[X] | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2016 |
[ ] | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM _________ TO __________ |
Delaware | 26-0241222 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
200 East Basse Road, Suite 100 San Antonio, Texas | 78209 | |
(Address of principal executive offices) | (Zip Code) |
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [X] No [ ] | ||||||
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes [X] No [ ] | ||||||
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. | ||||||
Large accelerated filer [ ] Accelerated filer [ ] Non-accelerated filer [X] Smaller reporting company [ ] | ||||||
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes [ ] No [X] | ||||||
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 7, 2016 | |||||
~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ | ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ | |||||
Class A Common Stock, $.001 par value | 31,141,367 | (1) | ||||
Class B Common Stock, $.001 par value | 555,556 | |||||
Class C Common Stock, $.001 par value | 58,967,502 | |||||
(1) Outstanding Class A common stock includes 111,291 shares owned by a subsidiary |
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 data) | September 30, 2016 | December 31, 2015 | |||||
(Unaudited) | |||||||
CURRENT ASSETS | |||||||
Cash and cash equivalents | $ | 542,910 | $ | 772,678 | |||
Accounts receivable, net of allowance of $36,556 in 2016 and $34,889 in 2015 | 1,392,997 | 1,442,038 | |||||
Prepaid expenses | 205,750 | 189,055 | |||||
Assets held for sale | 55,184 | 295,075 | |||||
Other current assets | 79,682 | 79,269 | |||||
Total Current Assets | 2,276,523 | 2,778,115 | |||||
PROPERTY, PLANT AND EQUIPMENT | |||||||
Structures, net | 1,254,395 | 1,391,880 | |||||
Other property, plant and equipment, net | 784,459 | 820,676 | |||||
INTANGIBLE ASSETS AND GOODWILL | |||||||
Indefinite-lived intangibles - licenses | 2,414,041 | 2,413,483 | |||||
Indefinite-lived intangibles - permits | 961,194 | 971,327 | |||||
Other intangibles, net | 798,742 | 953,660 | |||||
Goodwill | 4,108,950 | 4,128,887 | |||||
OTHER ASSETS | |||||||
Other assets | 225,968 | 215,087 | |||||
Total Assets | $ | 12,824,272 | $ | 13,673,115 | |||
CURRENT LIABILITIES | |||||||
Accounts payable | $ | 111,066 | $ | 153,276 | |||
Accrued expenses | 731,793 | 834,416 | |||||
Accrued interest | 152,066 | 279,100 | |||||
Deferred income | 238,763 | 210,924 | |||||
Current portion of long-term debt | 204,591 | 181,512 | |||||
Total Current Liabilities | 1,438,279 | 1,659,228 | |||||
Long-term debt | 20,249,812 | 20,539,099 | |||||
Deferred income taxes | 1,541,335 | 1,554,898 | |||||
Other long-term liabilities | 557,626 | 526,571 | |||||
Commitments and contingent liabilities (Note 4) | |||||||
SHAREHOLDERS’ DEFICIT | |||||||
Noncontrolling interest | 157,026 | 177,615 | |||||
Class A Common Stock, par value $.001 per share, authorized 400,000,000 shares, issued 31,528,762 and 30,295,457 shares in 2016 and 2015, respectively | 31 | 30 | |||||
Class B Common Stock, par value $.001 per share, authorized 150,000,000 shares, issued 555,556 shares in 2016 and 2015 | 1 | 1 | |||||
Class C Common Stock, par value $.001 per share, authorized 100,000,000 shares, issued 58,967,502 shares in 2016 and 2015 | 59 | 59 | |||||
Additional paid-in capital | 2,069,897 | 2,068,949 | |||||
Accumulated deficit | (12,839,371 | ) | (12,437,011 | ) | |||
Accumulated other comprehensive loss | (348,338 | ) | (414,407 | ) | |||
Cost of shares (365,517 in 2016 and 229,824 in 2015) held in treasury | (2,085 | ) | (1,917 | ) | |||
Total Shareholders' Deficit | (10,962,780 | ) | (10,606,681 | ) | |||
Total Liabilities and Shareholders' Deficit | $ | 12,824,272 | $ | 13,673,115 |
(In thousands, except share data) | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Revenue | $ | 1,570,418 | $ | 1,579,514 | $ | 4,552,455 | $ | 4,523,937 | |||||||
Operating expenses: | |||||||||||||||
Direct operating expenses (excludes depreciation and amortization) | 595,576 | 627,150 | 1,781,193 | 1,820,005 | |||||||||||
Selling, general and administrative expenses (excludes depreciation and amortization) | 421,700 | 429,426 | 1,281,849 | 1,270,869 | |||||||||||
Corporate expenses (excludes depreciation and amortization) | 86,779 | 74,775 | 252,308 | 232,492 | |||||||||||
Depreciation and amortization | 158,453 | 166,320 | 476,053 | 505,167 | |||||||||||
Impairment charges | 8,000 | 21,631 | 8,000 | 21,631 | |||||||||||
Other operating income (expense), net | (505 | ) | 6,914 | 219,768 | 98,694 | ||||||||||
Operating income | 299,405 | 267,126 | 972,820 | 772,467 | |||||||||||
Interest expense | 459,852 | 453,921 | 1,389,793 | 1,348,649 | |||||||||||
Loss on investments, net | (13,767 | ) | (5,000 | ) | (13,767 | ) | (4,421 | ) | |||||||
Equity in earnings (loss) of nonconsolidated affiliates | 1,117 | (857 | ) | (926 | ) | (1,216 | ) | ||||||||
Gain (loss) on extinguishment of debt | 157,556 | — | 157,556 | (2,201 | ) | ||||||||||
Other income (expense), net | (7,323 | ) | (17,976 | ) | (47,054 | ) | 18,126 | ||||||||
Loss before income taxes | (22,864 | ) | (210,628 | ) | (321,164 | ) | (565,894 | ) | |||||||
Income tax expense | (5,613 | ) | (2,841 | ) | (42,243 | ) | (81,523 | ) | |||||||
Consolidated net loss | (28,477 | ) | (213,469 | ) | (363,407 | ) | (647,417 | ) | |||||||
Less amount attributable to noncontrolling interest | 6,474 | 8,448 | 38,953 | 13,932 | |||||||||||
Net loss attributable to the Company | $ | (34,951 | ) | $ | (221,917 | ) | $ | (402,360 | ) | $ | (661,349 | ) | |||
Other comprehensive income (loss), net of tax: | |||||||||||||||
Foreign currency translation adjustments | 7,356 | (22,102 | ) | 43,797 | (101,983 | ) | |||||||||
Unrealized holding gain (loss) on marketable securities | (290 | ) | (149 | ) | (635 | ) | 540 | ||||||||
Reclassification adjustments | — | — | 32,823 | — | |||||||||||
Other adjustments to comprehensive income (loss) | 193 | — | (3,551 | ) | (1,154 | ) | |||||||||
Other comprehensive income (loss) | 7,259 | (22,251 | ) | 72,434 | (102,597 | ) | |||||||||
Comprehensive loss | (27,692 | ) | (244,168 | ) | (329,926 | ) | (763,946 | ) | |||||||
Less amount attributable to noncontrolling interest | 1,235 | (8,540 | ) | 6,365 | (19,180 | ) | |||||||||
Comprehensive loss attributable to the Company | $ | (28,927 | ) | $ | (235,628 | ) | $ | (336,291 | ) | $ | (744,766 | ) | |||
Net loss attributable to the Company per common share: | |||||||||||||||
Basic | $ | (0.41 | ) | $ | (2.63 | ) | $ | (4.76 | ) | $ | (7.85 | ) | |||
Weighted average common shares outstanding - Basic | 84,650 | 84,350 | 84,510 | 84,236 | |||||||||||
Diluted | $ | (0.41 | ) | $ | (2.63 | ) | $ | (4.76 | ) | $ | (7.85 | ) | |||
Weighted average common shares outstanding - Diluted | 84,650 | 84,350 | 84,510 | 84,236 |
(In thousands) | Nine Months Ended September 30, | ||||||
2016 | 2015 | ||||||
Cash flows from operating activities: | |||||||
Consolidated net loss | $ | (363,407 | ) | $ | (647,417 | ) | |
Reconciling items: | |||||||
Impairment charges | 8,000 | 21,631 | |||||
Depreciation and amortization | 476,053 | 505,167 | |||||
Deferred taxes | (14,097 | ) | 15,685 | ||||
Provision for doubtful accounts | 20,042 | 20,721 | |||||
Amortization of deferred financing charges and note discounts, net | 51,806 | 47,401 | |||||
Share-based compensation | 10,310 | 7,918 | |||||
Gain on disposal of operating and other assets | (227,765 | ) | (108,090 | ) | |||
Loss on investments | 13,767 | 4,421 | |||||
Equity in loss of nonconsolidated affiliates | 926 | 1,216 | |||||
(Gain) loss on extinguishment of debt | (157,556 | ) | 2,201 | ||||
Other reconciling items, net | 24,407 | (18,716 | ) | ||||
Changes in operating assets and liabilities, net of effects of acquisitions and dispositions: | |||||||
(Increase) decrease in accounts receivable | 16,909 | (93,312 | ) | ||||
Increase in prepaid expenses and other current assets | (17,836 | ) | (51,685 | ) | |||
Decrease in accrued expenses | (60,515 | ) | (43,652 | ) | |||
Decrease in accounts payable | (39,660 | ) | (10,955 | ) | |||
Decrease in accrued interest | (92,947 | ) | (62,149 | ) | |||
Increase in deferred income | 37,550 | 36,579 | |||||
Changes in other operating assets and liabilities | 41,435 | 9,887 | |||||
Net cash used for operating activities | (272,578 | ) | (363,149 | ) | |||
Cash flows from investing activities: | |||||||
Purchases of property, plant and equipment | (201,038 | ) | (192,492 | ) | |||
Proceeds from disposal of assets | 604,044 | 405,284 | |||||
Purchases of other operating assets | (3,464 | ) | (6,358 | ) | |||
Change in other, net | (33,230 | ) | (32,483 | ) | |||
Net cash provided by investing activities | 366,312 | 173,951 | |||||
Cash flows from financing activities: | |||||||
Draws on credit facilities | — | 310,000 | |||||
Payments on credit facilities | (1,728 | ) | (123,304 | ) | |||
Proceeds from long-term debt | 800 | 950,000 | |||||
Payments on long-term debt | (226,640 | ) | (931,372 | ) | |||
Payments to purchase noncontrolling interests | — | (42,798 | ) | ||||
Dividends and other payments to noncontrolling interests | (93,371 | ) | (28,088 | ) | |||
Change in other, net | (1,644 | ) | (7,734 | ) | |||
Net cash provided by (used for) financing activities | (322,583 | ) | 126,704 | ||||
Effect of exchange rate changes on cash | (919 | ) | (11,684 | ) | |||
Net decrease in cash and cash equivalents | (229,768 | ) | (74,178 | ) | |||
Cash and cash equivalents at beginning of period | 772,678 | 457,024 | |||||
Cash and cash equivalents at end of period | $ | 542,910 | $ | 382,846 | |||
SUPPLEMENTAL DISCLOSURES: | |||||||
Cash paid for interest | $ | 1,434,482 | $ | 1,364,055 | |||
Cash paid for taxes | 39,288 | 37,299 |
(In thousands) | September 30, 2016 | December 31, 2015 | |||||
Land, buildings and improvements | $ | 595,511 | $ | 603,234 | |||
Structures | 2,755,221 | 2,824,794 | |||||
Towers, transmitters and studio equipment | 349,260 | 347,877 | |||||
Furniture and other equipment | 618,302 | 591,149 | |||||
Construction in progress | 95,684 | 69,042 | |||||
4,413,978 | 4,436,096 | ||||||
Less: accumulated depreciation | 2,375,124 | 2,223,540 | |||||
Property, plant and equipment, net | $ | 2,038,854 | $ | 2,212,556 |
(In thousands) | September 30, 2016 | December 31, 2015 | |||||||||||||
Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | ||||||||||||
Transit, street furniture and other outdoor contractual rights | $ | 589,703 | $ | (438,087 | ) | $ | 635,772 | $ | (457,060 | ) | |||||
