Delaware
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88-0318078
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(State or other jurisdiction of incorporation or organization)
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(I.R.S. Employer Identification No.)
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4830 North Loop 1604 West,
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Suite 111
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San Antonio,
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Texas
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78249
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(210)
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547-8800
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(Address of principal executive offices, including zip code)
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(Registrant’s telephone number, including area code)
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Title of Each Class
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Trading Symbol(s)
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Name of Exchange on Which Registered
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Common Stock, $0.01 par value per share
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CCO
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New York Stock Exchange
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Page
Number
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PART I
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Item 1.
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Item 1A.
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Item 1B.
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Item 2.
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Item 3.
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Item 4.
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PART II
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Item 5.
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Item 6.
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Item 7.
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Item 7A.
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Item 8.
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Item 9.
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Item 9A.
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Item 9B.
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PART III
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Item 10.
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Item 11.
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Item 12.
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Item 13.
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Item 14.
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PART IV
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Item 15.
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Item 16.
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•
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print billboards, which are a recognizable medium for delivering big brand messages with broad reach;
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digital billboards, usually in high traffic commercial areas, which may display advertisements for multiple customers and can change messages throughout the course of a day;
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street furniture displays, the largest element of our international portfolio, which generally focus on urban city centers;
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transit displays, such as bus and rail displays, which provide high profile exposure throughout communities;
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airport displays, which target travelers with high “dwell times” and multiple exposures for high frequency campaigns; and
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spectaculars and wallscapes, which are high-profile, high-impact advertising structures erected in mass consumer locations, such as Times Square and Sunset Boulevard, designed to attract maximum attention.
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Growing the out-of-home medium. Our strategy is, first and foremost, to grow out-of-home's share of total media spend by leading the technology-driven transformation of the medium (as described further under "Technological leadership" below) and to grow our share of total out-of-home spending by leveraging our distinctive global asset base and operations in key markets with strong demographic strengths.
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Technological leadership. Technological advances continue to transform the out-of-home sector and drive growth in the medium overall. We seek to leverage our leadership position in technology and data in out-of-home to enhance out-of-home's core proposition through digital displays, making the medium even more flexible and creative to draw consumer interest; to make out-of-home advertisements even easier to plan and buy; and to provide customers with proof of campaign delivery and return on investment.
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Customer focus. We enable advertisers to engage with consumers through innovative advertising solutions that deliver results by putting our portfolio to work in smart and distinctive ways, including differentiating our products through innovation, sales and service. We seek to further develop our sales excellence by using sophisticated revenue management tools to optimize the yield of our asset base and our distinctive global presence to build relationships with key global advertisers across our portfolio, and we are focused on developing our networks of locations into compelling propositions by selling the audience attributes rather than the individual display.
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Opportunistic expansion. We intend to leverage our strong operational performance to optimize our capital structure post-Separation, pursue opportunities for acquisitions in a fragmented marketplace and exploit potential for portfolio expansion with acquisitions benefiting from our technology platform.
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Year Ended December 31,
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2019
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2018
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2017
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Billboards:
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Bulletins
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60
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%
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61
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%
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60
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%
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Posters
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11
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%
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11
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%
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11
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%
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Transit displays
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17
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%
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16
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%
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17
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%
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Street furniture displays
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4
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%
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4
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%
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4
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%
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Spectaculars/wallscapes
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4
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%
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4
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%
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4
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%
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Other(1)
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4
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%
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4
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%
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4
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%
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Total
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100
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%
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100
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%
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100
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%
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(1)
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Includes production revenue and other non-advertising revenue.
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•
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Bulletins. Bulletins vary in size, with the most common size being 14 feet high by 48 feet wide. Digital bulletins display static messages that resemble standard printed bulletins when viewed, but also allow advertisers to change messages throughout the course of a day and may display advertisements for multiple customers. Our digital displays are linked through centralized systems to instantaneously and simultaneously change advertising copy as needed. Because of their greater size, impact and high-frequency of advertising changes, we typically receive our highest rates for digital bulletins. Almost all of the advertising copy displayed on printed bulletins is computer printed on vinyl and transported to the bulletin where it is secured to the display surface. Bulletins generally are located along major expressways, primary commuting routes and main intersections that are highly visible and heavily trafficked. Our clients may contract for individual bulletins or a network of bulletins, meaning the clients’ advertisements are rotated among bulletins to increase the reach of the campaign. Our client contracts for bulletins, either printed or digital, generally have terms ranging from four weeks to one year.
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Posters. Printed posters can vary in size but are commonly approximately 11 feet high by 23 feet wide, and the printed junior posters are approximately 5 feet high by 11 feet wide. Digital posters are available in addition to the traditional poster-size and junior poster-size. Similar to digital bulletins, digital posters display static messages that resemble standard printed posters when viewed and are linked through centralized computer systems to instantaneously and simultaneously change messages throughout the course of a day. Advertising copy for printed posters is digitally printed on a single piece of polyethylene material that is then transported and secured to the poster surfaces. Posters generally are located in commercial areas on primary and secondary routes near point-of-purchase locations, facilitating advertising campaigns with greater demographic targeting than those displayed on bulletins. Our poster rates typically are less than our bulletin rates, and our client contracts for posters generally have terms ranging from four weeks to one year. Premiere displays, which consist of premiere panels and squares, are innovative hybrids between bulletins and posters that we developed to provide our clients with an alternative for their targeted marketing campaigns. The premiere displays use one or more poster panels, but with vinyl advertising stretched over the panels similar to bulletins. Our intent is to combine the creative impact of bulletins with the additional reach and frequency of posters.
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RADAR-View® is our campaign planning and visualization tool, which combines several data sources, including industry standard audience measurement and anonymized, privacy-compliant location data from tens of millions of mobile devices, enabling advertisers to optimize their campaigns to most efficiently reach specific audience segments;
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RADAR-Proof® is our attribution measurement tool, which uses anonymized and aggregated data to understand the behavior of groups of people after they've been exposed to specific campaign ads. The behavior of these "exposed audiences" is compared to a control group of people who have not seen the campaign ads, enabling us to demonstrate to advertisers the impact of their campaigns on a variety of business objectives, including product purchases, store visits, application downloads, TV tune-in, brand awareness, purchase intent and more;
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RADAR-Connect® amplifies out-of-home campaigns by re-targeting exposed audience groups with mobile ads, providing clients with a simple, easy to activate advertising solution that both extends reach and drives further impact of their out-of-home advertising campaigns; and
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RADAR-Sync® facilitates data integration by letting advertisers leverage the benefits of the RADAR tools using their preferred data, while also facilitating the ingestion of RADAR out-of-home campaign performance data into media agencies’ and advertisers’ own multi-touch attribution models, allowing the value of out-of-home to be understood as an integrated element of today's predominantly digital-led advertising and marketing programs.
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Year Ended December 31,
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2019
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2018
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2017
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Street furniture displays
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53%
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52%
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51%
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Billboards
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18%
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18%
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20%
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Transit displays
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10%
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11%
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10%
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Retail displays
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11%
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10%
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10%
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Other(1)
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8%
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9%
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9%
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Total
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100%
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100%
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100%
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(1)
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Includes advertising revenue from small displays and non-advertising revenue from sales of street furniture equipment, cleaning and maintenance services, operation of public bike programs and production revenue.
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Premium. Digital premium billboards allow advertisers to dynamically change messages throughout the course of a day to more effectively target and engage audiences in key locations and may display advertisements for multiple customers. Our electronic displays are linked through centralized computer systems to instantaneously and simultaneously change messages throughout the course of a day. Because of their greater size, impact, high frequency and 24-hour advertising changes, digital premium billboards typically deliver our highest rates. Almost all of the advertising copy displayed on printed premium billboards is digitally-printed and transported to the billboard where it is secured to the display surface. Premium billboards generally are located along major expressways, primary commuting routes and main intersections that are highly visible and heavily trafficked. Our clients may contract for individual billboards or a network of billboards.
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Classic. Digital and printed classic billboards are available in a variety of formats across our International markets. Similar to digital premium billboards, classic digital billboards are linked through centralized computer systems to instantaneously and simultaneously change messages throughout the course of a day. Advertising copy for printed classic billboards is digitally printed and then transported and secured to the poster surfaces. Classic billboards generally are located in commercial areas on primary and secondary routes near point-of-purchase locations, facilitating advertising campaigns with greater demographic targeting than those displayed on premium billboards. Classic billboards typically deliver lower rates than our premium billboards. Our intent is to combine the creative impact of premium billboards with the additional reach and frequency of classic billboards.
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Sales of street furniture equipment and cleaning and maintenance services. In several of our International markets, we sell equipment or provide cleaning and maintenance services as part of street furniture contracts with municipalities.
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Operation of public bike programs. We also have a public bicycle rental program which provides bicycles for rent to the general public in several municipalities. In exchange for operating these bike rental programs, we generally derive revenue from advertising rights to the bikes, bike stations, additional street furniture displays and/or a share of rental income from the local municipalities.
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CCH separated its ownership of the businesses that comprised the iHeartMedia radio businesses by (i) transferring assets and liabilities of the respective businesses pursuant to the Separation Agreement, dated as of March 27, 2019, as amended on April 24, 2019 (the “Separation Agreement”), by and among CCH, CCOH, iHeartMedia and iHeartCommunications; (ii) transferring its interest in all of its subsidiaries other than CCOH to iHeart Operations, Inc. (“iHeart Operations”), a newly formed corporation, in exchange for newly-issued common stock and preferred stock of iHeart Operations; (iii) selling iHeart Operations preferred stock to one or more third parties for cash and (iv) distributing the common stock of iHeart Operations and the proceeds of the sale of iHeart Operations preferred stock to iHeartCommunications (the "Radio Distribution"). Upon completion of the Separation, CCH had no material assets other than the stock of CCOH. Prior to the Separation, the historical financial statements of the Company consisted of the carve-out financial statements of the Outdoor Business (the assets that were primarily related to or primarily used or held for use in connection with the business of the Company or its subsidiaries) of CCH and excluded the radio businesses that had historically been owned by CCH and reported as part of iHeartMedia’s iHM segment prior to the Separation. CCH, which was a holding company prior to the Separation, had no independent assets or operations. Upon the Separation and the transactions related thereto, the Company’s only assets, liabilities and operations are those of the Outdoor Business.
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•
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Pursuant to the Agreement and Plan of Merger, dated as of March 27, 2019 (the “Merger Agreement”), by and between CCH and CCOH, the Merger was consummated, and CCOH merged with and into CCH, with CCH surviving the Merger, becoming the successor to CCOH and changing its name to Clear Channel Outdoor Holdings, Inc. Prior to the Merger, the 315 million shares of Class B common stock of CCOH that was held by CCH were converted into shares of Class A common stock of CCOH. At the effective time of the Merger, each share of Class A common stock of CCOH (other than shares held by CCH or any direct or indirect wholly-owned subsidiary of CCH) converted into an equal number of shares of common stock, par value $0.01 per share, of the Company (the “Common Stock”). The 325.7 million shares of Class A common stock of CCOH held by CCH were canceled and retired, and no shares of Common Stock were exchanged for such shares. The shares of CCH's common stock outstanding immediately before the Merger, all held by iHeartCommunications, converted into 325.7 million shares of Common Stock, equal to the number of shares of Class A common stock of CCOH held by CCH immediately before the Merger. As a result, immediately after the Merger, the Company had a single class of common stock, the pre-Merger CCOH Class A common stockholders (other than the Company and its subsidiaries) owned the same percentage of the Company that they owned of CCOH immediately before the Merger (approximately 10.9%), and all of the remaining 325.7 million outstanding shares of Common Stock were held directly by iHeartCommunications. On the Effective Date, following the Merger, the Common Stock held by iHeartCommunications was transferred to certain holders of claims in the iHeart Chapter 11 Cases pursuant to the iHeartMedia Plan of Reorganization.
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We may expend substantial cost and managerial time and effort to prepare bids and proposals for contracts that we may not win;
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We may be unable to estimate accurately the revenue derived from and the resources and cost structure that will be required to service any contract we win or anticipate changes in the operating environment on which our financial proposal was based; and
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We may encounter expenses and delays if our competitors challenge awards of contracts to us in competitive bidding, and any such challenge could result in the resubmission of bids on modified specifications or in the termination, reduction or modification of the awarded contract.
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Unfavorable fluctuations in operating costs, which we may be unwilling or unable to pass through to our customers;
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Global economic conditions, such as the economic uncertainty in China;
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Our inability to successfully adopt or our being late in adopting technological changes and innovations that offer more attractive advertising alternatives than what we offer, which could result in a loss of advertising customers or lower advertising rates, which could have a material adverse effect on our operating results and financial performance;
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Unfavorable shifts in population and other demographics, which may cause us to lose advertising customers as people migrate to markets where we have a smaller presence or which may cause advertisers to be willing to pay less in advertising fees if the general population shifts into a less desirable age or geographical demographic from an advertising perspective;
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Adverse political effects and acts or threats of terrorism or military conflicts; and
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Unfavorable changes in labor conditions, which may impair our ability to operate or require us to spend more to retain and attract key employees.
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Our dispositions may negatively impact revenues from our national, regional and other sales networks;
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Our dispositions may make it difficult to generate cash flows from operations sufficient to meet our anticipated cash requirements, including our debt service requirements;
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Our acquisitions may prove unprofitable and fail to generate anticipated cash flows;
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To successfully manage our large portfolio of outdoor advertising and other businesses, we may need to:
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▪
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Recruit additional senior management as we cannot be assured that senior management of acquired businesses will continue to work for us, and we cannot be certain that our recruiting efforts will succeed, and
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▪
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Expand corporate infrastructure to facilitate the integration of our operations with those of acquired businesses because failure to do so may cause us to lose the benefits of any expansion that we decide to undertake by leading to disruptions in our ongoing businesses or by distracting our management;
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We may enter into markets and geographic areas where we have limited or no experience;
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We may encounter difficulties in the integration of operations and systems; and
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Our management’s attention may be diverted from other business concerns.
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There is a U.S. federal and state requirement that an owner remove any non-grandfathered, non-compliant signs along the controlled roads at the owner’s expense and without compensation, and in some instances we have had to remove billboards as a result of such reviews.
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Certain zoning ordinances provide for amortization, which is the required removal of legal non-conforming billboards (billboards which conformed with applicable laws and regulations when built, but which do not conform to current laws and regulations) or the commercial advertising placed on such billboards after a period of years. Pursuant to this concept, the governmental body asserts that just compensation is earned by continued operation of the billboard over that period of time. Although amortization is prohibited along all controlled roads, amortization has been upheld along non-controlled roads in limited instances where permitted by state and local law. Other regulations limit our ability to rebuild, replace, relocate, repair, modify, maintain and upgrade non-conforming displays.
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In the past, state governments have purchased and removed existing lawful billboards for beautification purposes using federal funding for transportation enhancement programs, and these jurisdictions may continue to do so in the future. Thus far, we have been able to obtain satisfactory compensation for, or relocation of, our billboards purchased or removed as a result of these types of governmental action, but there is no assurance that this will continue to be the case in the future.
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Potential adverse changes in the diplomatic relations of foreign countries with the U.S.;
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New or increased tariffs or unfavorable changes in trade policy;
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Hostility from local populations;
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The adverse effect of foreign exchange controls;
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Government policies against businesses owned by foreigners;
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Investment restrictions or requirements;
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Expropriations of property without adequate compensation;
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The potential instability of foreign governments;
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The risk of insurrections;
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Risks of renegotiation or modification of existing agreements with governmental authorities;
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Difficulties collecting receivables and otherwise enforcing contracts with governmental agencies and others in some foreign legal systems;
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Withholding and other taxes on remittances and other payments by subsidiaries;
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Changes in tax structure and level; and
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Changes in laws or regulations or the interpretation or application of laws or regulations.
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Our limited history operating as an independent public company;
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Our quarterly or annual earnings of those or other companies in our industry;
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Changes in accounting standards, policies, guidance, interpretations, or principles;
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Changes in financial estimates by any securities analysts who follow our common stock, our failure to meet these estimates, or failure of those analysts to initiate or maintain coverage of our common stock;
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Downgrades by any securities analysts who follow our common stock;
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Future sales of our common stock by our officers, directors and significant stockholders, including stockholders that were former creditors of iHeartMedia that received their common stock at the time of Separation in connection with iHeartMedia's Chapter 11 proceedings;
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Market conditions or trends in our industry or the economy as a whole and, in particular, the advertising industry;
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Investors' perceptions of our prospects;
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Announcements by us of significant contracts, acquisitions, joint ventures or capital commitments; and
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Changes in key personnel.
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For the first three years following the Separation, our board of directors will be divided into three equal classes, with members of each class elected in different years for different terms, making it impossible for stockholders to change the composition of our entire board of directors in any given year;
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•
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Action by stockholders may only be taken at an annual or special meeting duly called by or at the direction of a majority of our board of directors;
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Advance notice for all stockholder proposals is required;
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Except as otherwise provided by a certificate of designations, any director or the entire board of directors may be removed from office as provided by Section 141(k) of the Delaware General Corporation Law (the "DGCL"); and
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Except as required by law, for the first three years following the Separation, any amendment, alteration, rescission or repeal of our certificate of incorporation requires the affirmative vote of at least 66 2/3% of the total voting power of all outstanding shares of capital stock entitled to vote thereon, voting together as a single class.
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•
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Requiring us to dedicate a substantial portion of our cash flow to the payment of principal and interest on our indebtedness, thereby reducing cash available for other purposes, including to fund operations and capital expenditures, invest in new technology and pursue other business opportunities;
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Limiting our liquidity and operational flexibility and limiting our ability to obtain additional financing for working capital, capital expenditures, debt service requirements, acquisitions and general corporate or other purposes;
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Limiting our ability to adjust to changing economic, business and competitive conditions;
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Requiring us to defer planned capital expenditures, reduce discretionary spending, sell assets, restructure existing indebtedness or defer acquisitions or other strategic opportunities;
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Limiting our ability to refinance any of the indebtedness or increasing the cost of any such financing;
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Making us more vulnerable to an increase in interest rates, a downturn in our operating performance, a decline in general economic or industry conditions, or a disruption in the credit markets; and
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Making us more susceptible to negative changes in credit ratings, which could impact our ability to obtain financing in the future and increase the cost of such financing.
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Incur or guarantee additional debt or issue certain preferred stock;
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Pay dividends, redeem or purchase capital stock or make other restricted payments;
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Redeem, repurchase or retire our subordinated debt;
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Make certain investments;
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Create liens on our or our restricted subsidiaries' assets to secure debt;
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Create restrictions on the payment of dividends or other amounts to us from our restricted subsidiaries that are not guarantors of the notes;
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Enter into transactions with affiliates;
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Merge or consolidate with another company, or sell or otherwise dispose of all or substantially all of our assets;
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Sell certain assets, including capital stock of our subsidiaries;
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Alter the business that we conduct; and
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Designate our subsidiaries as unrestricted subsidiaries.
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risks associated with weak or uncertain global economic conditions and their impact on the level of expenditures on advertising, including the effects of Brexit and economic uncertainty in China;
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our ability to service our debt obligations and to fund our operations and capital expenditures;
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industry conditions, including competition;
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our ability to obtain key municipal concessions for our street furniture and transit products;
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•
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fluctuations in operating costs;
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technological changes and innovations;
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shifts in population and other demographics;
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other general economic and political conditions in the U.S. 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;
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changes in labor conditions and management;
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the impact of future dispositions, acquisitions and other strategic transactions;
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•
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legislative or regulatory requirements;
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regulations and consumer concerns regarding privacy and data protection;
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•
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a breach of our information security measures;
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•
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restrictions on outdoor advertising of certain products;
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fluctuations in exchange rates and currency values;
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•
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risks of doing business in foreign countries;
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•
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the impact of coronavirus on our operations;
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third-party claims of intellectual property infringement, misappropriation or other violation against us;
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•
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the risk that the Separation could result in significant tax liability or other unfavorable tax consequences to us and impair our ability to utilize our federal income tax net operating loss carryforwards in future years;
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•
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the risk that we may be more susceptible to adverse events following the Separation;
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•
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the risk that we may be unable to replace the services iHeartCommunications provided us in a timely manner or on comparable terms;
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•
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our dependence on our management team and other key individuals;
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•
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the risk that indemnities from iHeartMedia will not be sufficient to insure us against the full amount of certain liabilities;
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•
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volatility of our stock price;
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•
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the impact of our substantial indebtedness, including the effect of our leverage on our financial position and earnings;
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•
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the ability of our subsidiaries to dividend or distribute funds to us in order for us to repay our debts;
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•
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the restrictions contained in the agreements governing our indebtedness and our Preferred Stock limiting our flexibility in operating our business;
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•
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the effect of analyst or credit ratings downgrades; and
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•
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certain other factors set forth in our other filings with the SEC.
