated net income (loss) to include net income (loss) attributable to both the controlling and
noncontrolling interests, both of which are required to be adopted retrospectively. The Company adopted the provisions of ASC 810-
10-45 on January 1, 2009, which resulted in a reclassification of approximately $426.2 million of noncontrolling interests to
member’s deficit. Adoption of this standard requires retrospective application in the financial statements of earlier periods on
January 1, 2009. In connection with the offering of $500.0 million aggregate principal amount of Series A Senior Notes and $2.0
billion aggregate principal amount of Series B Senior Notes by the Company’s subsidiary, the Company filed a Form 8-K filed on
December 11, 2009 to retrospectively recast the historical financial statements and certain disclosures included in its Annual Report
on Form 10-K for the year ended December 31, 2008 for the adoption of ASC 810-10-45.
Statement of Financial Accounting Standards No. 161, Disclosures about Derivative Instruments and Hedging Activities, codified in
ASC 815-10-50, was issued in March 2008. ASC 815-10-50 requires additional disclosures about how and why an entity uses
derivative instruments, how derivative instruments and related hedged items are accounted for and how derivative instruments and
related hedged items effect an entity’s financial position, results of operations and cash flows. The Company adopted the provisions
of ASC 815-10-50 on January 1, 2009. Please refer to Note H for disclosure required by ASC 815-10-50.
FASB Staff Position No. FAS 157-2, Effective Date of FASB Statement No. 157, codified in ASC 820-10, was issued in February
2008. ASC 820-10 delays the effective date of FASB Statement No. 157, Fair Value Measurements, for nonfinancial assets and
liabilities, except for items that are recognized or disclosed at fair value in the financial statements on a recurring basis (at least
annually), to fiscal years beginning after November 15, 2008. The Company adopted the provisions of ASC 820-10 on January 1,
2009 with no material impact to its financial position or results of operations.
FASB Staff Position No. FAS 157-4, Determining Fair Value When the Volume and Level of Activity for the Asset or Liability Have
Significantly Decreased and Identifying Transactions That Are Not Orderly, codified in ASC 820-10-35, was issued in April 2009.
ASC 820-10 provides additional guidance for estimating fair value when the volume and level of activity for the asset or liability have
significantly decreased. ASC 820-10 also includes guidance on identifying circumstances that indicate a transaction is not orderly.
This guidance is effective for interim and annual reporting periods ending after June 15, 2009, and shall be applied prospectively.
Early adoption is permitted for periods ending after March 15, 2009. Earlier adoption for periods ending before March 15, 2009 is not
permitted. The Company adopted the provisions of ASC 820-10 on April 1, 2009 with no material impact to its financial position or
results of operations.
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