Customer / advertiser relationships | 1,222,518 | (982,173 | ) | 1,222,518 | (891,488 | ) | |||||||||
Talent contracts | 319,384 | (273,946 | ) | 319,384 | (252,526 | ) | |||||||||
Representation contracts | 253,719 | (226,539 | ) | 239,142 | (217,770 | ) | |||||||||
Permanent easements | 157,347 | — | 156,349 | — | |||||||||||
Other | 389,893 | (213,077 | ) | 394,983 | (195,644 | ) | |||||||||
Total | $ | 2,932,564 | $ | (2,133,822 | ) | $ | 2,968,148 | $ | (2,014,488 | ) |
(In thousands) | |||
2017 | $ | 200,177 | |
2018 | 130,076 | ||
2019 | 47,061 | ||
2020 | 39,208 | ||
2021 | 33,805 |
(In thousands) | iHM | Americas Outdoor Advertising | International Outdoor Advertising | Other | Consolidated | ||||||||||||||
Balance as of December 31, 2014 | $ | 3,288,481 | $ | 584,574 | $ | 232,538 | $ | 81,831 | $ | 4,187,424 | |||||||||
Acquisitions | — | — | 10,998 | — | 10,998 | ||||||||||||||
Foreign currency | — | (709 | ) | (19,644 | ) | — | (20,353 | ) | |||||||||||
Assets held for sale | — | (49,182 | ) | — | — | (49,182 | ) | ||||||||||||
Balance as of December 31, 2015 | $ | 3,288,481 | $ | 534,683 | $ | 223,892 | $ | 81,831 | $ | 4,128,887 | |||||||||
Impairment | — | — | (7,274 | ) | — | (7,274 | ) | ||||||||||||
Dispositions | — | (6,934 | ) | — | — | (6,934 | ) | ||||||||||||
Foreign currency | — | (1,805 | ) | 6,413 | — | 4,608 | |||||||||||||
Assets held for sale | — | (10,337 | ) | — | — | (10,337 | ) | ||||||||||||
Balance as of September 30, 2016 | $ | 3,288,481 | $ | 515,607 | $ | 223,031 | $ | 81,831 | $ | 4,108,950 |
(In thousands) | September 30, 2016 | December 31, 2015 | |||||
Senior Secured Credit Facilities(1) | $ | 6,300,000 | $ | 6,300,000 | |||
Receivables Based Credit Facility Due 2017(2) | 230,000 | 230,000 | |||||
9.0% Priority Guarantee Notes Due 2019 | 1,999,815 | 1,999,815 | |||||
9.0% Priority Guarantee Notes Due 2021 | 1,750,000 | 1,750,000 | |||||
11.25% Priority Guarantee Notes Due 2021 | 575,000 | 575,000 | |||||
9.0% Priority Guarantee Notes Due 2022 | 1,000,000 | 1,000,000 | |||||
10.625% Priority Guarantee Notes Due 2023 | 950,000 | 950,000 | |||||
Subsidiary Revolving Credit Facility Due 2018(3) | — | — | |||||
Other secured subsidiary debt(4) | 24,610 | 25,228 | |||||
Total consolidated secured debt | 12,829,425 | 12,830,043 | |||||
14.0% Senior Notes Due 2021(5) | 1,729,168 | 1,695,097 | |||||
Legacy Notes(6) | 667,900 | 667,900 | |||||
10.0% Senior Notes Due 2018(7) | 347,028 | 730,000 | |||||
Subsidiary Senior Notes due 2022 | 2,725,000 | 2,725,000 | |||||
Subsidiary Senior Subordinated Notes due 2020 | 2,200,000 | 2,200,000 | |||||
Clear Channel International B.V. Senior Notes due 2020 | 225,000 | 225,000 | |||||
Other subsidiary debt | 28,663 | 165 | |||||
Purchase accounting adjustments and original issue discount | (176,863 | ) | (204,611 | ) | |||
Long-term debt fees | (120,918 | ) | (147,983 | ) | |||
Total debt | 20,454,403 | 20,720,611 | |||||
Less: current portion | 204,591 | 181,512 | |||||
Total long-term debt | $ | 20,249,812 | $ | 20,539,099 |
(1) | Term Loan D and Term Loan E mature in 2019. |
(2) | The Receivables Based Credit Facility provides for borrowings up to the lesser of $535.0 million (the revolving credit commitment) or the borrowing base, subject to certain limitations contained in iHeartCommunications' material financing agreements. |
(3) | The Subsidiary Revolving Credit Facility provides for borrowings up to $75.0 million (the revolving credit commitment). |
(4) | Other secured subsidiary debt matures at various dates from 2016 through 2045. |
(5) | The 14.0% Senior Notes due 2021 are subject to required payments at various dates from 2018 through 2021. 2.0% per annum of the interest is paid through the issuance of payment-in-kind notes in the first and third quarters. |
(6) | iHeartCommunications' Legacy Notes, all of which were issued prior to the acquisition of iHeartCommunications by the Company in 2008, consist of Senior Notes maturing at various dates in 2016, 2018 and 2027. |
(7) | On July 15, 2016, Broader Media, LLC, an indirect wholly-owned subsidiary of the Company, repurchased approximately $383.0 million aggregate principal amount of iHeartCommunications’ 10.0% Senior Notes due 2018 for an aggregate purchase price of approximately $222.2 million. |
(In thousands) | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Current tax expense | $ | (9,339 | ) | $ | (2,144 | ) | $ | (56,340 | ) | $ | (65,838 | ) | |||
Deferred tax benefit (expense) | 3,726 | (697 | ) | 14,097 | (15,685 | ) | |||||||||
Income tax expense | $ | (5,613 | ) | $ | (2,841 | ) | $ | (42,243 | ) | $ | (81,523 | ) |
(In thousands) | The Company | Noncontrolling Interests | Consolidated | ||||||||
Balance as of January 1, 2016 | $ | (10,784,296 | ) | $ | 177,615 | $ | (10,606,681 | ) | |||
Net income (loss) | (402,360 | ) | 38,953 | (363,407 | ) | ||||||
Dividends declared and other payments to noncontrolling interests | — | (74,542 | ) | (74,542 | ) | ||||||
Share-based compensation | 2,170 | 8,140 | 10,310 | ||||||||
Foreign currency translation adjustments | 40,914 | 2,883 | 43,797 | ||||||||
Unrealized holding loss on marketable securities | (571 | ) | (64 | ) | (635 | ) | |||||
Reclassification adjustments | 28,919 | 3,904 | 32,823 | ||||||||
Other adjustments to comprehensive loss | (3,193 | ) | (358 | ) | (3,551 | ) | |||||
Other, net | (1,389 | ) | 495 | (894 | ) | ||||||
Balances as of September 30, 2016 | $ | (11,119,806 | ) | $ | 157,026 | $ | (10,962,780 | ) |
(In thousands) | The Company | Noncontrolling Interests | Consolidated | ||||||||
Balance as of January 1, 2015 | $ | (9,889,348 | ) | $ | 224,140 | $ | (9,665,208 | ) | |||
Net income (loss) | (661,349 | ) | 13,932 | (647,417 | ) | ||||||
Dividends declared and other payments to noncontrolling interests | — | (28,088 | ) | (28,088 | ) | ||||||
Purchase of additional noncontrolling interests | (40,820 | ) | (1,978 | ) | (42,798 | ) | |||||
Share-based compensation | 1,873 | 6,045 | 7,918 | ||||||||
Foreign currency translation adjustments | (82,865 | ) | (19,118 | ) | (101,983 | ) | |||||
Unrealized holding gain on marketable securities | 484 | 56 | 540 | ||||||||
Other adjustments to comprehensive loss | (1,036 | ) | (118 | ) | (1,154 | ) | |||||
Other, net | (618 | ) | 4,772 | 4,154 | |||||||
Balances as of September 30, 2015 | $ | (10,673,679 | ) | $ | 199,643 | $ | (10,474,036 | ) |
(In thousands, except per share data) | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
NUMERATOR: | |||||||||||||||
Net loss attributable to the Company – common shares | $ | (34,951 | ) | $ | (221,917 | ) | $ | (402,360 | ) | $ | (661,349 | ) | |||
DENOMINATOR: | |||||||||||||||
Weighted average common shares outstanding - basic | 84,650 | 84,350 | 84,510 | 84,236 | |||||||||||
Weighted average common shares outstanding - diluted(1) | 84,650 | 84,350 | 84,510 | 84,236 | |||||||||||
Net loss attributable to the Company per common share: | |||||||||||||||
Basic | $ | (0.41 | ) | $ | (2.63 | ) | $ | (4.76 | ) | $ | (7.85 | ) | |||
Diluted | $ | (0.41 | ) | $ | (2.63 | ) | $ | (4.76 | ) | $ | (7.85 | ) |
(1) | Outstanding equity awards of 8.0 million and 7.3 million for the three months ended September 30, 2016 and 2015, respectively, and 8.0 million and 7.3 million for the nine months ended September 30, 2016 and 2015, respectively, were not included in the computation of diluted earnings per share because to do so would have been antidilutive. |
(In thousands) | iHM | Americas Outdoor | International Outdoor | Other | Corporate and other reconciling items | Eliminations | Consolidated | ||||||||||||||||||||
Three Months Ended September 30, 2016 | |||||||||||||||||||||||||||
Revenue | $ | 857,099 | $ | 322,997 | $ | 350,060 | $ | 41,414 | $ | — | $ | (1,152 | ) | $ | 1,570,418 | ||||||||||||
Direct operating expenses | 229,668 | 142,989 | 223,097 | (178 | ) | — | — | 595,576 | |||||||||||||||||||
Selling, general and administrative expenses | 268,612 | 54,500 | 71,664 | 27,466 | — | (542 | ) | 421,700 | |||||||||||||||||||
Corporate expenses | — | — | — | — | 87,389 | (610 | ) | 86,779 | |||||||||||||||||||
Depreciation and amortization | 60,691 | 47,242 | 37,018 | 4,483 | 9,019 | — | 158,453 | ||||||||||||||||||||
Impairment charges | — | — | — | — | 8,000 | — | 8,000 | ||||||||||||||||||||
Other operating expense, net | — | — | — | — | (505 | ) | — | (505 | ) | ||||||||||||||||||
Operating income (loss) | $ | 298,128 | $ | 78,266 | $ | 18,281 | $ | 9,643 | $ | (104,913 | ) | $ | — | $ | 299,405 | ||||||||||||
Intersegment revenues | $ | — | $ | 1,152 | $ | — | $ | — | $ | — | $ | — | $ | 1,152 | |||||||||||||
Capital expenditures | $ | 23,238 | $ | 19,114 | $ | 30,803 | $ | 582 | $ | 3,596 | $ | — | $ | 77,333 | |||||||||||||
Share-based compensation expense | $ | — | $ | — | $ | — | $ | — | $ | 3,431 | $ | — | $ | 3,431 | |||||||||||||
Three Months Ended September 30, 2015 | |||||||||||||||||||||||||||
Revenue | $ | 846,865 | $ | 347,336 | $ | 348,941 | $ | 36,719 | $ | — | $ | (347 | ) | $ | 1,579,514 | ||||||||||||
Direct operating expenses | 253,848 | 149,072 | 223,644 | 586 | — | — | 627,150 | ||||||||||||||||||||
Selling, general and administrative expenses | 272,065 | 59,539 | 73,020 | 25,149 | — | (347 | ) | 429,426 | |||||||||||||||||||
Corporate expenses | — | — | — | — | 74,775 | — | 74,775 | ||||||||||||||||||||
Depreciation and amortization | 59,402 | 50,121 | 41,564 | 4,370 | 10,863 | — | 166,320 | ||||||||||||||||||||
Impairment charges | — | — | — | — | 21,631 | — | 21,631 | ||||||||||||||||||||
Other operating income, net | — | — | — | — | 6,914 | — | 6,914 | ||||||||||||||||||||
Operating income (loss) | $ | 261,550 | $ | 88,604 | $ | 10,713 | $ | 6,614 | $ | (100,355 | ) | $ | — | $ | 267,126 | ||||||||||||
Intersegment revenues | $ | — | $ | 347 | $ | — | $ | — | $ | — | $ | — | $ | 347 | |||||||||||||
Capital expenditures | $ | 14,426 | $ | 18,557 | $ | 28,665 | $ | 551 | $ | 5,416 | $ | — | $ | 67,615 | |||||||||||||
Share-based compensation expense | $ | — | $ | — | $ | — | $ | — | $ | 2,991 | $ | — | $ | 2,991 |
(In thousands) | iHM | Americas Outdoor | International Outdoor | Other | Corporate and other reconciling items | Eliminations | Consolidated | ||||||||||||||||||||
Nine Months Ended September 30, 2016 | |||||||||||||||||||||||||||
Revenue | $ | 2,463,899 | $ | 931,058 | $ | 1,044,866 | $ | 114,663 | $ | — | $ | (2,031 | ) | $ | 4,552,455 | ||||||||||||
Direct operating expenses | 704,097 | 421,039 | 654,802 | 1,255 | — | — | 1,781,193 | ||||||||||||||||||||
