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REORGANIZATION ITEMS, NET
6 Months Ended
Jun. 30, 2018
Reorganizations [Abstract]  
REORGANIZATION ITEMS, NET
LIABILITIES SUBJECT TO COMPROMISE
As discussed in Note 1, "Basis of Presentation", since the Petition Date, the Company has been operating as debtor in possession under the jurisdiction of the Bankruptcy Court and in accordance with provisions of the Bankruptcy Code. On the accompanying Consolidated Balance Sheets, the caption “Liabilities subject to compromise” reflects the expected allowed amount of the pre-petition claims that are not fully secured and that have at least a possibility of not being repaid at the full claim amount. Liabilities subject to compromise at June 30, 2018 consisted of the following:
(In thousands)
June 30,
2018
Accounts payable
$
43,621

Accrued expenses
36,159

Deferred taxes
614,013

Other long-term liabilities
87,764

Accounts payable, accrued and other liabilities
781,557

Debt subject to compromise
15,149,210

Accrued interest on debt subject to compromise
540,862

Long-term debt and accrued interest
15,690,072

Total liabilities subject to compromise
$
16,471,629


Determination of the value at which liabilities will ultimately be settled cannot be made until the Bankruptcy Court approves the Plan of Reorganization. The Company will continue to evaluate the amount and classification of its pre-petition liabilities. Any additional liabilities that are subject to compromise will be recognized accordingly, and the aggregate amount of liabilities subject to compromise may change.
REORGANIZATION ITEMS, NET
Reorganization items incurred as a result of the Chapter 11 Cases are presented separately in the accompanying statements of operations for the three and six months ended June 30, 2018 and were as follows:
(In thousands)
Three Months Ended June 30, 2018
 
Six Months Ended June 30, 2018
Write-off of deferred long-term debt fees
$
12,409

 
$
67,079

Write-off of original issue discount on debt subject to compromise

 
131,100

Debtor-in-possession refinancing costs
10,546

 
10,546

Professional fees and other bankruptcy related costs
45,785

 
52,070

Reorganization items, net
$
68,740

 
$
260,795

Professional fees included in Reorganization items, net represent fees for post-petition expenses related to the Chapter 11 Cases. Write-off of deferred long-term debt fees and write-off of original issue discount are included in Reorganization items, net.
As of June 30, 2018, $50.1 million of Reorganization items, net were unpaid and accrued in Accounts Payable and Accrued Expenses in the accompanying Consolidated Balance Sheet. Reorganization items, net of $6.7 million relating to the Debtor-in-possession financing costs were netted against the $125.0 million proceeds received from issuance of the DIP Facility.
CONDENSED COMBINED DEBTOR-IN-POSSESSION FINANCIAL INFORMATION
The financial statements below represent the condensed combined financial statements of the Debtors. Effective January 1, 2018, the results of the Company’s Non-Filing Entities, which are comprised primarily of the Company's Americas outdoor and International outdoor segments, are not included in these condensed combined financial statements.
Intercompany transactions among the Debtors have been eliminated in the financial statements contained herein. Intercompany transactions among the Debtors and the Non-Filing Entities have not been eliminated in the Debtors’ financial statements.
Debtors' Balance Sheet
(In thousands)
June 30, 2018
 
(Unaudited)
CURRENT ASSETS
 
Cash and cash equivalents
$
57,370

Accounts receivable, net of allowance of $26,989
777,958

Intercompany receivable
2,329

Prepaid expenses
113,028

Other current assets
22,825

Total Current Assets
973,510

PROPERTY, PLANT AND EQUIPMENT
 
Property, plant and equipment, net
466,089

INTANGIBLE ASSETS AND GOODWILL
 
Indefinite-lived intangibles - licenses
2,442,784

Other intangibles, net
190,154

Goodwill
3,335,433

OTHER ASSETS
 
Other assets
49,050

Total Assets
$
7,457,020

CURRENT LIABILITIES
 

Accounts payable
$
44,342

Accrued expenses
236,453

Accrued interest
427

Deferred income
133,420

Current portion of long-term debt
125,000

Total Current Liabilities
539,642

Long-term debt

Other long-term liabilities
235,930

Liabilities subject to compromise1
17,503,352

EQUITY (DEFICIT)
 
