Guarantor Subsidiaries

6 Months Ended

Jun. 30, 2011

Guarantor Subsidiaries

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)	June 30, 2011
	Parent Company		Subsidiary Issuer		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations		Consolidated
Cash and cash equivalents	$	—	$	1	$	443,467	$	775,688	$	—	$	1,219,156
Accounts receivable, net		—		—		688,444		764,816		—		1,453,260
Intercompany receivables (1)		27,218		5,791,312		—		27,246		(5,845,776)		—
Other current assets		1,577		45,885		86,105		283,790		(64,757)		352,600
Total Current Assets		28,795		5,837,198		1,218,016		1,851,540		(5,910,533)		3,025,016
Property, plant and equipment, net		—		—		833,596		2,284,624		—		3,118,220
Definite-lived intangibles, net		—		—		1,499,281		682,705		—		2,181,986
Indefinite-lived intangibles		—		—		2,418,366		1,113,889		—		3,532,255
Goodwill		—		—		3,322,359		888,406		—		4,210,765
Intercompany notes receivable		—		212,000		—		—		(212,000)		—
Long-term intercompany receivable		—		—		—		483,917		(483,917)		—
Investment in subsidiaries		(8,171,209)		4,998,322		2,915,924		—		256,963		—
Other assets		—		192,405		249,146		814,554		(442,296)		813,809
Total Assets	$	(8,142,414)	$	11,239,925	$	12,456,688	$	8,119,635	$	(6,791,783)	$	16,882,051
Accounts payable and accrued expenses	$	(866)	$	(75,124)	$	303,415	$	624,111	$	—	$	851,536
Accrued interest		—		190,194		—		1,860		(29,775)		162,279
Intercompany payable (1)		—		—		5,845,776		—		(5,845,776)		—
Current portion of long-term debt		—		229,723		1,420		58,800		—		289,943
Deferred income		—		—		63,903		156,401		—		220,304
Total Current Liabilities		(866)		344,793		6,214,514		841,172		(5,875,551)		1,524,062
Long-term debt		—		18,193,635		4,276		2,500,211		(813,063)		19,885,059
Long-term intercompany payable		—		483,917		—		—		(483,917)		—
Intercompany long-term debt		—		—		212,000		—		(212,000)		—
Deferred income taxes		(13,329)		149,724		1,014,874		854,203		—		2,005,472
Other long-term liabilities		—		239,065		221,472		276,946		—		737,483
Total member's interest (deficit)		(8,128,219)		(8,171,209)		4,789,552		3,647,103		592,748		(7,270,025)
Total Liabilities and Member's Interest (Deficit)	$	(8,142,414)	$	11,239,925	$	12,456,688	$	8,119,635	$	(6,791,783)	$	16,882,051

(1) The intercompany payable balance includes approximately $7.3 billion of designated amounts of borrowings under the senior secured credit facilities by certain Guarantor Subsidiaries that are Co-Borrowers and primary obligors thereunder with respect to these amounts. These amounts were incurred by the Co-Borrowers at the time of the closing of the merger, but were funded and will be repaid through accounts of the Subsidiary Issuer. The intercompany receivables balance includes the amount of such borrowings, which are required to be repaid to the lenders under the senior secured credit facilities by the Guarantor Subsidiaries as Co-Borrowers and primary obligors thereunder.

