Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Nov. 05, 2018 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | iHeartMedia, Inc. | |
Entity Central Index Key | 1,400,891 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Common class A | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 31,538,017 | |
Common class B | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 555,556 | |
Common class C | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 58,967,502 | |
Common class D | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 0 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 311,162 | $ 267,109 |
Accounts receivable, net of allowance of $46,531 in 2018 and $48,450 in 2017 | 1,466,924 | 1,508,370 |
Prepaid expenses | 240,980 | 209,330 |
Other current assets | 59,726 | 82,538 |
Total Current Assets | 2,078,792 | 2,067,347 |
PROPERTY, PLANT AND EQUIPMENT | ||
Structures, net | 1,038,835 | 1,180,882 |
Other property, plant and equipment, net | 680,256 | 703,832 |
INTANGIBLE ASSETS AND GOODWILL | ||
Indefinite-lived intangibles - licenses | 2,417,830 | 2,451,813 |
Indefinite-lived intangibles - permits | 971,163 | 977,152 |
Other intangibles, net | 432,497 | 550,056 |
Goodwill | 4,043,941 | 4,051,082 |
OTHER ASSETS | ||
Other assets | 295,998 | 274,932 |
Total Assets | 11,959,312 | 12,257,096 |
CURRENT LIABILITIES | ||
Accounts payable | 149,236 | 163,449 |
Accrued expenses | 764,353 | 764,275 |
Accrued interest | 11,623 | 268,102 |
Deferred income | 218,654 | 186,404 |
Current portion of long-term debt | 347 | 14,972,367 |
Total Current Liabilities | 1,144,213 | 16,354,597 |
Long-term debt | 5,274,490 | 5,676,814 |
Deferred income taxes | 360,429 | 959,390 |
Other long-term liabilities | 498,001 | 610,639 |
Liabilities subject to compromise | 16,475,414 | 0 |
Commitments and contingent liabilities (Note 5) | ||
STOCKHOLDERS’ DEFICIT | ||
Noncontrolling interest | 17,353 | 41,191 |
Additional paid-in capital | 2,074,194 | 2,072,566 |
Accumulated deficit | (13,560,251) | (13,142,001) |
Accumulated other comprehensive loss | (322,071) | (313,718) |
Cost of shares (793,968 in 2018 and 610,991 in 2017) held in treasury | (2,552) | (2,474) |
Total Stockholders' Deficit | (11,793,235) | (11,344,344) |
Total Liabilities and Stockholders' Deficit | 11,959,312 | 12,257,096 |
Class A Common Stock | ||
STOCKHOLDERS’ DEFICIT | ||
Common stock issued | 32 | 32 |
Class B Common Stock | ||
STOCKHOLDERS’ DEFICIT | ||
Common stock issued | 1 | 1 |
Class C Common Stock | ||
STOCKHOLDERS’ DEFICIT | ||
Common stock issued | 59 | 59 |
Class D Common Stock | ||
STOCKHOLDERS’ DEFICIT | ||
Common stock issued | $ 0 | $ 0 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Allowance for receivables | $ 46,531 | $ 48,450 |
Class A Common Stock | ||
Class of Stock [Line Items] | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 400,000,000 | 400,000,000 |
Common stock, shares issued | 32,379,507 | 32,626,168 |
Class B Common Stock | ||
Class of Stock [Line Items] | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares issued | 555,556 | 555,556 |
Class C Common Stock | ||
Class of Stock [Line Items] | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 58,967,502 | 58,967,502 |
Class D Common Stock | ||
Class of Stock [Line Items] | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 0 | 0 |
Treasury stock | ||
Class of Stock [Line Items] | ||
Treasury stock, shares | 793,968 | 610,991 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Income Statement [Abstract] | ||||
Revenue | $ 1,582,765 | $ 1,536,757 | $ 4,553,255 | $ 4,455,270 |
Operating expenses: | ||||
Direct operating expenses (excludes depreciation and amortization) | 630,264 | 623,741 | 1,869,260 | 1,812,505 |
Selling, general and administrative expenses | 457,757 | 438,796 | 1,382,234 | 1,337,091 |
Corporate expenses (excludes depreciation and amortization) | 84,193 | 77,967 | 242,553 | 233,487 |
Depreciation and amortization | 120,700 | 149,749 | 419,778 | 443,650 |
Impairment charges | 40,922 | 7,631 | 40,922 | 7,631 |
Other operating income (expense), net | (1,637) | (13,215) | (5,212) | 24,785 |
Operating income | 247,292 | 225,658 | 593,296 | 645,691 |
Interest expense (excludes contractual interest of $372,162 and $812,420 for the three and nine months ended September 30, 2018, respectively) | 99,255 | 470,250 | 625,252 | 1,388,819 |
Equity in earnings (loss) of nonconsolidated affiliates | 172 | (2,238) | 291 | (2,240) |
Other income (expense), net | (6,182) | 50 | (35,424) | (13,677) |
Reorganization items, net | 52,475 | 0 | 313,270 | 0 |
Income (loss) before income taxes | 89,552 | (246,780) | (380,359) | (759,045) |
Income tax expense | (17,769) | (2,051) | (47,188) | (50,143) |
Consolidated net income (loss) | 71,783 | (248,831) | (427,547) | (809,188) |
Less amount attributable to noncontrolling interest | 1,705 | 1,659 | (10,732) | 7,614 |
Net income (loss) attributable to the Company | 70,078 | (250,490) | (416,815) | (816,802) |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation adjustments | (7,509) | 12,408 | (20,042) | 43,071 |
Unrealized holding loss on marketable securities | 0 | (320) | 0 | (218) |
Reclassification adjustments | 1,425 | 6,207 | 1,425 | 4,563 |
Other comprehensive income (loss) | (6,084) | 18,295 | (18,617) | 47,416 |
Comprehensive income (loss) | 63,994 | (232,195) | (435,432) | (769,386) |
Less amount attributable to noncontrolling interest | (5,212) | 4,161 | (8,829) | 10,060 |
Comprehensive income (loss) attributable to the Company | $ 69,206 | $ (236,356) | $ (426,603) | $ (779,446) |
Net loss attributable to the Company per common share: | ||||
Basic (in dollars per share) | $ 0.82 | $ (2.94) | $ (4.88) | $ (9.62) |
Weighted average common shares outstanding - Basic | 85,544 | 85,072 | 85,348 | 84,900 |
Diluted (in dollars per share) | $ 0.82 | $ (2.94) | $ (4.88) | $ (9.62) |
Weighted average common shares outstanding - Diluted | 85,622 | 85,072 | 85,348 | 84,900 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2018 | Sep. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Contractual interest | $ 372,162 | $ 812,420 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Cash flows from operating activities: | ||
Consolidated net loss | $ (427,547) | $ (809,188) |
Reconciling items: | ||
Impairment charges | 40,922 | 7,631 |
Depreciation and amortization | 419,778 | 443,650 |
Deferred taxes | 22,020 | 13,291 |
Provision for doubtful accounts | 19,911 | 20,936 |
Amortization of deferred financing charges and note discounts, net | 19,871 | 42,682 |
Non-cash Reorganization items, net | 261,057 | 0 |
Share-based compensation | 8,385 | 9,020 |
(Gain) loss on disposal of operating and other assets | 432 | (30,149) |
Equity in (earnings) loss of nonconsolidated affiliates | (291) | 2,240 |
Barter and trade income | (10,080) | (32,953) |
Other reconciling items, net | 13,105 | (19,169) |
Changes in operating assets and liabilities, net of effects of acquisitions and dispositions: | ||
(Increase) decrease in accounts receivable | 5,799 | (60,984) |
Increase in prepaid expenses and other current assets | (38,058) | (41,237) |
Decrease in accrued expenses | (30,887) | (37,819) |
Increase in accounts payable | 35,525 | 9,419 |
Increase (decrease) in accrued interest | 312,605 | (78,087) |
Increase in deferred income | 16,774 | 3,847 |
Changes in other operating assets and liabilities | (5,972) | (808) |
Net cash provided by (used for) operating activities | 663,349 | (557,678) |
Cash flows from investing activities: | ||
Purchases of other investments | (253) | (500) |
Proceeds from sale of other investments | 18,909 | 628 |
Purchases of property, plant and equipment | (157,569) | (184,944) |
Proceeds from disposal of assets | 7,245 | 71,320 |
Purchases of other operating assets | (2,132) | (3,224) |
Change in other, net | (1,092) | (3,693) |
Net cash used for investing activities | (134,892) | (120,413) |
Cash flows from financing activities: | ||
Draws on credit facilities | 143,359 | 60,000 |
Payments on credit facilities | (258,308) | (25,909) |
Proceeds from long-term debt | 0 | 156,000 |
Payments on long-term debt | (364,776) | (5,385) |
Payments to purchase noncontrolling interests | 0 | 953 |
Dividends and other payments to noncontrolling interests | (11,042) | (41,083) |
Change in other, net | (2,340) | (5,604) |
Net cash provided by (used for) financing activities | (493,107) | 137,066 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (8,553) | 7,496 |
Net decrease in cash, cash equivalents and restricted cash | 26,797 | (533,529) |
Cash, cash equivalents and restricted cash at beginning of period | 311,300 | 855,726 |
Cash, cash equivalents and restricted cash at end of period | 338,097 | 322,197 |
SUPPLEMENTAL DISCLOSURES: | ||
Cash paid for interest | 293,689 | 1,426,438 |
Cash paid for income taxes | 27,597 | 31,668 |
Cash paid for Reorganization items, net | $ 52,213 | $ 0 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION Preparation of Interim Financial Statements All references in this Quarterly Report on Form 10-Q to the “Company,” “we,” “us” and “our” refer to iHeartMedia, Inc. and its consolidated subsidiaries. The Company’s reportable segments are iHeartMedia (“iHM”), Americas outdoor advertising (“Americas outdoor” or “Americas outdoor advertising”) and International outdoor advertising (“International outdoor” or “International outdoor advertising”). The accompanying consolidated financial statements were prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and, in the opinion of management, include all normal and recurring adjustments necessary to present fairly the results of the interim periods shown. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to such SEC rules and regulations. Management believes that the disclosures made are adequate to make the information presented not misleading. Due to seasonality and other factors, the results for the interim periods may not be indicative of results for the full year. The financial statements contained herein should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s 2017 Annual Report on Form 10-K. Th e consolidated financial statements include the accounts of the Company and its subsidiaries. Also included in the consolidated financial statements are entities for which the Company has a controlling financial interest or is the primary beneficiary. Investments in companies in which the Company owns 20% to 50% of the voting common stock or otherwise exercises significant influence over operating and financial policies of the company are accounted for under the equity method. All significant intercompany transactions are eliminated in the consolidation process. The Company re-evaluated its segment reporting and determined that its Latin American operations should be managed by its International outdoor leadership team. As a result, beginning on January 1, 2018 , the operations of Latin America are no longer reflected within the Company’s Americas outdoor segment and are included in the results of its International outdoor segment. Accordingly, the Company has recast the corresponding segment disclosures for prior periods to include Latin America within the International outdoor segment. Certain prior period amounts have been reclassified to conform to the 2018 presentation. Immaterial Corrections to Prior Periods During the three months ended June 30, 2018, the Company identified misstatements associated with VAT obligations in its International Outdoor segment, which resulted in an understatement of the Company's VAT obligation. The Company evaluated the effects of these misstatements on prior periods’ consolidated financial statements, individually and in the aggregate, in accordance with the guidance in SEC Staff Bulletins ("SAB") 99, Materiality, SAB 108, Considering the Effects of Prior year Misstatements when Quantifying Misstatements in the Current Year Financial Statements and Accounting Standards Codification 250, Accounting Changes and Error Corrections , and concluded that no prior period is materially misstated. However, the Company has determined to revise our consolidated financial statements for the VAT misstatements, as well as other previously identified immaterial errors, for the prior periods presented herein. A summary of the effect of the corrections on the Consolidated Balance Sheet as of December 31, 2017 is as follows: December 31, 2017 (In thousands) As Reported Correction Revised Other assets $ 278,267 $ (3,335 ) $ 274,932 Total Assets 12,260,431 (3,335 ) 12,257,096 Other long-term liabilities 597,085 13,554 610,639 Noncontrolling interest 42,764 (1,573 ) 41,191 Accumulated deficit (13,127,843 ) (14,158 ) (13,142,001 ) Accumulated other comprehensive loss (312,560 ) (1,158 ) (313,718 ) Total Stockholders' Deficit (11,327,455 ) (16,889 ) (11,344,344 ) Total Liabilities and Stockholders' Deficit 12,260,431 (3,335 ) 12,257,096 A summary of the effect of the corrections on the Consolidated Statement of Comprehensive Income (Loss) for the three and nine months ended September 30, 2017 is as follows: Three Months Ended September 30, 2017 (In thousands) As Reported Correction Revised Revenue $ 1,537,416 $ (659 ) $ 1,536,757 Direct operating expenses (excludes depreciation and amortization) 621,895 1,846 623,741 Selling, general and administrative expenses (excludes depreciation and amortization) 438,654 142 438,796 Operating income 228,305 (2,647 ) 225,658 Loss before income taxes (244,133 ) (2,647 ) (246,780 ) Consolidated net loss (246,184 ) (2,647 ) (248,831 ) Less amount attributable to noncontrolling interest 1,993 (334 ) 1,659 Net loss attributable to the Company (248,177 ) (2,313 ) (250,490 ) Foreign currency translation adjustments 13,010 (602 ) 12,408 Other comprehensive income 18,897 (602 ) 18,295 Comprehensive loss (229,280 ) (2,915 ) (232,195 ) Less amount attributable to noncontrolling interest 4,289 (128 ) 4,161 Comprehensive loss attributable to the Company (233,569 ) (2,787 ) (236,356 ) Basic loss per share (2.92 ) (0.02 ) (2.94 ) Diluted loss per share (2.92 ) (0.02 ) (2.94 ) Nine Months Ended September 30, 2017 (In thousands) As Reported Correction Revised Revenue $ 4,457,106 $ (1,836 ) $ 4,455,270 Direct operating expenses (excludes depreciation and amortization) 1,807,534 4,971 1,812,505 Selling, general and administrative expenses (excludes depreciation and amortization) 1,336,563 528 1,337,091 Operating income 653,026 (7,335 ) 645,691 Interest expense 1,388,747 72 1,388,819 Loss before income taxes (751,638 ) (7,407 ) (759,045 ) Consolidated net loss (801,781 ) (7,407 ) (809,188 ) Less amount attributable to noncontrolling interest 8,648 (1,034 ) 7,614 Net loss attributable to the Company (810,429 ) (6,373 ) (816,802 ) Foreign currency translation adjustments 44,665 (1,594 ) 43,071 Other comprehensive income 49,010 (1,594 ) 47,416 Comprehensive loss (761,419 ) (7,967 ) (769,386 ) Less amount attributable to noncontrolling interest 10,342 (282 ) 10,060 Comprehensive loss attributable to the Company (771,761 ) (7,685 ) (779,446 ) Basic loss per share (9.55 ) (0.07 ) (9.62 ) Diluted loss per share (9.55 ) (0.07 ) (9.62 ) Voluntary Filing under Chapter 11 On March 14, 2018 (the "Petition Date"), the Company, iHeartCommunications, Inc. ("iHeartCommunications") and certain of the Company's direct and indirect domestic subsidiaries (collectively, the "Debtors") filed voluntary petitions for relief (the "Chapter 11 Cases") under Chapter 11 of the United States Bankruptcy Code (the "Bankruptcy Code"), in the United States Bankruptcy Court for the Southern District of Texas, Houston Division (the "Bankruptcy Court"). Clear Channel Outdoor Holdings, Inc. (“CCOH”) and its direct and indirect subsidiaries did not file voluntary petitions for reorganization under the Bankruptcy Code and are not Debtors in the Chapter 11 Cases. The Chapter 11 Cases are being administered under the caption In re: iHeartMedia, Inc., Case No. 18-31274 (MI) . The Debtors are operating their businesses as “debtors-in-possession” under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code and orders of the Bankruptcy Court. On March 16, 2018, the Debtors entered into a Restructuring Support Agreement (the “RSA”) with certain creditors and equity holders (the “Consenting Stakeholders”). The RSA contemplates the restructuring and recapitalization of the Debtors (the “Restructuring Transactions”), which will be implemented through a plan of reorganization in the Chapter 11 Cases, if confirmed by the Bankruptcy Court. Pursuant to the RSA, the Consenting Stakeholders have agreed to, among other things, support the Restructuring Transactions and vote in favor of a plan of reorganization to effect the Restructuring Transactions. The RSA provides certain milestones for the Restructuring Transactions. Failure of the Debtors to satisfy these milestones without a waiver or consensual amendment would provide the Consenting Stakeholders a termination right under the RSA. These milestones include (i) the filing of a plan of reorganization and disclosure statement, in form and substance reasonably acceptable to the Debtors and the Consenting Stakeholders, which were filed with the Bankruptcy Court on April 28, 2018, (ii) the filing of a motion for approval of the disclosure statement by May 31, 2018, which deadline was subsequently extended to June 22, 2018, and which motion was filed with the Bankruptcy Court on June 22, 2018, (iii) the entry of an order approving the disclosure statement by July 27, 2018 (subject to one additional 20-day extension on the terms set forth on the RSA), (iv) the entry of an order confirming the plan of reorganization within 75 days of the entry of an order approving the disclosure statement and (v) the effective date of the plan of reorganization occurring by March 14, 2019. The Debtors satisfied the first and second milestones, but did not satisfy the third milestone because the order approving the Disclosure Statement was not entered until September 20, 2018, which was after the date required by the third milestone. As a result, certain of the Consenting Stakeholders presently have the right to terminate the RSA, but as of the date hereof, the RSA has not been terminated. On June 15, 2018, July 16, 2018 August 15, 2018, September 7, 2018 and October 1, 2018, the Debtors filed monthly operating reports for the periods from March 15, 2018 to April 30, 2018, May 1, 2018 to May 31, 2018, June 1, 2018 to June 30, 2018, July 1, 2018 to July 31, 2018 and August 1, 2018 to August 31, 2018, respectively (the “Monthly Operating Reports”) with the Bankruptcy Court. iHeartCommunications, which is a Debtor in the Chapter 11 Cases, provides the day-to-day cash management services for CCOH’s cash activities and balances in the U.S. pursuant to the Corporate Services Agreement between iHeartCommunications and CCOH, and is continuing to do so during the Chapter 11 Cases pursuant to a cash management order approved by the Bankruptcy Court. iHeartCommunications' filing of the Chapter 11 Cases constituted an event of default that accelerated its obligations under its debt agreements. Due to the Chapter 11 Cases, however, the creditors’ ability to exercise remedies under iHeartCommunications' debt agreements were stayed as of March 14, 2018, the date of the Chapter 11 petition filing, and continue to be stayed. The Company has applied Accounting Standards Codification (“ASC”) 852 - Reorganizations in preparing the consolidated financial statements. ASC 852 requires the financial statements, for periods subsequent to the commencement of the Chapter 11 Cases, to distinguish transactions and events that are directly associated with the reorganization from the ongoing operations of the business. Accordingly, certain charges incurred during 2018 related to the bankruptcy proceedings, including unamortized long-term debt fees and discounts associated with debt classified as liabilities subject to compromise, are recorded as Reorganization items, net. In addition, pre-petition Debtor obligations that may be impacted by the Chapter 11 Cases have been classified on the Consolidated Balance Sheet at September 30, 2018 as Liabilities subject to compromise. These liabilities are reported at the amounts the Company anticipates will be allowed by the Bankruptcy Court, even if they may be settled for lesser amounts. See below for more information regarding Reorganization items. ASC 852 requires certain additional reporting for financial statements prepared between the bankruptcy filing date and the date of emergence from bankruptcy, including: • Reclassification of Debtor pre-petition liabilities that are unsecured, under-secured or where it cannot be determined that the liabilities are fully secured, to a separate line item in the Consolidated Balance Sheet called, "Liabilities subject to compromise"; and • Segregation of Reorganization items, net as a separate line in the Consolidated Statement of Comprehensive Income (Loss), outside of income from continuing operations. Debtor-In-Possession The Debtors are currently operating as debtors in possession in accordance with the applicable provisions of the Bankruptcy Code. The Bankruptcy Court has approved motions filed by the Debtors that were designed primarily to mitigate the impact of the Chapter 11 Cases on the Company’s operations, customers and employees. In general, as debtors-in-possession under the Bankruptcy Code, the Debtors are authorized to continue to operate as an ongoing business, but may not engage in transactions outside the ordinary course of business without the prior approval of the Bankruptcy Court. Pursuant to first day motions and second day motions filed with the Bankruptcy Court, the Bankruptcy Court authorized the Debtors to conduct their business activities in the ordinary course, including, among other things and subject to the terms and conditions of such orders, authorizing the Debtors to: (i) pay employees’ wages and related obligations; (ii) continue to operate their cash management system in a form substantially similar to pre-petition practice; (iii) use cash collateral on an interim basis; (iv) continue to honor certain obligations related to on-air talent, station affiliates and royalty obligations; (v) continue to maintain certain customer programs; (vi) pay taxes in the ordinary course; (vii) continue their surety bond program; and (viii) maintain their insurance program in the ordinary course. Automatic Stay Subject to certain specific exceptions under the Bankruptcy Code, the Bankruptcy Petitions automatically stayed most judicial or administrative actions against the Debtors and efforts by creditors to collect on or otherwise exercise rights or remedies with respect to pre-petition claims. Absent an order from the Bankruptcy Court, substantially all of the Debtors’ pre-petition liabilities are subject to settlement under the Bankruptcy Code. See Note 13, Condensed Combined Debtor-In-Possession Financial Information . Executory Contracts Subject to certain exceptions, under the Bankruptcy Code, the Debtors may assume, amend or reject certain executory contracts and unexpired leases subject to the approval of the Bankruptcy Court and certain other conditions. Generally, the rejection of an executory contract or unexpired lease is treated as a pre-petition breach of such executory contract or unexpired lease and, subject to certain exceptions, relieves the Debtors from performing their future obligations under such executory contract or unexpired lease but entitles the contract counterparty or lessor to a pre-petition general unsecured claim for damages caused by such deemed breach. Generally, the assumption of an executory contract or unexpired lease requires the Debtors to cure existing monetary defaults under such executory contract or unexpired lease and provide adequate assurance of future performance. Accordingly, any description of an executory contract or unexpired lease with the Debtors in this document, including where applicable a quantification of the Company’s obligations under any such executory contract or unexpired lease of the Debtors, is qualified by any overriding rejection rights the Company has under the Bankruptcy Code. Potential Claims The Debtors have filed with the Bankruptcy Court schedules and statements setting forth, among other things, the assets and liabilities of each of the Debtors, subject to the assumptions filed in connection therewith. These schedules and statements may be subject to further amendment or modification after filing. Certain holders of pre-petition claims that are not governmental units were required to file proofs of claim by the deadline for general claims, which was on June 29, 2018 (the “Bar Date”). The Debtors' have received approximately 4,200 proofs of claim as of November 5, 2018 for an amount of approximately $808.3 billion . Such amount includes duplicate claims across multiple debtor legal entities. These claims will be reconciled to amounts recorded in the Company's accounting records. Differences in amounts recorded and claims filed by creditors will be investigated and resolved, including through the filing of objections with the Bankruptcy Court, where appropriate. The Bankruptcy Court does not allow for claims that have been acknowledged as duplicates. Approximately 275 claims totaling approximately $13 million have been disallowed or withdrawn and the Debtors have filed additional claim objections with the Bankruptcy Court for approximately 200 claims totaling approximately $4.8 billion in additional reductions. The Company may ask the Bankruptcy Court to disallow claims that the Company believes have been later amended or superseded, are without merit, are overstated or should be disallowed for other reasons. In addition, as a result of this process, the Company may identify additional liabilities that will need to be recorded or reclassified to Liabilities subject to compromise. In light of the substantial number of claims filed, and expected to be filed, the claims resolution process may take considerable time to complete and likely will continue after the Debtors emerge from bankruptcy. Reorganization Items, Net The Debtors have incurred and will continue to incur significant costs associated with the reorganization, including the write-off of original issue discount and deferred long-term debt fees on debt subject to compromise, costs of debtor-in-possession refinancing, legal and professional fees. The amount of these charges, which since the Petition Date are being expensed as incurred, are expected to significantly affect the Company’s results of operations. In accordance with applicable guidance, costs associated with the bankruptcy proceedings have been recorded as Reorganization items, net within the Company's accompanying Consolidated Statements of Comprehensive Income (Loss) for the three and nine months ended September 30, 2018 . See Note 12, Reorganization Items, Net . Financial Statement Classification of Liabilities Subject to Compromise The accompanying Consolidated Balance Sheet as of September 30, 2018 includes amounts classified as Liabilities subject to compromise, which represent liabilities the Company anticipates will be allowed as claims in the Chapter 11 Cases. These amounts represent the Debtors’ current estimate of known or potential obligations to be resolved in connection with the Chapter 11 Cases, and may differ from actual future settlement amounts paid. Differences between liabilities estimated and claims filed, or to be filed, will be investigated and resolved in connection with the claims resolution process. The Company will continue to evaluate these liabilities throughout the Chapter 11 process and adjust amounts as necessary. Such adjustments may be material. See Note 11, Liabilities Subject to Compromise . Plan of Reorganization On April 28, 2018, the Debtors filed a plan of reorganization (as amended, the “Plan of Reorganization”) and a related disclosure statement (as amended, the “Disclosure Statement”) with the Bankruptcy Court pursuant to Chapter 11 of the Bankruptcy Code. On June 21, 2018, the Debtors filed an amended Disclosure Statement with the Bankruptcy Court. On August 5, 2018, the Debtors filed an amended Plan of Reorganization with the Bankruptcy Court. On August 23, 2018, the