iHeartMedia 2009 Annual Report Download - page 99

FASB Staff Position No. FAS 115-2 and FAS 124-2, Recognition and Presentation of Other-Than-Temporary Impairments, codified
in ASC 320-10-35, was issued in April 2009. It amends the other-than-temporary impairment guidance in U.S. GAAP for debt
securities to make the guidance more operational and to improve the presentation and disclosure of other-than-temporary impairments
on debt and equity securities in the financial statements. ASC 320-10-35 does not amend existing recognition and measurement
guidance related to other-than-temporary impairments of equity securities. This guidance is effective for interim and annual reporting
periods ending after June 15, 2009, with early adoption 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 320-10-35 on April 1, 2009
with no material impact to its financial position or results of operations.
FASB Staff Position No. FAS 107-1 and APB 28-1, Interim Disclosures about Fair Value of Financial Instruments, codified in ASC
825-10-50, was issued in April 2009. ASC 825-10-50 amends prior authoritative guidance to require disclosures about fair value of
financial instruments for interim reporting periods of publicly traded companies as well as in annual financial statements. The
provisions of ASC 825-10-50 are effective for interim reporting periods ending after June 15, 2009, with early adoption permitted for
periods ending after March 15, 2009. The Company adopted the disclosure requirements of ASC 825-10-50 on April 1, 2009.
NOTE B - BUSINESS ACQUISITIONS
2009 Purchases of Additional Equity Interests
During 2009, the Company’s Americas outdoor segment purchased the remaining 15% interest in its consolidated subsidiary, Paneles
Napsa S.A., for $13.0 million and the Company’s International outdoor segment acquired an additional 5% interest in its consolidated
subsidiary, Clear Channel Jolly Pubblicita SPA, for $12.1 million.
2008 Acquisitions
CCMH completed its acquisition of Clear Channel on July 30, 2008. The transaction was accounted for as a purchase in accordance
with Statement of Financial Accounting Standards No. 141, Business Combinations, and Emerging Issues Task Force Issue 88-16,
B
asis in Leveraged Buyout Transactions. CCMH allocated a portion of the consideration paid to the assets and liabilities acquired at
their respective fair values with the remaining portion recorded at the continuing shareholders’ basis. Excess consideration after this
allocation was recorded as goodwill. The purchase price allocation was complete as of July 30, 2009 in accordance with ASC 805-10-
25, which requires that the allocation period not exceed one year from the date of acquisition.
Following is a summary of the purchase price allocations:
94
(In thousands)
Preliminary
Allocation
2008
Adjustments
2009
Adjustments
Final
Allocation
Consideration pai
d
$ 18,082,938 $ 18,082,938
Debt assumed
5,136,929 5,136,929
Historical carryover basis (825,647) (825,647)
$ 22,394,220 $ 22,394,220
Total current assets 2,311,777 5,041 1,234 2,318,052
PP&E - net
3,745,422 125,357 (2,664) 3,868,115
Intangible assets - net 20,634,499 (764,472) 51,293 19,921,320
Long-term assets
1,079,704 44,787
—
1,124,491
Current liabilities (1,219,033) (13,204) 26,555 (1,205,682)
Long-term liabilities
(4,158,149) 602,491 (43,036) (3,598,694)
22,394,220
—
33,382 22,427,602
Other comprehensive income
—
—
(33,382) (33,382)
$ 22,394,220 $
—
$
—
$ 22,394,220