Guarantor Subsidiaries

9 Months Ended

Sep. 30, 2012

Guarantor Subsidiaries [Abstract]

Guarantor Subsidiaries

NOTE 10 – GUARANTOR SUBSIDIARIES

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

(In thousands)			As of September 30, 2012
		Parent		Subsidiary		Guarantor		Non-Guarantor
		Company		Issuer		Subsidiaries		Subsidiaries		Eliminations		Consolidated
Cash and cash equivalents		$	-	$	1	$	431,228	$	865,414	$	-	$	1,296,643
Accounts receivable, net of allowance			-		-		712,900		692,359		-		1,405,259
Intercompany receivables			32,686		4,283,900		247,556		-		(4,564,142)		-
Other current assets			4,808		40,162		100,459		397,368		(177,289)		365,508
	Total Current Assets		37,494		4,324,063		1,492,143		1,955,141		(4,741,431)		3,067,410
Property, plant and equipment, net			-		-		808,450		2,198,001		-		3,006,451
Definite-lived intangibles, net			-		-		1,229,404		582,272		-		1,811,676
Indefinite-lived intangibles - licenses			-		-		2,413,171		-		-		2,413,171
Indefinite-lived intangibles - permits			-		-		-		1,106,799		-		1,106,799
Goodwill			-		-		3,335,479		860,377		-		4,195,856
Intercompany notes receivable			-		962,000		-				(962,000)		-
Long-term intercompany receivable			-		-		-		723,311		(723,311)		-
Investment in subsidiaries			(8,450,651)		3,768,444		671,929		-		4,010,278		-
Other assets			-		126,282		307,422		831,068		(463,816)		800,956
	Total Assets	$	(8,413,157)	$	9,180,789	$	10,257,998	$	8,256,969	$	(2,880,280)	$	16,402,319
Accounts payable and accrued expenses		$	(1,144)	$	(103,198)	$	345,442	$	600,807	$	-	$	841,907
Accrued interest			-		86,027		-		2,370		(11,211)		77,186
Intercompany payable			-				4,412,200		151,942		(4,564,142)		-
Current portion of long-term debt			-		400,170		-		19,710		-		419,880
Deferred income			-		-		65,746		111,233		-		176,979
Other current liabilities			-		102,154		-		-		-		102,154
	Total Current Liabilities		(1,144)		485,153		4,823,388		886,062		(4,575,353)		1,618,106
Long-term debt			-		16,469,044		4,000		4,718,792		(873,910)		20,317,926
Long-term intercompany payable			-		723,311		-		-		(723,311)		-
Intercompany long-term debt			-		-		962,000		-		(962,000)		-
Deferred income taxes			(14,290)		(74,662)		1,075,945		825,230		2,809		1,815,032
Other long-term liabilities			-		28,594		181,241		288,757		-		498,592
Total member's interest (deficit)			(8,397,723)		(8,450,651)		3,211,424		1,538,128		4,251,485		(7,847,337)
	Total Liabilities and Member's Equity (Deficit)	$	(8,413,157)	$	9,180,789	$	10,257,998	$	8,256,969	$	(2,880,280)	$	16,402,319