Selling, general and administrative expenses | 812,344 | 167,660 | 220,872 | 82,394 | — | (1,421 | ) | 1,281,849 | |||||||||||||||||||
Corporate expenses | — | — | — | — | 252,918 | (610 | ) | 252,308 | |||||||||||||||||||
Depreciation and amortization | 182,506 | 140,883 | 113,075 | 12,809 | 26,780 | — | 476,053 | ||||||||||||||||||||
Impairment charges | — | — | — | — | 8,000 | — | 8,000 | ||||||||||||||||||||
Other operating income, net | — | — | — | — | 219,768 | — | 219,768 | ||||||||||||||||||||
Operating income (loss) | $ | 764,952 | $ | 201,476 | $ | 56,117 | $ | 18,205 | $ | (67,930 | ) | $ | — | $ | 972,820 | ||||||||||||
Intersegment revenues | $ | — | $ | 2,031 | $ | — | $ | — | $ | — | $ | — | $ | 2,031 | |||||||||||||
Capital expenditures | $ | 46,303 | $ | 47,808 | $ | 97,487 | $ | 1,758 | $ | 7,682 | $ | — | $ | 201,038 | |||||||||||||
Share-based compensation expense | $ | — | $ | — | $ | — | $ | — | $ | 10,310 | $ | — | $ | 10,310 | |||||||||||||
Nine Months Ended September 30, 2015 | |||||||||||||||||||||||||||
Revenue | $ | 2,385,367 | $ | 984,485 | $ | 1,049,654 | $ | 106,941 | $ | — | $ | (2,510 | ) | $ | 4,523,937 | ||||||||||||
Direct operating expenses | 709,503 | 445,018 | 663,011 | 2,473 | — | — | 1,820,005 | ||||||||||||||||||||
Selling, general and administrative expenses | 799,370 | 172,522 | 219,689 | 81,798 | — | (2,510 | ) | 1,270,869 | |||||||||||||||||||
Corporate expenses | — | — | — | — | 232,492 | — | 232,492 | ||||||||||||||||||||
Depreciation and amortization | 179,703 | 151,574 | 124,961 | 16,842 | 32,087 | — | 505,167 | ||||||||||||||||||||
Impairment charges | — | — | — | — | 21,631 | — | 21,631 | ||||||||||||||||||||
Other operating income, net | — | — | — | — | 98,694 | — | 98,694 | ||||||||||||||||||||
Operating income (loss) | $ | 696,791 | $ | 215,371 | $ | 41,993 | $ | 5,828 | $ | (187,516 | ) | $ | — | $ | 772,467 | ||||||||||||
Intersegment revenues | $ | — | $ | 2,510 | $ | — | $ | — | $ | — | $ | — | $ | 2,510 | |||||||||||||
Capital expenditures | $ | 44,106 | $ | 50,916 | $ | 85,522 | $ | 1,346 | $ | 10,602 | $ | — | $ | 192,492 | |||||||||||||
Share-based compensation expense | $ | — | $ | — | $ | — | $ | — | $ | 7,918 | $ | — | $ | 7,918 |
• | Consolidated revenue decreased $9.1 million during the three months ended September 30, 2016 compared to the same period of 2015. Excluding the $5.9 million impact from movements in foreign exchange rates, consolidated revenue decreased $3.2 million during the three months ended September 30, 2016 compared to the same period of 2015. |
• | In the first quarter of 2016, we sold nine non-strategic U.S. outdoor markets and in the second quarter we sold our outdoor business in Turkey. These markets generated revenue of $32.8 million in the three months ended September 30, 2015. |
• | On July 15, 2016, Broader Media, LLC, our indirect wholly-owned subsidiary, repurchased approximately $383.0 million aggregate principal amount of iHeartCommunications’ 10.0% Senior Notes due 2018 for an aggregate purchase price of $222.2 million, resulting in a gain on extinguishment of debt of $157.6 million and we expect to realize a reduction in annual interest expense of $38.3 million. |
(In thousands) | Three Months Ended September 30, | % Change | Nine Months Ended September 30, | % Change | |||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||||||
Revenue | $ | 1,570,418 | $ | 1,579,514 | (0.6)% | $ | 4,552,455 | $ | 4,523,937 | 0.6% | |||||||||
Operating expenses: | |||||||||||||||||||
Direct operating expenses (excludes depreciation and amortization) | 595,576 | 627,150 | (5.0)% | 1,781,193 | 1,820,005 | (2.1)% | |||||||||||||
Selling, general and administrative expenses (excludes depreciation and amortization) | 421,700 | 429,426 | (1.8)% | 1,281,849 | 1,270,869 | 0.9% | |||||||||||||
Corporate expenses (excludes depreciation and amortization) | 86,779 | 74,775 | 16.1% | 252,308 | 232,492 | 8.5% | |||||||||||||
Depreciation and amortization | 158,453 | 166,320 | (4.7)% | 476,053 | 505,167 | (5.8)% | |||||||||||||
Impairment charges | 8,000 | 21,631 | (63.0)% | 8,000 | 21,631 | (63.0)% | |||||||||||||
Other operating income (expense), net | (505 | ) | 6,914 | 219,768 | 98,694 | ||||||||||||||
Operating income | 299,405 | 267,126 | 12.1% | 972,820 | 772,467 | 25.9% | |||||||||||||
Interest expense | 459,852 | 453,921 | 1,389,793 | 1,348,649 | |||||||||||||||
Loss on investments, net | (13,767 | ) | (5,000 | ) | (13,767 | ) | (4,421 | ) | |||||||||||
Equity in earnings (loss) of nonconsolidated affiliates | 1,117 | (857 | ) | (926 | ) | (1,216 | ) | ||||||||||||
Gain (loss) on extinguishment of debt | 157,556 | — | 157,556 | (2,201 | ) | ||||||||||||||
Other income (expense), net | (7,323 | ) | (17,976 | ) | (47,054 | ) | 18,126 | ||||||||||||
Loss before income taxes | (22,864 | ) | (210,628 | ) | (321,164 | ) | (565,894 | ) | |||||||||||
Income tax expense | (5,613 | ) | (2,841 | ) | (42,243 | ) | (81,523 | ) | |||||||||||
Consolidated net loss | (28,477 | ) | (213,469 | ) | (363,407 | ) | (647,417 | ) | |||||||||||
Less amount attributable to noncontrolling interest | 6,474 | 8,448 | 38,953 | 13,932 | |||||||||||||||
Net loss attributable to the Company | $ | (34,951 | ) | $ | (221,917 | ) | $ | (402,360 | ) | $ | (661,349 | ) |
(In thousands) | Three Months Ended September 30, | % Change | Nine Months Ended September 30, | % Change | |||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||||||
Revenue | $ | 857,099 | $ | 846,865 | 1.2% | $ | 2,463,899 | $ | 2,385,367 | 3.3% | |||||||||
Direct operating expenses | 229,668 | 253,848 | (9.5)% | 704,097 | 709,503 | (0.8)% | |||||||||||||
SG&A expenses | 268,612 | 272,065 | (1.3)% | 812,344 | 799,370 | 1.6% | |||||||||||||
Depreciation and amortization | 60,691 | 59,402 | 2.2% | 182,506 | 179,703 | 1.6% | |||||||||||||
Operating income | $ | 298,128 | $ | 261,550 | 14.0% | $ | 764,952 | $ | 696,791 | 9.8% |
(In thousands) | Three Months Ended September 30, | % Change | Nine Months Ended September 30, | % Change | |||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||||||
Revenue | $ | 322,997 | $ | 347,336 | (7.0)% | $ | 931,058 | $ | 984,485 | (5.4)% | |||||||||
Direct operating expenses | 142,989 | 149,072 | (4.1)% | 421,039 | 445,018 | (5.4)% | |||||||||||||
SG&A expenses | 54,500 | 59,539 | (8.5)% | 167,660 | 172,522 | (2.8)% | |||||||||||||
Depreciation and amortization | 47,242 | 50,121 | (5.7)% | 140,883 | 151,574 | (7.1)% | |||||||||||||
Operating income | $ | 78,266 | $ | 88,604 | (11.7)% | $ | 201,476 | $ | 215,371 | (6.5)% |
(In thousands) | Three Months Ended September 30, | % Change | Nine Months Ended September 30, | % Change | |||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||||||
Revenue | $ | 350,060 | $ | 348,941 | 0.3% | $ | 1,044,866 | $ | 1,049,654 | (0.5)% | |||||||||
Direct operating expenses | 223,097 | 223,644 | (0.2)% | 654,802 | 663,011 | (1.2)% | |||||||||||||
SG&A expenses | 71,664 | 73,020 | (1.9)% | 220,872 | 219,689 | 0.5% | |||||||||||||
Depreciation and amortization | 37,018 | 41,564 | (10.9)% | 113,075 | 124,961 | (9.5)% | |||||||||||||
Operating income | $ | 18,281 | $ | 10,713 | 70.6% | $ | 56,117 | $ | 41,993 | 33.6% |
(In thousands) | Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
iHM | $ | 298,128 | $ | 261,550 | $ | 764,952 | $ | 696,791 | |||||||
Americas outdoor | 78,266 | 88,604 | 201,476 | 215,371 | |||||||||||
International outdoor | 18,281 | 10,713 | 56,117 | 41,993 | |||||||||||
Other | 9,643 | 6,614 | 18,205 | 5,828 | |||||||||||
Other operating income, net | (505 | ) | 6,914 | 219,768 | 98,694 | ||||||||||
Impairment charges | (8,000 | ) | (21,631 | ) | (8,000 | ) | (21,631 | ) | |||||||
Corporate expense (1) | (95,798 | ) | (85,638 | ) | (279,088 | ) | (264,579 | ) | |||||||
Eliminations | (610 | ) | — | (610 | ) | — | |||||||||
Consolidated operating income | $ | 299,405 | $ | 267,126 | $ | 972,820 | $ | 772,467 |
(1) | Corporate expenses include expenses related to iHM, Americas outdoor, International outdoor and our Other category, as well as overall executive, administrative and support functions. |
(In thousands) | Nine Months Ended September 30, | ||||||
2016 | 2015 | ||||||
Cash provided by (used for): | |||||||
Operating activities | $ | (272,578 | ) | $ | (363,149 | ) | |
Investing activities | $ | 366,312 | $ | 173,951 | |||
Financing activities | $ | (322,583 | ) | $ | 126,704 |
(In millions) | September 30, 2016 | December 31, 2015 | |||||
Senior Secured Credit Facilities: | |||||||
Term Loan D Facility Due 2019 | 5,000.0 | 5,000.0 | |||||
Term Loan E Facility Due 2019 | 1,300.0 | 1,300.0 | |||||
Receivables Based Credit Facility Due 2017 (1) | 230.0 | 230.0 | |||||
9.0% Priority Guarantee Notes Due 2019 | 1,999.8 | 1,999.8 | |||||
9.0% Priority Guarantee Notes Due 2021 | 1,750.0 | 1,750.0 | |||||
11.25% Priority Guarantee Notes Due 2021 | 575.0 | 575.0 | |||||
9.0% Priority Guarantee Notes Due 2022 | 1,000.0 | 1,000.0 | |||||
10.625% Priority Guarantee Notes Due 2023 | 950.0 | 950.0 | |||||
Subsidiary Revolving Credit Facility due 2018(2) | — | — | |||||
Other secured subsidiary debt | 24.6 | 25.2 | |||||
Total secured debt | 12,829.4 | 12,830.0 | |||||
14.0% Senior Notes Due 2021 | 1,729.2 | 1,695.1 | |||||
Legacy Notes: | |||||||
5.5% Senior Notes Due 2016 | 192.9 | 192.9 | |||||
6.875% Senior Notes Due 2018 | 175.0 | 175.0 | |||||
7.25% Senior Notes Due 2027 | 300.0 | 300.0 | |||||
10.0% Senior Notes Due 2018(3) | 347.0 | 730.0 | |||||
Subsidiary Senior Notes: | |||||||
6.5% Series A Senior Notes Due 2022 | 735.8 | 735.8 | |||||
6.5% Series B Senior Notes Due 2022 | 1,989.2 | 1,989.2 | |||||
Subsidiary Senior Subordinated Notes: | |||||||
7.625% Series A Senior Notes Due 2020 | 275.0 | 275.0 | |||||
7.625% Series B Senior Notes Due 2020 | 1,925.0 | 1,925.0 | |||||
Subsidiary 8.75% Senior Notes due 2020 | 225.0 | 225.0 | |||||
Other subsidiary debt | 28.7 | 0.2 | |||||
Purchase accounting adjustments and original issue discount | (176.9 | ) | (204.6 | ) | |||
Long-term debt fees | (120.9 | ) | (148.0 | ) | |||
Total debt | 20,454.4 | 20,720.6 | |||||
Less: Cash and cash equivalents | 542.9 | 772.7 | |||||
$ | 19,911.5 | $ | 19,947.9 |
(1) | The receivables based credit facility provides for borrowings of up to the lesser of $535.0 million (the revolving credit commitment) or the borrowing base amount, as defined under the receivables based credit facility, subject to certain limitations contained in iHeartCommunications' material financing agreements. |
(2) | The subsidiary revolving credit facility provides for borrowings of up to $75.0 million (the revolving credit commitment). |
