iHeartMedia 2011 Annual Report Download - page 44

The following table indicates non-cash compensation costs related to share-based payments for the years ended December
31, 2011, 2010 and 2009, respectively:
Included in corporate share-based compensation for year ended December 31, 2011 is a $6.6 million reversal of expense
related to the cancellation of a portion of an executive’s stock options.
CCMH completed a voluntary stock option exchange program on March 21, 2011 and exchanged 2.5 million stock options
granted under the Clear Channel 2008 Executive Incentive Plan for 1.3 million replacement stock options with a lower exercise price
and different service and performance conditions. We accounted for the exchange program as a modification of the existing awards
under ASC 718 and will recognize incremental compensation expense of approximately $1.0 million over the service period of the
new awards.
Additionally, we recorded compensation expense of $6.0 million in “Corporate expenses” related to shares tendered by
Mark P. Mays to CCMH on August 23, 2010 for purchase at $36.00 per share pursuant to a put option included in his amended
employment agreement.
LIQUIDITY AND CAPITAL RESOURCES
The following discussion highlights cash flow activities during the years ended December 31, 2011, 2010 and 2009.
Cash Flows
Operating Activities
2011
The decrease in cash flows from operations in 2011 compared to 2010 was primarily driven by declines in working capital
partially offset by improved profitability, including a 5% increase in revenue. Our net loss of $268.0 million, adjusted for $832.2
million of non-cash items, provided positive cash flows of $564.1 million in 2011. Cash generated by higher operating income in
2011 compared to 2010 was offset by the decrease in accrued expenses in 2011 as a result of higher variable compensation payments
in 2011 associated with our employee incentive programs based on 2010 operating performance. In addition, in 2010 we received
$132.3 million in U.S. Federal income tax refunds that increased cash flow from operations in 2010.
Non-cash items affecting our net loss include depreciation and amortization, deferred taxes, (gain) loss on disposal of
operating assets, (gain) loss on extinguishment of debt, provision for doubtful accounts, share-based compensation, equity in earnings
of nonconsolidated affiliates, amortization of deferred financing charges and note discounts – net and other reconciling items – net as
presented on the face of the statement of cash flows.
2010
The increase in cash flows from operations in 2010 compared to 2009 was primarily driven by improved profitability,
including a 6% increase in revenue and a 2% decrease in direct operating and SG&A expenses. Our net loss, adjusted for $792.7
million of non-cash items, provided positive cash flows of $329.8 million in 2010. We received $132.3 million in Federal income tax
refunds during the third quarter of 2010. Working capital, excluding taxes, provided $120.3 million to cash flows from operations in
the current year.
41
(In thousands)
Years Ended December 31,
2011 2010 2009
CCM
E
$ 4,606 $ 7,152 $ 8,276
Americas outdoor advertisin
g
7,601 9,207 7,977
International outdoor advertisin
g
3,165 2,746 2,412
Cor
p
orate 5,295 15,141 21,121
Total share-based com
p
ensation ex
p
ense $ 20,667 $ 34,246 $ 39,786
(In thousands)
Year ended December 31,
2011 2010 2009
Cash
p
rovided b
y
(used for):
O
p
eratin
g
activities $ 373,958 $ 582,373 $ 181,175
Investin
g
activities $(368,086) $(240,197) $(141,749)
Financin
g
activities $ (698,116) $ (305,244) $ 1,604,722
1
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