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Name
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Age
|
|
Title
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C. William Eccleshare
|
|
64
|
|
Chief Executive Officer-Worldwide and President
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Brian D. Coleman
|
|
54
|
|
Chief Financial Officer
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Scott R. Wells
|
|
51
|
|
Executive Vice President and Chief Executive Officer of the Americas Division
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Lynn A. Feldman
|
|
51
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|
Executive Vice President, General Counsel and Secretary
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Jason A. Dilger
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46
|
|
Chief Accounting Officer
|
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
|
||||||
October 1 through October 31
|
|
635
|
|
|
$
|
2.38
|
|
|
—
|
|
|
$
|
—
|
|
November 1 through November 30
|
|
—
|
|
|
|
|
—
|
|
|
—
|
|
|||
December 1 through December 31
|
|
—
|
|
|
|
|
—
|
|
|
—
|
|
|||
Total
|
|
635
|
|
|
$
|
2.38
|
|
|
—
|
|
|
$
|
—
|
|
(1)
|
The shares indicated consist of shares of our common stock tendered by employees to us during the three months ended December 31, 2019 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.
|
•
|
The calculation of cumulative total returns for the Company is calculated based on the share price of the common stock traded under the symbol, "CCO."
|
•
|
The Outdoor Index, which provides a peer comparison for our Outdoor business, consists of Lamar Advertising Company and Outfront Media, Inc., which both operate as real estate investment trusts ("REITs").
|
(In thousands, except per share data)
|
Years Ended December 31,
|
||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
Results of Operations Data:
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenue
|
$
|
2,683,810
|
|
|
$
|
2,721,705
|
|
|
$
|
2,588,702
|
|
|
$
|
2,679,822
|
|
|
$
|
2,806,204
|
|
Operating income
|
$
|
252,902
|
|
|
$
|
251,803
|
|
|
$
|
232,285
|
|
|
$
|
631,936
|
|
|
$
|
273,608
|
|
Net income (loss) attributable to the Company
|
$
|
(363,304
|
)
|
|
$
|
(218,240
|
)
|
|
$
|
(644,348
|
)
|
|
$
|
135,070
|
|
|
$
|
(83,344
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income (loss) attributable to the Company per common share:
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
$
|
(0.88
|
)
|
|
$
|
(0.60
|
)
|
|
$
|
(1.78
|
)
|
|
$
|
0.37
|
|
|
$
|
(0.23
|
)
|
Diluted
|
$
|
(0.88
|
)
|
|
$
|
(0.60
|
)
|
|
$
|
(1.78
|
)
|
|
$
|
0.37
|
|
|
$
|
(0.23
|
)
|
(In thousands)
|
As of December 31,
|
||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
Balance Sheet Data:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
398,858
|
|
|
$
|
182,456
|
|
|
$
|
144,119
|
|
|
$
|
531,537
|
|
|
$
|
401,930
|
|
Total current assets
|
$
|
1,201,891
|
|
|
$
|
1,015,800
|
|
|
$
|
974,172
|
|
|
$
|
1,330,977
|
|
|
$
|
1,556,884
|
|
Property, plant and equipment, net
|
$
|
1,211,154
|
|
|
$
|
1,288,938
|
|
|
$
|
1,395,029
|
|
|
$
|
1,412,833
|
|
|
$
|
1,627,986
|
|
Total assets
|
$
|
6,393,288
|
|
|
$
|
4,522,028
|
|
|
$
|
4,670,782
|
|
|
$
|
5,708,370
|
|
|
$
|
6,295,975
|
|
Current liabilities (excluding current portion of long-term debt)
|
$
|
1,160,230
|
|
|
$
|
729,589
|
|
|
$
|
656,939
|
|
|
$
|
634,747
|
|
|
$
|
916,303
|
|
Long-term debt (including current portion of long-term debt)
|
$
|
5,084,018
|
|
|
$
|
5,277,335
|
|
|
$
|
5,266,726
|
|
|
$
|
5,116,991
|
|
|
$
|
5,110,823
|
|
Mandatorily-redeemable preferred stock
|
$
|
44,912
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Stockholders’ deficit
|
$
|
(2,054,706
|
)
|
|
$
|
(2,101,652
|
)
|
|
$
|
(1,858,294
|
)
|
|
$
|
(947,312
|
)
|
|
$
|
(578,637
|
)
|
•
|
Overview – Discussion of the nature, key developments and trends of our business in order to provide context for the remainder of the MD&A.
|
•
|
Results of Operations – An analysis of our financial results of operations at the consolidated and segment levels.
|
•
|
Liquidity and Capital Resources – Discussion of our cash flows, anticipated cash requirements and financial condition, sources and uses of capital and liquidity, and contractual obligations.
|
•
|
Critical Accounting Estimates – Discussion of accounting estimates that we believe are most important to understanding the assumptions and judgments incorporated in our consolidated financial statements.
|
•
|
CCOH merged with and into CCH, with CCH surviving the Merger, becoming the successor to CCOH and changing its name to Clear Channel Outdoor Holdings, Inc.;
|
•
|
Any agreements or licenses requiring royalty payments to the iHeart Group by the Outdoor Group for trademarks or other intellectual property terminated effective as of December 31, 2018, and the set-off value of any royalties and IP license fees owed by the Company to iHeartCommunications were waived;
|
•
|
We received the Clear Channel tradename and other trademarks;
|
•
|
Certain intercompany notes and intercompany accounts among the Outdoor Group and the iHeart Group were settled, terminated and canceled, including the Due from iHeartCommunications Note and the post-petition intercompany balance outstanding;
|
•
|
The Intercompany Agreements with iHeartCommunications were terminated;
|
•
|
We entered into a Transition Service Agreement with the iHeart Group for one year from May 1, 2019 (subject to certain rights of the Company to extend up to one additional year), which we may terminate, in whole or in part, upon 30 days’ prior written notice; and
|
•
|
We issued $45.0 million of mandatorily-redeemable preferred stock (the "Preferred Stock").
|
•
|
Our site lease expenses include lease payments for use of the land under our displays, as well as any revenue-sharing arrangements or minimum guaranteed amounts payable under our billboard, street furniture and transit display contracts. The terms of our site leases and revenue-sharing or minimum guaranteed contracts generally range from 1 to 20 years.
|
•
|
Our direct production, maintenance and installation expenses include costs for printing, transporting and changing the advertising copy on our displays; related labor costs; vinyl costs, which vary according to the complexity of the advertising copy and the quantity of displays; electricity costs and costs cleaning and maintaining our displays.
|
•
|
During the year ended December 31, 2019, consolidated revenue decreased $37.9 million, or 1.4%, compared to 2018. However, excluding the $70.8 million impact of movements in foreign exchange rates, consolidated revenue increased $32.9 million, or 1.2%. This increase was driven by revenue growth in our America business, partially offset by a revenue decline in our International business primarily driven by lower revenues in China. Refer to the "Results of Operations" discussion below for additional details.
|
•
|
In 2019, we continued to focus on our strategic plan, including building our digital network, expanding our programmatic offerings and enhancing our data analytics, including RADAR.
|
•
|
We accessed the capital markets several times during 2019, including:
|
◦
|
In February, Clear Channel Worldwide Holdings, Inc. ("CCWH") issued $2,235.0 million of new 9.25% Senior Notes due 2024 (which ceased to be subordinated indebtedness following the August refinancing transactions described below) (the "New CCWH Senior Notes"), in connection with the refinancing of the 7.625% CCWH Series A and Series B Senior Subordinated Notes Due 2020 (the "CCWH Subordinated Notes");
|
◦
|
In May, the Company issued and sold 45,000 shares of Preferred Stock, for a cash purchase price (before fees and expenses) and initial liquidation preference of $45.0 million;
|
◦
|
In July, the Company issued 100 million shares of common stock in a public offering and, in August used the net proceeds to redeem approximately $333.5 million aggregate principal amount of the New CCWH Senior Notes; and
|
◦
|
In August, the Company issued $1,250.0 million of new 5.125% Senior Secured Notes due 2027 (the "CCOH Senior Secured Notes") and entered into new senior secured credit facilities (the "New Senior Secured Credit Facility"), consisting of a $2,000.0 million seven-year term loan facility (the "Term Loan Facility") and a $175.0 million revolving credit facility (the "New Revolving Credit Facility"). Proceeds were used to redeem the 6.5% Series A and Series B Senior Notes due 2022 (the "CCWH Senior Notes") and the 8.75% Senior Notes due 2020 (the "CCIBV Senior Notes"). Additionally, the Company terminated its existing receivables-based credit facility and entered into a new $125.0 million receivables-based credit facility.
|
◦
|
Refer to the "Liquidity and Capital Resources" discussion below for additional details.
|
(In thousands)
|
Years Ended December 31,
|
|
%
|
||||||
|
2019
|
|
2018
|
|
Change
|
||||
Revenue
|
$
|
2,683,810
|
|
|
$
|
2,721,705
|
|
|
(1.4)%
|
Operating expenses:
|
|
|
|
|
|
||||
Direct operating expenses (excludes depreciation and amortization)
|
1,452,177
|
|
|
1,470,668
|
|
|
(1.3)%
|
||
Selling, general and administrative expenses (excludes depreciation and amortization)
|
520,928
|
|
|
522,918
|
|
|
(0.4)%
|
||
Corporate expenses (excludes depreciation and amortization)
|
144,341
|
|
|
152,090
|
|
|
(5.1)%
|
||
Depreciation and amortization
|
309,324
|
|
|
318,952
|
|
|
(3.0)%
|
||
Impairment charges
|
5,300
|
|
|
7,772
|
|
|
(31.8)%
|
||
Other operating income, net
|
1,162
|
|
|
2,498
|
|
|
(53.5)%
|
||
Operating income
|
252,902
|
|
|
251,803
|
|
|
0.4%
|
||
Interest expense, net
|
418,184
|
|
|
388,133
|
|
|
|
||
Interest income (expense) on Due from (to) iHeartCommunications
|
(1,334
|
)
|
|
393
|
|
|
|
||
Loss on Due from iHeartCommunications
|
(5,778
|
)
|
|
—
|
|
|
|
||
Loss on extinguishment of debt
|
(101,745
|
)
|
|
—
|
|
|
|
||
Other expense, net
|
(15,384
|
)
|
|
(34,393
|
)
|
|
|
||
Loss before income taxes
|
(289,523
|
)
|
|
(170,330
|
)
|
|
|
||
Income tax expense
|
(72,254
|
)
|
|
(32,515
|
)
|
|
|
||
Consolidated net loss
|
(361,777
|
)
|
|
(202,845
|
)
|
|
|
||
Less amount attributable to noncontrolling interest
|
1,527
|
|
|
15,395
|
|
|
|
||
Net loss attributable to the Company
|
$
|
(363,304
|
)
|
|
$
|
(218,240
|
)
|
|
|
(In thousands)
|
Years Ended December 31,
|
|
%
|
||||||
|
2019
|
|
2018
|
|
Change
|
||||
Revenue
|
$
|
1,273,018
|
|
|
$
|
1,189,348
|
|
|
7.0%
|
Direct operating expenses
|
547,413
|
|
|
524,659
|
|
|
4.3%
|
||
SG&A expenses
|
218,369
|
|
|
199,688
|
|
|
9.4%
|
||
Depreciation and amortization
|
160,386
|
|
|
166,806
|
|
|
(3.8)%
|
||
Operating income
|
$
|
346,850
|
|
|
$
|
298,195
|
|
|
16.3%
|
(In thousands)
|
Years Ended December 31,
|
|
%
|
||||||
|
2019
|
|
2018
|
|
Change
|
||||
Revenue
|
$
|
1,410,792
|
|
|
$
|
1,532,357
|
|
|
(7.9)%
|
Direct operating expenses
|
904,764
|
|
|
946,009
|
|
|
(4.4)%
|
||
SG&A expenses
|
302,559
|
|
|
323,230
|
|
|
(6.4)%
|
||
Depreciation and amortization
|
138,651
|
|
|
148,199
|
|
|
(6.4)%
|
||
Operating income
|
$
|
64,818
|
|
|
$
|
114,919
|
|
|
(43.6)%
|
(In thousands)
|
Years Ended December 31,
|
||||||
|
2019
|
|
2018
|
||||
Operating income (loss):
|
|
|
|
||||
Americas
|
$
|
346,850
|
|
|
298,195
|
|
|
International
|
64,818
|
|
|
114,919
|
|
||
Corporate(1)
|
(154,628
|
)
|
|
(156,037
|
)
|
||
Impairment charges
|
(5,300
|
)
|
|
(7,772
|
)
|
||
Other operating income, net
|
1,162
|
|
|
2,498
|
|
||
Consolidated operating income
|
$
|
252,902
|
|
|
$
|
251,803
|
|
(1)
|
Corporate is calculated as the sum of corporate expenses, including non-cash compensation expenses, and corporate depreciation and amortization. Corporate expenses relate to overall executive, administrative and support functions.
|
(In thousands)
|
Years Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Net cash provided by (used for):
|
|
|
|
|
|
||||||
Operating activities
|
$
|
214,526
|
|
|
$
|
187,275
|
|
|
$
|
160,118
|
|
Investing activities
|
$
|
(220,042
|
)
|
|
$
|
(203,592
|
)
|
|
$
|
(154,522
|
)
|
Financing activities
|
$
|
220,009
|
|
|
$
|
40,686
|
|
|
$
|
(379,513
|
)
|
(In thousands)
|
Years Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Americas(1)
|
$
|
82,707
|
|
|
$
|
76,867
|
|
|
$
|
70,936
|
|
International(2)
|
135,982
|
|
|
129,962
|
|
|
150,036
|
|
|||
Corporate(3)
|
13,775
|
|
|
4,250
|
|
|
3,266
|
|
|||
Total capital expenditures
|
$
|
232,464
|
|
|
$
|
211,079
|
|
|
$
|
224,238
|
|
(1)
|
Capital expenditures in our Americas segment primarily related to constructing and sustaining our billboards and other out-of-home advertising displays, including digital boards.
|
(2)
|
Capital expenditures in our International segment primarily related to constructing and sustaining our street furniture and other out-of-home advertising displays, including digital boards.
|
(3)
|
Corporate capital expenditures in 2019 were largely driven by the build-out of the new San Antonio office and IT infrastructure due to the Separation, while Corporate capital expenditures in 2018 and 2017 primarily related to equipment and software purchases.
|
•
|
On February 12, 2019, we refinanced all of our outstanding $2,200.0 million aggregate principal amount of CCWH Subordinated Notes, which were scheduled to mature in March 2020, with $2,235.0 million aggregate principal amount of New CCWH Senior Notes, which are scheduled to mature in February 2024. The CCWH Subordinated Notes were redeemed on March 6, 2019, and CCWH and the guarantors of the CCWH Subordinated Notes were released from their remaining obligations under the indentures and the CCWH Subordinated Notes.
|
•
|
On July 30, 2019, we issued 100 million shares of common stock in a public offering and, on August 22, 2019, used the net proceeds therefrom to redeem approximately $333.5 million aggregate principal amount of the New CCWH Senior Notes.
|
•
|
On August 23, 2019, we refinanced all of our outstanding $2,725.0 million aggregate principal amount of CCWH Senior Notes, which were scheduled to mature in November 2022, and all of our outstanding $375.0 million aggregate principal amount of CCIBV Senior Notes, which were scheduled to mature in December 2020, with $1,250.0 million aggregate principal amount of CCOH Senior Secured Notes, which are scheduled to mature in August 2027, and a $2,000.0 million Term Loan Facility, which amortizes in equal quarterly installments in an aggregate annual amount equal to 1.00% of the original principal amount of such term loan beginning on December 31, 2019, with the balance being payable in August 2026. The CCWH Senior Notes and CCIBV Senior Notes were redeemed on September 4, 2019, and CCWH, CCIBV and the respective guarantors of these notes were released from their remaining obligations under the indentures governing such notes, which ceased to be of further effect.
|
•
|
On December 31, 2019, we made a principal payment of $5.0 million on the Term Loan Facility in accordance with the terms of the related credit agreement.
|
|
December 31,
|
||||||
(In thousands)
|
2019
|
|
2018
|
||||
Debt:
|
|
|
|
||||
Term Loan Facility
|
$
|
1,995,000
|
|
|
$
|
—
|
|
Clear Channel Outdoor Holdings 5.125% Senior Secured Notes Due 2027
|
1,250,000
|
|
|
—
|
|
||
Clear Channel Worldwide Holdings 9.25% Senior Notes Due 2024
|
1,901,525
|
|
|
—
|
|
||
Clear Channel Worldwide Holdings 6.5% Senior Notes Due 2022
|
—
|
|
|
2,725,000
|
|
||
Clear Channel Worldwide Holdings 7.625% Senior Subordinated Notes Due 2020
|
—
|
|
|
2,200,000
|
|
||
Clear Channel International B.V. 8.75% Senior Notes due 2020
|
—
|
|
|
375,000
|
|
||
Other debt(1)
|
4,161
|
|
|
3,882
|
|
||
Original issue discount
|
(9,561
|
)
|
|
(739
|
)
|
||
Long-term debt fees
|
(57,107
|
)
|
|
(25,808
|
)
|
||
Total debt
|
$
|
5,084,018
|
|
|
$
|
5,277,335
|
|
(1)
|
Other debt includes various borrowings and finance leases utilized for general operating purposes.
|
•
|
Dividends on the Preferred Stock accrue daily at a rate based on the then-current liquidation preference and are payable quarterly in cash or added to the liquidation preference. During the year ended December 31, 2019, we paid cash dividends of $2.8 million.
|
•
|
The Preferred Stock will be subject to mandatory redemption for an amount equal to the liquidation preference on May 1, 2029, unless waived by the holders, but we may redeem the Preferred Stock at our option before this date, subject to certain requirements. As of December 31, 2019, the liquidation preference of the Preferred Stock was approximately $46.1 million, which includes the initial liquidation preference and undeclared dividends.
|
(In thousands)
|
Payments due by Period
|
||||||||||||||||||
Contractual Obligations
|
Total
|
|
2020
|
|
2021-2022
|
|
2023-2024
|
|
Thereafter
|
||||||||||
Long-term debt(1):
|
|
|
|
|
|
|
|
|
|
||||||||||
Principal payments
|
$
|
5,150,686
|
|
|
$
|
20,294
|
|
|
$
|
40,727
|
|
|
$
|
1,942,403
|
|
|
$
|
3,147,262
|
|
Interest payments
|
1,999,632
|
|
|
347,156
|
|
|
693,902
|
|
|
601,593
|
|
|
356,981
|
|
|||||
Mandatorily-redeemable preferred stock(2)
|
46,100
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
46,100
|
|
|||||
Non-cancelable operating leases(3)
|
2,893,090
|
|
|
498,304
|
|
|
696,028
|
|
|
446,374
|
|
|
1,252,384
|
|
|||||
Non-cancelable contracts(4)
|
1,553,608
|
|
|
322,031
|
|
|
542,203
|
|
|
347,252
|
|
|
342,122
|
|
|||||
Capital expenditures(5)
|
78,648
|
|
|
48,680
|
|
|
20,706
|
|
|
5,712
|
|
|
3,550
|
|
|||||
Unrecognized tax benefits(6)
|
28,855
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
28,855
|
|
|||||
Other long-term obligations(7)
|
114,750
|
|
|
9,648
|
|
|
28,091
|
|
|
27,828
|
|
|
49,183
|
|
|||||
Total
|
$
|
11,865,369
|
|
|
$
|
1,246,113
|
|
|
$
|
2,021,657
|
|
|
$
|
3,371,162
|
|
|
$
|
5,226,437
|
|
(1)
|
Our long-term debt is primarily comprised of the Term Loan Facility, CCOH Senior Secured Notes and New CCWH Senior Notes, as previously described in this MD&A. It also includes small amounts of borrowings under finance leases utilized for general operating purposes. Refer to Note 6 to our Consolidated Financial Statements located in Item 8 of Part II of this Annual Report on Form 10-K for more details.
|
(2)
|
Our Preferred Stock will be subject to mandatory redemption on May 1, 2029, but we may redeem it at our option before this date, subject to certain requirements. As previously described in this MD&A, dividends accrue daily at a rate based on the then-current liquidation preference and are payable quarterly in cash or added to the liquidation preference; however, we have excluded them from this table as the amounts are unknown at this time. Refer to Note 7 to our Consolidated Financial Statements located in Item 8 of Part II of this Annual Report on Form 10-K for more details.
|
(3)
|
Operating lease obligations represent our future minimum rental commitments under non-cancelable operating lease agreements. Refer to Note 3 to our Consolidated Financial Statements located in Item 8 of Part II of this Annual Report on Form 10-K for more details.
|
(4)
|
Non-cancelable contracts include minimum payments under contracts that provide the supplier with a right to fulfill the arrangement with property, plant and equipment not specified within the contract and are therefore not a lease.
|
(5)
|
The Company has commitments relating to required purchases of property, plant, and equipment under certain street furniture contracts, and certain of the Company’s contracts contain penalties for not fulfilling its commitments related to its obligations to build bus stops, kiosks and other public amenities or advertising structures.
|
(6)
|
The non-current portion of the unrecognized tax benefits is included in the “Thereafter” column as we cannot reasonably estimate the timing or amounts of additional cash payments, if any, at this time. For additional information, refer to Note 10 to our Consolidated Financial Statements located in Item 8 of Part II of this Annual Report on Form 10-K.
|
(7)
|
Other long-term obligations consist of $43.8 million related to asset retirement obligations recorded pursuant to ASC Subtopic 410-20, which assumes the underlying assets will be removed at some period over the next 50 years. Also included in other long-term obligations is $48.2 million related to retirement plans and $80.8 million related to other long-term obligations with a specific maturity.
|
•
|
Industry revenue growth forecasts used for the initial four-year period, which varied by market, ranged between 2.5% and 3.8%;
|
•
|
Revenue growth beyond the initial four-year period was assumed to be 3.0%;
|
•
|
Revenue was grown over a build-up period, reaching maturity by the second year;
|
•
|
Operating margins gradually climb to the industry average margin (as high as 55.9%, depending on market size) by the third year; and
|
•
|
Discount rate was assumed to be 8.0%.
|
•
|
Expected cash flows underlying our business plans for the periods 2019 through 2023, which 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 2023 are projected to grow at a perpetual growth rate, which we estimated at 3.0%; and
|
•
|
In order to risk-adjust the cash flow projections in determining fair value, we utilized a discount rate of approximately 7.5% to 10.0% for each of our reporting units.
|
|
Page
Number
|
Financial Statements:
|
|
Notes to Consolidated Financial Statements:
|
|
|
|
Separation from iHeartMedia, Inc.
|
|
|
|
Description of the Matter
|
|
As more fully described in Notes 1 and 9 to the consolidated financial statements, on May 1, 2019, in conjunction with the emergence of iHeartMedia, Inc. (“iHeartMedia”) from bankruptcy proceedings under Chapter 11 of the United States Bankruptcy Code and pursuant to iHeartMedia’s Plan of Reorganization, the Company separated from, and ceased to be controlled by, iHeartMedia through a series of transactions (the “Separation”).
|
|
|
|
|
|
Auditing the Company’s accounting for the transactions in connection with the Company’s Separation from iHeartMedia including the basis of presentation and the assets and liabilities for the historical and post-Separation financial statements was complex and required significant judgments.
|
How We Addressed the Matter in Our Audit
|
|
We obtained an understanding, evaluated the design and tested the operating controls over the Company’s accounting for the Separation and the evaluation of the basis of presentation for the historical and successor financial statements. For example, we tested controls over management’s analysis of the Separation documents and management’s review of the accounting conclusions and recording of the related journal entries.
|
|
|
|
|
|
To test the accounting for the transactions related to the Separation and the basis of presentation, our audit procedures included, among others, inspecting the transaction related documents such as bankruptcy documents and separation agreements, inquiring of the Company’s management and its advisors involved in the transaction, and inspecting the correspondence with the Securities and Exchange Commission. We also tested that the assets and liabilities presented for the historical and post separation period were properly determined, calculated and presented. We also vouched the cash transactions and tested the journal entries recorded.
|
|
|
|
|
|
Valuation of Deferred Tax Assets
|
|
|
|
Description of the Matter
|
|
As described in Note 10 to the consolidated financial statements, at December 31, 2019, the Company had deferred tax assets related to deductible temporary differences and carryforwards of $515 million, net of a $293 million valuation allowance. Deferred tax assets are reduced by a valuation allowance if, based on the weight of all available evidence, in management’s judgment it is more likely than not that some portion, or all, of the deferred tax assets will not be realized.
|
|
|
|
|
|
Auditing the Company’s assessment of the realizability of its international deferred tax assets involved subjective estimation and complex auditor judgment. For certain jurisdictions, management considered projections of future income which is highly judgmental and based on significant assumptions that may be affected by future market or economic conditions.
