iHeartMedia 2011 Annual Report Download - page 57

Capital Expenditures
Capital expenditures for the years ended December 31, 2011, 2010 and 2009 were as follows:
Our capital expenditures are not of significant size individually and primarily relate to the ongoing deployment of digital
displays and recurring maintenance.
D
ividends
We have not paid cash dividends on the shares of our common stock since the merger and our ability to pay dividends is
subject to restrictions should we seek to do so in the future. Our debt financing arrangements include restrictions on our ability to pay
dividends.
A
cquisitions
On April 29, 2011, we completed our Traffic acquisition for $24.3 million to add a complementary traffic operation to our
existing traffic business. Immediately after closing, the acquired subsidiaries repaid pre-existing, intercompany debt owed by the
subsidiaries to Westwood One, Inc. in the amount of $95.0 million.
During 2011, we also acquired Brouwer & Partners, a street furniture business in Holland, for $12.5 million.
Stock Purchases
On August 9, 2010, we announced that our board of directors approved a stock purchase program under which we or our
subsidiaries may purchase up to an aggregate of $100 million of the Class A common stock of CCMH and/or the Class A common
stock of CCOH. The stock purchase program does not have a fixed expiration date and may be modified, suspended or terminated at
any time at our discretion. During 2011, CC Finco purchased 1,553,971 shares of CCOH’s Class A common stock through open
market purchases for approximately $16.4 million.
P
urchases of Additional Equity Interests
During 2009, our Americas outdoor segment purchased the remaining 15% interest in our consolidated subsidiary, Paneles
Napsa S.A., for $13.0 million and our International outdoor segment acquired an additional 5% interest in our consolidated
subsidiary, Clear Channel Jolly Pubblicita SPA, for $12.1 million.
Certain Relationships with the Sponsors and Management
We are party to a management agreement with certain affiliates of Bain Capital Partners, LLC and Thomas H. Lee
Partners, L.P. (together, the “Sponsors”) and certain other parties pursuant to which such affiliates of the Sponsors will provide
management and financial advisory services until 2018. These arrangements require management fees to be paid to such affiliates of
the Sponsors for such services at a rate not greater than $15.0 million per year, plus reimbursable expenses. During the years ended
December 31, 2011, 2010 and 2009, we recognized management fees and reimbursable expenses of $15.7 million, $17.1 million and
$20.5 million, respectively.
As part of the employment agreement for our new Chief Executive Officer, CCMH agreed to provide the Chief Executive
Officer an aircraft for his personal and business use during the term of his employment. Subsequently, one of our subsidiaries entered
into a six-year aircraft lease with Yet Again Inc., a company controlled by the Chief Executive Officer, to lease an airplane for use by
the Chief Executive Officer in exchange for a one-time upfront lease payment of $3.0 million. Our subsidiary also is responsible for
all related taxes, insurance, and maintenance costs during the lease term (other than discretionary upgrades, capital improvements or
refurbishment). If the lease is terminated prior to the expiration of its term, Yet Again Inc. will be required to refund a pro rata portion
of the lease payment and a pro rata portion of the tax associated with the amount of the lease payment refunded, based upon the
period remaining in the term.
54
(In millions)
Years Ended December 31,
2011 2010 2009
CCM
E
$ 61.4 $ 35.5 $ 41.9
Americas outdoor advertisin
g
131.1 96.7 84.4
International outdoor advertisin
g
160.0 98.6 91.5
Cor
p
orate and Other 9.8 10.7 6.0
Total ca
p
ital ex
p
enditures $362.3 $241.5 $223.8