(In thousands)	December 31, 2010
	Parent Company		Subsidiary Issuer		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations		Consolidated
Cash and cash equivalents	$	—	$	1	$	1,220,362	$	700,563	$	—	$	1,920,926
Accounts receivable, net		—		—		636,970		736,910		—		1,373,880
Intercompany receivables (1)		28,826		6,910,565		53,162		—		(6,992,553)		—
Other current assets		1,827		42,480		77,598		358,082		(171,620)		308,367
Total Current Assets		30,653		6,953,046		1,988,092		1,795,555		(7,164,173)		3,603,173
Property, plant and equipment, net		—		—		846,459		2,299,095		—		3,145,554
Definite-lived intangibles, net		—		—		1,572,829		715,320		—		2,288,149
Indefinite-lived intangibles		—		—		2,423,828		1,114,413		—		3,538,241
Goodwill		—		—		3,253,330		865,996		—		4,119,326
Intercompany notes receivable		—		212,000		—		—		(212,000)		—
Long-term intercompany receivable		—		—		—		383,778		(383,778)		—
Investment in subsidiaries		(8,120,253)		4,515,224		2,821,678		—		783,351		—
Other assets		—		178,550		225,064		800,818		(438,493)		765,939
Total Assets	$	(8,089,600)	$	11,858,820	$	13,131,280	$	7,974,975	$	(7,415,093)	$	17,460,382
Accounts payable and accrued expenses	$	(941)	$	63,888	$	400,449	$	646,093	$	(31,423)	$	1,078,066
Intercompany payable (1)		—		—		6,939,391		53,162		(6,992,553)		—
Current portion of long-term debt		—		826,059		—		41,676		—		867,735
Deferred income		—		—		49,423		103,355		—		152,778
Total Current Liabilities		(941)		889,947		7,389,263		844,286		(7,023,976)		2,098,579
Long-term debt		—		18,172,562		4,000		2,522,133		(959,078)		19,739,617
Long-term intercompany payable		—		383,778		—		—		(383,778)		—
Intercompany long-term debt		—		—		212,000		—		(212,000)		—
Deferred income taxes		(12,665)		269,578		927,685		865,598		—		2,050,196
Other long-term liabilities		—		263,208		261,434		252,034		—		776,676
Total member's interest (deficit)		(8,075,994)		(8,120,253)		4,336,898		3,490,924		1,163,739		(7,204,686)
Total Liabilities and Member's Interest (Deficit)	$	(8,089,600)	$	11,858,820	$	13,131,280	$	7,974,975	$	(7,415,093)	$	17,460,382

(1) The intercompany payable balance includes approximately $7.3 billion of designated amounts of borrowings under the senior secured credit facilities by certain Guarantor Subsidiaries that are Co-Borrowers and primary obligors thereunder with respect to these amounts. These amounts were incurred by the Co-Borrowers at the time of the closing of the merger, but were funded and will be repaid through accounts of the Subsidiary Issuer. The intercompany receivables balance includes the amount of such borrowings, which are required to be repaid to the lenders under the senior secured credit facilities by the Guarantor Subsidiaries as Co-Borrowers and primary obligors thereunder.

(In thousands)	Three Months Ended June 30, 2011
	Parent Company		Subsidiary Issuer		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations		Consolidated
Revenue	$	—	$	—	$	784,493	$	824,499	$	(4,606)	$	1,604,386
Operating expenses:
Direct operating expenses		—		—		208,824		430,604		2,912		642,340
Selling, general and administrative expenses		—		—		258,898		156,731		(7,518)		408,111
Corporate expenses		2,951		—		30,497		23,038		—		56,486
Depreciation and amortization		—		—		81,306		108,335		—		189,641
Other operating income (expense)– net		—		—		(1,071)		4,300		—		3,229
Operating income (loss)		(2,951)		—		203,897		110,091		—		311,037
Interest expense – net		4		332,242		(1,396)		9,544		18,556		358,950
Equity in earnings (loss) of nonconsolidated affiliates		(32,749)		175,700		27,639		5,276		(170,595)		5,271
Other income (expense) – net		—		1		(156)		(4,362)		—		(4,517)
Income (loss) before income taxes		(35,704)		(156,541)		232,776		101,461		(189,151)		(47,159)
Income tax benefit (expense)		1,081		123,792		(76,523)		(39,166)		—		9,184
Consolidated net income (loss)		(34,623)		(32,749)		156,253		62,295		(189,151)		(37,975)
Less amount attributable to noncontrolling interest		—		—		7,687		7,517		—		15,204
Net income (loss) attributable to the Company	$	(34,623)	$	(32,749)	$	148,566	$	54,778	$	(189,151)	$	(53,179)
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments		—		—		331		36,234		—		36,565
Unrealized gain (loss) on securities and derivatives:
Unrealized holding gain (loss) on marketable securities		—		—		13,006		(1,949)		—		11,057
Unrealized holding loss on cash flow derivatives		—		(1,399)		—		—		—		(1,399)
Reclassification adjustment		—		—		—		59		—		59
Equity in subsidiary comprehensive income (loss)		39,847		41,246		30,512		—		(111,605)		—
Comprehensive income (loss)		5,224		7,098		192,415		89,122		(300,756)		(6,897)
Less amount attributable to noncontrolling interest		—		—		2,603		3,832		—		6,435
Comprehensive income (loss) attributable to the Company	$	5,224	$	7,098	$	189,812	$	85,290	$	(300,756)	$	(13,332)