Debtors filed a second amended Plan of Reorganization and a further amended Disclosure Statement with the Bankruptcy Court. On August 28, 2018, the Debtors filed a third amended Plan of Reorganization and a further amended Disclosure Statement with the Bankruptcy Court. On September 12, 2018, the Debtors filed a fourth amended Plan of Reorganization and a further amended Disclosure Statement with the Bankruptcy Court. On September 18, 2018, the Debtors filed a revised fourth amended Plan of Reorganization and a further amended Disclosure Statement with the Bankruptcy Court. On September 20, 2018, the Bankruptcy Court entered an order approving the Disclosure Statement and related solicitation and notice procedures for voting on the Plan of Reorganization, and the Debtors filed solicitation versions of the Plan of Reorganization and Disclosure Statement. Following the entry of the order approving the Disclosure Statement, the Debtors, certain Consenting Stakeholders, and the Official Committee of Unsecured Creditors reached an agreement regarding the treatment of general unsecured claims under the Plan of Reorganization. On October 10, 2018, the Debtors filed a fifth amended Plan of Reorganization reflecting such agreement and a supplement to the Disclosure Statement (the “Disclosure Statement Supplement”). On October 18, 2018, the Bankruptcy Court entered an order approving the Disclosure Statement Supplement and the continued solicitation of holders of general unsecured claims for voting on the Plan of Reorganization, and the Debtors filed solicitation versions of the Plan of Reorganization and Disclosure Statement Supplement. The deadline by which holders of claims and interests entitled to vote on the Plan of Reorganization must vote is currently November 16, 2018, and a hearing has been scheduled for December 11, 2018 to consider confirmation of the Plan of Reorganization. Pursuant to the Plan of Reorganization, iHeartMedia, Inc. or its successor or assignee on the effective date of the Plan of Reorganization (“Reorganized iHeart”) will issue new common stock (“Reorganized iHeart Common Stock”), special warrants to purchase Reorganized iHeart Common Stock (“Special Warrants”), or, if applicable, interests in a trust that may be created to hold Reorganized iHeart Common Stock and/or Special Warrants pending the Federal Communications Commission’s approval of the transactions contemplated by the Plan of Reorganization (the “FCC Trust,” and collectively with the Reorganized iHeart Common Stock and the Special Warrants, the “iHeart Equity Interests”), in exchange for claims against or interests in the Debtors. Holders of claims with respect to the iHeartCommunications term loan credit agreement, priority guarantee notes, 14% senior notes due 2021 and legacy notes will receive their pro rata share of a distribution of new term loans and new notes of iHeartCommunications and 99% of the iHeart Equity Interests, subject to dilution by any Reorganized iHeart Common Stock issued pursuant to a post-emergence equity incentive plan, as set forth in the Plan of Reorganization. The preliminary terms of the new term loans and new notes are set forth in the Disclosure Statement, and the amount and tenor of the new term loans and new notes will be set forth in a supplement to the Plan of Reorganization. Holders of equity interests in iHeartMedia will receive their pro rata share of 1% of the iHeart Equity Interests, subject to dilution by any Reorganized iHeart Common Stock issued pursuant to a post-emergence equity incentive plan. On the effective date of the Plan of Reorganization, the applicable Debtors will execute documents to effect the separation of CCOH from iHeartMedia, and the equity interests in CCOH (or its successor) currently held by subsidiaries of iHeartMedia will be distributed to holders of claims with respect to the term loan credit agreement and priority guarantee notes. The Plan of Reorganization is subject to the approval of the Bankruptcy Court and other constituencies in accordance with the Bankruptcy Code, and is subject to further revision. There can be no assurance that the Plan of Reorganization will be confirmed by the Bankruptcy Court on the currently contemplated terms or at all, or that any confirmed plan of reorganization will be implemented successfully. Going Concern The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern and contemplate the realization of assets and the satisfaction of liabilities in the normal course of business. As noted above, Liabilities subject to compromise will be resolved in connection with the Chapter 11 Cases. The Company’s ability to continue as a going concern is contingent upon the Company’s ability to successfully implement the Company’s plan of reorganization, among other factors. As a result of the Chapter 11 Cases, the realization of assets and the satisfaction of liabilities are subject to uncertainty. While operating as debtors-in-possession under Chapter 11, the Company may sell or otherwise dispose of or liquidate assets or settle liabilities, subject to the approval of the Bankruptcy Court or as otherwise permitted in the ordinary course of business, for amounts other than those reflected in the accompanying consolidated financial statements. Further, the plan of reorganization could materially change the amounts and classifications of assets and liabilities reported in the consolidated financial statements. The accompanying consolidated financial statements do not include any adjustments related to the recoverability and classification of assets or the amounts and classification of liabilities or any other adjustments that might be necessary should the Company be unable to continue as a going concern or as a consequence of the Chapter 11 Cases. As a result of our financial condition, the defaults under our debt agreements, and the risks and uncertainties surrounding the Chapter 11 Cases, substantial doubt exists that we will be able to continue as a going concern. New Accounting Pronouncements Recently Adopted Revenue from Contracts with Customers As of January 1, 2018, the Company adopted the new accounting standard, ASC 606, Revenue from Contracts with Customers . This standard provides guidance for the recognition, measurement and disclosure of revenue from contracts with customers and supersedes previous revenue recognition guidance under U.S. GAAP. The Company has applied this standard using the full retrospective method and concluded that its adoption did not have a material impact on the Company’s Consolidated Balance Sheets, Consolidated Statements of Comprehensive Income (Loss), or Consolidated Statements of Cash Flows for prior periods. Please refer to Note 2, Revenues , for more information. As a result of adopting this new accounting standard, the Company has updated its significant accounting policies, as follows: Accounts Receivable Accounts receivable are recorded when the Company has an unconditional right to payment, either because it has satisfied a performance obligation prior to receiving payment from the customer or has a non-cancelable contract that has been billed in advance in accordance with the Company’s normal billing terms. Accounts receivable are recorded at the invoiced amount, net of reserves for sales allowances and allowances for doubtful accounts. The Company evaluates the collectability of its accounts receivable based on a combination of factors. In circumstances where it is aware of a specific customer’s inability to meet its financial obligations, it records a specific reserve to reduce the amounts recorded to what it believes will be collected. For all other customers, it recognizes reserves for bad debt based on historical experience of bad debts as a percent of accounts receivable for each business unit, adjusted for relative improvements or deteriorations in the agings and changes in current economic conditions. The Company believes its concentration of credit risk is limited due to the large number and the geographic diversification of its customers. Revenue Recognition The Company recognizes revenue when or as it satisfies a performance obligation by transferring a promised good or service to a customer. Where third-parties are involved in the provision of goods and services to a customer, revenue is recognized at the gross amount of consideration the Company expects to receive if the Company controls the promised good or service before it is transferred to the customer; otherwise, revenue is recognized at the net amount the Company retains. The Company receives payments from customers based on billing schedules that are established in its contracts, and deferred income is recorded when payment is received from a customer before the Company has satisfied the performance obligation or a non-cancelable contract has been billed in advance in accordance with the Company’s normal billing terms. The primary source of revenue in the iHM segment is the sale of advertising on the Company’s broadcast radio stations, its iHeartRadio mobile application and website, station websites, and national and local live events. Revenues for advertising spots are recognized at the point in time when the advertisement is broadcast or streamed, while revenues for online display advertisements are recognized over time based on impressions delivered or time elapsed, depending upon the terms of the contract. Revenues for event sponsorships are recognized over the period of the event. iHM also generates revenues from programming talent, network syndication, traffic and weather data, and other miscellaneous transactions, which are recognized when the services are transferred to the customer. iHM’s contracts with advertisers are typically a year or less in duration and are generally billed monthly upon satisfaction of the performance obligations. The Americas outdoor and International outdoor segments generate revenue primarily from the sale of advertising space on printed and digital displays, including billboards, street furniture displays, transit displays and retail displays, which may be sold as individual units or as a network package. Revenues from these contracts, which typically cover periods of a few weeks to one year, are generally recognized ratably over the term of the contract as the advertisement is displayed. These segments also generate revenue from production and creative services, which are distinct from the advertising display services, and related revenue is recognized at the point in time the Company installs the advertising copy at the display site. Americas outdoor contracts are generally billed monthly in advance, and International outdoor includes a combination of advance billings and billings upon completion of service. The Company also generates revenue through contractual commissions realized from the sale of national spot and online advertising on behalf of clients of its full-service media representation business, Katz Media, which is reported in the Company’s Other segment. Revenues from these contracts are recognized at the point in time when the advertisements are broadcast. Because the Company is a representative of its media clients and does not control the advertising inventory before it is transferred to the advertiser, the Company recognizes revenue at the net amount of contractual commissions retained for its representation services. The Company’s media representation contracts typically have terms up to ten years in duration and are generally billed monthly upon satisfaction of the performance obligations. The Company recognizes revenue in amounts that reflect the consideration it expects to receive in exchange for transferring goods or services to customers, excluding sales taxes and other similar taxes collected on behalf of governmental authorities (the "transaction price”). When this consideration includes a variable amount, the Company estimates the amount of consideration it expects to receive and only recognizes revenue to the extent that it is probable it will not be reversed in a future reporting period. Because the transfer of promised goods and services to the customer is generally within a year of scheduled payment from the customer, the Company is not typically required to consider the effects of the time value of money when determining the transaction price. Advertising revenue is reported net of agency commissions. Trade and barter transactions represent the exchange of advertising spots or display space for merchandise, services or other assets in the ordinary course of business. The transaction price for these contracts is measured at the estimated fair value of the non-cash consideration received unless this is not reasonably estimable, in which case the consideration is |
REVENUES
REVENUES | 9 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
REVENUES | REVENUES The Company generates revenue from several sources: • The primary source of revenue in the iHM segment is the sale of advertising on the Company’s radio stations, its iHeartRadio mobile application and website, station websites, and live events. This segment also generates revenues from programming talent, network syndication, traffic and weather data, and other miscellaneous transactions. • The Americas outdoor and International outdoor segments generate revenue primarily from the sale of advertising space on printed and digital out-of-home advertising displays. • The Company also generates revenue through contractual commissions realized from the sale of national spot and online advertising on behalf of clients of its full-service media representation business, Katz Media, which is reported in the Company’s Other segment. Certain of the revenue transactions in the Americas outdoor and International outdoor segments are considered leases, for accounting purposes, as the agreements convey to customers the right to use the Company’s advertising structures for a stated period of time. In order for a transaction with a customer to qualify as a lease, the arrangement must be dependent on the use of a specified advertising structure, and the customer must have almost exclusive use of that structure during the term of the arrangement. Therefore, arrangements that do not involve the use of an advertising structure, where the Company can substitute the advertising structure that is used to display the customer’s advertisement, or where the advertising structure displays advertisements for multiple customers throughout the day are not leases. The Company accounts for revenue from leases, which are all classified as operating leases, in accordance with the lease accounting guidance ( Topic 840 ). All of the Company’s revenue transactions that do not qualify as a lease are accounted for as revenue from contracts with customers ( Topic 606 ). Disaggregation of Revenue The following table shows, by segment, revenue from contracts with customers disaggregated by geographical region, revenue from leases and total revenue for the three and nine months ended September 30, 2018 and 2017 : (In thousands) iHM Americas Outdoor (1) International Outdoor (1) Other Eliminations Consolidated Three Months Ended September 30, 2018 Revenue from contracts with customers: United States $ 869,126 $ 116,503 $ — $ 47,088 $ (168 ) $ 1,032,549 Other Americas 582 671 11,242 — — 12,495 Europe 2,415 — 191,514 — — 193,929 Asia-Pacific and other 4,059 — 5,563 — — 9,622 Eliminations (3,415 ) — — — — (3,415 ) Total 872,767 117,174 208,319 47,088 (168 ) 1,245,180 Revenue from leases 637 186,247 151,999 — (1,298 ) 337,585 Revenue, total $ 873,404 $ 303,421 $ 360,318 $ 47,088 $ (1,466 ) $ 1,582,765 Three Months Ended September 30, 2017 Revenue from contracts with customers: United States $ 854,890 $ 106,806 $ — $ 34,452 $ (341 ) $ 995,807 Other Americas 704 2,488 14,224 — — 17,416 Europe 2,420 — 181,229 — — 183,649 Asia-Pacific and other 4,453 162 4,635 — — 9,250 Eliminations (3,798 ) — — — — (3,798 ) Total 858,669 109,456 200,088 34,452 (341 ) 1,202,324 Revenue from leases 862 184,351 150,535 — (1,315 ) 334,433 Revenue, total $ 859,531 $ 293,807 $ 350,623 $ 34,452 $ (1,656 ) $ 1,536,757 Nine Months Ended September 30, 2018 Revenue from contracts with customers: United States $ 2,457,506 $ 328,138 $ — $ 113,803 $ (1,606 ) $ 2,897,841 Other Americas 2,025 1,955 36,723 — — 40,703 Europe 7,477 — 605,032 — — 612,509 Asia-Pacific and other 12,640 — 17,685 — — 30,325 Eliminations (10,568 ) — — — — (10,568 ) Total 2,469,080 330,093 659,440 113,803 (1,606 ) 3,570,810 Revenue from leases 2,159 529,097 455,487 — (4,298 ) 982,445 Revenue, total $ 2,471,239 $ 859,190 $ 1,114,927 $ 113,803 $ (5,904 ) $ 4,553,255 Nine Months Ended September 30, 2017 Revenue from contracts with customers: United States $ 2,487,144 $ 308,988 $ — $ 99,332 $ (1,778 ) $ 2,893,686 Other Americas 2,107 10,279 37,418 — — 49,804 Europe 6,825 — 533,111 — — 539,936 Asia-Pacific and other 12,782 568 14,853 — — 28,203 Eliminations (11,120 ) — — — — (11,120 ) Total 2,497,738 319,835 585,382 99,332 (1,778 ) 3,500,509 Revenue from leases 3,346 534,509 420,572 — (3,666 ) 954,761 Revenue, total $ 2,501,084 $ 854,344 $ 1,005,954 $ 99,332 $ (5,444 ) $ 4,455,270 (1) Due to a re-evaluation of the Company’s segment reporting in 2018 , its operations in Latin America are included in the International outdoor segment results for all periods presented. See Note 1, Basis of Presentation . All of the Company’s advertising structures are used to generate revenue. Such revenue may be classified as revenue from contracts with customers or revenue from leases depending on the terms of the contract, as previously described. Revenue from Contracts with Customers The following tables show the changes in the Company’s contract balances from contracts with customers for the three and nine months ended September 30, 2018 and 2017 : Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2018 2017 2018 2017 Accounts receivable from contracts with customers: Beginning balance, net of allowance $ 1,104,255 $ 1,106,289 $ 1,196,101 $ 1,067,980 Additions (collections), net 19,628 6,487 (58,027 ) 55,186 Bad debt, net of recoveries (2,720 ) (6,189 ) (16,911 ) (16,579 ) Ending balance, net of allowance 1,121,163 1,106,587 1,121,163 1,106,587 Accounts receivable from leases, net of allowance 345,761 326,432 345,761 326,432 Total accounts receivable, net of allowance $ 1,466,924 $ 1,433,019 $ 1,466,924 $ 1,433,019 Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2018 2017 2018 2017 Deferred revenue from contracts with customers: Beginning balance $ 204,013 $ 206,807 $ 181,748 $ 191,916 Revenue recognized, included in beginning balance (106,893 ) (97,775 ) (131,449 ) (141,045 ) Additions, net of revenue recognized during period 96,173 88,297 142,994 146,458 Ending balance 193,293 197,329 193,293 197,329 Deferred revenue from leases 50,930 54,639 50,930 54,639 Total deferred revenue 244,223 251,968 244,223 251,968 Less: Non-current portion, included in other long-term liabilities 30,484 41,473 30,484 41,473 Current portion of deferred revenue, included in deferred income $ 213,739 $ 210,495 $ 213,739 $ 210,495 The Company’s contracts with customers generally have a term of one year or less; however, as of September 30, 2018 , the Company expects to recognize $243.1 million of revenue in future periods for remaining performance obligations from current contracts with customers that have an original expected duration of greater than one year, with substantially all of this amount to be recognized over the next five years . Commissions related to the Company’s media representation business have been excluded from this amount as they are contingent upon future sales. As part of the transition to the new revenue standard, the Company is not required to disclose information about remaining performance obligations for periods prior to the date of initial application. Revenue from Leases As of December 31, 2017 , the Company’s future minimum rentals under non-cancelable operating leases were as follows: (In thousands) 2018 $ 280,909 2019 37,024 2020 19,103 2021 13,683 2022 9,628 Thereafter 18,836 Total minimum future rentals $ 379,183 |
PROPERTY, PLANT AND EQUIPMENT,
PROPERTY, PLANT AND EQUIPMENT, INTANGIBLE ASSETS AND GOODWILL | 9 Months Ended |
Sep. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT, INTANGIBLE ASSETS AND GOODWILL | PROPERTY, PLANT AND EQUIPMENT, INTANGIBLE ASSETS AND GOODWILL Acquisition On October 10, 2018, the Company acquired Stuff Media LLC for $55.0 million . Property, Plant and Equipment The Company’s property, plant and equipment consisted of the following classes of assets as of September 30, 2018 and December 31, 2017 , respectively: (In thousands) September 30, December 31, Land, buildings and improvements $ 568,499 $ 562,702 Structures 2,808,059 2,864,442 Towers, transmitters and studio equipment 362,158 356,664 Furniture and other equipment 750,459 707,163 Construction in progress 87,337 74,810 4,576,512 4,565,781 Less: accumulated depreciation 2,857,421 2,681,067 Property, plant and equipment, net $ 1,719,091 $ 1,884,714 Indefinite-lived Intangible Assets The Company’s indefinite-lived intangible assets consist of Federal Communications Commission (“FCC”) broadcast licenses in its iHM segment and billboard permits in its Americas outdoor advertising segment. Due to significant differences in both business practices and regulations, billboards in the International outdoor segment are subject to long-term, finite contracts unlike the Company’s permits in the United States. Accordingly, there are no indefinite-lived intangible assets in the International outdoor segment. Annual Impairment Test on Indefinite-lived Intangible Assets The Company performs its annual impairment test on indefinite-lived intangible assets as of July 1 of each year. The impairment tests for indefinite-lived intangible assets consist of a comparison between the fair value of the indefinite-lived intangible asset at the market level with its carrying amount. If the carrying amount of the indefinite-lived intangible asset exceeds its fair value, an impairment loss is recognized equal to that excess. After an impairment loss is recognized, the adjusted carrying amount of the indefinite-lived asset is its new accounting basis. The fair value of the indefinite-lived asset is determined using the direct valuation method as prescribed in ASC 805-20-S99. Under the direct valuation method, the fair value of the indefinite-lived assets is calculated at the market level as prescribed by ASC 350-30-35. The Company engaged a third-party valuation firm, to assist it in the development of the assumptions and the Company’s determination of the fair value of its indefinite-lived intangible assets. The application of the direct valuation method attempts to isolate the income that is attributable to the indefinite-lived intangible asset alone (that is, apart from tangible and identified intangible assets and goodwill). It is based upon modeling a hypothetical “greenfield” build-up to a “normalized” enterprise that, by design, lacks inherent goodwill and whose only other assets have essentially been paid for (or added) as part of the build-up process. The Company forecasts revenue, expenses, and cash flows over a ten-year period for each of its markets in its application of the direct valuation method. The Company also calculates a “normalized” residual year which represents the perpetual cash flows of each market. The residual year cash flow was capitalized to arrive at the terminal value of the licenses in each market. Under the direct valuation method, it is assumed that rather than acquiring indefinite-lived intangible assets as part of a going concern business, the buyer hypothetically develops indefinite-lived intangible assets and builds a new operation with similar attributes from scratch. Thus, the buyer incurs start-up costs during the build-up phase which are normally associated with going concern value. Initial capital costs are deducted from the discounted cash flow model which results in value that is directly attributable to the indefinite-lived intangible assets. The key assumptions using the direct valuation method are market revenue growth rates, market share, profit margin, duration and profile of the build-up period, estimated start-up capital costs and losses incurred during the build-up period, the risk-adjusted discount rate and terminal values. This data is populated using industry normalized information representing an average FCC license or billboard permit within a market. During the third quarter of 2018, the Company recognized impairment charges of $33.1 million related to FCC licenses in several iHM radio markets and an impairment charge of $7.8 million related to permits in one Americas outdoor market. The Company recognized impairment charges related to its indefinite-lived intangible assets within one iHM radio market of $6.0 million during the three and nine months ended September 30, 2017 . Other Intangible Assets Other intangible assets include definite-lived intangible assets and permanent easements. The Company’s definite-lived intangible assets primarily include transit and street furniture contracts, talent and representation contracts, customer and advertiser relationships, and site leases and other contractual rights, all of which are amortized over the shorter of either the respective lives of the agreements or over the period of time the assets are expected to contribute directly or indirectly to the Company’s future cash flows. Permanent easements are indefinite-lived intangible assets which include certain rights to use real property not owned by the Company. The Company periodically reviews the appropriateness of the amortization periods related to its definite-lived intangible assets. These assets are recorded at cost. The following table presents the gross carrying amount and accumulated amortization for each major class of other intangible assets as of September 30, 2018 and December 31, 2017 , respectively: (In thousands) September 30, 2018 December 31, 2017 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Transit, street furniture and other outdoor $ 533,274 $ (440,452 ) $ 548,918 $ (440,284 ) Customer / advertiser relationships 1,226,329 (1,205,662 ) 1,226,314 (1,133,251 ) Talent contracts 161,962 (146,978 ) 161,962 (138,728 ) Representation contracts 77,507 (68,976 ) 77,507 (62,753 ) Permanent easements 162,920 — 162,920 — Other 373,675 (241,102 ) 372,292 (224,841 ) Total $ 2,535,667 $ (2,103,170 ) $ 2,549,913 $ (1,999,857 ) Total amortization expense related to definite-lived intangible assets for the three months ended September 30, 2018 and 2017 was $24.2 million and $49.5 million , respectively. Total amortization expense related to definite-lived intangible assets for the nine months ended September 30, 2018 and 2017 was $116.4 million and $148.2 million , respectively. As acquisitions and dispositions occur in the future, amortization expense may vary. The following table presents the Company’s estimate of amortization expense for each of the five succeeding fiscal years for definite-lived intangible assets: (In thousands) 2019 $ 45,875 2020 $ 39,144 2021 $ 34,303 2022 $ 29,153 2023 $ 21,377 Goodwill Annual Impairment Test to Goodwill The Company performs its annual impairment test on goodwill as of July 1 of each year. Each of the U.S. radio markets and outdoor advertising markets are components of the Company. The U.S. radio markets are aggregated into a single reporting unit and the U.S. outdoor advertising markets are aggregated into a single reporting unit for purposes of the goodwill impairment test using the guidance in ASC 350-20-55. The Company also determined that each country within its Americas outdoor segment and International outdoor segment constitutes a separate reporting unit. The goodwill impairment test is a two-step process. The first step, used to screen for potential impairment, compares the fair value of the reporting unit with its carrying amount, including goodwill. If applicable, the second step, used to measure the amount of the impairment loss, compares the implied fair value of the reporting unit goodwill with the carrying amount of that goodwill. Each of the Company’s reporting units is valued using a discounted cash flow model which requires estimating future cash flows expected to be generated from the reporting unit and discounting such cash flows to their present value using a risk-adjusted discount rate. Terminal values were also estimated and discounted to their present value. Assessing the recoverability of goodwill requires the Company to make estimates and assumptions about sales, operating margins, growth rates and discount rates based on its budgets, business plans, economic projections, anticipated future cash flows and marketplace data. There are inherent uncertainties related to these factors and management’s judgment in applying these factors. The Company concluded no goodwill impairment was required during the three and nine months ended September 30, 2018 . The Company recognized goodwill impairment of $1.6 million during the three and nine months ended September 30, 2017 related to one market in the Company's International outdoor segment. The following table presents the changes in the carrying amount of goodwill in each of the Company’s reportable segments: (In thousands) iHM Americas Outdoor International Outdoor Other Consolidated Balance as of December 31, 2016 $ 3,288,481 $ 505,478 $ 190,785 $ 81,831 $ 4,066,575 Impairment — — (1,591 ) — (1,591 ) Acquisitions 2,442 2,252 — — 4,694 Dispositions (35,715 ) — (1,817 ) — (37,532 ) Foreign currency — — 18,847 — 18,847 Assets held for sale — 89 — — 89 Balance as of December 31, 2017 $ 3,255,208 $ 507,819 $ 206,224 $ 81,831 $ 4,051,082 Dispositions (1,606 ) — — — (1,606 ) Foreign currency — — (5,535 ) — (5,535 ) Balance as of September 30, 2018 $ 3,253,602 $ 507,819 $ 200,689 $ 81,831 $ 4,043,941 |
