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 March 31, 2012
	Parent Company		Subsidiary Issuer		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations		Consolidated
Cash and cash equivalents	$	—	$	—	$	545,819	$	780,242	$	—	$	1,326,061
Accounts receivable, net of allowance		—		—		599,344		655,594		—		1,254,938
Intercompany receivables (1)		30,073		4,656,017		65,733		—		(4,751,823)		—
Other current assets		4,084		40,162		110,706		242,610		(11,216)		386,346

Total Current Assets		34,157		4,696,179		1,321,602		1,678,446		(4,763,039)		2,967,345
Property, plant and equipment, net		—		—		806,497		2,246,511		—		3,053,008
Definite-lived intangibles, net		—		—		1,332,759		615,293		—		1,948,052
Indefinite-lived intangibles – licenses		—		—		2,410,317		—		—		2,410,317
Indefinite-lived intangibles – permits		—		—		—		1,107,110		—		1,107,110
Goodwill		—		—		3,325,883		870,127		—		4,196,010
Intercompany notes receivable		—		962,000		—		—		(962,000)		—
Long-term intercompany receivable		—		—		—		702,831		(702,831)		—
Investment in subsidiaries		(8,414,667)		3,434,312		676,182		—		4,304,173		—
Other assets		—		147,548		274,509		960,202		(574,758)		807,501

Total Assets	$	(8,380,510)	$	9,240,039	$	10,147,749	$	8,180,520	$	(2,698,455)	$	16,489,343


Accounts payable and accrued expenses	$	(396)	$	(58,719)	$	267,550	$	608,966	$	—	$	817,401
Accrued interest		—		85,461		5		3,136		(11,216)		77,386
Intercompany payable (1)		—		—		4,686,090		65,733		(4,751,823)		—
Current portion of long-term debt		—		287,689		548		23,489		—		311,726
Deferred income		—		—		65,207		145,532		—		210,739

Total Current Liabilities		(396)		314,431		5,019,400		846,856		(4,763,039)		1,417,252
Long-term debt		—		16,508,378		3,301		4,721,584		(852,884)		20,380,379
Long-term intercompany payable		—		702,831		—		—		(702,831)		—
Intercompany long-term debt		—		—		962,000		—		(962,000)		—
Deferred income taxes		(14,437)		(45,121)		1,071,050		841,703		1,484		1,854,679
Other long-term liabilities		—		174,187		174,509		290,893		—		639,589
Total member's interest (deficit)		(8,365,677)		(8,414,667)		2,917,489		1,479,484		4,580,815		(7,802,556)

Total Liabilities and Member's Interest (Deficit)	$	(8,380,510)	$	9,240,039	$	10,147,749	$	8,180,520	$	(2,698,455)	$	16,489,343

(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)	As of December 31, 2011
	Parent Company		Subsidiary Issuer		Guarantor Subsidiaries		Non-Guarantor 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 (1)		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 (1)		—		—		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 Interest (Deficit)	$	(8,310,466)	$	11,234,219	$	12,304,888	$	8,155,556	$	(6,842,158)	$	16,542,039

(1)


(In thousands)	Three Months Ended March 31, 2012
	Parent Company		Subsidiary Issuer		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations		Consolidated

Revenue	$	—	$	—	$	707,414	$	658,196	$	(4,887)	$	1,360,723
Operating expenses:
Direct operating expenses		—		—		219,829		396,534		(1,929)		614,434
Selling, general and administrative expenses		—		—		269,663		156,923		(2,958)		423,628
Corporate expenses		2,700		—		42,188		24,310		—		69,198
Depreciation and amortization		—		—		82,684		92,682		—		175,366
Other operating income (expense) – net		—		—		(879)		4,003		—		3,124

Operating income (loss)		(2,700)		—		92,171		(8,250)		—		81,221
Interest expense – net		—		340,139		5,966		9,323		18,588		374,016
Equity in earnings (loss) of nonconsolidated affiliates		(113,877)		92,126		(42,231)		3,828		63,709		3,555
Other income (expense) – net		—		(15,167)		(14)		8,360		(9,452)		(16,273)

Income (loss) before income taxes		(116,577)		(263,180)		43,960		(5,385)		35,669		(305,513)
Income tax benefit (expense)		988		149,303		12,491		(5,384)		—		157,398

Consolidated net income (loss)		(115,589)		(113,877)		56,451		(10,769)		35,669		(148,115)
Less amount attributable to noncontrolling interest		—		—		(3,163)		(1,323)		—		(4,486)

Net income (loss) attributable to the Company	$	(115,589)	$	(113,877)	$	59,614	$	(9,446)	$	35,669	$	(143,629)
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments		—		—		(160)		37,249		—		37,089
Unrealized gain (loss) on securities and derivatives:
Unrealized holding gain (loss) on marketable securities		—		—		11,759		(4,159)		4,448		12,048
Unrealized holding gain on cash flow derivatives		—		8,579		—		—		—		8,579
Reclassification adjustment		—		—		1		63		(1)		63
Equity in subsidiary comprehensive income (loss)		49,677		41,098		33,342		—		(124,117)		—

