iHeartMedia 2012 Annual Report Download - page 48

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Non-cash items affecting our net loss include impairment charges, depreciation and amortization, deferred taxes, provision
for doubtful accounts, gain on disposal of operating and fixed assets, loss on extinguishment of debt, loss on marketable securities,
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.
Non-cash items affecting our net loss include impairment charges, depreciation and amortization, deferred taxes, provision
for doubtful accounts, gain on disposal of operating and fixed assets, loss on extinguishment of debt, loss on marketable securities,
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.
Investing Activities
2012
Cash used for investing activities of $397.0 million during 2012 reflected capital expenditures of $390.3 million. We spent
$65.8 million for capital expenditures in our CCME segment, $117.6 million in our Americas outdoor segment primarily related to the
installation of new digital displays, $150.1 million in our International outdoor segment primarily related to new billboard, street
furniture and mall contracts and renewals of existing contracts, $17.4 million in our Other segment related to our national
representation business, and $39.2 million by Corporate. Partially offsetting cash used for investing activities were $59.7 million of
proceeds from the divestiture of our international neon business and the sales of other operating assets.
2011
Cash used for investing activities during 2011 primarily reflected capital expenditures of $362.3 million. We spent
$50.2 million for capital expenditures in our CCME segment, $120.8 million in our Americas outdoor segment primarily related to the
construction of new digital displays, $166.0 million in our International outdoor segment primarily related to new billboard and street
furniture contracts and renewals of existing contracts, and $19.5 million by Corporate. Cash paid for purchases of businesses primarily
related to our traffic acquisition and the cloud-based music technology business we purchased during 2011. In addition, we received
proceeds of $54.3 million primarily related to the sale of radio stations, a tower and other assets in our CCME, Americas outdoor, and
International outdoor segments.
2010
Cash used for investing activities during 2010 primarily reflected capital expenditures of $241.5 million. We spent
$27.8 million for capital expenditures in our CCME segment, $92.2 million in our Americas outdoor segment primarily related to the
construction of new digital displays, $103.0 million in our International outdoor segment primarily related to new billboard and street
furniture contracts and renewals of existing contracts, and $10.7 million by Corporate. In addition, we acquired representation
contracts for $14.1 million and received proceeds of $28.6 million primarily related to the sale of radio stations, assets in our Americas
outdoor and International outdoor segments and representation contracts.
Financing Activities
2012
Cash used for financing activities of $95.3 million during 2012 primarily reflected (i) the issuance of $2.2 billion of the
CCWH Subordinated Notes by CCWH and the use of proceeds distributed to us in connection with the CCOH Dividend, in addition to
cash on hand, to repay $2.1 billion of indebtedness under our senior secured credit facilities, (ii) the issuance by CCWH of $2.7 billion
aggregate principal amount of the CCWH Senior Notes due 2022 and the use of the proceeds to fund the tender offer for and
redemption of the Existing CCWH Senior Notes due 2017, (iii) the repayment of our 5.0% senior notes at maturity for $249.9 million
(net of $50.1 million principal amount held by and repaid to one of our subsidiaries with respect to notes repurchased and held by such
entity), using a portion of the proceeds from the June 2011 issuance of $750.0 million aggregate principal amount of 9.0% priority
guarantee notes due 2021 (the “Additional Priority Guarantee Notes due 2021”), by us along with available cash on hand and (iv) the