LONG-TERM DEBT
LONG-TERM DEBT | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | LONG-TERM DEBT Long-term debt outstanding as of September 30, 2018 and December 31, 2017 consisted of the following: (In thousands) September 30, December 31, Senior Secured Credit Facilities $ — $ 6,300,000 Receivables Based Credit Facility due 2020 (1) — 405,000 Debtors-in-Possession Facility (1) — — 9.0% Priority Guarantee Notes Due 2019 — 1,999,815 9.0% Priority Guarantee Notes Due 2021 — 1,750,000 11.25% Priority Guarantee Notes Due 2021 — 870,546 9.0% Priority Guarantee Notes Due 2022 — 1,000,000 10.625% Priority Guarantee Notes Due 2023 — 950,000 CCO Receivables Based Credit Facility Due 2023 (2) — — Other secured subsidiary debt (3) 4,034 8,522 Total consolidated secured debt 4,034 13,283,883 14.0% Senior Notes Due 2021 — 1,763,925 Legacy Notes (4) — 475,000 10.0% Senior Notes Due 2018 (5) — 47,482 CCWH Senior Notes due 2022 2,725,000 2,725,000 CCWH Senior Subordinated Notes due 2020 2,200,000 2,200,000 Clear Channel International B.V. Senior Notes due 2020 375,000 375,000 Other subsidiary debt 26 24,615 Purchase accounting adjustments and original issue discount (6) (611 ) (136,653 ) Long-term debt fees (6) (28,612 ) (109,071 ) Long-term debt, net subject to compromise (7) 15,148,955 — Total debt, prior to reclassification to Liabilities subject to compromise 20,423,792 20,649,181 Less: current portion 347 14,972,367 Less: Amounts reclassified to Liabilities subject to compromise 15,148,955 — Total long-term debt $ 5,274,490 $ 5,676,814 (1) On June 14, 2018 (the “DIP Closing Date”), iHeartCommunications refinanced its receivables based credit facility with a new $450.0 million debtors-in-possession credit facility (the "DIP Facility"), which matures on the earlier of the emergence date from the Chapter 11 Cases or June 14, 2019. The DIP Facility also includes a feature to convert into an exit facility at emergence, upon meeting certain conditions. The DIP Facility accrues interest at LIBOR plus 2.25% . At closing, iHeartCommunications drew $125.0 million on the DIP Facility. On June 14, 2018, the Company used proceeds from the DIP Facility and cash on hand to repay the outstanding $306.4 million and $74.3 million term loan and revolving credit commitments, respectively, of the iHeartCommunications receivables based credit facility. Long-term debt fees incurred in relation to the DIP Facility were expensed as incurred and are reflected within Reorganization items, net in the Company's Consolidated Statement of Comprehensive Income (Loss). On August 16, 2018 and September 17, 2018, the Company repaid $100.0 million and $25.0 million , respectively, of the amount drawn under the DIP Facility. As of September 30, 2018 , the Company had a borrowing limit of $450.0 million under iHeartCommunications' DIP Facility, had no outstanding borrowings, had $65.3 million of outstanding letters of credit and had an availability block requirement of $37.5 million , resulting in $347.2 million of excess availability. (2) On June 1, 2018, a subsidiary of the Company's Outdoor advertising subsidiary, Clear Channel Outdoor, Inc. ("CCO"), refinanced CCOH's senior revolving credit facility and replaced it with an asset based credit facility that provided for revolving credit commitments of up to $75.0 million . On June 29, 2018, CCO entered into an amendment providing for a $50.0 million incremental increase of the facility, bringing the aggregate revolving credit commitments to $125.0 million . The facility has a five -year term, maturing in 2023. As of September 30, 2018 , the facility had $86.4 million of letters of credit outstanding and a borrowing base of $113.0 million , resulting in $26.6 million of excess availability. (3) Other secured subsidiary debt matures at various dates from 2018 through 2045. (4) iHeartCommunications' Legacy Notes, all of which were issued prior to the acquisition of iHeartCommunications by the Company in 2008, consist of $175.0 million of Senior Notes that matured on June 15, 2018, $300.0 million of Senior Notes that mature in 2027 and $57.1 million of Senior Notes due 2016 held by a subsidiary of the Company that remain outstanding but are eliminated for purposes of consolidation of the Company’s financial statements. (5) On January 4, 2018, a subsidiary of iHeartCommunications repurchased $5.4 million aggregate principal amount of 10.0% Senior Notes due 2018 that were held by unaffiliated third parties for $5.3 million in cash. On January 16, 2018, iHeartCommunications repaid the remaining balance of $42.1 million aggregate principal amount of 10.0% Senior Notes due 2018 at maturity. (6) As a result of the Company's Chapter 11 Cases, the Company expensed $67.1 million of deferred long-term debt fees and $131.1 million of original issue discount to Reorganization items, net, in the Consolidated Statement of Comprehensive Income (Loss) for the nine months ended September 30, 2018 . (7) In connection with the Company's Chapter 11 Cases, the $6.3 billion outstanding under the Senior Secured Credit Facilities, the $1,999.8 million outstanding under the 9.0% Priority Guarantee Notes due 2019, the $1,750.0 million outstanding under the 9.0% Priority Guarantee Notes due 2021, the $870.5 million of 11.25% Priority Guarantee Notes due 2021, the $1,000.0 million outstanding under the 9.0% Priority Guarantee Notes due 2022, the $950.0 million outstanding under the 10.625% Priority Guarantee Notes due 2023, $6.1 million outstanding Other Secured Subsidiary debt, the $1,781.6 million outstanding under the 14.0% Senior Notes due 2021, the $475.0 million outstanding under the Legacy Notes and $16.0 million outstanding Other Subsidiary Debt have been reclassified to Liabilities subject to compromise in the Company's Consolidated Balance Sheet as of September 30, 2018 . As of the Petition Date, the Company ceased making principal and interest payments, and ceased accruing interest expense in relation to long-term debt reclassified as Liabilities subject to compromise. The Company’s weighted average interest rate was 9.1% and 8.9% as of September 30, 2018 and December 31, 2017 , respectively. The aggregate market value of the Company’s debt based on market prices for which quotes were available was approximately $15.4 billion as of September 30, 2018 and December 31, 2017 . Under the fair value hierarchy established by ASC 820-10-35, the market value of the Company’s debt is classified as either Level 1 or Level 2. Debtors-in-Possession Facility On June 14, 2018, iHeartCommunications, Inc., an indirect subsidiary of the Company, entered into a Superpriority Secured Debtor-in-Possession Credit Agreement (the “DIP Credit Agreement”), as parent borrower, with iHeartMedia Capital I, LLC (“Holdings”), as guarantor, certain Debtor subsidiaries of iHeartCommunications named therein, as subsidiary borrowers (the “Subsidiary Borrowers”), Citibank, N.A., as a lender and administrative agent, the swing line lenders and letter of credit issuers named therein and the other lenders from time to time party thereto. Size and Availability The DIP Credit Agreement provides for a first-out asset-based revolving credit facility in the aggregate principal amount of up to $450 million , with amounts available from time to time (including in respect of letters of credit) equal to the lesser of (i) the borrowing base, which equals 90.0% of the eligible accounts receivable of iHeartCommunications and the subsidiary guarantors, subject to customary reserves and eligibility criteria, and (ii) the aggregate revolving credit commitments. As of the DIP Closing Date, the aggregate revolving credit commitments were $450.0 million . Subject to certain conditions, iHeartCommunications may at any time request one or more increases in the amount of revolving credit commitments, in minimum amounts of $10.0 million and in an aggregate maximum amount of $100.0 million . The proceeds from the DIP Facility were made available on the DIP Closing Date, and were used in combination with cash on hand to fully pay off and terminate iHeartCommunications’ asset-based credit facility and all commitments thereunder governed by the credit agreement, dated as of November 30, 2017, by and among iHeartCommunications, Holdings, the Subsidiary Borrowers, and the lenders and issuing banks from time to time party thereto and TPG Specialty Lending, Inc., as administrative agent and collateral agent. Interest Rate and Fees Borrowings under the DIP Credit Agreement bear interest at a rate per annum equal to the applicable rate plus, at iHeartCommunications’ option, either (1) a base rate determined by reference to the highest of (a) the rate announced from time to time by the Administrative Agent at its principal office, (b) the Federal Funds rate plus 0.50% , and (c) the Eurocurrency rate for an interest period of one month plus 1.00% or (2) a Eurocurrency rate that is the greater of (a) 1.00% , and (b) the quotient of (i) the ICE LIBOR rate, or if such rate is not available, the rate determined by the Administrative Agent, and (ii) one minus the maximum rate at which reserves are required to be maintained for Eurocurrency liabilities. The applicable rate for borrowings under the DIP Credit Agreement is 2.25% with respect to Eurocurrency rate loans and 1.25% with respect to base rate loans. In addition to paying interest on outstanding principal under the DIP Credit Agreement, iHeartCommunications is required to pay a commitment fee of 0.50% per annum to the lenders under the DIP Credit Agreement in respect of the unutilized revolving commitments thereunder. iHeartCommunications must also pay a letter of credit fee equal to 2.25% per annum. Maturity Borrowings under the DIP Credit Agreement will mature, and lending commitments thereunder will terminate, upon the earliest to occur of: (a) June 14, 2019 (the “Scheduled Termination Date”) (provided that to the extent the Consummation Date (as defined below) has not occurred solely as a result of failure to obtain necessary regulatory approvals, the Scheduled Termination Date shall be September 16, 2019) and (b) the date of the substantial consummation (as defined in the Bankruptcy Code) of a confirmed plan of reorganization pursuant to an order of the Bankruptcy Court (the “Consummation Date”); provided, that if the DIP Facility is converted into an exit facility as described under “Conversion to Exit Facility” below, then the borrowings will mature on the maturity date set forth in the credit agreement governing such exit facility. Prepayments If at any time (a) the revolving credit exposures exceed the revolving credit commitments (this clause (a), the “Excess”) or (b) the lesser of the borrowing base and the aggregate revolving credit commitments minus $37.5 million minus the aggregate revolving credit exposures (the clause (b), the “Excess Availability”), is for any reason less than $0 , iHeartCommunications will be required to repay all revolving loans outstanding, and cash collateralize letters of credit in an aggregate amount equal to such Excess or until Excess Availability is not less than $0 , as applicable. iHeartCommunications may voluntarily repay, without premium or penalty, outstanding amounts under the revolving credit facility at any time. Guarantees and Security The facility is guaranteed by, subject to certain exceptions, Holdings and iHeartCommunications’ Debtor subsidiaries. All obligations under the DIP Credit Agreement, and the guarantees of those obligations, are secured by a perfected first priority senior priming lien on all of iHeartCommunications’ and all of the subsidiary guarantors’ accounts receivable and related proceeds thereof, subject to certain exceptions. Certain Covenants and Events of Default The DIP Credit Agreement includes negative covenants that, subject to significant exceptions, limit iHeartCommunications’ ability and the ability of its restricted subsidiaries to, among other things: • incur additional indebtedness; • create liens on assets; • engage in mergers, consolidations, liquidations and dissolutions; • sell assets; • pay dividends and distributions or repurchase iHeartCommunications' capital stock; • make investments, loans, or advances; • prepay certain junior indebtedness; • engage in certain transactions with affiliates; • amend material agreements governing certain junior indebtedness; and • change lines of business. The DIP Credit Agreement includes certain customary representations and warranties, affirmative covenants and events of default, including but not limited to, payment defaults, breach of representations and warranties, covenant defaults, cross-defaults to certain indebtedness, certain bankruptcy-related events, certain events under ERISA, material judgments and a change of control. If an event of default occurs, the lenders under the DIP Credit Agreement will be entitled to take various actions, including the acceleration of all amounts due under the DIP Credit Agreement and all actions permitted to be taken under the loan documents or applicable law, subject to the terms of the DIP Order. Conversion to Exit Facility Upon the satisfaction or waiver of the conditions set forth in the DIP Credit Agreement and the entry by the Bankruptcy Court of an order confirming an acceptable plan of reorganization, the DIP Facility will convert into an exit facility on the terms set forth in an exhibit to the DIP Credit Agreement. Surety Bonds, Letters of Credit and Guarantees As of September 30, 2018 , the Company and its subsidiaries had outstanding surety bonds, commercial standby letters of credit and bank guarantees of $70.5 million , $153.9 million and $41.0 million , respectively. A portion of the outstanding bank guarantees were supported by $20.5 million of cash collateral. These surety bonds, letters of credit and bank guarantees relate to various operational matters including insurance, bid, concession and performance bonds as well as other items. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES iHeartCommunications' filing of the Chapter 11 Cases constitutes an event of default that accelerated its obligations under its debt agreements. Due to the Chapter 11 Cases, however, the creditors' ability to exercise remedies under iHeartCommunications' debt agreements were stayed as of March 14, 2018, the date of the Chapter 11 petition filing, and continue to be stayed. On March 21, 2018, Wilmington Savings Fund Society, FSB ("WSFS"), solely in its capacity as successor indenture trustee to the 6.875% Senior Notes due 2018 and 7.25% Senior Notes due 2027, and not in its individual capacity, filed an adversary proceeding against the Company in the Chapter 11 Cases. In the complaint, WSFS alleged, among other things, that the "springing lien" provisions of the priority guarantee notes indentures and the priority guarantee notes security agreements amounted to "hidden encumbrances" on the Company's property, to which the holders of the 6.875% Senior Notes due 2018 and 7.25% Senior Notes due 2027 were entitled to "equal and ratable" treatment. On March 26, 2018, Delaware Trust Co. ("Delaware Trust"), in its capacity as successor indenture trustee to the 14% Senior Notes due 2021, filed a motion to intervene as a plaintiff in the adversary proceeding filed by WSFS. In the complaint, Delaware Trust alleged, among other things, that the indenture governing the 14% Senior Notes due 2021 also has its own "negative pledge" covenant, and, therefore, to the extent the relief sought by WSFS in its adversary proceeding is warranted, the holders of the 14% Senior Notes due 2021 are also entitled to the same "equal and ratable" liens on the same property. On April 6, 2018, the Company filed a motion to dismiss the adversary proceeding and a hearing on such motion was held on May 7, 2018. We have answered the complaint and discovery is proceeding. The trial was held on October 24, 2018. The parties are awaiting a ruling from the court. On October 9, 2018, WSFS, solely in its capacity as successor indenture trustee to the 6.875% Senior Notes due 2018 and 7.25% Senior Notes due 2027, and not in its individual capacity, filed an adversary proceeding against Clear Channel Holdings Inc. (“CCH”) and certain shareholders of iHeartMedia. The named shareholder defendants are Bain Capital LP; Thomas H. Lee Partners L.P.; Abrams Capital L.P.; and Highfields Capital Management L.P. In the complaint, WSFS alleged, among other things, that the shareholder defendants engaged in a “pattern of inequitable and bad faith conduct, including the abuse of their insider positions to benefit themselves at the expense of third-party creditors including particularly the Legacy Noteholders.” The complaint asks the court to grant relief in the form of equitable subordination of the shareholder defendants’ term loan, priority guarantee notes and 2021 notes claims to any and all claims of the legacy noteholders. In addition, the complaint seeks to have any votes to accept the Fourth Amended Plan of Reorganization by Abrams and Highfields on account of their 2021 notes claims, and any votes to accept the Fourth Amended Plan of Reorganization by defendant CCH on account of its junior notes claims, to be designated and disqualified. The Court held a pre-trial conference and oral argument on October 18, 2018. Discovery has not yet begun in this proceeding. The Company and its subsidiaries are involved in certain legal proceedings arising in the ordinary course of business and, as required, have accrued an estimate of the probable costs for the resolution of those claims for which the occurrence of loss is probable and the amount can be reasonably estimated. These estimates have been developed in consultation with counsel and are based upon an analysis of potential results, assuming a combination of litigation and settlement strategies. It is possible, however, that future results of operations for any particular period could be materially affected by changes in the Company’s assumptions or the effectiveness of its strategies related to these proceedings. Additionally, due to the inherent uncertainty of litigation, there can be no assurance that the resolution of any particular claim or proceeding would not have a material adverse effect on the Company’s financial condition or results of operations. Although the Company is involved in a variety of legal proceedings in the ordinary course of business, a large portion of the Company’s litigation arises in the following contexts: commercial disputes; defamation matters; employment and benefits related claims; governmental fines; intellectual property claims; and tax disputes. Stockholder Litigation On May 9, 2016, a stockholder of Clear Channel Outdoor Holdings, Inc. ("CCOH") filed a derivative lawsuit in the Court of Chancery of the State of Delaware, captioned GAMCO Asset Management Inc. v. iHeartMedia Inc. et al., C.A. No. 12312-VCS. The complaint named as defendants the Company, iHeartCommunications, Bain Capital Partners, LLC and Thomas H. Lee Partners, L.P. (together, the "Sponsor Defendants"), the Company's private equity sponsors and majority owners, and the members of CCOH's board of directors. CCOH also was named as a nominal defendant. The complaint alleged that CCOH had been harmed by the intercompany agreements with iHeartCommunications , CCOH’s lack of autonomy over its own cash and the actions of the defendants in serving the interests of the Company, iHeartCommunications and the Sponsor Defendants to the detriment of CCOH and its minority stockholders. Specifically, the complaint alleged that the defendants breached their fiduciary duties by causing CCOH to: (i) continue to loan cash to iHeartCommunications under the intercompany note at below-market rates; (ii) abandon its growth and acquisition strategies in favor of transactions that would provide cash to the Company and iHeartCommunications ; (iii) issue new debt in the CCIBV note offering (the "CCIBV Note Offering") to provide cash to the Company and iHeartCommunications through a dividend; and (iv) effect the sales of certain outdoor markets in the U.S. (the "Outdoor Asset Sales") allegedly to provide cash to the Company and iHeartCommunications through a dividend. The complaint also alleged that the Company, iHeartCommunications and the Sponsor Defendants aided and abetted the directors' breaches of their fiduciary duties. The complaint further alleged that the Company, iHeartCommunications and the Sponsor Defendants were unjustly enriched as a result of these transactions and that these transactions constituted a waste of corporate assets for which the defendants are liable to CCOH. The plaintiff sought, among other things, a ruling that the defendants breached their fiduciary duties to CCOH and that the Company, iHeartCommunications and the Sponsor Defendants aided and abetted the CCOH board of directors' breaches of fiduciary duty, rescission of payments made by CCOH to iHeartCommunications and its affiliates pursuant to dividends declared in connection with the CCIBV Note Offering and Outdoor Asset Sales, and an order requiring the Company, iHeartCommunications and the Sponsor Defendants to disgorge all profits they have received as a result of the alleged fiduciary misconduct. On July 20, 2016, the defendants filed a motion to dismiss plaintiff's verified stockholder derivative complaint for failure to state a claim upon which relief can be granted. On November 23, 2016, the Court granted defendants' motion to dismiss all claims brought by the plaintiff. On December 19, 2016, the plaintiff filed a notice of appeal of the ruling. The oral hearing on the appeal was held on October 11, 2017. On October 12, 2017, the Supreme Court of Delaware affirmed the lower court's ruling, dismissing the case. On December 29, 2017, another stockholder of CCOH filed a derivative lawsuit in the Court of Chancery of the State of Delaware, captioned Norfolk County Retirement System, v. iHeartMedia, Inc., et al., C.A. No. 2017-0930-JRS. The complaint names as defendants the Company, iHeartCommunications, the Sponsor Defendants, and the members of CCOH's board of directors. CCOH is named as a nominal defendant. The complaint alleges that CCOH has been harmed by the CCOH Board’s November 2017 decision to extend the maturity date of the intercompany revolving note (the “Third Amendment”) at what the complaint describes as far-below-market interest rates. Specifically, the complaint alleges that (i) the Company and Sponsor defendants breached their fiduciary duties by exploiting their position of control to require CCOH to enter the Third Amendment on terms unfair to CCOH; (ii) the CCOH Board breached their duty of loyalty by approving the Third Amendment and elevating the interests of the Company, iHeartCommunications and the Sponsor Defendants over the interests of CCOH and its minority unaffiliated stockholders; and (iii) the terms of the Third Amendment could not have been agreed to in good faith and represent a waste of corporate assets by the CCOH Board. The complaint further alleges that the Company, iHeartCommunications and the Sponsor defendants were unjustly enriched as a result of the unfairly favorable terms of the Third Amendment. The plaintiff is seeking, among other things, a ruling that the defendants breached their fiduciary duties to CCOH, a modification of the Third Amendment to bear a commercially reasonable rate of interest, and an order requiring disgorgement of all profits, benefits and other compensation obtained by defendants as a result of the alleged breaches of fiduciary duties. On March 7, 2018, the defendants filed a motion to dismiss plaintiff's verified derivative complaint for failure to state a claim upon which relief can be granted. On March 16, 2018, the Company filed a Notice of Suggestion of Pendency of Bankruptcy and Automatic Stay of Proceedings. On May 4, 2018, plaintiff filed its response to the motion to dismiss. On June 26, 2018, the defendants filed a reply brief in further support of their motion to dismiss. Oral argument on the motion to dismiss was held on September 20, 2018. We are awaiting a ruling by the Court. On August 27, 2018, the same stockholder of CCOH that had filed a derivative lawsuit against the Company and others in 2016 (GAMCO Asset Management Inc.) filed a putative class action lawsuit in the Court of Chancery of the State of Delaware, captioned GAMCO Asset Management, Inc. v. Hendrix, et al., C.A. No. 2018-0633-JRS. The complaint names as defendants the Sponsor Defendants and the members of CCOH’s board of directors. The complaint alleges that minority shareholders in CCOH during the period November 8, 2017 to March 14, 2018 were harmed by decisions of the CCOH Board and the intercompany note committee of the Board relating to the Intercompany Note. Specifically, the complaint alleges that (i) the members of the intercompany note committee breached their fiduciary duties by not demanding payment under the Intercompany Note and issuing a simultaneous dividend after a threshold tied to the Company’s liquidity had been reached; (ii) the CCOH Board breached their fiduciary duties by approving the Third Amendment rather than allowing the Intercompany Note to expire; (iii) the CCOH Board breached their fiduciary duties by not demanding payment under the Intercompany Note and issuing a simultaneous dividend after a threshold tied to the Company’s liquidity had been reached; (iv) the Sponsor Defendants breached their fiduciary duties by not directing the CCOH Board to permit the Intercompany Note to expire and to declare a dividend. The complaint further alleges that the Sponsor Defendants aided and abetted the Board’s alleged breach of fiduciary duties. The plaintiff seeks, among other things, a ruling that the CCOH Board, the intercompany note committee, and the Sponsor Defendants breached their fiduciary duties and that the Sponsor Defendants aided and abetted the Board’s breach of fiduciary duty; and an award of damages, together with pre- and post-judgment interests, to the putative class of minority shareholders. China Investigation Several employees of Clear Media Limited, an indirect, non-wholly-owned subsidiary of the Company whose ordinary shares are listed, but are currently suspended from trading on, the Hong Kong Stock Exchange, are subject to a police investigation in China for misappropriation of funds. The police investigation is ongoing, and the Company is not aware of any litigation, claim or assessment pending against the Company. Based on information known to date, the Company believes any contingent liabilities arising from potential misconduct that has been or may be identified by the investigations are not material to the Company's consolidated financial statements. The Company advised both the United States Securities and Exchange Commission and the United States Department of Justice of the investigation at Clear Media Limited and is cooperating to provide information in response to inquiries from the agencies. The Clear Media Limited investigation could implicate the books and records, internal controls and anti-bribery provisions of the U.S. Foreign Corrupt Practices Act, which statute and regulations provide for potential monetary penalties as well as criminal and civil sanctions. It is possible that monetary penalties and other sanctions could be assessed on the Company in connection with this matter. The nature and amount of any monetary penalty or other sanctions cannot reasonably be estimated at this time. Italy Investigation As described in Note 1 to these consolidated financial statements, during the three months ended June 30, 2018, the Company identified misstatements associated with VAT obligations related to its subsidiary in Italy. Upon identification of these misstatements, the Company undertook certain procedures, including a forensic investigation, which is ongoing. In addition, the Company voluntarily disclosed the matter and preliminary findings to the Italian tax authorities in order to commence a discussion on the appropriate calculation of the VAT position. The current expectation is that the Company may have to repay to the Italian tax authority a substantial portion of the VAT previously applied as a credit, amounting to approximately $17 million , including estimated possible penalties and interest. The discussion with the tax authorities is at an early stage and therefore the ultimate amount that will be paid to the tax authorities in Italy is unknown. The ultimate amount to be paid may differ from the Company’s estimates, and such differences may be material. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Income Tax Expense The Company’s income tax expense for the three and nine months ended September 30, 2018 and 2017 , respectively, consisted of the following components: (In thousands) Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Current tax benefit (expense) $ (14,979 ) $ 7,522 $ (25,168 ) $ (36,852 ) Deferred tax expense (2,790 ) (9,573 ) (22,020 ) (13,291 ) Income tax expense $ (17,769 ) $ (2,051 ) $ (47,188 ) $ (50,143 ) The effective tax rates for the three and nine months ended September 30, 2018 were 19.8% and (12.4)% , respectively. The effective tax rates were primarily impacted by the valuation allowance recorded against deferred tax assets resulting from current period net operating losses in U.S. federal, state and certain foreign jurisdictions due to uncertainty regarding the Company's ability to realize those assets in future periods. The effective tax rates for the three and nine months ended September 30, 2017 were (0.8)% and (6.6)% , respectively. The effective tax rates were primarily impacted by the valuation allowance recorded against deferred tax assets resulting from current year net operating losses in U.S. federal, state and certain foreign jurisdictions due to uncertainty regarding the Company's ability to realize those assets in future periods. 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”) which reduced the U.S. federal corporate tax rate from 35% to 21% effective January 1, 2018. During the three months ended September 30, 2018 , adjustments to the provisional income tax benefit recorded in December 2017 from the enactment of the Tax Act were not material. At September 30, 2018 , we have not yet completed our accounting for the income tax effects of the Tax Act, but have made reasonable estimates of those effects on our existing deferred income tax balances. The final financial statement impact of the Tax Act may differ from our previously recorded estimates, possibly materially, due to, among other things, changes in interpretations of the Tax Act, any legislative action to address questions that arise because of the Tax Act, and changes in accounting standards for income taxes or related interpretations in response to the Tax Act, or any updates to estimates the company has utilized to calculate the provisional impacts. The SEC has issued rules that allow for a measurement period of up to one year after the enactment date of the Tax Act to finalize the recording of the related income tax impacts. |
STOCKHOLDERS' DEFICIT
STOCKHOLDERS' DEFICIT | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
STOCKHOLDERS' DEFICIT | STOCKHOLDERS’ DEFICIT The Company reports its noncontrolling interests in consolidated subsidiaries as a component of equity separate from the Company’s equity. The following table shows the changes in stockholders' deficit attributable to the Company and the noncontrolling interests of subsidiaries in which the Company has a majority, but not total, ownership interest: (In thousands) The Company Noncontrolling Interests Consolidated Balance as of January 1, 2018 $ (11,385,535 ) $ 41,191 $ (11,344,344 ) Net loss (416,815 ) (10,732 ) (427,547 ) Dividends declared and other payments to noncontrolling interests — (10,381 ) (10,381 ) Share-based compensation 1,628 6,757 8,385 Foreign currency translation adjustments (11,062 ) (8,980 ) (20,042 ) Reclassification adjustments 1,274 151 1,425 Other, net (78 ) (653 ) (731 ) Balances as of September 30, 2018 $ (11,810,588 ) $ 17,353 $ (11,793,235 ) (In thousands) The Company Noncontrolling Interests Consolidated Balance as of January 1, 2017 $ (11,030,835 ) $ 128,974 $ (10,901,861 ) Net income (loss) (816,802 ) 7,614 (809,188 ) Dividends declared and other payments to noncontrolling interests — (43,540 ) (43,540 ) Share-based compensation 1,867 7,153 9,020 Purchase of additional noncontrolling interests (378 ) (575 ) (953 ) Disposal of noncontrolling interest — (2,438 ) (2,438 ) Foreign currency translation adjustments 33,473 9,598 43,071 Unrealized holding loss on marketable securities (195 ) (23 ) (218 ) Reclassification adjustments 4,078 485 4,563 Other, net (323 ) (1,235 ) (1,558 ) Balances as of September 30, 2017 $ (11,809,115 ) $ 106,013 $ (11,703,102 ) The Company has granted restricted stock and CCOH has granted restricted stock, restricted stock units and options to purchase shares of CCOH's Class A common stock to certain key individuals. COMPUTATION OF LOSS PER SHARE (In thousands, except per share data) Three Months Ended Nine Months Ended 2018 2017 2018 2017 NUMERATOR: Net income (loss) attributable to the Company – common shares $ 70,078 $ (250,490 ) $ (416,815 ) $ (816,802 ) DENOMINATOR: Weighted average common shares outstanding - basic 85,544 85,072 85,348 84,900 Weighted average common shares outstanding - diluted (1) 85,622 85,072 85,348 84,900 Net income (loss) attributable to the Company per common share: Basic $ 0.82 $ (2.94 ) $ (4.88 ) $ (9.62 ) Diluted $ 0.82 $ (2.94 ) $ (4.88 ) $ (9.62 ) (1) Outstanding equity awards of 6.6 million and 8.5 million for the three months ended September 30, 2018 and 2017 , respectively, and 7.6 million and 8.5 million for the nine months ended September 30, 2018 and 2017 , respectively, were not included in the computation of diluted earnings per share because to do so would have been antidilutive. |
OTHER INFORMATION
OTHER INFORMATION | 9 Months Ended |
Sep. 30, 2018 | |
Other Income and Expenses [Abstract] | |
OTHER INFORMATION | OTHER INFORMATION Other Comprehensive Income (Loss) The total decrease in other comprehensive income (loss) related to the impact of pensions on deferred income tax liabilities was $0.3 million for the three and nine months ended September 30, 2018 . There was no change in deferred income tax liabilities resulting from adjustments to comprehensive income (loss) for the three and nine months ended September 30, 2017 . Investments During the second quarter of 2018, the Company sold its ownership interest in one of its cost method investments, resulting in a gain on sale of $9.9 million , which is reflected within Other income (expense), net in the Company's Consolidated Statement of Comprehensive Income (Loss) for the nine months ended September 30, 2018 . During the third quarter of 2018, the Company sold one of its investments for net cash proceeds of $11.1 million . |
SEGMENT DATA
SEGMENT DATA | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
SEGMENT DATA | SEGMENT DATA The Company’s reportable segments, which it believes best reflect how the Company is currently managed, are iHM, Americas outdoor advertising and International outdoor advertising. Revenue and expenses earned and charged between segments are recorded at estimated fair value and eliminated in consolidation. The iHM segment provides media and entertainment services via broadcast and digital delivery and also includes the Company’s events and national syndication businesses. The Americas outdoor advertising segment consists of operations primarily in the United States. The International outdoor advertising segment primarily includes operations in Europe, Asia and Latin America. The Other category includes the Company’s media representation business as well as other general support services and initiatives that are ancillary to the Company’s other businesses. Corporate includes infrastructure and support, including information technology, human resources, legal, finance and administrative functions for each of the Company’s reportable segments, as well as overall executive, administrative and support functions. Share-based payments are recorded in corporate expense. The Company re-evaluated its segment reporting and determined that its Latin American operations should be managed by its International outdoor leadership team. As a result, beginning on January 1, 2018 , the operations of Latin America are no longer reflected within the Company’s Americas outdoor segment and are included in the results of its International segment. Accordingly, the Company has recast the corresponding segment disclosures for prior periods to include Latin America within the International outdoor segment. The following table presents the Company's reportable segment results for the three and nine months ended September 30, 2018 and 2017 : (In thousands) iHM Americas Outdoor International Outdoor Other Corporate and other reconciling items Eliminations Consolidated Three Months Ended September 30, 2018 Revenue $ 873,404 $ 303,421 $ 360,318 $ 47,088 $ — $ (1,466 ) $ 1,582,765 Direct operating expenses 268,606 131,241 230,440 — — (23 ) 630,264 Selling, general and administrative expenses 303,451 49,247 79,550 25,985 — (476 ) 457,757 Corporate expenses — — — — 85,160 (967 ) 84,193 Depreciation and amortization 34,882 39,783 36,627 3,222 6,186 — 120,700 Impairment charges — — — — 40,922 — 40,922 Other operating expense, net — — — — (1,637 ) — (1,637 ) Operating income (loss) $ 266,465 $ 83,150 $ 13,701 $ 17,881 $ (133,905 ) $ — $ 247,292 Intersegment revenues $ 23 $ 1,443 $ — $ — $ — $ — $ 1,466 Capital expenditures $ 17,750 $ 25,826 $ 21,921 $ 896 $ 2,555 $ — $ 68,948 Share-based compensation expense $ — $ — $ — $ — $ 3,588 $ — $ 3,588 Three Months Ended September 30, 2017 Revenue $ 859,531 $ 293,807 $ 350,623 $ 34,452 $ — $ (1,656 ) $ 1,536,757 Direct operating expenses 265,795 130,269 227,677 — — — 623,741 Selling, general and administrative expenses 287,676 49,007 79,532 23,298 — (717 ) 438,796 Corporate expenses — — — — 78,906 (939 ) 77,967 Depreciation and amortization 58,089 44,457 35,464 3,893 7,846 — 149,749 Impairment charges — — — — 7,631 — 7,631 Other operating income, net — — — — (13,215 ) — (13,215 ) Operating income (loss) $ 247,971 $ 70,074 $ 7,950 $ 7,261 $ (107,598 ) $ — $ 225,658 Intersegment revenues $ — $ 1,656 $ — $ — $ — $ — $ 1,656 Capital expenditures $ 14,009 $ 4,397 $ 26,932 $ 184 $ 2,802 $ — $ 48,324 Share-based compensation expense $ — $ — $ — $ — $ 3,539 $ — $ 3,539 (In thousands) iHM Americas Outdoor International Outdoor Other Corporate and other reconciling items Eliminations Consolidated Nine Months Ended September 30, 2018 Revenue $ 2,471,239 $ 859,190 $ 1,114,927 $ 113,803 $ — $ (5,904 ) $ 4,553,255 Direct operating expenses 773,424 386,427 709,479 — — (70 ) 1,869,260 Selling, general and administrative expenses 929,308 146,021 235,473 74,420 — (2,988 ) 1,382,234 Corporate expenses — — — — 245,399 (2,846 ) 242,553 Depreciation and amortization 149,714 127,410 113,875 10,242 18,537 — 419,778 Impairment charges — — — — 40,922 — 40,922 Other operating expense, net — — — — (5,212 ) — (5,212 ) Operating income (loss) $ 618,793 $ 199,332 $ 56,100 $ 29,141 $ (310,070 ) $ — $ 593,296 Intersegment revenues $ 84 $ 5,820 $ — $ — $ — $ — $ 5,904 Capital expenditures $ 42,211 $ 50,214 $ 57,487 $ 1,083 $ 6,574 $ — $ 157,569 Share-based compensation expense $ — $ — $ — $ — $ 8,385 $ — $ 8,385 Nine Months Ended September 30, 2017 Revenue $ 2,501,084 $ 854,344 $ 1,005,954 $ 99,332 $ — $ (5,444 ) $ 4,455,270 Direct operating expenses 773,327 393,953 645,222 3 — — 1,812,505 Selling, general and administrative expenses 894,669 148,824 221,773 74,519 — (2,694 ) 1,337,091 Corporate expenses — — — — 236,237 (2,750 ) 233,487 Depreciation and amortization 174,946 130,127 102,711 11,097 24,769 — 443,650 Impairment charges — — — — 7,631 — 7,631 Other operating income, net — — — — 24,785 — 24,785 Operating income (loss) $ 658,142 $ 181,440 $ 36,248 $ 13,713 $ (243,852 ) $ — $ 645,691 Intersegment revenues $ — $ 5,444 $ — $ — $ — $ — $ 5,444 Capital expenditures $ 44,353 $ 46,394 $ 86,206 $ 551 $ 7,440 $ — $ 184,944 Share-based compensation expense $ — $ — $ — $ — $ 9,020 $ — $ 9,020 |
CERTAIN RELATIONSHIPS AND RELAT
CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS | 9 Months Ended |
Sep. 30, 2018 | |
Related Party Transactions [Abstract] | |
CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS | CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS The Company is a party to a management agreement with certain affiliates of Bain Capital Partners, LLC and Thomas H. Lee Partners, L.P. (together, the "Sponsors") and certain other parties pursuant to which such affiliates of the Sponsors will provide management and financial advisory services until December 31, 2018. These agreements require management fees to be paid to such affiliates of the Sponsors for such services at a rate not greater than $ 15.0 million per year, plus reimbursable expenses. For the nine months ended September 30, 2018 , the Company recognized management fees and reimbursable expenses of $2.9 million . In connection with the Reorganization, the Company is not recognizing management fees following the Petition Date. The Company recognized management fees and reimbursable expenses of $3.8 million and $11.4 million for the three and nine months ended September 30, 2017 , respectively. |
LIABILITIES SUBJECT TO COMPROMI
LIABILITIES SUBJECT TO COMPROMISE | 9 Months Ended |
Sep. 30, 2018 | |
Reorganizations [Abstract] | |
LIABILITIES SUBJECT TO COMPROMISE | LIABILITIES SUBJECT TO COMPROMISE As discussed in Note 1, "Basis of Presentation", since the Petition Date, the Company has been operating as debtor in possession under the jurisdiction of the Bankruptcy Court and in accordance with provisions of the Bankruptcy Code. On the accompanying Consolidated Balance Sheets, the caption “Liabilities subject to compromise” reflects the expected allowed amount of the pre-petition claims that are not fully secured and that have at least a possibility of not being repaid at the full claim amount. Liabilities subject to compromise at September 30, 2018 consisted of the following: (In thousands) September 30, Accounts payable $ 44,132 Accrued expenses 27,509 Deferred taxes 622,415 Other long-term liabilities 89,730 Accounts payable, accrued and other liabilities 783,786 Debt subject to compromise 15,148,955 Accrued interest on debt subject to compromise 542,673 Long-term debt and accrued interest 15,691,628 Total liabilities subject to compromise $ 16,475,414 Determination of the value at which liabilities will ultimately be settled cannot be made until the Bankruptcy Court approves the Plan of Reorganization. The Company will continue to evaluate the amount and classification of its pre-petition liabilities. Any additional liabilities that are subject to compromise will be recognized accordingly, and the aggregate amount of liabilities subject to compromise may change. REORGANIZATION ITEMS, NET Reorganization items incurred as a result of the Chapter 11 Cases are presented separately in the accompanying statements of operations for the three and nine months ended September 30, 2018 and were as follows: (In thousands) Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 Write-off of deferred long-term debt fees $ — $ 67,079 Write-off of original issue discount on debt subject to compromise — 131,100 Debtor-in-possession refinancing costs — 10,546 Professional fees and other bankruptcy related costs 52,475 104,545 Reorganization items, net $ 52,475 $ 313,270 Professional fees included in Reorganization items, net represent fees for post-petition expenses related to the Chapter 11 Cases. Write-off of deferred long-term debt fees and write-off of original issue discount are included in Reorganization items, net. As of September 30, 2018 , $56.2 million of Reorganization items, net were unpaid and accrued in Accounts Payable and Accrued Expenses in the accompanying Consolidated Balance Sheet. Reorganization items, net of $6.7 million relating to the Debtor-in-possession financing costs were netted against the $125.0 million proceeds received from issuance of the DIP Facility. CONDENSED COMBINED DEBTOR-IN-POSSESSION FINANCIAL INFORMATION The financial statements below represent the condensed combined financial statements of the Debtors. The results of the Company’s Non-Filing Entities, which are comprised primarily of the Company's Americas outdoor and International outdoor segments, are not included in these condensed combined financial statements. Intercompany transactions among the Debtors have been eliminated in the financial statements contained herein. Intercompany transactions among the Debtors and the Non-Filing Entities have not been eliminated in the Debtors’ financial statements. Debtors' Balance Sheet (In thousands) September 30, 2018 (Unaudited) CURRENT ASSETS Cash and cash equivalents $ 76,154 Accounts receivable, net of allowance of $24,455 809,974 Prepaid expenses 115,308 Other current assets 25,651 Total Current Assets 1,027,087 PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment, net 462,609 INTANGIBLE ASSETS AND GOODWILL Indefinite-lived intangibles - licenses 2,409,326 Other intangibles, net 171,134 Goodwill 3,335,433 OTHER ASSETS Other assets 58,080 Total Assets $ 7,463,669 CURRENT LIABILITIES Accounts payable $ 49,737 Intercompany payable 9,227 Accrued expenses 240,412 Accrued interest 592 Deferred income 130,236 Current portion of long-term debt — Total Current Liabilities 430,204 Long-term debt — Other long-term liabilities 233,769 Liabilities subject to compromise 1 17,507,135 EQUITY (DEFICIT) Equity (Deficit) (10,707,439 ) Total Liabilities and Equity (Deficit) $ 7,463,669 1 In connection with the cash management arrangements with CCOH, the Company maintains an intercompany revolving promissory note payable by the Company to CCOH (the "Intercompany Note"), which matures on May 15, 2019. Liabilities subject to compromise include the principal amount outstanding under the Intercompany Note, which totals $1,031.7 million as of September 30, 2018 . Debtors' Statements of Operations (In thousands) Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 Revenue $ 909,984 $ 2,558,629 Operating expenses: Direct operating expenses (excludes depreciation and amortization) 267,117 768,868 Selling, general and administrative expenses (excludes depreciation and amortization) 322,410 986,654 Corporate expenses (excludes depreciation and amortization) 47,431 134,293 Depreciation and amortization 43,036 174,773 Impairment charges 33,151 33,151 Other operating expense, net (2,458 ) (6,908 ) Operating income 194,381 453,982 Interest expense, net 1 2,638 356,179 Equity in loss of nonconsolidated affiliates (31 ) (94 ) Gain on extinguishment of debt — 5,667 Dividend income 2 269 25,756 Other expense, net (410 ) (22,648 ) Reorganization items, net 52,475 313,270 Income (loss) before income taxes 139,096 (206,786 ) Income tax benefit (expense) (10,681 ) 10,465 Net income (loss) $ 128,415 $ (196,321 ) 1 Includes interest incurred during the three months ended September 30, 2018 in relation to the post-petition Intercompany Note and interest incurred during the nine months ended September 30, 2018 in relation to the pre-petition and post-petition Intercompany Notes. 2 Consists of cash dividends received from Non-Debtor entities during the three and nine months ended September 30, 2018 . Debtors' Statement of Cash Flows (In thousands) Nine Months Ended September 30, 2018 Cash flows from operating activities: Consolidated net loss $ (196,321 ) Reconciling items: Impairment charges 33,151 Depreciation and amortization 174,773 Deferred taxes (18,869 ) Provision for doubtful accounts 14,747 Amortization of deferred financing charges and note discounts, net 11,871 Non-cash Reorganization items, net 261,057 Share-based compensation 1,628 Loss on disposal of operating and other assets 2,738 Equity in loss of nonconsolidated affiliates 94 Gain on extinguishment of debt (5,667 ) Barter and trade income (6,228 ) Other reconciling items, net (320 ) Changes in operating assets and liabilities, net of effects of acquisitions and dispositions: Decrease in accounts receivable 20,906 Increase in prepaid expenses and other current assets (18,844 ) Decrease in accrued expenses (41,848 ) Increase in accounts payable 21,954 Increase in accrued interest 302,724 Increase in deferred income 11,323 Changes in other operating assets and liabilities (13,726 ) Net cash provided by operating activities 555,143 Cash flows from investing activities: Purchases of property, plant and equipment (47,309 ) Proceeds from disposal of assets 682 Purchases of other operating assets (305 ) Change in other, net (95 ) Net cash used for investing activities (47,027 ) Cash flows from financing activities: Draws on credit facilities 143,332 Payments on credit facilities (258,308 ) Payments on long-term debt (358,880 ) Net transfers to related parties (57,078 ) Change in other, net (74 ) Net cash used for financing activities (531,008 ) Effect of exchange rate changes on cash, cash equivalents and restricted cash — Net decrease in cash, cash equivalents and restricted cash (22,892 ) Cash, cash equivalents and restricted cash at beginning of period 102,468 Cash, cash equivalents and restricted cash at end of period $ 79,576 |
REORGANIZATION ITEMS, NET
REORGANIZATION ITEMS, NET | 9 Months Ended |
Sep. 30, 2018 | |
Reorganizations [Abstract] | |
REORGANIZATION ITEMS, NET | LIABILITIES SUBJECT TO COMPROMISE As discussed in Note 1, "Basis of Presentation", since the Petition Date, the Company has been operating as debtor in possession under the jurisdiction of the Bankruptcy Court and in accordance with provisions of the Bankruptcy Code. On the accompanying Consolidated Balance Sheets, the caption “Liabilities subject to compromise” reflects the expected allowed amount of the pre-petition claims that are not fully secured and that have at least a possibility of not being repaid at the full claim amount. Liabilities subject to compromise at September 30, 2018 consisted of the following: (In thousands) September 30, Accounts payable $ 44,132 Accrued expenses 27,509 Deferred taxes 622,415 Other long-term liabilities 89,730 Accounts payable, accrued and other liabilities 783,786 Debt subject to compromise 15,148,955 Accrued interest on debt subject to compromise 542,673 Long-term debt and accrued interest 15,691,628 Total liabilities subject to compromise $ 16,475,414 Determination of the value at which liabilities will ultimately be settled cannot be made until the Bankruptcy Court approves the Plan of Reorganization. The Company will continue to evaluate the amount and classification of its pre-petition liabilities. Any additional liabilities that are subject to compromise will be recognized accordingly, and the aggregate amount of liabilities subject to compromise may change. REORGANIZATION ITEMS, NET Reorganization items incurred as a result of the Chapter 11 Cases are presented separately in the accompanying statements of operations for the three and nine months ended September 30, 2018 and were as follows: (In thousands) Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 Write-off of deferred long-term debt fees $ — $ 67,079 Write-off of original issue discount on debt subject to compromise — 131,100 Debtor-in-possession refinancing costs — 10,546 Professional fees and other bankruptcy related costs 52,475 104,545 Reorganization items, net $ 52,475 $ 313,270 Professional fees included in Reorganization items, net represent fees for post-petition expenses related to the Chapter 11 Cases. Write-off of deferred long-term debt fees and write-off of original issue discount are included in Reorganization items, net. As of September 30, 2018 , $56.2 million of Reorganization items, net were unpaid and accrued in Accounts Payable and Accrued Expenses in the accompanying Consolidated Balance Sheet. Reorganization items, net of $6.7 million relating to the Debtor-in-possession financing costs were netted against the $125.0 million proceeds received from issuance of the DIP Facility. CONDENSED COMBINED DEBTOR-IN-POSSESSION FINANCIAL INFORMATION The financial statements below represent the condensed combined financial statements of the Debtors. The results of the Company’s Non-Filing Entities, which are comprised primarily of the Company's Americas outdoor and International outdoor segments, are not included in these condensed combined financial statements. Intercompany transactions among the Debtors have been eliminated in the financial statements contained herein. Intercompany transactions among the Debtors and the Non-Filing Entities have not been eliminated in the Debtors’ financial statements. Debtors' Balance Sheet (In thousands) September 30, 2018 (Unaudited) CURRENT ASSETS Cash and cash equivalents $ 76,154 Accounts receivable, net of allowance of $24,455 809,974 Prepaid expenses 115,308 Other current assets 25,651 Total Current Assets 1,027,087 PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment, net 462,609 INTANGIBLE ASSETS AND GOODWILL Indefinite-lived intangibles - licenses 2,409,326 Other intangibles, net 171,134 Goodwill 3,335,433 OTHER ASSETS Other assets 58,080 Total Assets $ 7,463,669 CURRENT LIABILITIES Accounts payable $ 49,737 Intercompany payable 9,227 Accrued expenses 240,412 Accrued interest 592 Deferred income 130,236 Current portion of long-term debt — Total Current Liabilities 430,204 Long-term debt — Other long-term liabilities 233,769 Liabilities subject to compromise 1 17,507,135 EQUITY (DEFICIT) Equity (Deficit) (10,707,439 ) Total Liabilities and Equity (Deficit) $ 7,463,669 1 In connection with the cash management arrangements with CCOH, the Company maintains an intercompany revolving promissory note payable by the Company to CCOH (the "Intercompany Note"), which matures on May 15, 2019. Liabilities subject to compromise include the principal amount outstanding under the Intercompany Note, which totals $1,031.7 million as of September 30, 2018 . Debtors' Statements of Operations (In thousands) Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 Revenue $ 909,984 $ 2,558,629 Operating expenses: Direct operating expenses (excludes depreciation and amortization) 267,117 768,868 Selling, general and administrative expenses (excludes depreciation and amortization) 322,410 986,654 Corporate expenses (excludes depreciation and amortization) 47,431 134,293 Depreciation and amortization 43,036 174,773 Impairment charges 33,151 33,151 Other operating expense, net (2,458 ) (6,908 ) Operating income 194,381 453,982 Interest expense, net 1 2,638 356,179 Equity in loss of nonconsolidated affiliates (31 ) (94 ) Gain on extinguishment of debt — 5,667 Dividend income 2 269 25,756 Other expense, net (410 ) (22,648 ) Reorganization items, net 52,475 313,270 Income (loss) before income taxes 139,096 (206,786 ) Income tax benefit (expense) (10,681 ) 10,465 Net income (loss) $ 128,415 $ (196,321 ) 1 Includes interest incurred during the three months ended September 30, 2018 in relation to the post-petition Intercompany Note and interest incurred during the nine months ended September 30, 2018 in relation to the pre-petition and post-petition Intercompany Notes. 2 Consists of cash dividends received from Non-Debtor entities during the three and nine months ended September 30, 2018 . Debtors' Statement of Cash Flows (In thousands) Nine Months Ended September 30, 2018 Cash flows from operating activities: Consolidated net loss $ (196,321 ) Reconciling items: Impairment charges 33,151 Depreciation and amortization 174,773 Deferred taxes (18,869 ) Provision for doubtful accounts 14,747 Amortization of deferred financing charges and note discounts, net 11,871 Non-cash Reorganization items, net 261,057 Share-based compensation 1,628 Loss on disposal of operating and other assets 2,738 Equity in loss of nonconsolidated affiliates 94 Gain on extinguishment of debt (5,667 ) Barter and trade income (6,228 ) Other reconciling items, net (320 ) Changes in operating assets and liabilities, net of effects of acquisitions and dispositions: Decrease in accounts receivable 20,906 Increase in prepaid expenses and other current assets (18,844 ) Decrease in accrued expenses (41,848 ) Increase in accounts payable 21,954 Increase in accrued interest 302,724 Increase in deferred income 11,323 Changes in other operating assets and liabilities (13,726 ) Net cash provided by operating activities 555,143 Cash flows from investing activities: Purchases of property, plant and equipment (47,309 ) Proceeds from disposal of assets 682 Purchases of other operating assets (305 ) Change in other, net (95 ) Net cash used for investing activities (47,027 ) Cash flows from financing activities: Draws on credit facilities 143,332 Payments on credit facilities (258,308 ) Payments on long-term debt (358,880 ) Net transfers to related parties (57,078 ) Change in other, net (74 ) Net cash used for financing activities (531,008 ) Effect of exchange rate changes on cash, cash equivalents and restricted cash — Net decrease in cash, cash equivalents and restricted cash (22,892 ) Cash, cash equivalents and restricted cash at beginning of period 102,468 Cash, cash equivalents and restricted cash at end of period $ 79,576 |
