iHeartMedia 2012 Annual Report Download - page 86

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CLEAR CHANNEL CAPITAL I, LLC AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
83
Summarized Financial Information
The following table summarizes the Company's investments in nonconsolidated affiliates:
(In thousands)
ARN
All
Others
Total
Balance at December 31, 2010
$
342,785
$
14,966
$
357,751
Cash advances (repayments)
-
(929)
(929)
Dispositions of investments, net
-
(6,316)
(6,316)
Equity in earnings
20,958
6,000
26,958
Foreign currency transaction adjustment
(153)
-
(153)
Foreign currency translation adjustment
(1,125)
290
(835)
Distributions received
(15,088)
(1,701)
(16,789)
Other
-
-
-
Balance at December 31, 2011
$
347,377
$
12,310
$
359,687
Cash advances (repayments)
(8,758)
3,082
(5,676)
Acquisitions of investments, net
-
2,704
2,704
Equity in earnings (loss)
18,621
(64)
18,557
Foreign currency transaction adjustment
(1,189)
-
(1,189)
Foreign currency translation adjustment
8,085
(10)
8,075
Distributions received
(11,074)
(642)
(11,716)
Other
-
470
470
Balance at December 31, 2012
$
353,062
$
17,850
$
370,912
The investments in the table above are not consolidated, but are accounted for under the equity method of accounting, whereby the
Company records its investments in these entities in the balance sheet as “Other assets.” The Company's interests in their operations
are recorded in the statement of comprehensive loss as “Equity in earnings of nonconsolidated affiliates.”
NOTE 4 – ASSET RETIREMENT OBLIGATION
The Company’s asset retirement obligation is reported in “Other long-term liabilities” with the current portion recorded in “Accrued
liabilities” and relates to its obligation to dismantle and remove outdoor advertising displays from leased land and to reclaim the site to
its original condition upon the termination or non-renewal of a lease. When the liability is recorded, the cost is capitalized as part of
the related long-lived assets’ carrying value. Due to the high rate of lease renewals over a long period of time, the calculation assumes
that all related assets will be removed at some period over the next 50 years. An estimate of third-party cost information is used with
respect to the dismantling of the structures and the reclamation of the site. The interest rate used to calculate the present value of such
costs over the retirement period is based on an estimated risk adjusted credit rate for the same period.
The following table presents the activity related to the Company’s asset retirement obligation:
(In thousands)
Years Ended December 31,
2012
2011
Beginning balance
$
51,295
$
52,099
Adjustment due to change in estimate of related costs
3,570
(3,174)
Accretion of liability
4,920
5,001
Liabilities settled
(2,936)
(2,631)
Ending balance
$
56,849
$
51,295