iHeartMedia 2011 Annual Report Download - page 40

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Corporate Expenses
Corporate expenses increased $30.1 million during 2010 compared to 2009, primarily due to a $49.9 million increase in
bonus expense from improved operating performance and a $53.8 million increase primarily related to headcount from centralization
efforts and the expansion of corporate capabilities. Partially offsetting the 2010 increase was $23.5 million related to an unfavorable
outcome of litigation recorded in 2009, a $22.6 million decrease in expenses during 2010 associated with our restructuring program
and an $18.6 million decrease related to various corporate accruals.
D
epreciation and Amortization
Depreciation and amortization decreased $32.6 million during 2010 compared to 2009, primarily as a result of assets in our
International outdoor segment that became fully amortized during 2009. Additionally, 2009 included $8.0 million of additional
amortization expense associated with the finalization of purchase price allocations to the acquired intangible assets in our CCME
segment.
I
mpairment Charges
We performed our annual impairment test on October 1, 2010 on our goodwill, FCC licenses, billboard permits, and other
intangible assets and recorded impairment charges of $15.4 million. We also performed impairment tests on our goodwill, FCC
licenses, billboard permits, and other intangible assets in 2009 and recorded impairment charges of $4.1 billion. Please see the notes
to the consolidated financial statements included in Item 8 of Part II of this Annual Report on Form 10-K for a further description of
the impairment charges.
A rollforward of our goodwill balance from December 31, 2008 through December 31, 2009 by reporting unit is as
follows:
Other Operating Expense - Net
Other operating expense of $16.7 million for 2010 primarily related to a $25.3 million loss recorded as a result of the
transfer of our subsidiary’s interest in its Branded Cities business, partially offset by a $6.2 million gain on the sale of representation
contracts.
Other operating expense of $50.8 million for 2009 primarily related to a $42.0 million loss on the sale and exchange of
radio stations and a $20.9 million loss on the sale of our taxi advertising business. The losses were partially offset by a $10.1 million
gain on the sale of Americas and International outdoor assets.
37
(In thousands)
Balances as o
f
December 31,
2008
Ac
q
uisitions
Dis
p
ositions
Foreign
Currenc
y
Im
p
airment
Ad
j
ustments
Balances as o
f
December 31,
2009
United States Radio
Markets
$5,579,190
$4,518
$(62,410)
$
—
$(2,420,897)
$46,468
$3,146,869
United States Outdoor
Markets
824,730
2,25
0
—
—
(324,892)
69,844
571,932
Switzerland
56,885
—
—
1,276
(7,827)
—
50,334
Ireland
14,285
—
—
223
(12,591)
—
1,917
Baltics
10,629
—
—
—
(10,629)
—
—
Americas Outdoor
–
Mexico
8,729
—
—
7,440
(10,085)
(442)
5,642
Americas Outdoor
–
Chile
3,964
—
—
4,417
(8,381)
—
—
Americas Outdoor
–
Peru
45,284
—
—
—
(37,609)
—
7,675
Americas Outdoor
–
Brazil
4,971
—
—
4,436
(9,407)
—
—
Americas Outdoor –
Canada
4,920
—
—
—
—
(4,920)
—
All Others
–
International
Outdoor
205,744
11
0
—
15,913
(42,717)
45,042
224,092
Other
331,290
—
(2,276)
—
(211,988)
(482)
116,544
$7,090,621
$6,878
$(64,686)
$33,705
$(3,097,023)
$155,510
$4,125,005