|
|
|
|
How We Addressed the Matter in Our Audit
|
|
We obtained an understanding, evaluated the design and tested the operating effectiveness of internal controls that address the risks of material misstatement relating to the realizability of deferred tax assets. This included controls over management’s scheduling of the future reversal of existing taxable temporary differences, tax planning strategies and projections of future taxable income.
|
|
|
|
|
|
Among other audit procedures performed, we tested the Company's analysis of the reversal of existing temporary taxable differences, evaluated the assumptions used by the Company to develop projections of future taxable income by jurisdiction and tested the completeness and accuracy of the underlying data used in the projections. For example, we compared the projections of future income with the actual results of prior periods and with other forecasted financial information prepared by the Company. We also assessed the historical accuracy of management’s projections.
|
(In thousands, except share and per share data)
|
December 31,
|
|
December 31,
|
||||
|
2019
|
|
2018
|
||||
CURRENT ASSETS
|
|
|
|
||||
Cash and cash equivalents
|
$
|
398,858
|
|
|
$
|
182,456
|
|
Accounts receivable, net of allowance of $23,786 as of December 31, 2019 and $24,224 as of December 31, 2018
|
709,685
|
|
|
706,309
|
|
||
Prepaid expenses
|
60,593
|
|
|
95,734
|
|
||
Other current assets
|
32,755
|
|
|
31,301
|
|
||
Total Current Assets
|
1,201,891
|
|
|
1,015,800
|
|
||
PROPERTY, PLANT AND EQUIPMENT
|
|
|
|
||||
Structures, net
|
953,545
|
|
|
1,053,016
|
|
||
Other property, plant and equipment, net
|
257,609
|
|
|
235,922
|
|
||
INTANGIBLE ASSETS AND GOODWILL
|
|
|
|
||||
Indefinite-lived permits
|
965,863
|
|
|
971,163
|
|
||
Other intangible assets, net
|
326,665
|
|
|
252,862
|
|
||
Goodwill
|
704,158
|
|
|
706,003
|
|
||
OTHER ASSETS
|
|
|
|
||||
Operating lease right-of-use assets
|
1,885,482
|
|
|
—
|
|
||
Due from iHeartCommunications, net of allowance
|
—
|
|
|
154,758
|
|
||
Other assets
|
98,075
|
|
|
132,504
|
|
||
Total Assets
|
$
|
6,393,288
|
|
|
$
|
4,522,028
|
|
CURRENT LIABILITIES
|
|
|
|
||||
Accounts payable
|
$
|
94,588
|
|
|
$
|
113,714
|
|
Accrued expenses
|
503,939
|
|
|
528,482
|
|
||
Current operating lease liabilities
|
387,882
|
|
|
—
|
|
||
Deferred revenue
|
84,035
|
|
|
85,052
|
|
||
Accrued interest
|
89,786
|
|
|
2,341
|
|
||
Current portion of long-term debt
|
20,294
|
|
|
227
|
|
||
Total Current Liabilities
|
1,180,524
|
|
|
729,816
|
|
||
Long-term debt
|
5,063,724
|
|
|
5,277,108
|
|
||
Mandatorily-redeemable preferred stock
|
44,912
|
|
|
—
|
|
||
Non-current operating lease liabilities
|
1,559,743
|
|
|
—
|
|
||
Deferred tax liability
|
416,066
|
|
|
335,015
|
|
||
Due to iHeartCommunications
|
—
|
|
|
21,591
|
|
||
Other long-term liabilities
|
183,025
|
|
|
260,150
|
|
||
Total Liabilities
|
8,447,994
|
|
|
6,623,680
|
|
||
|
|
|
|
||||
Commitments and Contingencies (Note 8)
|
|
|
|
||||
|
|
|
|
||||
STOCKHOLDERS’ DEFICIT
|
|
|
|
||||
Noncontrolling interest
|
152,814
|
|
|
160,362
|
|
||
Class A common stock, par value $0.01 per share: 750,000,000 shares authorized and 51,559,633 shares issued as of December 31, 2018
|
—
|
|
|
516
|
|
||
Class B common stock, par value $0.01 per share: 600,000,000 shares authorized and 315,000,000 shares issued and outstanding as of December 31, 2018
|
—
|
|
|
3,150
|
|
||
Common stock, par value $0.01 per share: 2,350,000,000 shares authorized and 466,744,939 shares issued as of December 31, 2019
|
4,667
|
|
|
—
|
|
||
Additional paid-in capital
|
3,489,593
|
|
|
3,086,307
|
|
||
Accumulated deficit
|
(5,349,611
|
)
|
|
(5,000,920
|
)
|
||
Accumulated other comprehensive loss
|
(349,552
|
)
|
|
(344,489
|
)
|
||
Treasury stock (504,650 shares held as of December 31, 2019; 1,108,538 shares held as of December 31, 2018)
|
(2,617
|
)
|
|
(6,578
|
)
|
||
Total Stockholders’ Deficit
|
(2,054,706
|
)
|
|
(2,101,652
|
)
|
||
Total Liabilities and Stockholders’ Deficit
|
$
|
6,393,288
|
|
|
$
|
4,522,028
|
|
(In thousands, except per share data)
|
Years Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Revenue
|
$
|
2,683,810
|
|
|
$
|
2,721,705
|
|
|
$
|
2,588,702
|
|
Operating expenses:
|
|
|
|
|
|
||||||
Direct operating expenses (excludes depreciation and amortization)
|
1,452,177
|
|
|
1,470,668
|
|
|
1,409,767
|
|
|||
Selling, general and administrative expenses (excludes depreciation and amortization)
|
520,928
|
|
|
522,918
|
|
|
499,213
|
|
|||
Corporate expenses (excludes depreciation and amortization)
|
144,341
|
|
|
152,090
|
|
|
143,678
|
|
|||
Depreciation and amortization
|
309,324
|
|
|
318,952
|
|
|
325,991
|
|
|||
Impairment charges
|
5,300
|
|
|
7,772
|
|
|
4,159
|
|
|||
Other operating income, net
|
1,162
|
|
|
2,498
|
|
|
26,391
|
|
|||
Operating income
|
252,902
|
|
|
251,803
|
|
|
232,285
|
|
|||
Interest expense, net
|
418,184
|
|
|
388,133
|
|
|
379,701
|
|
|||
Interest income (expense) on Due from/to iHeartCommunications, net
|
(1,334
|
)
|
|
393
|
|
|
68,871
|
|
|||
Loss on Due from iHeartCommunications
|
(5,778
|
)
|
|
—
|
|
|
(855,648
|
)
|
|||
Loss on extinguishment of debt
|
(101,745
|
)
|
|
—
|
|
|
—
|
|
|||
Other income (expense), net
|
(15,384
|
)
|
|
(34,393
|
)
|
|
27,765
|
|
|||
Loss before income taxes
|
(289,523
|
)
|
|
(170,330
|
)
|
|
(906,428
|
)
|
|||
Income tax benefit (expense)
|
(72,254
|
)
|
|
(32,515
|
)
|
|
280,218
|
|
|||
Consolidated net loss
|
(361,777
|
)
|
|
(202,845
|
)
|
|
(626,210
|
)
|
|||
Less amount attributable to noncontrolling interest
|
1,527
|
|
|
15,395
|
|
|
18,138
|
|
|||
Net loss attributable to the Company
|
$
|
(363,304
|
)
|
|
$
|
(218,240
|
)
|
|
$
|
(644,348
|
)
|
|
|
|
|
|
|
||||||
Other comprehensive income (loss), net of tax:
|
|
|
|
|
|
||||||
Foreign currency translation adjustments
|
(4,802
|
)
|
|
(15,334
|
)
|
|
43,341
|
|
|||
Other adjustments to comprehensive income (loss)
|
(2,948
|
)
|
|
(1,498
|
)
|
|
6,306
|
|
|||
Reclassification adjustments
|
1,290
|
|
|
2,962
|
|
|
5,441
|
|
|||
Other comprehensive income (loss)
|
(6,460
|
)
|
|
(13,870
|
)
|
|
55,088
|
|
|||
Comprehensive loss
|
(369,764
|
)
|
|
(232,110
|
)
|
|
(589,260
|
)
|
|||
Less amount attributable to noncontrolling interest
|
(1,397
|
)
|
|
(8,040
|
)
|
|
8,949
|
|
|||
Comprehensive loss attributable to the Company
|
$
|
(368,367
|
)
|
|
$
|
(224,070
|
)
|
|
$
|
(598,209
|
)
|
|
|
|
|
|
|
||||||
Net loss attributable to the Company per share of common stock:
|
|
|
|
|
|
||||||
Basic
|
$
|
(0.88
|
)
|
|
$
|
(0.60
|
)
|
|
$
|
(1.78
|
)
|
Weighted average common shares outstanding – Basic
|
413,087
|
|
|
361,740
|
|
|
361,141
|
|
|||
Diluted
|
$
|
(0.88
|
)
|
|
$
|
(0.60
|
)
|
|
$
|
(1.78
|
)
|
Weighted average common shares outstanding – Diluted
|
413,087
|
|
|
361,740
|
|
|
361,141
|
|
(In thousands, except share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
|
Pre-Separation
|
|
Post-Separation
|
|
|
|
Controlling Interest
|
|
|
|||||||||||||||||||||||||||
|
Class A
Common
Shares
Issued
|
|
Class B Common Shares
Issued
|
|
Common Shares Issued
|
|
Non-controlling
Interest
|
|
Common
Stock
|
|
Additional Paid-in
Capital
|
|
Accumulated
Deficit
|
|
Accumulated Other Comprehensive
Loss
|
|
Treasury Stock
|
|
Total
|
|||||||||||||||||
Balances at
December 31, 2016 |
47,947,123
|
|
|
315,000,000
|
|
|
|
|
$
|
144,174
|
|
|
$
|
3,629
|
|
|
$
|
3,432,121
|
|
|
$
|
(4,136,897
|
)
|
|
$
|
(386,233
|
)
|
|
$
|
(4,106
|
)
|
|
$
|
(947,312
|
)
|
|
Net income (loss)
|
|
|
|
|
|
|
|
|
18,138
|
|
|
—
|
|
|
—
|
|
|
(644,348
|
)
|
|
—
|
|
|
—
|
|
|
(626,210
|
)
|
||||||||
Exercise of stock options and release of stock awards
|
2,008,177
|
|
|
|
|
|
|
|
—
|
|
|
21
|
|
|
198
|
|
|
—
|
|
|
—
|
|
|
(1,687
|
)
|
|
(1,468
|
)
|
||||||||
Share-based compensation
|
|
|
|
|
|
|
|
|
931
|
|
|
—
|
|
|
8,659
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9,590
|
|
||||||||
Disposal of noncontrolling interest
|
|
|
|
|
|
|
(2,439
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,439
|
)
|
||||||||||
Payments to noncontrolling interests
|
|
|
|
|
|
|
|
|
(12,010
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(12,010
|
)
|
||||||||
Dividends declared ($0.9171/share)
|
|
|
|
|
|
|
|
|
—
|
|
|
—
|
|
|
(332,498
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(332,498
|
)
|
||||||||
Other comprehensive income
|
|
|
|
|
|
|
8,949
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
46,139
|
|
|
—
|
|
|
55,088
|
|
||||||||||
Other
|
|
|
|
|
|
|
(703
|
)
|
|
—
|
|
|
(332
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,035
|
)
|
||||||||||
Balances at
December 31, 2017 |
49,955,300
|
|
|
315,000,000
|
|
|
|
|
$
|
157,040
|
|
|
$
|
3,650
|
|
|
$
|
3,108,148
|
|
|
$
|
(4,781,245
|
)
|
|
$
|
(340,094
|
)
|
|
$
|
(5,793
|
)
|
|
$
|
(1,858,294
|
)
|
|
Net income (loss)
|
|
|
|
|
|
|
|
|
15,395
|
|
|
—
|
|
|
—
|
|
|
(218,240
|
)
|
|
—
|
|
|
—
|
|
|
(202,845
|
)
|
||||||||
Exercise of stock options and release of stock awards
|
1,604,333
|
|
|
|
|
|
|
|
—
|
|
|
16
|
|
|
56
|
|
|
—
|
|
|
—
|
|
|
(785
|
)
|
|
(713
|
)
|
||||||||
Share-based compensation
|
|
|
|
|
|
|
|
|
476
|
|
|
—
|
|
|
8,041
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,517
|
|
||||||||
Payments to noncontrolling interests
|
|
|
|
|
|
|
|
|
(4,509
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,509
|
)
|
||||||||
Dividends declared ($0.0824/share)
|
|
|
|
|
|
|
|
|
—
|
|
|
—
|
|
|
(29,995
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(29,995
|
)
|
||||||||
Other comprehensive loss
|
|
|
|
|
|
|
(8,040
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,830
|
)
|
|
—
|
|
|
(13,870
|
)
|
||||||||||
Other
|
|
|
|
|
|
|
|
|
—
|
|
|
—
|
|
|
57
|
|
|
(1,435
|
)
|
|
1,435
|
|
|
—
|
|
|
57
|
|
||||||||
Balances at
December 31, 2018 |
51,559,633
|
|
|
315,000,000
|
|
|
|
|
$
|
160,362
|
|
|
$
|
3,666
|
|
|
$
|
3,086,307
|
|
|
$
|
(5,000,920
|
)
|
|
$
|
(344,489
|
)
|
|
$
|
(6,578
|
)
|
|
$
|
(2,101,652
|
)
|
|
Adoption of ASC 842, Leases
|
|
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14,613
|
|
|
—
|
|
|
—
|
|
|
14,613
|
|
||||||||||
Net loss
|
|
|
|
|
|
|
|
|
1,527
|
|
|
—
|
|
|
—
|
|
|
(363,304
|
)
|
|
—
|
|
|
—
|
|
|
(361,777
|
)
|
||||||||
Exercise of stock options and release of stock awards
|
187,120
|
|
|
|
|
1,126,328
|
|
|
—
|
|
|
12
|
|
|
515
|
|
|
—
|
|
|
—
|
|
|
(2,625
|
)
|
|
(2,098
|
)
|
||||||||
Share-based compensation
|
|
|
|
|
|
|
|
|
37
|
|
|
—
|
|
|
15,733
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15,770
|
|
||||||||
Payments to noncontrolling interests
|
|
|
|
|
|
|
|
|
(6,311
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6,311
|
)
|
||||||||
Recapitalization of equity
|
(51,746,753
|
)
|
|
(315,000,000
|
)
|
|
365,618,611
|
|
|
—
|
|
|
(11
|
)
|
|
(6,575
|
)
|
|
—
|
|
|
—
|
|
|
6,586
|
|
|
—
|
|
|||||||
Capital contributions
|
|
|
|
|
|
|
—
|
|
|
—
|
|
|
114,967
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
114,967
|
|
||||||||||
Distributions
|
|
|
|
|
|
|
—
|
|
|
—
|
|
|
(53,783
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(53,783
|
)
|
||||||||||
Issuance of common stock
|
|
|
|
|
100,000,000
|
|
|
—
|
|
|
1,000
|
|
|
332,419
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
333,419
|
|
|||||||||
Other comprehensive income (loss)
|
|
|
|
|
|
|
|
|
(1,397
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,063
|
)
|
|
—
|
|
|
(6,460
|
)
|
||||||||
Other
|
|
|
|
|
|
|
(1,404
|
)
|
|
—
|
|
|
10
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,394
|
)
|
||||||||||
Balances at
December 31, 2019 |
—
|
|
|
—
|
|
|
466,744,939
|
|
|
$
|
152,814
|
|
|
$
|
4,667
|
|
|
$
|
3,489,593
|
|
|
$
|
(5,349,611
|
)
|
|
$
|
(349,552
|
)
|
|
$
|
(2,617
|
)
|
|
$
|
(2,054,706
|
)
|
(In thousands)
|
Years Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Cash flows from operating activities:
|
|
|
|
|
|
||||||
Consolidated net loss
|
$
|
(361,777
|
)
|
|
$
|
(202,845
|
)
|
|
$
|
(626,210
|
)
|
Reconciling items:
|
|
|
|
|
|
||||||
Depreciation and amortization
|
309,324
|
|
|
318,952
|
|
|
325,991
|
|
|||
Impairment charges
|
5,300
|
|
|
7,772
|
|
|
4,159
|
|
|||
Deferred taxes
|
24,067
|
|
|
14,395
|
|
|
(311,085
|
)
|
|||
Provision for doubtful accounts
|
6,223
|
|
|
7,387
|
|
|
6,740
|
|
|||
Amortization of deferred financing charges and note discounts, net
|
10,300
|
|
|
10,730
|
|
|
10,527
|
|
|||
Share-based compensation
|
15,770
|
|
|
8,517
|
|
|
9,590
|
|
|||
Loss on extinguishment of debt
|
101,745
|
|
|
—
|
|
|
—
|
|
|||
Gain on disposal of operating and other assets, net
|
(1,873
|
)
|
|
(3,364
|
)
|
|
(29,347
|
)
|
|||
Loss on Due from iHeartCommunications
|
5,778
|
|
|
—
|
|
|
855,648
|
|
|||
Foreign exchange transaction loss (gain)
|
2,248
|
|
|
33,580
|
|
|
(29,563
|
)
|
|||
Other reconciling items, net
|
(5,178
|
)
|
|
(2,460
|
)
|
|
(2,675
|
)
|
|||
Changes in operating assets and liabilities, net of effects of acquisitions and dispositions:
|
|
|
|
|
|
||||||
Increase in accounts receivable
|
(12,555
|
)
|
|
(74,598
|
)
|
|
(39,790
|
)
|
|||
Decrease (increase) in prepaid expenses and other current assets
|
(36,540
|
)
|
|
2,077
|
|
|
9,608
|
|
|||
Increase (decrease) in accounts payable
|
(13,519
|
)
|
|
29,247
|
|
|
(4,126
|
)
|
|||
Increase (decrease) in accrued expenses
|
26,060
|
|
|
25,394
|
|
|
(7,316
|
)
|
|||
Increase in accrued interest
|
88,551
|
|
|
1,385
|
|
|
431
|
|
|||
Increase (decrease) in deferred revenue
|
2,956
|
|
|
41,347
|
|
|
(13,273
|
)
|
|||
Changes in other operating assets and liabilities, net
|
47,646
|
|
|
(30,241
|
)
|
|
809
|
|
|||
Net cash provided by operating activities
|
214,526
|
|
|
187,275
|
|
|
160,118
|
|
|||
Cash flows from investing activities:
|
|
|
|
|
|
||||||
Purchases of property, plant and equipment
|
(221,152
|
)
|
|
(211,079
|
)
|
|
(224,238
|
)
|
|||
Purchase of concession rights
|
(11,312
|
)
|
|
—
|
|
|
—
|
|
|||
Proceeds from disposal of assets
|
10,709
|
|
|
9,770
|
|
|
72,049
|
|
|||
Other investing activities, net
|
1,713
|
|
|
(2,283
|
)
|
|
(2,333
|
)
|
|||
Net cash used for investing activities
|
(220,042
|
)
|
|
(203,592
|
)
|
|
(154,522
|
)
|
|||
Cash flows from financing activities:
|
|
|
|
|
|
||||||
Payments on credit facilities
|
—
|
|
|
—
|
|
|
(909
|
)
|
|||
Proceeds from long-term debt
|
5,475,000
|
|
|
—
|
|
|
156,000
|
|
|||
Payments on long-term debt
|
(5,716,036
|
)
|
|
(632
|
)
|
|
(748
|
)
|
|||
Debt issuance costs
|
(64,816
|
)
|
|
(1,610
|
)
|
|
(4,387
|
)
|
|||
Proceeds from issuance of mandatorily-redeemable preferred stock
|
43,798
|
|
|
—
|
|
|
—
|
|
|||
Net transfers from (to) iHeartCommunications
|
43,399
|
|
|
78,823
|
|
|
(181,939
|
)
|
|||
Proceeds from settlement of Due from iHeartCommunications
|
115,798
|
|
|
—
|
|
|
—
|
|
|||
Proceeds from issuance of common stock
|
333,419
|
|
|
—
|
|
|
—
|
|
|||
Payments to noncontrolling interests
|
(6,311
|
)
|
|
(4,505
|
)
|
|
(12,010
|
)
|
|||
Dividends paid
|
(740
|
)
|
|
(30,678
|
)
|
|
(332,824
|
)
|
|||
Other financing activities, net
|
(3,502
|
)
|
|
(712
|
)
|
|
(2,696
|
)
|
|||
Net cash provided by (used for) financing activities
|
220,009
|
|
|
40,686
|
|
|
(379,513
|
)
|
|||
Effect of exchange rate changes on cash, cash equivalents and restricted cash
|
(287
|
)
|
|
(9,810
|
)
|
|
9,536
|
|
|||
Net increase (decrease) in cash, cash equivalents and restricted cash
|
214,206
|
|
|
14,559
|
|
|
(364,381
|
)
|
|||
Cash, cash equivalents and restricted cash at beginning of year
|
202,869
|
|
|
188,310
|
|
|
552,691
|
|
|||
Cash, cash equivalents and restricted cash at end of year
|
$
|
417,075
|
|
|
$
|
202,869
|
|
|
$
|
188,310
|
|
Supplemental Disclosures:
|
|
|
|
|
|
||||||
Cash paid for interest and dividends on mandatorily-redeemable preferred stock
|
$
|
323,892
|
|
|
$
|
375,489
|
|
|
$
|
374,309
|
|
Cash paid for income taxes, net of refunds
|
$
|
25,198
|
|
|
$
|
29,002
|
|
|
$
|
33,747
|
|
(In thousands)
|
December 31, 2019
|
|
December 31, 2018
|
||||
Cash and cash equivalents
|
$
|
398,858
|
|
|
$
|
182,456
|
|
Restricted cash included in:
|
|
|
|
||||
Other current assets
|
4,116
|
|
|
4,221
|
|
||
Other assets
|
14,101
|
|
|
16,192
|
|
||
Total cash, cash equivalents and restricted cash in the Statement of Cash Flows
|
$
|
417,075
|
|
|
$
|
202,869
|
|
|
|
Years Ended December 31,
|
||||||||||
(In thousands)
|
|
2019
|
|
2018
|
|
2017
|
||||||
|
|
|
|
|
|
|
||||||
Trade and barter revenues
|
|
$
|
14,967
|
|
|
$
|
15,921
|
|
|
$
|
17,379
|
|
Trade and barter expenses
|
|
9,416
|
|
|
10,695
|
|
|
11,345
|
|
(In thousands)
|
Revenue from contracts with customers
|
|
Revenue from
leases
|
|
Total Revenue
|
||||||
Year Ended December 31, 2019
|
|
|
|
|
|
||||||
United States(1)
|
$
|
687,558
|
|
|
$
|
585,460
|
|
|
$
|
1,273,018
|
|
Other Americas
|
67,386
|
|
|
22,187
|
|
|
89,573
|
|
|||
Europe(3)
|
956,979
|
|
|
129,219
|
|
|
1,086,198
|
|
|||
Asia-Pacific(4)
|
219,220
|
|
|
15,801
|
|
|
235,021
|
|
|||
Total
|
$
|
1,931,143
|
|
|
$
|
752,667
|
|
|
$
|
2,683,810
|
|
|
|
|
|
|
|
||||||
Year Ended December 31, 2018
|
|
|
|
|
|
||||||
United States(1)
|
$
|
465,307
|
|
|
$
|
724,041
|
|
|
$
|
1,189,348
|
|
Other Americas
|
53,186
|
|
|
33,023
|
|
|
86,209
|
|
|||
Europe(3)
|
856,479
|
|
|
293,895
|
|
|
1,150,374
|
|
|||
Asia-Pacific(4)
|
11,943
|
|
|
283,831
|
|
|
295,774
|
|
|||
Total
|
$
|
1,386,915
|
|
|
$
|
1,334,790
|
|
|
$
|
2,721,705
|
|
|
|
|
|
|
|
||||||
Year Ended December 31, 2017
|
|
|
|
|
|
||||||
United States(1)
|
$
|
432,667
|
|
|
$
|
714,711
|
|
|
$
|
1,147,378
|
|
Other Americas(2)
|
66,051
|
|
|
42,897
|
|
|
108,948
|
|
|||
Europe(3)
|
772,056
|
|
|
287,571
|
|
|
1,059,627
|
|
|||
Asia-Pacific(4)
|
9,966
|
|
|
262,783
|
|
|
272,749
|
|
|||
Total
|
$
|
1,280,740
|
|
|
$
|
1,307,962
|
|
|
$
|
2,588,702
|
|
(1)
|
Included within the Americas segment and United States geographical region is revenue generated from airport displays in the Caribbean.