(3) | On July 15, 2016, Broader Media, LLC, our indirect wholly-owned subsidiary, repurchased approximately $383.0 million aggregate principal amount of iHeartCommunications’ 10.0% Senior Notes due 2018 for an aggregate purchase price of approximately $222.2 million. |
Four Quarters Ended | |||
(In Millions) | September 30, 2016 | ||
Consolidated EBITDA (as defined by iHeartCommunications' senior secured credit facilities) | $ | 1,855.6 | |
Less adjustments to consolidated EBITDA (as defined by iHeartCommunications' senior secured credit facilities): | |||
Costs incurred in connection with the closure and/or consolidation of facilities, retention charges, consulting fees and other permitted activities | (31.5 | ) | |
Extraordinary, non-recurring or unusual gains or losses or expenses and severance (as referenced in the definition of consolidated EBITDA in iHeartCommunications' senior secured credit facilities) | (33.5 | ) | |
Non-cash charges | (26.3 | ) | |
Other items | 33.9 | ||
Less: Depreciation and amortization, Impairment charges, Gains and losses on acquisitions and divestitures and Share-based compensation expense | (448.4 | ) | |
Operating income | 1,349.8 | ||
Plus: Depreciation and amortization, Impairment charges, Gain (loss) on disposal of operating and fixed assets, and Share-based compensation expense | 439.3 | ||
Less: Interest expense | (1,846.6 | ) | |
Less: Current income tax expense | (49.6 | ) | |
Plus: Other income (expense), net | (52.1 | ) | |
Adjustments to reconcile consolidated net loss to net cash provided by operating activities (including Provision for doubtful accounts, Amortization of deferred financing charges and note discounts, net and Other reconciling items, net) | 112.8 | ||
Change in assets and liabilities, net of assets acquired and liabilities assumed | 58.0 | ||
Net cash used for operating activities | $ | 11.6 |
• | Revenue growth sales forecasts published by BIA Financial Network, Inc. (“BIA”), varying by market, were used for the initial four-year period; |
• | 2.0% revenue growth was assumed beyond the initial four-year period; |
• | Revenue was grown proportionally over a build-up period, reaching market revenue forecast by year 3; |
• | Operating margins of 12.5% in the first year gradually climb to the industry average margin in year 3 of up to 26.5%, depending on market size; and |
• | Assumed discount rates of 8.5% for the 13 largest markets and 9.0% for all other markets. |
• | Industry revenue growth forecast at 3.0% was used for the initial four-year period; |
• | 3.0% revenue growth was assumed beyond the initial four-year period; |
• | Revenue was grown over a build-up period, reaching maturity by year 2; |
• | Operating margins gradually climb to the industry average margin of up to 56.1%, depending on market size, by year 3; and |
• | Assumed discount rate of 7.5%. |
(In thousands) | Revenue | Profit | Discount | |||||||||
Description | Growth Rate | Margin | Rates | |||||||||
FCC license | $ | 465,102 | $ | 158,468 | $ | 495,326 | ||||||
Billboard permits | $ | 1,138,600 | $ | 162,800 | $ | 1,162,700 |
• | Expected cash flows underlying our business plans for the periods 2016 through 2020. Our cash flow assumptions are based on detailed, multi-year forecasts performed by each of our operating segments, and reflect the advertising outlook across our businesses. |
• | Cash flows beyond 2020 are projected to grow at a perpetual growth rate, which we estimated at 2.0% for our iHM segment, 3.0% for our Americas outdoor and International outdoor segments, and 2.0% for our Other segment. |
• | In order to risk adjust the cash flow projections in determining fair value, we utilized a discount rate of approximately 8.0% to 11.5% for each of our reporting units. |
(In thousands) | Revenue | Profit | Discount | |||||||||
Description | Growth Rate | Margin | Rates | |||||||||
iHM | $ | 1,080,000 | $ | 280,000 | $ | 1,050,000 | ||||||
Americas Outdoor | $ | 860,000 | $ | 180,000 | $ | 820,000 | ||||||
International Outdoor | $ | 330,000 | $ | 210,000 | $ | 260,000 |
• | the impact of our substantial indebtedness, including the effect of our leverage on our financial position and earnings; |
• | our ability to generate sufficient cash from operations and liquidity-generating transactions and our need to allocate significant amounts of our cash to make payments on our indebtedness, which in turn could reduce our financial flexibility and ability to fund other activities; |
• | risks associated with weak or uncertain global economic conditions and their impact on the capital markets; |
• | other general economic and political conditions in the United States and in other countries in which we currently do business, including those resulting from recessions, political events and acts or threats of terrorism or military conflicts; |
• | industry conditions, including competition; |
• | the level of expenditures on advertising; |
• | legislative or regulatory requirements; |
• | fluctuations in operating costs; |
• | technological changes and innovations; |
• | changes in labor conditions, including programming, program hosts and management; |
• | capital expenditure requirements; |
• | risks of doing business in foreign countries; |
• | fluctuations in exchange rates and currency values; |
• | the outcome of pending and future litigation; |
• | taxes and tax disputes; |
• | changes in interest rates; |
• | shifts in population and other demographics; |
• | access to capital markets and borrowed indebtedness; |
• | our ability to implement our business strategies; |
• | the risk that we may not be able to integrate the operations of acquired businesses successfully; |
• | the risk that our strategic revenue and efficiency initiatives may not be entirely successful or that any cost savings achieved from such strategic revenue and efficiency initiatives may not persist; and |
• | certain other factors set forth in our other filings with the SEC. |
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 30 | 109,248 | $ | 1.23 | — | $ | — | |||||||
August 1 through August 31 | — | — | — | — | |||||||||
September 1 through September 30 | 118 | 1.22 | — | — | |||||||||
Total | 109,366 | $ | 1.23 | — | $ | — |
(1) | The shares indicated consist of shares of our Class A common stock tendered by employees to us during the three months ended September 30, 2016 to satisfy the employees’ tax withholding obligation in connection with the vesting and release of restricted shares, which are repurchased by us based on their fair market value on the date the relevant transaction occurs. |
Exhibit Number | Description | |
31.1* | Certification Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
31.2* | Certification Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
32.1** | Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
32.2** | Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
101* | Interactive Data Files. |
IHEARTMEDIA, INC. | |
November 9, 2016 | |
/s/ SCOTT D. HAMILTON | |
Scott D. Hamilton | |
Senior Vice President, Chief Accounting Officer and Assistant Secretary |
1. | I have reviewed this Quarterly Report on Form 10-Q of iHeartMedia, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ Robert W. Pittman |
Robert W. Pittman |
Chairman and Chief Executive Officer |
1. | I have reviewed this Quarterly Report on Form 10-Q of iHeartMedia, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/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 |
Document and Entity Information - shares |
9 Months Ended | |
---|---|---|
Sep. 30, 2016 |
Nov. 07, 2016 |
|
Document And Entity Information [Abstract] | ||
Entity Registrant Name | iHeartMedia, Inc. | |
Entity Central Index Key | 0001400891 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2016 | |
Document Fiscal Year Focus | 2016 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Common class A | ||
Document Information [Line Items] | ||
Entity common stock, shares outstanding | 31,141,367 | |
Common class B | ||
Document Information [Line Items] | ||
Entity common stock, shares outstanding | 555,556 | |
Common class C | ||
Document Information [Line Items] | ||
Entity common stock, shares outstanding | 58,967,502 |
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
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Statement of Financial Position [Abstract] | ||
Allowances for receivables | $ 36,556 | $ 34,889 |
Common class A | ||
Class of Stock [Line Items] | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 400,000,000 | 400,000,000 |
Common stock, shares issued | 31,528,762 | 30,295,457 |
Common class B | ||
Class of Stock [Line Items] | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares issued | 555,556 | 555,556 |
Common class C | ||
Class of Stock [Line Items] | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 58,967,502 | 58,967,502 |
Treasury stock | ||
Class of Stock [Line Items] | ||
Treasury stock, shares | 365,517 | 229,824 |
BASIS OF PRESENTATION |
9 Months Ended |
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Sep. 30, 2016 | |
