QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED | |||||
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM _________ TO __________ |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | ||||||||||
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date. | |||||||||||||||||
Class | Outstanding at November 1, 2021 | ||||||||||||||||
~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ | ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ | ||||||||||||||||
Class A Common Stock, $.001 par value | |||||||||||||||||
Class B Common Stock, $.001 par value | |||||||||||||||||
Page No. | ||||||||
Part I – Financial Information | ||||||||
Item 1. | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
Part II – Other Information | ||||||||
Item 1. | ||||||||
Item 1A. | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
Item 5. | ||||||||
Item 6. | ||||||||
(In thousands, except share and per share data) | September 30, 2021 | December 31, 2020 | |||||||||
(Unaudited) | |||||||||||
CURRENT ASSETS | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Accounts receivable, net of allowance of $ | |||||||||||
Prepaid expenses | |||||||||||
Other current assets | |||||||||||
Total Current Assets | |||||||||||
PROPERTY, PLANT AND EQUIPMENT | |||||||||||
Property, plant and equipment, net | |||||||||||
INTANGIBLE ASSETS AND GOODWILL | |||||||||||
Indefinite-lived intangibles - licenses | |||||||||||
Other intangibles, net | |||||||||||
Goodwill | |||||||||||
OTHER ASSETS | |||||||||||
Operating lease right-of-use assets | |||||||||||
Other assets | |||||||||||
Total Assets | $ | $ | |||||||||
CURRENT LIABILITIES | |||||||||||
Accounts payable | $ | $ | |||||||||
Current operating lease liabilities | |||||||||||
Accrued expenses | |||||||||||
Accrued interest | |||||||||||
Deferred revenue | |||||||||||
Current portion of long-term debt | |||||||||||
Total Current Liabilities | |||||||||||
Long-term debt | |||||||||||
Series A Mandatorily Redeemable Preferred Stock, par value $ | |||||||||||
Noncurrent operating lease liabilities | |||||||||||
Deferred income taxes | |||||||||||
Other long-term liabilities | |||||||||||
Commitments and contingent liabilities (Note 6) | |||||||||||
STOCKHOLDERS’ EQUITY | |||||||||||
Noncontrolling interest | |||||||||||
Preferred stock, par value $ | |||||||||||
Class A Common Stock, par value $ | |||||||||||
Class B Common Stock, par value $ | |||||||||||
Special Warrants, | |||||||||||
Additional paid-in capital | |||||||||||
Accumulated deficit | ( | ( | |||||||||
Accumulated other comprehensive income (loss) | ( | ||||||||||
Cost of shares ( | ( | ( | |||||||||
Total Stockholders' Equity | |||||||||||
Total Liabilities and Stockholders' Equity | $ | $ |
(In thousands, except per share data) | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Revenue | $ | $ | $ | $ | |||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Direct operating expenses (excludes depreciation and amortization) | |||||||||||||||||||||||
Selling, general and administrative expenses (excludes depreciation and amortization) | |||||||||||||||||||||||
Depreciation and amortization | |||||||||||||||||||||||
Impairment charges | |||||||||||||||||||||||
Other operating expense, net | |||||||||||||||||||||||
Operating income (loss) | ( | ||||||||||||||||||||||
Interest expense, net | |||||||||||||||||||||||
Gain (loss) on investments, net | ( | ( | |||||||||||||||||||||
Equity in loss of nonconsolidated affiliates | ( | ( | ( | ( | |||||||||||||||||||
Other expense, net | ( | ( | ( | ( | |||||||||||||||||||
Loss before income taxes | ( | ( | ( | ( | |||||||||||||||||||
Income tax benefit (expense) | ( | ||||||||||||||||||||||
Net income (loss) | ( | ( | ( | ||||||||||||||||||||
Less amount attributable to noncontrolling interest | |||||||||||||||||||||||
Net income (loss) attributable to the Company | $ | $ | ( | $ | ( | $ | ( | ||||||||||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||||||||
Foreign currency translation adjustments | ( | ( | |||||||||||||||||||||
Other comprehensive income (loss), net of tax | ( | ( | |||||||||||||||||||||
Comprehensive income (loss) | ( | ( | ( | ||||||||||||||||||||
Less amount attributable to noncontrolling interest | |||||||||||||||||||||||
Comprehensive income (loss) attributable to the Company | $ | $ | ( | $ | ( | $ | ( | ||||||||||||||||
Net income (loss) attributable to the Company per common share: | |||||||||||||||||||||||
Basic | $ | $ | ( | $ | ( | $ | ( | ||||||||||||||||
Weighted average common shares outstanding - Basic | |||||||||||||||||||||||
Diluted | $ | $ | ( | $ | ( | $ | ( | ||||||||||||||||
Weighted average common shares outstanding - Diluted | |||||||||||||||||||||||
(In thousands, except share data) | Controlling Interest | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Shares(1) | Non- controlling Interest | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Treasury Stock | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A Shares | Class B Shares | Special Warrants | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balances at June 30, 2021 | $ | $ | $ | $ | ( | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Vesting of restricted stock and other | — | ( | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion of Special Warrants to Class A and Class B Shares | ( | — | ( | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion of Class B Shares to Class A Shares | ( | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Other | ( | — | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Balances at September 30, 2021 | $ | $ | $ | $ | ( | $ | ( | $ | ( | $ |
(In thousands, except share data) | Controlling Interest | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Shares(1) | Non- controlling Interest | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Treasury Stock | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A Shares | Class B Shares | Special Warrants | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balances at June 30, 2020 | $ | $ | $ | $ | ( | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Vesting of restricted stock | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion of Special Warrants to Class A and Class B Shares | ( | — | ( | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion of Class B Shares to Class A Shares | ( | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balances at September 30, 2020 | $ | $ | $ | $ | ( | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||||||||||||||||||
(In thousands, except share data) | Controlling Interest | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Shares(1) | Non- controlling Interest | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A Shares | Class B Shares | Special Warrants | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balances at December 31, 2020 | $ | $ | $ | $ | ( | $ | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Vesting of restricted stock and other | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion of Special Warrants to Class A and Class B Shares | ( | — | ( | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion of Class B Shares to Class A Shares | ( | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Other | ( | — | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Balances at September 30, 2021 | $ | $ | $ | $ | ( | $ | ( | $ | ( | $ |
(In thousands, except share data) | Controlling Interest | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Shares(1) | Non- controlling Interest | Common Stock | Additional Paid-in Capital | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Loss | Treasury Stock | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A Shares | Class B Shares | Special Warrants | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balances at December 31, 2019 | $ | $ | $ | $ | $ | ( | $ | ( | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Vesting of restricted stock | — | — | ( | — | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion of Special Warrants and Class B Shares to Class A Shares | ( | — | ( | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion of Class B Shares to Class A Shares | ( | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Other | ( | — | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balances at September 30, 2020 | $ | $ | $ | $ | ( | $ | ( | $ | ( | $ |
(In thousands) | Nine Months Ended September 30, | ||||||||||
2021 | 2020 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net loss | $ | ( | $ | ( | |||||||
Reconciling items: | |||||||||||
Impairment charges | |||||||||||
Depreciation and amortization | |||||||||||
Deferred taxes | ( | ||||||||||
Provision for doubtful accounts | |||||||||||
Amortization of deferred financing charges and note discounts, net | |||||||||||
Share-based compensation | |||||||||||
Loss on disposal of operating and other assets | |||||||||||
(Gain) Loss on investments | ( | ||||||||||
Equity in loss of nonconsolidated affiliates | |||||||||||
Barter and trade income | ( | ( | |||||||||
Other reconciling items, net | |||||||||||
Changes in operating assets and liabilities, net of effects of acquisitions and dispositions: | |||||||||||
(Increase) decrease in accounts receivable | ( | ||||||||||
Increase in prepaid expenses and other current assets | ( | ( | |||||||||
Increase in other long-term assets | ( | ( | |||||||||
Increase (decrease) in accounts payable and accrued expenses | ( | ||||||||||
Increase (decrease) in accrued interest | ( | ||||||||||
Increase in deferred income | |||||||||||
Increase in other long-term liabilities | |||||||||||
Cash provided by operating activities | |||||||||||
Cash flows from investing activities: | |||||||||||
Business combinations | ( | ( | |||||||||
Proceeds from sale of other investments | |||||||||||
Purchases of property, plant and equipment | ( | ( | |||||||||
Proceeds from disposal of assets | |||||||||||
Change in other, net | ( | ( | |||||||||
Cash used for investing activities | ( | ( | |||||||||
Cash flows from financing activities: | |||||||||||
Proceeds from long-term debt and credit facilities | |||||||||||
Payments on long-term debt and credit facilities | ( | ( | |||||||||
Change in other, net | ( | ||||||||||
Cash provided by (used for) financing activities | ( | ||||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | ( | ( | |||||||||
Net increase (decrease) in cash, cash equivalents and restricted cash | ( | ||||||||||
Cash, cash equivalents and restricted cash at beginning of period | |||||||||||
Cash, cash equivalents and restricted cash at end of period | $ | $ | |||||||||
SUPPLEMENTAL DISCLOSURES: | |||||||||||
Cash paid for interest | $ | $ | |||||||||
Cash paid for income taxes | |||||||||||
(In thousands) | September 30, 2021 | December 31, 2020 | |||||||||
Cash and cash equivalents | $ | $ | |||||||||
Restricted cash included in: | |||||||||||
Other current assets | |||||||||||
Other assets | |||||||||||
Total cash, cash equivalents and restricted cash in the Statement of Cash Flows | $ | $ |
(In thousands) | Multiplatform Group | Digital Audio Group | Audio & Media Services Group | Eliminations | Consolidated | ||||||||||||||||||||||||
Three Months Ended September 30, 2021 | |||||||||||||||||||||||||||||
Revenue from contracts with customers: | |||||||||||||||||||||||||||||
Broadcast Radio(1) | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Networks(2) | |||||||||||||||||||||||||||||
Sponsorship and Events(3) | |||||||||||||||||||||||||||||
Digital, excluding Podcast(4) | ( | ||||||||||||||||||||||||||||
Podcast(5) | |||||||||||||||||||||||||||||
Audio & Media Services(6) | ( | ||||||||||||||||||||||||||||
Other(7) | ( | ||||||||||||||||||||||||||||
Total | ( | ||||||||||||||||||||||||||||
Revenue from leases(8) | |||||||||||||||||||||||||||||
Revenue, total | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||
Three Months Ended September 30, 2020 | |||||||||||||||||||||||||||||
Revenue from contracts with customers: | |||||||||||||||||||||||||||||
Broadcast Radio(1) | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Networks(2) | |||||||||||||||||||||||||||||
Sponsorship and Events(3) | |||||||||||||||||||||||||||||
Digital, excluding Podcast(4) | |||||||||||||||||||||||||||||
Podcast(5) | |||||||||||||||||||||||||||||
Audio & Media Services(6) | ( | ||||||||||||||||||||||||||||
Other(7) | ( | ||||||||||||||||||||||||||||
Total | ( | ||||||||||||||||||||||||||||
Revenue from leases(8) | |||||||||||||||||||||||||||||
Revenue, total | $ | $ | $ | $ | ( | $ |
(In thousands) | Multiplatform Group | Digital Audio Group | Audio & Media Services Group | Eliminations | Consolidated | ||||||||||||||||||||||||
Nine Months Ended September 30, 2021 | |||||||||||||||||||||||||||||
Revenue from contracts with customers: | |||||||||||||||||||||||||||||
Broadcast Radio(1) | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Networks(2) | |||||||||||||||||||||||||||||
Sponsorship and Events(3) | |||||||||||||||||||||||||||||
Digital, excluding Podcast(4) | ( | ||||||||||||||||||||||||||||
Podcast(5) | |||||||||||||||||||||||||||||
Audio & Media Services(6) | ( | ||||||||||||||||||||||||||||
Other(7) | ( | ||||||||||||||||||||||||||||
Total | ( | ||||||||||||||||||||||||||||
Revenue from leases(8) | |||||||||||||||||||||||||||||
Revenue, total | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||
Nine Months Ended September 30, 2020 | |||||||||||||||||||||||||||||
Revenue from contracts with customers: | |||||||||||||||||||||||||||||
Broadcast Radio(1) | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Networks(2) | |||||||||||||||||||||||||||||
Sponsorship and Events(3) | |||||||||||||||||||||||||||||
Digital, excluding Podcast(4) | |||||||||||||||||||||||||||||
Podcast(5) | |||||||||||||||||||||||||||||
Audio & Media Services(6) | ( | ||||||||||||||||||||||||||||
Other(7) | ( | ||||||||||||||||||||||||||||
Total | ( | ||||||||||||||||||||||||||||
Revenue from leases(8) | |||||||||||||||||||||||||||||
Revenue, total | $ | $ | $ | $ | ( | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
(In thousands) | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
Trade and barter revenues | $ | $ | $ | $ | |||||||||||||||||||
Trade and barter expenses | |||||||||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
(In thousands) | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
Deferred revenue from contracts with customers: | |||||||||||||||||||||||
Beginning balance(1) | $ | $ | $ | $ | |||||||||||||||||||
Revenue recognized, included in beginning balance | ( | ( | ( | ( | |||||||||||||||||||
Additions, net of revenue recognized during period, and other | |||||||||||||||||||||||
Ending balance | $ | $ | $ | $ | |||||||||||||||||||
(In thousands) | |||||
2021 | $ | ||||
2022 | |||||
2023 | |||||
2024 | |||||
2025 | |||||
Thereafter | |||||
Total | $ |
Nine Months Ended September 30, | |||||||||||
(In thousands) | 2021 | 2020 | |||||||||
Cash paid for amounts included in measurement of operating lease liabilities | $ | $ | |||||||||
Lease liabilities arising from obtaining right-of-use assets(1) |
(In thousands) | September 30, 2021 | December 31, 2020 | |||||||||
Land, buildings and improvements | $ | $ | |||||||||
Towers, transmitters and studio equipment | |||||||||||
Computer equipment and software | |||||||||||
Furniture and other equipment | |||||||||||
Construction in progress | |||||||||||
Less: accumulated depreciation | |||||||||||
Property, plant and equipment, net | $ | $ |
(In thousands) | September 30, 2021 | December 31, 2020 | |||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | ||||||||||||||||||||
Customer / advertiser relationships | $ | $ | ( | $ | $ | ( | |||||||||||||||||
Talent and other contracts | ( | ( | |||||||||||||||||||||
Trademarks and tradenames | ( | ( | |||||||||||||||||||||
Other | ( | ( | |||||||||||||||||||||
Total | $ | $ | ( | $ | $ | ( |
(In thousands) | |||||
2022 | $ | ||||
2023 | |||||
2024 | |||||
2025 | |||||
2026 |
(In thousands) | Audio | Audio & Media Services | Consolidated | ||||||||||||||
Balance as of December 31, 2019 | $ | $ | $ | ||||||||||||||
Impairment | ( | ( | |||||||||||||||
Acquisitions | |||||||||||||||||
Dispositions | ( | ( | |||||||||||||||
Foreign currency | |||||||||||||||||
