iHeartMedia 2010 Annual Report Download - page 81

CLEAR CHANNEL CAPITAL I, LLC AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
In February 2010, the FASB issued ASU 2010-09, Amendments to Certain Recognition and Disclosure Requirements. ASU 2010-09
updates ASC Topic 855, Subsequent Events. ASU 2010-09 removes the requirement to disclose the date through which an entity has
evaluated subsequent events. The Company adopted the provisions of ASU 2010-09 upon issuance with no material impact to the
Company’s financial position or results of operations.
In January 2010, the FASB issued ASU No. 2010-06, Improving Disclosures about Fair Value Measurements. This update amends
ASC Topic 820, Fair Value Measurements and Disclosures, to require new disclosures for significant transfers in and out of Level 1
and Level 2 fair value measurements, disaggregation regarding classes of assets and liabilities, valuation techniques and inputs used
to measure fair value for both recurring and nonrecurring fair value measurements for Level 2 or Level 3. These disclosures are
effective for the interim and annual reporting periods beginning after December 15, 2009. Additional new disclosures regarding the
purchases, sales, issuances and settlements in the roll forward of activity in Level 3 fair value measurements are effective for fiscal
years beginning after December 15, 2010 beginning with the first interim period. The Company adopted certain of the relevant
disclosure provisions of ASU 2010-06 on January 1, 2010 and adopted certain other provisions on January 1, 2011.
NOTE 2 – 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.
The Company also acquired assets in its operating segments in addition to the merger described above. The Company acquired FCC
licenses in its radio segment for $11.7 million in cash during 2008. The Company acquired outdoor display faces and additional
equity interests in international outdoor companies for $96.5 million in cash during 2008. The Company’s national representation
business acquired representation contracts for $68.9 million in cash during 2008.
NOTE 3 – DISCONTINUED OPERATIONS
Sale of non-core radio stations and television business
Consistent with the provisions of ASC 360-10, the Company classified radio station assets as discontinued operations during 2008.
On March 14, 2008, Clear Channel completed the sale of its television business to Newport Television, LLC and recorded a gain of
$662.9 million as a component of “Income (loss) from discontinued operations, net” in its consolidated statement of operations during
the first quarter of 2008.
72