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 Company’s reportable segments are iHeartMedia (“iHM”), Americas outdoor advertising (“Americas outdoor” or “Americas outdoor advertising”) and International outdoor advertising (“International outdoor” or “International outdoor advertising”). 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. Due to seasonality and other factors, the results for the interim periods may not be indicative of results for the full year. The financial statements contained herein should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s 2015 Annual Report on Form 10-K. 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 financial interest or is the primary beneficiary. Investments in companies in which the Company owns 20% to 50% of the voting common stock or otherwise 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. Certain prior-period amounts have been reclassified to conform to the 2016 presentation. During the first quarter of 2016, the Company reevaluated its segment reporting and determined that its iHeartMedia Revenue Platform (iHMRP) business, an information technology group dedicated to system development, implementation and maintenance of the Company’s radio revenue platforms, should be managed by its Corporate leadership team. As a result, the operations of the iHMRP business are no longer reflected within the Other segment and are included in the results of its Corporate segment. Accordingly, the Company has recast the corresponding prior year segment disclosures to reflect the current year presentation. New Accounting Pronouncements During the second quarter of 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements - Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern. This update provides U.S. GAAP guidance on management’s responsibility in evaluating whether there is substantial doubt about a company’s ability to continue as a going concern and about related footnote disclosures. For each reporting period, the Company will be required to evaluate whether there are conditions or events that raise substantial doubt about a company’s ability to continue as a going concern within one year from the date the financial statements are issued. The amendments in this update are effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. The Company is currently evaluating the impact of the provisions of this new standard on its consolidated financial statements. During the first quarter of 2015, the FASB issued ASU No. 2015-02, Consolidation (Topic 810), Amendments to the Consolidation Analysis. This new standard eliminates the deferral of FAS 167, which has allowed entities with interest in certain investment funds to follow the previous consolidation guidance in FIN 46(R) and makes other changes to both the variable interest model and the voting model. The standard is effective for annual periods, and for interim periods within those annual periods, beginning after December 15, 2015. The adoption of this guidance did not have a material effect on the Company’s consolidated financial statements. During the second quarter of 2015, the FASB issued ASU No. 2015-03, Interest-Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. This update simplifies the presentation of debt issuance costs as a deduction from the carrying value of the outstanding debt balance rather than showing the debt issuance costs as an asset. The standard is effective for annual periods, and for interim periods within those annual periods, beginning after December 15, 2015. The retrospective adoption of this guidance resulted in the reclassification of debt issuance costs of $148.0 million as of December 31, 2015, which are now reflected as “Long-term debt fees” in Note 3. During the third quarter of 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date. This update provides a one-year deferral of the effective date for ASU No. 2014-09, Revenue from Contracts with Customers. ASU No. 2014-09 provides guidance for the recognition, measurement and disclosure of revenue resulting from contracts with customers and will supersede virtually all of the current revenue recognition guidance under U.S. GAAP. The standard is effective for the first interim period within annual reporting periods beginning after December 15, 2017. The Company is currently evaluating the impact of the provisions of this new standard on its consolidated financial statements. During the third quarter of 2015, the FASB issued ASU No. 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments. This update eliminates the requirement for an acquirer in a business combination to account for measurement-period adjustments retrospectively. Instead, acquirers must recognize measurement-period adjustments during the period in which they determine the amounts, including the effect on earnings of any amounts they would have recorded in previous periods if the accounting had been completed at the acquisition date. The standard is effective for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. The adoption of this guidance did not have a material effect on the Company’s consolidated financial statements. During the first quarter of 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). The new leasing standard presents significant changes to the balance sheets of lessees. Lessor accounting is updated to align with certain changes in the lessee model and the new revenue recognition standard which was issued in the third quarter of 2015. The standard is effective for annual periods, and for interim periods within those annual periods, beginning after December 15, 2018. The Company is currently evaluating the impact of the provisions of this new standard on its consolidated financial statements. During the second quarter of 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation (Topic 718). This update changes the accounting for certain aspects of share-based payments to employees. Income tax effects of share-based payment awards will be recognized in the income statement with the vesting or settlement of the awards and the record keeping for additional paid-in capital pools will no longer be necessary. Additionally, companies can make a policy election to either estimate forfeitures or recognize them as they occur. The standard is effective for annual periods, and for interim periods within those annual periods, beginning after December 15, 2016. The Company is currently evaluating the impact of the provisions of this new standard on its consolidated financial statements. During the second quarter of 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326). The new standard changes the impairment model for most financial assets and certain other instruments. Entities will be required to use a model that will result in the earlier recognition of allowances for losses for trade and other receivables, held-to-maturity debt securities, loans and other instruments. For available-for-sale debt securities with unrealized losses, the losses will be recognized as allowances rather than as reductions in the amortized cost of the securities. For an SEC filer, the standard is effective for annual periods, and for interim periods within those annual periods, beginning after December 15, 2019. The Company is currently evaluating the impact of the provisions of this new standard on its consolidated financial statements. During the third quarter of 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230). The new standard addresses the classification of cash flows related to certain cash receipts and cash payments. Additionally, the standard clarifies how the predominance principle should be used when cash receipts and cash payments have aspects of more than one class of cash flows. First, an entity will apply the guidance in Topic 230 and other applicable topics. If there is no guidance for those cash receipts and cash payments, an entity will determine each separately identifiable source or use and classify the receipt or payment based on the nature of the cash flow. If a receipt or payment has aspects of more than one class of cash flows and cannot be separated, the classification will depend on the predominant source of use. The standard is effective for annual periods, and for interim periods within those annual periods, beginning after December 15, 2017. The Company is currently evaluating the impact of the provisions of this new standard on its consolidated financial statements. |
PROPERTY, PLANT AND EQUIPMENT, INTANGIBLE ASSETS AND GOODWILL |
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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 Dispositions During the first quarter of 2016, the Company and certain of its subsidiaries completed the final closing for the sale of six of the Company’s broadcast communication tower sites and related assets for approximately $5.5 million. Simultaneous with the sale, the Company entered into lease agreements for the continued use of space on all six of the towers sold. The Company realized a net gain of $2.7 million, of which $1.9 million was deferred and will be recognized over the lease term. During the first quarter of 2016, Americas outdoor sold nine non-strategic outdoor markets including Cleveland and Columbus, Ohio, Des Moines, Iowa, Ft. Smith, Arkansas, Memphis, Tennessee, Portland, Oregon, Reno, Nevada, Seattle, Washington and Wichita, Kansas for net proceeds, which included cash and certain advertising assets in Florida, totaling $592.6 million. The Company recognized a net gain of $278.3 million related to the sale, which is included within Other operating income (expense), net. During the first quarter of 2016, Americas outdoor also entered into an agreement to sell its Indianapolis, Indiana market in exchange for certain assets in Atlanta, Georgia, plus approximately $41.2 million in cash. The transaction is subject to regulatory approval and is expected to close in 2016. This transaction has met the criteria to be classified as held-for-sale and as such, the related assets are separately presented on the face of the Consolidated Balance Sheet. During the second quarter of 2016, International outdoor sold its business in Turkey. As a result, the Company recognized a net loss of $56.6 million, which includes $32.2 million in cumulative translation adjustments that were recognized upon the sale of the Company's subsidiaries in Turkey. On October 24, 2016, the Company sold its International outdoor business in Australia (“Australia Outdoor”), for cash proceeds of $203.9 million. As of September 30, 2016, Australia Outdoor had $48.6 million in current assets, $56.2 million in property, plant & equipment, $5.7 million in other assets, $31.1 million in current liabilities and $9.0 million in long-term liabilities. Australia Outdoor revenue, direct expenses, SG&A expenses and depreciation and amortization for the nine months ended September 30, 2016 were $96.0 million, $56.2 million, $18.5 million and $9.4 million, respectively, and $83.6 million, $51.9 million, $16.1 million and $7.3 million for the nine months ended September 30, 2015, respectively. Property, Plant and Equipment The Company’s property, plant and equipment consisted of the following classes of assets as of September 30, 2016 and December 31, 2015, respectively:
Indefinite-lived Intangible Assets The Company’s indefinite-lived intangible assets consist of Federal Communications Commission (“FCC”) broadcast licenses in its iHM segment and billboard permits in its Americas outdoor advertising segment. Due to significant differences in both business practices and regulations, billboards in the International outdoor segment are subject to long-term, finite contracts unlike the Company’s permits in the United States and Canada. Accordingly, there are no indefinite-lived intangible assets in the International outdoor segment. Annual Impairment Test on Indefinite-lived Intangible Assets The Company performs its annual impairment test on indefinite-lived intangible assets 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 properly 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 using 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 or billboard permit within a market. The Company recognized impairment charges related to its indefinite-lived intangible assets of $0.7 million during the three and nine months ended September 30, 2016. The Company recognized impairment charges related to its indefinite-lived intangible assets of $21.6 million during the three and nine months ended September 30, 2015. Other Intangible Assets Other intangible assets include definite-lived intangible assets and permanent easements. The Company’s definite-lived intangible assets primarily include transit and street furniture contracts, talent and representation contracts, customer and advertiser relationships, and site-leases 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 the assets are expected to contribute directly or indirectly to the Company’s future cash flows. Permanent easements are indefinite-lived intangible assets which include certain rights to use real property not owned by the Company. The Company periodically reviews the appropriateness of the amortization periods related to its definite-lived intangible assets. These assets are recorded at cost. The following table presents the gross carrying amount and accumulated amortization for each major class of other intangible assets as of September 30, 2016 and December 31, 2015, respectively:
Total amortization expense related to definite-lived intangible assets for the three months ended September 30, 2016 and 2015 was $55.6 million and $57.3 million, respectively. Total amortization expense related to definite-lived intangible assets for the nine months ended September 30, 2016 and 2015 was $167.7 million and $180.9 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 Annual Impairment Test to Goodwill The Company performs its annual impairment test on goodwill as of July 1 of each year. Each of the U.S. radio markets and outdoor advertising markets are components of the Company. The U.S. radio markets are aggregated into a single reporting unit and the U.S. outdoor advertising markets are aggregated into a single reporting unit for purposes of the goodwill impairment test using the guidance in ASC 350-20-55. The Company also determined that each country within its Americas outdoor segment and International outdoor segment constitutes a separate reporting unit. The goodwill impairment test is a two-step process. The first step, used to screen for potential impairment, compares the fair value of the reporting unit with its carrying amount, including goodwill. If applicable, the second step, used to measure the amount of the impairment loss, compares the implied fair value of the reporting unit goodwill with the carrying amount of that goodwill. Each of the Company’s reporting units is valued using a discounted cash flow model which requires estimating future cash flows expected to be generated from the reporting unit and discounting such cash flows to their present value using a risk-adjusted discount rate. Terminal values were also estimated and discounted to their present value. Assessing the recoverability of goodwill requires the Company to make estimates and assumptions about sales, operating margins, growth rates and discount rates based on its budgets, business plans, economic projections, anticipated future cash flows and marketplace data. There are inherent uncertainties related to these factors and management’s judgment in applying these factors. The Company recognized goodwill impairment of $7.3 million during the three and nine months ended September 30, 2016 related to one market in the Company's International outdoor segment and concluded no goodwill impairment charge was required for the three and nine months ended September 30, 2015. The following table presents the changes in the carrying amount of goodwill in each of the Company’s reportable segments:
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LONG-TERM DEBT |
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LONG-TERM DEBT | LONG-TERM DEBT Long-term debt outstanding as of September 30, 2016 and December 31, 2015 consisted of the following:
The Company’s weighted average interest rate as of September 30, 2016 and December 31, 2015 was 8.5%. The aggregate market value of the Company’s debt based on market prices for which quotes were available was approximately $16.5 billion and $15.2 billion as of September 30, 2016 and December 31, 2015, 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. Surety Bonds, Letters of Credit and Guarantees As of September 30, 2016, the Company and its subsidiaries had outstanding surety bonds, commercial standby letters of credit and bank guarantees of $60.9 million, $99.0 million and $59.9 million, respectively. Bank guarantees of $26.1 million were backed by cash collateral. These surety bonds, letters of credit and bank guarantees relate to various operational matters including insurance, bid, concession and performance bonds as well as other items. Solicitation of Consents for Senior Notes due 2021 On October 4, 2016, iHeartCommunications announced the successful completion of the solicitation of consents (the “Consent Solicitation”) from holders of its outstanding Senior Notes due 2021 (the “2021 Notes”) to an amendment to the indenture governing the 2021 Notes (the “Indenture”) to increase the aggregate principal amount of indebtedness under Credit Facilities (as defined in the Indenture) permitted to be incurred under Section 4.09(b)(1) of the Indenture by $500.0 million to $17.3 billion. iHeartCommunications paid an aggregate consent fee of $8.6 million to holders of the 2021 Notes that consented to the amendment in accordance with the terms of the Consent Solicitation, which will be amortized over the remaining term of the 2021 Notes. |
COMMITMENTS AND CONTINGENCIES |
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Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES The 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 the Company’s 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 disputes; defamation matters; employment and benefits related claims; governmental fines; intellectual property claims; and tax disputes. International Outdoor Investigation On April 21, 2015, inspections were conducted at the premises of Clear Channel in Denmark and Sweden as part of an investigation by Danish competition authorities. Additionally, on the same day, Clear Channel UK received a communication from the UK competition authorities, also in connection with the investigation by Danish competition authorities. Clear Channel and its affiliates are cooperating with the national competition authorities. Stockholder Litigation On May 9, 2016, a stockholder of Clear Channel Outdoor Holdings, Inc. ("CCOH") filed a derivative lawsuit in the Court of Chancery of the State of Delaware, captioned GAMCO Asset Management Inc. v. iHeartMedia Inc. et al., C.A. No. 12312-VCS. The complaint names as defendants the Company, iHeartCommunications, Inc. ("iHeartCommunications"), an indirect subsidiary of the Company, Bain Capital Partners, LLC and Thomas H. Lee Partners, L.P. (together, the "Sponsor Defendants"), the Company's private equity sponsors and majority owners, and the members of CCOH's board of directors. CCOH also is named as a nominal defendant. The complaint alleges that the defendants have breached their fiduciary duties by causing CCOH to: (i) continue to loan cash to iHeartCommunications under the intercompany note at below-market rates; (ii) abandon its growth and acquisition strategies in favor of transactions that would provide cash to the Company and iHeartCommunications; (iii) issue new debt in the CCIBV note offering (the "CCIBV Note Offering") to provide cash to the Company and iHeartCommunications through a dividend; and (iv) effect the sales of certain outdoor markets in the U.S. (the "Outdoor Asset Sales") allegedly to provide cash to the Company and iHeartCommunications through a dividend. The complaint also alleges that the Company, iHeartCommunications and the Sponsor Defendants aided and abetted the directors' breaches of their fiduciary duties. The complaint further alleges that the Company, iHeartCommunications and the Sponsor Defendants were unjustly enriched as a result of these transactions and that these transactions constituted a waste of corporate assets for which the defendants are liable to CCOH. The plaintiff is seeking, among other things, a ruling that the defendants breached their fiduciary duties to CCOH and that the Company, iHeartCommunications and the Sponsor Defendants aided and abetted the CCOH board of directors' breaches of fiduciary duty, rescission of payments made by CCOH to iHeartCommunications and its affiliates pursuant to dividends declared in connection with the CCIBV Note Offering and Outdoor Asset Sales, and an order requiring the Company, iHeartCommunications and the Sponsor Defendants to disgorge all profits they have received as a result of the alleged fiduciary misconduct. On May 26, 2016, the plaintiff filed a motion seeking expedited discovery and an expedited trial on certain counts of its complaint. On June 27, 2016, the court denied the motion for an expedited trial and discovery, and on July 12, 2016, the parties stipulated to a schedule that would allow for a decision on the defendants' forthcoming motion to dismiss by mid-September and a trial, if necessary, beginning February 27, 2017. On July 20, 2016, the defendants filed a motion to dismiss plaintiff's verified stockholder derivative complaint for failure to state a claim upon which relief can be granted. A hearing was held on defendants' motion to dismiss on September 12, 2016. The court has not yet ruled on the motion. |
INCOME TAXES |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INCOME TAXES | INCOME TAXES Income Tax Expense The Company’s income tax expense for the three and nine months ended September 30, 2016 and 2015, respectively, consisted of the following components:
The effective tax rates for the three and nine months ended September 30, 2016 were (24.5)% and (13.2)%, respectively. The effective tax rates for the three and nine months ended September 30, 2015 were (1.3)% and (14.4)%, respectively. The 2016 and 2015 effective tax rates were primarily impacted by the valuation allowance recorded against deferred tax assets resulting from current period net operating losses in U.S. federal, state and certain foreign jurisdictions due to uncertainty regarding the Company's ability to realize those assets in future periods. |
