UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q



[X]	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED ~~SEPTEMBER 30, 2017~~MARCH 31, 2019

[ ]	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM _________ TO __________

Commission File Number

000-53354

IHEARTMEDIA, INC.

(Exact name of registrant as specified in its charter)



Delaware		26-0241222
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

20880 Stone Oak Parkway San Antonio, Texas		78258
(Address of principal executive offices)		(Zip Code)

(210) 822-2828

(Registrant’s telephone number, including area code)



Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [X] No [ ]

Indicate by check mark whether the registrant has submitted electronically ~~and posted on its corporate Web site, if any,~~ every Interactive Data File required to be submitted ~~and posted~~ pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit ~~and post~~ such files). Yes [X] No [ ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated ~~filer”~~filer,” “smaller reporting company” and ~~“smaller reporting~~“emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer [ ] Accelerated filer [ ] Non-accelerated filer [X] Smaller reporting company [ ] Emerging growth company [ ]

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes [ ] No [X]

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes [ ] No [ ]

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

	Class	Outstanding at ~~November 6, 2017~~April 22, 2019
	~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~	~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~
	Class A Common Stock, $.001 par value	~~32,079,841~~31,434,876	⁽¹⁾
	Class B Common Stock, $.001 par value	555,556
	Class C Common Stock, $.001 par value	58,967,502
	Class D Common Stock, $.001 par value	—

	(1) Outstanding Class A common stock includes 111,291 shares owned by a subsidiary

IHEARTMEDIA, INC.

INDEX



		Page No.
Part I – Financial Information
Item 1.	Financial Statements	1
	Consolidated Balance Sheets as of ~~September 30, 2017~~March 31, 2019 and December 31, ~~2016~~2018	1
	Consolidated Statements of Comprehensive Loss for the three ~~and nine~~ months ended ~~September 30, 2017~~March 31, 2019 and ~~2016~~2018	2
	Consolidated Statements of Changes in Stockholders' Deficit for the three months ended March 31, 2019 and 2018	3
	Consolidated Statements of Cash Flows for the ~~nine~~three months ended ~~September 30, 2017~~March 31, 2019 and ~~2016~~2018	34
	Notes to Consolidated Financial Statements	45
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	1831
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	3847
Item 4.	Controls and Procedures	3847
Part II – Other Information
Item 1.	Legal Proceedings	3948
Item 1A.	Risk Factors	3951
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	4151
Item 3.	Defaults Upon Senior Securities	4151
Item 4.	Mine Safety Disclosures	4252
Item 5.	Other Information	4252
Item 6.	Exhibits	4253
Signatures		4354

PART I – FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

IHEARTMEDIA, INC.AND SUBSIDIARIES

(DEBTOR-IN-POSSESSION)

CONSOLIDATED BALANCE SHEETS


(In thousands, except share data)	September 30, 2017			December 31, 2016
(In thousands, except share and per share data)							March 31, 2019			December 31, 2018
	(Unaudited)						(Unaudited)
CURRENT ASSETS
Cash and cash equivalents	$	286,370		$	845,030		$	448,130		$	406,493
Accounts receivable, net of allowance of $40,510 in 2017 and $33,882 in 2016	1,433,019			1,364,404
Accounts receivable, net of allowance of $49,619 in 2019 and $50,808 in 2018							1,387,122			1,575,170
Prepaid expenses	230,209			184,586			179,823			195,266
Assets held for sale	—			55,602
Other current assets	77,876			55,065			74,977			58,088
Total Current Assets	2,027,474			2,504,687			2,090,052			2,235,017
PROPERTY, PLANT AND EQUIPMENT
Structures, net	1,152,066			1,196,676			1,014,688			1,053,016
Other property, plant and equipment, net	735,997			751,486			726,550			738,124
INTANGIBLE ASSETS AND GOODWILL
Indefinite-lived intangibles - licenses	2,408,184			2,413,899			2,326,533			2,417,915
Indefinite-lived intangibles - permits	977,152			960,966			971,163			971,163
Other intangibles, net	596,287			740,508			439,864			453,284
Goodwill	4,083,589			4,066,575			4,118,312			4,118,756
OTHER ASSETS
Operating lease right-of-use assets							2,359,275			—
Other assets	276,511			227,450			239,533			282,240
Total Assets	$	12,257,260		$	12,862,247		$	14,285,970		$	12,269,515
CURRENT LIABILITIES
Accounts payable	$	157,217		$	142,600		$	146,853		$	163,149
Current operating lease liabilities							366,902			—
Accrued expenses	718,458			724,793			632,078			826,865
Accrued interest	149,533			264,170			12,323			3,108
Deferred income	215,410			200,103			234,672			208,195
Current portion of long-term debt	619,003			342,908			46,744			46,332
Total Current Liabilities	1,859,621			1,674,574			1,439,572			1,247,649
Long-term debt	19,995,897			20,022,080			5,293,405			5,277,108
Noncurrent operating lease liabilities							1,669,447			—
Deferred income taxes	1,460,882			1,457,095			323,434			335,015
Other long-term liabilities	618,575			593,973			296,896			489,829
Commitments and contingent liabilities (Note 4)
Liabilities subject to compromise							16,829,329			16,480,256
Commitments and contingent liabilities (Note 6)
STOCKHOLDERS’ DEFICIT
Noncontrolling interest	114,133			135,778			11,437			30,868
Class A Common Stock, par value $.001 per share, authorized 400,000,000 shares, issued 32,680,481 and 31,502,448 shares in 2017 and 2016, respectively	32			31
Class B Common Stock, par value $.001 per share, authorized 150,000,000 shares, issued 555,556 shares in 2017 and 2016	1			1
Class C Common Stock, par value $.001 per share, authorized 100,000,000 shares, issued 58,967,502 shares in 2017 and 2016	59			59
Class D Common Stock, par value $.001 per share, authorized 200,000,000 shares, no shares issued in 2017 and 2016	—			—
Preferred stock, par value $.001 per share, 150,000,000 shares authorized, no shares issued and outstanding							—			—
Class A Common Stock, par value $.001 per share, authorized 400,000,000 shares, issued 32,247,361 and 32,292,944 shares in 2019 and 2018, respectively							32			32
Class B Common Stock, par value $.001 per share, authorized 150,000,000 shares, issued 555,556 shares in 2019 and 2018							1			1
Class C Common Stock, par value $.001 per share, authorized 100,000,000 shares, issued 58,967,502 shares in 2019 and 2018							59			59
Class D Common Stock, par value $.001 per share, authorized 200,000,000 shares, no shares issued in 2019 and 2018							—			—
Additional paid-in capital	2,072,091			2,070,603			2,075,025			2,074,632
Accumulated deficit	(13,544,381		)	(12,733,952		)	(13,330,821		)	(13,345,346		)
Accumulated other comprehensive loss	(317,208		)	(355,876		)	(319,284		)	(318,030		)
Cost of shares (581,707 in 2017 and 389,920 in 2016) held in treasury	(2,442		)	(2,119		)
Cost of shares (812,485 in 2019 and 805,982 in 2018) held in treasury							(2,562		)	(2,558		)
Total Stockholders' Deficit	(11,677,715		)	(10,885,475		)	(11,566,113		)	(11,560,342		)
Total Liabilities and Stockholders' Deficit	$	12,257,260		$	12,862,247		$	14,285,970		$	12,269,515

