Guarantor Subsidiaries

6 Months Ended

Jun. 30, 2012

Guarantor Subsidiaries [Abstract]

Guarantor Subsidiaries

NOTE 10– GUARANTOR SUBSIDIARIES

The Company and certain of the Company's direct and indirect wholly-owned domestic subsidiaries (the “Guarantor Subsidiaries”) fully and unconditionally guarantee on a joint and several basis certain of the outstanding indebtedness of CCWH (the “Subsidiary Issuer”). The following consolidating schedules present financial information on a combined basis in conformity with the SEC's Regulation S-X Rule 3-10(d):

(In thousands)			As of June 30, 2012
		Parent		Subsidiary		Guarantor		Non-Guarantor
		Company		Issuer		Subsidiaries		Subsidiaries		Eliminations		Consolidated
Cash and cash equivalents		$	240,990	$	-	$	-	$	270,712	$	(20,374)	$	491,328
Accounts receivable, net of allowance			-		-		219,354		471,112		-		690,466
Intercompany receivables			-		182,441		1,409,567		-		(1,592,008)		-
Other current assets			1,189		4,125		80,124		133,352		-		218,790
	Total Current Assets		242,179		186,566		1,709,045		875,176		(1,612,382)		1,400,584
Property, plant and equipment, net			-		-		1,432,118		782,321		-		2,214,439
Definite-lived intangibles, net			-		-		370,395		219,889		-		590,284
Indefinite-lived intangibles			-		-		1,091,088		15,177		-		1,106,265
Goodwill			-		-		571,932		281,937		-		853,869
Due from Clear Channel Communications			712,310		-		-		-		-		712,310
Intercompany notes receivable			182,026		4,941,175		-		12,191		(5,135,392)		-
Other assets			552,347		785,485		1,449,181		60,510		(2,669,427)		178,096
	Total Assets	$	1,688,862	$	5,913,226	$	6,623,759	$	2,247,201	$	(9,417,201)	$	7,055,847
Accounts payable and accrued expenses		$	(169)	$	2,026	$	105,695	$	474,071	$	(20,374)	$	561,249
Intercompany payable			1,396,031		-		182,441		13,536		(1,592,008)		-
Deferred income			-		-		48,591		97,873		-		146,464
Current portion of long-term debt			-		-		37		23,014		-		23,051
	Total Current Liabilities		1,395,862		2,026		336,764		608,494		(1,612,382)		730,764
Long-term debt			-		4,700,000		1,203		17,982		-		4,719,185
Intercompany notes payable			5,813		-		4,845,917		283,662		(5,135,392)		-
Deferred tax liability			225		(113)		755,252		43,989		-		799,353
Other long-term liabilities			-		-		132,275		151,862		-		284,137
Total shareholders' equity			286,962		1,211,313		552,348		1,141,212		(2,669,427)		522,408
	Total Liabilities and Shareholders' Equity	$	1,688,862	$	5,913,226	$	6,623,759	$	2,247,201	$	(9,417,201)	$	7,055,847

(In thousands)			As of December 31, 2011
		Parent		Subsidiary		Guarantor		Non-Guarantor
		Company		Issuer		Subsidiaries		Subsidiaries		Eliminations		Consolidated
Cash and cash equivalents		$	325,696	$	-	$	-	$	249,448	$	(32,489)	$	542,655
Accounts receivable, net of allowance			-		-		232,834		469,257		-		702,091
Intercompany receivables			-		183,310		1,435,881		-		(1,619,191)		-
Other current assets			2,012		-		79,626		127,344		-		208,982
	Total Current Assets		327,708		183,310		1,748,341		846,049		(1,651,680)		1,453,728
Property, plant and equipment, net			-		-		1,448,078		798,632		-		2,246,710
Definite-lived intangibles, net			-		-		378,515		240,011		-		618,526
Indefinite-lived intangibles			-		-		1,090,597		15,107		-		1,105,704
Goodwill			-		-		571,932		285,261		-		857,193
Due from Clear Channel Communications			656,040		-		-		-		-		656,040
Intercompany notes receivable			182,026		2,774,175		-		17,832		(2,974,033)		-
Other assets			2,775,720		786,783		1,475,709		61,309		(4,949,237)		150,284
	Total Assets	$	3,941,494	$	3,744,268	$	6,713,172	$	2,264,201	$	(9,574,950)	$	7,088,185
Accounts payable and accrued expenses			144		1,134		136,226		502,182		(32,489)		607,197
Intercompany payable			1,424,937		-		183,310		10,944		(1,619,191)		-
Deferred income			-		-		34,217		55,763		-		89,980
Current portion of long-term debt			-		-		31		23,775		-		23,806
	Total Current Liabilities	$	1,425,081	$	1,134	$	353,784	$	592,664	$	(1,651,680)	$	720,983
Long-term debt			-		2,500,000		1,265		20,838		-		2,522,103
Intercompany notes payable			7,491		-		2,692,644		273,898		(2,974,033)		-
Deferred tax liability			225		(137)		771,105		51,739		-		822,932
Other long-term liabilities			-		1,204		118,650		162,086		-		281,940
Total shareholders' equity			2,508,697		1,242,067		2,775,724		1,162,976		(4,949,237)		2,740,227
	Total Liabilities and Shareholders' Equity	$	3,941,494	$	3,744,268	$	6,713,172	$	2,264,201	$	(9,574,950)	$	7,088,185