Other comprehensive income (loss)		49,677		49,677		44,942		33,153		(119,670)		57,779

Comprehensive income (loss)		(65,912)		(64,200)		104,556		23,707		(84,001)		(85,850)
Less amount attributable to noncontrolling interest		—		—		3,844		(189)		—		3,655

Comprehensive income (loss) attributable to the Company	$	(65,912)	$	(64,200)	$	100,712	$	23,896	$	(84,001)	$	(89,505)


(In thousands)	Three Months Ended March 31, 2011
	Parent Company		Subsidiary Issuer		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations		Consolidated
Revenue	$	—	$	—	$	668,528	$	657,075	$	(4,777)	$	1,320,826
Operating expenses:
Direct operating expenses		—		—		195,459		392,444		(3,834)		584,069
Selling, general and administrative expenses		—		—		243,447		130,206		(943)		372,710
Corporate expenses		2,659		—		27,705		21,983		—		52,347
Depreciation and amortization		—		—		80,808		102,903		—		183,711
Other operating income – net		—		—		11,912		4,802		—		16,714

Operating income (loss)		(2,659)		—		133,021		14,341		—		144,703
Interest expense – net		7		344,939		(1,277)		(50)		26,047		369,666
Equity in earnings (loss) of nonconsolidated affiliates		(104,094)		111,770		(6,946)		2,960		(715)		2,975
Other income (expense) – net		—		(5,721)		(206)		3,891		—		(2,036)

Income (loss) before income taxes		(106,760)		(238,890)		127,146		21,242		(26,762)		(224,024)
Income tax benefit (expense)		975		134,796		(45,153)		2,043		—		92,661

Consolidated net income (loss)		(105,785)		(104,094)		81,993		23,285		(26,762)		(131,363)
Less amount attributable to noncontrolling interest		—		—		1,320		(851)		—		469

Net income (loss) attributable to the Company	$	(105,785)	$	(104,094)	$	80,673	$	24,136	$	(26,762)	$	(131,832)
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments		—		—		(279)		39,586		—		39,307
Unrealized gain on securities and derivatives:
Unrealized holding gain on marketable securities		—		—		483		2,469		—		2,952
Unrealized holding gain on cash flow derivatives		—		13,342		—		—		—		13,342
Reclassification adjustment		—		—		—		89		—		89
Equity in subsidiary comprehensive income (loss)		48,992		35,650		39,842		—		(124,484)		—

Other comprehensive income (loss)		48,992		48,992		40,046		42,144		(124,484)		55,690

Comprehensive income (loss)		(56,793)		(55,102)		120,719		66,280		(151,246)		(76,142)
Less amount attributable to noncontrolling interest		—		—		4,396		2,302		—		6,698

Comprehensive income (loss) attributable to the Company	$	(56,793)	$	(55,102)	$	116,323	$	63,978	$	(151,246)	$	(82,840)


(In thousands)	Three Months Ended March 31, 2012
	Parent Company		Subsidiary Issuer		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations		Consolidated
Cash flows from operating activities:
Consolidated net income (loss)	$	(115,589)	$	(113,877)	$	56,451	$	(10,769)	$	35,669	$	(148,115)

Reconciling items:
Depreciation and amortization		—		—		82,684		92,682		—		175,366
Deferred taxes		(592)		(90,584)		9,257		(16,519)		—		(98,438)
(Gain) loss on sale of operating assets		—		—		879		(4,003)		—		(3,124)
Loss on extinguishment of debt		—		15,167		—		—		—		15,167
Provision for doubtful accounts		—		—		2,680		2,024		—		4,704
Share-based compensation		—		—		3,695		3,202		—		6,897
Equity in (earnings) loss of nonconsolidated affiliates		113,877		(92,126)		42,231		(3,826)		(63,711)		(3,555)
Amortization of deferred financing charges and note discounts, net		—		54,199		(1,740)		(26,016)		18,588		45,031
Other reconciling items – net		—		—		351		8,825		—		9,176
Changes in operating assets and liabilities:
Decrease in accounts receivable		—		—		92,501		59,767		—		152,268
Increase in deferred income		—		—		13,267		50,728		—		63,995
Increase (decrease) in accrued expenses		245		(15,555)		(1,493)		(28,085)		—		(44,888)
Decrease in accounts payable and other liabilities		—		—		(67,409)		(6,348)		—		(73,757)
Increase (decrease) in accrued interest		—		(103,682)		5,397		846		14,451		(82,988)
Changes in other operating assets and liabilities, net of effects of acquisitions and dispositions		(1,831)		—		(7,556)		1,903		(14,451)		(21,935)