See Notes to Consolidated Financial Statements

IHEARTMEDIA, INC. AND SUBSIDIARIES

(DEBTOR-IN-POSSESSION)

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(UNAUDITED)


(In thousands, except per share data)	Three Months Ended September 30,						Nine Months Ended September 30,
(In thousands, except share and per share data)													Three Months Ended March 31,
	2017			2016			2017			2016			2019			2018
Revenue	$	1,537,416		$	1,566,582		$	4,457,106		$	4,542,852		$	1,381,899		$	1,369,648
Operating expenses:
Direct operating expenses (excludes depreciation and amortization)	621,895			591,740			1,807,534			1,771,590			614,919			602,355
Selling, general and administrative expenses (excludes depreciation and amortization)	438,654			421,700			1,336,563			1,281,849			455,723			472,987
Corporate expenses (excludes depreciation and amortization)	77,967			86,832			233,487			252,348			74,700			78,734
Depreciation and amortization	149,749			158,453			443,650			476,053			113,366			151,434
Impairment charges	7,631			8,000			7,631			8,000			91,382			—
Other operating income (expense), net	(13,215		)	(505		)	24,785			219,768
Other operating expense, net													(3,549		)	(3,286		)
Operating income	228,305			299,352			653,026			972,780			28,260			60,852
Interest expense	470,250			459,852			1,388,747			1,389,793
Interest expense (excludes contractual interest of $397,500 and $66,324 for the three months ended March 31, 2019 and 2018, respectively)													114,764			418,397
Loss on investments, net	(2,173		)	(13,767		)	(2,433		)	(13,767		)	(9,961		)	(90		)
Equity in earnings (loss) of nonconsolidated affiliates	(2,238		)	1,117			(2,240		)	(926		)	(214		)	157
Gain on extinguishment of debt	—			157,556			—			157,556
Other income (expense), net	2,223			(7,323		)	(11,244		)	(47,054		)
Gain (loss) on extinguishment of debt													(5,474		)	100
Other expense, net													(761		)	(973		)
Reorganization items, net													36,118			192,055
Loss before income taxes	(244,133		)	(22,917		)	(751,638		)	(321,204		)	(139,032		)	(550,406		)
Income tax expense	(2,051		)	(5,613		)	(50,143		)	(42,243		)
Income tax benefit													3,431			117,366
Consolidated net loss	(246,184		)	(28,530		)	(801,781		)	(363,447		)	(135,601		)	(433,040		)
Less amount attributable to noncontrolling interest	1,993			6,471			8,648			38,950			(21,218		)	(16,046		)
Net loss attributable to the Company	$	(248,177	)	$	(35,001	)	$	(810,429	)	$	(402,397	)	$	(114,383	)	$	(416,994	)
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	13,010			7,356			44,665			43,797			2,318			6,561
Unrealized holding loss on marketable securities	(320		)	(290		)	(218		)	(635		)
Reclassification adjustments	6,207			—			4,563			32,823
Other adjustments to comprehensive income (loss)	—			193			—			(3,551		)
Other comprehensive income	18,897			7,259			49,010			72,434			2,318			6,561
Comprehensive loss	(229,280		)	(27,742		)	(761,419		)	(329,963		)	(112,065		)	(410,433		)
Less amount attributable to noncontrolling interest	4,289			1,235			10,342			6,365			3,572			5,446
Comprehensive loss attributable to the Company	$	(233,569	)	$	(28,977	)	$	(771,761	)	$	(336,328	)	$	(115,637	)	$	(415,879	)
Net loss attributable to the Company per common share:
Basic	$	(2.92	)	$	(0.41	)	$	(9.55	)	$	(4.76	)	$	(1.34	)	$	(4.89	)
Weighted average common shares outstanding - Basic	85,072			84,650			84,900			84,510			85,649			85,215
Diluted	$	(2.92	)	$	(0.41	)	$	(9.55	)	$	(4.76	)	$	(1.34	)	$	(4.89	)
Weighted average common shares outstanding - Diluted	85,072			84,650			84,900			84,510			85,649			85,215

See Notes to Consolidated Financial Statements

IHEARTMEDIA, INC.AND SUBSIDIARIES

(DEBTOR-IN-POSSESSION)

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' DEFICIT

(UNAUDITED)



(In thousands, except share data)								Controlling Interest
	Common Shares⁽¹⁾				Non- controlling Interest			Common Stock		Additional Paid-in Capital		Accumulated Deficit			Accumulated Other Comprehensive Loss			Treasury Stock
	Class C Shares	Class B Shares	Class A Shares		Non- controlling Interest			Common Stock		Additional Paid-in Capital		Accumulated Deficit			Accumulated Other Comprehensive Loss			Treasury Stock			Total
Balances at December 31, 2018	58,967,502	555,556	32,292,944		$	30,868		$	92	$	2,074,632	$	(13,345,346	)	$	(318,030	)	$	(2,558	)	$	(11,560,342	)
Consolidated net loss					(21,218		)	—		—		(114,383		)	—			—			(135,601		)
Adoption of ASC 842, Leases					—			—		—		128,908			—			—			128,908
Issuance of restricted stock					64			—		—		—			—			(4		)	60
Forfeitures of restricted stock			(45,583	)	—			—		—		—			—			—			—
Amortization of share-based compensation					1,835			—		392		—			—			—			2,227
Dividend declared and paid to noncontrolling interests					(3,684		)	—		—		—			—			—			(3,684		)
Other					—			—		1		—			—			—			1
Other comprehensive income (loss)					3,572			—		—		—			(1,254		)	—			2,318
Balances at March 31, 2019	58,967,502	555,556	32,247,361		$	11,437		$	92	$	2,075,025	$	(13,330,821	)	$	(319,284	)	$	(2,562	)	$	(11,566,113	)