CONDENSED COMBINED DEBTOR-IN-PO
CONDENSED COMBINED DEBTOR-IN-POSSESSION FINANCIAL INFORMATION | 9 Months Ended |
Sep. 30, 2018 | |
Reorganizations [Abstract] | |
CONDENSED COMBINED DEBTOR-IN-POSSESSION FINANCIAL INFORMATION | LIABILITIES SUBJECT TO COMPROMISE As discussed in Note 1, "Basis of Presentation", since the Petition Date, the Company has been operating as debtor in possession under the jurisdiction of the Bankruptcy Court and in accordance with provisions of the Bankruptcy Code. On the accompanying Consolidated Balance Sheets, the caption “Liabilities subject to compromise” reflects the expected allowed amount of the pre-petition claims that are not fully secured and that have at least a possibility of not being repaid at the full claim amount. Liabilities subject to compromise at September 30, 2018 consisted of the following: (In thousands) September 30, Accounts payable $ 44,132 Accrued expenses 27,509 Deferred taxes 622,415 Other long-term liabilities 89,730 Accounts payable, accrued and other liabilities 783,786 Debt subject to compromise 15,148,955 Accrued interest on debt subject to compromise 542,673 Long-term debt and accrued interest 15,691,628 Total liabilities subject to compromise $ 16,475,414 Determination of the value at which liabilities will ultimately be settled cannot be made until the Bankruptcy Court approves the Plan of Reorganization. The Company will continue to evaluate the amount and classification of its pre-petition liabilities. Any additional liabilities that are subject to compromise will be recognized accordingly, and the aggregate amount of liabilities subject to compromise may change. REORGANIZATION ITEMS, NET Reorganization items incurred as a result of the Chapter 11 Cases are presented separately in the accompanying statements of operations for the three and nine months ended September 30, 2018 and were as follows: (In thousands) Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 Write-off of deferred long-term debt fees $ — $ 67,079 Write-off of original issue discount on debt subject to compromise — 131,100 Debtor-in-possession refinancing costs — 10,546 Professional fees and other bankruptcy related costs 52,475 104,545 Reorganization items, net $ 52,475 $ 313,270 Professional fees included in Reorganization items, net represent fees for post-petition expenses related to the Chapter 11 Cases. Write-off of deferred long-term debt fees and write-off of original issue discount are included in Reorganization items, net. As of September 30, 2018 , $56.2 million of Reorganization items, net were unpaid and accrued in Accounts Payable and Accrued Expenses in the accompanying Consolidated Balance Sheet. Reorganization items, net of $6.7 million relating to the Debtor-in-possession financing costs were netted against the $125.0 million proceeds received from issuance of the DIP Facility. CONDENSED COMBINED DEBTOR-IN-POSSESSION FINANCIAL INFORMATION The financial statements below represent the condensed combined financial statements of the Debtors. The results of the Company’s Non-Filing Entities, which are comprised primarily of the Company's Americas outdoor and International outdoor segments, are not included in these condensed combined financial statements. Intercompany transactions among the Debtors have been eliminated in the financial statements contained herein. Intercompany transactions among the Debtors and the Non-Filing Entities have not been eliminated in the Debtors’ financial statements. Debtors' Balance Sheet (In thousands) September 30, 2018 (Unaudited) CURRENT ASSETS Cash and cash equivalents $ 76,154 Accounts receivable, net of allowance of $24,455 809,974 Prepaid expenses 115,308 Other current assets 25,651 Total Current Assets 1,027,087 PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment, net 462,609 INTANGIBLE ASSETS AND GOODWILL Indefinite-lived intangibles - licenses 2,409,326 Other intangibles, net 171,134 Goodwill 3,335,433 OTHER ASSETS Other assets 58,080 Total Assets $ 7,463,669 CURRENT LIABILITIES Accounts payable $ 49,737 Intercompany payable 9,227 Accrued expenses 240,412 Accrued interest 592 Deferred income 130,236 Current portion of long-term debt — Total Current Liabilities 430,204 Long-term debt — Other long-term liabilities 233,769 Liabilities subject to compromise 1 17,507,135 EQUITY (DEFICIT) Equity (Deficit) (10,707,439 ) Total Liabilities and Equity (Deficit) $ 7,463,669 1 In connection with the cash management arrangements with CCOH, the Company maintains an intercompany revolving promissory note payable by the Company to CCOH (the "Intercompany Note"), which matures on May 15, 2019. Liabilities subject to compromise include the principal amount outstanding under the Intercompany Note, which totals $1,031.7 million as of September 30, 2018 . Debtors' Statements of Operations (In thousands) Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 Revenue $ 909,984 $ 2,558,629 Operating expenses: Direct operating expenses (excludes depreciation and amortization) 267,117 768,868 Selling, general and administrative expenses (excludes depreciation and amortization) 322,410 986,654 Corporate expenses (excludes depreciation and amortization) 47,431 134,293 Depreciation and amortization 43,036 174,773 Impairment charges 33,151 33,151 Other operating expense, net (2,458 ) (6,908 ) Operating income 194,381 453,982 Interest expense, net 1 2,638 356,179 Equity in loss of nonconsolidated affiliates (31 ) (94 ) Gain on extinguishment of debt — 5,667 Dividend income 2 269 25,756 Other expense, net (410 ) (22,648 ) Reorganization items, net 52,475 313,270 Income (loss) before income taxes 139,096 (206,786 ) Income tax benefit (expense) (10,681 ) 10,465 Net income (loss) $ 128,415 $ (196,321 ) 1 Includes interest incurred during the three months ended September 30, 2018 in relation to the post-petition Intercompany Note and interest incurred during the nine months ended September 30, 2018 in relation to the pre-petition and post-petition Intercompany Notes. 2 Consists of cash dividends received from Non-Debtor entities during the three and nine months ended September 30, 2018 . Debtors' Statement of Cash Flows (In thousands) Nine Months Ended September 30, 2018 Cash flows from operating activities: Consolidated net loss $ (196,321 ) Reconciling items: Impairment charges 33,151 Depreciation and amortization 174,773 Deferred taxes (18,869 ) Provision for doubtful accounts 14,747 Amortization of deferred financing charges and note discounts, net 11,871 Non-cash Reorganization items, net 261,057 Share-based compensation 1,628 Loss on disposal of operating and other assets 2,738 Equity in loss of nonconsolidated affiliates 94 Gain on extinguishment of debt (5,667 ) Barter and trade income (6,228 ) Other reconciling items, net (320 ) Changes in operating assets and liabilities, net of effects of acquisitions and dispositions: Decrease in accounts receivable 20,906 Increase in prepaid expenses and other current assets (18,844 ) Decrease in accrued expenses (41,848 ) Increase in accounts payable 21,954 Increase in accrued interest 302,724 Increase in deferred income 11,323 Changes in other operating assets and liabilities (13,726 ) Net cash provided by operating activities 555,143 Cash flows from investing activities: Purchases of property, plant and equipment (47,309 ) Proceeds from disposal of assets 682 Purchases of other operating assets (305 ) Change in other, net (95 ) Net cash used for investing activities (47,027 ) Cash flows from financing activities: Draws on credit facilities 143,332 Payments on credit facilities (258,308 ) Payments on long-term debt (358,880 ) Net transfers to related parties (57,078 ) Change in other, net (74 ) Net cash used for financing activities (531,008 ) Effect of exchange rate changes on cash, cash equivalents and restricted cash — Net decrease in cash, cash equivalents and restricted cash (22,892 ) Cash, cash equivalents and restricted cash at beginning of period 102,468 Cash, cash equivalents and restricted cash at end of period $ 79,576 |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | The accompanying consolidated financial statements were prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and, in the opinion of management, include all normal and recurring adjustments necessary to present fairly the results of the interim periods shown. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) have been condensed or omitted pursuant to such SEC rules and regulations. Management believes that the disclosures made are adequate to make the information presented not misleading. Due to seasonality and other factors, the results for the interim periods may not be indicative of results for the full year. The financial statements contained herein should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s 2017 Annual Report on Form 10-K. Th e consolidated financial statements include the accounts of the Company and its subsidiaries. Also included in the consolidated financial statements are entities for which the Company has a controlling financial interest or is the primary beneficiary. Investments in companies in which the Company owns 20% to 50% of the voting common stock or otherwise exercises significant influence over operating and financial policies of the company are accounted for under the equity method. All significant intercompany transactions are eliminated in the consolidation process. |
New Accounting Pronouncements Recently Adopted and Not Yet Adopted | New Accounting Pronouncements Recently Adopted Revenue from Contracts with Customers As of January 1, 2018, the Company adopted the new accounting standard, ASC 606, Revenue from Contracts with Customers . This standard provides guidance for the recognition, measurement and disclosure of revenue from contracts with customers and supersedes previous revenue recognition guidance under U.S. GAAP. The Company has applied this standard using the full retrospective method and concluded that its adoption did not have a material impact on the Company’s Consolidated Balance Sheets, Consolidated Statements of Comprehensive Income (Loss), or Consolidated Statements of Cash Flows for prior periods. Please refer to Note 2, Revenues , for more information. New Accounting Pronouncements Not Yet Adopted During the first quarter of 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) . The new leasing standard presents significant changes to the balance sheets of lessees. The most significant change to the standard includes the recognition of right-of-use assets and lease liabilities by lessees for those leases classified as operating leases. Lessor accounting also is updated to align with certain changes in the lessee model and the new revenue recognition standard which was adopted this year. The standard is effective for annual periods, and for interim periods within those annual periods, beginning after December 15, 2018. The standard is expected to have a material impact on our consolidated balance sheet, but is not expected to materially impact our consolidated statement of comprehensive income (loss) or cash flows. The Company is continuing to evaluate the impact of the provisions of this new standard on its consolidated financial statements. In July 2018, The FASB issued ASU No. 2018-11, Leases (Topic 842) - Targeted Improvements. The update provides an additional (optional) transition method to adopt the new lease standard, allowing entities to apply the new lease standard at the adoption date. The Company plans to adopt Topic 842 following this optional transition method. The update also provides lessors a practical expedient to allow them to not separate non-lease components from the associated lease component and instead to account for those components as a single component if certain criteria are met. The updated practical expedient for lessors will not have a material effect to the Company’s consolidated financial statements. During the first quarter of 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350) . This update eliminates the requirement to calculate the implied fair value of goodwill to measure a goodwill impairment charge. Entities will record an impairment charge based on the excess of a reporting unit's carrying amount over its fair value. The standard is effective for annual and any interim impairment tests performed for periods beginning after December 15, 2019. The Company is currently evaluating the impact of the provisions of this new standard on its consolidated financial statements. During the third quarter of 2018, the FASB issued ASU 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40), Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract . This update requires that a customer in a cloud computing arrangement that is a service contract follow the internal use software guidance in Accounting Standards Codification (ASC) 350-402 to determine which implementation costs to capitalize as assets. The standard is effective for fiscal years beginning after December 15, 2019. The Company is currently evaluating the impact of the provisions of this new standard on its consolidated financial statements. |
Accounts Receivable | Accounts Receivable Accounts receivable are recorded when the Company has an unconditional right to payment, either because it has satisfied a performance obligation prior to receiving payment from the customer or has a non-cancelable contract that has been billed in advance in accordance with the Company’s normal billing terms. Accounts receivable are recorded at the invoiced amount, net of reserves for sales allowances and allowances for doubtful accounts. The Company evaluates the collectability of its accounts receivable based on a combination of factors. In circumstances where it is aware of a specific customer’s inability to meet its financial obligations, it records a specific reserve to reduce the amounts recorded to what it believes will be collected. For all other customers, it recognizes reserves for bad debt based on historical experience of bad debts as a percent of accounts receivable for each business unit, adjusted for relative improvements or deteriorations in the agings and changes in current economic conditions. The Company believes its concentration of credit risk is limited due to the large number and the geographic diversification of its customers. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue when or as it satisfies a performance obligation by transferring a promised good or service to a customer. Where third-parties are involved in the provision of goods and services to a customer, revenue is recognized at the gross amount of consideration the Company expects to receive if the Company controls the promised good or service before it is transferred to the customer; otherwise, revenue is recognized at the net amount the Company retains. The Company receives payments from customers based on billing schedules that are established in its contracts, and deferred income is recorded when payment is received from a customer before the Company has satisfied the performance obligation or a non-cancelable contract has been billed in advance in accordance with the Company’s normal billing terms. The primary source of revenue in the iHM segment is the sale of advertising on the Company’s broadcast radio stations, its iHeartRadio mobile application and website, station websites, and national and local live events. Revenues for advertising spots are recognized at the point in time when the advertisement is broadcast or streamed, while revenues for online display advertisements are recognized over time based on impressions delivered or time elapsed, depending upon the terms of the contract. Revenues for event sponsorships are recognized over the period of the event. iHM also generates revenues from programming talent, network syndication, traffic and weather data, and other miscellaneous transactions, which are recognized when the services are transferred to the customer. iHM’s contracts with advertisers are typically a year or less in duration and are generally billed monthly upon satisfaction of the performance obligations. The Americas outdoor and International outdoor segments generate revenue primarily from the sale of advertising space on printed and digital displays, including billboards, street furniture displays, transit displays and retail displays, which may be sold as individual units or as a network package. Revenues from these contracts, which typically cover periods of a few weeks to one year, are generally recognized ratably over the term of the contract as the advertisement is displayed. These segments also generate revenue from production and creative services, which are distinct from the advertising display services, and related revenue is recognized at the point in time the Company installs the advertising copy at the display site. Americas outdoor contracts are generally billed monthly in advance, and International outdoor includes a combination of advance billings and billings upon completion of service. The Company also generates revenue through contractual commissions realized from the sale of national spot and online advertising on behalf of clients of its full-service media representation business, Katz Media, which is reported in the Company’s Other segment. Revenues from these contracts are recognized at the point in time when the advertisements are broadcast. Because the Company is a representative of its media clients and does not control the advertising inventory before it is transferred to the advertiser, the Company recognizes revenue at the net amount of contractual commissions retained for its representation services. The Company’s media representation contracts typically have terms up to ten years in duration and are generally billed monthly upon satisfaction of the performance obligations. The Company recognizes revenue in amounts that reflect the consideration it expects to receive in exchange for transferring goods or services to customers, excluding sales taxes and other similar taxes collected on behalf of governmental authorities (the "transaction price”). When this consideration includes a variable amount, the Company estimates the amount of consideration it expects to receive and only recognizes revenue to the extent that it is probable it will not be reversed in a future reporting period. Because the transfer of promised goods and services to the customer is generally within a year of scheduled payment from the customer, the Company is not typically required to consider the effects of the time value of money when determining the transaction price. Advertising revenue is reported net of agency commissions. Trade and barter transactions represent the exchange of advertising spots or display space for merchandise, services or other assets in the ordinary course of business. The transaction price for these contracts is measured at the estimated fair value of the non-cash consideration received unless this is not reasonably estimable, in which case the consideration is measured based on the standalone selling price of the advertising spots or display space promised to the customer. Revenue is recognized on trade and barter transactions when the advertisements are broadcasted or displayed, and expenses are recorded ratably over a period that estimates when the merchandise, services or other assets received are utilized, or when the event occurs. Trade and barter revenues and expenses from continuing operations are included in consolidated revenue and selling, general and administrative expenses, respectively. |
BASIS OF PRESENTATION (Tables)
BASIS OF PRESENTATION (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Schedule of Error Corrections and Prior Period Adjustments | A summary of the effect of the corrections on the Consolidated Balance Sheet as of December 31, 2017 is as follows: December 31, 2017 (In thousands) As Reported Correction Revised Other assets $ 278,267 $ (3,335 ) $ 274,932 Total Assets 12,260,431 (3,335 ) 12,257,096 Other long-term liabilities 597,085 13,554 610,639 Noncontrolling interest 42,764 (1,573 ) 41,191 Accumulated deficit (13,127,843 ) (14,158 ) (13,142,001 ) Accumulated other comprehensive loss (312,560 ) (1,158 ) (313,718 ) Total Stockholders' Deficit (11,327,455 ) (16,889 ) (11,344,344 ) Total Liabilities and Stockholders' Deficit 12,260,431 (3,335 ) 12,257,096 A summary of the effect of the corrections on the Consolidated Statement of Comprehensive Income (Loss) for the three and nine months ended September 30, 2017 is as follows: Three Months Ended September 30, 2017 (In thousands) As Reported Correction Revised Revenue $ 1,537,416 $ (659 ) $ 1,536,757 Direct operating expenses (excludes depreciation and amortization) 621,895 1,846 623,741 Selling, general and administrative expenses (excludes depreciation and amortization) 438,654 142 438,796 Operating income 228,305 (2,647 ) 225,658 Loss before income taxes (244,133 ) (2,647 ) (246,780 ) Consolidated net loss (246,184 ) (2,647 ) (248,831 ) Less amount attributable to noncontrolling interest 1,993 (334 ) 1,659 Net loss attributable to the Company (248,177 ) (2,313 ) (250,490 ) Foreign currency translation adjustments 13,010 (602 ) 12,408 Other comprehensive income 18,897 (602 ) 18,295 Comprehensive loss (229,280 ) (2,915 ) (232,195 ) Less amount attributable to noncontrolling interest 4,289 (128 ) 4,161 Comprehensive loss attributable to the Company (233,569 ) (2,787 ) (236,356 ) Basic loss per share (2.92 ) (0.02 ) (2.94 ) Diluted loss per share (2.92 ) (0.02 ) (2.94 ) Nine Months Ended September 30, 2017 (In thousands) As Reported Correction Revised Revenue $ 4,457,106 $ (1,836 ) $ 4,455,270 Direct operating expenses (excludes depreciation and amortization) 1,807,534 4,971 1,812,505 Selling, general and administrative expenses (excludes depreciation and amortization) 1,336,563 528 1,337,091 Operating income 653,026 (7,335 ) 645,691 Interest expense 1,388,747 72 1,388,819 Loss before income taxes (751,638 ) (7,407 ) (759,045 ) Consolidated net loss (801,781 ) (7,407 ) (809,188 ) Less amount attributable to noncontrolling interest 8,648 (1,034 ) 7,614 Net loss attributable to the Company (810,429 ) (6,373 ) (816,802 ) Foreign currency translation adjustments 44,665 (1,594 ) 43,071 Other comprehensive income 49,010 (1,594 ) 47,416 Comprehensive loss (761,419 ) (7,967 ) (769,386 ) Less amount attributable to noncontrolling interest 10,342 (282 ) 10,060 Comprehensive loss attributable to the Company (771,761 ) (7,685 ) (779,446 ) Basic loss per share (9.55 ) (0.07 ) (9.62 ) Diluted loss per share (9.55 ) (0.07 ) (9.62 ) |
Barter And Trade Revenues And Expenses Table | Trade and barter revenues and expenses from continuing operations were as follows: Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2018 2017 2018 2017 Consolidated: Trade and barter revenues $ 55,475 $ 49,886 $ 153,185 $ 162,330 Trade and barter expenses 42,985 34,672 145,656 126,502 iHM Segment: Trade and barter revenues $ 51,831 $ 45,884 $ 141,769 $ 149,164 Trade and barter expenses 40,607 31,859 136,827 118,215 |
Schedule of Restricted Cash and Cash Equivalents | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported in the Consolidated Balance Sheets to the total of the amounts reported in the Consolidated Statements of Cash Flows: (In thousands) September 30, December 31, 2017 Cash and cash equivalents $ 311,162 $ 267,109 Restricted cash included in: Other current assets 7,653 26,096 Other assets 19,282 18,095 Total cash, cash equivalents and restricted cash in the Statement of Cash Flows $ 338,097 $ 311,300 |