Balance as of December 31, 2020 | $ | $ | $ |
(In thousands) | Multiplatform Group | Digital Audio Group | Audio & Media Services Group | Consolidated | |||||||||||||||||||
Balance as of January 1, 2021 | $ | $ | $ | $ | |||||||||||||||||||
Acquisitions | |||||||||||||||||||||||
Dispositions | ( | ( | |||||||||||||||||||||
Foreign currency | ( | ( | |||||||||||||||||||||
Balance as of September 30, 2021 | $ | $ | $ | $ |
(In thousands) | September 30, 2021 | December 31, 2020 | |||||||||
Term Loan Facility due 2026 | $ | $ | |||||||||
Incremental Term Loan Facility due 2026 | |||||||||||
Asset-based Revolving Credit Facility due 2023(1) | |||||||||||
Other secured subsidiary debt(2) | |||||||||||
Total consolidated secured debt | |||||||||||
Other unsecured subsidiary debt | |||||||||||
Original issue discount | ( | ( | |||||||||
Long-term debt fees | ( | ( | |||||||||
Total debt | |||||||||||
Less: Current portion | |||||||||||
Total long-term debt | $ | $ |
(In thousands) | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Current tax expense | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Deferred tax benefit (expense) | ( | ||||||||||||||||||||||
Income tax benefit (expense) | $ | $ | $ | ( | $ |
September 30, 2021 | |||||
(Unaudited) | |||||
Class A Common Stock, par value $ | |||||
Class B Common Stock, par value $ | |||||
Special Warrants | |||||
Total Class A Common Stock, Class B Common Stock and Special Warrants issued |
(In thousands, except per share data) | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
NUMERATOR: | |||||||||||||||||||||||
Net income (loss) attributable to the Company – common shares | $ | $ | ( | $ | ( | $ | ( | ||||||||||||||||
DENOMINATOR(1): | |||||||||||||||||||||||
Weighted average common shares outstanding - basic | |||||||||||||||||||||||
Stock options and restricted stock(2): | |||||||||||||||||||||||
Weighted average common shares outstanding - diluted | |||||||||||||||||||||||
Net income (loss) attributable to the Company per common share: | |||||||||||||||||||||||
Basic | $ | $ | ( | $ | ( | $ | ( | ||||||||||||||||
Diluted | $ | $ | ( | $ | ( | $ | ( |
Segments | |||||||||||||||||||||||||||||||||||
(In thousands) | Multiplatform Group | Digital Audio Group | Audio & Media Services Group | Corporate and other reconciling items | Eliminations | Consolidated | |||||||||||||||||||||||||||||
Three Months Ended September 30, 2021 | |||||||||||||||||||||||||||||||||||
Revenue | $ | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||
Operating expenses(1) | ( | ||||||||||||||||||||||||||||||||||
Segment Adjusted EBITDA(2) | $ | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||
Depreciation and amortization | ( | ||||||||||||||||||||||||||||||||||
Impairment charges | ( | ||||||||||||||||||||||||||||||||||
Other operating expense, net | ( | ||||||||||||||||||||||||||||||||||
Restructuring expenses | ( | ||||||||||||||||||||||||||||||||||
Share-based compensation expense | ( | ||||||||||||||||||||||||||||||||||
Operating income | $ | ||||||||||||||||||||||||||||||||||
Intersegment revenues | $ | $ | $ | $ | — | $ | — | $ | |||||||||||||||||||||||||||
Capital expenditures | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Share-based compensation expense | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Segments | |||||||||||||||||||||||||||||||||||
(In thousands) | Multiplatform Group | Digital Audio Group | Audio & Media Services Group | Corporate and other reconciling items | Eliminations | Consolidated | |||||||||||||||||||||||||||||
Three Months Ended September 30, 2020 | |||||||||||||||||||||||||||||||||||
Revenue | $ | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||
Operating expenses(1) | ( | ||||||||||||||||||||||||||||||||||
Segment Adjusted EBITDA(2) | $ | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||
Depreciation and amortization | ( | ||||||||||||||||||||||||||||||||||
Other operating expense, net | ( | ||||||||||||||||||||||||||||||||||
Restructuring expenses | ( | ||||||||||||||||||||||||||||||||||
Share-based compensation expense | ( | ||||||||||||||||||||||||||||||||||
Operating income | $ | ||||||||||||||||||||||||||||||||||
Intersegment revenues | $ | $ | $ | $ | — | $ | — | $ | |||||||||||||||||||||||||||
Capital expenditures | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Share-based compensation expense | $ | $ | $ | $ | $ | $ |
Segments | |||||||||||||||||||||||||||||||||||
(In thousands) | Multiplatform Group | Digital Audio Group | Audio & Media Services Group | Corporate and other reconciling items | Eliminations | Consolidated | |||||||||||||||||||||||||||||
Nine Months Ended September 30, 2021 | |||||||||||||||||||||||||||||||||||
Revenue | $ | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||
Operating expenses(1) | ( | ||||||||||||||||||||||||||||||||||
Segment Adjusted EBITDA(2) | $ | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||
Depreciation and amortization | ( | ||||||||||||||||||||||||||||||||||
Impairment charges | ( | ||||||||||||||||||||||||||||||||||
Other operating expense, net | ( | ||||||||||||||||||||||||||||||||||
Restructuring expenses | ( | ||||||||||||||||||||||||||||||||||
Share-based compensation expense | ( | ||||||||||||||||||||||||||||||||||
Operating income | $ | ||||||||||||||||||||||||||||||||||
Intersegment revenues | $ | $ | $ | $ | — | $ | — | $ | |||||||||||||||||||||||||||
Capital expenditures | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Share-based compensation expense | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Segments | |||||||||||||||||||||||||||||||||||
(In thousands) | Multiplatform Group | Digital Audio Group | Audio & Media Services Group | Corporate and other reconciling items | Eliminations | Consolidated | |||||||||||||||||||||||||||||
Nine Months Ended September 30, 2020 | |||||||||||||||||||||||||||||||||||
Revenue | $ | $ | $ | $ | $ | ( | $ | ||||||||||||||||||||||||||||
Operating expenses(1) | ( | ||||||||||||||||||||||||||||||||||
Segment Adjusted EBITDA(2) | $ | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||
Depreciation and amortization | ( | ||||||||||||||||||||||||||||||||||
Impairment charges | ( | ||||||||||||||||||||||||||||||||||
Other operating expense, net | ( | ||||||||||||||||||||||||||||||||||
Restructuring expenses | ( | ||||||||||||||||||||||||||||||||||
Share-based compensation expense | ( | ||||||||||||||||||||||||||||||||||
Operating loss | $ | ( | |||||||||||||||||||||||||||||||||
Intersegment revenues | $ | $ | $ | $ | — | $ | — | $ | |||||||||||||||||||||||||||
Capital expenditures | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Share-based compensation expense | $ | $ | $ | $ | $ | $ |
(In thousands) | Three Months Ended September 30, | % | |||||||||||||||
2021 | 2020 | Change | |||||||||||||||
Revenue | $ | 928,051 | $ | 744,406 | 24.7 | % | |||||||||||
Operating income | $ | 80,111 | $ | 39,395 | 103.4 | % | |||||||||||
Net income (loss) | $ | 3,673 | $ | (32,112) | NM | ||||||||||||
Cash provided by operating activities | $ | 95,736 | $ | 33,252 | 187.9 | % | |||||||||||
Adjusted EBITDA(1) | $ | 230,213 | $ | 162,124 | 42.0 | % | |||||||||||
Free cash flow(2) | $ | 45,462 | $ | 14,275 | 218.5 | % | |||||||||||
(In thousands) | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Revenue | $ | 928,051 | $ | 744,406 | $ | 2,496,321 | $ | 2,012,688 | |||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Direct operating expenses (excludes depreciation and amortization) | 325,766 | 270,862 | 939,094 | 808,925 | |||||||||||||||||||
Selling, general and administrative expenses (excludes depreciation and amortization) | 390,086 | 333,095 | 1,105,056 | 1,018,258 | |||||||||||||||||||
Depreciation and amortization | 108,100 | 99,379 | 343,408 | 299,494 | |||||||||||||||||||
Impairment charges | 11,647 | — | 49,391 | 1,733,235 | |||||||||||||||||||
Other operating expense, net | 12,341 | 1,675 | 27,491 | 3,247 | |||||||||||||||||||
Operating income (loss) | 80,111 | 39,395 | 31,881 | (1,850,471) | |||||||||||||||||||
Interest expense, net | 82,481 | 85,562 | 252,489 | 257,614 | |||||||||||||||||||
Gain (loss) on investments, net | (10,367) | 62 | 39,468 | (8,613) | |||||||||||||||||||
Equity in loss of nonconsolidated affiliates | (1,056) | (58) | (1,115) | (653) | |||||||||||||||||||
Other expense, net | (9,681) | (1,177) | (10,851) | (10,295) | |||||||||||||||||||
Loss before income taxes | (23,474) | (47,340) | (193,106) | (2,127,646) | |||||||||||||||||||
Income tax benefit (expense) | 27,147 | 15,228 | (77,237) | 209,481 | |||||||||||||||||||
Net income (loss) | 3,673 | (32,112) | (270,343) | (1,918,165) | |||||||||||||||||||
Less amount attributable to noncontrolling interest | 493 | — | 486 | — | |||||||||||||||||||
Net income (loss) attributable to the Company | $ | 3,180 | $ | (32,112) | $ | (270,829) | $ | (1,918,165) |
(In thousands) | Three Months Ended September 30, | % | Nine Months Ended September 30, | % | |||||||||||||||||||||||||||||||
2021 | 2020 | Change | 2021 | 2020 | Change | ||||||||||||||||||||||||||||||
Broadcast Radio | $ | 483,456 | $ | 404,460 | 19.5 | % | $ | 1,293,134 | $ | 1,110,155 | 16.5 | % | |||||||||||||||||||||||
Networks | 127,920 | 118,982 | 7.5 | % | 366,592 | 349,889 | 4.8 | % | |||||||||||||||||||||||||||
Sponsorship and Events | 42,663 | 28,898 | 47.6 | % | 93,641 | 73,055 | 28.2 | % | |||||||||||||||||||||||||||
Other | 4,940 | 2,757 | 79.2 | % | 9,359 | 8,724 | 7.3 | % | |||||||||||||||||||||||||||
Multiplatform Group | 658,979 | 555,097 | 18.7 | % | 1,762,726 | 1,541,823 | 14.3 | % | |||||||||||||||||||||||||||
Digital, excluding Podcast | 141,573 | 93,574 | 51.3 | % | 405,276 | 242,479 | 67.1 | % | |||||||||||||||||||||||||||
Podcast | 64,196 | 22,626 | 183.7 | % | 155,976 | 59,724 | 161.2 | % | |||||||||||||||||||||||||||
Digital Audio Group | 205,769 | 116,200 | 77.1 | % | 561,252 | 302,203 | 85.7 | % | |||||||||||||||||||||||||||
Audio & Media Services Group | 66,078 | 75,039 | (11.9) | % | 182,390 | 174,517 | 4.5 | % | |||||||||||||||||||||||||||
Eliminations | (2,775) | (1,930) | (10,047) | (5,855) | |||||||||||||||||||||||||||||||
Revenue, total | $ | 928,051 | $ | 744,406 | 24.7 | % | $ | 2,496,321 | $ | 2,012,688 | 24.0 | % |
(In thousands) | Three Months Ended September 30, | % | Nine Months Ended September 30, | % | |||||||||||||||||||||||||||||||
2021 | 2020 | Change | 2021 | 2020 | Change | ||||||||||||||||||||||||||||||
Revenue | $ | 658,979 | $ | 555,097 | 18.7 | % | $ | 1,762,726 | $ | 1,541,823 | 14.3 | % | |||||||||||||||||||||||
Operating expenses(1) | 450,549 | 416,131 | 8.3 | % | 1,268,107 | 1,265,094 | 0.2 | % | |||||||||||||||||||||||||||
Segment Adjusted EBITDA | $ | 208,430 | $ | 138,966 | 50.0 | % | $ | 494,619 | $ | 276,729 | 78.7 | % | |||||||||||||||||||||||
Segment Adjusted EBITDA margin | 31.6 | % | 25.0 | % | 28.1 | % | 17.9 | % |
(In thousands) | Three Months Ended September 30, | % | Nine Months Ended September 30, | % | |||||||||||||||||||||||||||||||
2021 | 2020 | Change | 2021 | 2020 | Change | ||||||||||||||||||||||||||||||
Revenue | $ | 205,769 | $ | 116,200 | 77.1 | % | $ | 561,252 | $ | 302,203 | 85.7 | % | |||||||||||||||||||||||
Operating expenses(1) | 138,646 | 81,042 | 71.1 | % | 399,828 | 231,589 | 72.6 | % | |||||||||||||||||||||||||||
Segment Adjusted EBITDA | $ | 67,123 | $ | 35,158 | 90.9 | % | $ | 161,424 | $ | 70,614 | 128.6 | % | |||||||||||||||||||||||
Segment Adjusted EBITDA margin | 32.6 | % | 30.3 | % | 28.8 | % | 23.4 | % |
(In thousands) | Three Months Ended September 30, | % | Nine Months Ended September 30, | % | |||||||||||||||||||||||||||||||
2021 | 2020 | Change | 2021 | 2020 | Change | ||||||||||||||||||||||||||||||
Revenue | $ | 66,078 | $ | 75,039 | (11.9) | % | $ | 182,390 | $ | 174,517 | 4.5 | % | |||||||||||||||||||||||
Operating expenses(1) | 43,656 | 46,247 | (5.6) | % | 124,148 | 127,774 | (2.8) | % | |||||||||||||||||||||||||||
Segment Adjusted EBITDA | $ | 22,422 | $ | 28,792 | (22.1) | % | $ | 58,242 | $ | 46,743 | 24.6 | % | |||||||||||||||||||||||
Segment Adjusted EBITDA margin | 33.9 | % | 38.4 | % | 31.9 | % | 26.8 | % |
(In thousands) | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Operating income (loss) | $ | 80,111 | $ | 39,395 | $ | 31,881 | $ | (1,850,471) | |||||||||||||||
Depreciation and amortization | 108,100 | 99,379 | 343,408 | 299,494 | |||||||||||||||||||
Impairment charges | 11,647 | — | 49,391 | 1,733,235 | |||||||||||||||||||
Other operating expense, net | 12,341 | 1,675 | 27,491 | 3,247 | |||||||||||||||||||
Share-based compensation expense | 5,993 | 5,885 | 17,581 | 14,728 | |||||||||||||||||||
Restructuring expenses | 12,021 | 15,790 | 47,216 | 72,947 | |||||||||||||||||||
Adjusted EBITDA(1) | $ | 230,213 | $ | 162,124 | $ | 516,968 | $ | 273,180 |
(In thousands) | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Net income (loss) | $ | 3,673 | $ | (32,112) | $ | (270,343) | $ | (1,918,165) | |||||||||||||||
Income tax (benefit) expense | (27,147) | (15,228) | 77,237 | (209,481) | |||||||||||||||||||
Interest expense, net | 82,481 | 85,562 | 252,489 | 257,614 | |||||||||||||||||||
Depreciation and amortization | 108,100 | 99,379 | 343,408 | 299,494 | |||||||||||||||||||
EBITDA | $ | 167,107 | $ | 137,601 | $ | 402,791 | $ | (1,570,538) | |||||||||||||||
Loss (gain) on investments, net | 10,367 | (62) | (39,468) | 8,613 | |||||||||||||||||||
Other expense, net | 9,681 | 1,177 | 10,851 | 10,295 | |||||||||||||||||||
Equity in loss of nonconsolidated affiliates | 1,056 | 58 | 1,115 | 653 | |||||||||||||||||||
Impairment charges | 11,647 | — | 49,391 | 1,733,235 | |||||||||||||||||||
Other operating expense, net | 12,341 | 1,675 | 27,491 | 3,247 | |||||||||||||||||||
Share-based compensation expense | 5,993 | 5,885 | 17,581 | 14,728 | |||||||||||||||||||
Restructuring expenses | 12,021 | 15,790 | 47,216 | 72,947 | |||||||||||||||||||
Adjusted EBITDA(1) | $ | 230,213 | $ | 162,124 | $ | 516,968 | $ | 273,180 |
(In thousands) | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Cash provided by operating activities | $ | 95,736 | $ | 33,252 | $ | 196,593 | $ | 136,161 | |||||||||||||||
Purchases of property, plant and equipment | (50,274) | (18,977) | (101,335) | (58,523) | |||||||||||||||||||
Free cash flow(1) | $ | 45,462 | $ | 14,275 | $ | 95,258 | $ | 77,638 | |||||||||||||||
(In thousands) | Nine Months Ended September 30, | ||||||||||
2021 | 2020 | ||||||||||
Cash provided by (used for): | |||||||||||
Operating activities | $ | 196,593 | $ | 136,161 | |||||||
Investing activities | $ | (259,898) | $ | (71,172) | |||||||
Financing activities | $ | (288,118) | $ | 248,637 | |||||||
Free Cash Flow(1) | $ | 95,258 | $ | 77,638 |
(In thousands) | September 30, 2021 | December 31, 2020 | |||||||||
Term Loan Facility due 20261 | $ | 1,864,032 | $ | 2,080,259 | |||||||
Incremental Term Loan Facility due 20261 | 401,220 | 447,750 | |||||||||
Asset-based Revolving Credit Facility due 2023 | — | — | |||||||||
6.375% Senior Secured Notes due 2026 | 800,000 | 800,000 | |||||||||
5.25% Senior Secured Notes due 2027 | 750,000 | 750,000 | |||||||||
4.75% Senior Secured Notes due 2028 | 500,000 | 500,000 | |||||||||
Other Secured Subsidiary Debt | 5,369 | 22,753 | |||||||||
Total Secured Debt | $ | 4,320,621 | $ | 4,600,762 | |||||||
8.375% Senior Unsecured Notes due 2027 | 1,450,000 | 1,450,000 | |||||||||
Other Subsidiary Debt | — | 6,782 | |||||||||
Purchase accounting adjustments and original issue discount | (14,156) | (18,817) | |||||||||
Long-term debt fees | (19,090) | (21,797) | |||||||||
Total Debt | $ | 5,737,375 | $ | 6,016,930 | |||||||
Less: Cash and cash equivalents | 369,094 | 720,662 | |||||||||
$ | 5,368,281 | $ | 5,296,268 |
(In thousands) | ||||||||||||||||||||
Description | Revenue Growth Rate | Profit Margin | Discount Rate | |||||||||||||||||
FCC licenses | $ | 405,630 | $ | 213,548 | $ | 459,449 |
(In thousands) | ||||||||||||||||||||
Description | Revenue Growth Rate | Profit Margin | Discount Rate | |||||||||||||||||
Multiplatform | $ | 670,000 | $ | 240,000 | $ | 650,000 | ||||||||||||||
Digital | $ | 330,000 | $ | 100,000 | $ | 270,000 | ||||||||||||||
Katz Media | $ | 60,000 | $ | 20,000 | $ | 50,000 | ||||||||||||||
Other | $ | 30,000 | $ | 10,000 | $ | 20,000 |