(In thousands, except share data)								Controlling Interest
	Common Shares⁽¹⁾				Non- controlling Interest			Common Stock		Additional Paid-in Capital			Accumulated Deficit			Accumulated Other Comprehensive Income (Loss)			Treasury Stock
	Class C Shares	Class B Shares	Class A Shares		Non- controlling Interest			Common Stock		Additional Paid-in Capital			Accumulated Deficit			Accumulated Other Comprehensive Income (Loss)			Treasury Stock			Total
Balances at December 31, 2017	58,967,502	555,556	32,626,168		$	41,191		$	92	$	2,072,566		$	(13,142,001	)	$	(313,718	)	$	(2,474	)	$	(11,344,344	)
Consolidated net loss					(16,046		)	—		—			(416,994		)	—			—			(433,040		)
Issuance of restricted stock			70,000		5			—		—			—			—			—			5
Forfeitures of restricted stock			(143,882	)	—			—		—			—			—			—			—
Amortization of share-based compensation					2,105			—		579			—			—			—			2,684
Dividend declared and paid to noncontrolling interests					(3,251		)	—		—			—			—			—			(3,251		)
Other					(21		)	—		(1		)	(1,435		)	1,435			(3		)	(25		)
Other comprehensive income					5,446			—		—			—			1,115			—			6,561
Balances at March 31, 2018	58,967,502	555,556	32,552,286		$	29,429		$	92	$	2,073,144		$	(13,560,430	)	$	(311,168	)	$	(2,477	)	$	(11,771,410	)

(1) The Company's Class D Common Stock and Preferred Stock are not presented in the data above as there were no shares issued and outstanding in 2019 or 2018.

IHEARTMEDIA, INC. AND SUBSIDIARIES

(DEBTOR-IN-POSSESSION)

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)


(In thousands)	Nine Months Ended September 30,						Three Months Ended March 31,
	2017			2016			2019			2018
Cash flows from operating activities:
Consolidated net loss	$	(801,781	)	$	(363,447	)	$	(135,601	)	$	(433,040	)
Reconciling items:
Impairment charges	7,631			8,000			91,382			—
Depreciation and amortization	443,650			476,053			113,366			151,434
Deferred taxes	12,505			(14,097		)	(5,357		)	(122,038		)
Provision for doubtful accounts	20,936			20,042			5,674			8,515
Amortization of deferred financing charges and note discounts, net	42,682			51,806			3,042			13,671
Non-cash Reorganization items, net							2,173			191,903
Share-based compensation	9,020			10,350			2,227			2,684
Gain on disposal of operating and other assets	(30,149		)	(227,765		)
Loss on disposal of operating and other assets							3,556			1,678
Loss on investments	2,433			13,767			9,961			90
Equity in loss of nonconsolidated affiliates	2,240			926
Gain on extinguishment of debt	—			(157,556		)
Equity in (earnings) loss of nonconsolidated affiliates							214			(157		)
(Gain) loss on extinguishment of debt							5,474			(100		)
Barter and trade income	(32,953		)	(22,126		)	(6,448		)	(1,417		)
Foreign exchange transaction (gain) loss	(21,602		)	46,533
Other reconciling items, net							(563		)	(19,783		)
Changes in operating assets and liabilities, net of effects of acquisitions and dispositions:
(Increase) decrease in accounts receivable	(60,984		)	16,909
Decrease in accounts receivable							183,696			157,856
Increase in prepaid expenses and other current assets	(41,306		)	(17,836		)	(50,365		)	(54,527		)
Decrease in accrued expenses	(37,819		)	(60,515		)	(164,042		)	(114,377		)
Increase (decrease) in accounts payable	9,419			(39,660		)	(16,032		)	35,051
Decrease in accrued interest	(78,087		)	(92,947		)
Increase in accrued interest							9,768			310,235
Increase in deferred income	3,847			37,550			34,910			53,091
Changes in other operating assets and liabilities	(8,399		)	41,435			1,952			(5,293		)
Net cash used for operating activities	(558,717		)	(272,578		)
Net cash provided by operating activities							88,987			175,476
Cash flows from investing activities:
Purchases of other investments	(29,498		)	(33,911		)
Proceeds from sale of other investments	5,059			3,256
Purchases of property, plant and equipment	(184,944		)	(201,038		)	(51,126		)	(38,703		)
Proceeds from disposal of assets	71,320			604,044			722			2,310
Purchases of other operating assets	(3,224		)	(3,464		)
Change in other, net	(3,693		)	(2,575		)	(2,007		)	(803		)
Net cash provided by (used for) investing activities	(144,980		)	366,312
Net cash used for investing activities							(52,411		)	(37,196		)
Cash flows from financing activities:
Draws on credit facilities	60,000			—			—			25,333
Payments on credit facilities	(25,909		)	(1,728		)	—			(59,000		)
Proceeds from long-term debt	156,000			800			2,235,228			—
Payments on long-term debt	(5,385		)	(226,640		)	(2,206,466		)	(55,597		)
Payments to purchase noncontrolling interests	(953		)	—
Dividends and other payments to noncontrolling interests	(41,083		)	(93,371		)	(73		)	(3,166		)
Debt issuance costs							(26,752		)	—
Change in other, net	(5,604		)	(1,644		)	59			(15		)
Net cash provided by (used for) financing activities	137,066			(322,583		)	1,996			(92,445		)
Effect of exchange rate changes on cash	7,971			(919		)
Net decrease in cash and cash equivalents	(558,660		)	(229,768		)
Cash and cash equivalents at beginning of period	845,030			772,678
Cash and cash equivalents at end of period	$	286,370		$	542,910
Effect of exchange rate changes on cash, cash equivalents and restricted cash							682			3,366
Net increase in cash, cash equivalents and restricted cash							39,254			49,201
Cash, cash equivalents and restricted cash at beginning of period							430,334			311,300
Cash, cash equivalents and restricted cash at end of period							$	469,588		$	360,501
SUPPLEMENTAL DISCLOSURES:
Cash paid for interest	$	1,426,438		$	1,434,482		$	103,897		$	94,533
Cash paid for taxes	31,668			39,288
Cash paid for income taxes							16,410			9,974
Cash paid for Reorganization items, net							33,945			152

See Notes to Consolidated Financial Statements

IHEARTMEDIA, INC. AND SUBSIDIARIES (DEBTOR-IN-POSSESSION)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

NOTE 1 – 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 ~~2016~~2018 Annual Report on Form 10-K.

The consolidated financial statements include the accounts of the Company and its subsidiaries. Also included in the consolidated financial statements are entities for which the Company has a controlling financial interest or is the primary beneficiary. Investments in companies in which the Company owns 20% to 50% of the voting common stock or otherwise exercises significant influence over operating and financial policies of the company are accounted for under the equity method. All significant intercompany transactions are eliminated in the consolidation process.