(In thousands)	Three Months Ended June 30, 2010
	Parent Company		Subsidiary Issuer		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations		Consolidated
Revenue	$	—	$	—	$	783,377	$	707,723	$	(1,091)	$	1,490,009
Operating expenses:
Direct operating expenses		—		—		214,094		387,123		(301)		600,916
Selling, general and administrative expenses		—		—		242,507		134,920		(790)		376,637
Corporate expenses		3,425		5		36,922		23,757		—		64,109
Depreciation and amortization		—		—		78,501		105,677		—		184,178
Other operating income – net		—		—		1,544		1,720		—		3,264
Operating income (loss)		(3,425)		(5)		212,897		57,966		—		267,433
Interest expense – net		5		355,544		(1,073)		12,946		18,157		385,579
Equity in earnings (loss) of nonconsolidated affiliates		(65,995)		156,539		(4,463)		3,750		(86,084)		3,747
Other income (expense) – net		—		—		37		(824)		—		(787)
Income (loss) before income taxes		(69,425)		(199,010)		209,544		47,946		(104,241)		(115,186)
Income tax benefit (expense)		1,258		133,015		(77,778)		(18,516)		—		37,979
Consolidated net income (loss)		(68,167)		(65,995)		131,766		29,430		(104,241)		(77,207)
Less amount attributable to noncontrolling interest		—		—		2,494		6,623		—		9,117
Net income (loss) attributable to the Company	$	(68,167)	$	(65,995)	$	129,272	$	22,807	$	(104,241)	$	(86,324)
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments		—		—		280		(74,503)		—		(74,223)
Unrealized gain (loss) on securities and derivatives:
Unrealized holding gain (loss) on marketable securities		—		—		1,916		(2,328)		—		(412)
Unrealized holding loss on cash flow derivatives		—		(4,992)		—		—		—		(4,992)
Reclassification adjustment		—		—		—		(1,366)		—		(1,366)
Equity in subsidiary comprehensive income (loss)		(69,421)		(64,430)		(74,306)		—		208,157		—
Comprehensive income (loss)		(137,588)		(135,417)		57,162		(55,390)		103,916		(167,317)
Less amount attributable to noncontrolling interest		—		—		(7,681)		(3,891)		—		(11,572)
Comprehensive income (loss) attributable to the Company	$	(137,588)	$	(135,417)	$	64,843	$	(51,499)	$	103,916	$	(155,745)

(In thousands)	Six Months Ended June 30, 2011
	Parent Company		Subsidiary Issuer		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations		Consolidated
Revenue	$	—	$	—	$	1,453,021	$	1,481,574	$	(9,383)	$	2,925,212
Operating expenses:
Direct operating expenses		—		—		416,469		823,048		(922)		1,238,595
Selling, general and administrative expenses		—		—		490,159		286,937		(8,461)		768,635
Corporate expenses		5,610		—		58,202		45,021		—		108,833
Depreciation and amortization		—		—		162,114		211,238		—		373,352
Other operating income – net		—		—		10,841		9,102		—		19,943
Operating income (loss)		(5,610)		—		336,918		124,432		—		455,740
Interest expense – net		11		677,181		(2,673)		9,494		44,603		728,616
Equity in earnings (loss) of nonconsolidated affiliates		(136,843)		287,470		20,693		8,236		(171,310)		8,246
Other income (expense) – net		—		(5,720)		(362)		(471)		—		(6,553)
Income (loss) before income taxes		(142,464)		(395,431)		359,922		122,703		(215,913)		(271,183)
Income tax benefit (expense)		2,056		258,588		(121,676)		(37,123)		—		101,845
Consolidated net income (loss)		(140,408)		(136,843)		238,246		85,580		(215,913)		(169,338)
Less amount attributable to noncontrolling interest		—		—		9,007		6,666		—		15,673
Net income (loss) attributable to the Company	$	(140,408)	$	(136,843)	$	229,239	$	78,914	$	(215,913)	$	(185,011)
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments		—		—		52		75,820		—		75,872
Unrealized gain on securities and derivatives:
Unrealized holding gain on marketable securities		—		—		13,489		520		—		14,009
Unrealized holding gain on cash flow derivatives		—		11,943		—		—		—		11,943
Reclassification adjustment		—		—		—		148		—		148
Equity in subsidiary comprehensive income (loss)		88,839		76,896		70,354		—		(236,089)		—
Comprehensive income (loss)		(51,569)		(48,004)		313,134		155,402		(452,002)		(83,039)
Less amount attributable to noncontrolling interest		—		—		6,999		6,134		—		13,133
Comprehensive income (loss) attributable to the Company	$	(51,569)	$	(48,004)	$	306,135	$	149,268	$	(452,002)	$	(96,172)