Period | Total Number of Shares Purchased(1) | Average Price Paid per Share(1) | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Plans or Programs | |||||||||||||||||||
July 1 through July 31 | 1,716 | $ | 26.07 | — | $ | — | |||||||||||||||||
August 1 through August 31 | 37,019 | 23.09 | — | — | |||||||||||||||||||
September 1 through September 30 | 690 | 24.44 | — | — | |||||||||||||||||||
Total | 39,425 | $ | 23.24 | — | $ | — |
Exhibit Number | Description | ||||||||||
2.1 | |||||||||||
3.1 | |||||||||||
3.2 | |||||||||||
10.1 | |||||||||||
31.1* | |||||||||||
31.2* | |||||||||||
32.1** | |||||||||||
32.2** | |||||||||||
101.INS* | Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | ||||||||||
101.SCH* | Inline XBRL Taxonomy Extension Schema Document | ||||||||||
101.CAL* | Inline XBRL Taxonomy Extension Calculation Linkbase Document | ||||||||||
101.LAB* | Inline XBRL Taxonomy Extension Label Linkbase Document | ||||||||||
101.PRE* | Inline XBRL Taxonomy Extension Presentation Linkbase Document | ||||||||||
101.DEF* | Inline XBRL Taxonomy Extension Definition Document | ||||||||||
104* | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
IHEARTMEDIA, INC. | |||||
November 4, 2021 | /s/ SCOTT D. HAMILTON | ||||
Scott D. Hamilton | |||||
Senior Vice President, Chief Accounting Officer and Assistant Secretary |
/s/ Robert W. Pittman | ||
Robert W. Pittman | ||
Chairman and Chief Executive Officer |
/s/ Richard J. Bressler | ||
Richard J. Bressler | ||
President and Chief Financial Officer |
By: | /s/ Robert W. Pittman | ||||
Name: | Robert W. Pittman | ||||
Title: | Chairman and Chief Executive Officer |
By: | /s/ Richard J. Bressler | ||||
Name: | Richard J. Bressler | ||||
Title: | President and Chief Financial Officer |
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (UNAUDITED) - USD ($) $ in Thousands |
Total |
Class B Shares |
Common Shares |
Common Shares
Class A Shares
|
Common Shares
Class B Shares
|
Common Shares
Special Warrants
|
Non- controlling Interest |
Additional Paid-in Capital |
Accumulated Deficit |
Accumulated Other Comprehensive Income (Loss) |
Treasury Stock |
|||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Beginning balance (in shares) at Dec. 31, 2019 | [1] | 57,776,204 | 6,904,910 | 81,046,593 | ||||||||||||||||||
Beginning balance at Dec. 31, 2019 | $ 2,945,441 | $ 65 | $ 9,123 | $ 2,826,533 | $ 112,548 | $ (750) | $ (2,078) | |||||||||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||||||||||||
Net income | (1,918,165) | (1,918,165) | ||||||||||||||||||||
Vesting of restricted stock and other (in shares) | [1] | 667,493 | ||||||||||||||||||||
Vesting of restricted stock and other | (997) | (23) | (974) | |||||||||||||||||||
Share-based compensation | 14,383 | 14,383 | ||||||||||||||||||||
Conversion of Special Warrants to Class A and Class B Shares (in shares) | [1] | 4,990,132 | 2,049 | 4,992,181 | ||||||||||||||||||
Conversion of Special Warrants to Class A and Class B Shares | $ 0 | 5 | (5) | |||||||||||||||||||
Conversion of Class B Shares to Class A Shares (in shares) | 13,323 | 13,323 | [1] | 13,323 | [1] | |||||||||||||||||
Other (in shares) | [1] | 2,982 | ||||||||||||||||||||
Other | $ (1,469) | (1,469) | ||||||||||||||||||||
Other comprehensive income (loss) | 455 | 455 | ||||||||||||||||||||
Ending balance (in shares) at Sep. 30, 2020 | [1],[2] | 63,447,152 | 6,893,636 | 76,051,430 | ||||||||||||||||||
Ending balance at Sep. 30, 2020 | 1,039,648 | 70 | 9,123 | 2,840,888 | (1,807,086) | (295) | (3,052) | |||||||||||||||
Beginning balance (in shares) at Jun. 30, 2020 | [2] | 61,432,341 | 6,900,195 | 78,038,412 | ||||||||||||||||||
Beginning balance at Jun. 30, 2020 | 1,065,642 | 68 | 9,123 | 2,835,005 | (1,774,974) | (562) | (3,018) | |||||||||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||||||||||||
Net income | (32,112) | (32,112) | ||||||||||||||||||||
Vesting of restricted stock and other (in shares) | [2] | 21,270 | ||||||||||||||||||||
Vesting of restricted stock and other | (34) | (34) | ||||||||||||||||||||
Share-based compensation | 5,885 | 5,885 | ||||||||||||||||||||
Conversion of Special Warrants to Class A and Class B Shares (in shares) | [2] | 1,986,278 | 704 | 1,986,982 | ||||||||||||||||||
Conversion of Special Warrants to Class A and Class B Shares | 0 | 2 | (2) | |||||||||||||||||||
Conversion of Class B Shares to Class A Shares (in shares) | 7,263 | 7,263 | [2] | 7,263 | [2] | |||||||||||||||||
Other comprehensive income (loss) | 267 | 267 | ||||||||||||||||||||
Ending balance (in shares) at Sep. 30, 2020 | [1],[2] | 63,447,152 | 6,893,636 | 76,051,430 | ||||||||||||||||||
Ending balance at Sep. 30, 2020 | 1,039,648 | 70 | 9,123 | 2,840,888 | (1,807,086) | (295) | (3,052) | |||||||||||||||
Beginning balance (in shares) at Dec. 31, 2020 | [3] | 64,726,864 | 6,886,925 | 74,835,899 | ||||||||||||||||||
Beginning balance at Dec. 31, 2020 | 1,050,817 | 72 | 8,350 | 2,849,020 | (1,803,620) | 194 | (3,199) | |||||||||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||||||||||||
Net income | (270,343) | 486 | (270,829) | |||||||||||||||||||
Vesting of restricted stock and other (in shares) | [3] | 1,027,252 | ||||||||||||||||||||
Vesting of restricted stock and other | 915 | 3,863 | (2,948) | |||||||||||||||||||
Share-based compensation | 17,581 | 17,581 | ||||||||||||||||||||
Conversion of Special Warrants to Class A and Class B Shares (in shares) | [3] | 47,197,139 | 22,337,312 | 69,534,451 | ||||||||||||||||||
Conversion of Special Warrants to Class A and Class B Shares | 0 | 70 | (70) | |||||||||||||||||||
Conversion of Class B Shares to Class A Shares (in shares) | 6,718,576 | 6,718,576 | [3] | 6,718,576 | [3] | |||||||||||||||||
Other (in shares) | [3] | 2,982 | ||||||||||||||||||||
Other | (562) | (562) | ||||||||||||||||||||
Other comprehensive income (loss) | (387) | (387) | ||||||||||||||||||||
Ending balance (in shares) at Sep. 30, 2021 | [3],[4] | 119,669,831 | 22,505,661 | 5,304,430 | ||||||||||||||||||
Ending balance at Sep. 30, 2021 | 798,021 | 142 | 8,274 | 2,870,394 | (2,074,449) | (193) | (6,147) | |||||||||||||||
Beginning balance (in shares) at Jun. 30, 2021 | [4] | 118,261,575 | 23,636,512 | 5,365,128 | ||||||||||||||||||
Beginning balance at Jun. 30, 2021 | 788,845 | 142 | 7,968 | 2,863,657 | (2,077,629) | (62) | (5,231) | |||||||||||||||
Increase (Decrease) in Stockholders' Equity | ||||||||||||||||||||||
Net income | 3,673 | 493 | 3,180 | |||||||||||||||||||
Vesting of restricted stock and other (in shares) | [4] | 216,707 | ||||||||||||||||||||
Vesting of restricted stock and other | (172) | (1) | 745 | (916) | ||||||||||||||||||
Share-based compensation | 5,993 | 5,993 | ||||||||||||||||||||
Conversion of Special Warrants to Class A and Class B Shares (in shares) | 60,698 | [4] | 0 | 60,698 | [4] | |||||||||||||||||
Conversion of Special Warrants to Class A and Class B Shares | 0 | 1 | (1) | |||||||||||||||||||
Conversion of Class B Shares to Class A Shares (in shares) | 1,130,851 | 1,130,851 | [4] | 1,130,851 | [4] | |||||||||||||||||
Other | (187) | (187) | ||||||||||||||||||||
Other comprehensive income (loss) | (131) | (131) | ||||||||||||||||||||
Ending balance (in shares) at Sep. 30, 2021 | [3],[4] | 119,669,831 | 22,505,661 | 5,304,430 | ||||||||||||||||||
Ending balance at Sep. 30, 2021 | $ 798,021 | $ 142 | $ 8,274 | $ 2,870,394 | $ (2,074,449) | $ (193) | $ (6,147) | |||||||||||||||
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BASIS OF PRESENTATION |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BASIS OF PRESENTATION | BASIS OF PRESENTATION Preparation of Interim Financial Statements All references in this Quarterly Report on Form 10-Q to the “Company,” “we,” “us” and “our” refer to iHeartMedia, Inc. and its consolidated subsidiaries. The accompanying consolidated financial statements were prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and, in the opinion of management, include all normal and recurring adjustments necessary to present fairly the results of the interim periods shown. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to such SEC rules and regulations. Management believes that the disclosures made are adequate to make the information presented not misleading. The financial statements contained herein should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. As of January 1, 2021, the Company began reporting based on three reportable segments: ▪the iHeartMedia Multiplatform Group, which includes the Company's Broadcast radio, Networks and Sponsorships and Events businesses; ▪the iHeartMedia Digital Audio Group, which includes all of the Company's Digital businesses, including Podcasting; and ▪the Audio & Media Services Group, which includes Katz Media Group (“Katz Media”), a full-service media representation business, and RCS Sound Software ("RCS"), a provider of scheduling and broadcast software and services. These reporting segments reflect how senior management operates the Company and align with certain leadership and organizational changes implemented in the first quarter 2021. This structure provides improved visibility into the underlying performances, results, and margin profiles of our distinct businesses and enables senior management to better monitor trends at the operational level and address opportunities or issues as they arise via regular review of segment-level results and forecasts with operational leaders. Additionally, as of January 1, 2021, Segment Adjusted EBITDA is the segment profitability metric reported to the Company's Chief Operating Decision Maker for purposes of making decisions about allocation of resources to, and assessing performance of, each reportable segment. Segment Adjusted EBITDA is calculated as Revenue less operating expenses, excluding restructuring expenses and share-based compensation expenses. Restructuring expenses primarily include severance expenses incurred in connection with cost saving initiatives, as well as certain expenses, which, in the view of management, are outside the ordinary course of business or otherwise not representative of the Company's operations during a normal business cycle. The corresponding current and prior period segment disclosures have been recast to reflect the current segment presentation. See Note 9, Segment Data. The consolidated financial statements include the accounts of the Company and its subsidiaries. Also included in the consolidated financial statements are entities for which the Company has a controlling interest or is the primary beneficiary. Investments in companies which the Company does not control, but exercises significant influence over operating and financial policies of the company are accounted for under the equity method. All significant intercompany transactions are eliminated in the consolidation process. COVID-19 Our business has been adversely impacted by the novel coronavirus pandemic (“COVID-19”), its impact on the operating and economic environment and related, near-term advertiser spending decisions. The Company's revenue in the latter half of the month ended March 31, 2020, through the remainder of 2020 and into 2021 was significantly and negatively impacted as a result of a decline in advertising spend driven by COVID-19, and the Company's management took proactive actions during 2020, which are continuing into 2021, to expand the Company’s financial flexibility by reducing expenses and preserving cash as a result of such impact. Although our results for the third quarter of 2021 continued to be impacted by the effects of the COVID-19 pandemic, our revenue for both the three months ended June 30, 2021 and September 30, 2021 increased significantly compared to the three months ended June 30, 2020 and September 30, 2020, including revenue from our Multiplatform segment, which includes our broadcast radio, networks and sponsorship and events businesses. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security (“CARES Act”) was signed into law. The CARES Act, among other things, includes provisions relating to refundable payroll tax credits, deferment of employer side social security payments, net operating loss carryback periods, alternative minimum tax credit refunds, modifications to the net interest deduction limitations and technical corrections to tax depreciation methods for qualified improvement property. The provisions of the CARES Act resulted in an increase to allowable interest deductions of $179.4 million during 2020. In addition, the Company was able to defer the payment of $29.3 million in certain employment taxes during 2020, half of which will be due on December 31, 2021 and the other half will be due on December 31, 2022. As of September 30, 2021, the Company has claimed $12.4 million in refundable payroll tax credits related to the CARES Act provisions. As of September 30, 2021, the Company had approximately $369.1 million in cash and cash equivalents. While the Company expects COVID-19 to continue to negatively impact the results of operations, cash flows and financial position of the Company, the related financial impact cannot be reasonably estimated at this time. Based on current available liquidity, the Company expects to be able to meet its obligations as they become due over the coming year. Reclassifications and New Segment Presentation Certain prior period amounts have been reclassified to conform to the 2021 presentation. In connection with the organization and leadership changes resulting in the realignment of its reportable segments as discussed above, the Company also determined that all selling, general and administrative expenses incurred by its reportable segments and by its corporate functions would be reported together as Selling, general and administrative expenses. Amounts presented in prior years as Corporate expenses have been reclassified as Selling, general and administrative expenses to conform to the current presentation. Restricted Cash The following table provides a reconciliation of cash, cash equivalents and restricted cash reported in the Consolidated Balance Sheets to the total of the amounts reported in the Consolidated Statements of Cash Flows:
Certain Relationships and Related Party Transactions From time to time, certain companies in which the Company holds minority equity interests, purchase advertising in the ordinary course. None of these ordinary course transactions have a material impact on the Company. New Accounting Pronouncements Recently Adopted In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848) - Facilitation of the Effects of the Interbank Offered Rate Transition on Financial Reporting to provide optional relief from applying generally accepted accounting principles to contracts, hedging relationships and other transactions affected by reference rate reform. In addition, in January 2021, the FASB issued ASU No. 2021-01, Reference Rate Reform (Topic 848) – Scope, to clarify that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. The guidance is effective upon issuance and generally can be applied through December 31, 2022. The Company is currently evaluating the future impact of adoption of this standard.
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REVENUE |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
REVENUE | REVENUE Disaggregation of Revenue The following tables show revenue streams for the three and nine months ended September 30, 2021 and 2020:
(1)Broadcast Radio revenue is generated through the sale of advertising time on the Company’s domestic radio stations. (2)Networks revenue is generated through the sale of advertising on the Company’s Premiere and Total Traffic & Weather network programs and through the syndication of network programming to other media companies. (3)Sponsorship and events revenue is generated through local events and major nationally-recognized tent pole events and include sponsorship and other advertising revenue, ticket sales, and licensing, as well as endorsement and appearance fees generated by on-air talent. (4)Digital, excluding Podcast revenue is generated through the sale of streaming and display advertisements on digital platforms and through subscriptions to iHeartRadio streaming services. (5)Podcast revenue is generated through the sale of advertising on the Company's podcast network. (6)Audio & Media Services revenue is generated by services provided to broadcast industry participants through the Company’s Katz Media and RCS businesses. As a media representation firm, Katz Media generates revenue via commissions on media sold on behalf of the radio and television stations that it represents, while RCS generates revenue by providing broadcast and webcast software and technology and services to radio stations, television music channels, cable companies, satellite music networks and Internet stations worldwide. (7)Other revenue represents fees earned for miscellaneous services, including on-site promotions, activations, and local marketing agreements. (8)Revenue from leases is primarily generated by the lease of towers to other media companies, which are all categorized as operating leases. Trade and Barter Trade and barter transactions represent the exchange of advertising spots for merchandise, services, advertising and promotion or other assets in the ordinary course of business. The transaction price for these contracts is measured at the estimated fair value of the non-cash consideration received unless this is not reasonably estimable, in which case the consideration is measured based on the standalone selling price of the advertising spots promised to the customer. Trade and barter revenues and expenses, which are included in consolidated revenue and selling, general and administrative expenses, respectively, were as follows:
The Company recognized barter revenue of $4.9 million and $2.3 million during the three months ended September 30, 2021 and 2020, respectively, and $9.4 million and $7.5 million during the nine months ended September 30, 2021 and 2020, respectively, in connection with investments made in companies in exchange for advertising services. The following tables show the Company’s deferred revenue balance from contracts with customers:
(1) Deferred revenue from contracts with customers, which excludes other sources of deferred revenue that are not related to contracts with customers, is included within deferred revenue and other long-term liabilities on the Consolidated Balance Sheets, depending upon when revenue is expected to be recognized. The Company’s contracts with customers generally have terms of one year or less; however, as of September 30, 2021, the Company expects to recognize $220.5 million of revenue in future periods for remaining performance obligations from current contracts with customers that have an original expected duration greater than one year, with substantially all of this amount to be recognized over the next five years. Commissions related to the Company’s media representation business have been excluded from this amount as they are contingent upon future sales. Revenue from Leases As of September 30, 2021, the future lease payments to be received by the Company are as follows:
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LEASES |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LEASES | LEASES The Company enters into operating lease contracts for land, buildings, structures and other equipment. Arrangements are evaluated at inception to determine whether such arrangements contain a lease. Operating leases primarily include land and building lease contracts and leases of radio towers. Arrangements to lease building space consist primarily of the rental of office space, but may also include leases of other equipment, including automobiles and copiers. Operating leases are reflected on the Company's balance sheet within Operating lease right-of-use assets ("ROU assets") and the related short-term and long-term liabilities are included within Current and Noncurrent operating lease liabilities, respectively. The Company's finance leases are included within Property, plant and equipment with the related liabilities included within Long-term debt. ROU assets represent the right to use an underlying asset for the lease term, and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the respective lease term. Lease expense is recognized on a straight-line basis over the lease term. The Company tests for impairment of assets whenever events and circumstances indicate that such assets might be impaired. During the nine months ended September 30, 2021, the Company recognized non-cash impairment charges of $49.4 million, including $38.0 million related to ROU assets, and $11.4 million related to leasehold improvements as a result of proactive decisions by management to abandon and sublease a number of operating leases in connection with strategic actions to streamline the Company’s real estate footprint as part of the Company’s modernization initiatives. The implicit rate within the Company's lease agreements is generally not determinable. As such, the Company uses the incremental borrowing rate ("IBR") to determine the present value of lease payments at the commencement of the lease. The IBR, as defined in ASC 842, is "the rate of interest that a lessee would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment." The following table provides supplemental cash flow information related to leases for the periods presented:
(1) Lease liabilities from obtaining right-of-use assets include new leases entered into during the nine months ended September 30, 2021 and 2020, respectively. The Company reflects changes in the lease liability and changes in the ROU asset on a net basis in the Statements of Cash Flows. The non-cash operating lease expense was $75.8 million and $78.2 million for the nine months ended September 30, 2021 and September 30, 2020, respectively.
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PROPERTY, PLANT AND EQUIPMENT, INTANGIBLE ASSETS AND GOODWILL | PROPERTY, PLANT AND EQUIPMENT, INTANGIBLE ASSETS AND GOODWILL Acquisitions On March 31, 2021, the Company acquired Triton Digital, a global leader in digital audio and podcast technology and measurement services, from The E.W. Scripps Company for $228.5 million in cash. The assets acquired as part of this transaction consisted of $69.4 million in current and fixed assets, consisting primarily of accounts receivable and technology, and $191.5 million in intangible assets, consisting primarily of customer relationships, along with $168.2 million in goodwill (of which $6.9 million is tax-deductible). The Company also assumed liabilities of $32.4 million, consisting primarily of accounts payable and deferred tax liabilities. The assessment of fair value of assets acquired and liabilities assumed is preliminary and is based on information that was available to management at the time these consolidated financial statements were prepared. The finalization of the Company’s acquisition accounting assessment could result in changes in the valuation of assets acquired and liabilities assumed, which could be material. Property, Plant and Equipment The Company’s property, plant and equipment consisted of the following classes of assets as of September 30, 2021 and December 31, 2020, respectively:
Indefinite-lived Intangible Assets The Company’s indefinite-lived intangible assets consist of FCC broadcast licenses in its Multiplatform Group segment. The Company performs its annual impairment test on goodwill and indefinite-lived intangible assets, including FCC licenses, as of July 1 of each year. The impairment tests for indefinite-lived intangible assets consist of a comparison between the fair value of the indefinite-lived intangible asset at the market level with its carrying amount. If the carrying amount of the indefinite-lived intangible asset exceeds its fair value, an impairment loss is recognized equal to that excess. After an impairment loss is recognized, the adjusted carrying amount of the indefinite-lived asset is its new accounting basis. The fair value of the indefinite-lived asset is determined using the direct valuation method as prescribed in ASC 805-20-S99. Under the direct valuation method, the fair value of the indefinite-lived assets is calculated at the market level as prescribed by ASC 350-30-35. The Company engaged a third-party valuation firm to assist it in the development of the assumptions and the Company’s determination of the fair value of its indefinite-lived intangible assets. The application of the direct valuation method attempts to isolate the income that is attributable to the indefinite-lived intangible asset alone (that is, apart from tangible and identified intangible assets and goodwill). It is based upon modeling a hypothetical “greenfield” build-up to a “normalized” enterprise that, by design, lacks inherent goodwill and whose only other assets have essentially been paid for (or added) as part of the build-up process. The Company forecasts revenue, expenses, and cash flows over a ten-year period for each of its markets in its application of the direct valuation method. The Company also calculates a “normalized” residual year which represents the perpetual cash flows of each market. The residual year cash flow was capitalized to arrive at the terminal value of the licenses in each market. Under the direct valuation method, it is assumed that rather than acquiring indefinite-lived intangible assets as part of a going concern business, the buyer hypothetically develops indefinite-lived intangible assets and builds a new operation with similar attributes from scratch. Thus, the buyer incurs start-up costs during the build-up phase which are normally associated with going concern value. Initial capital costs are deducted from the discounted cash flow model which results in value that is directly attributable to the indefinite-lived intangible assets. The key assumptions used in applying the direct valuation method are market revenue growth rates, market share, profit margin, duration and profile of the build-up period, estimated start-up capital costs and losses incurred during the build-up period, the risk-adjusted discount rate and terminal values. This data is populated using industry normalized information representing an average FCC license within a market. No impairment was recognized as a result of the Company's annual impairment test on indefinite-lived intangible assets. In addition, the Company tests for impairment of intangible assets whenever events and circumstances indicate that such assets might be impaired. As a result of the COVID-19 pandemic and the economic downturn starting in March 2020, the Company performed an interim impairment test as of March 31, 2020 on its indefinite-lived FCC licenses, resulting in a non-cash impairment charge of $502.7 million on its FCC licenses. Other Intangible Assets Other intangible assets consists of definite-lived intangible assets, which primarily include customer and advertiser relationships, talent and representation contracts, trademarks and tradenames and other contractual rights, all of which are amortized over the shorter of either the respective lives of the agreements or over the period of time that the assets are expected to contribute directly or indirectly to the Company’s future cash flows. The Company periodically reviews the appropriateness of the amortization periods related to its definite-lived intangible assets. These assets are recorded at amortized cost. The Company tests for possible impairment of other intangible assets whenever events and circumstances indicate that they might be impaired and the undiscounted cash flows estimated to be generated by those assets are less than the carrying amounts of those assets. When specific assets are determined to be unrecoverable, the cost basis of the asset is reduced to reflect the current fair market value. The Company performed interim impairment tests as of March 31, 2020 on its other intangible assets as a result of the COVID-19 pandemic and economic slowdown. Based on the Company’s test of recoverability using estimated undiscounted future cash flows, the carrying values of the Company’s definite-lived intangible assets were determined to be recoverable, and no impairment was recognized. The following table presents the gross carrying amount and accumulated amortization for each major class of other intangible assets as of September 30, 2021 and December 31, 2020, respectively:
Total amortization expense related to definite-lived intangible assets for the Company for the three months ended September 30, 2021 and 2020 was $64.3 million and $64.5 million, respectively. Total amortization expense related to definite-lived intangible assets for the Company for the nine months ended September 30, 2021 and 2020 was $218.0 million and $193.0 million, respectively. As acquisitions and dispositions occur in the future, amortization expense may vary. The following table presents the Company’s estimate of amortization expense for each of the five succeeding fiscal years for definite-lived intangible assets:
Goodwill The following table presents the changes in the carrying amount of goodwill:
As a result of the leadership and organizational changes implemented in the first quarter 2021, as described in Note 1, Basis of Presentation, the Company re-evaluated its reporting units and allocated goodwill to these new reporting units. Refer to Note 9, Segment Data, for additional information on our segments. Goodwill was allocated to these new reporting units based on the relative fair values of these reporting units. Fair value was calculated using the expected present value of future cash flows, and included estimates, judgments and assumptions consistent with those of a market participant that management believes were appropriate in the circumstances. The estimates and judgments that most significantly affect the fair value calculations are assumptions related to long-term growth rates, expected profit margins and discount rates. The Company did not recast prior-period goodwill balances to the new reporting units as it was impractical to do so. Goodwill Impairment The Company performs its annual impairment test on goodwill as of July 1 of each year. The Company also tests goodwill at interim dates if events or changes in circumstances indicate that goodwill might be impaired. The goodwill impairment test requires measurement of the fair value of the Company's reporting units, which is compared to the carrying value of the reporting units, including goodwill. Each reporting unit is valued using a discounted cash flow model which requires estimating future cash flows expected to be generated from the reporting unit, discounted to their present value using a risk-adjusted discount rate. Terminal values are also estimated and discounted to their present value. Assessing the recoverability of goodwill requires estimates and assumptions about sales, operating margins, growth rates and discount rates based on budgets, business plans, economic projections, anticipated future cash flows and marketplace data. As with the impairment testing performed on the Company’s FCC licenses described above, the significant deterioration in market conditions and uncertainty in the markets impacted the assumptions used to estimate the discounted future cash flows of the Company’s reporting units for purposes of performing the interim goodwill impairment test. There are inherent uncertainties related to these factors and management’s judgment in applying these factors. The Company engaged a third-party valuation firm to assist it in the development of the assumptions and the Company’s determination of the fair value of its reporting units as of July 1 as part of the annual impairment test. No impairment was recognized as a result of the Company's annual impairment test on goodwill. As a result of the changes in the Company's management structure and its reportable segments effective at the beginning of 2021, the Company performed an interim impairment test on goodwill as of January 1, 2021. No impairment charges were recorded in the first quarter of 2021 in connection with the interim impairment test. The Company performed an interim impairment test on goodwill in the first quarter of 2020 and recognized a non-cash impairment charge of $1.2 billion to reduce goodwill as a result of the COVID-19 pandemic and its adverse effect on the U.S. economy.