(In thousands)			As of December 31, 2011
		Parent		Subsidiary		Guarantor		Non-Guarantor
		Company		Issuer		Subsidiaries		Subsidiaries		Eliminations		Consolidated
Cash and cash equivalents		$	-	$	1	$	461,572	$	767,109	$	-	$	1,228,682
Accounts receivable, net of allowance			-		-		694,548		704,587		-		1,399,135
Intercompany receivables			30,270		4,824,634		-		-		(4,854,904)		-
Other current assets			2,251		46,018		107,564		277,695		(76,060)		357,468
	Total Current Assets		32,521		4,870,653		1,263,684		1,749,391		(4,930,964)		2,985,285
Property, plant and equipment, net			-		-		815,245		2,248,082		-		3,063,327
Definite-lived intangibles, net			-		-		1,389,935		627,825		-		2,017,760
Indefinite-lived intangibles - licenses			-		-		2,411,367		-		-		2,411,367
Indefinite-lived intangibles - permits			-		-		-		1,105,704		-		1,105,704
Goodwill			-		-		3,325,771		860,947		-		4,186,718
Intercompany notes receivable			-		962,000		-		-		(962,000)		-
Long-term intercompany receivable			-		-		-		656,040		(656,040)		-
Investment in subsidiaries			(8,342,987)		5,234,229		2,844,451		-		264,307		-
Other assets			-		167,337		254,435		907,567		(557,461)		771,878
	Total Assets	$	(8,310,466)	$	11,234,219	$	12,304,888	$	8,155,556	$	(6,842,158)	$	16,542,039
Accounts payable and accrued expenses		$	(641)	$	(61,478)	$	292,368	$	626,478	$	-	$	856,727
Accrued interest			-		189,144		(1)		2,277		(31,059)		160,361
Intercompany payable			-		-		4,743,944		110,960		(4,854,904)		-
Current portion of long-term debt			-		243,927		905		23,806		-		268,638
Deferred income			-		-		50,416		92,820		-		143,236
	Total Current Liabilities	$	(641)	$	371,593	$	5,087,632	$	856,341	$	(4,885,963)	$	1,428,962
Long-term debt			-		18,305,183		3,321		2,522,103		(892,076)		19,938,531
Long-term intercompany payable			-		655,930		110		-		(656,040)		-
Intercompany long-term debt			-		-		962,000		-		(962,000)		-
Deferred income taxes			(13,845)		39,173		1,055,533		858,908		(1,170)		1,938,599
Other long-term liabilities			-		205,327		220,546		282,015		-		707,888
Total member's interest (deficit)			(8,295,980)		(8,342,987)		4,975,746		3,636,189		555,091		(7,471,941)
	Total Liabilities and Member's Equity (Deficit)	$	(8,310,466)	$	11,234,219	$	12,304,888	$	8,155,556	$	(6,842,158)	$	16,542,039

(In thousands)		Three Months Ended September 30, 2012
		Parent		Subsidiary		Guarantor		Non-Guarantor
		Company		Issuer		Subsidiaries		Subsidiaries		Eliminations		Consolidated
Revenue		$	-	$	-	$	853,665	$	737,693	$	(4,027)	$	1,587,331
Operating expenses:
	Direct operating expenses		-		-		230,834		396,032		(2,340)		624,526
	Selling, general and administrative expenses		-		-		280,614		140,928		(1,687)		419,855
	Corporate expenses		2,661		-		42,931		25,219		-		70,811
	Depreciation and amortization		-		-		81,650		100,700		-		182,350
	Other operating income (expense) – net		-		-		(279)		42,397		-		42,118
Operating income (loss)			(2,661)		-		217,357		117,211		-		331,907
Interest expense – net			-		319,407		5,845		43,158		19,800		388,210
Equity in earnings (loss) of nonconsolidated affiliates			(29,073)		171,077		17,166		3,702		(159,209)		3,663
Other income (expense) – net			-		-		1,745		(921)		-		824
Income (loss) before income taxes			(31,734)		(148,330)		230,423		76,834		(179,009)		(51,816)
Income tax benefit (expense)			973		119,257		(81,474)		(25,524)		-		13,232
Consolidated net income (loss)			(30,761)		(29,073)		148,949		51,310		(179,009)		(38,584)
	Less amount attributable to noncontrolling interest		-		-		4,436		7,541		-		11,977
Net income (loss) attributable to the Company		$	(30,761)	$	(29,073)	$	144,513	$	43,769	$	(179,009)	$	(50,561)
Other comprehensive income (loss), net of tax:
	Foreign currency translation adjustments		-		-		(257)		21,476		-		21,219
	Unrealized gain (loss) on securities and derivatives:
	Unrealized holding gain (loss) on marketable securities		-		-		17,755		(1,376)		289		16,668
	Unrealized holding loss on cash flow derivatives		-		11,808		-		-		-		11,808
	Reclassification adjustment		-		-		-		(688)		-		(688)
	Equity in subsidiary comprehensive income (loss)		45,758		33,950		18,228		-		(97,936)		-
Comprehensive income (loss)			14,997		16,685		180,239		63,181		(276,656)		(1,554)
	Less amount attributable to noncontrolling interest		-		-		1,776		1,184		-		2,960
Comprehensive income (loss) attributable to the Company		$	14,997	$	16,685	$	178,463	$	61,997	$	(276,656)	$	(4,514)