Debtors Financial Statements | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported in the Debtors' Balance Sheet to the total of the amounts reported in the Debtors' Statement of Cash Flows: (In thousands) September 30, Cash and cash equivalents $ 76,154 Restricted cash included in: Other current assets 3,422 Total cash, cash equivalents and restricted cash in the Statement of Cash Flows $ 79,576 Debtors' Balance Sheet (In thousands) September 30, 2018 (Unaudited) CURRENT ASSETS Cash and cash equivalents $ 76,154 Accounts receivable, net of allowance of $24,455 809,974 Prepaid expenses 115,308 Other current assets 25,651 Total Current Assets 1,027,087 PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment, net 462,609 INTANGIBLE ASSETS AND GOODWILL Indefinite-lived intangibles - licenses 2,409,326 Other intangibles, net 171,134 Goodwill 3,335,433 OTHER ASSETS Other assets 58,080 Total Assets $ 7,463,669 CURRENT LIABILITIES Accounts payable $ 49,737 Intercompany payable 9,227 Accrued expenses 240,412 Accrued interest 592 Deferred income 130,236 Current portion of long-term debt — Total Current Liabilities 430,204 Long-term debt — Other long-term liabilities 233,769 Liabilities subject to compromise 1 17,507,135 EQUITY (DEFICIT) Equity (Deficit) (10,707,439 ) Total Liabilities and Equity (Deficit) $ 7,463,669 1 In connection with the cash management arrangements with CCOH, the Company maintains an intercompany revolving promissory note payable by the Company to CCOH (the "Intercompany Note"), which matures on May 15, 2019. Liabilities subject to compromise include the principal amount outstanding under the Intercompany Note, which totals $1,031.7 million as of September 30, 2018 . Debtors' Statements of Operations (In thousands) Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 Revenue $ 909,984 $ 2,558,629 Operating expenses: Direct operating expenses (excludes depreciation and amortization) 267,117 768,868 Selling, general and administrative expenses (excludes depreciation and amortization) 322,410 986,654 Corporate expenses (excludes depreciation and amortization) 47,431 134,293 Depreciation and amortization 43,036 174,773 Impairment charges 33,151 33,151 Other operating expense, net (2,458 ) (6,908 ) Operating income 194,381 453,982 Interest expense, net 1 2,638 356,179 Equity in loss of nonconsolidated affiliates (31 ) (94 ) Gain on extinguishment of debt — 5,667 Dividend income 2 269 25,756 Other expense, net (410 ) (22,648 ) Reorganization items, net 52,475 313,270 Income (loss) before income taxes 139,096 (206,786 ) Income tax benefit (expense) (10,681 ) 10,465 Net income (loss) $ 128,415 $ (196,321 ) 1 Includes interest incurred during the three months ended September 30, 2018 in relation to the post-petition Intercompany Note and interest incurred during the nine months ended September 30, 2018 in relation to the pre-petition and post-petition Intercompany Notes. 2 Consists of cash dividends received from Non-Debtor entities during the three and nine months ended September 30, 2018 . Debtors' Statement of Cash Flows (In thousands) Nine Months Ended September 30, 2018 Cash flows from operating activities: Consolidated net loss $ (196,321 ) Reconciling items: Impairment charges 33,151 Depreciation and amortization 174,773 Deferred taxes (18,869 ) Provision for doubtful accounts 14,747 Amortization of deferred financing charges and note discounts, net 11,871 Non-cash Reorganization items, net 261,057 Share-based compensation 1,628 Loss on disposal of operating and other assets 2,738 Equity in loss of nonconsolidated affiliates 94 Gain on extinguishment of debt (5,667 ) Barter and trade income (6,228 ) Other reconciling items, net (320 ) Changes in operating assets and liabilities, net of effects of acquisitions and dispositions: Decrease in accounts receivable 20,906 Increase in prepaid expenses and other current assets (18,844 ) Decrease in accrued expenses (41,848 ) Increase in accounts payable 21,954 Increase in accrued interest 302,724 Increase in deferred income 11,323 Changes in other operating assets and liabilities (13,726 ) Net cash provided by operating activities 555,143 Cash flows from investing activities: Purchases of property, plant and equipment (47,309 ) Proceeds from disposal of assets 682 Purchases of other operating assets (305 ) Change in other, net (95 ) Net cash used for investing activities (47,027 ) Cash flows from financing activities: Draws on credit facilities 143,332 Payments on credit facilities (258,308 ) Payments on long-term debt (358,880 ) Net transfers to related parties (57,078 ) Change in other, net (74 ) Net cash used for financing activities (531,008 ) Effect of exchange rate changes on cash, cash equivalents and restricted cash — Net decrease in cash, cash equivalents and restricted cash (22,892 ) Cash, cash equivalents and restricted cash at beginning of period 102,468 Cash, cash equivalents and restricted cash at end of period $ 79,576 |
REVENUES (Tables)
REVENUES (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue From Segments By Geographic Region | The following table shows, by segment, revenue from contracts with customers disaggregated by geographical region, revenue from leases and total revenue for the three and nine months ended September 30, 2018 and 2017 : (In thousands) iHM Americas Outdoor (1) International Outdoor (1) Other Eliminations Consolidated Three Months Ended September 30, 2018 Revenue from contracts with customers: United States $ 869,126 $ 116,503 $ — $ 47,088 $ (168 ) $ 1,032,549 Other Americas 582 671 11,242 — — 12,495 Europe 2,415 — 191,514 — — 193,929 Asia-Pacific and other 4,059 — 5,563 — — 9,622 Eliminations (3,415 ) — — — — (3,415 ) Total 872,767 117,174 208,319 47,088 (168 ) 1,245,180 Revenue from leases 637 186,247 151,999 — (1,298 ) 337,585 Revenue, total $ 873,404 $ 303,421 $ 360,318 $ 47,088 $ (1,466 ) $ 1,582,765 Three Months Ended September 30, 2017 Revenue from contracts with customers: United States $ 854,890 $ 106,806 $ — $ 34,452 $ (341 ) $ 995,807 Other Americas 704 2,488 14,224 — — 17,416 Europe 2,420 — 181,229 — — 183,649 Asia-Pacific and other 4,453 162 4,635 — — 9,250 Eliminations (3,798 ) — — — — (3,798 ) Total 858,669 109,456 200,088 34,452 (341 ) 1,202,324 Revenue from leases 862 184,351 150,535 — (1,315 ) 334,433 Revenue, total $ 859,531 $ 293,807 $ 350,623 $ 34,452 $ (1,656 ) $ 1,536,757 Nine Months Ended September 30, 2018 Revenue from contracts with customers: United States $ 2,457,506 $ 328,138 $ — $ 113,803 $ (1,606 ) $ 2,897,841 Other Americas 2,025 1,955 36,723 — — 40,703 Europe 7,477 — 605,032 — — 612,509 Asia-Pacific and other 12,640 — 17,685 — — 30,325 Eliminations (10,568 ) — — — — (10,568 ) Total 2,469,080 330,093 659,440 113,803 (1,606 ) 3,570,810 Revenue from leases 2,159 529,097 455,487 — (4,298 ) 982,445 Revenue, total $ 2,471,239 $ 859,190 $ 1,114,927 $ 113,803 $ (5,904 ) $ 4,553,255 Nine Months Ended September 30, 2017 Revenue from contracts with customers: United States $ 2,487,144 $ 308,988 $ — $ 99,332 $ (1,778 ) $ 2,893,686 Other Americas 2,107 10,279 37,418 — — 49,804 Europe 6,825 — 533,111 — — 539,936 Asia-Pacific and other 12,782 568 14,853 — — 28,203 Eliminations (11,120 ) — — — — (11,120 ) Total 2,497,738 319,835 585,382 99,332 (1,778 ) 3,500,509 Revenue from leases 3,346 534,509 420,572 — (3,666 ) 954,761 Revenue, total $ 2,501,084 $ 854,344 $ 1,005,954 $ 99,332 $ (5,444 ) $ 4,455,270 (1) Due to a re-evaluation of the Company’s segment reporting in 2018 , its operations in Latin America are included in the International outdoor segment results for all periods presented. See Note 1, Basis of Presentation . |
Summary of Contract with Customer, Asset and Liability | The following tables show the changes in the Company’s contract balances from contracts with customers for the three and nine months ended September 30, 2018 and 2017 : Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2018 2017 2018 2017 Accounts receivable from contracts with customers: Beginning balance, net of allowance $ 1,104,255 $ 1,106,289 $ 1,196,101 $ 1,067,980 Additions (collections), net 19,628 6,487 (58,027 ) 55,186 Bad debt, net of recoveries (2,720 ) (6,189 ) (16,911 ) (16,579 ) Ending balance, net of allowance 1,121,163 1,106,587 1,121,163 1,106,587 Accounts receivable from leases, net of allowance 345,761 326,432 345,761 326,432 Total accounts receivable, net of allowance $ 1,466,924 $ 1,433,019 $ 1,466,924 $ 1,433,019 Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2018 2017 2018 2017 Deferred revenue from contracts with customers: Beginning balance $ 204,013 $ 206,807 $ 181,748 $ 191,916 Revenue recognized, included in beginning balance (106,893 ) (97,775 ) (131,449 ) (141,045 ) Additions, net of revenue recognized during period 96,173 88,297 142,994 146,458 Ending balance 193,293 197,329 193,293 197,329 Deferred revenue from leases 50,930 54,639 50,930 54,639 Total deferred revenue 244,223 251,968 244,223 251,968 Less: Non-current portion, included in other long-term liabilities 30,484 41,473 30,484 41,473 Current portion of deferred revenue, included in deferred income $ 213,739 $ 210,495 $ 213,739 $ 210,495 |
Schedule of Future Minimum Rental Income for Operating Leases | As of December 31, 2017 , the Company’s future minimum rentals under non-cancelable operating leases were as follows: (In thousands) 2018 $ 280,909 2019 37,024 2020 19,103 2021 13,683 2022 9,628 Thereafter 18,836 Total minimum future rentals $ 379,183 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT, INTANGIBLE ASSETS AND GOODWILL (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | The Company’s property, plant and equipment consisted of the following classes of assets as of September 30, 2018 and December 31, 2017 , respectively: (In thousands) September 30, December 31, Land, buildings and improvements $ 568,499 $ 562,702 Structures 2,808,059 2,864,442 Towers, transmitters and studio equipment 362,158 356,664 Furniture and other equipment 750,459 707,163 Construction in progress 87,337 74,810 4,576,512 4,565,781 Less: accumulated depreciation 2,857,421 2,681,067 Property, plant and equipment, net $ 1,719,091 $ 1,884,714 |
Schedule of Gross Carrying Amount and Accumulated Amortization for Other Intangible Assets | The following table presents the gross carrying amount and accumulated amortization for each major class of other intangible assets as of September 30, 2018 and December 31, 2017 , respectively: (In thousands) September 30, 2018 December 31, 2017 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Transit, street furniture and other outdoor $ 533,274 $ (440,452 ) $ 548,918 $ (440,284 ) Customer / advertiser relationships 1,226,329 (1,205,662 ) 1,226,314 (1,133,251 ) Talent contracts 161,962 (146,978 ) 161,962 (138,728 ) Representation contracts 77,507 (68,976 ) 77,507 (62,753 ) Permanent easements 162,920 — 162,920 — Other 373,675 (241,102 ) 372,292 (224,841 ) Total $ 2,535,667 $ (2,103,170 ) $ 2,549,913 $ (1,999,857 ) |
Schedule of Future Amortization Expense | The following table presents the Company’s estimate of amortization expense for each of the five succeeding fiscal years for definite-lived intangible assets: (In thousands) 2019 $ 45,875 2020 $ 39,144 2021 $ 34,303 2022 $ 29,153 2023 $ 21,377 |
Schedule of Changes In Carrying Amount Of Goodwill | The following table presents the changes in the carrying amount of goodwill in each of the Company’s reportable segments: (In thousands) iHM Americas Outdoor International Outdoor Other Consolidated Balance as of December 31, 2016 $ 3,288,481 $ 505,478 $ 190,785 $ 81,831 $ 4,066,575 Impairment — — (1,591 ) — (1,591 ) Acquisitions 2,442 2,252 — — 4,694 Dispositions (35,715 ) — (1,817 ) — (37,532 ) Foreign currency — — 18,847 — 18,847 Assets held for sale — 89 — — 89 Balance as of December 31, 2017 $ 3,255,208 $ 507,819 $ 206,224 $ 81,831 $ 4,051,082 Dispositions (1,606 ) — — — (1,606 ) Foreign currency — — (5,535 ) — (5,535 ) Balance as of September 30, 2018 $ 3,253,602 $ 507,819 $ 200,689 $ 81,831 $ 4,043,941 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt Outstanding | Long-term debt outstanding as of September 30, 2018 and December 31, 2017 consisted of the following: (In thousands) September 30, December 31, Senior Secured Credit Facilities $ — $ 6,300,000 Receivables Based Credit Facility due 2020 (1) — 405,000 Debtors-in-Possession Facility (1) — — 9.0% Priority Guarantee Notes Due 2019 — 1,999,815 9.0% Priority Guarantee Notes Due 2021 — 1,750,000 11.25% Priority Guarantee Notes Due 2021 — 870,546 9.0% Priority Guarantee Notes Due 2022 — 1,000,000 10.625% Priority Guarantee Notes Due 2023 — 950,000 CCO Receivables Based Credit Facility Due 2023 (2) — — Other secured subsidiary debt (3) 4,034 8,522 Total consolidated secured debt 4,034 13,283,883 14.0% Senior Notes Due 2021 — 1,763,925 Legacy Notes (4) — 475,000 10.0% Senior Notes Due 2018 (5) — 47,482 CCWH Senior Notes due 2022 2,725,000 2,725,000 CCWH Senior Subordinated Notes due 2020 2,200,000 2,200,000 Clear Channel International B.V. Senior Notes due 2020 375,000 375,000 Other subsidiary debt 26 24,615 Purchase accounting adjustments and original issue discount (6) (611 ) (136,653 ) Long-term debt fees (6) (28,612 ) (109,071 ) Long-term debt, net subject to compromise (7) 15,148,955 — Total debt, prior to reclassification to Liabilities subject to compromise 20,423,792 20,649,181 Less: current portion 347 14,972,367 Less: Amounts reclassified to Liabilities subject to compromise 15,148,955 — Total long-term debt $ 5,274,490 $ 5,676,814 (1) On June 14, 2018 (the “DIP Closing Date”), iHeartCommunications refinanced its receivables based credit facility with a new $450.0 million debtors-in-possession credit facility (the "DIP Facility"), which matures on the earlier of the emergence date from the Chapter 11 Cases or June 14, 2019. The DIP Facility also includes a feature to convert into an exit facility at emergence, upon meeting certain conditions. The DIP Facility accrues interest at LIBOR plus 2.25% . At closing, iHeartCommunications drew $125.0 million on the DIP Facility. On June 14, 2018, the Company used proceeds from the DIP Facility and cash on hand to repay the outstanding $306.4 million and $74.3 million term loan and revolving credit commitments, respectively, of the iHeartCommunications receivables based credit facility. Long-term debt fees incurred in relation to the DIP Facility were expensed as incurred and are reflected within Reorganization items, net in the Company's Consolidated Statement of Comprehensive Income (Loss). On August 16, 2018 and September 17, 2018, the Company repaid $100.0 million and $25.0 million , respectively, of the amount drawn under the DIP Facility. As of September 30, 2018 , the Company had a borrowing limit of $450.0 million under iHeartCommunications' DIP Facility, had no outstanding borrowings, had $65.3 million of outstanding letters of credit and had an availability block requirement of $37.5 million , resulting in $347.2 million of excess availability. (2) On June 1, 2018, a subsidiary of the Company's Outdoor advertising subsidiary, Clear Channel Outdoor, Inc. ("CCO"), refinanced CCOH's senior revolving credit facility and replaced it with an asset based credit facility that provided for revolving credit commitments of up to $75.0 million . On June 29, 2018, CCO entered into an amendment providing for a $50.0 million incremental increase of the facility, bringing the aggregate revolving credit commitments to $125.0 million . The facility has a five -year term, maturing in 2023. As of September 30, 2018 , the facility had $86.4 million of letters of credit outstanding and a borrowing base of $113.0 million , resulting in $26.6 million of excess availability. (3) Other secured subsidiary debt matures at various dates from 2018 through 2045. (4) iHeartCommunications' Legacy Notes, all of which were issued prior to the acquisition of iHeartCommunications by the Company in 2008, consist of $175.0 million of Senior Notes that matured on June 15, 2018, $300.0 million of Senior Notes that mature in 2027 and $57.1 million of Senior Notes due 2016 held by a subsidiary of the Company that remain outstanding but are eliminated for purposes of consolidation of the Company’s financial statements. (5) On January 4, 2018, a subsidiary of iHeartCommunications repurchased $5.4 million aggregate principal amount of 10.0% Senior Notes due 2018 that were held by unaffiliated third parties for $5.3 million in cash. On January 16, 2018, iHeartCommunications repaid the remaining balance of $42.1 million aggregate principal amount of 10.0% Senior Notes due 2018 at maturity. (6) As a result of the Company's Chapter 11 Cases, the Company expensed $67.1 million of deferred long-term debt fees and $131.1 million of original issue discount to Reorganization items, net, in the Consolidated Statement of Comprehensive Income (Loss) for the nine months ended September 30, 2018 . (7) In connection with the Company's Chapter 11 Cases, the $6.3 billion outstanding under the Senior Secured Credit Facilities, the $1,999.8 million outstanding under the 9.0% Priority Guarantee Notes due 2019, the $1,750.0 million outstanding under the 9.0% Priority Guarantee Notes due 2021, the $870.5 million of 11.25% Priority Guarantee Notes due 2021, the $1,000.0 million outstanding under the 9.0% Priority Guarantee Notes due 2022, the $950.0 million outstanding under the 10.625% Priority Guarantee Notes due 2023, $6.1 million outstanding Other Secured Subsidiary debt, the $1,781.6 million outstanding under the 14.0% Senior Notes due 2021, the $475.0 million outstanding under the Legacy Notes and $16.0 million outstanding Other Subsidiary Debt have been reclassified to Liabilities subject to compromise in the Company's Consolidated Balance Sheet as of September 30, 2018 . As of the Petition Date, the Company ceased making principal and interest payments, and ceased accruing interest expense in relation to long-term debt reclassified as Liabilities subject to compromise. |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense | The Company’s income tax expense for the three and nine months ended September 30, 2018 and 2017 , respectively, consisted of the following components: (In thousands) Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 Current tax benefit (expense) $ (14,979 ) $ 7,522 $ (25,168 ) $ (36,852 ) Deferred tax expense (2,790 ) (9,573 ) (22,020 ) (13,291 ) Income tax expense $ (17,769 ) $ (2,051 ) $ (47,188 ) $ (50,143 ) |
STOCKHOLDERS' DEFICIT (Tables)
STOCKHOLDERS' DEFICIT (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Schedule of Changes in Stockholders' Deficit | The following table shows the changes in stockholders' deficit attributable to the Company and the noncontrolling interests of subsidiaries in which the Company has a majority, but not total, ownership interest: (In thousands) The Company Noncontrolling Interests Consolidated Balance as of January 1, 2018 $ (11,385,535 ) $ 41,191 $ (11,344,344 ) Net loss (416,815 ) (10,732 ) (427,547 ) Dividends declared and other payments to noncontrolling interests — (10,381 ) (10,381 ) Share-based compensation 1,628 6,757 8,385 Foreign currency translation adjustments (11,062 ) (8,980 ) (20,042 ) Reclassification adjustments 1,274 151 1,425 Other, net (78 ) (653 ) (731 ) Balances as of September 30, 2018 $ (11,810,588 ) $ 17,353 $ (11,793,235 ) (In thousands) The Company Noncontrolling Interests Consolidated Balance as of January 1, 2017 $ (11,030,835 ) $ 128,974 $ (10,901,861 ) Net income (loss) (816,802 ) 7,614 (809,188 ) Dividends declared and other payments to noncontrolling interests — (43,540 ) (43,540 ) Share-based compensation 1,867 7,153 9,020 Purchase of additional noncontrolling interests (378 ) (575 ) (953 ) Disposal of noncontrolling interest — (2,438 ) (2,438 ) Foreign currency translation adjustments 33,473 9,598 43,071 Unrealized holding loss on marketable securities (195 ) (23 ) (218 ) Reclassification adjustments 4,078 485 4,563 Other, net (323 ) (1,235 ) (1,558 ) Balances as of September 30, 2017 $ (11,809,115 ) $ 106,013 $ (11,703,102 ) |
Computation of Loss Per Share | COMPUTATION OF LOSS PER SHARE (In thousands, except per share data) Three Months Ended Nine Months Ended 2018 2017 2018 2017 NUMERATOR: Net income (loss) attributable to the Company – common shares $ 70,078 $ (250,490 ) $ (416,815 ) $ (816,802 ) DENOMINATOR: Weighted average common shares outstanding - basic 85,544 85,072 85,348 84,900 Weighted average common shares outstanding - diluted (1) 85,622 85,072 85,348 84,900 Net income (loss) attributable to the Company per common share: Basic $ 0.82 $ (2.94 ) $ (4.88 ) $ (9.62 ) Diluted $ 0.82 $ (2.94 ) $ (4.88 ) $ (9.62 ) (1) Outstanding equity awards of 6.6 million and 8.5 million for the three months ended September 30, 2018 and 2017 , respectively, and 7.6 million and 8.5 million for the nine months ended September 30, 2018 and 2017 , respectively, were not included in the computation of diluted earnings per share because to do so would have been antidilutive. |
SEGMENT DATA (Tables)
SEGMENT DATA (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Reportable Segment Results | The following table presents the Company's reportable segment results for the three and nine months ended September 30, 2018 and 2017 : (In thousands) iHM Americas Outdoor International Outdoor Other Corporate and other reconciling items Eliminations Consolidated Three Months Ended September 30, 2018 Revenue $ 873,404 $ 303,421 $ 360,318 $ 47,088 $ — $ (1,466 ) $ 1,582,765 Direct operating expenses 268,606 131,241 230,440 — — (23 ) 630,264 Selling, general and administrative expenses 303,451 49,247 79,550 25,985 — (476 ) 457,757 Corporate expenses — — — — 85,160 (967 ) 84,193 Depreciation and amortization 34,882 39,783 36,627 3,222 6,186 — 120,700 Impairment charges — — — — 40,922 — 40,922 Other operating expense, net — — — — (1,637 ) — (1,637 ) Operating income (loss) $ 266,465 $ 83,150 $ 13,701 $ 17,881 $ (133,905 ) $ — $ 247,292 Intersegment revenues $ 23 $ 1,443 $ — $ — $ — $ — $ 1,466 Capital expenditures $ 17,750 $ 25,826 $ 21,921 $ 896 $ 2,555 $ — $ 68,948 Share-based compensation expense $ — $ — $ — $ — $ 3,588 $ — $ 3,588 Three Months Ended September 30, 2017 Revenue $ 859,531 $ 293,807 $ 350,623 $ 34,452 $ — $ (1,656 ) $ 1,536,757 Direct operating expenses 265,795 130,269 227,677 — — — 623,741 Selling, general and administrative expenses 287,676 49,007 79,532 23,298 — (717 ) 438,796 Corporate expenses — — — — 78,906 (939 ) 77,967 Depreciation and amortization 58,089 44,457 35,464 3,893 7,846 — 149,749 Impairment charges — — — — 7,631 — 7,631 Other operating income, net — — — — (13,215 ) — (13,215 ) Operating income (loss) $ 247,971 $ 70,074 $ 7,950 $ 7,261 $ (107,598 ) $ — $ 225,658 Intersegment revenues $ — $ 1,656 $ — $ — $ — $ — $ 1,656 Capital expenditures $ 14,009 $ 4,397 $ 26,932 $ 184 $ 2,802 $ — $ 48,324 Share-based compensation expense $ — $ — $ — $ — $ 3,539 $ — $ 3,539 (In thousands) iHM Americas Outdoor International Outdoor Other Corporate and other reconciling items Eliminations Consolidated Nine Months Ended September 30, 2018 Revenue $ 2,471,239 $ 859,190 $ 1,114,927 $ 113,803 $ — $ (5,904 ) $ 4,553,255 Direct operating expenses 773,424 386,427 709,479 — — (70 ) 1,869,260 Selling, general and administrative expenses 929,308 146,021 235,473 74,420 — (2,988 ) 1,382,234 Corporate expenses — — — — 245,399 (2,846 ) 242,553 Depreciation and amortization 149,714 127,410 113,875 10,242 18,537 — 419,778 Impairment charges — — — — 40,922 — 40,922 Other operating expense, net — — — — (5,212 ) — (5,212 ) Operating income (loss) $ 618,793 $ 199,332 $ 56,100 $ 29,141 $ (310,070 ) $ — $ 593,296 Intersegment revenues $ 84 $ 5,820 $ — $ — $ — $ — $ 5,904 Capital expenditures $ 42,211 $ 50,214 $ 57,487 $ 1,083 $ 6,574 $ — $ 157,569 Share-based compensation expense $ — $ — $ — $ — $ 8,385 $ — $ 8,385 Nine Months Ended September 30, 2017 Revenue $ 2,501,084 $ 854,344 $ 1,005,954 $ 99,332 $ — $ (5,444 ) $ 4,455,270 Direct operating expenses 773,327 393,953 645,222 3 — — 1,812,505 Selling, general and administrative expenses 894,669 148,824 221,773 74,519 — (2,694 ) 1,337,091 Corporate expenses — — — — 236,237 (2,750 ) 233,487 Depreciation and amortization 174,946 130,127 102,711 11,097 24,769 — 443,650 Impairment charges — — — — 7,631 — 7,631 Other operating income, net — — — — 24,785 — 24,785 Operating income (loss) $ 658,142 $ 181,440 $ 36,248 $ 13,713 $ (243,852 ) $ — $ 645,691 Intersegment revenues $ — $ 5,444 $ — $ — $ — $ — $ 5,444 Capital expenditures $ 44,353 $ 46,394 $ 86,206 $ 551 $ 7,440 $ — $ 184,944 Share-based compensation expense $ — $ — $ — $ — $ 9,020 $ — $ 9,020 |
LIABILITIES SUBJECT TO COMPRO_2
LIABILITIES SUBJECT TO COMPROMISE (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Reorganizations [Abstract] | |
Schedule of Liabilities Subject to Compromise | Liabilities subject to compromise at September 30, 2018 consisted of the following: (In thousands) September 30, Accounts payable $ 44,132 Accrued expenses 27,509 Deferred taxes 622,415 Other long-term liabilities 89,730 Accounts payable, accrued and other liabilities 783,786 Debt subject to compromise 15,148,955 Accrued interest on debt subject to compromise 542,673 Long-term debt and accrued interest 15,691,628 Total liabilities subject to compromise $ 16,475,414 |
REORGANIZATION ITEMS, NET (Tabl
REORGANIZATION ITEMS, NET (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Reorganizations [Abstract] | |
Schedule of Reorganization items | Reorganization items incurred as a result of the Chapter 11 Cases are presented separately in the accompanying statements of operations for the three and nine months ended September 30, 2018 and were as follows: (In thousands) Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 Write-off of deferred long-term debt fees $ — $ 67,079 Write-off of original issue discount on debt subject to compromise — 131,100 Debtor-in-possession refinancing costs — 10,546 Professional fees and other bankruptcy related costs 52,475 104,545 Reorganization items, net $ 52,475 $ 313,270 |
CONDENSED COMBINED DEBTOR-IN-_2
CONDENSED COMBINED DEBTOR-IN-POSSESSION FINANCIAL INFORMATION (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Reorganizations [Abstract] | |
Debtors Financial Statements | The following table provides a reconciliation of cash, cash equivalents and restricted cash reported in the Debtors' Balance Sheet to the total of the amounts reported in the Debtors' Statement of Cash Flows: (In thousands) September 30, Cash and cash equivalents $ 76,154 Restricted cash included in: Other current assets 3,422 Total cash, cash equivalents and restricted cash in the Statement of Cash Flows $ 79,576 Debtors' Balance Sheet (In thousands) September 30, 2018 (Unaudited) CURRENT ASSETS Cash and cash equivalents $ 76,154 Accounts receivable, net of allowance of $24,455 809,974 Prepaid expenses 115,308 Other current assets 25,651 Total Current Assets 1,027,087 PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment, net 462,609 INTANGIBLE ASSETS AND GOODWILL Indefinite-lived intangibles - licenses 2,409,326 Other intangibles, net 171,134 Goodwill 3,335,433 OTHER ASSETS Other assets 58,080 Total Assets $ 7,463,669 CURRENT LIABILITIES Accounts payable $ 49,737 Intercompany payable 9,227 Accrued expenses 240,412 Accrued interest 592 Deferred income 130,236 Current portion of long-term debt — Total Current Liabilities 430,204 Long-term debt — Other long-term liabilities 233,769 Liabilities subject to compromise 1 17,507,135 EQUITY (DEFICIT) Equity (Deficit) (10,707,439 ) Total Liabilities and Equity (Deficit) $ 7,463,669 1 In connection with the cash management arrangements with CCOH, the Company maintains an intercompany revolving promissory note payable by the Company to CCOH (the "Intercompany Note"), which matures on May 15, 2019. Liabilities subject to compromise include the principal amount outstanding under the Intercompany Note, which totals $1,031.7 million as of September 30, 2018 . Debtors' Statements of Operations (In thousands) Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 Revenue $ 909,984 $ 2,558,629 Operating expenses: Direct operating expenses (excludes depreciation and amortization) 267,117 768,868 Selling, general and administrative expenses (excludes depreciation and amortization) 322,410 986,654 Corporate expenses (excludes depreciation and amortization) 47,431 134,293 Depreciation and amortization 43,036 174,773 Impairment charges 33,151 33,151 Other operating expense, net (2,458 ) (6,908 ) Operating income 194,381 453,982 Interest expense, net 1 2,638 356,179 Equity in loss of nonconsolidated affiliates (31 ) (94 ) Gain on extinguishment of debt — 5,667 Dividend income 2 269 25,756 Other expense, net (410 ) (22,648 ) Reorganization items, net 52,475 313,270 Income (loss) before income taxes 139,096 (206,786 ) Income tax benefit (expense) (10,681 ) 10,465 Net income (loss) $ 128,415 $ (196,321 ) 1 Includes interest incurred during the three months ended September 30, 2018 in relation to the post-petition Intercompany Note and interest incurred during the nine months ended September 30, 2018 in relation to the pre-petition and post-petition Intercompany Notes. 2 Consists of cash dividends received from Non-Debtor entities during the three and nine months ended September 30, 2018 . Debtors' Statement of Cash Flows (In thousands) Nine Months Ended September 30, 2018 Cash flows from operating activities: Consolidated net loss $ (196,321 ) Reconciling items: Impairment charges 33,151 Depreciation and amortization 174,773 Deferred taxes (18,869 ) Provision for doubtful accounts 14,747 Amortization of deferred financing charges and note discounts, net 11,871 Non-cash Reorganization items, net 261,057 Share-based compensation 1,628 Loss on disposal of operating and other assets 2,738 Equity in loss of nonconsolidated affiliates 94 Gain on extinguishment of debt (5,667 ) Barter and trade income (6,228 ) Other reconciling items, net (320 ) Changes in operating assets and liabilities, net of effects of acquisitions and dispositions: Decrease in accounts receivable 20,906 Increase in prepaid expenses and other current assets (18,844 ) Decrease in accrued expenses (41,848 ) Increase in accounts payable 21,954 Increase in accrued interest 302,724 Increase in deferred income 11,323 Changes in other operating assets and liabilities (13,726 ) Net cash provided by operating activities 555,143 Cash flows from investing activities: Purchases of property, plant and equipment (47,309 ) Proceeds from disposal of assets 682 Purchases of other operating assets (305 ) Change in other, net (95 ) Net cash used for investing activities (47,027 ) Cash flows from financing activities: Draws on credit facilities 143,332 Payments on credit facilities (258,308 ) Payments on long-term debt (358,880 ) Net transfers to related parties (57,078 ) Change in other, net (74 ) Net cash used for financing activities (531,008 ) Effect of exchange rate changes on cash, cash equivalents and restricted cash — Net decrease in cash, cash equivalents and restricted cash (22,892 ) Cash, cash equivalents and restricted cash at beginning of period 102,468 Cash, cash equivalents and restricted cash at end of period $ 79,576 |