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PROPERTY, PLANT AND EQUIPMENT, INTANGIBLE ASSETS AND GOODWILL | PROPERTY, PLANT AND EQUIPMENT, INTANGIBLE ASSETS AND GOODWILL Acquisitions On March 31, 2021, the Company acquired Triton Digital, a global leader in digital audio and podcast technology and measurement services, from The E.W. Scripps Company for $228.5 million in cash. The assets acquired as part of this transaction consisted of $69.4 million in current and fixed assets, consisting primarily of accounts receivable and technology, and $191.5 million in intangible assets, consisting primarily of customer relationships, along with $168.2 million in goodwill (of which $6.9 million is tax-deductible). The Company also assumed liabilities of $32.4 million, consisting primarily of accounts payable and deferred tax liabilities. The assessment of fair value of assets acquired and liabilities assumed is preliminary and is based on information that was available to management at the time these consolidated financial statements were prepared. The finalization of the Company’s acquisition accounting assessment could result in changes in the valuation of assets acquired and liabilities assumed, which could be material. Property, Plant and Equipment The Company’s property, plant and equipment consisted of the following classes of assets as of September 30, 2021 and December 31, 2020, respectively:
Indefinite-lived Intangible Assets The Company’s indefinite-lived intangible assets consist of FCC broadcast licenses in its Multiplatform Group segment. The Company performs its annual impairment test on goodwill and indefinite-lived intangible assets, including FCC licenses, as of July 1 of each year. The impairment tests for indefinite-lived intangible assets consist of a comparison between the fair value of the indefinite-lived intangible asset at the market level with its carrying amount. If the carrying amount of the indefinite-lived intangible asset exceeds its fair value, an impairment loss is recognized equal to that excess. After an impairment loss is recognized, the adjusted carrying amount of the indefinite-lived asset is its new accounting basis. The fair value of the indefinite-lived asset is determined using the direct valuation method as prescribed in ASC 805-20-S99. Under the direct valuation method, the fair value of the indefinite-lived assets is calculated at the market level as prescribed by ASC 350-30-35. The Company engaged a third-party valuation firm to assist it in the development of the assumptions and the Company’s determination of the fair value of its indefinite-lived intangible assets. The application of the direct valuation method attempts to isolate the income that is attributable to the indefinite-lived intangible asset alone (that is, apart from tangible and identified intangible assets and goodwill). It is based upon modeling a hypothetical “greenfield” build-up to a “normalized” enterprise that, by design, lacks inherent goodwill and whose only other assets have essentially been paid for (or added) as part of the build-up process. The Company forecasts revenue, expenses, and cash flows over a ten-year period for each of its markets in its application of the direct valuation method. The Company also calculates a “normalized” residual year which represents the perpetual cash flows of each market. The residual year cash flow was capitalized to arrive at the terminal value of the licenses in each market. Under the direct valuation method, it is assumed that rather than acquiring indefinite-lived intangible assets as part of a going concern business, the buyer hypothetically develops indefinite-lived intangible assets and builds a new operation with similar attributes from scratch. Thus, the buyer incurs start-up costs during the build-up phase which are normally associated with going concern value. Initial capital costs are deducted from the discounted cash flow model which results in value that is directly attributable to the indefinite-lived intangible assets. The key assumptions used in applying the direct valuation method are market revenue growth rates, market share, profit margin, duration and profile of the build-up period, estimated start-up capital costs and losses incurred during the build-up period, the risk-adjusted discount rate and terminal values. This data is populated using industry normalized information representing an average FCC license within a market. No impairment was recognized as a result of the Company's annual impairment test on indefinite-lived intangible assets. In addition, the Company tests for impairment of intangible assets whenever events and circumstances indicate that such assets might be impaired. As a result of the COVID-19 pandemic and the economic downturn starting in March 2020, the Company performed an interim impairment test as of March 31, 2020 on its indefinite-lived FCC licenses, resulting in a non-cash impairment charge of $502.7 million on its FCC licenses. Other Intangible Assets Other intangible assets consists of definite-lived intangible assets, which primarily include customer and advertiser relationships, talent and representation contracts, trademarks and tradenames and other contractual rights, all of which are amortized over the shorter of either the respective lives of the agreements or over the period of time that the assets are expected to contribute directly or indirectly to the Company’s future cash flows. The Company periodically reviews the appropriateness of the amortization periods related to its definite-lived intangible assets. These assets are recorded at amortized cost. The Company tests for possible impairment of other intangible assets whenever events and circumstances indicate that they might be impaired and the undiscounted cash flows estimated to be generated by those assets are less than the carrying amounts of those assets. When specific assets are determined to be unrecoverable, the cost basis of the asset is reduced to reflect the current fair market value. The Company performed interim impairment tests as of March 31, 2020 on its other intangible assets as a result of the COVID-19 pandemic and economic slowdown. Based on the Company’s test of recoverability using estimated undiscounted future cash flows, the carrying values of the Company’s definite-lived intangible assets were determined to be recoverable, and no impairment was recognized. The following table presents the gross carrying amount and accumulated amortization for each major class of other intangible assets as of September 30, 2021 and December 31, 2020, respectively:
Total amortization expense related to definite-lived intangible assets for the Company for the three months ended September 30, 2021 and 2020 was $64.3 million and $64.5 million, respectively. Total amortization expense related to definite-lived intangible assets for the Company for the nine months ended September 30, 2021 and 2020 was $218.0 million and $193.0 million, respectively. As acquisitions and dispositions occur in the future, amortization expense may vary. The following table presents the Company’s estimate of amortization expense for each of the five succeeding fiscal years for definite-lived intangible assets:
Goodwill The following table presents the changes in the carrying amount of goodwill:
As a result of the leadership and organizational changes implemented in the first quarter 2021, as described in Note 1, Basis of Presentation, the Company re-evaluated its reporting units and allocated goodwill to these new reporting units. Refer to Note 9, Segment Data, for additional information on our segments. Goodwill was allocated to these new reporting units based on the relative fair values of these reporting units. Fair value was calculated using the expected present value of future cash flows, and included estimates, judgments and assumptions consistent with those of a market participant that management believes were appropriate in the circumstances. The estimates and judgments that most significantly affect the fair value calculations are assumptions related to long-term growth rates, expected profit margins and discount rates. The Company did not recast prior-period goodwill balances to the new reporting units as it was impractical to do so. Goodwill Impairment The Company performs its annual impairment test on goodwill as of July 1 of each year. The Company also tests goodwill at interim dates if events or changes in circumstances indicate that goodwill might be impaired. The goodwill impairment test requires measurement of the fair value of the Company's reporting units, which is compared to the carrying value of the reporting units, including goodwill. Each reporting unit is valued using a discounted cash flow model which requires estimating future cash flows expected to be generated from the reporting unit, discounted to their present value using a risk-adjusted discount rate. Terminal values are also estimated and discounted to their present value. Assessing the recoverability of goodwill requires estimates and assumptions about sales, operating margins, growth rates and discount rates based on budgets, business plans, economic projections, anticipated future cash flows and marketplace data. As with the impairment testing performed on the Company’s FCC licenses described above, the significant deterioration in market conditions and uncertainty in the markets impacted the assumptions used to estimate the discounted future cash flows of the Company’s reporting units for purposes of performing the interim goodwill impairment test. There are inherent uncertainties related to these factors and management’s judgment in applying these factors. The Company engaged a third-party valuation firm to assist it in the development of the assumptions and the Company’s determination of the fair value of its reporting units as of July 1 as part of the annual impairment test. No impairment was recognized as a result of the Company's annual impairment test on goodwill. As a result of the changes in the Company's management structure and its reportable segments effective at the beginning of 2021, the Company performed an interim impairment test on goodwill as of January 1, 2021. No impairment charges were recorded in the first quarter of 2021 in connection with the interim impairment test. The Company performed an interim impairment test on goodwill in the first quarter of 2020 and recognized a non-cash impairment charge of $1.2 billion to reduce goodwill as a result of the COVID-19 pandemic and its adverse effect on the U.S. economy.
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LONG-TERM DEBT |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LONG-TERM DEBT | LONG-TERM DEBT Long-term debt outstanding for the Company as of September 30, 2021 and December 31, 2020 consisted of the following:
(1)As of September 30, 2021, the senior secured asset-based revolving credit facility (the “ABL Facility”) had a facility size of $450.0 million, no outstanding borrowings and $28.5 million of outstanding letters of credit, resulting in $421.5 million of borrowing base availability. (2)Other secured subsidiary debt consists of finance lease obligations maturing at various dates from 2022 through 2045. The Company’s weighted average interest rate was 5.4% and 5.5% as of September 30, 2021 and December 31, 2020, respectively. The aggregate market value of the Company’s debt based on market prices for which quotes were available was approximately $5.9 billion and $6.2 billion as of September 30, 2021 and December 31, 2020, respectively. Under the fair value hierarchy established by ASC 820-10-35, the market value of the Company’s debt is classified as either Level 1 or Level 2. On July 16, 2021, iHeartCommunications, Inc. ("iHeartCommunications") entered into an amendment to the credit agreement governing its Term Loan credit facilities. The amendment reduced the interest rate of its Incremental Term Loan Facility due 2026 to a Eurocurrency Rate of LIBOR plus a margin of 3.25% and floor of 0.50% (from LIBOR plus a margin of 4.00% and floor of 0.75%). The Base Rate interest amount was reduced to Base Rate plus a margin of 2.25% and floor of 1.50%. In connection with the amendment, iHeartCommunications voluntarily prepaid $250.0 million of borrowings outstanding under the Term Loan credit facilities with cash on hand, resulting in a reduction of $44.3 million of the existing Incremental Term Loan Facility due 2026 and $205.7 million of the Term Loan Facility due 2026. Under the terms of the Term Loan Facility Credit Agreement, iHeartCommunications made quarterly principal payments of $6.4 million during the three months ended March 31, 2021, June 30, 2021 and September 30, 2020, and previously made payments of $5.25 million during the three months ended March 31, 2020 and June 30, 2020. Following the prepayment of $250.0 million of borrowings outstanding under the Term Loan credit facilities on July 16, 2021, iHeartCommunications is no longer required to make such quarterly payments. Mandatorily Redeemable Preferred Stock As previously disclosed, on March 14, 2018, the Company, iHeartCommunications and certain of the Company's direct and indirect domestic subsidiaries (collectively, the "Debtors") filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Southern District of Texas, Houston Division (the "Bankruptcy Court"). On April 28, 2018, the Company and the other Debtors filed a plan of reorganization (as amended, the “Plan of Reorganization”) and a related disclosure statement with the Bankruptcy Court. On January 22, 2019, the Plan of Reorganization was confirmed by the Bankruptcy Court. On May 1, 2019 (the “Effective Date”), in accordance with the Plan of Reorganization, iHeart Operations issued 60,000 shares of its Series A Perpetual Preferred Stock, par value $0.001 per share (the "iHeart Operations Preferred Stock"), having an aggregate initial liquidation preference of $60.0 million for a cash purchase price of $60.0 million. The iHeart Operations Preferred Stock was purchased by a third party investor. As of September 30, 2021, the liquidation preference of the iHeart Operations Preferred Stock was $60.0 million. The iHeart Operations Preferred Stock was mandatorily redeemable for cash at a date certain and therefore is classified as a liability in the Company's balance sheet. On October 27, 2021, iHeart Operations repurchased all of the iHeart Operations Preferred Stock with cash on hand for an aggregate price of $64.4 million (“Redemption Price”), including accrued dividends, upon obtaining consent from the third party investor. The Redemption Price included a negotiated make-whole premium as the redemption occurred prior to the optional redemption date set forth in the Certificate of Designation governing the iHeart Operations Preferred Stock. Subsequent to the transaction, the preferred shares were retired and cancelled and are no longer outstanding. Holders of the iHeart Operations Preferred Stock were entitled to receive, as declared by the board of directors of iHeart Operations, in respect of each share, cumulative dividends accruing daily and payable quarterly. Dividends were payable on March 31, June 30, September 30 and December 31 of each year (or on the next business day if such date is not a business day). During the three months ended September 30, 2021 and 2020 the Company recognized $2.3 million and $2.7 million, respectively, of interest expense related to dividends on mandatorily redeemable preferred stock. During the nine months ended September 30, 2021 and 2020 the Company recognized $6.9 million and $6.9 million, respectively, of interest expense related to dividends on mandatorily redeemable preferred stock. Surety Bonds, Letters of Credit and Guarantees As of September 30, 2021, the Company and its subsidiaries had outstanding surety bonds, commercial standby letters of credit and bank guarantees of $8.8 million, $28.9 million and $0.2 million, respectively. These surety bonds, letters of credit and bank guarantees relate to various operational matters including insurance, lease and performance bonds as well as other items.
