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CLEAR CHANNEL CAPITAL I, LLC AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
The investments in the table above are not consolidated, but are accounted for under the equity method of accounting, whereby the
Company records its investments in these entities in the balance sheet as “Other assets.” The Company’s interests in their operations
are recorded in the statement of operations as “Equity in earnings (loss) of nonconsolidated affiliates”.
Other Investments
Other investments of $75.3 million and $44.7 million at December 31, 2010 and 2009, respectively, include marketable equity
securities and other investments classified as follows:
The Company’s available-for-sale security, Independent News & Media PLC (“INM”), was in an unrealized loss position for an
extended period of time in 2008 and 2009. As a result, the Company considered the guidance in ASC 320-10-S99 and reviewed the
length of the time and the extent to which the market value was less than cost and the financial condition and near-term prospects of
the issuer. After this assessment, the Company concluded that the impairment was other than temporary and recorded a non-cash
impairment charge of $11.3 million and $59.8 million in “Gain (loss) on marketable securities” for the years ended December 31,
2009 and 2008, respectively. The fair value of this investment has continued to decline throughout 2010 and the Company has
concluded based on the guidance in ASC 320-10-S99 that such decline is other than temporary. Accordingly, the Company recorded a
non-cash impairment charge of $6.5 million in 2010 to write the investment down to fair value, recorded in “Gain (loss) on
marketable securities.”
In addition, the fair value of the Company’s available-for-sale security, Sirius XM Radio, Inc., was below its cost for an extended
period of time in 2008. After considering ASC 320-10-S99 guidance, the Company concluded that the impairment was other than
temporary and recorded a non-cash impairment charge of $56.7 million in “Gain (loss) on marketable securities” for the year ended
December 31, 2008.
Clear Channel sold its American Tower Corporation securities in the second quarter of 2008 and recorded a gain of $30.4 million on
the statement of operations in “Gain (loss) on marketable securities”.
Other cost investments include various investments in companies for which there is no readily determinable market value.
79
(In thousands)
Gross
Unrealized
Gross
Unrealized
Fair
Investments
Cost
Losses
Gains
Value
201
0
Available-for sale
$12,614
$
—
$ 57,945
$70,559
Other cost investments
4,773
—
—
$4,773
Total
$17,387
$
—
$ 57,945
$75,332
2009
Available-for sale
$19,104
$ (12,237)
$ 32,035
$38,902
Other cost investments
5,783
—
—
5,783
Total
$24,887
$ (12,237)
$ 32,035
$44,685