BASIS OF PRESENTATION - Summary
BASIS OF PRESENTATION - Summary of Effects of Error Correction On Financial Statements (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Financial Position [Abstract] | ||||||
Other assets | $ 295,998 | $ 295,998 | $ 274,932 | |||
Total Assets | 11,959,312 | 11,959,312 | 12,257,096 | |||
Other long-term liabilities | 498,001 | 498,001 | 610,639 | |||
Noncontrolling interest | 17,353 | 17,353 | 41,191 | |||
Accumulated deficit | (13,560,251) | (13,560,251) | (13,142,001) | |||
Accumulated other comprehensive loss | (322,071) | (322,071) | (313,718) | |||
Total Stockholders' Deficit | (11,793,235) | $ (11,703,102) | (11,793,235) | $ (11,703,102) | (11,344,344) | $ (10,901,861) |
Total Liabilities and Stockholders' Deficit | 11,959,312 | 11,959,312 | 12,257,096 | |||
Statement of Comprehensive Income [Abstract] | ||||||
Revenue | 1,582,765 | 1,536,757 | 4,553,255 | 4,455,270 | ||
Direct operating expenses (excludes depreciation and amortization) | 630,264 | 623,741 | 1,869,260 | 1,812,505 | ||
Selling, general and administrative expenses (excludes depreciation and amortization) | 457,757 | 438,796 | 1,382,234 | 1,337,091 | ||
Operating income | 247,292 | 225,658 | 593,296 | 645,691 | ||
Interest expense | 99,255 | 470,250 | 625,252 | 1,388,819 | ||
Loss before income taxes | 89,552 | (246,780) | (380,359) | (759,045) | ||
Consolidated net loss | 71,783 | (248,831) | (427,547) | (809,188) | ||
Less amount attributable to noncontrolling interest | 1,705 | 1,659 | (10,732) | 7,614 | ||
Net loss attributable to the Company | 70,078 | (250,490) | (416,815) | (816,802) | ||
Foreign currency translation adjustments | 12,408 | 43,071 | ||||
Other comprehensive income | (6,084) | 18,295 | (18,617) | 47,416 | ||
Comprehensive loss | 63,994 | (232,195) | (435,432) | (769,386) | ||
Less amount attributable to noncontrolling interest | (5,212) | 4,161 | (8,829) | 10,060 | ||
Comprehensive loss attributable to the Company | $ 69,206 | $ (236,356) | $ (426,603) | $ (779,446) | ||
Basic loss per share (in dollars per share) | $ 0.82 | $ (2.94) | $ (4.88) | $ (9.62) | ||
Diluted loss per share (in dollars per share) | $ 0.82 | $ (2.94) | $ (4.88) | $ (9.62) | ||
As Reported | ||||||
Statement of Financial Position [Abstract] | ||||||
Other assets | 278,267 | |||||
Total Assets | 12,260,431 | |||||
Other long-term liabilities | 597,085 | |||||
Noncontrolling interest | 42,764 | |||||
Accumulated deficit | (13,127,843) | |||||
Accumulated other comprehensive loss | (312,560) | |||||
Total Stockholders' Deficit | (11,327,455) | |||||
Total Liabilities and Stockholders' Deficit | 12,260,431 | |||||
Statement of Comprehensive Income [Abstract] | ||||||
Revenue | $ 1,537,416 | $ 4,457,106 | ||||
Direct operating expenses (excludes depreciation and amortization) | 621,895 | 1,807,534 | ||||
Selling, general and administrative expenses (excludes depreciation and amortization) | 438,654 | 1,336,563 | ||||
Operating income | 228,305 | 653,026 | ||||
Interest expense | 1,388,747 | |||||
Loss before income taxes | (244,133) | (751,638) | ||||
Consolidated net loss | (246,184) | (801,781) | ||||
Less amount attributable to noncontrolling interest | 1,993 | 8,648 | ||||
Net loss attributable to the Company | (248,177) | (810,429) | ||||
Foreign currency translation adjustments | 13,010 | 44,665 | ||||
Other comprehensive income | 18,897 | 49,010 | ||||
Comprehensive loss | (229,280) | (761,419) | ||||
Less amount attributable to noncontrolling interest | 4,289 | 10,342 | ||||
Comprehensive loss attributable to the Company | $ (233,569) | $ (771,761) | ||||
Basic loss per share (in dollars per share) | $ (2.92) | $ (9.55) | ||||
Diluted loss per share (in dollars per share) | $ (2.92) | $ (9.55) | ||||
Correction | ||||||
Statement of Financial Position [Abstract] | ||||||
Other assets | (3,335) | |||||
Total Assets | (3,335) | |||||
Other long-term liabilities | 13,554 | |||||
Noncontrolling interest | (1,573) | |||||
Accumulated deficit | (14,158) | |||||
Accumulated other comprehensive loss | (1,158) | |||||
Total Stockholders' Deficit | (16,889) | |||||
Total Liabilities and Stockholders' Deficit | $ (3,335) | |||||
Statement of Comprehensive Income [Abstract] | ||||||
Revenue | $ (659) | $ (1,836) | ||||
Direct operating expenses (excludes depreciation and amortization) | 1,846 | 4,971 | ||||
Selling, general and administrative expenses (excludes depreciation and amortization) | 142 | 528 | ||||
Operating income | (2,647) | (7,335) | ||||
Interest expense | 72 | |||||
Loss before income taxes | (2,647) | (7,407) | ||||
Consolidated net loss | (2,647) | (7,407) | ||||
Less amount attributable to noncontrolling interest | (334) | (1,034) | ||||
Net loss attributable to the Company | (2,313) | (6,373) | ||||
Foreign currency translation adjustments | (602) | (1,594) | ||||
Other comprehensive income | (602) | (1,594) | ||||
Comprehensive loss | (2,915) | (7,967) | ||||
Less amount attributable to noncontrolling interest | (128) | (282) | ||||
Comprehensive loss attributable to the Company | $ (2,787) | $ (7,685) | ||||
Basic loss per share (in dollars per share) | $ (0.02) | $ (0.07) | ||||
Diluted loss per share (in dollars per share) | $ (0.02) | $ (0.07) |
BASIS OF PRESENTATION - Narrati
BASIS OF PRESENTATION - Narrative (Details) $ in Millions | Apr. 28, 2018 | Nov. 05, 2018USD ($)claim | Sep. 30, 2018 | Mar. 26, 2018 |
Segment Reporting Information [Line Items] | ||||
Equity interest distributed to equity holders (percent) | 99.00% | |||
Equity interest distributed to equity holders pursuant to post-emergency plan (percent) | 1.00% | |||
Other | ||||
Segment Reporting Information [Line Items] | ||||
Revenue, performance obligation, description of timing | The Company’s media representation contracts typically have terms up to ten years in duration and are generally billed monthly upon satisfaction of the performance obligations. | |||
Maximum | Americas and International Outdoor Advertising | ||||
Segment Reporting Information [Line Items] | ||||
Revenue, performance obligation, description of timing | Revenues from these contracts, which typically cover periods of a few weeks to one year, are generally recognized ratably over the term of the contract as the advertisement is displayed. | |||
Senior Notes Due 2021 | ||||
Segment Reporting Information [Line Items] | ||||
Stated interest rate | 14.00% | 14.00% | 14.00% | |
Subsequent Event | ||||
Segment Reporting Information [Line Items] | ||||
Number of proofs of claims | claim | 4,200 | |||
Amount of proofs of claims | $ | $ 808,300 | |||
Number of claims that have been disallowed or withdrawn | claim | 275 | |||
Amount of claims that have been disallowed or withdrawn | $ | $ 13 | |||
Number of additional claim objections | claim | 200 | |||
Amount of additional claim objections | $ | $ 4,800 |
BASIS OF PRESENTATION - Schedul
BASIS OF PRESENTATION - Schedule of Trade and Barter Revenues and Expenses (Details) - Trade and Barter Transactions - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Segment Reporting Information [Line Items] | ||||
Trade and barter revenues | $ 55,475 | $ 49,886 | $ 153,185 | $ 162,330 |
Trade and barter expenses | 42,985 | 34,672 | 145,656 | 126,502 |
iHM | ||||
Segment Reporting Information [Line Items] | ||||
Trade and barter revenues | 51,831 | 45,884 | 141,769 | 149,164 |
Trade and barter expenses | $ 40,607 | $ 31,859 | $ 136,827 | $ 118,215 |
BASIS OF PRESENTATION - Reconci
BASIS OF PRESENTATION - Reconciliation of Cash, Cash Equivalents, and Restricted Cash (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 311,162 | $ 267,109 | ||
Restricted cash included in: | ||||
Other current assets | 7,653 | 26,096 | ||
Other assets | 19,282 | 18,095 | ||
Total cash, cash equivalents and restricted cash in the Statement of Cash Flows | $ 338,097 | $ 311,300 | $ 322,197 | $ 855,726 |
BASIS OF PRESENTATION - Debtors
BASIS OF PRESENTATION - Debtors' Reconciliation of Cash, Cash Equivalents, and Restricted Cash (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Cash and cash equivalents | $ 311,162 | $ 267,109 | ||
Other current assets | 7,653 | 26,096 | ||
Total cash, cash equivalents and restricted cash in the Statement of Cash Flows | 338,097 | 311,300 | $ 322,197 | $ 855,726 |
Debtors | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Cash and cash equivalents | 76,154 | |||
Other current assets | 3,422 | |||
Total cash, cash equivalents and restricted cash in the Statement of Cash Flows | $ 79,576 | $ 102,468 |
REVENUES - Revenue By Segment a
REVENUES - Revenue By Segment and Geographic Region (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Disaggregation of Revenue [Line Items] | ||||
Total revenue from contracts with customers | $ 1,245,180 | $ 1,202,324 | $ 3,570,810 | $ 3,500,509 |
Revenue from leases | 337,585 | 334,433 | 982,445 | 954,761 |
Revenue | 1,582,765 | 1,536,757 | 4,553,255 | 4,455,270 |
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from contracts with customers | 1,032,549 | 995,807 | 2,897,841 | 2,893,686 |
Other Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from contracts with customers | 12,495 | 17,416 | 40,703 | 49,804 |
Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from contracts with customers | 193,929 | 183,649 | 612,509 | 539,936 |
Asia-Pacific and other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from contracts with customers | 9,622 | 9,250 | 30,325 | 28,203 |
Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from contracts with customers | (3,415) | (3,798) | (10,568) | (11,120) |
Revenue | 1,466 | 1,656 | 5,904 | 5,444 |
Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from contracts with customers | (168) | (341) | (1,606) | (1,778) |
Revenue from leases | (1,298) | (1,315) | (4,298) | (3,666) |
Revenue | (1,466) | (1,656) | (5,904) | (5,444) |
Eliminations | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from contracts with customers | (168) | (341) | (1,606) | (1,778) |
iHM | Operating segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from contracts with customers | 872,767 | 858,669 | 2,469,080 | 2,497,738 |
Revenue from leases | 637 | 862 | 2,159 | 3,346 |
Revenue | 873,404 | 859,531 | 2,471,239 | 2,501,084 |
iHM | Operating segments | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from contracts with customers | 869,126 | 854,890 | 2,457,506 | 2,487,144 |
iHM | Operating segments | Other Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from contracts with customers | 582 | 704 | 2,025 | 2,107 |
iHM | Operating segments | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from contracts with customers | 2,415 | 2,420 | 7,477 | 6,825 |
iHM | Operating segments | Asia-Pacific and other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from contracts with customers | 4,059 | 4,453 | 12,640 | 12,782 |
iHM | Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from contracts with customers | (3,415) | (3,798) | (10,568) | (11,120) |
Americas Outdoor | Operating segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from contracts with customers | 117,174 | 109,456 | 330,093 | 319,835 |
Revenue from leases | 186,247 | 184,351 | 529,097 | 534,509 |
Revenue | 303,421 | 293,807 | 859,190 | 854,344 |
Americas Outdoor | Operating segments | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from contracts with customers | 116,503 | 106,806 | 328,138 | 308,988 |
Americas Outdoor | Operating segments | Other Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from contracts with customers | 671 | 2,488 | 1,955 | 10,279 |
Americas Outdoor | Operating segments | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from contracts with customers | 0 | 0 | 0 | 0 |
Americas Outdoor | Operating segments | Asia-Pacific and other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from contracts with customers | 0 | 162 | 0 | 568 |
Americas Outdoor | Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from contracts with customers | 0 | 0 | 0 | 0 |
Revenue | 1,443 | 1,656 | 5,820 | 5,444 |
International Outdoor | Operating segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from contracts with customers | 208,319 | 200,088 | 659,440 | 585,382 |
Revenue from leases | 151,999 | 150,535 | 455,487 | 420,572 |
Revenue | 360,318 | 350,623 | 1,114,927 | 1,005,954 |
International Outdoor | Operating segments | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from contracts with customers | 0 | 0 | 0 | 0 |
International Outdoor | Operating segments | Other Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from contracts with customers | 11,242 | 14,224 | 36,723 | 37,418 |
International Outdoor | Operating segments | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from contracts with customers | 191,514 | 181,229 | 605,032 | 533,111 |
International Outdoor | Operating segments | Asia-Pacific and other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from contracts with customers | 5,563 | 4,635 | 17,685 | 14,853 |
International Outdoor | Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from contracts with customers | 0 | 0 | 0 | 0 |
Other | Operating segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from contracts with customers | 47,088 | 34,452 | 113,803 | 99,332 |
Revenue from leases | 0 | 0 | 0 | 0 |
Revenue | 47,088 | 34,452 | 113,803 | 99,332 |
Other | Operating segments | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from contracts with customers | 47,088 | 34,452 | 113,803 | 99,332 |
Other | Operating segments | Other Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from contracts with customers | 0 | 0 | 0 | 0 |
Other | Operating segments | Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from contracts with customers | 0 | 0 | 0 | 0 |
Other | Operating segments | Asia-Pacific and other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from contracts with customers | 0 | 0 | 0 | 0 |
Other | Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue from contracts with customers | $ 0 | $ 0 | $ 0 | $ 0 |
REVENUES - Schedule of Contract
REVENUES - Schedule of Contract Assets and Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Contract Assets | |||||
Beginning balance, net of allowance | $ 1,104,255 | $ 1,106,289 | $ 1,196,101 | $ 1,067,980 | |
Additions (collections), net | 19,628 | 6,487 | (58,027) | 55,186 | |
Bad debt, net of recoveries | (2,720) | (6,189) | (16,911) | (16,579) | |
Ending balance, net of allowance | 1,121,163 | 1,106,587 | 1,121,163 | 1,106,587 | |
Accounts receivable from leases, net of allowance | 345,761 | 326,432 | 345,761 | 326,432 | |
Total accounts receivable, net of allowance | 1,466,924 | 1,433,019 | 1,466,924 | 1,433,019 | $ 1,508,370 |
Contract Liabilities | |||||
Beginning balance | 204,013 | 206,807 | 181,748 | 191,916 | |
Revenue recognized, included in beginning balance | (106,893) | (97,775) | (131,449) | (141,045) | |
Additions, net of revenue recognized during period | 96,173 | 88,297 | 142,994 | 146,458 | |
Ending balance | 193,293 | 197,329 | 193,293 | 197,329 | |
Deferred revenue from leases | 50,930 | 54,639 | 50,930 | 54,639 | |
Total deferred revenue | 244,223 | 251,968 | 244,223 | 251,968 | |
Less: Non-current portion, included in other long-term liabilities | 30,484 | 41,473 | 30,484 | 41,473 | |
Current portion of deferred revenue, included in deferred income | $ 213,739 | $ 210,495 | $ 213,739 | $ 210,495 |
REVENUES - Narrative (Details)
REVENUES - Narrative (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-10-01 $ in Millions | Sep. 30, 2018USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation | $ 243.1 |
Revenue, remaining performance obligation, period | 5 years |
REVENUES - Revenue From Leases
REVENUES - Revenue From Leases (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Operating Leases, Future Minimum Payments Receivable [Abstract] | |
2,018 | $ 280,909 |
2,019 | 37,024 |
2,020 | 19,103 |
2,021 | 13,683 |
2,022 | 9,628 |
Thereafter | 18,836 |
Total minimum future rentals | $ 379,183 |
PROPERTY, PLANT AND EQUIPMENT_3
PROPERTY, PLANT AND EQUIPMENT, INTANGIBLE ASSETS AND GOODWILL - Narrative (Detail) - USD ($) | Oct. 10, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 |
Indefinite-lived Intangible Assets [Line Items] | ||||||
Indefinite-lived intangible assets in International outdoor segment | $ 2,417,830,000 | $ 2,417,830,000 | $ 2,451,813,000 | |||
Total amortization expense related to definite-lived intangible assets | 24,200,000 | $ 49,500,000 | 116,400,000 | $ 148,200,000 | ||
Goodwill impairment | 0 | 0 | 1,591,000 | |||
International Outdoor | ||||||
Indefinite-lived Intangible Assets [Line Items] | ||||||
Indefinite-lived intangible assets in International outdoor segment | 0 | $ 0 | ||||
Goodwill impairment | 1,600,000 | 1,600,000 | 1,591,000 | |||
iHM | ||||||
Indefinite-lived Intangible Assets [Line Items] | ||||||
Impairment of indefinite lived intangible assets | 33,100,000 | $ 6,000,000 | $ 6,000,000 | |||
Goodwill impairment | 0 | |||||
Americas Outdoor | ||||||
Indefinite-lived Intangible Assets [Line Items] | ||||||
Impairment of indefinite lived intangible assets | $ 7,800,000 | |||||
Goodwill impairment | $ 0 | |||||
Stuff Media LLC | Subsequent Event | ||||||
Indefinite-lived Intangible Assets [Line Items] | ||||||
Purchase price of acquired company | $ 55,000,000 |
PROPERTY, PLANT AND EQUIPMENT_4
PROPERTY, PLANT AND EQUIPMENT, INTANGIBLE ASSETS AND GOODWILL - Schedule Of Property, Plant And Equipment (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 4,576,512 | $ 4,565,781 |
Less: accumulated depreciation | 2,857,421 | 2,681,067 |
Property, plant and equipment, net | 1,719,091 | 1,884,714 |
Land, buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 568,499 | 562,702 |
Structures | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 2,808,059 | 2,864,442 |
Towers, transmitters and studio equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 362,158 | 356,664 |
Furniture and other equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 750,459 | 707,163 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 87,337 | $ 74,810 |
PROPERTY, PLANT AND EQUIPMENT_5
PROPERTY, PLANT AND EQUIPMENT, INTANGIBLE ASSETS AND GOODWILL - Schedule Of Gross Carrying Amount and Accumulated Amortization for Other Intangible Assets (Detail) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 2,535,667 | $ 2,549,913 |
Accumulated Amortization | (2,103,170) | (1,999,857) |
Transit, street furniture and other outdoor contractual rights | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 533,274 | 548,918 |
Accumulated Amortization | (440,452) | (440,284) |
Customer / advertiser relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,226,329 | 1,226,314 |
Accumulated Amortization | (1,205,662) | (1,133,251) |
Talent contracts | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 161,962 | 161,962 |
Accumulated Amortization | (146,978) | (138,728) |
Representation contracts | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 77,507 | 77,507 |
Accumulated Amortization | (68,976) | (62,753) |
Permanent easements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 162,920 | 162,920 |
Accumulated Amortization | 0 | 0 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 373,675 | 372,292 |
Accumulated Amortization | $ (241,102) | $ (224,841) |
PROPERTY, PLANT AND EQUIPMENT_6
PROPERTY, PLANT AND EQUIPMENT, INTANGIBLE ASSETS AND GOODWILL - Schedule Of Future Amortization Expense (Detail) $ in Thousands | Sep. 30, 2018USD ($) |
Property, Plant and Equipment [Abstract] | |
2,019 | $ 45,875 |
2,020 | 39,144 |
2,021 | 34,303 |
2,022 | 29,153 |
2,023 | $ 21,377 |
PROPERTY, PLANT AND EQUIPMENT_7
PROPERTY, PLANT AND EQUIPMENT, INTANGIBLE ASSETS AND GOODWILL - Schedule Of Changes In Carrying Amount Of Goodwill (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Goodwill | |||||
Beginning balance | $ 4,051,082,000 | $ 4,066,575,000 | $ 4,066,575,000 | ||
Impairment | $ 0 | 0 | (1,591,000) | ||
Acquisitions | 4,694,000 | ||||
Foreign currency | (5,535,000) | 18,847,000 | |||
Ending balance | 4,043,941,000 | 4,043,941,000 | 4,051,082,000 | ||
iHM | |||||
Goodwill | |||||
Beginning balance | 3,255,208,000 | 3,288,481,000 | 3,288,481,000 | ||
Impairment | 0 | ||||
Acquisitions | 2,442,000 | ||||
Foreign currency | 0 | 0 | |||
Ending balance | 3,253,602,000 | 3,253,602,000 | 3,255,208,000 | ||
Americas Outdoor | |||||
Goodwill | |||||
Beginning balance | 507,819,000 | 505,478,000 | 505,478,000 | ||
Impairment | 0 | ||||
Acquisitions | 2,252,000 | ||||
Foreign currency | 0 | 0 | |||
Ending balance | 507,819,000 | 507,819,000 | 507,819,000 | ||
International Outdoor | |||||
Goodwill | |||||
Beginning balance | 206,224,000 | 190,785,000 | 190,785,000 | ||
Impairment | $ (1,600,000) | (1,600,000) | (1,591,000) | ||
Acquisitions | 0 | ||||
Foreign currency | (5,535,000) | 18,847,000 | |||
Ending balance | 200,689,000 | 200,689,000 | 206,224,000 | ||
Other | |||||
Goodwill | |||||
Beginning balance | 81,831,000 | $ 81,831,000 | 81,831,000 | ||
Impairment | 0 | ||||
Acquisitions | 0 | ||||
Foreign currency | 0 | 0 | |||
Ending balance | $ 81,831,000 | 81,831,000 | 81,831,000 | ||
Dispositions | |||||
Goodwill | |||||
Dispositions | (1,606,000) | (37,532,000) | |||
Dispositions | iHM | |||||
Goodwill | |||||
Dispositions | (1,606,000) | (35,715,000) | |||
Dispositions | Americas Outdoor | |||||
Goodwill | |||||
Dispositions | 0 | 0 | |||
Dispositions | International Outdoor | |||||
Goodwill | |||||
Dispositions | 0 | (1,817,000) | |||
Dispositions | Other | |||||
Goodwill | |||||
Dispositions | $ 0 | 0 | |||
Assets held for sale | |||||
Goodwill | |||||
Assets held for sale | 89,000 | ||||
Assets held for sale | iHM | |||||
Goodwill | |||||
Assets held for sale | 0 | ||||
Assets held for sale | Americas Outdoor | |||||
Goodwill | |||||
Assets held for sale | 89,000 | ||||
Assets held for sale | International Outdoor | |||||
Goodwill | |||||
Assets held for sale | 0 | ||||
Assets held for sale | Other | |||||
Goodwill | |||||
Assets held for sale | $ 0 |
LONG-TERM DEBT - Schedule Of Lo
LONG-TERM DEBT - Schedule Of Long-Term Debt Outstanding (Detail) - USD ($) | Sep. 17, 2018 | Aug. 16, 2018 | Jun. 29, 2018 | Jun. 14, 2018 | Jan. 04, 2018 | Sep. 30, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | Jun. 01, 2018 | Apr. 28, 2018 | Mar. 26, 2018 | Jan. 16, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | |||||||||||||
Total consolidated secured debt | $ 4,034,000 | $ 4,034,000 | $ 13,283,883,000 | ||||||||||
Long-term debt | 20,423,792,000 | 20,423,792,000 | 20,649,181,000 | ||||||||||
Long-term debt fees | (28,612,000) | (28,612,000) | (109,071,000) | ||||||||||
Long-term debt, net subject to compromise | 15,148,955,000 | 15,148,955,000 | 0 | ||||||||||
Less: current portion | 347,000 | 347,000 | 14,972,367,000 | ||||||||||
Total long-term debt | 5,274,490,000 | 5,274,490,000 | 5,676,814,000 | ||||||||||
Additional borrowed on receivables based credit facility | 143,359,000 | $ 60,000,000 | |||||||||||
Borrowings repaid under receivables based credit facility | 258,308,000 | $ 25,909,000 | |||||||||||
Write-off of deferred long-term debt fees | 0 | 67,079,000 | |||||||||||
Write-off of original issue discount on debt subject to compromise | 0 | 131,100,000 | |||||||||||
Senior Secured Credit Facilities | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Total consolidated secured debt | 0 | 0 | 6,300,000,000 | ||||||||||
Receivables Based Credit Facility Due 2020 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Total consolidated secured debt | 0 | 0 | 405,000,000 | ||||||||||
Receivables Based Credit Facility Due 2020 | Line of Credit | Subsidiary | Revolving credit commitment | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Borrowings repaid under receivables based credit facility | $ 74,300,000 | ||||||||||||
Receivables Based Credit Facility Due 2020 | Secured Debt | Subsidiary | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Borrowings repaid under receivables based credit facility | 306,400,000 | ||||||||||||
DIP Facility | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Total consolidated secured debt | 0 | 0 | 0 | ||||||||||
Additional borrowed on receivables based credit facility | 125,000,000 | ||||||||||||
DIP Facility | Line of Credit | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Maximum borrowings provided under credit facility | 450,000,000 | 450,000,000 | |||||||||||
Outstanding borrowings under facility | 0 | 0 | |||||||||||
Letters of credit outstanding | 65,300,000 | 65,300,000 | |||||||||||
Line of credit, excess availability | 347,200,000 | 347,200,000 | |||||||||||
DIP Facility | Line of Credit | Availability Block Requirement | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Line of credit, excess availability | 37,500,000 | 37,500,000 | |||||||||||
DIP Facility | Line of Credit | Subsidiary | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
DIP Facility, aggregate principal amount | 450,000,000 | ||||||||||||
Additional borrowed on receivables based credit facility | 125,000,000 | ||||||||||||
DIP Facility | Line of Credit | Subsidiary | Revolving credit commitment | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
DIP Facility, aggregate principal amount | $ 450,000,000 | ||||||||||||
DIP Facility | Secured Debt | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Borrowings repaid under receivables based credit facility | $ 25,000,000 | $ 100,000,000 | |||||||||||
9.0% Priority Guarantee Notes Due 2019 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Total consolidated secured debt | $ 0 | $ 0 | 1,999,815,000 | ||||||||||
Stated interest rate | 9.00% | 9.00% | |||||||||||
9.0% Priority Guarantee Notes Due 2021 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Total consolidated secured debt | $ 0 | $ 0 | 1,750,000,000 | ||||||||||
Stated interest rate | 9.00% | 9.00% | |||||||||||
11.25% Priority Guarantee Notes Due 2021 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Total consolidated secured debt | $ 0 | $ 0 | 870,546,000 | ||||||||||
Stated interest rate | 11.25% | 11.25% | |||||||||||
9.0% Priority Guarantee Notes Due 2022 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Total consolidated secured debt | $ 0 | $ 0 | 1,000,000,000 | ||||||||||
Stated interest rate | 9.00% | 9.00% | |||||||||||
10.625% Priority Guarantee Notes Due 2023 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Total consolidated secured debt | $ 0 | $ 0 | 950,000,000 | ||||||||||
Stated interest rate | 10.625% | 10.625% | |||||||||||
CCO Receivables Based Credit Facility Due 2023 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Total consolidated secured debt | $ 0 | $ 0 | 0 | ||||||||||
CCO Receivables Based Credit Facility Due 2023 | Subsidiary | Revolving credit commitment | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Maximum borrowings provided under credit facility | $ 125,000,000 | ||||||||||||
Incremental increase of facility | $ 50,000,000 | ||||||||||||
Line of credit facility, term | 5 years | ||||||||||||
CCO Receivables Based Credit Facility Due 2023 | Line of Credit | Subsidiary | Revolving credit commitment | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Maximum borrowings provided under credit facility | 113,000,000 | 113,000,000 | |||||||||||
Letters of credit outstanding | 86,400,000 | 86,400,000 | |||||||||||
Line of credit, excess availability | 26,600,000 | 26,600,000 | |||||||||||
Other secured subsidiary debt | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Total consolidated secured debt | 4,034,000 | 4,034,000 | 8,522,000 | ||||||||||