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COMMITMENTS AND CONTINGENCIES |
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Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIESThe Company and its subsidiaries are involved in certain legal proceedings arising in the ordinary course of business and, as required, have accrued an estimate of the probable costs for the resolution of those claims for which the occurrence of loss is probable and the amount can be reasonably estimated. These estimates have been developed in consultation with counsel and are based upon an analysis of potential results, assuming a combination of litigation and settlement strategies. It is possible, however, that future results of operations for any particular period could be materially affected by changes in the Company’s assumptions or the effectiveness of its strategies related to these proceedings. Additionally, due to the inherent uncertainty of litigation, there can be no assurance that the resolution of any particular claim or proceeding would not have a material adverse effect on the Company’s financial condition or results of operations. Although the Company is involved in a variety of legal proceedings in the ordinary course of business, a large portion of the Company’s litigation arises in the following contexts: commercial/contract disputes; defamation matters; employment and benefits related claims; intellectual property claims; real estate matters; governmental investigations; and tax disputes. Alien Ownership Restrictions and FCC Petitions for Declaratory Ruling The Communications Act and FCC regulation prohibit foreign entities and individuals from having direct or indirect ownership or voting rights of more than 25 percent in a corporation controlling the licensee of a radio broadcast station unless the FCC finds greater foreign ownership to be in the public interest. Under the Plan of Reorganization, the Company committed to file a petition for declaratory ruling (the “PDR”) requesting the FCC to permit the Company to be up to 100% foreign-owned. On November 5, 2020, the FCC issued a declaratory ruling granting the relief requested by the PDR (the “Declaratory Ruling”), subject to certain conditions, as described further in Note 8, Stockholder's Equity below. On November 9, 2020, the Company notified the holders of Special Warrants of the commencement of an exchange process (the “Exchange Notice”). On January 8, 2021, the Company exchanged a portion of the outstanding Special Warrants into Class A common stock or Class B common stock, in compliance with the Declaratory Ruling, the Communications Act and FCC rules (the “Exchange”). Following the Exchange, the Company’s remaining Special Warrants continue to be exercisable for shares of Class A common stock or Class B common stock. See “Item 1. Business – Regulation of Our Business, Alien Ownership Restrictions” of our Annual Report on Form 10-K for the year ended December 31, 2020 and "Part II, Item 1A. Risk Factors - Regulatory, Legislative and Litigation Risks, Regulations imposed by the Communications Act and the FCC limit the amount of foreign individuals or entities that may invest in our capital stock without FCC approval" in this Quarterly Report on Form 10-Q for additional information. On March 8, 2021, the Company filed a remedial petition for declaratory ruling (the “Remedial PDR”) with the FCC. The Remedial PDR relates to the acquisition by Global Media & Entertainment Investments Ltd (f/k/a Honeycomb Investments Limited) (“Global Investments”) of the Company’s Class A Common Stock. Specifically, on February 5, 2021, Global Investments, The Global Media & Entertainment Investments Trust (the “GMEI Trust”), James Hill (as trustee of the GMEI Trust), Simon Groom (as trustee of the GMEI Trust) and Michael Tabor (as beneficiary of the GMEI Trust) (together with Global Investments and any affiliates or third parties to whom they may assign or transfer any of their rights or interests, the “GMEI Investors”) filed a Schedule 13D with the SEC, in which the GMEI Investors disclosed beneficial ownership of 9,631,329 shares of the Company’s Class A Common Stock, which at that time represented approximately 8.7% of the Company’s outstanding Class A Common Stock. This ownership interest is inconsistent with the FCC’s foreign ownership rules and the Declaratory Ruling issued by the FCC relating to the Company’s foreign ownership on November 5, 2020, both of which limit a foreign investor in the GMEI Investors’ position to holding no more than 5% of the Company’s voting equity or total equity without prior FCC approval. The Remedial PDR, which was filed pursuant to the rules and regulations of the FCC, seeks (a) specific approval for the more than 5% equity and voting interests in the Company presently held by the GMEI Investors and (b) as amended, advance approval for the GMEI Investors to increase their equity and voting interest in the Company up to any non-controlling amount not to exceed 14.99%. The Remedial PDR remains pending before the FCC. On March 26, 2021, the FCC conditioned the approval of applications by the Company to acquire certain radio stations, which were pending prior to the GMEI Investors’ Schedule 13D filing, on the Company taking certain actions with respect to the GMEI Investors' rights as stockholders of the Company. On that same date, and in order to implement the conditions required by the FCC, the Company’s Board of Directors (the “Board”) resolved to take certain actions to limit the rights of the GMEI Investors, including, but not limited to, suspending all voting rights of GEMI Investors until and unless the FCC releases a declaratory ruling granting specific approval for each of the GMEI Investors to hold more than 5 percent of the equity and/or voting interests of the Company. Tax Matters Agreement On the Effective Date, the Company emerged from Chapter 11 and effectuated a series of transactions through which Clear Channel Outdoor Holdings, Inc. ("CCOH"), its parent Clear Channel Holdings, Inc. (“CCH”) and its subsidiaries (collectively with CCOH and CCH, the “Outdoor Group”) were separated from, and ceased to be controlled by, the Company and its subsidiaries (the “Separation”). In connection with the Separation, the Company entered into the Tax Matters Agreement by and among iHeartMedia, iHeartCommunications, iHeart Operations, Inc., CCH, CCOH and Clear Channel Outdoor, Inc., to allocate the responsibility of iHeartMedia and its subsidiaries, on the one hand, and CCOH and its subsidiaries, on the other, for the payment of taxes arising prior and subsequent to, and in connection with, the Separation. The Tax Matters Agreement requires that iHeartMedia and iHeartCommunications indemnify CCOH and its subsidiaries, and their respective directors, officers and employees, and hold them harmless, on an after-tax basis, from and against certain tax claims related to the Separation. In addition, the Tax Matters Agreement requires that CCOH indemnify iHeartMedia for certain income taxes paid by iHeartMedia on behalf of CCOH and its subsidiaries.
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INCOME TAXES |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INCOME TAXES | INCOME TAXES On March 11, 2021 the President signed into law the American Rescue Plan Act, which included provisions on taxes, health care, unemployment benefits, direct payments, state and local funding and other issues. The tax provisions will not have a material impact on the Company’s tax provision calculations. The Company’s income tax benefit (expense) for the three and nine months ended September 30, 2021 and the three and nine months ended September 30, 2020 consisted of the following components:
The effective tax rates for the three and nine months ended September 30, 2021 were 115.6% and (40.0)%, respectively. The effective tax rates were primarily impacted by the forecasted increase in valuation allowance against certain deferred tax assets, related primarily to disallowed interest expense carryforwards, due to uncertainty regarding the Company’s ability to utilize those assets in future periods. The effective tax rates for the three and nine months ended September 30, 2020 were 32.2% and 9.8%, respectively. The effective tax rate for the nine months ended September 30, 2020 was primarily impacted by the impairment charges to non-deductible goodwill. The deferred tax benefit primarily consists of $125.5 million related to the FCC license impairment charges recorded during the period.
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STOCKHOLDER'S EQUITY |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
STOCKHOLDER'S EQUITY | STOCKHOLDER'S EQUITYPursuant to the Company's 2019 Equity Incentive Plan (the "2019 Plan"), the Company historically granted restricted stock units and options to purchase shares of the Company's Class A common stock to certain key individuals. On April 21, 2021, our 2021 Long-Term Incentive Award Plan (the “2021 Plan”) was approved by stockholders and replaced the 2019 Plan. Pursuant to our 2021 Plan, we will continue to grant restricted stock units and options to purchase shares of the Company's Class A common stock to certain key individuals. Share-based Compensation Share-based compensation expenses are recorded in Selling, general and administrative expenses and were $6.0 million and $5.9 million for the Company for the three months ended September 30, 2021 and the three months ended September 30, 2020, respectively. Share-based compensation expenses are recorded in Selling, general and administrative expenses and were $17.6 million and $14.7 million for the Company for the nine months ended September 30, 2021 and September 30, 2020, respectively. In August 2020, the Company issued performance-based restricted stock units ("Performance RSUs") to certain key employees. Such Performance RSUs vest upon the achievement of critical operational (cost savings) improvements and specific environmental, social and governance initiatives, which are being measured over an approximately 18-month period from the date of issuance. In the three and nine months ended September 30, 2021, the Company recognized $0.4 million and $1.4 million in relation to these Performance RSUs. In the three and nine months ended September 30, 2020, the Company recognized $1.1 million in relation to these Performance RSUs. As of September 30, 2021, there was $45.0 million of unrecognized compensation cost related to unvested share-based compensation arrangements with vesting based on service conditions. This cost is expected to be recognized over a weighted average period of approximately 2.3 years. In addition, as of September 30, 2021, there was $0.3 million of unrecognized compensation cost related to unvested share-based compensation arrangements that will vest based on certain performance conditions. Common Stock and Special Warrants The Company is authorized to issue 2,100,000,000 shares, consisting of (a) 1,000,000,000 shares of Class A Common Stock, par value $0.001 per share (the “Class A Common Stock”), (b) 1,000,000,000 shares of Class B Common Stock, par value $0.001 per share (the “Class B Common Stock”), and (c) 100,000,000 shares of preferred stock, par value $0.001 per share (the “Preferred Stock”). The following table presents the Company's Class A Common Stock, Class B Common Stock and Special Warrants issued and outstanding as of September 30, 2021:
During the three and nine months ended September 30, 2021, stockholders converted 1,130,851 and 6,718,576 shares of the Class B common stock into Class A common stock. During the three and nine months ended September 30, 2020, stockholders converted 7,263 and 13,323 shares of the Class B common stock into Class A common stock. Special Warrants Each Special Warrant issued under the special warrant agreement entered into in connection with the Reorganization may be exercised by its holder to purchase one share of Class A common stock or Class B common stock at an exercise price of $0.001 per share, unless the Company in its sole discretion believes such exercise would, alone or in combination with any other existing or proposed ownership of common stock, result in, subject to certain exceptions, (a) such exercising holder owning more than 4.99 percent of the Company's outstanding Class A common stock, (b) more than 22.5 percent of the Company's capital stock or voting interests being owned directly or indirectly by foreign individuals or entities, (c) the Company exceeding any other applicable foreign ownership threshold or (d) violation of any provision of the Communications Act or restrictions on ownership or transfer imposed by the Company's certificate of incorporation or the decisions, rules and policies of the FCC. Any holder exercising Special Warrants must complete and timely deliver to the warrant agent the required exercise forms and certifications required under the special warrant agreement. The Communications Act and FCC regulations prohibit foreign entities or individuals from indirectly (i.e., through a parent company) owning or voting more than 25 percent of a licensee’s equity, unless the FCC determines that greater indirect foreign ownership is in the public interest. As described further in Note 6 above, on July 25, 2019, the Company filed a PDR requesting FCC consent to exceed the 25 percent foreign ownership and voting benchmarks. On November 5, 2020, the FCC issued the Declaratory Ruling granting the relief requested by the PDR. On November 9, 2020, the Company sent Exchange Notices to the holders of Special Warrants, notifying them of the Exchange process. On January 8, 2021, the Company exchanged a portion of the outstanding Special Warrants into Class A common stock or Class B common stock, in compliance with the Declaratory Ruling, the Communications Act and FCC rules. Following the Exchange, the Company’s remaining Special Warrants continue to be exercisable for shares of Class A common stock or Class B common stock. See "Part II, Item 1A. Risk Factors - Regulations imposed by the Communications Act and the FCC limit the amount of foreign individuals or entities that may invest in our capital stock without FCC approval" of this Quarterly Report on Form 10-Q and "Part I, Item 1. Business – Regulation of Our Business, Alien Ownership Restrictions" of our Annual Report on Form 10-K for the year ended December 31, 2020 for additional information. During the three and nine months ended September 30, 2021, stockholders exercised 60,698 and 47,197,139 Special Warrants for an equivalent number of shares of Class A common stock, respectively. There were no Special Warrants exercised for an equivalent number of shares of Class B common stock during the three months ended September 30, 2021. During the nine months ended September 30, 2021, stockholders exercised 22,337,312 Special Warrants for an equivalent number of shares of Class B common stock. During the three and nine months ended September 30, 2020 , stockholders exercised 1,986,278 and 4,990,132 Special Warrants for an equivalent number of shares of Class A common stock. During the three and nine months ended September 30, 2020, stockholders exercised 704 and 2,049 Special Warrants for an equivalent number of shares of Class B common stock. As further described in Note 6, Commitments and Contingencies above, on March 26, 2021, the Company’s Board resolved to take certain actions to limit the rights of the GMEI Investors in order to implement certain conditions required by the FCC. Such actions, included, but are not limited to, suspending all voting rights of GMEI Investors until and unless the FCC releases a declaratory ruling granting specific approval for each of the GMEI Investors to hold more than 5% of the equity and/or voting interests of the Company. Computation of Loss per Share
(1) All of the outstanding Special Warrants are included in both the basic and diluted weighted average common shares outstanding of the Company for the three and nine months ended September 30, 2021 and 2020. (2) Outstanding equity awards representing 0.3 million and 9.6 million shares of Class A common stock of the Company for the three months ended September 30, 2021 and 2020, respectively, and 10.6 million and 8.5 million for the nine months ended September 30, 2021 and 2020, respectively, were not included in the computation of diluted earnings per share because to do so would have been antidilutive. On May 5, 2021, the Company’s short-term stockholder rights plan expired in accordance with its terms and the rights are no longer outstanding.