(In thousands)			Three Months Ended September 30, 2011
		Parent		Subsidiary		Guarantor		Non-Guarantor
		Company		Issuer		Subsidiaries		Subsidiaries		Eliminations		Consolidated
Revenue		$	-	$	-	$	832,949	$	755,472	$	(5,069)	$	1,583,352
Operating expenses:													-
	Direct operating expenses		-		-		245,460		412,677		(3,974)		654,163
	Selling, general and administrative expenses		-		-		270,016		133,239		(1,095)		402,160
	Corporate expenses		2,599		-		29,313		22,335		-		54,247
	Depreciation and amortization		-		-		82,266		115,266		-		197,532
	Other operating income – net		-		-		(6,527)		37		-		(6,490)
Operating income (loss)			(2,599)		-		199,367		71,992		-		268,760
Interest expense – net			2		343,039		(1,024)		13,109		14,107		369,233
Equity in earnings (loss) of nonconsolidated affiliates			(62,574)		153,264		9,327		5,242		(100,049)		5,210
Other income (expense) – net			-		(1)		(252)		3,286		4,274		7,307
Income (loss) before income taxes			(65,175)		(189,776)		209,466		67,411		(109,882)		(87,956)
Income tax benefit (expense)			952		127,202		(78,831)		(28,658)		-		20,665
Consolidated net income (loss)			(64,223)		(62,574)		130,635		38,753		(109,882)		(67,291)
	Less amount attributable to noncontrolling interest		-		-		192		6,573		-		6,765
Net income (loss) attributable to the Company		$	(64,223)	$	(62,574)	$	130,443	$	32,180	$	(109,882)	$	(74,056)
Other comprehensive income (loss), net of tax:
	Foreign currency translation adjustments		-		-		625		(102,576)		-		(101,951)
	Unrealized gain (loss) on securities and derivatives:
	Unrealized holding gain (loss) on marketable securities		-		-		(16,319)		(5,771)		792		(21,298)
	Unrealized holding loss on cash flow derivatives		-		10,848		-		-		-		10,848
	Reclassification adjustment		-		-		-		86		-		86
	Equity in subsidiary comprehensive income (loss)		(101,219)		(112,067)		(106,201)		-		319,487		-
Comprehensive income (loss)			(165,442)		(163,793)		8,548		(76,081)		210,397		(186,371)
	Less amount attributable to noncontrolling interest		-		-		(10,620)		(1,268)		189		(11,699)
Comprehensive income (loss) attributable to the Company		$	(165,442)	$	(163,793)	$	19,168	$	(74,813)	$	210,208	$	(174,672)

