Guarantor Subsidiaries

9 Months Ended

Sep. 30, 2011

Guarantor Subsidiaries

Guarantor Subsidiaries

NOTE 11 – 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)	September 30, 2011
	Parent Company		Subsidiary Issuer		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations		Consolidated
Cash and cash equivalents	$	—	$	1	$	305,135	$	860,245	$	—	$	1,165,381
Accounts receivable, net		—		—		679,306		702,963		—		1,382,269
Intercompany receivables (1)		25,863		5,574,239		94,987		—		(5,695,089)		—
Other current assets		4,770		45,885		106,190		270,034		(50,937)		375,942
Total Current Assets		30,633		5,620,125		1,185,618		1,833,242		(5,746,026)		2,923,592
Property, plant and equipment, net		—		—		824,920		2,212,295		—		3,037,215
Definite-lived intangibles, net		—		—		1,442,642		645,420		—		2,088,062
Indefinite-lived intangibles		—		—		2,411,602		1,113,562		—		3,525,164
Goodwill		—		—		3,321,329		863,244		—		4,184,573
Intercompany notes receivable		—		212,000		—		—		(212,000)		—
Long-term intercompany receivable		—		—		—		541,356		(541,356)		—
Investment in subsidiaries		(8,336,138)		5,038,383		2,820,667		—		477,088		—
Other assets		—		179,247		224,138		873,699		(526,744)		750,340
Total Assets	$	(8,305,505)	$	11,049,755	$	12,230,916	$	8,082,818	$	(6,549,038)	$	16,508,946
Accounts payable and accrued expenses	$	(773)	$	(70,410)	$	308,444	$	606,197	$	—	$	843,458
Accrued interest		—		85,224		—		1,856		(11,315)		75,765
Intercompany payable (1)		—		—		5,600,102		94,987		(5,695,089)		—
Current portion of long-term debt		—		236,159		1,313		47,606		—		285,078
Deferred income		—		—		57,901		130,118		—		188,019
Total Current Liabilities		(773)		250,973		5,967,760		880,764		(5,706,404)		1,392,320
Long-term debt		—		18,271,771		3,981		2,501,229		(882,258)		19,894,723
Long-term intercompany payable		—		541,356		—		—		(541,356)		—
Intercompany long-term debt		—		—		212,000		—		(212,000)		—
Deferred income taxes		(13,509)		99,879		1,026,973		844,209		473		1,958,025
Other long-term liabilities		—		221,914		220,325		277,666		—		719,905
Total member's interest (deficit)		(8,291,223)		(8,336,138)		4,799,877		3,578,950		792,507		(7,456,027)
Total Liabilities and Member's Interest (Deficit)	$	(8,305,505)	$	11,049,755	$	12,230,916	$	8,082,818	$	(6,549,038)	$	16,508,946

(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)	$	(87,577)	$	400,449	$	644,936	$	—	$	956,867
Accrued interest		—		151,465		—		1,157		(31,423)		121,199
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 September 30, 2011
	Parent Company		Subsidiary Issuer		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations		Consolidated
Revenue	$	—	$	—	$	832,949	$	755,472	$	(5,069)	$	1,583,352
Operating expenses:
Direct operating expenses		—		—		227,360		412,677		(3,974)		636,063
Selling, general and administrative expenses		—		—		288,116		133,239		(1,095)		420,260
Corporate expenses		2,599		—		29,313		22,335		—		54,247
Depreciation and amortization		—		—		82,266		115,266		—		197,532
Other operating income (expense) – 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 gain 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)	Three Months Ended September 30, 2010
	Parent Company		Subsidiary Issuer		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations		Consolidated
Revenue	$	—	$	—	$	776,705	$	701,815	$	(1,173)	$	1,477,347
Operating expenses:
Direct operating expenses		—		—		197,340		382,066		(308)		579,098
Selling, general and administrative expenses		—		—		264,364		119,498		(865)		382,997
Corporate expenses		2,984		9		51,328		26,197		—		80,518
Depreciation and amortization		—		—		79,865		104,214		—		184,079
Other operating expense – net		—		—		(1,887)		(27,672)		—		(29,559)
Operating income (loss)		(2,984)		(9)		181,921		42,168		—		221,096
Interest expense – net		4		361,665		(2,205)		8,103		21,630		389,197
Equity in earnings (loss) of nonconsolidated affiliates		(131,162)		95,200		(35,633)		3,021		71,568		2,994
Other expense – net		—		—		(1,574)		(4,126)		—		(5,700)
Income (loss) before income taxes		(134,150)		(266,474)		146,919		32,960		49,938		(170,807)
Income tax benefit (expense)		1,095		135,312		(80,043)		(35,949)		—		20,415
Consolidated net income (loss)		(133,055)		(131,162)		66,876		(2,989)		49,938		(150,392)
Less amount attributable to noncontrolling interest		—		—		1,281		3,012		—		4,293
Net income (loss) attributable to the Company	$	(133,055)	$	(131,162)	$	65,595	$	(6,001)	$	49,938	$	(154,685)
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments		—		—		(232)		126,780		—		126,548
Unrealized gain (loss) on securities and derivatives:
Unrealized holding gain (loss) on marketable securities		—		—		6,079		(395)		—		5,684
Unrealized holding gain on cash flow derivatives		—		529		—		—		—		529
Reclassification adjustment		—		—		—		2,565		—		2,565
Equity in subsidiary comprehensive income (loss)		116,562		116,033		121,908		—		(354,503)		—
Comprehensive income (loss)		(16,493)		(14,600)		193,350		122,949		(304,565)		(19,359)
Less amount attributable to noncontrolling interest		—		—		11,723		7,041		—		18,764
Comprehensive income (loss) attributable to the Company	$	(16,493)	$	(14,600)	$	181,627	$	115,908	$	(304,565)	$	(38,123)