(In thousands)		Three Months Ended June 30, 2012
		Parent		Subsidiary		Guarantor		Non-Guarantor
		Company		Issuer		Subsidiaries		Subsidiaries		Eliminations		Consolidated
Revenue		$	-	$	-	$	299,006	$	462,320	$	-	$	761,326
Operating expenses:
	Direct operating expenses		-		-		128,382		278,513		-		406,895
	Selling, general and administrative expenses		-		-		41,208		91,077		-		132,285
	Corporate expenses		3,575		-		14,244		10,019		-		27,838
	Depreciation and amortization		-		-		47,959		51,709		-		99,668
	Other operating income (expense) – net		(126)		-		3,215		(343)		-		2,746
Operating income (loss)			(3,701)		-		70,428		30,659		-		97,386
Interest expense – net			(103)		100,780		2,291		(15)		-		102,953
Interest income on Due from Clear Channel Communications			-		-		(16,089)		-		-		(16,089)
Intercompany interest income			3,603		99,355		-		175		(103,133)		-
Intercompany interest expense			112		-		102,786		235		(103,133)		-
Equity in earnings (loss) of nonconsolidated affiliates			(9,165)		13,715		12,474		(401)		(16,780)		(157)
Other income (expense) – net			-		(195)		(6,487)		5,051		-		(1,631)
Income (loss) before income taxes			(9,272)		12,095		(12,573)		35,264		(16,780)		8,734
Income tax benefit (expense)			1,156		(97)		3,408		(12,549)		-		(8,082)
Consolidated net income (loss)			(8,116)		11,998		(9,165)		22,715		(16,780)		652
	Less amount attributable to noncontrolling interest		-		-		-		8,768		-		8,768
Net income (loss) attributable to the Company		$	(8,116)	$	11,998	$	(9,165)	$	13,947	$	(16,780)	$	(8,116)
Other comprehensive income (loss):
	Foreign currency translation adjustments		1,737		(2)		1,429		(41,507)		-		(38,343)
	Foreign currency reclassification adjustments		-		-		-		91		-		91
	Unrealized gain (loss) on marketable securities		-		-		1		(280)		-		(279)
	Equity in subsidiary comprehensive income (loss)		(38,722)		(61,444)		(40,152)		-		140,318		-
Comprehensive income (loss)			(45,101)		(49,448)		(47,887)		(27,749)		123,538		(46,647)
	Less amount attributable to noncontrolling interest		-		-		-		(1,546)		-		(1,546)
Comprehensive income (loss) attributable to the Company		$	(45,101)	$	(49,448)	$	(47,887)	$	(26,203)	$	123,538	$	(45,101)