SHAREHOLDERS' DEFICIT |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SHAREHOLDERS' DEFICIT | SHAREHOLDERS’ DEFICIT The Company reports its noncontrolling interests in consolidated subsidiaries as a component of equity separate from the Company’s equity. The following table shows the changes in shareholders' deficit attributable to the Company and the noncontrolling interests of subsidiaries in which the Company has a majority, but not total, ownership interest:
The Company has granted restricted stock and CCOH has granted restricted stock, restricted stock units and options to purchase shares of CCOH's Class A common stock to certain key individuals. COMPUTATION OF LOSS PER SHARE
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OTHER INFORMATION |
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Sep. 30, 2016 | |
Other Income and Expenses [Abstract] | |
OTHER INFORMATION | OTHER INFORMATION Other Comprehensive Income (Loss) The total (decrease) increase in deferred income tax liabilities of other adjustments to comprehensive loss for the three months ended September 30, 2016 and 2015 were $0.1 million and $0.0 million, respectively. The total (decrease) increase in deferred income tax liabilities of other adjustments to comprehensive loss for the nine months ended September 30, 2016 and 2015 were $(0.7) million and $(0.6) million, respectively. Barter and Trade Barter and trade revenues and expenses are included in consolidated revenue and selling, general and administrative expenses, respectively. Barter and trade revenues were $30.2 million and $30.4 million for the three months ended September 30, 2016 and 2015, respectively, and $105.7 million and $88.1 million for the nine months ended September 30, 2016 and 2015, respectively. Barter and trade expenses were $22.5 million and $30.6 million for the three months ended September 30, 2016 and 2015, respectively, and $80.0 million and $84.9 million for the nine months ended September 30, 2016 and 2015, respectively. Barter and trade revenues include $5.4 million and $22.1 million of revenue recognized in connection with advertising provided in the three and nine months ended September 30, 2016, respectively, in exchange for investments in certain non-public companies. There is no offsetting barter expense associated with these non-cash transactions. Investments During the third quarter of 2016 the Company determined that one of its cost-method investments had declined in value. Such decline in value was considered to be other than temporary, and the Company recorded a loss on investments of $14.5 million to state the investment at its estimated fair value. |
SEGMENT DATA |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SEGMENT DATA | SEGMENT DATA The Company’s reportable segments, which it believes best reflect how the Company is currently managed, are iHM, Americas outdoor advertising and International outdoor advertising. Revenue and expenses earned and charged between segments are recorded at estimated fair value and eliminated in consolidation. The iHM segment provides media and entertainment services via broadcast and digital delivery and also includes the Company’s events and national syndication businesses. The Americas outdoor advertising segment consists of operations primarily in the United States, Canada and Latin America. The International outdoor advertising segment primarily includes operations in Europe, Asia and Australia. The Other category includes the Company’s media representation business as well as other general support services and initiatives that are ancillary to the Company’s other businesses. Corporate includes infrastructure and support, including information technology, human resources, legal, finance and administrative functions for each of the Company’s reportable segments, as well as overall executive, administrative and support functions. Share-based payments are recorded in corporate expense. During the first quarter of 2016, the Company revised its segment reporting as discussed in Note 1. The following table presents the Company's reportable segment results for the three and nine months ended September 30, 2016 and 2015:
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CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS |
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Sep. 30, 2016 | |
Related Party Transactions [Abstract] | |
CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS | CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS The Company is a party to a management agreement with certain affiliates of the Sponsors and certain other parties pursuant to which such affiliates of the Sponsors will provide management and financial advisory services until 2018. These agreements require management fees to be paid to such affiliates of the Sponsors for such services at a rate not greater than $15.0 million per year, plus reimbursable expenses. For the three months ended September 30, 2016 and 2015, the Company recognized management fees and reimbursable expenses of $3.9 million and $3.9 million, respectively. For the nine months ended September 30, 2016 and 2015, the Company recognized management fees and reimbursable expenses of $11.5 million and $11.7 million, respectively. On July 15, 2016, Broader Media, LLC, an indirect wholly-owned subsidiary of the Company (“Broader Media”), repurchased from unaffiliated third parties approximately $285.0 million aggregate principal amount of iHeartCommunications’ 10.0% Senior Notes due 2018 (the “2018 Notes”) for an aggregate purchase price of approximately $165.3 million (the “Third Party Transaction”). On the same day, Broader Media repurchased an additional $98.0 million aggregate principal amount of the 2018 Notes from investment firms affiliated with David C. Abrams, a member of our Board of Directors for an aggregate purchase price of approximately $56.9 million (the “Abrams Transaction”). The Abrams Transaction was made at the same price and on terms substantially similar to those of the Third Party Transaction. In accordance with our related party transaction policy, the Abrams Transaction was approved by a majority of the disinterested directors on our Board. As a result of the Third Party Transaction and the Abrams Transaction, the Company recognized a gain on extinguishment of debt of $157.6 million. |
BASIS OF PRESENTATION (Policies) |
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Sep. 30, 2016 | |
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. Due to seasonality and other factors, the results for the interim periods may not be indicative of results for the full year. The financial statements contained herein should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s 2015 Annual Report on Form 10-K. 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 financial interest or is the primary beneficiary. Investments in companies in which the Company owns 20% to 50% of the voting common stock or otherwise 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. Certain prior-period amounts have been reclassified to conform to the 2016 presentation. |
New Accounting Pronouncements | New Accounting Pronouncements During the second quarter of 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements - Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern. This update provides U.S. GAAP guidance on management’s responsibility in evaluating whether there is substantial doubt about a company’s ability to continue as a going concern and about related footnote disclosures. For each reporting period, the Company will be required to evaluate whether there are conditions or events that raise substantial doubt about a company’s ability to continue as a going concern within one year from the date the financial statements are issued. The amendments in this update are effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. The Company is currently evaluating the impact of the provisions of this new standard on its consolidated financial statements. During the first quarter of 2015, the FASB issued ASU No. 2015-02, Consolidation (Topic 810), Amendments to the Consolidation Analysis. This new standard eliminates the deferral of FAS 167, which has allowed entities with interest in certain investment funds to follow the previous consolidation guidance in FIN 46(R) and makes other changes to both the variable interest model and the voting model. The standard is effective for annual periods, and for interim periods within those annual periods, beginning after December 15, 2015. The adoption of this guidance did not have a material effect on the Company’s consolidated financial statements. During the second quarter of 2015, the FASB issued ASU No. 2015-03, Interest-Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. This update simplifies the presentation of debt issuance costs as a deduction from the carrying value of the outstanding debt balance rather than showing the debt issuance costs as an asset. The standard is effective for annual periods, and for interim periods within those annual periods, beginning after December 15, 2015. The retrospective adoption of this guidance resulted in the reclassification of debt issuance costs of $148.0 million as of December 31, 2015, which are now reflected as “Long-term debt fees” in Note 3. During the third quarter of 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date. This update provides a one-year deferral of the effective date for ASU No. 2014-09, Revenue from Contracts with Customers. ASU No. 2014-09 provides guidance for the recognition, measurement and disclosure of revenue resulting from contracts with customers and will supersede virtually all of the current revenue recognition guidance under U.S. GAAP. The standard is effective for the first interim period within annual reporting periods beginning after December 15, 2017. The Company is currently evaluating the impact of the provisions of this new standard on its consolidated financial statements. During the third quarter of 2015, the FASB issued ASU No. 