Certain ~~prior-period~~prior period amounts have been reclassified to conform to the ~~2017~~2019 presentation.

~~Going Concern Considerations~~Voluntary Filing under Chapter 11

~~During~~On March 14, 2018 (the "Petition Date"), the ~~second quarter~~Company, iHeartCommunications, Inc. ("iHeartCommunications") and certain of ~~2014,~~ the ~~FASB issued ASU No. 2014-15,~~ ~~Presentation~~Company's direct and indirect domestic subsidiaries (collectively, the "Debtors") filed voluntary petitions for relief (the "Chapter 11 Cases") under Chapter 11 of ~~Financial Statements - Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern. This update provides U.S. GAAP guidance on management’s responsibility~~the United States Bankruptcy Code (the "Bankruptcy Code"), in ~~evaluating whether there is substantial doubt about a company’s ability to continue as a going concern and about related footnote disclosures. The Company adopted this standard~~the United States Bankruptcy Court for the year ended December 31, 2016. Under this standard, the Company is required to evaluate whether there is substantial doubt about its ability to continue as a going concern each reporting period, including interim periods.

In evaluating the Company’s ability to continue as a going concern, management considered the conditions and events that could raise substantial doubt about the Company’s ability to continue as a going concern for 12 months following the date the Company’s financial statements were issued (November 8, 2017). Management considered the Company’s current financial condition and liquidity sources, including current funds available, forecasted future cash flows and the Company’s conditional and unconditional obligations due before November 8, 2018.

AsSouthern District of ~~September 30, 2017, the Company had $286.4 million of cash and cash equivalents on its balance sheet, including $222.4 million of cash and cash equivalents held by the Company's subsidiary,~~Texas, Houston Division (the "Bankruptcy Court"). Clear Channel Outdoor Holdings, Inc. ~~("CCOH"~~(“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). ~~As of September 30, 2017,~~The Debtors are operating their businesses as “debtors-in-possession” under the Company had $85.0 million of excess availability under iHeartCommunications' receivables-based credit facility, subject to limitations in iHeartCommunications' material financing agreements. A substantial amountjurisdiction of the ~~Company's cash requirements are for debt service obligations. Although~~Bankruptcy Court and in accordance with the ~~Company has generated operating income in excess of $1.0 billion in each~~applicable provisions of the ~~years ended December~~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”) through a plan of reorganization in the Chapter 11 Cases, which plan was confirmed in January 2019. 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, ~~2016~~2018, which deadline was subsequently extended to June 22, 2018, and ~~2015,~~which motion was filed with the ~~Company incurred net losses~~Bankruptcy Court on that date, (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), which order was ultimately entered on September 20, 2018, (iv) the entry of an order confirming the plan of reorganization within 75 days of the entry of an order approving the disclosure statement, which order was ultimately entered on January 22, 2019 and ~~had negative cash flows from operations for each~~(v) the effective date of ~~these years~~the plan of reorganization (the "Effective Date") occurring by March 14, 2019, which has not yet occurred but is currently expected to occur on or about May 1, 2019. The Debtors satisfied the first and second milestones, but did not satisfy the subsequent milestones and as a result, of significant cash interest payments arising from the Company's substantial debt balance. For the nine months ended September 30, 2017, the Company used cash of $558.7 million for operating activities, which included cash paid for interest of $1,426.4 million. The Company's current forecast indicates it will continue to incur net losses and generate negative cash flows from operating activities as a resultcertain of the ~~Company's indebtedness and significant related interest expense. At September 30, 2017,~~Consenting Stakeholders presently have the ~~Company had debt maturities totaling $366.9 million, $308.5 million (net~~right to terminate the RSA, but as of $277.1 million due to certain of our subsidiaries) and $8,368.9 million in 2017, 2018 and 2019, respectively. In October 2017, iHeartCommunications exchanged $45.0 million principal amount of 11.25% Priority Guarantee Notes due 2021 that were held by a subsidiary of iHeartCommunications for $45.0 million principal amount of 10.0% Senior Notes due 2018 that were held by unaffiliated third parties. After the ~~exchanges,~~date hereof, the Company's debt maturities in the next 12 months include, (i) $365.0 million outstanding under iHeartCommunications' receivables-based credit facility, which matures on December 24, 2017, (ii) $51.5 million of 10% Senior Notes due January 15, 2018, (iii) $175.0 million of 6.875% Senior Notes due June 15, 2018 and (iv) $24.8RSA has not been terminated.

IHEARTMEDIA, INC. AND SUBSIDIARIES (DEBTOR-IN-POSSESSION)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

million of contractual AHYDO catch-up payments to be made on iHeartCommunications' 14% Senior Notes due 2021 on the interest payment due on August 1, 2018. The Company's forecast includes approximately $1.8 billion in cash interest paymentsiHeartCommunications, which is a Debtor in the ~~next 12 months, of which $344.6 million is payable~~Chapter 11 Cases, provides the day-to-day cash management services for CCOH’s cash activities and balances in the quarter ended December 31, 2017 and $548.2 million is payable in the first quarter of 2018. In addition, in certain circumstances, a committee of the CCOH board of directors formed for the specific purpose of monitoring the Intercompany Note (the “CCOH Intercompany Note Committee”) has the non-exclusive authority to demand payments under the Intercompany Note, as long as the CCOH board of directors declares a simultaneous dividend equal to the amount so demanded. As of November 8, 2017, the CCOH Intercompany Note Committee has the rightU.S. pursuant to the ~~terms~~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 ~~settlement~~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 ~~derivative litigation filed~~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 2019 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 ~~CCOH’s stockholders regarding~~ the ~~Intercompany Note but not the obligation, to make a demand~~Chapter 11 Cases have been classified on the ~~Intercompany Note. If~~Consolidated Balance Sheet at March 31, 2019 as Liabilities subject to compromise. These liabilities are reported at the ~~CCOH Intercompany Note Committee exercises this right to demand a full repayment of~~amounts the ~~Intercompany Note~~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 ~~CCOH board~~date of ~~directors declares~~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 ~~simultaneous dividend, based on~~separate line item in the ~~balance~~Consolidated Balance Sheet called, "Liabilities subject to compromise"; and

Segregation of Reorganization items, net as a separate line in the ~~Intercompany Note outstanding at September 30, 2017, approximately $110.4 million would be payable to the public stockholders~~Consolidated Statement of ~~CCOH. If the Company is unable to refinance the amounts outstanding~~Comprehensive Loss, outside of income from continuing operations.