(In thousands)		Nine Months Ended September 30, 2012
		Parent		Subsidiary		Guarantor		Non-Guarantor
		Company		Issuer		Subsidiaries		Subsidiaries		Eliminations		Consolidated
Revenue		$	-	$	-	$	2,398,690	$	2,163,928	$	(12,070)	$	4,550,548
Operating expenses:
	Direct operating expenses		-		-		650,350		1,201,752		(6,047)		1,846,055
	Selling, general and administrative expenses		-		-		813,996		433,633		(6,023)		1,241,606
	Corporate expenses		8,130		-		125,670		77,367		-		211,167
	Depreciation and amortization		-		-		246,165		293,390		-		539,555
	Other operating income (expense) – net		-		-		(1,987)		49,146		-		47,159
Operating income (loss)			(8,130)		-		560,522		206,932		-		759,324
Interest expense – net			-		975,090		17,566		99,887		55,550		1,148,093
Equity in earnings (loss) of nonconsolidated affiliates			(163,057)		440,803		(30,015)		12,332		(248,149)		11,914
Other income (expense) – net			-		(15,167)		1,931		5,842		(9,452)		(16,846)
Income (loss) before income taxes			(171,187)		(549,454)		514,872		125,219		(313,151)		(393,701)
Income tax benefit (expense)			2,974		386,397		(154,024)		(56,054)		-		179,293
Consolidated net income (loss)			(168,213)		(163,057)		360,848		69,165		(313,151)		(214,408)
	Less amount attributable to noncontrolling interest		-		-		3,821		14,986		-	`	18,807
Net income (loss) attributable to the Company		$	(168,213)	$	(163,057)	$	357,027	$	54,179	$	(313,151)	$	(233,215)
Other comprehensive income (loss), net of tax:
	Foreign currency translation adjustments		-		-		(724)		18,652		-		17,928
	Unrealized gain (loss) on securities and derivatives:
	Unrealized holding gain (loss) on marketable securities		-		-		18,476		(7,743)		6,666		17,399
	Unrealized holding gain (loss) on cash flow derivatives		-		36,322		-		-		-		36,322
	Reclassification adjustment		2		(2)		-		(534)		-		(534)
	Equity in subsidiary comprehensive income (loss)		63,570		27,250		10,926		-		(101,746)		-
Comprehensive income (loss)			(104,641)		(99,487)		385,705		64,554		(408,231)		(162,100)
	Less amount attributable to noncontrolling interest		-		-		1,428		(551)		-		877
Comprehensive income (loss) attributable to the Company		$	(104,641)	$	(99,487)	$	384,277	$	65,105	$	(408,231)	$	(162,977)

(In thousands)		Nine Months Ended September 30, 2011
		Parent		Subsidiary		Guarantor		Non-Guarantor
		Company		Issuer		Subsidiaries		Subsidiaries		Eliminations		Consolidated
Revenue		$	-	$	-	$	2,285,970	$	2,237,046	$	(14,452)	$	4,508,564
Operating expenses:
	Direct operating expenses		-		-		637,418		1,235,725		(4,896)		1,868,247
	Selling, general and administrative expenses		-		-		784,686		420,176		(9,556)		1,195,306
	Corporate expenses		8,209		-		87,515		67,356		-		163,080
	Depreciation and amortization		-		-		244,380		326,504		-		570,884
	Other operating income – net		-		-		4,314		9,139		-		13,453
Operating income (loss)			(8,209)		-		536,285		196,424		-		724,500
Interest expense – net			13		1,020,220		(3,697)		22,603		58,710		1,097,849
Equity in earnings (loss) of nonconsolidated affiliates			(199,417)		440,734		30,020		13,478		(271,359)		13,456
Other income (expense) – net			-		(5,721)		(614)		2,815		4,274		754
Income (loss) before income taxes			(207,639)		(585,207)		569,388		190,114		(325,795)		(359,139)
Income tax benefit (expense)			3,008		385,790		(200,507)		(65,781)		-		122,510
Consolidated net income (loss)			(204,631)		(199,417)		368,881		124,333		(325,795)		(236,629)
	Less amount attributable to noncontrolling interest		-		-		9,199		13,239		-		22,438
Net income (loss) attributable to the Company		$	(204,631)	$	(199,417)	$	359,682	$	111,094	$	(325,795)	$	(259,067)
Other comprehensive income (loss), net of tax:
	Foreign currency translation adjustments		-		-		677		(26,756)		-		(26,079)
	Unrealized gain (loss) on securities and derivatves:
	Unrealized holding gain (loss) on marketable securities		-		-		(2,830)		(5,251)		792		(7,289)
	Unrealized holding loss on cash flow derivatives		-		22,791		-		-		-		22,791
	Reclassification adjustment		-		-		-		234		-		234
	Equity in subsidiary comprehensive income (loss)		(12,380)		(35,171)		(35,847)		-		83,398		-
Comprehensive income (loss)			(217,011)		(211,797)		321,682		79,321		(241,605)		(269,410)
	Less amount attributable to noncontrolling interest		-		-		(3,621)		4,866		189		1,434
Comprehensive income (loss) attributable to the Company		$	(217,011)	$	(211,797)	$	325,303	$	74,455	$	(241,794)	$	(270,844)