(In thousands)			Three Months Ended June 30, 2011
		Parent		Subsidiary		Guarantor		Non-Guarantor
		Company		Issuer		Subsidiaries		Subsidiaries		Eliminations		Consolidated
Revenue		$	-	$	-	$	295,429	$	493,779	$	-	$	789,208
Operating expenses:
	Direct operating expenses		-		-		124,959		290,513		-		415,472
	Selling, general and administrative expenses		-		-		45,306		97,631		-		142,937
	Corporate expenses		3,136		-		13,390		6,512		-		23,038
	Depreciation and amortization		-		-		49,368		56,232		-		105,600
	Other operating income – net		-		-		3,438		862		-		4,300
Operating income (loss)			(3,136)		-		65,844		43,753		-		106,461
Interest expense – net			(170)		57,812		2,029		1,132		-		60,803
Interest income on Due from Clear Channel Communications			-		-		10,518		-		-		10,518
Intercompany interest income			3,489		57,915		-		254		(61,658)		-
Intercompany interest expense			130		-		61,424		104		(61,658)		-
Equity in earnings (loss) of nonconsolidated affiliates			26,449		13,945		18,070		673		(58,464)		673
Other income (expense) – net			-		(81)		(76)		(120)		-		(277)
Income (loss) before income taxes			26,842		13,967		30,903		43,324		(58,464)		56,572
Income tax benefit (expense)			(147)		(1,010)		(4,454)		(16,749)		-		(22,360)
Consolidated net income (loss)			26,695		12,957		26,449		26,575		(58,464)		34,212
	Less amount attributable to noncontrolling interest		-		-		-		7,517		-		7,517
Net income (loss) attributable to the Company		$	26,695	$	12,957	$	26,449	$	19,058	$	(58,464)	$	26,695
Other comprehensive income (loss), net of tax:
	Foreign currency translation adjustments		-		-		-		28,366		-		28,366
	Foreign currency reclassification adjustments		-		-		-		59		-		59
	Unrealized gain (loss) on marketable securities		-		-		-		(1,949)		-		(1,949)
	Equity in subsidiary comprehensive income (loss)		22,644		19,028		22,644		-		(64,316)		-
Comprehensive income (loss)			49,339		31,985		49,093		45,534		(122,780)		53,171
	Less amount attributable to noncontrolling interest		-		-		-		3,832		-		3,832
Comprehensive income (loss) attributable to the Company		$	49,339	$	31,985	$	49,093	$	41,702	$	(122,780)	$	49,339

(In thousands)		Six Months Ended June 30, 2012
		Parent		Subsidiary		Guarantor		Non-Guarantor
		Company		Issuer		Subsidiaries		Subsidiaries		Eliminations		Consolidated
Revenue		$	-	$	-	$	559,479	$	853,130	$	-	$	1,412,609
Operating expenses:
	Direct operating expenses				-		258,740		542,208		-		800,948
	Selling, general and administrative expenses		-		-		89,927		195,507		-		285,434
	Corporate expenses		7,381		-		27,448		17,319		-		52,148
	Depreciation and amortization		-		-		90,015		101,990		-		192,005
	Other operating income (expense) – net		(242)		-		6,997		(6)		-		6,749
Operating income (loss)			(7,623)		-		100,346		(3,900)		-		88,823
Interest expense – net			(247)		165,755		4,387		889		-		170,784
Interest income on Due from Clear Channel Communications			-		-		(32,069)		-		-		(32,069)
Intercompany interest income			7,154		164,204		-		419		(171,777)		-
Intercompany interest expense			230		-		171,161		386		(171,777)		-
Equity in earnings (loss) of nonconsolidated affiliates			(51,703)		(10,390)		(12,337)		(277)		74,971		264
Other income (expense) – net			-		(301)		(6,482)		4,658		-		(2,125)
Income (loss) before income taxes			(52,155)		(12,242)		(61,952)		(375)		74,971		(51,753)
Income tax benefit (expense)			169		71		10,249		(3,277)		-		7,212
Consolidated net income (loss)			(51,986)		(12,171)		(51,703)		(3,652)		74,971		(44,541)
	Less amount attributable to noncontrolling interest		-		-		-		7,445		-	`	7,445
Net income (loss) attributable to the Company		$	(51,986)	$	(12,171)	$	(51,703)	$	(11,097)	$	74,971	$	(51,986)
Other comprehensive income (loss):
	Foreign currency translation adjustments		1,737		(2)		1,420		(7,987)		-		(4,832)
	Foreign currency reclassification adjustments		-		-		-		154		-		154
	Unrealized gain (loss) on marketable securities		-		-		-		10		-		10
	Equity in subsidiary comprehensive income (loss)		(4,670)		(10,722)		(6,090)		-		21,482		-
Comprehensive income (loss)			(54,919)		(22,895)		(56,373)		(18,920)		96,453		(56,654)
	Less amount attributable to noncontrolling interest		-		-		-		(1,735)		-		(1,735)
Comprehensive income (loss) attributable to the Company		$	(54,919)	$	(22,895)	$	(56,373)	$	(17,185)	$	96,453	$	(54,919)