Debtor-In-Possession

In general, as debtors-in-possession under the ~~receivables-based credit facility,~~Bankruptcy Code, the ~~10% Senior Notes due January 15, 2018, and/or the 6.875% Senior Notes due June 15, 2018 and take other steps~~Debtors are authorized to ~~create additional liquidity, forecasted cash flows are~~continue to operate as an ongoing business, but may not ~~sufficient for the Company to meet its obligations, including upcoming interest payments and maturities on the Company's outstanding debt, as they become due~~engage in transactions outside the ordinary course of business ~~for a period~~without the prior approval of ~~12 months following November 8, 2017. As discussed below,~~ the ~~Company has plans~~Bankruptcy Court. Pursuant to ~~reduce its principal~~first day and ~~interest obligations and~~second day motions filed with the Bankruptcy Court, the Bankruptcy Court authorized the Debtors to ~~create additional liquidity.~~

The Company is in advanced negotiations with potential lenders to refinance the amounts outstanding under iHeartCommunications' receivables-based credit facility and currently expects to refinance the amounts outstanding under that facility prior to its maturity. In addition, management is taking actions to maximize cash available to meet the Company’s obligations as they become dueconduct their business activities in the ordinary course, ~~of business. In addition, as more fully described in Note 3, the Company launched notes exchange offers~~including, among other things and term loan offers in March 2017, which notes exchange offers and term loan offers remain open as of November 8, 2017. The Company has engaged in discussions with many of its lenders and noteholders regardingsubject to the terms and conditions of such orders, authorizing the ~~global exchange offers~~Debtors to: (i) pay employees’ wages and ~~term loan offers, which have been revised since launch~~related obligations; (ii) continue to operate their cash management system in a form substantially similar to prepetition practice; (iii) use cash collateral on an interim basis; (iv) continue to honor certain obligations related to on-air talent, station affiliates and ~~remain subject~~royalty obligations; (v) continue to ~~substantial further revision, but no agreement has been reached~~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 Chapter 11 Cases 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 ~~those discussions and~~pre-petition claims. Absent an order from the ~~discussions remain ongoing. These actions are intended to mitigate those conditions which raise substantial doubt~~Bankruptcy Court, substantially all of the ~~Company’s ability~~Debtors’ pre-petition liabilities are subject to ~~continue~~settlement under the Bankruptcy Code. See Note 14, 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 ~~going concern~~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 ~~a period within 12 months following November 8, 2017.~~

~~While~~damages caused by such deemed breach. Generally, the ~~Company continues~~assumption of an executory contract or unexpired lease requires the Debtors to ~~work toward completing the notes exchange offers~~cure existing monetary defaults under such executory contract or unexpired lease and ~~the term loan offers~~provide adequate assurance of future performance. Accordingly, any description of an executory contract or other similar transactions, refinancing the amounts outstanding under the receivables-based credit facility and taking other actions to create additional liquidity, there is no assurance that the notes exchange offers and the term loan offers or other similar transactions, will be completed, that the amount outstanding under the receivables-based credit facility will be refinanced or that the Company will be able to create additional liquidity. The Company’s ability to meet its obligations as they become due in the ordinary course of business for the next 12 months will depend on its ability to achieve forecasted results, its ability to conserve cash, its ability to refinance the amounts outstanding under iHeartCommunications' receivables-based credit facility, its ability to successfully complete the notes exchange offers and the term loan offers or other similar transactions and achieve sufficient cash interest savings therefrom and its ability to complete other liquidity-generating transactions. Based on the uncertainty of achieving these actions and the significance of the forecasted future negative cash flows resulting from the Company's substantial debt balance, including anticipated future cash interest payments (including interest due in the fourth quarter of 2017 and in 2018) and the maturities of the $365.0 million in current borrowings under iHeartCommunications' receivables-based credit facility that matures December 24, 2017, the $51.5 million aggregate principal amount of 10% Senior Notes due January 15, 2018, the $175.0 million aggregate principal amount of 6.875% Senior Notes due June 15, 2018 and the $24.8 million of contractual AHYDO catch-up payments to be made on iHeartCommunications' 14% Senior Notes due 2021 beginningunexpired lease with the ~~interest payment due on August 1, 2018, management has determined that there is substantial doubt as to the Company’s ability to continue as~~Debtors in this document, including where applicable a ~~going concern for a period of 12 months following November 8, 2017.~~

IHEARTMEDIA, INC. AND SUBSIDIARIES (DEBTOR-IN-POSSESSION)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

~~New Accounting Pronouncements~~

~~During the third quarter of 2015, the FASB issued ASU 2015-14,~~ ~~Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date. This update provides a one-year deferral of the effective date for ASU No. 2014-09,~~ ~~Revenue from Contracts with Customers~~. ASU No. 2014-09 provides guidance for the recognition, measurement and disclosure of revenue resulting from contracts with customers and will supersede virtually all of the current revenue recognition guidance under U.S. GAAP. The standard is effective for the first interim period within annual reporting periods beginning after December 15, 2017. The two permitted transition methods under the new standard are the full retrospective method, in which case the standard would be applied to each prior reporting period presented and the cumulative effect of applying the standard would be recognized at the earliest period shown, or the modified retrospective method, in which case the cumulative effect of applying the standard would be recognized at the date of initial application. The Company expects to utilize the full retrospective method. The Company has substantially completed its evaluation of the potential changes from adopting the new standard on its future financial reporting and disclosures, which included reviews of contractual terms for allquantification of the Company’s ~~significant revenue streams~~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 4,300proofs of claim as of April 22, 2019 for an amount of approximately $808.4 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 2,000 claims totaling approximately $7.0 billion have been disallowed, modified or withdrawn and the ~~development of an implementation plan.~~Debtors have filed additional claim objections with the Bankruptcy Court for approximately 50 claims totaling approximately $0.6 million in additional reductions and modifications. The Company ~~continues~~may ask the Bankruptcy Court to ~~execute on its implementation plan, including detailed policy drafting and training of segment personnel. Based on its evaluation,~~disallow claims that the Company ~~does not expect material changes to its 2016~~believes have been later amended or ~~2017 consolidated revenues, operating income~~superseded, are without merit, are overstated or ~~balance sheets~~should be disallowed for other reasons. In addition, as a result of this process, the ~~implementation~~Company may identify additional liabilities that will need to be recorded or reclassified to Liabilities subject to compromise. In light of ~~this standard.~~the substantial number of claims filed, and expected to be filed, the claims resolution process may take considerable time to complete and will continue after the Debtors emerge from bankruptcy.

Reorganization Items, Net

~~During~~The Debtors have incurred and will continue to incur significant costs associated with the ~~first quarter~~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 Loss for the three months ended March 31, 2019 and 2018. See Note 13, Reorganization Items, Net.