|
(2)
|
In 2017, revenue from the Company's Canada business of $13.7 million, included within the "Other Americas" geographical region in the above table, is included in revenue for the Americas segment as reported in Note 15 to the Consolidated Financial Statements. The Company sold its Canada business in 2017.
|
(3)
|
Total revenue from the Company's operations in Europe for each of the years ended December 31, 2019, 2018 and 2017 includes revenue from France of $284 million, $285 million and $270 million, respectively.
|
(4)
|
Total revenue from the Company's operations in Asia-Pacific for each of the years ended December 31, 2019, 2018 and 2017 includes revenue from China of $209 million, $273 million and $253 million, respectively.
|
|
Years Ended December 31,
|
||||||||||
(In thousands)
|
2019
|
|
2018
|
|
2017
|
||||||
Accounts receivable, net of allowance, from contracts with customers
|
|
|
|
|
|
||||||
Beginning balance
|
$
|
367,918
|
|
|
$
|
346,323
|
|
|
$
|
296,180
|
|
Ending balance
|
$
|
581,555
|
|
|
$
|
367,918
|
|
|
$
|
346,323
|
|
|
|
|
|
|
|
||||||
Deferred revenue from contracts with customers
|
|
|
|
|
|
||||||
Beginning balance
|
$
|
39,916
|
|
|
$
|
28,804
|
|
|
$
|
28,924
|
|
Ending balance
|
$
|
52,589
|
|
|
$
|
39,916
|
|
|
$
|
28,804
|
|
(In thousands)
|
|||
2020
|
$
|
338,942
|
|
2021
|
32,147
|
|
|
2022
|
13,681
|
|
|
2023
|
4,217
|
|
|
2024
|
3,154
|
|
|
Thereafter
|
4,003
|
|
|
Total
|
$
|
396,144
|
|
(In thousands)
|
Year Ended December 31, 2019
|
||
Operating lease expense
|
$
|
533,392
|
|
Variable lease expense
|
$
|
142,064
|
|
|
December 31,
2019 |
|
Operating lease weighted-average remaining lease term (in years)
|
10.2
|
|
Operating lease weighted-average discount rate
|
6.87
|
%
|
(In thousands)
|
Year Ended December 31, 2019
|
||
Cash paid for amounts included in measurement of operating lease liabilities
|
$
|
527,812
|
|
Lease liabilities arising from obtaining right-of-use assets(1)
|
$
|
2,318,161
|
|
(1)
|
Includes transition liabilities upon adoption of ASC Topic 842, as well as new leases entered into during the year ended December 31, 2019. Changes in the ROU asset and liability are presented net within operating activities.
|
(In thousands)
|
December 31,
|
|
December 31,
|
||||
|
2019
|
|
2018
|
||||
Land, buildings and improvements
|
$
|
149,889
|
|
|
$
|
145,403
|
|
Structures
|
2,832,797
|
|
|
2,835,411
|
|
||
Furniture and other equipment
|
234,183
|
|
|
202,155
|
|
||
Construction in progress
|
84,289
|
|
|
73,030
|
|
||
|
3,301,158
|
|
|
3,255,999
|
|
||
Less: Accumulated depreciation
|
2,090,004
|
|
|
1,967,061
|
|
||
Property, plant and equipment, net
|
$
|
1,211,154
|
|
|
$
|
1,288,938
|
|
(In thousands)
|
December 31, 2019
|
|
December 31, 2018
|
||||||||||||
|
Gross Carrying Amount
|
|
Accumulated Amortization
|
|
Gross Carrying Amount
|
|
Accumulated Amortization
|
||||||||
Indefinite-lived permits
|
$
|
965,863
|
|
|
$
|
—
|
|
|
$
|
971,163
|
|
|
$
|
—
|
|
Transit, street furniture and other outdoor
contractual rights
|
535,912
|
|
|
(451,021
|
)
|
|
528,185
|
|
|
(440,228
|
)
|
||||
Permanent easements
|
163,399
|
|
|
—
|
|
|
163,317
|
|
|
—
|
|
||||
Trademarks(1)
|
83,569
|
|
|
(5,898
|
)
|
|
409
|
|
|
(338
|
)
|
||||
Other
|
5,352
|
|
|
(4,648
|
)
|
|
5,510
|
|
|
(3,993
|
)
|
||||
Total intangible assets
|
$
|
1,754,095
|
|
|
$
|
(461,567
|
)
|
|
$
|
1,668,584
|
|
|
$
|
(444,559
|
)
|
(1)
|
As part of the Separation Agreement, the Trademark License Agreement with iHeartCommunications was canceled, and the Company received the "Clear Channel" and "Clear Channel Outdoor" trademarks, among other Clear Channel marks, as a capital contribution from iHeartCommunications upon Separation on May 1, 2019. The trademarks have a gross carrying amount of $83.2 million and were determined to have a useful life of ten years as of May 1, 2019.
|
(In thousands)
|
|
||
2020
|
$
|
22,155
|
|
2021
|
22,410
|
|
|
2022
|
20,630
|
|
|
2023
|
16,236
|
|
|
2024
|
16,106
|
|
|
Thereafter
|
65,729
|
|
|
Total
|
$
|
163,266
|
|
(In thousands)
|
Americas
|
|
International
|
|
Consolidated
|
||||||
Balance as of December 31, 2017
|
$
|
507,819
|
|
|
$
|
206,224
|
|
|
$
|
714,043
|
|
Foreign currency
|
—
|
|
|
(8,040
|
)
|
|
(8,040
|
)
|
|||
Balance as of December 31, 2018
|
$
|
507,819
|
|
|
$
|
198,184
|
|
|
$
|
706,003
|
|
Foreign currency
|
—
|
|
|
(1,845
|
)
|
|
(1,845
|
)
|
|||
Balance as of December 31, 2019
|
$
|
507,819
|
|
|
$
|
196,339
|
|
|
$
|
704,158
|
|
(In thousands)
|
Years Ended December 31,
|
||||||
|
2019
|
|
2018
|
||||
Beginning balance
|
$
|
43,981
|
|
|
$
|
44,779
|
|
Adjustment due to changes in estimates
|
88
|
|
|
872
|
|
||
Accretion of liability
|
3,179
|
|
|
3,113
|
|
||
Liabilities settled
|
(2,973
|
)
|
|
(3,389
|
)
|
||
Foreign currency
|
(452
|
)
|
|
(1,394
|
)
|
||
Ending balance
|
$
|
43,823
|
|
|
$
|
43,981
|
|
(In thousands)
|
December 31,
|
|
December 31,
|
||||
|
2019
|
|
2018
|
||||
Term Loan Facility(1),(2)
|
$
|
1,995,000
|
|
|
$
|
—
|
|
Revolving Credit Facility(3)
|
—
|
|
|
—
|
|
||
Receivables-Based Credit Facility(3)
|
—
|
|
|
—
|
|
||
Clear Channel Outdoor Holdings 5.125% Senior Notes Due 2027(1)
|
1,250,000
|
|
|
—
|
|
||
Clear Channel Worldwide Holdings 9.25% Senior Notes Due 2024(4)
|
1,901,525
|
|
|
—
|
|
||
Clear Channel Worldwide Holdings 6.5% Senior Notes Due 2022(1)
|
—
|
|
|
2,725,000
|
|
||
Clear Channel Worldwide Holdings 7.625% Senior Subordinated Notes Due 2020(4)
|
—
|
|
|
2,200,000
|
|
||
Clear Channel International B.V. 8.75% Senior Notes Due 2020(1)
|
—
|
|
|
375,000
|
|
||
Other debt(5)
|
4,161
|
|
|
3,882
|
|
||
Original issue discount
|
(9,561
|
)
|
|
(739
|
)
|
||
Long-term debt fees
|
(57,107
|
)
|
|
(25,808
|
)
|
||
Total debt
|
5,084,018
|
|
|
5,277,335
|
|
||
Less: Current portion(2),(5)
|
20,294
|
|
|
227
|
|
||
Total long-term debt
|
$
|
5,063,724
|
|
|
$
|
5,277,108
|
|
(1)
|
In August 2019, the Company refinanced all of Clear Channel Worldwide Holdings, Inc.'s ("CCWH") outstanding 6.5% Series A Senior Notes due 2022 (the "Series A CCWH Senior Notes") and 6.5% Series B Senior Notes due 2022 (the "Series B CCWH Senior Notes" and together with the Series A CCWH Senior Notes, the "CCWH Senior Notes") and all of Clear Channel International B.V.'s outstanding 8.75% Senior Notes due 2020 (the "CCIBV Senior Notes") with the proceeds of $1,250.0 million aggregate principal amount of new 5.125% Senior Secured Notes due 2027 (the "CCOH Senior Secured Notes") and a new $2,000.0 million Term B Facility (the "New Term Loan Facility").
|
(2)
|
The term loans under the New Term Loan Facility amortize in equal quarterly installments in an aggregate annual amount equal to 1.00% of the original principal amount of such term loans, with the first quarterly payment made on December 31, 2019 and the balance being payable on August 23, 2026.
|
(3)
|
In connection with the refinancing in August 2019 described in footnote (1) above, the Company entered into a $175.0 million revolving credit facility (the "New Revolving Credit Facility") and terminated its existing receivables-based facility and entered into a new $125.0 million receivables-based credit facility (the "New Receivables-Based Credit Facility"). As of December 31, 2019, the New Revolving Credit Facility had $20.2 million of letters of credit outstanding, resulting in $154.8 million of excess availability. The New Receivables-Based Credit Facility had a borrowing base greater than its borrowing limit of $125.0 million and $48.9 million of letters of credit outstanding, resulting in $76.1 million of excess availability. Access to availability under these credit facilities is limited by the covenants relating to incurrence of secured indebtedness in the New CCWH Senior Notes Indenture. Additionally, as of December 31, 2019, iHeartCommunications had outstanding commercial standby letters of credit of $0.9 million held on behalf of the Company.
|
(4)
|
In February 2019, the Company refinanced all of CCWH's outstanding 7.625% Series A Senior Subordinated Notes due 2020 (the “Series A CCWH Subordinated Notes”) and 7.625% Series B Senior Subordinated Notes due 2020 (the “Series B CCWH Subordinated Notes” and together with the Series A CCWH Subordinated Notes, the "CCWH Subordinated Notes") with the proceeds of the issuance of $2,235.0 million aggregate principal amount of CCWH's new 9.25% Senior Notes due 2024 (which were senior subordinated notes at the time of issuance in February 2019 but ceased to be subordinated on August 23, 2019 upon the closing of the refinancing transactions described in footnote (1) above) (the “New CCWH Senior Notes”). In August 2019, the Company redeemed approximately $333.5 million aggregate principal amount of the New CCWH Senior Notes using the net proceeds of a public offering of common stock.
|
(5)
|
Other debt includes various borrowings and capital leases utilized for general operating purposes. Included in the $4.2 million balance at December 31, 2019 is $0.3 million that matures in less than one year.
|
(1)
|
Excludes original issue discount and long-term debt fees of $9.6 million and $57.1 million, respectively, which are amortized through interest expense over the life of the underlying debt obligations.
|
(In thousands)
|
Non-Lease
|
|
Capital
|
||||
|
Non-Cancelable
|
|
Expenditure
|
||||
|
Contracts
|
|
Commitments
|
||||
2020
|
$
|
322,031
|
|
|
$
|
48,680
|
|
2021
|
290,764
|
|
|
10,992
|
|
||
2022
|
251,439
|
|
|
9,714
|
|
||
2023
|
200,373
|
|
|
3,127
|
|
||
2024
|
146,879
|
|
|
2,585
|
|
||
Thereafter
|
342,122
|
|
|
3,550
|
|
||
Total
|
$
|
1,553,608
|
|
|
$
|
78,648
|
|
•
|
Prior to the Merger, the 315,000,000 shares of CCOH's Class B Common Stock ("Old CCOH Class B Common Stock") held by CCH were converted into shares of CCOH's Class A Common Stock (the "Old CCOH Class A Common Stock");
|
•
|
At the effective time of the Merger, each share of Old CCOH Class A Common Stock issued and outstanding (other than shares of Old CCOH Class A Common Stock held by CCH) converted into one share of common stock of the Company (the "Common Stock”);
|
•
|
The 325,726,917 shares of Old CCOH Class A Common Stock held by CCH were canceled and retired, and no shares of Common Stock were exchanged for such shares; and
|
•
|
All outstanding shares of CCH's common stock, all held by iHeartCommunications immediately before the Merger, were converted into 325,726,917 shares of Common Stock and transferred to certain holders of claims in iHeartMedia Chapter 11 Cases pursuant to the iHeartMedia Plan of Reorganization.
|
•
|
On February 23, 2017, the Company paid a special cash dividend to our stockholders of $282.5 million, using proceeds from the sales of certain non-strategic U.S. markets and of our business in Australia. iHeartCommunications received 89.9%, or approximately $254.0 million, with the remaining 10.1%, or approximately $28.5 million, paid to our public stockholders.
|
•
|
On October 5, 2017, the Company paid a special cash dividend to Class A and Class B stockholders of record at the closing of business on October 2, 2017 in an aggregate amount equal to $25.0 million.
|
•
|
On October 31, 2017, the Company paid a special cash dividend to Class A and Class B stockholders of record at the closing of business on October 26, 2017 in an aggregate amount equal to $25.0 million.
|
•
|
On January 24, 2018, the Company paid a special cash dividend to Class A and Class B stockholders of record at the closing of business on January 19, 2018, in an aggregate amount equal to $30.0 million.
|
(In thousands)
|
Years Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017(1)
|
||||||
Current - federal
|
$
|
(813
|
)
|
|
$
|
—
|
|
|
$
|
(87
|
)
|
Current - foreign
|
(43,941
|
)
|
|
(17,566
|
)
|
|
(29,403
|
)
|
|||
Current - state
|
(3,433
|
)
|
|
(554
|
)
|
|
(1,377
|
)
|
|||
Total current expense
|
(48,187
|
)
|
|
(18,120
|
)
|
|
(30,867
|
)
|
|||
Deferred - federal
|
3,762
|
|
|
(5,673
|
)
|
|
306,078
|
|
|||
Deferred - foreign
|
(27,980
|
)
|
|
(6,530
|
)
|
|
(2,548
|
)
|
|||
Deferred - state
|
151
|
|
|
(2,192
|
)
|
|
7,555
|
|
|||
Total deferred benefit (expense)
|
(24,067
|
)
|
|
(14,395
|
)
|
|
311,085
|
|
|||
Income tax benefit (expense)
|
$
|
(72,254
|
)
|
|
$
|
(32,515
|
)
|
|
$
|
280,218
|
|
(1)
|
On December 22, 2017, the U.S. government enacted comprehensive income tax legislation, referred to as The Tax Cuts and Jobs Act (the "Tax Act"). The Tax Act reduced the U.S. federal corporate tax rate from 35% to 21% effective January 1, 2018, required companies to pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously tax-deferred, and created new U.S. taxes on certain foreign earnings. To account for the reduction in the U.S. federal corporate income tax rate, we remeasured our deferred tax assets and liabilities based on the rates at which they were expected to reverse in the future, generally 21%, which resulted in the recording of a deferred tax benefit of $228.0 million during 2017. To determine the impact from the one-time transition tax on accumulated foreign earnings, we analyzed our cumulative foreign earnings and profits in accordance with the rules provided in the Tax Act and determined that no transition tax was due as a result of the net accumulated deficit in our foreign earnings and profits.
|
(In thousands)
|
December 31,
|
|
December 31,
|
||||
|
2019
|
|
2018
|
||||
Deferred tax liabilities:
|
|
|
|
||||
Intangibles and fixed assets(1)
|
$
|
476,120
|
|
|
$
|
486,873
|
|
Operating lease right-of-use asset
|
444,692
|
|
|
—
|
|
||
Equity in earnings
|
2,588
|
|
|
2,414
|
|
||
Other
|
8,008
|
|
|
11,574
|
|
||
Total deferred tax liabilities
|
931,408
|
|
|
500,861
|
|
||
Deferred tax assets:
|
|
|
|
||||
Accrued expenses
|
19,586
|
|
|
20,210
|
|
||
Net operating loss carryforwards(2)
|
180,956
|
|
|
363,875
|
|
||
Interest expense carryforwards(3)
|
114,148
|
|
|
67,098
|
|
||
Bad debt reserves
|
5,076
|
|
|
4,089
|
|
||
Operating lease liabilities
|
470,699
|
|
|
—
|
|
||
Other
|
17,816
|
|
|
27,256
|
|
||
Total deferred tax assets
|
808,281
|
|
|
482,528
|
|
||
Less: Valuation allowance(4)
|
292,939
|
|
|
316,682
|
|
||
Net deferred tax assets
|
515,342
|
|
|
165,846
|
|
||
Net deferred tax liabilities
|
$
|
416,066
|
|
|
$
|
335,015
|
|
(1)
|
The deferred tax liabilities associated with intangibles and fixed assets primarily relate to the differences in the book and tax basis of acquired billboard permits and tax-deductible goodwill created from the Company’s various stock acquisitions. In accordance with ASC Subtopic 350-10, the Company does not amortize its book basis in permits. As a result, this deferred tax liability will not reverse over time unless the Company recognizes future impairment charges related to its permits and tax-deductible goodwill or sells its permits. As the Company continues to amortize its tax basis in its permits and tax-deductible goodwill, the deferred tax liability will increase over time.
|
(2)
|
At December 31, 2019, the Company had recorded deferred tax assets for net operating loss carryforwards (tax-effected) for federal and state income tax purposes of $64.6 million, which expire in various amounts through 2040. At December 31, 2019, the Company had recorded $124.7 million (tax-effected) of deferred tax assets for foreign net operating loss carryforwards, the majority of which may be carried forward without expiration.
|
(3)
|
On December 22, 2017, the U.S. government enacted comprehensive income tax legislation, referred to as The Tax Cuts and Jobs Act (the "Tax Act"). The Tax Act amended Section 163(j) of the Internal Revenue Code, thereby establishing new rules governing a U.S. taxpayer’s ability to deduct interest expense beginning in 2018. Section 163(j), as amended, generally limits the deduction for business interest expense to 30% of adjusted taxable income and provides that any disallowed interest expense may be carried forward indefinitely. The Company believes that it is eligible to make the election under Section 163(j) and has applied the provisions of 163(j) in its accounting for interest expense. In applying the new rules under Section 163(j), the Company recorded an interest expense limitation related to its non-real property assets and carryforward deferred tax asset (tax-effected) for federal and state purposes of $114.1 million as of December 31, 2019. Note that the limitation established in Section 163(j) does not apply to a company that makes an election to be the operator of a “real property trade or business.”
|
(4)
|
The Company expects to realize the benefits of a portion of its deferred tax assets based upon expected future taxable income from deferred tax liabilities that reverse in the relevant jurisdictions and carryforward periods. As of December 31, 2019, the Company had a valuation allowance of $124.0 million recorded against a portion of its federal and state deferred tax assets that it does not expect to realize. In addition, the Company had a valuation allowance of $169.0 million recorded against its deferred tax assets in foreign jurisdictions. Realization of these foreign deferred tax assets is dependent upon future taxable income from deferred tax liabilities that will reserve in future periods and upon the Company's ability to generate future taxable income in certain tax jurisdictions to obtain benefits. The Company recorded a net increase of $51.7 million in valuation allowances against its foreign deferred tax assets during the year ended December 31, 2019.
