iHeartMedia 2011 Annual Report Download - page 43

International Outdoor Advertising Results of Operations
Our International outdoor operating results were as follows:
International outdoor revenue increased $48.1 million during 2010 compared to 2009, primarily as a result of revenue
growth from street furniture across most countries, partially offset by the exit from the businesses in Greece and India. Foreign
exchange movements negatively impacted revenue by $10.3 million.
Direct operating expenses decreased $45.6 million during 2010 compared to 2009, primarily as a result of a $20.4 million
decrease in expenses incurred in connection with our restructuring program and a $15.6 million decline in site-lease expenses
associated with cost savings from our restructuring program. Also contributing to the decreased expenses was the exit from the
businesses in Greece and India and an $8.2 million decrease from movements in foreign exchange. SG&A expenses decreased $6.3
million during 2010 compared to 2009, primarily as a result of a $5.4 million decrease in business tax related to a change in French
tax law and a $2.3 million decrease from movements in foreign exchange.
Depreciation and amortization decreased $24.9 million during 2010 compared to 2009 primarily as a result of assets that became
fully amortized during 2009.
Reconciliation of Segment Operating Income (Loss) to Consolidated Operating Income (Loss)
Corporate expenses include expenses related to CCME, Americas outdoor, International outdoor and our Other segment, as
well as overall executive, administrative and support functions.
Share-Based Compensation Expense
We do not have any compensation plans under which we grant stock awards to employees. Our employees receive equity
awards from the equity incentive plans of our indirect parent, CC Media Holdings, Inc. (“CCMH”), and our subsidiary, CCOH. Prior
to the merger, we granted options to purchase our common stock to our employees and directors and our affiliates under our various
equity incentive plans typically at no less than the fair value of the underlying stock on the date of the grant.
As of December 31, 2011, there was $42.8 million of unrecognized compensation cost, net of estimated forfeitures, related
to unvested share-based compensation arrangements that will vest based on service conditions. This cost is expected to be recognized
over a weighted average period of approximately two years. In addition, as of December 31, 2011, there was $15.2 million of
unrecognized compensation cost, net of estimated forfeitures, related to unvested share-based compensation arrangements that will
vest based on market, performance and service conditions. This cost will be recognized when it becomes probable that the
performance condition will be satisfied.
40
(In thousands)
Years Ended December 31,
2010 2009 % Chan
g
e
Revenue
$1,507,980 $1,459,853 3%
Direct o
p
eratin
g
ex
p
enses 971,380 1,017,005 (4%)
SG&A ex
p
enses 275,880 282,208 (2%)
De
p
reciation and amortization 204,461 229,367 (11%)
O
p
eratin
g
income (loss) $56,259 $(68,727) 182%
(In thousands)
Years Ended December 31,
2011 2010 2009
CCM
E
$ 888,358 $ 840,106 $ 639,854
Americas outdoor advertisin
g
281,611 273,519 217,617
International outdoor advertisin
g
111,626 56,259 (68,727)
Other
9,427 20,716 (43,963)
Im
p
airment char
g
es (7,614) (15,364) (4,118,924)
Other o
p
eratin
g
income (ex
p
ense) - net 12,682 (16,710) (50,837)
Cor
p
orate ex
p
enses (241,366) (293,685) (262,166)
Consolidated o
p
eratin
g
income (loss) $1,054,724 $ 864,841 $(3,687,146)
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