Equity (Deficit)
(10,821,904
)
Total Liabilities and Equity (Deficit)
$
7,457,020

1 In connection with the cash management arrangements with CCOH, the Company maintains an intercompany revolving promissory note payable by the Company to CCOH (the "Intercompany Note"), which matures on May 15, 2019. Liabilities subject to compromise include the principal amount outstanding under the Intercompany Note, which totals $1,031.7 million as of June 30, 2018.
Debtors' Statements of Operations
(In thousands)
Three Months Ended June 30, 2018
 
Six Months Ended June 30, 2018
Revenue
$
881,638

 
$
1,648,645

Operating expenses:
 
 
 
Direct operating expenses (excludes depreciation and amortization)
262,290

 
501,751

Selling, general and administrative expenses (excludes depreciation and amortization)
321,293

 
664,244

Corporate expenses (excludes depreciation and amortization)
42,554

 
86,862

Depreciation and amortization
64,621

 
131,737

Other operating expense, net
(1,218
)
 
(4,450
)
Operating income
189,662

 
259,601

Interest expense, net1
10,977

 
353,541

Equity in loss of nonconsolidated affiliates
(31
)
 
(63
)
Gain on extinguishment of debt

 
5,667

Dividend income2
4

 
25,487

Other expense, net
(2,178
)
 
(22,238
)
Reorganization items, net
68,740

 
260,795

Income (loss) before income taxes
107,740

 
(345,882
)
Income tax benefit (expense)
(141,827
)
 
21,146

Net loss
$
(34,087
)
 
$
(324,736
)
1 Includes interest incurred during the three months ended June 30, 2018 in relation to the post-petition Intercompany Note and interest incurred during the six months ended June 30, 2018 in relation to the pre-petition and post-petition Intercompany Notes.
2 Consists of cash dividends received from Non-Debtor entities during the three and six months ended June 30, 2018.
Debtors' Statement of Cash Flows
(In thousands)
Six Months Ended June 30, 2018
 
Cash flows from operating activities:
 
Consolidated net loss
$
(324,736
)
Reconciling items:
 
Depreciation and amortization
131,737

Deferred taxes
(27,271
)
Provision for doubtful accounts
12,627

Amortization of deferred financing charges and note discounts, net
11,871

Non-cash Reorganization items, net
254,920

Share-based compensation
1,172

Loss on disposal of operating and other assets
2,143

Equity in loss of nonconsolidated affiliates
63

Gain on extinguishment of debt
(5,667
)
Barter and trade income
(2,606
)
Other reconciling items, net
(247
)
Changes in operating assets and liabilities, net of effects of acquisitions and dispositions:
 
Decrease in accounts receivable
55,042

Increase in prepaid expenses and other current assets
(13,890
)
Decrease in accrued expenses
(31,022
)
Increase in accounts payable
14,649

Increase in accrued interest
301,550

Increase in deferred income
11,362

Changes in other operating assets and liabilities
(4,501
)
Net cash provided by operating activities
387,196

Cash flows from investing activities:
 
Purchases of property, plant and equipment
(27,251
)
Proceeds from disposal of assets
831

Purchases of other operating assets
(305
)
Change in other, net
(63
)
Net cash used for investing activities
(26,788
)
Cash flows from financing activities:
 
Draws on credit facilities
143,332

Payments on credit facilities
(133,308
)
Payments on long-term debt
(358,028
)
Net transfers to related parties
(54,285
)
Change in other, net
(14
)
Net cash used for financing activities
(402,303
)
Effect of exchange rate changes on cash, cash equivalents and restricted cash

Net decrease in cash, cash equivalents and restricted cash
(41,895
)
Cash, cash equivalents and restricted cash at beginning of period
102,468

Cash, cash equivalents and restricted cash at end of period
$
60,573