(In thousands)	Six Months Ended June 30, 2010
	Parent Company		Subsidiary Issuer		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations		Consolidated
Revenue	$	—	$	—	$	1,433,188	$	1,323,007	$	(2,408)	$	2,753,787
Operating expenses:
Direct operating expenses		—		—		431,615		767,209		(561)		1,198,263
Selling, general and administrative expenses		—		—		477,155		250,625		(1,847)		725,933
Corporate expenses		6,433		8		77,635		44,529		—		128,605
Depreciation and amortization		—		—		157,749		207,763		—		365,512
Other operating income – net		—		—		4,298		2,738		—		7,036
Operating income (loss)		(6,433)		(8)		293,332		55,619		—		342,510
Interest expense – net		9		707,162		4,251		27,599		32,353		771,374
Equity in earnings (loss) of nonconsolidated affiliates		(285,595)		157,020		(50,748)		5,630		179,311		5,618
Other income (expense) – net		—		—		(561)		(2,480)		60,289		57,248
Income (loss) before income taxes		(292,037)		(550,150)		237,772		31,170		207,247		(365,998)
Income tax benefit (expense)		2,363		264,555		(133,884)		(23,870)		—		109,164
Consolidated net income (loss)		(289,674)		(285,595)		103,888		7,300		207,247		(256,834)
Less amount attributable to noncontrolling interest		—		—		(722)		5,626		—		4,904
Net income (loss) attributable to the Company	$	(289,674)	$	(285,595)	$	104,610	$	1,674	$	207,247	$	(261,738)
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments		—		—		(243)		(113,429)		—		(113,672)
Unrealized gain (loss) on securities and derivatives:
Unrealized holding gain (loss) on marketable securities		—		—		8,481		(4,948)		—		3,533
Unrealized holding loss on cash flow derivatives		—		(8,146)		—		—		—		(8,146)
Reclassification adjustment		—		—		—		(1,141)		—		(1,141)
Equity in subsidiary comprehensive income (loss)		(103,186)		(95,040)		(115,784)		—		314,010		—
Comprehensive income (loss)		(392,860)		(388,781)		(2,936)		(117,844)		521,257		(381,164)
Less amount attributable to noncontrolling interest		—		—		(12,507)		(3,733)		—		(16,240)
Comprehensive income (loss) attributable to the Company	$	(392,860)	$	(388,781)	$	9,571	$	(114,111)	$	521,257	$	(364,924)

	Six Months Ended June 30, 2011
(In thousands)	Parent Company		Subsidiary Issuer		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations		Consolidated
Cash flows from operating activities:
Consolidated net income (loss)	$	(140,408)	$	(136,843)	$	238,246	$	85,580	$	(215,913)	$	(169,338)
Reconciling items:
Depreciation and amortization		—		—		162,114		211,238		—		373,352
Deferred taxes		(664)		(126,983)		56,461		(19,709)		—		(90,895)
Gain on disposal of operating assets		—		—		(10,841)		(9,102)		—		(19,943)
Loss on extinguishment of debt		—		5,721		—		—		—		5,721
Provision for doubtful accounts		—		—		4,898		3,402		—		8,300
Share-based compensation		—		—		2,603		5,426		—		8,029
Equity in (earnings) loss of nonconsolidated affiliates		136,843		(287,470)		(20,693)		(8,236)		171,310		(8,246)
Amortization of deferred financing charges and note discounts, net		—		118,079		(2,915)		(59,534)		44,603		100,233
Other reconciling items – net		—		—		449		13,549		—		13,998
Changes in operating assets and liabilities:
Decrease in accounts receivable		—		—		(3,965)		(14,297)		—		(18,262)
Increase in deferred income		—		—		12,937		48,490		—		61,427
Decrease in accrued expenses		—		—		(81,509)		(26,574)		—		(108,083)
Decrease in accounts payable and other liabilities		—		(5,214)		(61,264)		(7,611)		—		(74,089)
Increase in accrued interest		—		17,916		—		677		1,647		20,240
Changes in other operating assets and liabilities, net of effects of acquisitions and dispositions		325		13,262		(22,759)		(28,125)		(1,647)		(38,944)
Net cash provided by (used for) operating activities		(3,904)		(401,532)		273,762		195,174		—		63,500
Cash flows from investing activities:
Proceeds from maturity of Clear Channel notes		—		—		—		167,022		(167,022)		—
Purchases of property, plant and equipment		—		—		(33,496)		(106,956)		—		(140,452)
Purchases of businesses		—		—		(211)		(32,970)		—		(33,181)
Acquisition of operating assets		—		—		(947)		(3,834)		—		(4,781)
Proceeds from disposal of assets		—		—		37,938		10,178		—		48,116
Change in other – net		—		—		62		794		—		856
Net cash provided by (used for) investing activities		—		—		3,346		34,234		(167,022)		(129,442)
Cash flows from financing activities:
Draws on credit facilities		—		10,000		—		—		—		10,000
Payments on credit facilities		—		(956,181)		—		(1,893)		—		(958,074)
Intercompany funding		4,211		1,097,711		(1,055,284)		(46,638)		—		—
Proceeds from long-term debt		—		1,724,650		1,604		—		—		1,726,254
Payments on long-term debt		—		(1,428,051)		(573)		(100,894)		167,022		(1,362,496)
Deferred financing charges		—		(46,597)		—		—		—		(46,597)
Change in other – net		(307)		—		250		(4,858)		—		(4,915)
Net cash provided by (used for) financing activities		3,904		401,532		(1,054,003)		(154,283)		167,022		(635,828)
Net increase (decrease) in cash and cash equivalents		—		—		(776,895)		75,125		—		(701,770)
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	$	443,467	$	775,688	$	—	$	1,219,156