Net cash provided by (used for) operating activities		(3,890)		(346,458)		231,195		124,411		(9,454)		(4,196)
Cash flows from investing activities:
Proceeds from maturity of Clear Channel senior notes		—		—		—		50,149		(50,149)		—
Purchases of property, plant and equipment		—		—		(16,543)		(56,104)		—		(72,647)
Purchases of other operating assets		—		—		(1,544)		(1,367)		—		(2,911)
Proceeds from disposal of assets		—		—		1,698		6,094		—		7,792
Dividends from subsidiaries		—		1,925,661		1,916,209		—		(3,841,870)		—
Change in other – net		—		—		(1,622)		(1,257)		—		(2,879)

Net cash provided by (used for) investing activities		—		1,925,661		1,898,198		(2,485)		(3,892,019)		(70,645)
Cash flows from financing activities:
Draws on credit facilities		—		602,500		—		992		—		603,492
Payments on credit facilities		—		(1,918,051)		—		—		—		(1,918,051)
Proceeds from long-term debt		—		—		—		2,200,000		—		2,200,000
Payments on long-term debt		—		(480,342)		(374)		(2,893)		50,149		(433,460)
Intercompany funding		3,890		216,689		(128,563)		(92,016)		—		—
Dividends paid		—		—		(1,916,209)		(2,179,849)		3,851,324		(244,734)
Change in other – net		—		—		—		(35,027)		—		(35,027)

Net cash provided by (used for) financing activities		3,890		(1,579,204)		(2,045,146)		(108,793)		3,901,473		172,220

Net increase (decrease) in cash and cash equivalents		—		(1)		84,247		13,133		—		97,379

Cash and cash equivalents at beginning of period		—		1		461,572		767,109		—		1,228,682


Cash and cash equivalents at end of period	$	—	$	—	$	545,819	$	780,242	$	—	$	1,326,061


(In thousands)	Three Months Ended March 31, 2011
	Parent Company		Subsidiary Issuer		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations		Consolidated
Cash flows from operating activities:
Consolidated net income (loss)	$	(105,785)	$	(104,094)	$	81,993	$	23,285	$	(26,762)	$	(131,363)

Reconciling items:
Depreciation and amortization		—		—		80,808		102,903		—		183,711
Deferred taxes		(449)		(78,315)		38,082		(19,984)		—		(60,666)
Gain on sale of operating assets		—		—		(11,912)		(4,802)		—		(16,714)
Loss on extinguishment of debt		—		5,721		—		—		—		5,721
Provision for doubtful accounts		—		—		2,368		2,349		—		4,717
Share-based compensation		—		—		(765)		3,056		—		2,291
Equity in (earnings) loss of nonconsolidated affiliates		104,094		(111,770)		6,946		(2,960)		715		(2,975)
Amortization of deferred financing charges and note discounts, net		—		66,979		(1,421)		(34,747)		26,047		56,858
Other reconciling items – net		—		—		(28)		4,972		—		4,944
Changes in operating assets and liabilities:
Decrease in accounts receivable		—		—		87,632		39,837		—		127,469
Increase in deferred income		—		—		10,643		48,588		—		59,231
Decrease in accrued expenses		414		31,096		(113,865)		(69,715)		—		(152,070)
Decrease in accounts payable and other liabilities		—		(5,743)		(54,694)		(4,897)		—		(65,334)
Increase (decrease) in accrued interest		—		(64,859)		—		696		18,480		(45,683)
Changes in other operating assets and liabilities, net of effects of acquisitions and dispositions		(2,177)		(38,731)		(2,757)		(33,301)		(18,480)		(95,446)

Net cash provided by (used for) operating activities		(3,903)		(299,716)		123,030		55,280		—		(125,309)
Cash flows from investing activities:
Proceeds from maturity of Clear Channel senior notes		—		—		—		57,263		(57,263)		—
Purchases of property, plant and equipment		—		—		(17,588)		(46,381)		—		(63,969)
Purchases of other operating assets		—		—		(537)		(10,689)		—		(11,226)
Proceeds from disposal of assets		—		—		37,563		4,765		—		42,328
Change in other – net		—		—		2		97		—		99

Net cash provided by (used for) investing activities		—		—		19,440		5,055		(57,263)		(32,768)
Cash flows from financing activities:
Draws on credit facilities		—		10,000		—		—		—		10,000
Payments on credit facilities		—		(135,449)		—		(1,851)		—		(137,300)
Proceeds from long-term debt		—		1,000,000		1,604		—		—		1,001,604
Payments on long-term debt		—		(1,178,051)		(196)		(2,535)		57,263		(1,123,519)
Intercompany funding		3,903		603,216		(600,569)		(6,550)		—		—
Change in other – net		—		—		—		(2,830)		—		(2,830)

Net cash provided by (used for) financing activities		3,903		299,716		(599,161)		(13,766)		57,263		(252,045)

Net increase (decrease) in cash and cash equivalents		—		—		(456,691)		46,569		—		(410,122)

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	$	763,671	$	747,132	$	—	$	1,510,804