Financial Statement Classification of Liabilities Subject to Compromise

The accompanying Consolidated Balance Sheets as of March 31, 2019 and December 31, 2018 include 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 12, 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. Thereafter, the Debtors filed a second, third and fourth amended Plan of Reorganization and amended versions of the Disclosure Statement. 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. On October 10, 2018, the Debtors filed a fifth amended Plan of Reorganization and 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. The deadline for holders of claims and interests to vote on the Plan of Reorganization was November 16, 2018. More than 90% of the votes cast by holders of claims and interests entitled to vote thereon accepted the Plan of Reorganization.

On December 16, 2018, the Debtors, CCOH, GAMCO Asset Management, Inc., and Norfolk County Retirement System entered into the CCOH Separation Settlement (as defined below) resolving all claims, objections, and other causes of action that have

IHEARTMEDIA, INC. AND SUBSIDIARIES (DEBTOR-IN-POSSESSION)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

been or could be asserted by or on behalf of CCOH, GAMCO Asset Management, Inc., and/or Norfolk County Retirement System by and among the Debtors, CCOH, GAMCO Asset Management, Inc., certain individual defendants in the GAMCO Asset Management, Inc. action and/or the Norfolk County Retirement System action, and the private equity sponsor defendants in such actions. In connection with the CCOH Separation Settlement, on December 17, 2018, the Debtors filed a modified fifth amended Plan of Reorganization. On January 10, 2019, hearings commenced to consider confirmation of the Plan of Reorganization. On January 17, 2019, the Debtors came to agreement on the terms of the Legacy Plan Settlement (as defined below) with 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 (together with the 5.50% Senior Notes due 2016, the ~~FASB issued~~“Legacy Notes”), and not in its individual capacity, and certain consenting Legacy Noteholders of all issues related to confirmation of our plan of reorganization, and on January 21, 2019 and January 22, 2019, the Debtors filed further modified versions of the fifth amended Plan of Reorganization. On January 22, 2019, the Bankruptcy Court entered an order confirming the Plan of Reorganization.

The Plan of Reorganization contemplates a restructuring of the Debtors that will reduce iHeartCommunications’ debt from approximately $16 billion to approximately $5.8 billion, and will result in the separation of CCOH from the Company, creating two independent companies.

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.

Restricted Cash

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)	March 31, 2019		December 31, 2018
Cash and cash equivalents	$	448,130	$	406,493
Restricted cash included in:
Other current assets	7,493		7,649
Other assets	13,965		16,192
Total cash, cash equivalents and restricted cash in the Statement of Cash Flows	$	469,588	$	430,334

New Accounting Pronouncements Recently Adopted

Leases

The Company adopted ASU No. 2016-02, which created ASC 842, Leases ~~(Topic 842)~~, and all subsequent ASUs relating to this Topic, as of January 1, 2019 (collectively, "ASC 842"). ~~The~~This new ~~leasing~~lease accounting standard, ~~presents~~which supersedes previous lease accounting guidance under U.S. GAAP, results in significant changes to the balance sheets of ~~lessees.~~lessees, most significantly by requiring the recognition of a right-of-use ("ROU") asset and lease liability by lessees for those leases classified as operating leases. Lessor

IHEARTMEDIA, INC. AND SUBSIDIARIES (DEBTOR-IN-POSSESSION)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

accounting is also updated to align with certain changes in the lessee model and the ~~new~~ revenue recognition standard ("ASC Topic 606"), which was ~~issued~~adopted in ~~the third quarter of 2015. The standard is effective for annual periods, and for interim periods within those annual periods, beginning after December 15,~~ 2018.

The Company ~~is currently evaluating~~applied the ~~impact of the~~transition provisions of this standard at January 1, 2019 following the optional transition method provided by ASU No. 2018-11; consequently, the consolidated financial statements and notes to the consolidated financial statements for periods before the date of adoption continue to be presented in accordance with ASC Topic 840. In addition, the Company elected the package of practical expedients permitted under the transition guidance within the new standard, which allowed us to not reassess whether expired or existing contracts are or contain leases and to carry forward the historical lease classification for those leases that commenced prior to the date of adoption.

Upon adoption of ASC 842, prepaid and deferred rent balances, which were historically presented separately, were combined and presented net within the ROU asset. Additionally, deferred gains related to previous transactions that were historically accounted for as sale and operating leasebacks in accordance with ASC Topic 840 were recognized as a cumulative-effect adjustment to equity, resulting in an increase to equity, net of tax, of $128.9 million. Under ASC Topic 840, such gains were recognized ratably over the lease term as a credit to operating lease expense, and operating lease expense for the three months ended March 31, 2018 included a credit of $1.5 million for the amortization of these gains, which was not recognized in the three months ended March 31, 2019.

Adoption of the new standard had a material impact on ~~its~~our consolidated balance sheets, but it did not have a material impact on our other consolidated financial statements. Additionally, the standard requires disclosures to meet the objective of enabling users of the financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. Refer to Note 2, Revenue, and Note 3, Leases, for more information.

Intangible Assets and Goodwill

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~~early adopted the proposed guidance under ASU 2017-04 beginning on January 1, 2019 on a prospective basis. The implementation of ASU 2017-04 did not have a material impact ~~of the provisions of this new standard~~ on ~~its~~our consolidated financial ~~statements.~~statements and related disclosures.

During the ~~second~~third quarter of ~~2017,~~2018, the FASB issued ASU ~~2017-09,~~2018-15, ~~Compensation~~Intangibles - ~~Stock Compensation (Topic 718)~~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 mandates that entities will apply the modification accounting guidance if the value, vesting conditions or classification of a stock-based award changes. Entities will have to make all of the disclosures about modifications that are required today, in addition to disclosing that compensation expense hasn't changed. Additionally, the new guidance also clarifiesrequires that a ~~modification~~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 ~~an award could be significant and therefore require disclosure, even if the modification accounting is not required.~~determine which implementation costs to capitalize as assets. The ~~guidance will be applied prospectively to awards modified on or after the adoption date and~~standard is effective for ~~annual periods, and interim periods within those annual periods,~~fiscal years beginning after December 15, ~~2017.~~2019. The Company ~~is currently evaluating~~early adopted the proposed guidance under ASU 2017-04 beginning on January 1, 2019 on a prospective basis. The implementation of ASU 2017-04 did not have a material impact ~~of the provisions of this new standard~~ on ~~its~~our consolidated financial ~~statements.~~statements and related disclosures.

NOTE 2 – REVENUE

The Company generates revenue from several sources:

The primary source of revenue in the iHM segment is the sale of local and national advertising on the Company’s broadcast radio stations, its iHeartRadio digital platforms, station websites, sponsorships and live events. This segment also generates revenues from traffic and weather data, syndicated content, 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.