(In thousands)		Nine Months Ended September 30, 2012
		Parent		Subsidiary		Guarantor		Non-Guarantor
		Company		Issuer		Subsidiaries		Subsidiaries		Eliminations		Consolidated
Cash flows from operating activities:
Consolidated net income (loss)		$	(168,213)	$	(163,057)	$	360,848	$	69,165	$	(313,151)	$	(214,408)
Reconciling items:
	Depreciation and amortization		-		-		246,165		293,390		-		539,555
	Deferred taxes		(445)		(135,654)		13,989		(35,852)		-		(157,962)
	Gain on disposal of operating assets		-		-		1,987		(49,146)		-		(47,159)
	Loss on extinguishment of debt		-		15,167		-		-		-		15,167
	Provision for doubtful accounts		-		-		6,209		4,800		-		11,009
	Share-based compensation		-		-		11,074		9,016		-		20,090
	Equity in (earnings) loss of nonconsolidated affiliates		163,057		(440,803)		30,015		(12,332)		248,149		(11,914)
	Amortization of deferred financing charges and note discounts, net		-		147,096		(4,507)		(73,877)		55,550		124,262
	Other reconciling items – net		-		-		1,196		18,717		-		19,913
Changes in operating assets and liabilities:
	Decrease in accounts receivable		-		-		(24,839)		36		-		(24,803)
	Increase in deferred income		-		-		12,209		25,736		-		37,945
	Increase (decrease) in accrued expenses		-		-		(244)		(14,710)		-		(14,954)
	Increase (decrease) in accounts payable and other liabilities		-		(16,963)		(29,710)		1,064		-		(45,609)
	Increase in accrued interest		-		(103,117)		5,393		88		14,456		(83,180)
	Changes in other operating assets and liabilities, net of effects of acquisitions and dispositions		(3,060)		(41,720)		30,513		16,942		(14,456)		(11,781)
Net cash provided by (used for) operating activities			(8,661)		(739,051)		660,298		253,037		(9,452)		156,171
Cash flows from investing activities:
	Dividends from subsidiaries		-		1,925,661		1,916,209				(3,841,870)		-
	Purchases of property, plant and equipment		-		-		(72,542)		(187,939)		-		(260,481)
	Purchases of businesses		-		-		(15,395)		(4,721)		-		(20,116)
	Acquisition of operating assets		-		-		(8,945)		(4,677)				(13,622)
	Proceeds from disposal of assets		-		-		4,868		54,047				58,915
	Change in other – net		-		-		(6,057)		45,681		(49,456)		(9,832)
Net cash provided by (used for) investing activities			-		1,925,661		1,818,138		(97,609)		(3,891,326)		(245,136)
Cash flows from financing activities:
	Draws on credit facilities		-		602,500		-		2,063				604,563
	Payments on credit facilities		-		(1,918,051)		-		(1,922)				(1,919,973)
	Intercompany funding		8,661		609,283		(591,649)		(26,295)				-
	Proceeds from long-term debt		-		-		-		2,200,000				2,200,000
	Payments on long-term debt		-		(480,342)		(928)		(7,301)		50,149		(438,422)
	Dividends paid		-		-		(1,916,207)		(2,179,849)		3,851,322		(244,734)
	Deferred financing charges		-		-		-		(40,002)				(40,002)
	Change in other – net		-		-		4		(3,817)		(693)		(4,506)
Net cash provided by (used for) financing activities			8,661		(1,186,610)		(2,508,780)		(57,123)		3,900,778		156,926
Net increase (decrease) in cash and cash equivalents			-		-		(30,344)		98,305		-		67,961
Cash and cash equivalents at beginning of period			-		1		461,572		767,109		-		1,228,682
Cash and cash equivalents at end of period		$	-	$	1	$	431,228	$	865,414	$	-	$	1,296,643