14.0% Senior Notes Due 2021 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Long-term debt | $ 0 | $ 0 | 1,763,925,000 | ||||||||||
Stated interest rate | 14.00% | 14.00% | 14.00% | 14.00% | |||||||||
Legacy Notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Long-term debt | $ 0 | $ 0 | 475,000,000 | ||||||||||
10.0% Senior Notes Due 2018 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Long-term debt | 0 | 0 | $ 47,482,000 | ||||||||||
Stated interest rate | 10.00% | ||||||||||||
10.0% Senior Notes Due 2018 | Subsidiary | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Repayments of notes | $ 5,300,000 | ||||||||||||
10.0% Senior Notes Due 2018 | Senior Notes | Subsidiary | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt repurchased | $ 5,400,000 | $ 42,100,000 | |||||||||||
CCWH Senior Notes due 2022 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Long-term debt | 2,725,000,000 | 2,725,000,000 | $ 2,725,000,000 | ||||||||||
CCWH Senior Subordinated Notes due 2020 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Long-term debt | 2,200,000,000 | 2,200,000,000 | 2,200,000,000 | ||||||||||
Clear Channel International B.V. Senior Notes due 2020 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Long-term debt | 375,000,000 | 375,000,000 | 375,000,000 | ||||||||||
Other subsidiary debt | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Long-term debt | 26,000 | 26,000 | 24,615,000 | ||||||||||
Purchase accounting adjustments and original issue discount | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Long-term debt | (611,000) | (611,000) | $ (136,653,000) | ||||||||||
Receivables Based Credit Facility Due 2023 | Subsidiary | Revolving credit commitment | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Maximum borrowings provided under credit facility | $ 75,000,000 | ||||||||||||
Legacy Notes Due 2018 | Senior Notes | Subsidiary | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Senior notes | 175,000,000 | 175,000,000 | |||||||||||
Legacy Notes Due 2027 | Senior Notes | Subsidiary | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Senior notes | 300,000,000 | 300,000,000 | |||||||||||
Legacy Notes Due 2016 | Senior Notes | Subsidiary | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Senior notes | 57,100,000 | 57,100,000 | |||||||||||
London Interbank Offered Rate (LIBOR) | DIP Facility | Line of Credit | Subsidiary | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Basis spread on LIBOR | 2.25% | ||||||||||||
Liabilities Subject To Compromise | Senior Secured Credit Facilities | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Total consolidated secured debt | 6,300,000,000 | 6,300,000,000 | |||||||||||
Liabilities Subject To Compromise | 9.0% Priority Guarantee Notes Due 2019 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Total consolidated secured debt | 1,999,800,000 | 1,999,800,000 | |||||||||||
Liabilities Subject To Compromise | 9.0% Priority Guarantee Notes Due 2021 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Total consolidated secured debt | 1,750,000,000 | 1,750,000,000 | |||||||||||
Liabilities Subject To Compromise | 11.25% Priority Guarantee Notes Due 2021 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Total consolidated secured debt | 870,500,000 | 870,500,000 | |||||||||||
Liabilities Subject To Compromise | 9.0% Priority Guarantee Notes Due 2022 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Total consolidated secured debt | 1,000,000,000 | 1,000,000,000 | |||||||||||
Liabilities Subject To Compromise | 10.625% Priority Guarantee Notes Due 2023 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Total consolidated secured debt | 950,000,000 | 950,000,000 | |||||||||||
Liabilities Subject To Compromise | Other secured subsidiary debt | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Total consolidated secured debt | 6,100,000 | 6,100,000 | |||||||||||
Liabilities Subject To Compromise | 14.0% Senior Notes Due 2021 | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Senior notes | 1,781,600,000 | 1,781,600,000 | |||||||||||
Liabilities Subject To Compromise | Legacy Notes | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Senior notes | 475,000,000 | 475,000,000 | |||||||||||
Liabilities Subject To Compromise | Other subsidiary debt | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Senior notes | $ 16,000,000 | $ 16,000,000 |
LONG-TERM DEBT - Narrative (Det
LONG-TERM DEBT - Narrative (Detail) - USD ($) | Jun. 14, 2018 | Sep. 30, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | |||
Weighted average interest rate | 9.10% | 8.90% | |
Aggregate market value of debt | $ 15,400,000,000 | ||
Subsidiary | Line of Credit | DIP Facility | |||
Debt Instrument [Line Items] | |||
DIP Facility, aggregate principal amount | $ 450,000,000 | ||
Revolving credit commitment | Subsidiary | Line of Credit | DIP Facility | |||
Debt Instrument [Line Items] | |||
DIP Facility, aggregate principal amount | $ 450,000,000 | ||
Borrowing base as a percentage of eligible accounts receivable | 90.00% | ||
Minimum incremental increase in facility | $ 10,000,000 | ||
Maximum aggregate increase in facility | $ 100,000,000 | ||
Commitment fee percentage | 0.50% | ||
Letter of credit fee percentage | 2.25% | ||
Amount of reduction of borrowing base and commitments to arrive at exposure | $ 37,500,000 | ||
Minimum excess availability amount | $ 0 | ||
Revolving credit commitment | Subsidiary | Line of Credit | DIP Facility | Federal funds rate | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 0.50% | ||
Revolving credit commitment | Subsidiary | Line of Credit | DIP Facility | One-month Eurodollar | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.00% | ||
Revolving credit commitment | Subsidiary | Line of Credit | DIP Facility | Eurocurrency rate | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.00% | ||
Borrowing rate under DIP Credit Agreement | 2.25% | ||
Revolving credit commitment | Subsidiary | Line of Credit | DIP Facility | Base rate | |||
Debt Instrument [Line Items] | |||
Borrowing rate under DIP Credit Agreement | 1.25% |
LONG-TERM DEBT - Surety Bonds,
LONG-TERM DEBT - Surety Bonds, Letters of Credit and Guarantees - Narrative (Detail) $ in Millions | Sep. 30, 2018USD ($) |
Surety bonds | |
Guarantor Obligations [Line Items] | |
Guarantees obligations | $ 70.5 |
Commercial standby letters of credit | |
Guarantor Obligations [Line Items] | |
Guarantees obligations | 153.9 |
Bank guarantees | |
Guarantor Obligations [Line Items] | |
Guarantees obligations | 41 |
Bank guarantees backed by cash collateral | |
Guarantor Obligations [Line Items] | |
Guarantees obligations | $ 20.5 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Millions | 3 Months Ended | ||||
Sep. 30, 2018 | Oct. 09, 2018 | Apr. 28, 2018 | Mar. 26, 2018 | Mar. 21, 2018 | |
6.875% Senior Notes due 2018 | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate | 6.875% | ||||
7.25% Senior Notes due 2027 | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate | 7.25% | ||||
14.0% Senior Notes Due 2021 | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate | 14.00% | 14.00% | 14.00% | ||
Ministry of Economic Affairs and Finance, Italy | |||||
Debt Instrument [Line Items] | |||||
Estimated loss from Italy investigation | $ 17 | ||||
Subsequent Event | 6.875% Senior Notes due 2018 | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate | 6.875% | ||||
Subsequent Event | 7.25% Senior Notes due 2027 | |||||
Debt Instrument [Line Items] | |||||
Stated interest rate | 7.25% |
INCOME TAXES - Schedule of Comp
INCOME TAXES - Schedule of Components of Income Tax Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | ||||
Current tax benefit (expense) | $ (14,979) | $ 7,522 | $ (25,168) | $ (36,852) |
Deferred tax expense | (2,790) | (9,573) | (22,020) | (13,291) |
Income tax expense | $ (17,769) | $ (2,051) | $ (47,188) | $ (50,143) |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Detail) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rates | 19.80% | (0.80%) | (12.40%) | (6.60%) |
STOCKHOLDERS' DEFICIT - Schedul
STOCKHOLDERS' DEFICIT - Schedule of Changes in Stockholders' Deficit (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Increase (Decrease) in Stockholders' Equity | ||||
Beginning Balances | $ (11,344,344) | $ (10,901,861) | ||
Net income (loss) | $ 71,783 | $ (248,831) | (427,547) | (809,188) |
Dividends declared and other payments to noncontrolling interests | (10,381) | (43,540) | ||
Share-based compensation | 8,385 | 9,020 | ||
Purchase of additional noncontrolling interests | (953) | |||
Disposal of noncontrolling interest | (2,438) | |||
Foreign currency translation adjustments | (7,509) | 12,408 | (20,042) | 43,071 |
Unrealized holding loss on marketable securities | 0 | (320) | 0 | (218) |
Reclassification adjustments | 1,425 | 6,207 | 1,425 | 4,563 |
Other, net | (731) | (1,558) | ||
Ending Balances | (11,793,235) | (11,703,102) | (11,793,235) | (11,703,102) |
The Company | ||||
Increase (Decrease) in Stockholders' Equity | ||||
Beginning Balances | (11,385,535) | (11,030,835) | ||
Net income (loss) | (416,815) | (816,802) | ||
Share-based compensation | 1,628 | 1,867 | ||
Purchase of additional noncontrolling interests | (378) | |||
Foreign currency translation adjustments | (11,062) | 33,473 | ||
Unrealized holding loss on marketable securities | (195) | |||
Reclassification adjustments | 1,274 | 4,078 | ||
Other, net | (78) | (323) | ||
Ending Balances | (11,810,588) | (11,809,115) | (11,810,588) | (11,809,115) |
Noncontrolling Interests | ||||
Increase (Decrease) in Stockholders' Equity | ||||
Beginning Balances | 41,191 | 128,974 | ||
Net income (loss) | (10,732) | 7,614 | ||
Dividends declared and other payments to noncontrolling interests | (10,381) | (43,540) | ||
Share-based compensation | 6,757 | 7,153 | ||
Purchase of additional noncontrolling interests | (575) | |||
Disposal of noncontrolling interest | (2,438) | |||
Foreign currency translation adjustments | (8,980) | 9,598 | ||
Unrealized holding loss on marketable securities | (23) | |||
Reclassification adjustments | 151 | 485 | ||
Other, net | (653) | (1,235) | ||
Ending Balances | $ 17,353 | $ 106,013 | $ 17,353 | $ 106,013 |
STOCKHOLDERS' DEFICIT - Computa
STOCKHOLDERS' DEFICIT - Computation of Loss per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
NUMERATOR: | ||||
Net income (loss) attributable to the Company – common shares | $ 70,078 | $ (250,490) | $ (416,815) | $ (816,802) |
DENOMINATOR: | ||||
Weighted average common shares outstanding - basic | 85,544 | 85,072 | 85,348 | 84,900 |
Weighted average common shares outstanding - diluted | 85,622 | 85,072 | 85,348 | 84,900 |
Net income (loss) attributable to the Company per common share: | ||||
Basic (in dollars per share) | $ 0.82 | $ (2.94) | $ (4.88) | $ (9.62) |
Diluted (in dollars per share) | $ 0.82 | $ (2.94) | $ (4.88) | $ (9.62) |
Outstanding equity awards excluded from computation of diluted earnings per share (in shares) | 6,600 | 8,500 | 7,600 | 8,500 |
OTHER INFORMATION (Detail)
OTHER INFORMATION (Detail) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018USD ($)investment | Jun. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | |
Other Income and Expenses [Abstract] | |||||
Decrease in other comprehensive income (loss), pensions impact | $ 300,000 | $ 300,000 | |||
Change in deferred income tax liabilities | $ 0 | $ 0 | |||
Gain on sale of cost method investment | $ 9,900,000 | ||||
Number of investments sold | investment | 1 | ||||
Proceeds from sale of investment | $ 11,100,000 |
SEGMENT DATA (Detail)
SEGMENT DATA (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Segment Reporting Information [Line Items] | ||||
Revenue | $ 1,582,765 | $ 1,536,757 | $ 4,553,255 | $ 4,455,270 |
Direct operating expenses | 630,264 | 623,741 | 1,869,260 | 1,812,505 |
Selling, general and administrative expenses | 457,757 | 438,796 | 1,382,234 | 1,337,091 |
Corporate expenses | 84,193 | 77,967 | 242,553 | 233,487 |
Depreciation and amortization | 120,700 | 149,749 | 419,778 | 443,650 |
Impairment charges | 40,922 | 7,631 | 40,922 | 7,631 |
Other operating income, net | (1,637) | (13,215) | (5,212) | 24,785 |
Operating income | 247,292 | 225,658 | 593,296 | 645,691 |
Capital expenditures | 68,948 | 48,324 | 157,569 | 184,944 |
Share-based compensation expense | 3,588 | 3,539 | 8,385 | 9,020 |
Operating segments | iHM | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 873,404 | 859,531 | 2,471,239 | 2,501,084 |
Direct operating expenses | 268,606 | 265,795 | 773,424 | 773,327 |
Selling, general and administrative expenses | 303,451 | 287,676 | 929,308 | 894,669 |
Corporate expenses | 0 | 0 | 0 | 0 |
Depreciation and amortization | 34,882 | 58,089 | 149,714 | 174,946 |
Impairment charges | 0 | 0 | 0 | 0 |
Other operating income, net | 0 | 0 | 0 | 0 |
Operating income | 266,465 | 247,971 | 618,793 | 658,142 |
Capital expenditures | 17,750 | 14,009 | 42,211 | 44,353 |
Share-based compensation expense | 0 | 0 | 0 | 0 |
Operating segments | Americas Outdoor | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 303,421 | 293,807 | 859,190 | 854,344 |
Direct operating expenses | 131,241 | 130,269 | 386,427 | 393,953 |
Selling, general and administrative expenses | 49,247 | 49,007 | 146,021 | 148,824 |
Corporate expenses | 0 | 0 | 0 | 0 |
Depreciation and amortization | 39,783 | 44,457 | 127,410 | 130,127 |
Impairment charges | 0 | 0 | 0 | 0 |
Other operating income, net | 0 | 0 | 0 | 0 |
Operating income | 83,150 | 70,074 | 199,332 | 181,440 |
Capital expenditures | 25,826 | 4,397 | 50,214 | 46,394 |
Share-based compensation expense | 0 | 0 | 0 | 0 |
Operating segments | International Outdoor | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 360,318 | 350,623 | 1,114,927 | 1,005,954 |
Direct operating expenses | 230,440 | 227,677 | 709,479 | 645,222 |
Selling, general and administrative expenses | 79,550 | 79,532 | 235,473 | 221,773 |
Corporate expenses | 0 | 0 | 0 | 0 |
Depreciation and amortization | 36,627 | 35,464 | 113,875 | 102,711 |
Impairment charges | 0 | 0 | 0 | 0 |
Other operating income, net | 0 | 0 | 0 | 0 |
Operating income | 13,701 | 7,950 | 56,100 | 36,248 |
Capital expenditures | 21,921 | 26,932 | 57,487 | 86,206 |
Share-based compensation expense | 0 | 0 | 0 | 0 |
Operating segments | Other | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 47,088 | 34,452 | 113,803 | 99,332 |
Direct operating expenses | 0 | 0 | 0 | 3 |
Selling, general and administrative expenses | 25,985 | 23,298 | 74,420 | 74,519 |
Corporate expenses | 0 | 0 | 0 | 0 |
Depreciation and amortization | 3,222 | 3,893 | 10,242 | 11,097 |
Impairment charges | 0 | 0 | 0 | 0 |
Other operating income, net | 0 | 0 | 0 | 0 |
Operating income | 17,881 | 7,261 | 29,141 | 13,713 |
Capital expenditures | 896 | 184 | 1,083 | 551 |
Share-based compensation expense | 0 | 0 | 0 | 0 |
Corporate and other reconciling items | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Direct operating expenses | 0 | 0 | 0 | 0 |
Selling, general and administrative expenses | 0 | 0 | 0 | 0 |
Corporate expenses | 85,160 | 78,906 | 245,399 | 236,237 |
Depreciation and amortization | 6,186 | 7,846 | 18,537 | 24,769 |
Impairment charges | 40,922 | 7,631 | 40,922 | 7,631 |
Other operating income, net | (1,637) | (13,215) | (5,212) | 24,785 |
Operating income | (133,905) | (107,598) | (310,070) | (243,852) |
Capital expenditures | 2,555 | 2,802 | 6,574 | 7,440 |
Share-based compensation expense | 3,588 | 3,539 | 8,385 | 9,020 |
Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | (1,466) | (1,656) | (5,904) | (5,444) |
Direct operating expenses | (23) | 0 | (70) | 0 |
Selling, general and administrative expenses | (476) | (717) | (2,988) | (2,694) |
Corporate expenses | (967) | (939) | (2,846) | (2,750) |
Depreciation and amortization | 0 | 0 | 0 | 0 |
Impairment charges | 0 | 0 | 0 | 0 |
Other operating income, net | 0 | 0 | 0 | 0 |
Operating income | 0 | 0 | 0 | 0 |
Capital expenditures | 0 | 0 | 0 | 0 |
Share-based compensation expense | 0 | 0 | 0 | 0 |
Intersegment revenues | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 1,466 | 1,656 | 5,904 | 5,444 |
Intersegment revenues | iHM | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 23 | 0 | 84 | 0 |
Intersegment revenues | Americas Outdoor | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 1,443 | 1,656 | 5,820 | 5,444 |
Intersegment revenues | International Outdoor | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | $ 0 | $ 0 | 0 | 0 |
Intersegment revenues | Other | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | $ 0 | $ 0 |
CERTAIN RELATIONSHIPS AND REL_2
CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Related Party Transactions [Abstract] | |||
Maximum management fees per year | $ 15,000,000 | ||
Management fees and reimbursable expenses | $ 3,800,000 | $ 2,900,000 | $ 11,400,000 |
LIABILITIES SUBJECT TO COMPRO_3
LIABILITIES SUBJECT TO COMPROMISE (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 |
Liabilities Subject to Compromise [Abstract] | ||
Accounts payable | $ 44,132 | |
Accrued expenses | 27,509 | |
Deferred taxes | 622,415 | |
Other long-term liabilities | 89,730 | |
Accounts payable, accrued and other liabilities | 783,786 | |
Debt subject to compromise | 15,148,955 | $ 0 |
Accrued interest on debt subject to compromise | 542,673 | |
Long-term debt and accrued interest | 15,691,628 | |
Total liabilities subject to compromise | $ 16,475,414 | $ 0 |
REORGANIZATION ITEMS, NET (Deta
REORGANIZATION ITEMS, NET (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Reorganization Items [Abstract] | ||||
Write-off of deferred long-term debt fees | $ 0 | $ 67,079 | ||
Write-off of original issue discount on debt subject to compromise | 0 | 131,100 | ||
Debtor-in-possession refinancing costs | 0 | 10,546 | ||
Professional fees and other bankruptcy related costs | 52,475 | 104,545 | ||
Reorganization items, net | 52,475 | $ 0 | 313,270 | $ 0 |
Unpaid reorganization items, net | $ 56,200 | 56,200 | ||
Draws on credit facilities | 143,359 | $ 60,000 | ||
DIP Facility | ||||
Reorganization Items [Abstract] | ||||
Debtor-in-possession refinancing costs | 6,700 | |||
Draws on credit facilities | $ 125,000 |
CONDENSED COMBINED DEBTOR-IN-_3
CONDENSED COMBINED DEBTOR-IN-POSSESSION FINANCIAL INFORMATION - Balance Sheets (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 |
CURRENT ASSETS | ||||
Cash and cash equivalents | $ 311,162 | $ 267,109 | ||
Accounts receivable, net of allowance | 1,466,924 | 1,508,370 | $ 1,433,019 | |
Allowance for receivables | 46,531 | 48,450 | ||
Prepaid expenses | 240,980 | 209,330 | ||
Other current assets | 59,726 | 82,538 | ||
Total Current Assets | 2,078,792 | 2,067,347 | ||
PROPERTY, PLANT AND EQUIPMENT | ||||
Property, plant and equipment, net | 1,719,091 | 1,884,714 | ||
INTANGIBLE ASSETS AND GOODWILL | ||||
Indefinite-lived intangibles - licenses | 2,417,830 | 2,451,813 | ||
Other intangibles, net | 432,497 | 550,056 | ||
Goodwill | 4,043,941 | 4,051,082 | $ 4,066,575 | |
OTHER ASSETS | ||||
Other assets | 295,998 | 274,932 | ||
Total Assets | 11,959,312 | 12,257,096 | ||
CURRENT LIABILITIES | ||||
Accounts payable | 149,236 | 163,449 | ||
Accrued expenses | 764,353 | 764,275 | ||
Accrued interest | 11,623 | 268,102 | ||
Current portion of deferred revenue, included in deferred income | 218,654 | 186,404 | ||
Current portion of long-term debt | 347 | 14,972,367 | ||
Total Current Liabilities | 1,144,213 | 16,354,597 | ||
Long-term debt | 5,274,490 | 5,676,814 | ||
Other long-term liabilities | 498,001 | 610,639 | ||
Liabilities subject to compromise | 16,475,414 | 0 | ||
EQUITY (DEFICIT) | ||||
Equity (Deficit) | (11,793,235) | (11,344,344) | $ (11,703,102) | $ (10,901,861) |
Total Liabilities and Stockholders' Deficit | 11,959,312 | $ 12,257,096 | ||
Liabilities subject to compromise, principal amount outstanding on intercompany note | 1,031,700 | |||
Debtors | ||||
CURRENT ASSETS | ||||
Cash and cash equivalents | 76,154 | |||
Accounts receivable, net of allowance | 809,974 | |||
Allowance for receivables | 24,455 | |||
Prepaid expenses | 115,308 | |||
Other current assets | 25,651 | |||
Total Current Assets | 1,027,087 | |||
PROPERTY, PLANT AND EQUIPMENT | ||||
Property, plant and equipment, net | 462,609 | |||
INTANGIBLE ASSETS AND GOODWILL | ||||
Indefinite-lived intangibles - licenses | 2,409,326 | |||
Other intangibles, net | 171,134 | |||
Goodwill | 3,335,433 | |||
OTHER ASSETS | ||||
Other assets | 58,080 | |||
Total Assets | 7,463,669 | |||
CURRENT LIABILITIES | ||||
Accounts payable | 49,737 | |||
Intercompany payable | 9,227 | |||
Accrued expenses | 240,412 | |||
Accrued interest | 592 | |||
Current portion of deferred revenue, included in deferred income | 130,236 | |||
Current portion of long-term debt | 0 | |||
Total Current Liabilities | 430,204 | |||
Long-term debt | 0 | |||
Other long-term liabilities | 233,769 | |||
Liabilities subject to compromise | 17,507,135 | |||
EQUITY (DEFICIT) | ||||
Equity (Deficit) | (10,707,439) | |||
Total Liabilities and Stockholders' Deficit | $ 7,463,669 |
CONDENSED COMBINED DEBTOR-IN-_4
CONDENSED COMBINED DEBTOR-IN-POSSESSION FINANCIAL INFORMATION - Income Statements (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Condensed Income Statements, Captions [Line Items] | ||||
Revenue | $ 1,582,765 | $ 1,536,757 | $ 4,553,255 | $ 4,455,270 |
Operating expenses: | ||||
Direct operating expenses (excludes depreciation and amortization) | 630,264 | 623,741 | 1,869,260 | 1,812,505 |
Selling, general and administrative expenses | 457,757 | 438,796 | 1,382,234 | 1,337,091 |
Corporate expenses (excludes depreciation and amortization) | 84,193 | 77,967 | 242,553 | 233,487 |
Depreciation and amortization | 120,700 | 149,749 | 419,778 | 443,650 |
Impairment charges | 40,922 | 7,631 | 40,922 | 7,631 |
Other operating income (expense), net | (1,637) | (13,215) | (5,212) | 24,785 |
Operating income | 247,292 | 225,658 | 593,296 | 645,691 |
Interest expense, net | 99,255 | 470,250 | 625,252 | 1,388,819 |
Equity in earnings (loss) of nonconsolidated affiliates | 172 | (2,238) | 291 | (2,240) |
Other income (expense), net | (6,182) | 50 | (35,424) | (13,677) |
Income (loss) before income taxes | 89,552 | (246,780) | (380,359) | (759,045) |
Income tax benefit (expense) | (17,769) | (2,051) | (47,188) | (50,143) |
Consolidated net income (loss) | 71,783 | $ (248,831) | (427,547) | $ (809,188) |
Debtors | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Revenue | 909,984 | 2,558,629 | ||
Operating expenses: | ||||
Direct operating expenses (excludes depreciation and amortization) | 267,117 | 768,868 | ||
Selling, general and administrative expenses | 322,410 | 986,654 | ||
Corporate expenses (excludes depreciation and amortization) | 47,431 | 134,293 | ||
Depreciation and amortization | 43,036 | 174,773 | ||
Impairment charges | 33,151 | 33,151 | ||
Other operating income (expense), net | (2,458) | (6,908) | ||
Operating income | 194,381 | 453,982 | ||
Interest expense, net | 2,638 | 356,179 | ||
Equity in earnings (loss) of nonconsolidated affiliates | (31) | (94) | ||
Gain on extinguishment of debt | 0 | 5,667 | ||
Dividend income | 269 | 25,756 | ||
Other income (expense), net | (410) | (22,648) | ||
Reorganization items, net | 52,475 | 313,270 | ||
Income (loss) before income taxes | 139,096 | (206,786) | ||
Income tax benefit (expense) | (10,681) | 10,465 | ||
Consolidated net income (loss) | $ 128,415 | $ (196,321) |
CONDENSED COMBINED DEBTOR-IN-_5
CONDENSED COMBINED DEBTOR-IN-POSSESSION FINANCIAL INFORMATION - Statements of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Net Cash Provided by (Used in) Operating Activities [Abstract] | ||||
Consolidated net loss | $ 71,783 | $ (248,831) | $ (427,547) | $ (809,188) |
Reconciling items: | ||||
Impairment charges | 40,922 | 7,631 | 40,922 | 7,631 |
Depreciation and amortization | 120,700 | 149,749 | 419,778 | 443,650 |
Deferred taxes | 2,790 | 9,573 | 22,020 | 13,291 |
Provision for doubtful accounts | 19,911 | 20,936 | ||
Amortization of deferred financing charges and note discounts, net | 19,871 | 42,682 | ||
Non-cash Reorganization items, net | 261,057 | 0 | ||
Share-based compensation | 3,588 | 3,539 | 8,385 | 9,020 |
(Gain) loss on disposal of operating and other assets | 432 | (30,149) | ||
Equity in (earnings) loss of nonconsolidated affiliates | (172) | 2,238 | (291) | 2,240 |
Barter and trade income | (10,080) | (32,953) | ||
Other reconciling items, net | 13,105 | (19,169) | ||
Changes in operating assets and liabilities, net of effects of acquisitions and dispositions: | ||||
(Increase) decrease in accounts receivable | 5,799 | (60,984) | ||
(Increase) decrease in prepaids and other current assets | (38,058) | (41,237) | ||
Decrease in accrued expenses | (30,887) | (37,819) | ||
Increase (decrease) in accounts payable | 35,525 | 9,419 | ||
Increase (decrease) in accrued interest | 312,605 | (78,087) | ||
Changes in other operating assets and liabilities | (5,972) | (808) | ||
Net cash provided by (used for) operating activities | 663,349 | (557,678) | ||
Cash flows from investing activities: | ||||
Purchases of property, plant and equipment | (68,948) | (48,324) | (157,569) | (184,944) |
Proceeds from disposal of assets | 7,245 | 71,320 | ||
Purchases of other operating assets | (2,132) | (3,224) | ||
Change in other, net | (1,092) | (3,693) | ||
Net cash used for investing activities | (134,892) | (120,413) | ||
Cash flows from financing activities: | ||||
Draws on credit facilities | 143,359 | 60,000 | ||
Payments on credit facilities | (258,308) | (25,909) | ||
Payments on long-term debt | (364,776) | (5,385) | ||
Change in other, net | (2,340) | (5,604) | ||
Net cash provided by (used for) financing activities | (493,107) | 137,066 | ||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (8,553) | 7,496 | ||
Net decrease in cash, cash equivalents and restricted cash | 26,797 | (533,529) | ||
Cash, cash equivalents and restricted cash at beginning of period | 311,300 | 855,726 | ||
Cash, cash equivalents and restricted cash at end of period | 338,097 | $ 322,197 | 338,097 | $ 322,197 |
Debtors | ||||
Net Cash Provided by (Used in) Operating Activities [Abstract] | ||||
Consolidated net loss | 128,415 | (196,321) | ||
Reconciling items: | ||||
Impairment charges | 33,151 | 33,151 | ||
Depreciation and amortization | 43,036 | 174,773 | ||
Deferred taxes | (18,869) | |||
Provision for doubtful accounts | 14,747 | |||
Amortization of deferred financing charges and note discounts, net | 11,871 | |||
Non-cash Reorganization items, net | 261,057 | |||
Share-based compensation | 1,628 | |||
(Gain) loss on disposal of operating and other assets | 2,738 | |||
Equity in (earnings) loss of nonconsolidated affiliates | 31 | 94 | ||
Gain on extinguishment of debt | 0 | (5,667) | ||
Barter and trade income | (6,228) | |||
Other reconciling items, net | (320) | |||
Changes in operating assets and liabilities, net of effects of acquisitions and dispositions: | ||||
(Increase) decrease in accounts receivable | 20,906 | |||
(Increase) decrease in prepaids and other current assets | (18,844) | |||
Decrease in accrued expenses | (41,848) | |||
Increase (decrease) in accounts payable | 21,954 | |||
Increase (decrease) in accrued interest | 302,724 | |||
Increase in deferred income | 11,323 | |||
Changes in other operating assets and liabilities | (13,726) | |||
Net cash provided by (used for) operating activities | 555,143 | |||
Cash flows from investing activities: | ||||
Purchases of property, plant and equipment | (47,309) | |||
Proceeds from disposal of assets | 682 | |||
Purchases of other operating assets | (305) | |||
Change in other, net | (95) | |||
Net cash used for investing activities | (47,027) | |||
Cash flows from financing activities: | ||||
Draws on credit facilities | 143,332 | |||
Payments on credit facilities | (258,308) | |||
Payments on long-term debt | (358,880) | |||
Net transfers to related parties | (57,078) | |||
Change in other, net | (74) | |||
Net cash provided by (used for) financing activities | (531,008) | |||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 0 | |||
Net decrease in cash, cash equivalents and restricted cash | (22,892) | |||
Cash, cash equivalents and restricted cash at beginning of period | 102,468 | |||
Cash, cash equivalents and restricted cash at end of period | $ 79,576 | $ 79,576 |