IHEARTMEDIA, INC. AND SUBSIDIARIES (DEBTOR-IN-POSSESSION)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

Trade and Barter

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. Trade and barter revenues and expenses from continuing operations, which are included in consolidated revenue and selling, general and administrative expenses, respectively, were as follows:



	Three Months Ended March 31,
(In thousands)	2019		2018
Consolidated:
Trade and barter revenues	$	59,382	$	57,392
Trade and barter expenses	51,928		68,277

iHM Segment:
Trade and barter revenues	$	55,585	$	53,946
Trade and barter expenses	49,856		64,532

Lease Revenue Considerations in Outdoor Segments

Certain of the revenue transactions in the Americas outdoor and International outdoor segments are considered leases, for accounting purposes, as the contracts convey to customers the right to control the use of the Company’s advertising displays for a period of time. These contracts, which typically cover periods of a few weeks to one year (although there are some with longer terms), are generally cancelable after a specified notice period in the Americas outdoor segment, while contracts in the International outdoor segment are generally non-cancelable or require the customer to pay a fee to terminate the contract. To qualify as a lease, fulfillment of the contract must be dependent upon the use of a specified advertising structure, the customer must have almost exclusive use of the advertising display throughout the contract term, and, upon adoption of the new leases standard (ASC 842) on January 1, 2019, the customer must also have the right to change the advertisement that is displayed throughout the contract term.

The Company has elected a practical expedient to not separate non-lease components from associated lease components if certain criteria are met. As such, each right to control the use of an advertising display that meets the lease criteria is combined with the related installation and maintenance services provided under the contract into a single lease component. Production services, which do not meet the criteria to be combined, and each advertising display that does not meet the lease criteria (along with any related installation and maintenance services) are non-lease components. Consideration in outdoor advertising contracts is allocated between lease and non-lease components in proportion to their relative standalone selling prices, which are generally approximated by the contractual prices for each promised service. The Company accounts for revenue from leases, which are all classified as operating leases, in accordance with the lease accounting guidance (ASC Topic 840 or ASC Topic 842, depending on the advertising campaign start date), while the Company’s remaining revenue transactions are accounted for as revenue from contracts with customers (ASC Topic 606).

In accordance with the transition approach that the Company elected to adopt ASC Topic 842, as described in Note 1, revenue contracts with campaign start dates prior to January 1, 2019 were not reassessed to determine whether they qualify as a lease under the requirements of the new leasing standard. Instead, they continue to be accounted for as revenue from contracts with customers or revenue from leases based on the requirements of the previous standard (ASC Topic 840), and the new requirements have been applied to revenue contracts with campaign start dates on or after January 1, 2019. Because the definition of a lease is more restrictive under the new standard, fewer of our new outdoor advertising contracts meet the definition of a lease for accounting purposes, resulting in an increase in the percentage of revenue that is categorized as revenue from contracts with customers as compared to the prior year.

IHEARTMEDIA, INC. AND SUBSIDIARIES (DEBTOR-IN-POSSESSION)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

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 months ended March 31, 2019 and 2018:



(In thousands)	iHM		Americas Outdoor⁽¹⁾		International Outdoor⁽¹⁾		Other		Eliminations			Consolidated
Three Months Ended March 31, 2019
Revenue from contracts with customers:
United States	$	759,400	$	131,431	$	—	$	30,190	$	(269	)	$	920,752
Other Americas	1,027		896		13,645		—		—			15,568
Europe	2,351		—		201,205		—		—			203,556
Asia-Pacific and other	2,622		—		53,231		—		—			55,853
Total	765,400		132,327		268,081		30,190		(269		)	1,195,729
Revenue from leases	410		140,395		46,313		—		(948		)	186,170
Revenue, total	$	765,810	$	272,722	$	314,394	$	30,190	$	(1,217	)	$	1,381,899

Three Months Ended March 31, 2018
Revenue from contracts with customers:
United States	$	736,940	$	96,147	$	—	$	28,218	$	(313	)	$	860,992
Other Americas	1,180		650		12,123		—		—			13,953
Europe	2,601		—		187,216		—		—			189,817
Asia-Pacific and other	2,957		—		3,012		—		—			5,969
Total	743,678		96,797		202,351		28,218		(313		)	1,070,731
Revenue from leases	890		159,050		140,200		—		(1,223		)	298,917
Revenue, total	$	744,568	$	255,847	$	342,551	$	28,218	$	(1,536	)	$	1,369,648


⁽¹⁾	All of the Company’s outdoor advertising structures, which may be owned or leased, 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 Company’s beginning and ending accounts receivable and deferred revenue balances from contracts with customers:



	Three Months Ended March 31,
(In thousands)	2019		2018
Accounts receivable, net of allowance, from contracts with customers:
Beginning balance	$	1,236,779	$	1,195,145
Ending balance	$	1,169,518	$	1,035,939

Deferred revenue from contracts with customers:
Beginning balance	$	188,604	$	184,000
Ending balance	$	212,286	$	211,582

During the three months ended March 31, 2019 and 2018, respectively, the Company recognized $97.3 million and $83.3 million of revenue that was included in the deferred revenue from contracts with customers balance at the beginning of the period.

The Company’s contracts with customers generally have terms of one year or less; however, as of March 31, 2019, the Company expects to recognize $316.7 million of revenue in future periods for remaining performance obligations from current contracts

IHEARTMEDIA, INC. AND SUBSIDIARIES (DEBTOR-IN-POSSESSION)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

with customers that have an original expected duration 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.

Revenue from Leases

As of March 31, 2019, the future lease payments to be received by the Company are as follows:



(In thousands)
2019	$	397,444
2020	48,769
2021	19,832
2022	10,505
2023	3,138
Thereafter	15,432
Total	$	495,120

Note that the future lease payments disclosed are limited to the non-cancelable period of the lease and, for contracts that require the customer to pay a significant fee to terminate the contract such that the customer is considered reasonably certain not to exercise this option, periods beyond the termination option. Payments scheduled for periods beyond a termination option are not included for contracts that allow cancellation by the customer without a significant fee.