(In thousands)		Nine Months Ended September 30, 2011
		Parent		Subsidiary		Guarantor		Non-Guarantor
		Company		Issuer		Subsidiaries		Subsidiaries		Eliminations		Consolidated
Cash flows from operating activities:
Consolidated net income (loss)		$	(204,631)	$	(199,417)	$	368,881	$	124,333	$	(325,795)	$	(236,629)
Reconciling items:
	Depreciation and amortization		-		-		244,380		326,504		-		570,884
	Deferred taxes		(843)		(183,775)		76,627		(14,895)		-		(122,886)
	Gain on disposal of operating assets		-		-		(4,314)		(9,139)		-		(13,453)
	Loss on extinguishment of debt		-		5,721		-		-		(4,274)		1,447
	Provision for doubtful accounts		-		-		8,195		5,105		-		13,300
	Share-based compensation		-		-		6,177		8,104		-		14,281
	Equity in (earnings) loss of non consolidated affiliates		199,417		(440,734)		(30,020)		(13,478)		271,359		(13,456)
	Amortization of deferred financing charges and note discounts, net		-		169,455		(4,487)		(80,158)		58,709		143,519
	Other reconciling items – net		-		-		200		7,248		1		7,449
Changes in operating assets and liabilities:
	Increase in accounts receivable		-		-		1,863		14,728		-		16,591
	Increase in deferred income		-		-		7,130		27,048		-		34,178
	Increase (decrease) in accrued expenses		-		(3,216)		(92,647)		(11,047)		-		(106,910)
	Increase (decrease) in accounts payable and other liabilities		-		-		(48,288)		739		-		(47,549)
	Increase in accrued interest		-		(87,054)		5,391		705		14,716		(66,242)
	Changes in other operating assets and liabilities, net of effects of acquisitions and dispositions		(2,775)		17,976		(43,492)		(30,135)		(14,716)		(73,142)
Net cash provided by (used for) operating activities			(8,832)		(721,044)		495,596		355,662		-		121,382
Cash flows from investing activities:
	Proceeds from maturity of Clear Channel notes		-		-		-		167,022		(167,022)		-
	Purchases of property, plant and equipment		-		-		(52,295)		(165,841)		-		(218,136)
	Purchases of businesses		-		-		(211)		(33,671)		-		(33,882)
	Acquisition of operating assets		-		-		(1,113)		(13,239)		-		(14,352)
	Proceeds from disposal of assets		-		-		41,381		11,008		-		52,389
	Investment in Clear Channel notes		-		-		-		(55,250)		55,250		-
	Change in other – net		-		-		67		(9,676)		11,325		1,716
Net cash provided by (used for) investing activities			-		-		(12,171)		(99,647)		(100,447)		(212,265)
Cash flows from financing activities:
	Draws on credit facilities		-		55,000		-		-		-		55,000
	Payments on credit facilities		-		(956,181)		-		(3,202)		-		(959,383)
	Intercompany funding		9,139		1,372,223		(1,399,528)		18,166		-		-
	Proceeds from long-term debt		-		1,724,650		1,603		1,560		-		1,727,813
	Payments on long-term debt		-		(1,428,051)		(977)		(108,259)		167,022		(1,370,265)
	Deferred financing charges		-		(46,597)		-		-		-		(46,597)
	Repurchase of long-term debt		-		-		-		-		(55,250)		(55,250)
	Change in other – net		(307)		-		250		(4,598)		(11,325)		(15,980)
Net cash provided by (used for) financing activities			8,832		721,044		(1,398,652)		(96,333)		100,447		(664,662)
Net increase (decrease) in cash and cash equivalents			-		-		(915,227)		159,682		-		(755,545)
Cash and cash equivalents at beginning of period			-		1		1,220,362		700,563		-		1,920,926
Cash and cash equivalents at end of period		$	-	$	1	$	305,135	$	860,245	$	-	$	1,165,381