|
(In thousands)
|
Years Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
US
|
$
|
(262,201
|
)
|
|
$
|
(158,965
|
)
|
|
$
|
(942,297
|
)
|
Foreign
|
(27,322
|
)
|
|
(11,365
|
)
|
|
35,869
|
|
|||
Total loss before income taxes
|
$
|
(289,523
|
)
|
|
$
|
(170,330
|
)
|
|
$
|
(906,428
|
)
|
(In thousands)
|
Years Ended December 31,
|
|||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
|||||||||||||||
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
|
Amount
|
|
Percent
|
|||||||||
Income tax benefit at statutory rates
|
$
|
60,800
|
|
|
21.0
|
%
|
|
$
|
35,769
|
|
|
21.0
|
%
|
|
$
|
317,250
|
|
|
35.0
|
%
|
State income taxes, net of federal tax effect
|
6,937
|
|
|
2.4
|
%
|
|
11,150
|
|
|
6.5
|
%
|
|
23,378
|
|
|
2.6
|
%
|
|||
Foreign income taxes
|
(77,659
|
)
|
|
(26.8
|
)%
|
|
(26,483
|
)
|
|
(15.5
|
)%
|
|
(19,409
|
)
|
|
(2.1
|
)%
|
|||
Nondeductible items
|
(760
|
)
|
|
(0.3
|
)%
|
|
(565
|
)
|
|
(0.3
|
)%
|
|
(646
|
)
|
|
(0.1
|
)%
|
|||
Changes in valuation allowance and other estimates
|
(58,940
|
)
|
|
(20.4
|
)%
|
|
(50,927
|
)
|
|
(29.9
|
)%
|
|
(148,389
|
)
|
|
(16.4
|
)%
|
|||
U.S. tax reform
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
228,010
|
|
|
25.2
|
%
|
|||
U.S. rate differential on impairment of related party note
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
(115,755
|
)
|
|
(12.8
|
)%
|
|||
Other, net
|
(2,632
|
)
|
|
(0.9
|
)%
|
|
$
|
(1,459
|
)
|
|
(0.9
|
)%
|
|
$
|
(4,221
|
)
|
|
(0.5
|
)%
|
|
Income tax benefit (expense)
|
$
|
(72,254
|
)
|
|
(25.0
|
)%
|
|
$
|
(32,515
|
)
|
|
(19.1
|
)%
|
|
$
|
280,218
|
|
|
30.9
|
%
|
(In thousands)
|
|
Years Ended December 31,
|
||||||
Unrecognized Tax Benefits
|
|
2019
|
|
2018
|
||||
Balance at beginning of period
|
|
$
|
28,346
|
|
|
$
|
34,431
|
|
Increases for tax position taken in the current year
|
|
3,494
|
|
|
3,881
|
|
||
Increases for tax positions taken in previous years
|
|
10,318
|
|
|
830
|
|
||
Decreases for tax position taken in previous years
|
|
(679
|
)
|
|
(5,748
|
)
|
||
Decreases due to lapse of statute of limitations
|
|
(4,145
|
)
|
|
(5,048
|
)
|
||
Balance at end of period
|
|
$
|
37,334
|
|
|
$
|
28,346
|
|
|
Years Ended December 31,
|
||||
|
2019
|
|
2018
|
|
2017
|
Expected volatility
|
44%
|
|
44%
|
|
42%
|
Expected life in years
|
5.8
|
|
6.3
|
|
6.3
|
Risk-free interest rate
|
1.88%
|
|
2.76%
|
|
2.12%
|
Dividend yield
|
—%
|
|
—%
|
|
—%
|
(In thousands, except per share data)
|
Options
|
|
Price(3)
|
|
Weighted
Average
Remaining
Contractual
Term
|
|
Aggregate
Intrinsic
Value
|
|||||
Outstanding, January 1, 2019
|
3,245
|
|
|
$
|
4.97
|
|
|
3.8 years
|
|
$
|
2,938
|
|
Granted(1)
|
2,190
|
|
|
5.11
|
|
|
|
|
|
|||
Exercised(2)
|
(452
|
)
|
|
1.31
|
|
|
|
|
|
|||
Forfeited
|
(4
|
)
|
|
6.47
|
|
|
|
|
|
|||
Expired
|
(107
|
)
|
|
4.51
|
|
|
|
|
|
|||
Outstanding, December 31, 2019
|
4,872
|
|
|
5.38
|
|
|
6.1 years
|
|
$
|
253
|
|
|
Exercisable
|
3,183
|
|
|
5.43
|
|
|
4.6 years
|
|
$
|
253
|
|
|
Expected to vest
|
1,689
|
|
|
5.30
|
|
|
8.9 years
|
|
$
|
—
|
|
(1)
|
The weighted average grant date fair value of the Company’s options granted during the years ended December 31, 2019, 2018 and 2017 was $2.05, $2.39 and $2.04 per share, respectively.
|
(2)
|
Cash received from option exercises during the years ended December 31, 2019, 2018 and 2017 was $0.5 million, $0.1 million and $0.2 million, respectively. The total intrinsic value of the options exercised during the years ended December 31, 2019, 2018 and 2017 was $1.3 million, $0.1 million and $0.2 million, respectively.
|
(3)
|
Reflects the weighted average price per share.
|
(In thousands, except per share data)
|
Options
|
|
Weighted Average Grant Date Fair Value
|
|||
Unvested, January 1, 2019
|
423
|
|
|
$
|
4.15
|
|
Granted
|
2,190
|
|
|
$
|
2.05
|
|
Vested(1)
|
(920
|
)
|
|
$
|
2.45
|
|
Forfeited
|
(4
|
)
|
|
$
|
3.61
|
|
Unvested, December 31, 2019
|
1,689
|
|
|
$
|
2.35
|
|
(1)
|
The total fair value of the Company’s options vested during the years ended December 31, 2019, 2018 and 2017 was $2.3 million, $1.2 million and $1.6 million, respectively.
|
(In thousands, except per share data)
|
Awards
|
|
Price(1)
|
|||
Outstanding, January 1, 2019
|
5,133
|
|
|
$
|
5.23
|
|
Granted
|
6,461
|
|
|
$
|
2.73
|
|
Vested (restriction lapsed)
|
(1,423
|
)
|
|
$
|
5.94
|
|
Forfeited
|
(296
|
)
|
|
$
|
4.43
|
|
Outstanding, December 31, 2019
|
9,875
|
|
|
$
|
3.51
|
|
(1)
|
Reflects the weighted average share price at the date of grant.
|
•
|
The RSUs vest in three equal annual installments on each of April 1, 2020, April 1, 2021 and April 1, 2022, provided that the recipient is still employed by or providing services to the Company on each vesting date.
|
•
|
The PSUs will vest and become earned based on the achievement of the Company’s total shareholder return relative to the Company’s peer group (the “Relative TSR”) over a performance period from October 1, 2019 through March 31, 2022 (the “Performance Period”). If the Company achieves Relative TSR at the 90th percentile or higher, the PSUs will be earned at 150% of the target number of shares. If the Company achieves Relative TSR at the 60th percentile, the PSU will be earned at 100% of the target number of shares. If the Company achieves Relative TSR at the 30th percentile, the PSUs will be earned at 50% of the target number of shares. To the extent Relative TSR is between vesting levels, the portion of the PSUs that become vested will be determined using straight line interpolation. The PSUs are considered market condition awards pursuant to ASC Topic 260.
|
(In thousands, except per share data)
|
Years Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
NUMERATOR:
|
|
|
|
|
|
||||||
Net loss attributable to the Company – common shares
|
$
|
(363,304
|
)
|
|
$
|
(218,240
|
)
|
|
$
|
(644,348
|
)
|
|
|
|
|
|
|
||||||
DENOMINATOR:
|
|
|
|
|
|
|
|
|
|||
Weighted average common shares outstanding – basic
|
413,087
|
|
|
361,740
|
|
|
361,141
|
|
|||
Stock options, restricted stock and restricted stock units(1):
|
—
|
|
|
—
|
|
|
—
|
|
|||
Weighted average common shares outstanding – diluted
|
413,087
|
|
|
361,740
|
|
|
361,141
|
|
|||
|
|
|
|
|
|
||||||
Net loss attributable to the Company per common share:
|
|
|
|
|
|
|
|
|
|||
Basic
|
$
|
(0.88
|
)
|
|
$
|
(0.60
|
)
|
|
$
|
(1.78
|
)
|
Diluted
|
$
|
(0.88
|
)
|
|
$
|
(0.60
|
)
|
|
$
|
(1.78
|
)
|
(1)
|
Outstanding equity awards of 10.1 million, 7.7 million and 8.0 million for the years ended December 31, 2019, 2018 and 2017, respectively, were not included in the computation of diluted earnings per share because to do so would have been anti-dilutive.
|
(In thousands)
|
Years Ended December 31,
|
||||||||||
|
2019
|
|
2018
|
|
2017
|
||||||
Foreign exchange gain (loss)
|
$
|
(2,248
|
)
|
|
$
|
(33,580
|
)
|
|
$
|
29,563
|
|
Equity in earnings (loss) of nonconsolidated affiliates
|
364
|
|
|
904
|
|
|
(990
|
)
|
|||
Other(1)
|
(13,500
|
)
|
|
(1,717
|
)
|
|
(808
|
)
|
|||
Total other income (expense), net
|
$
|
(15,384
|
)
|
|
$
|
(34,393
|
)
|
|
$
|
27,765
|
|
(1)
|
Other expense increased in 2019 due to costs incurred related to the Separation from iHeartMedia.
|
(In thousands)
|
As of December 31,
|
||||||
|
2019
|
|
2018
|
||||
Inventory
|
$
|
21,122
|
|
|
$
|
18,061
|
|
Deposits
|
877
|
|
|
1,035
|
|
||
Other receivables
|
3,452
|
|
|
5,088
|
|
||
Restricted cash
|
4,116
|
|
|
4,221
|
|
||
Other
|
3,188
|
|
|
2,896
|
|
||
Total other current assets
|
$
|
32,755
|
|
|
$
|
31,301
|
|
(In thousands)
|
As of December 31,
|
||||||
|
2019
|
|
2018
|
||||
Investments
|
$
|
9,022
|
|
|
$
|
9,889
|
|
Deposits
|
25,047
|
|
|
23,515
|
|
||
Prepaid expenses
|
24,290
|
|
|
53,833
|
|
||
Restricted cash
|
14,101
|
|
|
16,192
|
|
||
Other
|
25,615
|
|
|
29,075
|
|
||
Total other assets
|
$
|
98,075
|
|
|
$
|
132,504
|
|
(In thousands)
|
As of December 31,
|
||||||
|
2019
|
|
2018
|
||||
Unrecognized tax benefits
|
$
|
28,855
|
|
|
$
|
18,186
|
|
Asset retirement obligation
|
43,823
|
|
|
43,981
|
|
||
Deferred income(1)
|
1,009
|
|
|
19,133
|
|
||
Deferred rent
|
40,985
|
|
|
109,385
|
|
||
Employee related liabilities
|
48,184
|
|
|
48,432
|
|
||
Other
|
20,169
|
|
|
21,033
|
|
||
Total other long-term liabilities
|
$
|
183,025
|
|
|
$
|
260,150
|
|
(1)
|
Upon adoption of ASC Topic 842, deferred gains related to previous transactions that were historically accounted for as sale and operating leasebacks in accordance with ASC Topic 840 were recognized as a cumulative-effect adjustment to equity, resulting in a decrease to deferred income.
|
|
Three Months Ended
March 31,
|
|
Three Months Ended
June 30,
|
|
Three Months Ended
September 30,
|
|
Three Months Ended
December 31,
|
||||||||||||||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||||||||||
Revenue
|
$
|
587,116
|
|
|
$
|
598,398
|
|
|
$
|
698,015
|
|
|
$
|
711,980
|
|
|
$
|
653,447
|
|
|
$
|
663,739
|
|
|
$
|
745,232
|
|
|
$
|
747,588
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Direct operating expenses
|
347,827
|
|
|
361,289
|
|
|
363,029
|
|
|
372,936
|
|
|
358,156
|
|
|
361,681
|
|
|
383,165
|
|
|
374,762
|
|
||||||||
Selling, general and administrative expenses
|
122,966
|
|
|
127,408
|
|
|
134,721
|
|
|
125,289
|
|
|
129,162
|
|
|
128,797
|
|
|
134,079
|
|
|
141,424
|
|
||||||||
Corporate expenses
|
28,614
|
|
|
35,435
|
|
|
38,907
|
|
|
37,928
|
|
|
37,535
|
|
|
37,729
|
|
|
39,285
|
|
|
40,998
|
|
||||||||
Depreciation and amortization
|
75,076
|
|
|
84,060
|
|
|
80,174
|
|
|
82,767
|
|
|
76,226
|
|
|
77,405
|
|
|
77,848
|
|
|
74,720
|
|
||||||||
Impairment charges
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,300
|
|
|
7,772
|
|
|
—
|
|
|
—
|
|
||||||||
Other operating income (expense), net
|
(3,522
|
)
|
|
(54
|
)
|
|
1,270
|
|
|
929
|
|
|
620
|
|
|
825
|
|
|
2,794
|
|
|
798
|
|
||||||||
Operating income (loss)
|
9,111
|
|
|
(9,848
|
)
|
|
82,454
|
|
|
93,989
|
|
|
47,688
|
|
|
51,180
|
|
|
113,649
|
|
|
116,482
|
|
||||||||
Interest expense, net
|
114,052
|
|
|
97,264
|
|
|
107,448
|
|
|
96,987
|
|
|
106,776
|
|
|
97,158
|
|
|
89,908
|
|
|
96,724
|
|
||||||||
Interest income (expense) on Due from (to) iHeartCommunications
|
(811
|
)
|
|
—
|
|
|
(523
|
)
|
|
210
|
|
|
—
|
|
|
363
|
|
|
—
|
|
|
(180
|
)
|
||||||||
Loss on Due from iHeartCommunications
|
—
|
|
|
—
|
|
|
(5,778
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Loss on extinguishment of debt
|
(5,474
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(96,271
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Other income (expense), net
|
(565
|
)
|
|
19,641
|
|
|
(9,203
|
)
|
|
(35,402
|
)
|
|
(26,874
|
)
|
|
(5,885
|
)
|
|
21,258
|
|
|
(12,747
|
)
|
||||||||
Income (loss) before income taxes
|
(111,791
|
)
|
|
(87,471
|
)
|
|
(40,498
|
)
|
|
(38,190
|
)
|
|
(182,233
|
)
|
|
(51,500
|
)
|
|
44,999
|
|
|
6,831
|
|
||||||||
Income tax benefit (expense)
|
(57,763
|
)
|
|
(45,367
|
)
|
|
29,093
|
|
|
(4,753
|
)
|
|
(30,136
|
)
|
|
(6,896
|
)
|
|
(13,448
|
)
|
|
24,501
|
|
||||||||
Consolidated net income (loss)
|
(169,554
|
)
|
|
(132,838
|
)
|
|
(11,405
|
)
|
|
(42,943
|
)
|
|
(212,369
|
)
|
|
(58,396
|
)
|
|
31,551
|
|
|
31,332
|
|
||||||||
Less amount attributable to noncontrolling interest
|
(5,387
|
)
|
|
(4,416
|
)
|
|
(466
|
)
|
|
7,440
|
|
|
2,929
|
|
|
6,692
|
|
|
4,451
|
|
|
5,679
|
|
||||||||
Net income (loss) attributable to the Company
|
$
|
(164,167
|
)
|
|
$
|
(128,422
|
)
|
|
$
|
(10,939
|
)
|
|
$
|
(50,383
|
)
|
|
$
|
(215,298
|
)
|
|
$
|
(65,088
|
)
|
|
$
|
27,100
|
|
|
$
|
25,653
|
|
Net income (loss) per common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Basic
|
$
|
(0.45
|
)
|
|
$
|
(0.36
|
)
|
|
$
|
(0.03
|
)
|
|
$
|
(0.14
|
)
|
|
$
|
(0.46
|
)
|
|
$
|
(0.18
|
)
|
|
$
|
0.06
|
|
|
$
|
0.07
|
|
Diluted
|
$
|
(0.45
|
)
|
|
$
|
(0.36
|
)
|
|
$
|
(0.03
|
)
|
|
$
|
(0.14
|
)
|
|
$
|
(0.46
|
)
|
|
$
|
(0.18
|
)
|
|
$
|
0.06
|
|
|
$
|
0.07
|
|
(In thousands)
|
Americas
|
|
International
|
|
Corporate and other reconciling items
|
|
Consolidated
|
||||||||
Year Ended December 31, 2019
|
|
|
|
|
|
|
|
||||||||
Revenue(1)
|
$
|
1,273,018
|
|
|
$
|
1,410,792
|
|
|
$
|
—
|
|
|
$
|
2,683,810
|
|
Direct operating expenses
|
547,413
|
|
|
904,764
|
|
|
—
|
|
|
1,452,177
|
|
||||
Selling, general and administrative expenses
|
218,369
|
|
|
302,559
|
|
|
—
|
|
|
520,928
|
|
||||
Corporate expenses
|
—
|
|
|
—
|
|
|
144,341
|
|
|
144,341
|
|
||||
Depreciation and amortization
|
160,386
|
|
|
138,651
|
|
|
10,287
|
|
|
309,324
|
|
||||
Impairment charges
|
—
|
|
|
—
|
|
|
5,300
|
|
|
5,300
|
|
||||
Other operating income, net
|
—
|
|
|
—
|
|
|
1,162
|
|
|
1,162
|
|
||||
Operating income (loss)
|
$
|
346,850
|
|
|
$
|
64,818
|
|
|
$
|
(158,766
|
)
|
|
$
|
252,902
|
|
Segment assets(2)
|
$
|
3,644,934
|
|
|
$
|
2,367,997
|
|
|
$
|
380,357
|
|
|
$
|
6,393,288
|
|
Capital expenditures
|
$
|
82,707
|
|
|
$
|
135,982
|
|
|
$
|
13,775
|
|
|
$
|
232,464
|
|
Share-based compensation expense
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
15,770
|
|
|
$
|
15,770
|
|
|
|
|
|
|
|
|
|
||||||||
Year Ended December 31, 2018
|
|
|
|
|
|
|
|
||||||||
Revenue(1)
|
$
|
1,189,348
|
|
|
$
|
1,532,357
|
|
|
$
|
—
|
|
|
$
|
2,721,705
|
|
Direct operating expenses
|
524,659
|
|
|
946,009
|
|
|
—
|
|
|
1,470,668
|
|
||||
Selling, general and administrative expenses
|
199,688
|
|
|
323,230
|
|
|
—
|
|
|
522,918
|
|
||||
Corporate expenses
|
—
|
|
|
—
|
|
|
152,090
|
|
|
152,090
|
|
||||
Depreciation and amortization
|
166,806
|
|
|
148,199
|
|
|
3,947
|
|
|
318,952
|
|
||||
Impairment charges
|
—
|
|
|
—
|
|
|
7,772
|
|
|
7,772
|
|
||||
Other operating income, net
|
—
|
|
|
—
|
|
|
2,498
|
|
|
2,498
|
|
||||
Operating income (loss)
|
$
|
298,195
|
|
|
$
|
114,919
|
|
|
$
|
(161,311
|
)
|
|
$
|
251,803
|
|
Segment assets(2)
|
$
|
2,782,662
|
|
|
$
|
1,568,346
|
|
|
$
|
171,020
|
|
|
$
|
4,522,028
|
|
Capital expenditures
|
$
|
76,867
|
|
|
$
|
129,962
|
|
|
$
|
4,250
|
|
|
$
|
211,079
|
|
Share-based compensation expense
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
8,517
|
|
|
$
|
8,517
|
|
|
|
|
|
|
|
|
|
||||||||
Year Ended December 31, 2017
|
|
|
|
|
|
|
|
||||||||
Revenue(1)
|
$
|
1,161,059
|
|
|
$
|
1,427,643
|
|
|
$
|
—
|
|
|
$
|
2,588,702
|
|
Direct operating expenses
|
527,536
|
|
|
882,231
|
|
|
—
|
|
|
1,409,767
|
|
||||
Selling, general and administrative expenses
|
197,390
|
|
|
301,823
|
|
|
—
|
|
|
499,213
|
|
||||
Corporate expenses
|
—
|
|
|
—
|
|
|
143,678
|
|
|
143,678
|
|
||||
Depreciation and amortization
|
179,119
|
|
|
141,812
|
|
|
5,060
|
|
|
325,991
|
|
||||
Impairment charges
|
—
|
|
|
—
|
|
|
4,159
|
|
|
4,159
|
|
||||
Other operating income, net
|
—
|
|
|
—
|
|
|
26,391
|
|
|
26,391
|
|
||||
Operating income (loss)
|
$
|
257,014
|
|
|
$
|
101,777
|
|
|
$
|
(126,506
|
)
|
|
$
|
232,285
|
|
Segment assets(2)
|
$
|
2,850,303
|
|
|
$
|
1,568,388
|
|
|
$
|
252,091
|
|
|
$
|
4,670,782
|
|
Capital expenditures
|
$
|
70,936
|
|
|
$
|
150,036
|
|
|
$
|
3,266
|
|
|
$
|
224,238
|
|
Share-based compensation expense
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
9,590
|
|
|
$
|
9,590
|
|
(1)
|
Refer to Note 2 to the Consolidated Financial Statements for information about revenue by geographical region, including the U.S., Other Americas, Europe and Asia-Pacific, for each of the years ended December 31, 2019, 2018 and 2017.
|
(2)
|
The Company's consolidated segment assets at December 31, 2019, 2018 and 2017 include identifiable long-lived assets in the Company's U.S. operations of $0.7 billion, $0.7 billion and $0.8 billion, respectively, and identifiable long-lived assets in the Company's foreign operations of $0.5 billion, $0.6 billion and $0.6 billion, respectively, including identifiable long-lived assets in China of $0.2 billion, $0.2 billion and $0.3 billion, respectively.