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments. This update eliminates the requirement for an acquirer in a business combination to account for measurement-period adjustments retrospectively. Instead, acquirers must recognize measurement-period adjustments during the period in which they determine the amounts, including the effect on earnings of any amounts they would have recorded in previous periods if the accounting had been completed at the acquisition date. The standard is effective for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. The adoption of this guidance did not have a material effect on the Company’s consolidated financial statements. During the first quarter of 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). The new leasing standard presents significant changes to the balance sheets of lessees. Lessor accounting is updated to align with certain changes in the lessee model and the new revenue recognition standard which was issued in the third quarter of 2015. The standard is effective for annual periods, and for interim periods within those annual periods, beginning after December 15, 2018. The Company is currently evaluating the impact of the provisions of this new standard on its consolidated financial statements. During the second quarter of 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation (Topic 718). This update changes the accounting for certain aspects of share-based payments to employees. Income tax effects of share-based payment awards will be recognized in the income statement with the vesting or settlement of the awards and the record keeping for additional paid-in capital pools will no longer be necessary. Additionally, companies can make a policy election to either estimate forfeitures or recognize them as they occur. The standard is effective for annual periods, and for interim periods within those annual periods, beginning after December 15, 2016. The Company is currently evaluating the impact of the provisions of this new standard on its consolidated financial statements. During the second quarter of 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326). The new standard changes the impairment model for most financial assets and certain other instruments. Entities will be required to use a model that will result in the earlier recognition of allowances for losses for trade and other receivables, held-to-maturity debt securities, loans and other instruments. For available-for-sale debt securities with unrealized losses, the losses will be recognized as allowances rather than as reductions in the amortized cost of the securities. For an SEC filer, the standard is effective for annual periods, and for interim periods within those annual periods, beginning after December 15, 2019. The Company is currently evaluating the impact of the provisions of this new standard on its consolidated financial statements. During the third quarter of 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230). The new standard addresses the classification of cash flows related to certain cash receipts and cash payments. Additionally, the standard clarifies how the predominance principle should be used when cash receipts and cash payments have aspects of more than one class of cash flows. First, an entity will apply the guidance in Topic 230 and other applicable topics. If there is no guidance for those cash receipts and cash payments, an entity will determine each separately identifiable source or use and classify the receipt or payment based on the nature of the cash flow. If a receipt or payment has aspects of more than one class of cash flows and cannot be separated, the classification will depend on the predominant source of use. The standard is effective for annual periods, and for interim periods within those annual periods, beginning after December 15, 2017. The Company is currently evaluating the impact of the provisions of this new standard on its consolidated financial statements. |
PROPERTY, PLANT AND EQUIPMENT, INTANGIBLE ASSETS AND GOODWILL (Tables) |
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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, 2016 and December 31, 2015, respectively:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of 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, 2016 and December 31, 2015, respectively:
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||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Future Amortization Expenses | 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 in each of the Company’s reportable segments:
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LONG-TERM DEBT (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Long-Term Debt | Long-term debt outstanding as of September 30, 2016 and December 31, 2015 consisted of the following:
|
INCOME TAXES (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Income Tax Expense | The Company’s income tax expense for the three and nine months ended September 30, 2016 and 2015, respectively, consisted of the following components:
|
SHAREHOLDERS' DEFICIT (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Changes in Shareholders' Deficit | The following table shows the changes in shareholders' deficit attributable to the Company and the noncontrolling interests of subsidiaries in which the Company has a majority, but not total, ownership interest:
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COMPUTATION OF LOSS PER SHARE | COMPUTATION OF LOSS PER SHARE
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SEGMENT DATA (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Reportable Segment Results | The following table presents the Company's reportable segment results for the three and nine months ended September 30, 2016 and 2015:
|
BASIS OF PRESENTATION (Detail) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Reclassification of debt issuance costs | $ 120,918 | $ 147,983 |
Accounting standards update 2015-03 | Long-term debt | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Reclassification of debt issuance costs | 148,000 | |
Accounting standards update 2015-03 | Other noncurrent assets | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Reclassification of debt issuance costs | $ (148,000) |
PROPERTY, PLANT AND EQUIPMENT, INTANGIBLE ASSETS AND GOODWILL - Schedule Of Property, Plant And Equipment (Detail) - USD ($) $ in Thousands |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 4,413,978 | $ 4,436,096 |
Less: accumulated depreciation | 2,375,124 | 2,223,540 |
Property, plant and equipment, net | 2,038,854 | 2,212,556 |
Land, buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | 595,511 | 603,234 |
Structures | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | 2,755,221 | 2,824,794 |
Towers, transmitters and studio equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | 349,260 | 347,877 |
Furniture and other equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | 618,302 | 591,149 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment | $ 95,684 | $ 69,042 |
PROPERTY, PLANT AND EQUIPMENT, INTANGIBLE ASSETS AND GOODWILL - Schedule Of Future Amortization Expenses (Detail) $ in Thousands |
Sep. 30, 2016
USD ($)
|
---|---|
Property, Plant and Equipment [Abstract] | |
2017 | $ 200,177 |
2018 | 130,076 |
2019 | 47,061 |
2020 | 39,208 |
2021 | $ 33,805 |
LONG-TERM DEBT - Additional Information - Narrative (Detail) - USD ($) $ in Billions |
Sep. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Debt Disclosure [Abstract] | ||
Weighted average interest rate | 8.50% | 8.50% |
Market value of debt | $ 16.5 | $ 15.2 |
LONG-TERM DEBT - Surety Bonds, Letters of Credit and Guarantees - Narrative (Detail) - USD ($) |
Oct. 04, 2016 |
Sep. 30, 2016 |
---|---|---|
Surety bond | ||
Guarantor Obligations [Line Items] | ||
Guarantees obligations | $ 60,900,000 | |
Commercial standby letters of credit | ||
Guarantor Obligations [Line Items] | ||
Guarantees obligations | 99,000,000 | |
Bank guarantee | ||
Guarantor Obligations [Line Items] | ||
Guarantees obligations | 59,900,000 | |
Bank guarantees backed by cash collateral | ||
Guarantor Obligations [Line Items] | ||
Guarantees obligations | $ 26,100,000 | |
Senior Notes Due 2021 | Subsequent Event | ||
Guarantor Obligations [Line Items] | ||
Increase of line of credit facility | $ 500,000,000.0 | |
Aggregate principal amount | 17,300,000,000 | |
Aggregate consent fee | $ 8,600,000 |
INCOME TAXES - Schedule Of Provision For Income Tax Benefit (Expense) (Detail) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Income Tax Disclosure [Abstract] | ||||
Current tax expense | $ (9,339) | $ (2,144) | $ (56,340) | $ (65,838) |
Deferred tax benefit (expense) | 3,726 | (697) | 14,097 | (15,685) |
Income tax expense | $ (5,613) | $ (2,841) | $ (42,243) | $ (81,523) |
INCOME TAXES - Narrative (Detail) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Income Tax Disclosure [Abstract] | ||||
Effective tax rate | (24.50%) | (1.30%) | (13.20%) | (14.40%) |
SHAREHOLDERS' DEFICIT - COMPUTATION OF LOSS PER SHARE (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
NUMERATOR: | ||||
Net loss attributable to the Company – common shares | $ (34,951) | $ (221,917) | $ (402,360) | $ (661,349) |
DENOMINATOR: | ||||
Weighted average common shares outstanding - basic | 84,650 | 84,350 | 84,510 | 84,236 |
Weighted average common shares outstanding - diluted | 84,650 | 84,350 | 84,510 | 84,236 |
Net loss attributable to the Company per common share: | ||||
Basic (in dollars per share) | $ (0.41) | $ (2.63) | $ (4.76) | $ (7.85) |
Diluted (in dollars per share) | $ (0.41) | $ (2.63) | $ (4.76) | $ (7.85) |
Outstanding equity awards excluded from computation of diluted earnings per share (in shares) | 8,000 | 7,300 | 8,000 | 7,300 |
OTHER INFORMATION - Other Comprehensive Income (Loss) (Narrative) (Detail) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Other Income and Expenses [Abstract] | ||||
Total (decrease) increase in deferred income tax liabilities of other adjustments to comprehensive loss | $ 0.1 | $ 0.0 | $ (0.7) | $ (0.6) |
OTHER INFORMATION - Barter and Trade (Narrative) (Detail) - USD ($) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2016 |
Sep. 30, 2015 |
Sep. 30, 2016 |
Sep. 30, 2015 |
|
Nonmonetary Transaction [Line Items] | ||||
Barter and trade revenues | $ 30,200,000 | $ 30,400,000 | $ 105,700,000 | $ 88,100,000 |
Barter and trade expenses | 22,500,000 | $ 30,600,000 | 80,000,000 | $ 84,900,000 |
Advertising exchanged for equity interests | ||||
Nonmonetary Transaction [Line Items] | ||||
Barter and trade revenues | 5,400,000 | 22,100,000 | ||
Barter and trade expenses | $ 0 | $ 0 |
OTHER INFORMATION - Investments (Narrative) (Detail) $ in Millions |
3 Months Ended |
---|---|
Sep. 30, 2016
USD ($)
| |
Investments, Debt and Equity Securities [Abstract] | |
Other than temporary losses on investments | $ 14.5 |
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