(In thousands)	Nine Months Ended September 30, 2011
	Parent Company		Subsidiary Issuer		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations		Consolidated
Revenue	$	—	$	—	$	2,285,970	$	2,237,046	$	(14,452)	$	4,508,564
Operating expenses:
Direct operating expenses		—		—		609,756		1,235,725		(4,896)		1,840,585
Selling, general and administrative expenses		—		—		812,348		420,176		(9,556)		1,222,968
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 derivatives:
Unrealized holding gain (loss) on marketable securities		—		—		(2,830)		(5,251)		792		(7,289)
Unrealized holding gain 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, 2010
	Parent Company		Subsidiary Issuer		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations		Consolidated
Revenue	$	—	$	—	$	2,209,893	$	2,024,822	$	(3,581)	$	4,231,134
Operating expenses:
Direct operating expenses		—		—		590,822		1,149,275		(869)		1,739,228
Selling, general and administrative expenses		—		—		779,652		370,123		(2,712)		1,147,063
Corporate expenses		9,417		17		128,963		70,726		—		209,123
Depreciation and amortization		—		—		237,614		311,977		—		549,591
Other operating income (expense) –net		—		—		2,411		(24,934)		—		(22,523)
Operating income (loss)		(9,417)		(17)		475,253		97,787		—		563,606
Interest expense – net		13		1,068,827		2,046		35,702		53,983		1,160,571
Equity in earnings (loss) of nonconsolidated affiliates		(416,757)		252,220		(86,381)		8,651		250,879		8,612
Other income (expense) – net		—		—		(2,135)		(6,606)		60,289		51,548
Income (loss) before income taxes		(426,187)		(816,624)		384,691		64,130		257,185		(536,805)
Income tax benefit (expense)		3,458		399,867		(213,927)		(59,819)		—		129,579
Consolidated net income (loss)		(422,729)		(416,757)		170,764		4,311		257,185		(407,226)
Less amount attributable to noncontrolling interest		—		—		559		8,638		—		9,197
Net income (loss) attributable to the Company	$	(422,729)	$	(416,757)	$	170,205	$	(4,327)	$	257,185	$	(416,423)
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments		—		—		(475)		13,351		—		12,876
Unrealized gain (loss) on securities and derivatives:
Unrealized holding gain (loss) on marketable securities		—		—		14,560		(5,343)		—		9,217
Unrealized holding loss on cash flow derivatives		—		(7,617)		—		—		—		(7,617)
Reclassification adjustment		—		—		—		1,424		—		1,424
Equity in subsidiary comprehensive income (loss)		13,376		20,993		6,124		—		(40,493)		—
Comprehensive income (loss)		(409,353)		(403,381)		190,414		5,105		216,692		(400,523)
Less amount attributable to noncontrolling interest		—		—		(784)		3,308		—		2,524
Comprehensive income (loss) attributable to the Company	$	(409,353)	$	(403,381)	$	191,198	$	1,797	$	216,692	$	(403,047)