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SEGMENT DATA |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SEGMENT DATA | SEGMENT DATA As discussed in Note 1, in connection with certain leadership and organizational changes implemented in the first quarter 2021, the Company revised its segment reporting as of January 1, 2021. The corresponding current and prior period segment disclosures were recast to reflect the current segment presentation. Segment Adjusted EBITDA is the segment profitability metric reported to the Company’s Chief Operating Decision Maker for purposes of decisions about allocation of resources to, and assessing performance of, each reportable segment. The Company’s primary businesses are included in its Multiplatform Group and Digital Audio Group segments. Revenue and expenses earned and charged between Multiplatform Group, Digital Audio Group, Corporate and the Company's Audio & Media Services Group are eliminated in consolidation. The Multiplatform Group provides media and entertainment services via broadcast delivery and also includes the Company’s events and national syndication businesses. The Digital Audio Group provides media and entertainment services via digital delivery. The Audio & Media Services Group provides other audio and media services, including the Company’s media representation business (Katz Media) and its provider of scheduling and broadcast software (RCS). Corporate includes infrastructure and support, including executive, information technology, human resources, legal, finance and administrative functions for the Company’s businesses. Share-based payments are recorded in Selling, general and administrative expense. The following tables present the Company's segment results for the Company for the three and nine months ended September 30, 2021 and 2020:
(1) Consolidated operating expenses consist of Direct operating expenses and Selling, general and administrative expenses and exclude Restructuring expenses, share-based compensation expenses and depreciation and amortization. (2) For a definition of Adjusted EBITDA for the consolidated company and a reconciliation to Operating income, the most closely comparable GAAP measure, and to Net income (loss), please see "Reconciliation of Operating Loss to Adjusted EBITDA" and "Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA" in Item 2 of this Quarterly Report on Form 10-Q. Beginning on January 1, 2021, Segment Adjusted EBITDA became the segment profitability metric reported to the Company's Chief Operating Decision Maker for purposes of making decisions about allocation of resources to, and assessing performance of, each reportable segment.
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BASIS OF PRESENTATION (Policies) |
9 Months Ended |
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Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | The accompanying consolidated financial statements were prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and, in the opinion of management, include all normal and recurring adjustments necessary to present fairly the results of the interim periods shown. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to such SEC rules and regulations. Management believes that the disclosures made are adequate to make the information presented not misleading. The financial statements contained herein should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. As of January 1, 2021, the Company began reporting based on three reportable segments: ▪the iHeartMedia Multiplatform Group, which includes the Company's Broadcast radio, Networks and Sponsorships and Events businesses; ▪the iHeartMedia Digital Audio Group, which includes all of the Company's Digital businesses, including Podcasting; and ▪the Audio & Media Services Group, which includes Katz Media Group (“Katz Media”), a full-service media representation business, and RCS Sound Software ("RCS"), a provider of scheduling and broadcast software and services. These reporting segments reflect how senior management operates the Company and align with certain leadership and organizational changes implemented in the first quarter 2021. This structure provides improved visibility into the underlying performances, results, and margin profiles of our distinct businesses and enables senior management to better monitor trends at the operational level and address opportunities or issues as they arise via regular review of segment-level results and forecasts with operational leaders. Additionally, as of January 1, 2021, Segment Adjusted EBITDA is the segment profitability metric reported to the Company's Chief Operating Decision Maker for purposes of making decisions about allocation of resources to, and assessing performance of, each reportable segment. Segment Adjusted EBITDA is calculated as Revenue less operating expenses, excluding restructuring expenses and share-based compensation expenses. Restructuring expenses primarily include severance expenses incurred in connection with cost saving initiatives, as well as certain expenses, which, in the view of management, are outside the ordinary course of business or otherwise not representative of the Company's operations during a normal business cycle. The corresponding current and prior period segment disclosures have been recast to reflect the current segment presentation. See Note 9, Segment Data. The consolidated financial statements include the accounts of the Company and its subsidiaries. Also included in the consolidated financial statements are entities for which the Company has a controlling interest or is the primary beneficiary. Investments in companies which the Company does not control, but exercises significant influence over operating and financial policies of the company are accounted for under the equity method. All significant intercompany transactions are eliminated in the consolidation process.
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Reclassifications and New Segment Presentation | Reclassifications and New Segment Presentation Certain prior period amounts have been reclassified to conform to the 2021 presentation. In connection with the organization and leadership changes resulting in the realignment of its reportable segments as discussed above, the Company also determined that all selling, general and administrative expenses incurred by its reportable segments and by its corporate functions would be reported together as Selling, general and administrative expenses. Amounts presented in prior years as Corporate expenses have been reclassified as Selling, general and administrative expenses to conform to the current presentation.
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New Accounting Pronouncements Recently Adopted | New Accounting Pronouncements Recently Adopted In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848) - Facilitation of the Effects of the Interbank Offered Rate Transition on Financial Reporting to provide optional relief from applying generally accepted accounting principles to contracts, hedging relationships and other transactions affected by reference rate reform. In addition, in January 2021, the FASB issued ASU No. 2021-01, Reference Rate Reform (Topic 848) – Scope, to clarify that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. The guidance is effective upon issuance and generally can be applied through December 31, 2022. The Company is currently evaluating the future impact of adoption of this standard.
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BASIS OF PRESENTATION (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Restricted Cash and Cash Equivalents | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported in the Consolidated Balance Sheets to the total of the amounts reported in the Consolidated Statements of Cash Flows:
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REVENUE (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue | The following tables show revenue streams for the three and nine months ended September 30, 2021 and 2020:
(1)Broadcast Radio revenue is generated through the sale of advertising time on the Company’s domestic radio stations. (2)Networks revenue is generated through the sale of advertising on the Company’s Premiere and Total Traffic & Weather network programs and through the syndication of network programming to other media companies. (3)Sponsorship and events revenue is generated through local events and major nationally-recognized tent pole events and include sponsorship and other advertising revenue, ticket sales, and licensing, as well as endorsement and appearance fees generated by on-air talent. (4)Digital, excluding Podcast revenue is generated through the sale of streaming and display advertisements on digital platforms and through subscriptions to iHeartRadio streaming services. (5)Podcast revenue is generated through the sale of advertising on the Company's podcast network. (6)Audio & Media Services revenue is generated by services provided to broadcast industry participants through the Company’s Katz Media and RCS businesses. As a media representation firm, Katz Media generates revenue via commissions on media sold on behalf of the radio and television stations that it represents, while RCS generates revenue by providing broadcast and webcast software and technology and services to radio stations, television music channels, cable companies, satellite music networks and Internet stations worldwide. (7)Other revenue represents fees earned for miscellaneous services, including on-site promotions, activations, and local marketing agreements. (8)Revenue from leases is primarily generated by the lease of towers to other media companies, which are all categorized as operating leases.
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Barter and Trade Revenues and Expenses | Trade and barter revenues and expenses, which are included in consolidated revenue and selling, general and administrative expenses, respectively, were as follows:
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Schedule of Contract with Customer, Asset and Liability | The following tables show the Company’s deferred revenue balance from contracts with customers:
(1) Deferred revenue from contracts with customers, which excludes other sources of deferred revenue that are not related to contracts with customers, is included within deferred revenue and other long-term liabilities on the Consolidated Balance Sheets, depending upon when revenue is expected to be recognized.
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Schedule of Future Lease Payments to be Received | As of September 30, 2021, the future lease payments to be received by the Company are as follows:
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LEASES (Tables) |
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Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Cash Flow, Supplemental Disclosures | The following table provides supplemental cash flow information related to leases for the periods presented:
(1) Lease liabilities from obtaining right-of-use assets include new leases entered into during the nine months ended September 30, 2021 and 2020, respectively.
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PROPERTY, PLANT AND EQUIPMENT, INTANGIBLE ASSETS AND GOODWILL (Tables) |
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Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Property, Plant and Equipment | The Company’s property, plant and equipment consisted of the following classes of assets as of September 30, 2021 and December 31, 2020, respectively:
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Schedule of Gross Carrying Amount and Accumulated Amortization for Other Intangible Assets | The following table presents the gross carrying amount and accumulated amortization for each major class of other intangible assets as of September 30, 2021 and December 31, 2020, respectively:
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Schedule of Future Amortization Expense | The following table presents the Company’s estimate of amortization expense for each of the five succeeding fiscal years for definite-lived intangible assets:
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Schedule of Changes in Carrying Amount of Goodwill | The following table presents the changes in the carrying amount of goodwill:
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LONG-TERM DEBT (Tables) |
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Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Long-Term Debt Outstanding | Long-term debt outstanding for the Company as of September 30, 2021 and December 31, 2020 consisted of the following:
(1)As of September 30, 2021, the senior secured asset-based revolving credit facility (the “ABL Facility”) had a facility size of $450.0 million, no outstanding borrowings and $28.5 million of outstanding letters of credit, resulting in $421.5 million of borrowing base availability. (2)Other secured subsidiary debt consists of finance lease obligations maturing at various dates from 2022 through 2045.
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INCOME TAXES (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Income Tax Expense | The Company’s income tax benefit (expense) for the three and nine months ended September 30, 2021 and the three and nine months ended September 30, 2020 consisted of the following components:
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STOCKHOLDER'S EQUITY (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Stock by Class | The following table presents the Company's Class A Common Stock, Class B Common Stock and Special Warrants issued and outstanding as of September 30, 2021:
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Schedule of Loss Per Share |
(1) All of the outstanding Special Warrants are included in both the basic and diluted weighted average common shares outstanding of the Company for the three and nine months ended September 30, 2021 and 2020. (2) Outstanding equity awards representing 0.3 million and 9.6 million shares of Class A common stock of the Company for the three months ended September 30, 2021 and 2020, respectively, and 10.6 million and 8.5 million for the nine months ended September 30, 2021 and 2020, respectively, were not included in the computation of diluted earnings per share because to do so would have been antidilutive.
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SEGMENT DATA (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Reportable Segment Results | The following tables present the Company's segment results for the Company for the three and nine months ended September 30, 2021 and 2020:
(1) Consolidated operating expenses consist of Direct operating expenses and Selling, general and administrative expenses and exclude Restructuring expenses, share-based compensation expenses and depreciation and amortization. (2) For a definition of Adjusted EBITDA for the consolidated company and a reconciliation to Operating income, the most closely comparable GAAP measure, and to Net income (loss), please see "Reconciliation of Operating Loss to Adjusted EBITDA" and "Reconciliation of Net Income (Loss) to EBITDA and Adjusted EBITDA" in Item 2 of this Quarterly Report on Form 10-Q. Beginning on January 1, 2021, Segment Adjusted EBITDA became the segment profitability metric reported to the Company's Chief Operating Decision Maker for purposes of making decisions about allocation of resources to, and assessing performance of, each reportable segment.