|
(In thousands)
|
December 31, 2019
|
||||||||||||||||||||||
|
Parent
|
|
Subsidiary
|
|
Guarantor
|
|
Non-Guarantor
|
|
|
|
|
||||||||||||
|
Company
|
|
Issuer
|
|
Subsidiaries
|
|
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
Cash and cash equivalents
|
$
|
270,353
|
|
|
—
|
|
|
$
|
17,420
|
|
|
$
|
111,085
|
|
|
$
|
—
|
|
|
398,858
|
|
||
Accounts receivable, net of allowance
|
—
|
|
|
—
|
|
|
238,380
|
|
|
471,305
|
|
|
—
|
|
|
709,685
|
|
||||||
Intercompany receivables
|
3,787,955
|
|
|
—
|
|
|
—
|
|
|
2,348,650
|
|
|
(6,136,605
|
)
|
|
—
|
|
||||||
Prepaid expenses
|
815
|
|
|
—
|
|
|
24,018
|
|
|
35,760
|
|
|
—
|
|
|
60,593
|
|
||||||
Other current assets
|
—
|
|
|
|
|
2,155
|
|
|
30,600
|
|
|
—
|
|
|
32,755
|
|
|||||||
Total Current Assets
|
4,059,123
|
|
|
—
|
|
|
281,973
|
|
|
2,997,400
|
|
|
(6,136,605
|
)
|
|
1,201,891
|
|
||||||
Structures, net
|
—
|
|
|
—
|
|
|
531,637
|
|
|
421,908
|
|
|
—
|
|
|
953,545
|
|
||||||
Other property, plant and equipment, net
|
—
|
|
|
—
|
|
|
137,765
|
|
|
119,844
|
|
|
—
|
|
|
257,609
|
|
||||||
Indefinite-lived permits
|
—
|
|
|
—
|
|
|
965,863
|
|
|
—
|
|
|
—
|
|
|
965,863
|
|
||||||
Other intangibles, net
|
—
|
|
|
—
|
|
|
300,597
|
|
|
26,068
|
|
|
—
|
|
|
326,665
|
|
||||||
Goodwill
|
—
|
|
|
—
|
|
|
507,819
|
|
|
196,339
|
|
|
—
|
|
|
704,158
|
|
||||||
Operating lease right-of-use assets
|
—
|
|
|
—
|
|
|
994,919
|
|
|
890,563
|
|
|
—
|
|
|
1,885,482
|
|
||||||
Intercompany investments and notes receivable
|
(2,935,402
|
)
|
|
5,021,602
|
|
|
(1,269,023
|
)
|
|
50,914
|
|
|
(868,091
|
)
|
|
—
|
|
||||||
Other assets
|
—
|
|
|
—
|
|
|
25,153
|
|
|
72,922
|
|
|
—
|
|
|
98,075
|
|
||||||
Total Assets
|
$
|
1,123,721
|
|
|
$
|
5,021,602
|
|
|
$
|
2,476,703
|
|
|
$
|
4,775,958
|
|
|
$
|
(7,004,696
|
)
|
|
$
|
6,393,288
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Accounts payable
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
33,694
|
|
|
$
|
60,894
|
|
|
$
|
—
|
|
|
$
|
94,588
|
|
Intercompany payables
|
—
|
|
|
4,355,123
|
|
|
1,781,482
|
|
|
—
|
|
|
(6,136,605
|
)
|
|
—
|
|
||||||
Accrued expenses
|
412
|
|
|
—
|
|
|
117,895
|
|
|
385,632
|
|
|
—
|
|
|
503,939
|
|
||||||
Current operating lease liabilities
|
—
|
|
|
—
|
|
|
107,583
|
|
|
280,299
|
|
|
—
|
|
|
387,882
|
|
||||||
Deferred revenue
|
—
|
|
|
—
|
|
|
47,569
|
|
|
36,466
|
|
|
—
|
|
|
84,035
|
|
||||||
Accrued interest
|
82,045
|
|
|
7,817
|
|
|
92
|
|
|
(168
|
)
|
|
—
|
|
|
89,786
|
|
||||||
Current portion of long-term debt
|
20,000
|
|
|
—
|
|
|
289
|
|
|
5
|
|
|
—
|
|
|
20,294
|
|
||||||
Total Current Liabilities
|
102,457
|
|
|
4,362,940
|
|
|
2,088,604
|
|
|
763,128
|
|
|
(6,136,605
|
)
|
|
1,180,524
|
|
||||||
Long-term debt
|
3,178,171
|
|
|
1,881,684
|
|
|
3,844
|
|
|
25
|
|
|
—
|
|
|
5,063,724
|
|
||||||
Mandatorily-redeemable preferred stock
|
44,912
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
44,912
|
|
||||||
Non-current operating lease liabilities
|
—
|
|
|
—
|
|
|
909,675
|
|
|
650,068
|
|
|
—
|
|
|
1,559,743
|
|
||||||
Deferred tax liability
|
—
|
|
|
—
|
|
|
432,302
|
|
|
(16,236
|
)
|
|
—
|
|
|
416,066
|
|
||||||
Intercompany notes payable
|
5,551
|
|
|
80,146
|
|
|
2,078,836
|
|
|
277,448
|
|
|
(2,441,981
|
)
|
|
—
|
|
||||||
Other long-term liabilities
|
150
|
|
|
—
|
|
|
80,870
|
|
|
102,005
|
|
|
—
|
|
|
183,025
|
|
||||||
Total stockholders' equity (deficit)
|
(2,207,520
|
)
|
|
(1,303,168
|
)
|
|
(3,117,428
|
)
|
|
2,999,520
|
|
|
1,573,890
|
|
|
(2,054,706
|
)
|
||||||
Total Liabilities and Stockholders' Equity (Deficit)
|
$
|
1,123,721
|
|
|
$
|
5,021,602
|
|
|
$
|
2,476,703
|
|
|
$
|
4,775,958
|
|
|
$
|
(7,004,696
|
)
|
|
$
|
6,393,288
|
|
(In thousands)
|
December 31, 2018
|
||||||||||||||||||||||
|
Parent
|
|
Subsidiary
|
|
Guarantor
|
|
Non-Guarantor
|
|
|
|
|
||||||||||||
|
Company
|
|
Issuer
|
|
Subsidiaries
|
|
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
Cash and cash equivalents
|
$
|
1,560
|
|
|
$
|
—
|
|
|
$
|
18,721
|
|
|
$
|
162,175
|
|
|
$
|
—
|
|
|
$
|
182,456
|
|
Accounts receivable, net of allowance
|
—
|
|
|
—
|
|
|
226,231
|
|
|
480,078
|
|
|
—
|
|
|
706,309
|
|
||||||
Intercompany receivables
|
65,454
|
|
|
—
|
|
|
1,434,610
|
|
|
2,303,736
|
|
|
(3,803,800
|
)
|
|
—
|
|
||||||
Prepaid expenses
|
329
|
|
|
1,211
|
|
|
52,052
|
|
|
42,142
|
|
|
—
|
|
|
95,734
|
|
||||||
Other current assets
|
—
|
|
|
—
|
|
|
2,858
|
|
|
28,443
|
|
|
—
|
|
|
31,301
|
|
||||||
Total Current Assets
|
67,343
|
|
|
1,211
|
|
|
1,734,472
|
|
|
3,016,574
|
|
|
(3,803,800
|
)
|
|
1,015,800
|
|
||||||
Structures, net
|
—
|
|
|
—
|
|
|
594,456
|
|
|
458,560
|
|
|
—
|
|
|
1,053,016
|
|
||||||
Other property, plant and equipment, net
|
—
|
|
|
—
|
|
|
127,449
|
|
|
108,473
|
|
|
—
|
|
|
235,922
|
|
||||||
Indefinite-lived permits
|
—
|
|
|
—
|
|
|
971,163
|
|
|
—
|
|
|
—
|
|
|
971,163
|
|
||||||
Other intangibles, net
|
—
|
|
|
—
|
|
|
235,325
|
|
|
17,537
|
|
|
—
|
|
|
252,862
|
|
||||||
Goodwill
|
—
|
|
|
—
|
|
|
507,820
|
|
|
198,183
|
|
|
—
|
|
|
706,003
|
|
||||||
Due from iHeartCommunications
|
154,758
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
154,758
|
|
||||||
Intercompany investments and notes receivable
|
(2,477,070
|
)
|
|
7,568,601
|
|
|
(1,101,301
|
)
|
|
16,273
|
|
|
(4,006,503
|
)
|
|
—
|
|
||||||
Other assets
|
1,981
|
|
|
—
|
|
|
50,057
|
|
|
80,466
|
|
|
—
|
|
|
132,504
|
|
||||||
Total Assets
|
$
|
(2,252,988
|
)
|
|
$
|
7,569,812
|
|
|
$
|
3,119,441
|
|
|
$
|
3,896,066
|
|
|
$
|
(7,810,303
|
)
|
|
$
|
4,522,028
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Accounts payable
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
30,206
|
|
|
$
|
83,508
|
|
|
$
|
—
|
|
|
$
|
113,714
|
|
Intercompany payables
|
—
|
|
|
3,781,133
|
|
|
22,667
|
|
|
—
|
|
|
(3,803,800
|
)
|
|
—
|
|
||||||
Accrued expenses
|
33,632
|
|
|
595
|
|
|
68,323
|
|
|
425,932
|
|
|
—
|
|
|
528,482
|
|
||||||
Deferred revenue
|
—
|
|
|
—
|
|
|
45,914
|
|
|
39,138
|
|
|
—
|
|
|
85,052
|
|
||||||
Accrued interest
|
—
|
|
|
1,004
|
|
|
162
|
|
|
1,175
|
|
|
—
|
|
|
2,341
|
|
||||||
Current portion of long-term debt
|
—
|
|
|
—
|
|
|
227
|
|
|
—
|
|
|
—
|
|
|
227
|
|
||||||
Total Current Liabilities
|
33,632
|
|
|
3,782,732
|
|
|
167,499
|
|
|
549,753
|
|
|
(3,803,800
|
)
|
|
729,816
|
|
||||||
Long-term debt
|
—
|
|
|
4,902,447
|
|
|
3,654
|
|
|
371,007
|
|
|
—
|
|
|
5,277,108
|
|
||||||
Deferred tax liability
|
(46,739
|
)
|
|
853
|
|
|
428,320
|
|
|
(47,419
|
)
|
|
—
|
|
|
335,015
|
|
||||||
Due to iHeartCommunications
|
21,591
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
21,591
|
|
||||||
Intercompany notes payable
|
—
|
|
|
16,273
|
|
|
5,039,419
|
|
|
264,132
|
|
|
(5,319,824
|
)
|
|
—
|
|
||||||
Other long-term liabilities
|
542
|
|
|
—
|
|
|
139,646
|
|
|
119,962
|
|
|
—
|
|
|
260,150
|
|
||||||
Total stockholders' equity (deficit)
|
(2,262,014
|
)
|
|
(1,132,493
|
)
|
|
(2,659,097
|
)
|
|
2,638,631
|
|
|
1,313,321
|
|
|
(2,101,652
|
)
|
||||||
Total Liabilities and Stockholders' Equity (Deficit)
|
$
|
(2,252,988
|
)
|
|
$
|
7,569,812
|
|
|
$
|
3,119,441
|
|
|
$
|
3,896,066
|
|
|
$
|
(7,810,303
|
)
|
|
$
|
4,522,028
|
|
(In thousands)
|
Year Ended December 31, 2019
|
||||||||||||||||||||||
|
Parent
|
|
Subsidiary
|
|
Guarantor
|
|
Non-Guarantor
|
|
|
|
|
||||||||||||
|
Company
|
|
Issuer
|
|
Subsidiaries
|
|
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
Revenue
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,263,657
|
|
|
$
|
1,420,153
|
|
|
$
|
—
|
|
|
$
|
2,683,810
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Direct operating expenses
|
—
|
|
|
—
|
|
|
541,417
|
|
|
910,760
|
|
|
—
|
|
|
1,452,177
|
|
||||||
Selling, general and administrative expenses
|
—
|
|
|
—
|
|
|
217,201
|
|
|
303,727
|
|
|
—
|
|
|
520,928
|
|
||||||
Corporate expenses
|
5,274
|
|
|
—
|
|
|
86,389
|
|
|
52,678
|
|
|
—
|
|
|
144,341
|
|
||||||
Depreciation and amortization
|
—
|
|
|
—
|
|
|
169,616
|
|
|
139,708
|
|
|
—
|
|
|
309,324
|
|
||||||
Impairment charges
|
—
|
|
|
—
|
|
|
5,300
|
|
|
—
|
|
|
—
|
|
|
5,300
|
|
||||||
Other operating income (expense), net
|
(712
|
)
|
|
—
|
|
|
1,559
|
|
|
315
|
|
|
—
|
|
|
1,162
|
|
||||||
Operating income (loss)
|
(5,986
|
)
|
|
—
|
|
|
245,293
|
|
|
13,595
|
|
|
—
|
|
|
252,902
|
|
||||||
Interest expense, net
|
127,062
|
|
|
268,145
|
|
|
(1,288
|
)
|
|
24,265
|
|
|
—
|
|
|
418,184
|
|
||||||
Interest expense on Due to iHeartCommunications
|
(1,334
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,334
|
)
|
||||||
Intercompany interest income (expense), net
|
18,603
|
|
|
283,876
|
|
|
(276,787
|
)
|
|
(25,692
|
)
|
|
—
|
|
|
—
|
|
||||||
Loss on Due from iHeartCommunications
|
(5,778
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,778
|
)
|
||||||
Loss on extinguishment of debt
|
—
|
|
|
(88,996
|
)
|
|
(1,788
|
)
|
|
(10,961
|
)
|
|
—
|
|
|
(101,745
|
)
|
||||||
Equity in earnings (loss) of nonconsolidated affiliates
|
(241,747
|
)
|
|
(101,052
|
)
|
|
(172,108
|
)
|
|
(323
|
)
|
|
515,594
|
|
|
364
|
|
||||||
Other income (expense), net
|
—
|
|
|
(4,852
|
)
|
|
(37,778
|
)
|
|
26,882
|
|
|
—
|
|
|
(15,748
|
)
|
||||||
Loss before income taxes
|
(363,304
|
)
|
|
(179,169
|
)
|
|
(241,880
|
)
|
|
(20,764
|
)
|
|
515,594
|
|
|
(289,523
|
)
|
||||||
Income tax benefit (expense)
|
—
|
|
|
—
|
|
|
132
|
|
|
(72,386
|
)
|
|
—
|
|
|
(72,254
|
)
|
||||||
Net loss
|
(363,304
|
)
|
|
(179,169
|
)
|
|
(241,748
|
)
|
|
(93,150
|
)
|
|
515,594
|
|
|
(361,777
|
)
|
||||||
Less amount attributable to noncontrolling interest
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
1,528
|
|
|
—
|
|
|
1,527
|
|
||||||
Net loss attributable to the Company
|
$
|
(363,304
|
)
|
|
$
|
(179,169
|
)
|
|
$
|
(241,747
|
)
|
|
$
|
(94,678
|
)
|
|
$
|
515,594
|
|
|
$
|
(363,304
|
)
|
Other comprehensive income (loss), net of tax:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign currency translation adjustments
|
—
|
|
|
—
|
|
|
(418
|
)
|
|
(4,384
|
)
|
|
—
|
|
|
(4,802
|
)
|
||||||
Other adjustments to comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,948
|
)
|
|
—
|
|
|
(2,948
|
)
|
||||||
Reclassification adjustments
|
—
|
|
|
—
|
|
|
—
|
|
|
1,290
|
|
|
—
|
|
|
1,290
|
|
||||||
Equity in subsidiary comprehensive income (loss)
|
(5,063
|
)
|
|
(6,119
|
)
|
|
(4,645
|
)
|
|
—
|
|
|
15,827
|
|
|
—
|
|
||||||
Comprehensive loss
|
(368,367
|
)
|
|
(185,288
|
)
|
|
(246,810
|
)
|
|
(100,720
|
)
|
|
531,421
|
|
|
(369,764
|
)
|
||||||
Less amount attributable to noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,397
|
)
|
|
—
|
|
|
(1,397
|
)
|
||||||
Comprehensive loss attributable to the Company
|
$
|
(368,367
|
)
|
|
$
|
(185,288
|
)
|
|
$
|
(246,810
|
)
|
|
$
|
(99,323
|
)
|
|
$
|
531,421
|
|
|
$
|
(368,367
|
)
|
(In thousands)
|
Year Ended December 31, 2018
|
||||||||||||||||||||||
|
Parent
|
|
Subsidiary
|
|
Guarantor
|
|
Non-Guarantor
|
|
|
|
|
||||||||||||
|
Company
|
|
Issuer
|
|
Subsidiaries
|
|
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
Revenue
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,180,635
|
|
|
$
|
1,541,070
|
|
|
$
|
—
|
|
|
$
|
2,721,705
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Direct operating expenses
|
—
|
|
|
—
|
|
|
518,647
|
|
|
952,021
|
|
|
—
|
|
|
1,470,668
|
|
||||||
Selling, general and administrative expenses
|
—
|
|
|
—
|
|
|
198,784
|
|
|
324,134
|
|
|
—
|
|
|
522,918
|
|
||||||
Corporate expenses
|
5,041
|
|
|
—
|
|
|
105,550
|
|
|
41,499
|
|
|
—
|
|
|
152,090
|
|
||||||
Depreciation and amortization
|
—
|
|
|
—
|
|
|
169,712
|
|
|
149,240
|
|
|
—
|
|
|
318,952
|
|
||||||
Impairment charges
|
—
|
|
|
—
|
|
|
7,772
|
|
|
—
|
|
|
—
|
|
|
7,772
|
|
||||||
Other operating income (expense), net
|
(383
|
)
|
|
—
|
|
|
(1,086
|
)
|
|
3,967
|
|
|
—
|
|
|
2,498
|
|
||||||
Operating income (loss)
|
(5,424
|
)
|
|
—
|
|
|
179,084
|
|
|
78,143
|
|
|
—
|
|
|
251,803
|
|
||||||
Interest (income) expense, net
|
(420
|
)
|
|
352,425
|
|
|
1,747
|
|
|
34,381
|
|
|
—
|
|
|
388,133
|
|
||||||
Interest income on Due from iHeartCommunications
|
393
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
393
|
|
||||||
Intercompany interest income (expense), net
|
15,074
|
|
|
360,566
|
|
|
(354,875
|
)
|
|
(20,765
|
)
|
|
—
|
|
|
—
|
|
||||||
Equity in earnings (loss) of nonconsolidated affiliates
|
(177,019
|
)
|
|
(52,543
|
)
|
|
(42,907
|
)
|
|
(313
|
)
|
|
273,686
|
|
|
904
|
|
||||||
Other income (expense), net
|
—
|
|
|
—
|
|
|
(3,062
|
)
|
|
(32,235
|
)
|
|
—
|
|
|
(35,297
|
)
|
||||||
Loss before income taxes
|
(166,556
|
)
|
|
(44,402
|
)
|
|
(223,507
|
)
|
|
(9,551
|
)
|
|
273,686
|
|
|
(170,330
|
)
|
||||||
Income tax benefit (expense)
|
(51,684
|
)
|
|
(2,964
|
)
|
|
46,488
|
|
|
(24,355
|
)
|
|
—
|
|
|
(32,515
|
)
|
||||||
Net loss
|
(218,240
|
)
|
|
(47,366
|
)
|
|
(177,019
|
)
|
|
(33,906
|
)
|
|
273,686
|
|
|
(202,845
|
)
|
||||||
Less amount attributable to noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
15,395
|
|
|
—
|
|
|
15,395
|
|
||||||
Net loss attributable to the Company
|
$
|
(218,240
|
)
|
|
$
|
(47,366
|
)
|
|
$
|
(177,019
|
)
|
|
$
|
(49,301
|
)
|
|
$
|
273,686
|
|
|
$
|
(218,240
|
)
|
Other comprehensive income (loss), net of tax:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign currency translation adjustments
|
—
|
|
|
—
|
|
|
(2,352
|
)
|
|
(12,982
|
)
|
|
—
|
|
|
(15,334
|
)
|
||||||
Other adjustments to comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,498
|
)
|
|
—
|
|
|
(1,498
|
)
|
||||||
Reclassification adjustments
|
—
|
|
|
—
|
|
|
—
|
|
|
2,962
|
|
|
—
|
|
|
2,962
|
|
||||||
Equity in subsidiary comprehensive loss
|
(5,830
|
)
|
|
(3,507
|
)
|
|
(3,478
|
)
|
|
—
|
|
|
12,815
|
|
|
—
|
|
||||||
Comprehensive loss
|
(224,070
|
)
|
|
(50,873
|
)
|
|
(182,849
|
)
|
|
(60,819
|
)
|
|
286,501
|
|
|
(232,110
|
)
|
||||||
Less amount attributable to noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
(8,040
|
)
|
|
—
|
|
|
(8,040
|
)
|
||||||
Comprehensive loss attributable to the Company
|
$
|
(224,070
|
)
|
|
$
|
(50,873
|
)
|
|
$
|
(182,849
|
)
|
|
$
|
(52,779
|
)
|
|
$
|
286,501
|
|
|
$
|
(224,070
|
)
|
(In thousands)
|
Year Ended December 31, 2017
|
||||||||||||||||||||||
|
Parent
|
|
Subsidiary
|
|
Guarantor
|
|
Non-Guarantor
|
|
|
|
|
||||||||||||
|
Company
|
|
Issuer
|
|
Subsidiaries
|
|
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
Revenue
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,137,001
|
|
|
$
|
1,451,701
|
|
|
$
|
—
|
|
|
$
|
2,588,702
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Direct operating expenses
|
—
|
|
|
—
|
|
|
510,272
|
|
|
899,495
|
|
|
—
|
|
|
1,409,767
|
|
||||||
Selling, general and administrative expenses
|
—
|
|
|
—
|
|
|
192,491
|
|
|
306,722
|
|
|
—
|
|
|
499,213
|
|
||||||
Corporate expenses
|
14,660
|
|
|
—
|
|
|
93,232
|
|
|
35,786
|
|
|
—
|
|
|
143,678
|
|
||||||
Depreciation and amortization
|
—
|
|
|
—
|
|
|
181,905
|
|
|
144,086
|
|
|
—
|
|
|
325,991
|
|
||||||
Impairment charges
|
—
|
|
|
—
|
|
|
—
|
|
|
4,159
|
|
|
—
|
|
|
4,159
|
|
||||||
Other operating income (expense), net
|
(406
|
)
|
|
—
|
|
|
34,944
|
|
|
(8,147
|
)
|
|
—
|
|
|
26,391
|
|
||||||
Operating income (loss)
|
(15,066
|
)
|
|
—
|
|
|
194,045
|
|
|
53,306
|
|
|
—
|
|
|
232,285
|
|
||||||
Interest (income) expense, net
|
(69,285
|
)
|
|
353,082
|
|
|
68,666
|
|
|
27,238
|
|
|
—
|
|
|
379,701
|
|
||||||
Interest income on Due from iHeartCommunications
|
68,871
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
68,871
|
|
||||||
Intercompany interest income (expense), net
|
(121,393
|
)
|
|
339,519
|
|
|
(218,163
|
)
|
|
37
|
|
|
—
|
|
|
—
|
|
||||||
Loss on Due from iHeartCommunications
|
(855,648
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(855,648
|
)
|
||||||
Equity in earnings (loss) of nonconsolidated affiliates
|
114,363
|
|
|
(4,575
|
)
|
|
(22,861
|
)
|
|
(1,981
|
)
|
|
(85,936
|
)
|
|
(990
|
)
|
||||||
Other income, net
|
3,167
|
|
|
—
|
|
|
11,379
|
|
|
14,209
|
|
|
—
|
|
|
28,755
|
|
||||||
Income (loss) before income taxes
|
(736,421
|
)
|
|
(18,138
|
)
|
|
(104,266
|
)
|
|
38,333
|
|
|
(85,936
|
)
|
|
(906,428
|
)
|
||||||
Income tax benefit (expense)
|
92,073
|
|
|
2,405
|
|
|
218,629
|
|
|
(32,889
|
)
|
|
—
|
|
|
280,218
|
|
||||||
Net income (loss)
|
(644,348
|
)
|
|
(15,733
|
)
|
|
114,363
|
|
|
5,444
|
|
|
(85,936
|
)
|
|
(626,210
|
)
|
||||||
Less amount attributable to noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
18,138
|
|
|
—
|
|
|
18,138
|
|
||||||
Net income (loss) attributable to the Company
|
$
|
(644,348
|
)
|
|
$
|
(15,733
|
)
|
|
$
|
114,363
|
|
|
$
|
(12,694
|
)
|
|
$
|
(85,936
|
)
|
|
$
|
(644,348
|
)
|
Other comprehensive income, net of tax:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Foreign currency translation adjustments
|
—
|
|
|
—
|
|
|
2,188
|
|
|
41,153
|
|
|
—
|
|
|
43,341
|
|
||||||
Other adjustments to comprehensive income (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
6,306
|
|
|
—
|
|
|
6,306
|
|
||||||
Reclassification adjustments
|
—
|
|
|
—
|
|
|
—
|
|
|
5,441
|
|
|
—
|
|
|
5,441
|
|
||||||
Equity in subsidiary comprehensive income
|
46,139
|
|
|
36,123
|
|
|
43,951
|
|
|
—
|
|
|
(126,213
|
)
|
|
—
|
|
||||||
Comprehensive income (loss)
|
(598,209
|
)
|
|
20,390
|
|
|
160,502
|
|
|
40,206
|
|
|
(212,149
|
)
|
|
(589,260
|
)
|
||||||
Less amount attributable to noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
8,949
|
|
|
—
|
|
|
8,949
|
|
||||||
Comprehensive income (loss) attributable to the Company
|
$
|
(598,209
|
)
|
|
$
|
20,390
|
|
|
$
|
160,502
|
|
|
$
|
31,257
|
|
|
$
|
(212,149
|
)
|
|
$
|
