iHeartMedia 2010 Annual Report Download - page 118

CLEAR CHANNEL CAPITAL I, LLC AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
NOTE 17 - QUARTERLY RESULTS OF OPERATIONS (Unaudited)
(In thousands, except per share data)
NOTE 18 – CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS
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.
Clear Channel is 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 agreements 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
reimbursable expenses. For the years ended December 31, 2010 and 2009, the Company recognized management fees and
reimbursable expenses of $17.1 million and $20.5 million, respectively. For the post-merger period ended December 31, 2008, the
Company recognized management fees and reimbursable expenses of $6.3 million.
109
March 31, June 30, September 30, December 31,
2010 2009 2010 2009 2010 2009 2010 2009
Revenue $1,263,778 $1,207,987 $1,490,009 $ 1,437,865 $1,477,347 $1,393,973 $1,634,551 $1,512,084
O
p
eratin
g
ex
p
enses:
Direct operating expenses 597,347 618,349 600,916 637,076 596,540 632,778 647,364 695,060
Selling, general and administrative expenses 349,296 377,536 376,637 360,558 365,555 337,055 418,204 391,444
Corporate expenses 64,496 47,635 64,109 50,087 80,518 79,723 74,919 76,519
Depreciation and amortization 181,334 175,559 184,178 208,246 184,079 190,189 183,278 191,480
Impairment charges — — — 4,041,252 — — 15,364 77,672
Other o
p
eratin
g
income (ex
p
ense) - net 3,772 (2,894) 3,264 (31,516) (29,559) 1,403 5,813 (17,830)
Operating income (loss) 75,077 (13,986) 267,433 (3,890,870) 221,096 155,631 301,235 62,079
Interest expense
385,795 387,053 385,579 384,625 389,197 369,314 372,770 359,874
Gain (loss) on marketable securities — — — — — (13,378) (6,490) 7
E
q
uit
y
in earnin
g
s (loss) of nonconsolidated affiliates 1,871 (4,188) 3,747 (17,719) 2,994 1,226 (2,910) (8)
Other income (expense) – net 58,035 (3,180) (787) 430,629 (5,700) 222,282 (5,093) 29,985
Income (loss) before income taxes (250,812) (408,407) (115,186) (3,862,585) (170,807) (3,553) (86,028) (267,811)
Income tax (expense) benefit 71,185 (19,592) 37,979 184,552 20,415 (89,118) 30,401 417,478
Consolidated net income (loss) (179,627) (427,999) (77,207) (3,678,033) (150,392) (92,671) (55,627) 149,667
Amount attributable to noncontrolling interest (4,213) (9,782) 9,117 (4,629) 4,293 (2,816) 7,039 2,277
Net income (loss) attributable to the Company $ (175,414) $ (418,217) $ (86,324) $(3,673,404) $ (154,685) $ (89,855) $ (62,666) $ 147,390
(1) See Note 12 for further discussion of the tax benefits recorded in the fourth
q
uarters of 2010 and 2009.
(1)