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BASIS OF PRESENTATION - Narrative (Details) $ in Thousands |
9 Months Ended | 12 Months Ended |
---|---|---|
Sep. 30, 2021
USD ($)
segment
|
Dec. 31, 2020
USD ($)
|
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Accounting Policies [Abstract] | ||
Number of reportable segments | segment | 3 | |
Increase in allowable interest deduction, COVID-19 | $ 179,400 | |
Deferred payment of certain employment taxes, COVID-19 | 29,300 | |
Refundable payroll tax credit, COVID-19 | $ 12,400 | |
Cash and cash equivalents | $ 369,094 | $ 720,662 |
BASIS OF PRESENTATION - Reconciliation of Cash, Cash Equivalents, and Restricted Cash (Details) - USD ($) $ in Thousands |
Sep. 30, 2021 |
Dec. 31, 2020 |
Sep. 30, 2020 |
Dec. 31, 2019 |
---|---|---|---|---|
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 369,094 | $ 720,662 | ||
Restricted cash included in: | ||||
Other current assets | 426 | 0 | ||
Other assets | 0 | 525 | ||
Total cash, cash equivalents and restricted cash in the Statement of Cash Flows | $ 369,520 | $ 721,187 | $ 725,129 | $ 411,618 |
REVENUE - Schedule of Barter and Trade Revenue and Expenses (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Disaggregation of Revenue [Line Items] | ||||
Trade and barter revenues | $ 927,747 | $ 743,829 | $ 2,495,188 | $ 2,011,248 |
Trade and Barter Transactions | ||||
Disaggregation of Revenue [Line Items] | ||||
Trade and barter revenues | 49,200 | 41,430 | 127,654 | 113,861 |
Trade and barter expenses | $ 33,955 | $ 44,109 | $ 101,998 | $ 116,182 |
REVENUE - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
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Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Trade and barter revenues | $ 927,747 | $ 743,829 | $ 2,495,188 | $ 2,011,248 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-10-01 | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Revenue, remaining performance obligation | $ 220,500 | $ 220,500 | ||
Revenue, remaining performance obligation, period | 5 years | 5 years | ||
Advertising Trade and Barter Transactions | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||||
Trade and barter revenues | $ 4,900 | $ 2,300 | $ 9,400 | $ 7,500 |
REVENUE - Schedule of Contract Assets and Liabilities (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Deferred revenue from contracts with customers: | ||||
Beginning balance | $ 149,731 | $ 178,030 | $ 145,493 | $ 162,068 |
Revenue recognized, included in beginning balance | (52,406) | (79,261) | (84,375) | (86,419) |
Additions, net of revenue recognized during period, and other | 56,799 | 73,352 | 93,006 | 96,472 |
Ending balance | $ 154,124 | $ 172,121 | $ 154,124 | $ 172,121 |
REVENUE - Revenue From Leases (Details) $ in Thousands |
Sep. 30, 2021
USD ($)
|
---|---|
Operating Leases, Future Minimum Payments Receivable [Abstract] | |
2021 | $ 277 |
2022 | 910 |
2023 | 759 |
2024 | 579 |
2025 | 394 |
Thereafter | 1,828 |
Total | $ 4,747 |
LEASES - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Leases [Abstract] | ||||
Impairment charges | $ 11,647 | $ 0 | $ 49,391 | $ 1,733,235 |
Non-cash impairment charge on operating lease | 38,000 | |||
Impairment of leasehold improvements | 11,400 | |||
Non-cash operating lease expense | $ 75,800 | $ 78,200 |
LEASES - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Leases [Abstract] | ||
Cash paid for amounts included in measurement of operating lease liabilities | $ 100,815 | $ 99,634 |
Lease liabilities arising from obtaining right-of-use assets | $ 35,317 | $ 41,982 |
PROPERTY, PLANT AND EQUIPMENT, INTANGIBLE ASSETS AND GOODWILL - Narrative (Details) - USD ($) |
3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2021 |
Sep. 30, 2021 |
Mar. 31, 2021 |
Sep. 30, 2020 |
Mar. 31, 2020 |
Sep. 30, 2021 |
Sep. 30, 2021 |
Sep. 30, 2020 |
Dec. 31, 2020 |
Dec. 31, 2019 |
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Indefinite-lived Intangible Assets [Line Items] | ||||||||||
Goodwill | $ 2,313,824,000 | $ 2,313,824,000 | $ 2,313,824,000 | $ 2,145,935,000 | $ 3,325,622,000 | |||||
Annual intangible assets impairment test, forecast period | 10 years | |||||||||
Impairment of intangible assets, indefinite-lived | $ 0 | |||||||||
Impairment of definite-lived intangibles | $ 0 | |||||||||
Total amortization expense related to definite-lived intangible assets | $ 64,300,000 | $ 64,500,000 | $ 218,000,000 | $ 193,000,000 | ||||||
Goodwill impairment | $ 0 | 1,200,000,000 | $ 0 | $ 1,224,374,000 | ||||||
FCC Licenses | ||||||||||
Indefinite-lived Intangible Assets [Line Items] | ||||||||||
Impairment of intangible assets, indefinite-lived | $ 502,700,000 | |||||||||
Triton Digital | ||||||||||
Indefinite-lived Intangible Assets [Line Items] | ||||||||||
Consideration transferred for acquisition | $ 228,500,000 | |||||||||
Assets acquired | 69,400,000 | 69,400,000 | ||||||||
Intangible assets acquired | 191,500,000 | 191,500,000 | ||||||||
Goodwill | 168,200,000 | 168,200,000 | ||||||||
Tax-deductible goodwill | 6,900,000 | 6,900,000 | ||||||||
Liabilities assumed | $ 32,400,000 | $ 32,400,000 |
PROPERTY, PLANT AND EQUIPMENT, INTANGIBLE ASSETS AND GOODWILL - Schedule Of Gross Carrying Amount and Accumulated Amortization for Other Intangible Assets (Details) - USD ($) $ in Thousands |
Sep. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 2,339,112 | $ 2,353,821 |
Accumulated Amortization | (609,747) | (429,329) |
Customer / advertiser relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,636,357 | 1,620,509 |
Accumulated Amortization | (415,720) | (286,066) |
Talent and other contracts | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 338,900 | 375,900 |
Accumulated Amortization | (106,266) | (84,065) |
Trademarks and tradenames | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 335,861 | 326,061 |
Accumulated Amortization | (79,714) | (54,358) |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 27,994 | 31,351 |
Accumulated Amortization | $ (8,047) | $ (4,840) |
PROPERTY, PLANT AND EQUIPMENT, INTANGIBLE ASSETS AND GOODWILL - Schedule Of Future Amortization Expense (Details) $ in Thousands |
Sep. 30, 2021
USD ($)
|
---|---|
Property, Plant and Equipment [Abstract] | |
2022 | $ 254,720 |
2023 | 246,014 |
2024 | 244,589 |
2025 | 213,396 |
2026 | $ 201,474 |
PROPERTY, PLANT AND EQUIPMENT, INTANGIBLE ASSETS AND GOODWILL - Schedule Of Changes In Carrying Amount Of Goodwill (Details) - USD ($) |
3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |
---|---|---|---|---|---|
Mar. 31, 2021 |
Mar. 31, 2020 |
Sep. 30, 2021 |
Sep. 30, 2021 |
Dec. 31, 2020 |
|
Goodwill | |||||
Beginning balance | $ 2,145,935,000 | $ 3,325,622,000 | $ 2,145,935,000 | $ 3,325,622,000 | |
Impairment | 0 | (1,200,000,000) | $ 0 | (1,224,374,000) | |
Acquisitions | 169,491,000 | 44,606,000 | |||
Dispositions | (1,446,000) | (164,000) | |||
Foreign currency | (156,000) | 245,000 | |||
Ending balance | 2,313,824,000 | 2,313,824,000 | 2,145,935,000 | ||
Audio | |||||
Goodwill | |||||
Beginning balance | 2,041,536,000 | 3,221,468,000 | 2,041,536,000 | 3,221,468,000 | |
Impairment | (1,224,374,000) | ||||
Acquisitions | 44,606,000 | ||||
Dispositions | (164,000) | ||||
Foreign currency | 0 | ||||
Ending balance | 2,041,536,000 | ||||
Audio & Media Services Group | |||||
Goodwill | |||||
Beginning balance | 104,399,000 | $ 104,154,000 | 104,399,000 | 104,154,000 | |
Impairment | 0 | ||||
Acquisitions | 0 | 0 | |||
Dispositions | 0 | 0 | |||
Foreign currency | (156,000) | 245,000 | |||
Ending balance | 104,243,000 | 104,243,000 | 104,399,000 | ||
Multiplatform Group | |||||
Goodwill | |||||
Beginning balance | 1,462,217,000 | 1,462,217,000 | |||
Acquisitions | 1,267,000 | ||||
Dispositions | (1,446,000) | ||||
Foreign currency | 0 | ||||
Ending balance | 1,462,038,000 | 1,462,038,000 | 1,462,217,000 | ||
Digital Audio Group | |||||
Goodwill | |||||
Beginning balance | $ 579,319,000 | 579,319,000 | |||
Acquisitions | 168,224,000 | ||||
Dispositions | 0 | ||||
Foreign currency | 0 | ||||
Ending balance | $ 747,543,000 | $ 747,543,000 | $ 579,319,000 |
LONG-TERM DEBT - Mandatorily Redeemable Preferred Stock (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
Dec. 31, 2020 |
May 01, 2019 |
|
Debt Instrument [Line Items] | ||||||
Preferred stock, shares issued (in shares) | 0 | 0 | 0 | |||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 | $ 0.001 | |||
Preferred stock issued | $ 0 | $ 0 | $ 0 | |||
Redeemable Preferred Stock | ||||||
Debt Instrument [Line Items] | ||||||
Preferred stock, shares issued (in shares) | 60,000 | |||||
Preferred stock, par value (in dollars per share) | $ 0.001 | |||||
Liquidation preference value | 60,000 | 60,000 | $ 60,000 | |||
Preferred stock issued | $ 60,000 | |||||
Interest expense paid on dividends | $ 2,300 | $ 2,700 | $ 6,900 | $ 6,900 |
LONG-TERM DEBT - Surety Bonds, Letters of Credit and Guarantees (Details) $ in Millions |
Sep. 30, 2021
USD ($)
|
---|---|
Surety bonds | |
Debt Instrument [Line Items] | |
Guarantees obligations | $ 8.8 |
Commercial standby letters of credit | |
Debt Instrument [Line Items] | |
Guarantees obligations | 28.9 |
Bank Guarantee | |
Debt Instrument [Line Items] | |
Guarantees obligations | $ 0.2 |
COMMITMENTS AND CONTINGENCIES (Details) - shares |
Mar. 08, 2021 |
Feb. 05, 2021 |
---|---|---|
Commitments and Contingencies Disclosure [Abstract] | ||
Beneficial ownership (in shares) | 9,631,329 | |
Beneficial ownership (as a percent) | 8.70% | |
Minimum | ||
Loss Contingencies [Line Items] | ||
FCC petitions for declaratory ruling, percentage of voting equity without prior approval | 5.00% | |
Maximum | ||
Loss Contingencies [Line Items] | ||
FCC petitions for declaratory ruling, percentage of voting equity without prior approval | 14.99% |
INCOME TAXES - Schedule of Components of Income Tax Expense (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Income Tax Disclosure [Abstract] | ||||
Current tax expense | $ (7,651) | $ (1,698) | $ (12,717) | $ (5,134) |
Deferred tax benefit (expense) | 34,798 | 16,926 | (64,520) | 214,615 |
Income tax benefit (expense) | $ 27,147 | $ 15,228 | $ (77,237) | $ 209,481 |
INCOME TAXES - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Income Tax Disclosure [Abstract] | ||||
Effective tax rates (as a percent) | 115.60% | 32.20% | (40.00%) | 9.80% |
Deferred tax benefit on impairment charge | $ 125.5 |
STOCKHOLDER'S EQUITY - Common Stock and Special Warrants (Details) - $ / shares |
Sep. 30, 2021 |
Dec. 31, 2020 |
---|---|---|
Class of Stock [Line Items] | ||
Common stock, shares authorized (in shares) | 2,100,000,000 | |
Common stock, shares issued (in shares) | 147,479,922 | |
Class A Common Stock | ||
Class of Stock [Line Items] | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued (in shares) | 119,669,831 | 64,726,864 |
Class B Common Stock | ||
Class of Stock [Line Items] | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued (in shares) | 22,505,661 | 6,886,925 |
Special Warrants | ||
Class of Stock [Line Items] | ||
Common stock, shares issued (in shares) | 5,304,430 | 74,835,899 |
Common stock, shares outstanding (in shares) | 5,304,430 | 74,835,899 |
STOCKHOLDER'S EQUITY - Computation of Income (Loss) per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
NUMERATOR: | ||||
Net income (loss) attributable to the Company – common shares | $ 3,180 | $ (32,112) | $ (270,829) | $ (1,918,165) |
DENOMINATOR: | ||||
Weighted average common shares outstanding - basic (in shares) | 147,040 | 146,152 | 146,591 | 145,911 |
Stock options and restricted stock (in shares) | 3,357 | 0 | 0 | 0 |
Weighted average common shares outstanding - Diluted (in shares) | 150,397 | 146,152 | 146,591 | 145,911 |
Net income (loss) attributable to the Company per common share: | ||||
Basic (in dollars per share) | $ 0.02 | $ (0.22) | $ (1.85) | $ (13.15) |
Diluted (in dollars per share) | $ 0.02 | $ (0.22) | $ (1.85) | $ (13.15) |
Outstanding equity awards excluded from computation of diluted earnings per share (in shares) | 300 | 9,600 | 10,600 | 8,500 |
SEGMENT DATA (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2021 |
Sep. 30, 2020 |
Sep. 30, 2021 |
Sep. 30, 2020 |
|
Segment Reporting Information [Line Items] | ||||
Revenue | $ 928,051 | $ 744,406 | $ 2,496,321 | $ 2,012,688 |
Operating expenses | 697,838 | 582,282 | 1,979,353 | 1,739,508 |
Adjusted EBITDA | 230,213 | 162,124 | 516,968 | 273,180 |
Depreciation and amortization | (108,100) | (99,379) | (343,408) | (299,494) |
Impairment charges | (11,647) | 0 | (49,391) | (1,733,235) |
Other operating expense, net | (12,341) | (1,675) | (27,491) | (3,247) |
Restructuring expenses | (12,021) | (15,790) | (47,216) | (72,947) |
Share-based compensation expense | (5,993) | (5,885) | (17,581) | (14,728) |
Operating income (loss) | 80,111 | 39,395 | 31,881 | (1,850,471) |
Capital expenditures | 50,274 | 18,977 | 101,335 | 58,523 |
Share-based compensation expense | 5,993 | 5,885 | 17,581 | 14,728 |
Operating segments | Multiplatform Group | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 658,979 | 555,097 | 1,762,726 | 1,541,823 |
Operating expenses | 450,549 | 416,131 | 1,268,107 | 1,265,094 |
Adjusted EBITDA | 208,430 | 138,966 | 494,619 | 276,729 |
Capital expenditures | 35,082 | 12,056 | 66,522 | 34,843 |
Share-based compensation expense | 0 | 0 | 0 | 0 |
Operating segments | Digital Audio Group | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 205,769 | 116,200 | 561,252 | 302,203 |
Operating expenses | 138,646 | 81,042 | 399,828 | 231,589 |
Adjusted EBITDA | 67,123 | 35,158 | 161,424 | 70,614 |
Capital expenditures | 6,223 | 4,029 | 17,934 | 10,714 |
Share-based compensation expense | 0 | 0 | 0 | 0 |
Operating segments | Audio & Media Services Group | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 66,078 | 75,039 | 182,390 | 174,517 |
Operating expenses | 43,656 | 46,247 | 124,148 | 127,774 |
Adjusted EBITDA | 22,422 | 28,792 | 58,242 | 46,743 |
Capital expenditures | 3,967 | 850 | 6,158 | 2,473 |
Share-based compensation expense | 0 | 0 | 0 | 0 |
Corporate and other reconciling items | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Operating expenses | 67,762 | 40,792 | 197,317 | 120,906 |
Adjusted EBITDA | (67,762) | (40,792) | (197,317) | (120,906) |
Capital expenditures | 5,002 | 2,042 | 10,721 | 10,493 |
Share-based compensation expense | 5,993 | 5,885 | 17,581 | 14,728 |
Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | (2,775) | (1,930) | (10,047) | (5,855) |
Operating expenses | (2,775) | (1,930) | (10,047) | (5,855) |
Adjusted EBITDA | 0 | 0 | 0 | 0 |
Capital expenditures | 0 | 0 | 0 | 0 |
Share-based compensation expense | 0 | 0 | 0 | 0 |
Intersegment revenues | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 2,775 | 1,930 | 10,047 | 5,855 |
Intersegment revenues | Multiplatform Group | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 112 | 168 | 447 | 503 |
Intersegment revenues | Digital Audio Group | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 1,475 | 0 | 4,547 | 0 |
Intersegment revenues | Audio & Media Services Group | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | $ 1,188 | $ 1,762 | $ 5,053 | $ 5,352 |
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