(598,209
|
)
|
(In thousands)
|
Year Ended December 31, 2019
|
||||||||||||||||||||||
|
Parent
|
|
Subsidiary
|
|
Guarantor
|
|
Non-Guarantor
|
|
|
|
|
||||||||||||
|
Company
|
|
Issuer
|
|
Subsidiaries
|
|
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income (loss)
|
$
|
(363,304
|
)
|
|
$
|
(179,169
|
)
|
|
$
|
(241,748
|
)
|
|
$
|
(93,150
|
)
|
|
$
|
515,594
|
|
|
$
|
(361,777
|
)
|
Reconciling items:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Depreciation and amortization
|
—
|
|
|
—
|
|
|
169,616
|
|
|
139,708
|
|
|
—
|
|
|
309,324
|
|
||||||
Impairment charges
|
—
|
|
|
—
|
|
|
5,300
|
|
|
—
|
|
|
—
|
|
|
5,300
|
|
||||||
Deferred taxes
|
—
|
|
|
—
|
|
|
(3,914
|
)
|
|
27,981
|
|
|
—
|
|
|
24,067
|
|
||||||
Provision for doubtful accounts
|
—
|
|
|
—
|
|
|
3,570
|
|
|
2,653
|
|
|
—
|
|
|
6,223
|
|
||||||
Amortization of deferred financing charges and note discounts, net
|
2,370
|
|
|
6,638
|
|
|
2
|
|
|
1,290
|
|
|
—
|
|
|
10,300
|
|
||||||
Share-based compensation
|
—
|
|
|
—
|
|
|
15,734
|
|
|
36
|
|
|
—
|
|
|
15,770
|
|
||||||
Loss on extinguishment of debt
|
—
|
|
|
88,996
|
|
|
1,788
|
|
|
10,961
|
|
|
—
|
|
|
101,745
|
|
||||||
Loss (gain) on disposal of operating assets, net
|
—
|
|
|
—
|
|
|
(1,554
|
)
|
|
(319
|
)
|
|
—
|
|
|
(1,873
|
)
|
||||||
Loss on Due from iHeartCommunications
|
5,778
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,778
|
|
||||||
Foreign exchange transaction loss (gain)
|
—
|
|
|
—
|
|
|
—
|
|
|
2,248
|
|
|
—
|
|
|
2,248
|
|
||||||
Equity in (earnings) loss of nonconsolidated affiliates
|
241,747
|
|
|
101,052
|
|
|
172,108
|
|
|
323
|
|
|
(515,594
|
)
|
|
(364
|
)
|
||||||
Other reconciling items, net
|
—
|
|
|
—
|
|
|
(3,360
|
)
|
|
(1,454
|
)
|
|
—
|
|
|
(4,814
|
)
|
||||||
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Decrease (increase) in accounts receivable
|
—
|
|
|
—
|
|
|
(17,520
|
)
|
|
4,965
|
|
|
—
|
|
|
(12,555
|
)
|
||||||
Decrease (increase) in prepaid expenses and other current assets
|
(486
|
)
|
|
1,211
|
|
|
(22,165
|
)
|
|
(15,100
|
)
|
|
—
|
|
|
(36,540
|
)
|
||||||
Increase (decrease) in accounts payable
|
—
|
|
|
—
|
|
|
3,489
|
|
|
(17,008
|
)
|
|
—
|
|
|
(13,519
|
)
|
||||||
Increase (decrease) in accrued expenses
|
399
|
|
|
—
|
|
|
18,714
|
|
|
6,947
|
|
|
—
|
|
|
26,060
|
|
||||||
Increase (decrease) in accrued interest
|
83,121
|
|
|
6,814
|
|
|
(70
|
)
|
|
(1,314
|
)
|
|
—
|
|
|
88,551
|
|
||||||
Increase (decrease) in deferred revenue
|
—
|
|
|
—
|
|
|
4,759
|
|
|
(1,803
|
)
|
|
—
|
|
|
2,956
|
|
||||||
Changes in other operating assets and liabilities, net
|
1,599
|
|
|
—
|
|
|
25,093
|
|
|
20,954
|
|
|
—
|
|
|
47,646
|
|
||||||
Net cash provided by (used for) operating activities
|
(28,776
|
)
|
|
25,542
|
|
|
129,842
|
|
|
87,918
|
|
|
—
|
|
|
214,526
|
|
||||||
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Purchases of property, plant and equipment
|
—
|
|
|
—
|
|
|
(96,405
|
)
|
|
(124,747
|
)
|
|
—
|
|
|
(221,152
|
)
|
||||||
Purchase of concession rights
|
—
|
|
|
—
|
|
|
(19
|
)
|
|
(11,293
|
)
|
|
—
|
|
|
(11,312
|
)
|
||||||
Proceeds from disposal of assets
|
—
|
|
|
—
|
|
|
5,641
|
|
|
5,068
|
|
|
—
|
|
|
10,709
|
|
||||||
Decrease (increase) in intercompany notes receivable, net
|
—
|
|
|
2,971,462
|
|
|
—
|
|
|
—
|
|
|
(2,971,462
|
)
|
|
—
|
|
||||||
Dividends from subsidiaries
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Other investing activities, net
|
—
|
|
|
—
|
|
|
33,945
|
|
|
(32,232
|
)
|
|
—
|
|
|
1,713
|
|
||||||
Net cash used for investing activities
|
—
|
|
|
2,971,462
|
|
|
(56,838
|
)
|
|
(163,204
|
)
|
|
(2,971,462
|
)
|
|
(220,042
|
)
|
(In thousands)
|
Year Ended December 31, 2019
|
||||||||||||||||||||||
|
Parent
|
|
Subsidiary
|
|
Guarantor
|
|
Non-Guarantor
|
|
|
|
|
||||||||||||
|
Company
|
|
Issuer
|
|
Subsidiaries
|
|
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Proceeds from long-term debt
|
3,240,000
|
|
|
2,235,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,475,000
|
|
||||||
Payments on long-term debt
|
(5,000
|
)
|
|
(5,325,742
|
)
|
|
(2,031
|
)
|
|
(383,263
|
)
|
|
—
|
|
|
(5,716,036
|
)
|
||||||
Debt issuance costs
|
(37,674
|
)
|
|
(27,142
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(64,816
|
)
|
||||||
Proceeds from issuance of mandatorily-redeemable preferred stock
|
43,798
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
43,798
|
|
||||||
Net transfers from iHeartCommunications
|
43,399
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
43,399
|
|
||||||
Proceeds from settlement of Due from iHeartCommunications
|
115,798
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
115,798
|
|
||||||
Proceeds from issuance of common stock
|
333,419
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
333,419
|
|
||||||
Payments to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
(6,311
|
)
|
|
—
|
|
|
(6,311
|
)
|
||||||
Dividends paid
|
(740
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(740
|
)
|
||||||
Increase in intercompany notes payable, net
|
5,551
|
|
|
—
|
|
|
(2,989,631
|
)
|
|
12,618
|
|
|
2,971,462
|
|
|
—
|
|
||||||
Intercompany funding
|
(3,438,884
|
)
|
|
120,880
|
|
|
2,917,357
|
|
|
400,647
|
|
|
—
|
|
|
—
|
|
||||||
Other financing activities, net
|
(2,098
|
)
|
|
—
|
|
|
—
|
|
|
(1,404
|
)
|
|
—
|
|
|
(3,502
|
)
|
||||||
Net cash provided by (used for) financing activities
|
297,569
|
|
|
(2,997,004
|
)
|
|
(74,305
|
)
|
|
22,287
|
|
|
2,971,462
|
|
|
220,009
|
|
||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash
|
—
|
|
|
—
|
|
|
—
|
|
|
(287
|
)
|
|
—
|
|
|
(287
|
)
|
||||||
Net increase (decrease) in cash, cash equivalents and restricted cash
|
268,793
|
|
|
—
|
|
|
(1,301
|
)
|
|
(53,286
|
)
|
|
—
|
|
|
214,206
|
|
||||||
Cash, cash equivalents and restricted cash at beginning of year
|
1,560
|
|
|
—
|
|
|
18,720
|
|
|
182,589
|
|
|
—
|
|
|
202,869
|
|
||||||
Cash, cash equivalents and restricted cash at end of year
|
$
|
270,353
|
|
|
$
|
—
|
|
|
$
|
17,419
|
|
|
$
|
129,303
|
|
|
$
|
—
|
|
|
$
|
417,075
|
|
(In thousands)
|
Year Ended December 31, 2018
|
||||||||||||||||||||||
|
Parent
|
|
Subsidiary
|
|
Guarantor
|
|
Non-Guarantor
|
|
|
|
|
||||||||||||
|
Company
|
|
Issuer
|
|
Subsidiaries
|
|
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net loss
|
$
|
(218,240
|
)
|
|
$
|
(47,366
|
)
|
|
$
|
(177,019
|
)
|
|
$
|
(33,906
|
)
|
|
$
|
273,686
|
|
|
$
|
(202,845
|
)
|
Reconciling items:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Depreciation and amortization
|
—
|
|
|
—
|
|
|
169,712
|
|
|
149,240
|
|
|
—
|
|
|
318,952
|
|
||||||
Impairment charges
|
—
|
|
|
—
|
|
|
7,772
|
|
|
—
|
|
|
—
|
|
|
7,772
|
|
||||||
Deferred taxes
|
46,372
|
|
|
—
|
|
|
(38,507
|
)
|
|
6,530
|
|
|
—
|
|
|
14,395
|
|
||||||
Provision for doubtful accounts
|
—
|
|
|
—
|
|
|
4,384
|
|
|
3,003
|
|
|
—
|
|
|
7,387
|
|
||||||
Amortization of deferred financing charges and note discounts, net
|
—
|
|
|
8,952
|
|
|
—
|
|
|
1,778
|
|
|
—
|
|
|
10,730
|
|
||||||
Share-based compensation
|
—
|
|
|
—
|
|
|
5,383
|
|
|
3,134
|
|
|
—
|
|
|
8,517
|
|
||||||
Loss (gain) on disposal of operating assets, net
|
—
|
|
|
—
|
|
|
935
|
|
|
(4,299
|
)
|
|
—
|
|
|
(3,364
|
)
|
||||||
Foreign exchange transaction loss
|
—
|
|
|
—
|
|
|
37
|
|
|
33,543
|
|
|
—
|
|
|
33,580
|
|
||||||
Equity in (earnings) loss of nonconsolidated affiliates
|
177,019
|
|
|
52,543
|
|
|
42,907
|
|
|
313
|
|
|
(273,686
|
)
|
|
(904
|
)
|
||||||
Other reconciling items, net
|
—
|
|
|
—
|
|
|
(232
|
)
|
|
(1,324
|
)
|
|
—
|
|
|
(1,556
|
)
|
||||||
Changes in operating assets and liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Increase in accounts receivable
|
—
|
|
|
—
|
|
|
(38,121
|
)
|
|
(36,477
|
)
|
|
—
|
|
|
(74,598
|
)
|
||||||
Decrease (increase) in prepaid expenses and other current assets
|
(38
|
)
|
|
2,222
|
|
|
(8,374
|
)
|
|
8,267
|
|
|
—
|
|
|
2,077
|
|
||||||
Increase in accounts payable
|
—
|
|
|
—
|
|
|
22,612
|
|
|
6,635
|
|
|
—
|
|
|
29,247
|
|
||||||
Increase (decrease) in accrued expenses
|
32,589
|
|
|
1,910
|
|
|
(22,997
|
)
|
|
13,892
|
|
|
—
|
|
|
25,394
|
|
||||||
Increase in accrued interest
|
—
|
|
|
1,004
|
|
|
42
|
|
|
339
|
|
|
—
|
|
|
1,385
|
|
||||||
Increase in deferred revenue
|
—
|
|
|
—
|
|
|
34,070
|
|
|
7,277
|
|
|
—
|
|
|
41,347
|
|
||||||
Changes in other operating assets and liabilities, net
|
(1,982
|
)
|
|
—
|
|
|
(10,415
|
)
|
|
(17,844
|
)
|
|
—
|
|
|
(30,241
|
)
|
||||||
Net cash provided by (used for) operating activities
|
35,720
|
|
|
19,265
|
|
|
(7,811
|
)
|
|
140,101
|
|
|
—
|
|
|
187,275
|
|
||||||
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Purchases of property, plant and equipment
|
—
|
|
|
—
|
|
|
(80,716
|
)
|
|
(130,363
|
)
|
|
—
|
|
|
(211,079
|
)
|
||||||
Proceeds from disposal of assets
|
—
|
|
|
—
|
|
|
6,295
|
|
|
3,475
|
|
|
—
|
|
|
9,770
|
|
||||||
Increase in intercompany notes receivable, net
|
—
|
|
|
(28,887
|
)
|
|
—
|
|
|
(1
|
)
|
|
28,888
|
|
|
—
|
|
||||||
Dividends from subsidiaries
|
—
|
|
|
—
|
|
|
1,111
|
|
|
—
|
|
|
(1,111
|
)
|
|
—
|
|
||||||
Other investing activities, net
|
—
|
|
|
—
|
|
|
(1,786
|
)
|
|
(497
|
)
|
|
—
|
|
|
(2,283
|
)
|
||||||
Net cash used for investing activities
|
—
|
|
|
(28,887
|
)
|
|
(75,096
|
)
|
|
(127,386
|
)
|
|
27,777
|
|
|
(203,592
|
)
|
||||||
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Proceeds from long-term debt
|
—
|
|
|
—
|
|
|
444
|
|
|
(444
|
)
|
|
—
|
|
|
—
|
|
||||||
Payments on long-term debt
|
—
|
|
|
—
|
|
|
(632
|
)
|
|
—
|
|
|
—
|
|
|
(632
|
)
|
||||||
Debt issuance costs
|
—
|
|
|
(1,610
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,610
|
)
|
||||||
Net transfers from iHeartCommunications
|
78,823
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
78,823
|
|
||||||
Payments to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,505
|
)
|
|
—
|
|
|
(4,505
|
)
|
||||||
Dividends paid
|
(30,678
|
)
|
|
—
|
|
|
—
|
|
|
(1,111
|
)
|
|
1,111
|
|
|
(30,678
|
)
|
||||||
Increase in intercompany notes payable, net
|
—
|
|
|
—
|
|
|
—
|
|
|
28,888
|
|
|
(28,888
|
)
|
|
—
|
|
||||||
Intercompany funding
|
(109,246
|
)
|
|
11,232
|
|
|
78,671
|
|
|
19,343
|
|
|
—
|
|
|
—
|
|
||||||
Other financing activities, net
|
(712
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(712
|
)
|
||||||
Net cash provided by (used for) financing activities
|
(61,813
|
)
|
|
9,622
|
|
|
78,483
|
|
|
42,171
|
|
|
(27,777
|
)
|
|
40,686
|
|
(In thousands)
|
Year Ended December 31, 2018
|
||||||||||||||||||||||
|
Parent
|
|
Subsidiary
|
|
Guarantor
|
|
Non-Guarantor
|
|
|
|
|
||||||||||||
|
Company
|
|
Issuer
|
|
Subsidiaries
|
|
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash
|
—
|
|
|
—
|
|
|
—
|
|
|
(9,810
|
)
|
|
—
|
|
|
(9,810
|
)
|
||||||
Net increase (decrease) in cash, cash equivalents and restricted cash
|
(26,093
|
)
|
|
—
|
|
|
(4,424
|
)
|
|
45,076
|
|
|
—
|
|
|
14,559
|
|
||||||
Cash, cash equivalents and restricted cash at beginning of year
|
27,653
|
|
|
—
|
|
|
23,144
|
|
|
137,513
|
|
|
—
|
|
|
188,310
|
|
||||||
Cash, cash equivalents and restricted cash at end of year
|
$
|
1,560
|
|
|
$
|
—
|
|
|
$
|
18,720
|
|
|
$
|
182,589
|
|
|
$
|
—
|
|
|
$
|
202,869
|
|
(In thousands)
|
Year Ended December 31, 2017
|
||||||||||||||||||||||
|
Parent
|
|
Subsidiary
|
|
Guarantor
|
|
Non-Guarantor
|
|
|
|
|
||||||||||||
|
Company
|
|
Issuer
|
|
Subsidiaries
|
|
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net income (loss)
|
$
|
(644,348
|
)
|
|
$
|
(15,733
|
)
|
|
$
|
114,363
|
|
|
$
|
5,444
|
|
|
$
|
(85,936
|
)
|
|
$
|
(626,210
|
)
|
Reconciling items:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Depreciation and amortization
|
—
|
|
|
—
|
|
|
181,905
|
|
|
144,086
|
|
|
—
|
|
|
325,991
|
|
||||||
Impairment charges
|
—
|
|
|
—
|
|
|
—
|
|
|
4,159
|
|
|
—
|
|
|
4,159
|
|
||||||
Deferred taxes
|
(93,882
|
)
|
|
(514
|
)
|
|
(218,955
|
)
|
|
2,266
|
|
|
—
|
|
|
(311,085
|
)
|
||||||
Provision for doubtful accounts
|
—
|
|
|
—
|
|
|
10,083
|
|
|
(3,343
|
)
|
|
—
|
|
|
6,740
|
|
||||||
Amortization of deferred financing charges and note discounts, net
|
—
|
|
|
8,786
|
|
|
—
|
|
|
1,741
|
|
|
—
|
|
|
10,527
|
|
||||||
Share-based compensation
|
—
|
|
|
—
|
|
|
6,432
|
|
|
3,158
|
|
|
—
|
|
|
9,590
|
|
||||||
Loss (gain) on disposal of operating and other assets, net
|
—
|
|
|
—
|
|
|
(35,020
|
)
|
|
5,673
|
|
|
—
|
|
|
(29,347
|
)
|
||||||
Loss on Due from iHeartCommunications
|
855,648
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
855,648
|
|
||||||
Foreign exchange transaction loss
|
—
|
|
|
—
|
|
|
(27
|
)
|
|
(29,536
|
)
|
|
—
|
|
|
(29,563
|
)
|
||||||
Equity in (earnings) loss of nonconsolidated affiliates
|
(114,363
|
)
|
|
4,575
|
|
|
22,861
|
|
|
1,981
|
|
|
85,936
|
|
|
990
|
|
||||||
Other reconciling items, net
|
—
|
|
|
—
|
|
|
(3,419
|
)
|
|
(246
|
)
|
|
—
|
|
|
(3,665
|
)
|
||||||
Changes in operating assets and liabilities, net of effects of acquisitions and dispositions:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Increase in accounts receivable
|
—
|
|
|
—
|
|
|
(9,104
|
)
|
|
(30,686
|
)
|
|
—
|
|
|
(39,790
|
)
|
||||||
Decrease in prepaid expenses and other current assets
|
1,072
|
|
|
—
|
|
|
2,409
|
|
|
6,127
|
|
|
—
|
|
|
9,608
|
|
||||||
Increase (decrease) in accounts payable
|
—
|
|
|
—
|
|
|
(7,314
|
)
|
|
3,188
|
|
|
—
|
|
|
(4,126
|
)
|
||||||
Increase (decrease) in accrued expenses
|
(434
|
)
|
|
(59,968
|
)
|
|
56,885
|
|
|
(3,799
|
)
|
|
—
|
|
|
(7,316
|
)
|
||||||
Increase (decrease) in accrued interest
|
—
|
|
|
—
|
|
|
(77
|
)
|
|
508
|
|
|
—
|
|
|
431
|
|
||||||
Decrease in deferred revenue
|
—
|
|
|
—
|
|
|
(8,402
|
)
|
|
(4,871
|
)
|
|
—
|
|
|
(13,273
|
)
|
||||||
Changes in other operating assets and liabilities, net
|
—
|
|
|
—
|
|
|
(3,067
|
)
|
|
3,876
|
|
|
—
|
|
|
809
|
|
||||||
Net cash provided by (used for) operating activities
|
3,693
|
|
|
(62,854
|
)
|
|
109,553
|
|
|
109,726
|
|
|
—
|
|
|
160,118
|
|
||||||
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Purchases of property, plant and equipment
|
—
|
|
|
—
|
|
|
(73,641
|
)
|
|
(150,597
|
)
|
|
—
|
|
|
(224,238
|
)
|
||||||
Proceeds from disposal of assets
|
—
|
|
|
—
|
|
|
63,731
|
|
|
8,318
|
|
|
—
|
|
|
72,049
|
|
||||||
Decrease (increase) in intercompany notes receivable, net
|
—
|
|
|
149,612
|
|
|
11
|
|
|
(11,284
|
)
|
|
(138,339
|
)
|
|
—
|
|
||||||
Dividends from subsidiaries
|
—
|
|
|
—
|
|
|
10,710
|
|
|
—
|
|
|
(10,710
|
)
|
|
—
|
|
||||||
Other investing activities, net
|
—
|
|
|
—
|
|
|
(8,744
|
)
|
|
6,411
|
|
|
—
|
|
|
(2,333
|
)
|
||||||
Net cash provided by (used for) investing activities
|
—
|
|
|
149,612
|
|
|
(7,933
|
)
|
|
(147,152
|
)
|
|
(149,049
|
)
|
|
(154,522
|
)
|
||||||
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Payments on credit facilities
|
—
|
|
|
—
|
|
|
—
|
|
|
(909
|
)
|
|
—
|
|
|
(909
|
)
|
||||||
Proceeds from long-term debt
|
—
|
|
|
—
|
|
|
—
|
|
|
156,000
|
|
|
—
|
|
|
156,000
|
|
||||||
Payments on long-term debt
|
—
|
|
|
—
|
|
|
(100
|
)
|
|
(648
|
)
|
|
—
|
|
|
(748
|
)
|
||||||
Debt issuance costs
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
(4,386
|
)
|
|
—
|
|
|
(4,387
|
)
|
||||||
Net transfers to iHeartCommunications
|
(181,939
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(181,939
|
)
|
||||||
Payments to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
(12,010
|
)
|
|
—
|
|
|
(12,010
|
)
|
||||||
Dividends paid
|
(332,824
|
)
|
|
—
|
|
|
—
|
|
|
(10,710
|
)
|
|
10,710
|
|
|
(332,824
|
)
|
||||||
Increase (decrease) in intercompany notes payable, net
|
—
|
|
|
11,273
|
|
|
—
|
|
|
(149,612
|
)
|
|
138,339
|
|
|
—
|
|
||||||
Intercompany funding
|
239,906
|
|
|
(98,031
|
)
|
|
(140,250
|
)
|
|
(1,625
|
)
|
|
—
|
|
|
—
|
|
||||||
Other financing activities, net
|
(1,468
|
)
|
|
—
|
|
|
—
|
|
|
(1,228
|
)
|
|
—
|
|
|
(2,696
|
)
|
||||||
Net cash used for financing activities
|
(276,325
|
)
|
|
(86,758
|
)
|
|
(140,351
|
)
|
|
(25,128
|
)
|
|
149,049
|
|
|
(379,513
|
)
|
(In thousands)
|
Year Ended December 31, 2017
|
||||||||||||||||||||||
|
Parent
|
|
Subsidiary
|
|
Guarantor
|
|
Non-Guarantor
|
|
|
|
|
||||||||||||
|
Company
|
|
Issuer
|
|
Subsidiaries
|
|
Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash
|
—
|
|
|
—
|
|
|
4
|
|
|
9,532
|
|
|
—
|
|
|
9,536
|
|
||||||
Net decrease in cash, cash equivalents and restricted cash
|
(272,632
|
)
|
|
—
|
|
|
(38,727
|
)
|
|
(53,022
|
)
|
|
—
|
|
|
(364,381
|
)
|
||||||
Cash, cash equivalents and restricted cash at beginning of year
|
300,285
|
|
|
—
|
|
|
61,871
|
|
|
190,535
|
|
|
—
|
|
|
552,691
|
|
||||||
Cash, cash equivalents and restricted cash at end of year
|
$
|
27,653
|
|
|
$
|
—
|
|
|
$
|
23,144
|
|
|
$
|
137,513
|
|
|
$
|
—
|
|
|
$
|
188,310
|
|
Plan Category
|
|
Number of Securities to be issued upon exercise of outstanding options, warrants and rights Column (A)
|
|
Weighted-Average exercise price of outstanding options, warrants and rights
(1)
|
|
Number of Securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (A))
|
||||
Equity Compensation Plans approved by security holders(2)
|
|
11,800,805(3)
|
|
|
$
|
5.38
|
|
|
18,411,313
|
|
Equity Compensation Plans not approved by security holders
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Total
|
|
11,800,805
|
|
|
$
|
5.38
|
|
|
18,411,313
|
|
(1)
|
The weighted-average exercise price is calculated based solely on the exercise prices of the outstanding options and does not reflect the shares that will be issued upon the vesting of outstanding awards of RSUs or PSUs, which have no exercise price.