(In thousands)		Six Months Ended June 30, 2011
		Parent		Subsidiary		Guarantor		Non-Guarantor
		Company		Issuer		Subsidiaries		Subsidiaries		Eliminations		Consolidated
Revenue		$	-	$	-	$	544,798	$	894,624	$	-	$	1,439,422
Operating expenses:					-						-
	Direct operating expenses		-		-		246,546		560,306		-		806,852
	Selling, general and administrative expenses		-		-		90,517		175,600		-		266,117
	Corporate expenses		6,088		-		24,907		14,026		-		45,021
	Depreciation and amortization		-		-		96,294		111,636		-		207,930
	Impairment charge		-		-		-		-		-		-
	Other operating income – net		-		-		7,596		1,506		-		9,102
Operating income (loss)			(6,088)		-		94,130		34,562		-		122,604
Interest expense – net			(109)		115,625		3,862		2,408		-		121,786
Interest income on Due from Clear Channel Communications			-		-		19,571		-		-		19,571
Intercompany interest income			6,954		115,857		-		502		(123,313)		-
Intercompany interest expense			256		-		122,823		234		(123,313)		-
Loss on marketable securities			-		-		-		-		-		-
Equity in earnings (loss) of nonconsolidated affiliates			16,704		16,036		23,588		601		(56,327)		602
Other income (expense) – net			-		61		(130)		2,903		-		2,834
Income (loss) before income taxes			17,423		16,329		10,474		35,926		(56,327)		23,825
Income tax benefit (expense)			(269)		(354)		6,230		(5,612)		-		(5)
Consolidated net income (loss)			17,154		15,975		16,704		30,314		(56,327)		23,820
	Less amount attributable to noncontrolling interest		-		-		-		6,666		-		6,666
Net income (loss) attributable to the Company		$	17,154	$	15,975	$	16,704	$	23,648	$	(56,327)	$	17,154
Other comprehensive income (loss):
	Foreign currency translation adjustments		-		-		-		66,385		-		66,385
	Unrealized gain on marketable securities		-		-		-		520		-		520
	Reclassification adjustment		-		-		-		148		-		148
	Equity in subsidiary comprehensive income (loss)		60,919		54,947		60,919		-		(176,785)		-
Other comprehensive income (loss)			60,919		54,947		60,919		67,053		(176,785)		67,053
Comprehensive income (loss)			78,073		70,922		77,623		90,701		(233,112)		84,207
	Less amount attributable to noncontrolling interest		-		-		-		6,134		-		6,134
Comprehensive income (loss) attributable to the Company		$	78,073	$	70,922	$	77,623	$	84,567	$	(233,112)	$	78,073

(In thousands)		Six Months Ended June 30, 2012
		Parent		Subsidiary		Guarantor		Non-Guarantor
		Company		Issuer		Subsidiaries		Subsidiaries		Eliminations		Consolidated
Cash flows from operating activities:
Consolidated net income (loss)		$	(51,986)	$	(12,171)	$	(51,703)	$	(3,652)	$	74,971	$	(44,541)
Reconciling items:
	Depreciation and amortization		-		-		90,015		101,990		-		192,005
	Deferred taxes		-		24		(15,685)		(8,523)		-		(24,184)
	Provision for doubtful accounts		-		-		1,313		1,593		-		2,906
	Other reconciling items – net		51,945		11,593		12,997		3,732		(74,971)		5,296
Changes in operating assets and liabilities:
	(Increase) decrease in accounts receivable		-		-		12,168		(7,204)		-		4,964
	Increase in deferred income		-		-		14,135		42,376		-		56,511
	Increase (decrease) in accrued expenses		(312)		893		(21,466)		309		-		(20,576)
	Increase (decrease) in accounts payable and other liabilities		-		(1,204)		3,489		(28,782)		12,115		(14,382)
	Changes in other operating assets and liabilities, net of effects of acquisitions and dispositions		580		-		2,441		(830)		-		2,191
Net cash provided by (used for) operating activities			227		(865)		47,704		101,009		12,115		160,190
Cash flows from investing activities:
	Purchases of property, plant and equipment		-		-		(62,670)		(68,126)		-		(130,796)
	Decrease (increase) in intercompany notes receivable		-		(2,167,000)		(9,406)		2,663		2,173,743		-
	Dividends from subsidiaries		2,167,000		-		641		-		(2,167,641)		-
	Purchases of other operating assets		-		-		(1,595)		(8,235)		-		(9,830)
	Proceeds from disposal of assets		-		-		6,095		1,100		-		7,195
	Change in other – net		-		-		(1,000)		(2,425)		-		(3,425)
Net cash provided by (used for) investing activities			2,167,000		(2,167,000)		(67,935)		(75,023)		6,102		(136,856)
Cash flows from financing activities:
	Draws on credit facilities		-		-		-		4,361		-		4,361
	Payments on credit facilities		-		-		-		(1,962)		-		(1,962)
	Proceeds from long-term debt		-		2,200,000		-		-		-		2,200,000
	Payments on long-term debt		-		-		(56)		(6,206)		-		(6,262)
	Decrease (increase) in intercompany notes payable - net		-		-		2,164,337		9,406		(2,173,743)		-
	Net transfers to Clear Channel Communications		(56,279)		-		-		-		-		(56,279)
	Intercompany funding		(31,340)		865		29,952		523		-		-
	Dividends paid		(2,170,396)		-		(2,167,000)		(641)		2,167,641		(2,170,396)
	Equity contributions from parent		-		-		-		-		-		-
	Change in other – net		6,082		(33,000)		(7,002)		(7,960)		-		(41,880)
Net cash provided by (used for) financing activities			(2,251,933)		2,167,865		20,231		(2,479)		(6,102)		(72,418)
Effect of exchange rate changes on cash			-		-		-		(2,243)		-		(2,243)
Net increase (decrease) in cash and cash equivalents			(84,706)		-		-		21,264		12,115		(51,327)
Cash and cash equivalents at beginning of period			325,696		-		-		249,448		(32,489)		542,655
Cash and cash equivalents at end of period		$	240,990	$	-	$	-	$	270,712	$	(20,374)	$	491,328