(In thousands)	Nine Months Ended September 30, 2011
	Parent Company		Subsidiary Issuer		Guarantor Subsidiaries		Non-Guarantor 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)
(Gain) 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 nonconsolidated affiliates		199,417		(440,734)		(30,020)		(13,478)		271,359		(13,456)
Amortization of deferred financing charges, bond premiums and accretion of 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:
Decrease in accounts receivable		—		—		1,863		14,728		—		16,591
Increase in deferred income		—		—		7,130		27,048		—		34,178
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 (decrease) 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)
Repurchases 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

(In thousands)	Nine Months Ended September 30, 2010
	Parent Company		Subsidiary Issuer		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations		Consolidated
Cash flows from operating activities:
Consolidated net income (loss)	$	(422,729)	$	(416,757)	$	170,764	$	4,311	$	257,185	$	(407,226)
Reconciling items:
Depreciation and amortization		—		—		237,614		311,977		—		549,591
Deferred taxes		(1,336)		(205,868)		49,103		(12,785)		—		(170,886)
(Gain) loss on disposal of operating assets		—		—		(2,411)		24,934		—		22,523
Gain on extinguishment of debt		—		—		—		—		(60,289)		(60,289)
Provision for doubtful accounts		—		—		10,066		4,814		—		14,880
Share-based compensation		—		—		16,400		8,567		—		24,967
Equity in (earnings) loss of nonconsolidated affiliates		416,757		(252,220)		86,381		(8,651)		(250,879)		(8,612)
Amortization of deferred financing charges, bond premiums and accretion of note discounts, net		—		187,008		3,162		(84,113)		53,983		160,040
Other reconciling items – net		—		—		(9,005)		18,727		—		9,722
Changes in operating assets and liabilities:
Increase in accounts receivable		—		—		(54,589)		(20,121)		—		(74,710)
Increase (decrease) in deferred income		4,187		382,024		(304,098)		50,196		—		132,309
Decrease in Federal income taxes receivable		—		—		17,318		29,926		—		47,244
Increase (decrease) in accrued expenses				(25)		23,405		28,747				52,127
Increase (decrease) in accounts payable and other liabilities		—		(2,520)		13,750		(6,535)		—		4,695
Increase (decrease) in accrued interest		—		60,064		(25,916)		353		—		34,501
Changes in other operating assets and liabilities, net of effects of acquisitions and dispositions		(1,035)		75,716		(103,504)		14,489		—		(14,334)
Net cash provided by (used for) operating activities		(4,156)		(172,578)		128,440		364,836		—		316,542
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		—		—		(29,988)		(139,417)		—		(169,405)
Acquisition of operating assets, net of cash acquired		—		—		(11,028)		(715)		—		(11,743)
Proceeds from disposal of assets		—		—		14,084		6,466		—		20,550
Dividends from subsidiaries		—		—		35,450		—		(35,450)		—
Change in other – net		—		—		8,242		4,517		(17,500)		(4,741)
Net cash provided by (used for) investing activities		—		—		(108,240)		(119,124)		62,025		(165,339)
Cash flows from financing activities:
Draws on credit facilities		—		156,500		—		3,916		—		160,416
Payments on credit facilities		—		(98,000)		—		(42,254)		—		(140,254)
Intercompany funding		6,521		358,965		(317,133)		(48,353)		—		—
Proceeds from delayed draw term loan facility		—		138,795		—		—		—		138,795
Proceeds from long-term debt		—		—		—		6,844		—		6,844
Payments on long-term debt		—		(383,681)		(4)		(12,425)		27,525		(368,585)
Repurchases of long-term debt		—		—		—		—		(125,000)		(125,000)
Dividends paid		—		—		—		(35,450)		35,450		—
Change in other – net		(2,365)		(1)		—		(4,213)		—		(6,579)
Net cash provided by (used for) financing activities		4,156		172,578		(317,137)		(131,935)		(62,025)		(334,363)
Net increase (decrease) in cash and cash equivalents		—		—		(296,937)		113,777		—		(183,160)
Cash and cash equivalents at beginning of period		—		—		1,258,993		625,001		—		1,883,994
Cash and cash equivalents at end of period	$	—	$	—	$	962,056	$	738,778	$	—	$	1,700,834