|
(2)
|
Represents the 2005 Stock Incentive Plan and the 2012 Stock Incentive Plan. The 2005 Stock Incentive Plan automatically terminated (other than with respect to outstanding awards) upon stockholder approval of the 2012 Stock Incentive Plan at our Annual Meeting of Stockholders on May 18, 2012 and, as a result, there are no shares available for grant under the 2005 Stock Incentive Plan.
|
(3)
|
This number includes shares subject to outstanding awards granted, of which 4,872,438 shares are subject to outstanding options, 5,412,620 shares are subject are subject to outstanding time-based RSUs, and 1,515,747 shares are subject to performance awards, assuming the maximum level of performance is achieved. 2,946,459 shares subject to outstanding restricted stock awards have been excluded.
|
•
|
Consolidated Balance Sheets as of December 31, 2019 and 2018.
|
•
|
Consolidated Statements of Comprehensive Income (Loss) for the Years Ended December 31, 2019, 2018 and 2017.
|
•
|
Consolidated Statements of Changes in Stockholders’ Equity (Deficit) for the Years Ended December 31, 2019, 2018 and 2017.
|
•
|
Consolidated Statements of Cash Flows for the Years Ended December 31, 2019, 2018 and 2017.
|
•
|
Notes to Consolidated Financial Statements
|
(In thousands)
|
|
|
|
Charges
|
|
|
|
|
|
|
||||||||||
|
|
Balance at
|
|
to Costs,
|
|
Write-off
|
|
|
|
Balance
|
||||||||||
|
|
Beginning
|
|
Expenses
|
|
of Accounts
|
|
|
|
at End of
|
||||||||||
Description
|
|
of period
|
|
and other
|
|
Receivable
|
|
Other(1)
|
|
Period
|
||||||||||
Year Ended December 31, 2017
|
|
$
|
22,398
|
|
|
$
|
6,740
|
|
|
$
|
8,057
|
|
|
$
|
1,406
|
|
|
$
|
22,487
|
|
Year Ended December 31, 2018
|
|
$
|
22,487
|
|
|
$
|
7,387
|
|
|
$
|
4,707
|
|
|
$
|
(943
|
)
|
|
$
|
24,224
|
|
Year Ended December 31, 2019
|
|
$
|
24,224
|
|
|
$
|
6,223
|
|
|
$
|
6,392
|
|
|
$
|
(269
|
)
|
|
$
|
23,786
|
|
(1)
|
Primarily foreign currency adjustments and acquisition and/or divestiture activity.
|
(In thousands)
|
|
|
|
Charges
|
|
|
|
|
|
|
||||||||||
|
|
Balance at
|
|
to Costs,
|
|
|
|
|
|
Balance
|
||||||||||
|
|
Beginning
|
|
Expenses
|
|
|
|
|
|
at end of
|
||||||||||
Description
|
|
of Period
|
|
and other(1)
|
|
Reversal(2)
|
|
Adjustments(3)
|
|
Period
|
||||||||||
Year Ended December 31, 2017
|
|
$
|
136,039
|
|
|
$
|
158,857
|
|
|
$
|
(12,155
|
)
|
|
$
|
(8,522
|
)
|
|
$
|
274,219
|
|
Year Ended December 31, 2018
|
|
$
|
274,219
|
|
|
$
|
60,522
|
|
|
$
|
(2,835
|
)
|
|
$
|
(15,224
|
)
|
|
$
|
316,682
|
|
Year Ended December 31, 2019
|
|
$
|
316,682
|
|
|
$
|
105,935
|
|
|
$
|
(2,443
|
)
|
|
$
|
(127,235
|
)
|
|
$
|
292,939
|
|
(1)
|
During 2017, 2018 and 2019, the Company recorded valuation allowances on deferred tax assets attributable to net operating losses in certain foreign jurisdictions due to the uncertainty of the ability to utilize those losses in future periods. During 2019, the Company recorded $49.2 million in valuation allowance related to federal and state deferred tax assets and $56.8 million in valuation allowance on foreign deferred tax assets due to the uncertainty of the ability to utilize these assets in future periods.
|
(2)
|
During 2017, 2018 and 2019, the Company realized the tax benefits associated with certain foreign deferred tax assets, primarily related to foreign loss carryforwards, on which a valuation allowance was previously recorded. The associated valuation allowance was reversed in the period in which, based on the weight of available evidence, it is more-likely-than-not that the deferred tax asset will be realized.
|
(3)
|
During 2017, 2018 and 2019, the Company adjusted certain valuation allowances as a result of changes in tax rates in certain jurisdictions as a result of the expiration of carryforward periods for net operating loss carryforwards, and as a result of foreign exchange rate movements. Also, in 2019 the Company recorded a reduction in valuation allowance totaling $124.6 million to adjust for the reduction in deferred tax assets attributed to federal NOL carryforwards and certain state NOL carryforwards at the time of separation from iHeartMedia.
|
Exhibit Number
|
|
Description
|
2.1
|
|
|
3.1
|
|
|
3.2
|
|
|
4.1
|
|
|
4.2
|
|
|
4.3
|
|
|
4.4
|
|
|
4.5
|
|
|
4.6
|
|
|
4.7
|
|
|
4.8
|
|
|
4.9*
|
|
|
10.1§
|
|
|
10.2§
|
|
|
10.3§
|
|
|
10.4§
|
|
|
10.5§
|
|
|
10.6§
|
|
|
10.7§
|
|
Exhibit Number
|
|
Description
|
10.8§
|
|
|
10.9§
|
|
|
10.10§
|
|
|
10.11§
|
|
|
10.12§
|
|
|
10.13§
|
|
|
10.14§
|
|
|
10.15§
|
|
|
10.16§
|
|
|
10.17§
|
|
|
10.18§
|
|
|
10.19§
|
|
|
10.20§
|
|
|
10.21§
|
|
|
10.22§
|
|
|
10.23§
|
|
|
10.24§
|
|
|
10.25§
|
|
|
10.26
|
|
Exhibit Number
|
|
Description
|
10.27
|
|
|
10.28
|
|
|
10.29
|
|
|
10.30
|
|
|
10.31§
|
|
|
10.32§
|
|
|
10.33§
|
|
|
10.34*§
|
|
|
10.35§
|
|
|
10.36§
|
|
|
10.37
|
|
|
10.38§
|
|
|
10.39§
|
|
|
10.40§
|
|
|
10.41§
|
|
|
10.42
|
|
|
10.43
|
|
Exhibit Number
|
|
Description
|
10.44
|
|
|
10.45
|
|
|
21*
|
|
|
23*
|
|
|
24*
|
|
|
31.1*
|
|
|
31.2*
|
|
|
32.1**
|
|
|
32.2**
|
|
|
101.INS*
|
|
XBRL Instance Document.
|
101.SCH*
|
|
XBRL Taxonomy Extension Schema Document.
|
101.CAL*
|
|
XBRL Taxonomy Extension Calculation Linkbase Document.
|
101.DEF*
|
|
XBRL Taxonomy Extension Definition Linkbase Document.
|
101.LAB*
|
|
XBRL Taxonomy Extension Label Linkbase Document.
|
101.PRE*
|
|
XBRL Taxonomy Extension Presentation Linkbase Document.
|
Name
|
Title
|
Date
|
/s/ C. William Eccleshare
C. William Eccleshare
|
Chief Executive Officer and Director (Principal Executive Officer)
|
February 27, 2020
|
/s/ Brian Coleman
Brian Coleman
|
Chief Financial Officer (Principal Financial Officer)
|
February 27, 2020
|
/s/ Jason Dilger
Jason Dilger
|
Chief Accounting Officer (Principal Accounting Officer)
|
February 27, 2020
|
/s/ John Dionne
John Dionne
|
Director
|
February 27, 2020
|
/s/ Lisa Hammitt
Lisa Hammitt
|
Director
|
February 27, 2020
|
/s/ Andrew Hobson
Andrew Hobson
|
Director
|
February 27, 2020
|
/s/ Thomas C. King
Thomas C. King
|
Director
|
February 27, 2020
|
/s/ Joe Marchese
Joe Marchese
|
Director
|
February 27, 2020
|
/s/ W. Benjamin Moreland
W. Benjamin Moreland
|
Director
|
February 27, 2020
|
/s/ Mary Teresa Rainey
Mary Teresa Rainey
|
Director
|
February 27, 2020
|
/s/ Jinhy Yoon
Jinhy Yoon
|
Director
|
February 27, 2020
|
•
|
acquisition of us by means of a tender offer or merger;
|
•
|
acquisition of us by means of a proxy contest or otherwise; or
|
•
|
removal of our incumbent officers and directors.
|
12.
|
GOVERNING LAW
|
13.
|
LITIGATION AND REGULATORY COOPERATION
|
14.
|
INDEMNIFICATION
|
15.
|
DISPUTE RESOLUTION
|
16.
|
REPRESENTATIONS AND WARRANTIES OF EMPLOYEE
|
17.
|
SECTION 409A COMPLIANCE
|
18.
|
MISCELLANEOUS
|
Name
|
State of Incorporation
|
1567 Media, LLC
|
DE
|
Brazil Outdoor NewCo, LLC
|
DE
|
CC CV LP, LLC
|
DE
|
CCHCV LP, LLC
|
DE
|
CCO Barco Airport Venture, LLC
|
DE
|
CCOI Holdco III, LLC
|
DE
|
CCOI Holdco Parent I, LLC
|
DE
|
CCOI Holdco Parent II, LLC
|
DE
|
Clear Channel Adshel, Inc.
|
DE
|
Clear Channel Airports of Texas, JV
|
TX
|
Clear Channel Brazil Holdco, LLC
|
DE
|
Clear Channel Brazil Holdings, LLC
|
DE
|
Clear Channel Electrical Services, LLC
|
DE
|
Clear Channel IP
|
DE
|
Clear Channel Interstate, LLC
|
DE
|
Clear Channel Metra, LLC
|
DE
|
Clear Channel Outdoor Holdings Company Canada
|
DE
|
Clear Channel Outdoor, LLC
|
DE
|
Clear Channel Peoples, LLC
|
DE
|
Clear Channel Spectacolor, LLC
|
DE
|
Clear Channel Worldwide Holdings, Inc.
|
NV
|
Eller-PW Company, LLC
|
CA
|
Exceptional Outdoor Advertising, Inc.
|
FL
|
Get Outdoors Florida, LLC
|
FL
|
Interspace Airport Advertising International, LLC
|
PA
|
IN-TER-SPACE Services, Inc.
|
PA
|
Keller Booth Sumners Joint Venture
|
TX
|
Kelnic II Joint Venture
|
TX
|
Mexico MinorityCo, LLC
|
DE
|
Miami Airport Concession LLC
|
DE
|
Milpitas Sign Company, LLC
|
DE
|
Outdoor Management Services, Inc.
|
NV
|
Name
|
Country of Incorporation
|
Allied Outdoor Advertising Ltd.
|
United Kingdom
|
Arcadia Cooper Properties Ltd.
|
United Kingdom
|
Barrett Petrie Sutcliffe London Ltd.
|
United Kingdom
|
Barrett Petrie Sutcliffe Ltd.
|
United Kingdom
|
Brasil Outdoor Ltda
|
Brazil
|
C.F.D. Billboards Ltd.
|
United Kingdom
|
CCO International Holdings BV
|
Netherlands
|
CCO Ontario Holdings, Inc.
|
Canada
|
China Outdoor Media Investment (HK) Co., Ltd.
|
Hong Kong
|
China Outdoor Media Investment Inc.
|
British Virgin Islands
|
Cine Guarantors II, Ltd.
|
Canada
|
Cine Movile SA de CV
|
Mexico
|
Cinemobile Systems International NV
|
Curacao
|
Clear Channel (Central) Ltd.
|
United Kingdom
|
Clear Channel (Midlands) Ltd.
|
United Kingdom
|
Clear Channel (Northwest) Ltd.
|
United Kingdom
|
Clear Channel (Scotland) Ltd.
|
Scotland
|
Clear Channel (Guangzhou) Ltd.
|
China
|
Clear Channel Affitalia SRL
|
Italy
|
Clear Channel AIDA GmbH
|
Switzerland
|
Clear Channel AWI AG
|
Switzerland
|
Clear Channel Baltics & Russia AB
|
Sweden
|
Clear Channel Banners Ltd.
|
United Kingdom
|
Clear Channel Belgium Sprl
|
Belgium
|
Clear Channel CAC AG
|
Switzerland
|
Clear Channel Chile Publicidad Ltda
|
Chile
|
Clear Channel CV
|
Netherlands
|
Clear Channel Danmark AS
|
Denmark
|
Clear Channel Entertainment of Brazil Ltda
|
Brazil
|
Clear Channel Espana SLU
|
Spain
|
Clear Channel Espectaculos SL
|
Spain
|
Clear Channel Estonia OU
|
Estonia
|
Clear Channel European Holdings SAS
|
France
|
Clear Channel Felice GmbH
|
Switzerland
|
Clear Channel France SAS
|
France
|
Clear Channel GMBH
|
Switzerland
|
Clear Channel Holding AG
|
Switzerland
|
Clear Channel Holding Italia SPA
|
Italy
|
Clear Channel Holdings CV
|
Netherlands
|
Clear Channel Holdings, Ltd.
|
United Kingdom
|
Clear Channel Infotrak AG
|
Switzerland
|
Clear Channel International BV
|
Netherlands
|
Clear Channel International Holdings BV
|
Netherlands
|
Clear Channel International Ltd.
|
United Kingdom
|
Clear Channel Interpubli AG
|
Switzerland
|
Name
|
Country of Incorporation
|
Clear Channel Ireland Ltd.
|
Ireland
|
Clear Channel Italy Outdoor SRL
|
Italy
|
Clear Channel Jolly Pubblicita SPA
|
Italy
|
Clear Channel KNR Neth Antilles NV
|
Curacao
|
Clear Channel Nederland BV
|
Netherlands
|
Clear Channel Nederland Holdings BV
|
Netherlands
|
Clear Channel NI Ltd.
|
United Kingdom
|
Clear Channel Norway AS
|
Norway
|
Clear Channel Ofex AG
|
Switzerland
|
Clear Channel Outdoor Hungary KFT
|
Hungary
|
Clear Channel Overseas Ltd.
|
United Kingdom
|
Clear Channel Pacific Pte Ltd.
|
Singapore
|
Clear Channel Plakatron AG
|
Switzerland
|
Clear Channel Poland SP .Z.O.O.
|
Poland
|
Clear Channel Sales AB
|
Sweden
|
Clear Channel Schweiz AG
|
Switzerland
|
Clear Channel Singapore Pte Ltd.
|
Singapore
|
Clear Channel South America S.A.C.
|
Peru
|
Clear Channel SouthWest Ltd.
|
United Kingdom
|
Clear Channel Suomi Oy
|
Finland
|
Clear Channel Sverige AB
|
Sweden
|
Clear Channel UK Ltd
|
United Kingdom
|
Clear Channel UK One Ltd.
|
United Kingdom
|
Clear Channel UK Three Ltd.
|
United Kingdom
|
Clear Channel UK Two Ltd.
|
United Kingdom
|
Clear Media Limited
|
Bermuda
|
Comurben SA
|
Morocco
|
Eller Media Asesorias Y Comercializacion Publicitaria Ltda
|
Chile
|
Eller Media Servicios Publicitarios Ltda
|
Chile
|
Epiclove Ltd.
|
United Kingdom
|
Equipamientos Urbanos de Canarias SA
|
Spain
|
Equipamientos Urbanos Del Sur SL
|
Spain
|
FM Media Ltd.
|
United Kingdom
|
Foxmark (UK) Ltd.
|
United Kingdom
|
Giganto Holding Cayman
|
Cayman Islands
|
Giganto Outdoor Servicios Publicitarios Ltda.
|
Chile
|
Grosvenor Advertising Ltd.
|
United Kingdom
|
Hainan Whitehorse Advertising Media Investment Company Ltd.
|
China
|
Illuminated Awnings Systems Ltd.
|
Ireland
|
Interspace Airport Advertising Curacao N.V.
|
Curacao
|
Interspace Airport Advertising Grand Cayman
|
Cayman Islands
|
Interspace Airport Advertising Netherlands Antilles N.V.
|
Netherlands Antilles
|
Interspace Airport Advertising TCI Ltd.
|
Turks & Caicos
|
Interspace Airport Advertising Trinidad & Tobago Ltd.
|
Republic of Trinidad & Tobago
|
Interspace Airport Advertising West Indies Ltd.
|
West Indies
|
Name
|
Country of Incorporation
|
Interspace Costa Rica Airport Advertising SA
|
Costa Rica
|
KMS Advertising Ltd.
|
United Kingdom
|
L & C Outdoor Ltda.
|
Brazil
|
Maurice Stam Ltd
|
United Kingdom
|
Ming Wai Holdings Ltd.
|
British Virgin Islands
|
More O'Ferrall Ireland Ltd.
|
Ireland
|
Multimark Ltd.
|
United Kingdom
|
Nitelites (Ireland) Ltd.
|
Ireland
|
Nobro SC
|
Mexico
|
NWP Street Limited
|
United Kingdom
|
Outdoor (Brasil) Ltda
|
Brazil
|
Outdoor Brasil Holding Ltda
|
Brazil
|
Outdoor Holding Company Cayman I
|
Cayman Islands
|
Outdoor Holding Company Cayman II
|
Cayman Islands
|
Outdoor Mexico Operaciones, S. de R.L. de C.V.
|
Mexico
|
Outdoor Mexico Servicios Publicitarios S. de R.L. de C.V.
|
Mexico
|
Outdoor Mexico Servicios Publicitarios Sub, S. de R.L. de C.V.
|
Mexico
|
Outdoor Mexico, Servicios Administrativos, S. de R.L. de C.V.
|
Mexico
|
Outdoor Mexico, Servicios Corporativos, S. de R.L. de C.V.
|
Mexico
|
Outdoor Sao Paulo Participacoes Ltda
|
Brazil
|
Clear Channel Outdoor Spanish Holdings SL (fka Outdoor spanish Holdings)
|
Spain
|
Outstanding Media I Stockholm AB
|
Sweden
|
Paneles Napsa S.R.L.
|
Peru
|
Parkin Advertising Ltd.
|
United Kingdom
|
Postermobile Advertising Ltd.
|
United Kingdom
|
Premium Outdoor Ltd.
|
United Kingdom
|
Publicidade Klimes Sao Paulo Ltda
|
Brazil
|
Racklight S. de R.L. de C.V.
|
Mexico
|
Regentfile Ltd.
|
United Kingdom
|
Rockbox Ltd.
|
United Kingdom
|
Service2Cities
|
Belgium
|
SIA Clear Channel Latvia
|
Latvia
|
Signways Ltd.
|
United Kingdom
|
Sites International Ltd.
|
United Kingdom
|
Storm Outdoor Ltd.
|
United Kingdom
|
Street Channel SAS
|
France
|
The Canton Property Investment Co. Ltd.
|
United Kingdom
|
The Kildoon Property Co. Ltd.
|
United Kingdom
|
Torpix Ltd.
|
United Kingdom
|
Town & City Posters Advertising. Ltd.
|
United Kingdom
|
Trainer Advertising Ltd.
|
United Kingdom
|
UAB Clear Channel Lietuva
|
Lithuania
|
Vision Media Group UK Ltd.
|
United Kingdom
|
Vision Posters Ltd.
|
United Kingdom
|
1.
|
Registration Statement (Form S-3) pertaining to Clear Channel Outdoor Holdings, Inc. (No. 333-232517);
|
2.
|
Post-Effective Amendment No. 1 to Registration Statement (Form S-8) pertaining to the Clear Channel Outdoor Holdings, Inc. 2012 Stock Incentive Plan (No. 333-181514); and
|
3.
|
Post-Effective Amendment No. 1 to Registration Statement (Form S-8) pertaining to the Clear Channel Outdoor Holdings, Inc. 2005 Stock Incentive Plan (No. 333-130229)
|
1.
|
I have reviewed this Annual Report on Form 10-K of Clear Channel Outdoor Holdings, 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:
|
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):
|
/s/ C. WILLIAM ECCLESHARE
|
C. William Eccleshare
|
Chief Executive Officer
|
1.
|
I have reviewed this Annual Report on Form 10-K of Clear Channel Outdoor Holdings, Inc.;
|
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
|
/s/ BRIAN D. COLEMAN
|
Brian D. Coleman
|
Chief Financial Officer
|
By:
|
/s/ C. WILLIAM ECCLESHARE
|
Name:
|
C. William Eccleshare
|
Title:
|
Chief Executive Officer
|
By:
|
/s/ BRIAN D. COLEMAN
|
Name:
|
Brian D. Coleman
|
Title:
|
Chief Financial Officer
|