(In thousands)		Six Months Ended June 30, 2011
		Parent		Subsidiary		Guarantor		Non-Guarantor
		Company		Issuer		Subsidiaries		Subsidiaries		Eliminations		Consolidated
Cash flows from operating activities:
Consolidated net income (loss)		$	17,154	$	15,975	$	16,704	$	30,314	$	(56,327)	$	23,820
Reconciling items:
	Depreciation and amortization		-		-		96,294		111,636		-		207,930
	Deferred taxes		-		22		(1,120)		(15,327)		-		(16,425)
	Provision for doubtful accounts		-		-		289		3,022		-		3,311
	Other reconciling items – net		(16,704)		(16,036)		(23,598)		(3,855)		56,327		(3,866)
Changes in operating assets and liabilities:
	Decrease in accounts receivable		-		-		14,680		(18,215)		-		(3,535)
	Increase in deferred income		-		-		16,391		32,224		-		48,615
	Increase (decrease) in accrued expenses		-		-		(21,885)		(11,009)		-		(32,894)
	Increase (decrease) in accounts payable and other liabilities		-		50		27,179		(5,697)		(18,132)		3,400
	Changes in other operating assets and liabilities, net of effects of acquisitions and dispositions		458		1,736		(22,274)		(13,844)		-		(33,924)
Net cash provided by (used for) operating activities			908		1,747		102,660		109,249		(18,132)		196,432
Cash flows from investing activities:
	Purchases of property, plant and equipment		-		-		(65,307)		(40,467)		-		(105,774)
	Equity contributions to subsidiaries		-		-		(97)		-		97		-
	Purchases of businesses and other operating assets		-		-		(3,522)		(312)		-		(3,834)
	Proceeds from disposal of assets		-		-		6,925		3,253		-		10,178
	Decrease in intercompany notes receivable - net
Change in other – net			-		20,100		879		619		(20,804)		794
Net cash provided by (used for) investing activities			-		20,100		(61,122)		(36,907)		(20,707)		(98,636)
Cash flows from financing activities:
	Increase in intercompany notes payable - net		-		-		-		(20,100)		20,100		-
	Payments on credit facilities		-		-		-		(1,893)		-		(1,893)
	Proceeds from long-term debt		-		-		-		-		-		-
	Payments on long-term debt		-		-		-		(5,878)		-		(5,878)
	Net transfers to Clear Channel Communications		(100,155)		-		-		-		-		(100,155)
	Intercompany funding		59,967		(21,847)		(41,538)		3,418		-		-
	Equity contributions from parent		-		-		-		97		(97)		-
	Change in other – net		729		-		-		(6,041)		704		(4,608)
Net cash used for financing activities			(39,459)		(21,847)		(41,538)		(30,397)		20,707		(112,534)
Effect of exchange rate changes on cash			-		-		-		7,232		-		7,232
Net increase (decrease) in cash and cash equivalents			(38,551)		-		-		49,177		(18,132)		(7,506)
Cash and cash equivalents at beginning of period			426,742		-		-		203,789		(6,513)		624,018
Cash and cash equivalents at end of period		$	388,191	$	-	$	-	$	252,966	$	(24,645)	$	616,512