(In thousands)	Six Months Ended June 30, 2010
	Parent Company		Subsidiary Issuer		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations		Consolidated
Cash flows from operating activities:
Consolidated net income (loss)	$	(289,674)	$	(285,595)	$	103,888	$	7,300	$	207,247	$	(256,834)
Reconciling items:
Depreciation and amortization		—		—		157,749		207,763		—		365,512
Deferred taxes		504		(6,095)		(101,698)		(28,519)		—		(135,808)
Gain on disposal of operating assets		—		—		(4,298)		(2,738)		—		(7,036)
Gain on extinguishment of debt		—		—		—		—		(60,289)		(60,289)
Provision for doubtful accounts		—		—		5,696		2,095		—		7,791
Share-based compensation		—		—		10,943		5,681		—		16,624
Equity in (earnings) loss of nonconsolidated affiliates		285,595		(157,020)		50,748		(5,630)		(179,311)		(5,618)
Amortization of deferred financing charges and note discounts, net		—		123,156		2,527		(52,440)		32,353		105,596
Other reconciling items – net		—		—		(447)		4,204		—		3,757
Changes in operating assets and liabilities:
Increase in accounts receivable		—		—		(41,427)		(25,567)		—		(66,994)
Increase in deferred income		—		—		7,438		34,882		—		42,320
Increase (decrease) in accrued expenses		—		(25)		16,229		9,799		—		26,003
Increase (decrease) in accounts payable and other liabilities				1,366		(4,368)		(4,835)		—		(7,837)
Increase (decrease) in accrued interest		—		64,254		(19,703)		637		—		45,188
Changes in other operating assets and liabilities, net of effects of acquisitions and dispositions		3,279		275,454		(303,801)		5,485		—		(19,583)
Net cash provided by (used for) operating activities		(296)		15,495		(120,524)		158,117		—		52,792
Cash flows from investing activities:
Proceeds from maturity of Clear Channel notes		—		—		—		10,025		(10,025)		—
Investment in Clear Channel notes		—		—		(125,000)		—		125,000		—
Purchases of property, plant and equipment		—		—		(16,619)		(86,790)		—		(103,409)
Purchases of businesses and other operating assets		—		—		(10,389)		(425)		—		(10,814)
Proceeds from disposal of assets		—		—		7,197		3,910		—		11,107
Dividends from subsidiaries		—		—		35,450		—		(35,450)		—
Change in other – net		—		—		50		(2,487)		—		(2,437)
Net cash provided by (used for) investing activities		—		—		(109,311)		(75,767)		79,525		(105,553)
Cash flows from financing activities:
Draws on credit facilities		—		148,000		—		304		—		148,304
Payments on credit facilities		—		(61,000)		—		(43,541)		—		(104,541)
Intercompany funding		1,028		147,505		(186,791)		38,258		—		—
Proceeds from long-term debt		—		—		—		6,844		—		6,844
Payments on long-term debt		—		(250,000)		(3)		(7,829)		10,025		(247,807)
Repurchases of long-term debt		—		—		—		—		(125,000)		(125,000)
Dividends paid		—		—		—		(35,450)		35,450		—
Change in other – net		(732)		—		—		(3,571)		—		(4,303)
Net cash provided by (used for) financing activities		296		(15,495)		(186,794)		(44,985)		(79,525)		(326,503)
Net increase (decrease) in cash and cash equivalents		—		—		(416,629)		37,365		—		(379,264)
Cash and cash equivalents at beginning of period		—		—		1,258,993		625,001		—		1,883,994
Cash and cash equivalents at end of period	$	—	$	—	$	842,364	$	662,366	$	—	$	1,504,730