NOTE 3 – LEASES

The Company enters into operating lease contracts for land, buildings, structures and other equipment. Arrangements are evaluated at inception to determine whether such arrangements contain a lease. Operating leases include land lease contracts, radio towers and contracts for the use of space on floors, walls and exterior locations on buildings. Arrangements in which wall space is used are considered to be lease contracts if all other required elements of a lease contract are present. The Company assessed certain international transit contracts under ASC 842, which historically were determined to be leases, and concluded that the arrangements did not meet the definition of leases under the new leasing standard. In accordance with the transition guidance of ASC 842, such arrangements are included in the Company’s balance sheet as of January 1, 2019. The majority of the Company's transit contracts do not meet the definition of a lease due to substantive substitution rights within those contracts. Arrangements to lease building space consist primarily of the rental of office space, but may also include leases of other equipment, including automobiles and copiers. Operating leases are reflected on the Company's balance sheet within Operating lease right-of-use assets and the related short-term and long-term liabilities are included within Current and Noncurrent operating lease liabilities, respectively. As of March 31, 2019, a portion of the Company's operating lease liabilities relate to lease contracts entered into prior to the Petition Date. As such, these liabilities are included within Liabilities subject to compromise. See Note 12 - Liabilities Subject to Compromise for more information.

The Company's finance leases are included within Property, plant and equipment with the related liabilities included within Long-term debt or within Liabilities subject to compromise.

ROU assets represent the right to use an underlying asset for the lease term, and lease liabilities represent the obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the respective lease term. Lease expense is recognized on a straight-line basis over the lease term.

Certain of the Company's operating lease agreements include rental payments based on a percentage of revenue and others include rental payments adjusted periodically for inflationary changes. Percentage rent contracts, in which lease expense is calculated as a percentage of advertising revenue, and payments due to changes in inflationary adjustments are included within variable rent expense, which is accounted for separately from periodic straight-line lease expense. Amounts related to insurance and property taxes in lease arrangements when billed on a pass-through basis are allocated to the lease and non-lease components of the lease based on their relative standalone selling prices. Internationally, the Company is commonly assessed VAT on its contracts, which is treated as a nonlease component.

IHEARTMEDIA, INC. AND SUBSIDIARIES (DEBTOR-IN-POSSESSION)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

Many operating lease contracts expire; however, the Company may continue to operate the leased assets after the rights and obligations of the lease agreements have expired. Such contracts, once expired, are not considered to be leases and future expected payments are not included in operating lease liabilities or ROU assets. Many of the Company's leases entered into in connection with advertising structures provide options to extend the terms of the agreements. Generally, renewal periods are excluded from minimum lease payments when calculating the lease liabilities as, for most leases, the Company does not consider exercise of such options to be reasonably certain. As a result, unless a renewal option is considered reasonably assured, the optional terms and related payments are not included within the lease liability. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants.

The implicit rate within the Company's lease agreements is generally not determinable. As such, the Company uses the incremental borrowing rate ("IBR") to determine the present value of lease payments at the commencement of the lease. The IBR, as defined in ASC 842, is "the rate of interest that a lessee would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment."

IHEARTMEDIA, INC. AND SUBSIDIARIES (DEBTOR-IN-POSSESSION)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

The following table provides the components of lease expense included within the Consolidated Statement of Comprehensive Loss for the three months ended March 31, 2019:



(In thousands)	Three Months Ended March 31, 2019
Operating lease expense	$	168,461
Variable lease expense	31,891

The following table provides the weighted average remaining lease term and the weighted average discount rate for the Company's leases as of March 31, 2019. The weighted average discount rate is affected by the operating leases entered into by the iHM entities, which are Debtors in the Chapter 11 Cases.



	March 31, 2019
Operating lease weighted average remaining lease term (in years)	10.0
Operating lease weighted average discount rate	12.44	%

As of March 31, 2019, the Company’s future maturities of operating lease liabilities were as follows:



(In thousands)
2019	$	471,907
2020	550,241
2021	474,264
2022	387,920
2023	321,722
Thereafter	2,153,963
Total lease payments	$	4,360,017
Less: Effect of discounting	1,894,444
Total operating lease liability	$	2,465,573

The following table provides supplemental cash flow information related to leases:



(In thousands)	Three Months Ended March 31, 2019

Cash paid for amounts included in measurement of operating lease liabilities	$	189,472
Lease liabilities arising from obtaining right-of-use assets¹	$	2,565,084

¹Lease liabilities from obtaining right-of-use assets include transition liabilities upon adoption of ASC 842, as well as new leases entered into during the three months ended March 31, 2019.

IHEARTMEDIA, INC. AND SUBSIDIARIES (DEBTOR-IN-POSSESSION)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

NOTE 24 – PROPERTY, PLANT AND EQUIPMENT, INTANGIBLE ASSETS AND GOODWILL

~~Dispositions~~

In January 2017, Americas outdoor sold its Indianapolis, Indiana market to Fairway Media Group, LLC in exchange for certain assets in Atlanta, Georgia with a fair value of $39.4 million, plus $43.1 million in cash, net of closing costs. The assets acquired as part of the transaction consisted of $9.9 million in fixed assets and $29.5 million in intangible assets (including $2.3 million in goodwill). The Company recognized a net gain of $28.9 million related to the sale, which is included within Other operating income (expense), net.

During the third quarter of 2017, Americas outdoor sold its ownership interest in a joint venture in Canada. As a result, the Company recognized a net loss on sale of $12.1 million, including a $6.3 million cumulative translation adjustment, which is included within Other operating income (expense), net.

Property, Plant and Equipment

The Company’s property, plant and equipment consisted of the following classes of assets as of ~~September 30, 2017~~March 31, 2019 and December 31, ~~2016,~~2018, respectively:


(In thousands)	September 30, 2017		December 31, 2016		March 31, 2019		December 31, 2018
Land, buildings and improvements	$	578,054	$	570,566	$	572,362	$	572,904
Structures	2,807,023		2,684,673		2,833,051		2,835,411
Towers, transmitters and studio equipment	356,222		350,760		366,500		365,991
Furniture and other equipment	689,227		622,848		818,278		793,756
Construction in progress	93,850		91,655		112,442		116,839
	4,524,376		4,320,502		4,702,633		4,684,901
Less: accumulated depreciation	2,636,313		2,372,340		2,961,395		2,893,761
Property, plant and equipment, net	$	1,888,063	$	1,948,162	$	1,741,238	$	1,791,140

Indefinite-lived Intangible Assets

The Company’s indefinite-lived intangible assets consist of Federal Communications Commission (“FCC”) broadcast licenses in its iHM segment and billboard permits in its Americas outdoor advertising segment. Due to significant differences in both business practices and regulations, billboards in the International outdoor segment are subject to long-term, finite contracts unlike the Company’s permits in the United ~~States and Canada.~~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 goodwill and indefinite-lived intangible assets, including Federal Communication Commission ("FCC") licenses, as of July 1 of each year.

~~The impairment~~ In addition, the Company tests for ~~indefinite-lived~~impairment of intangible assets ~~consist~~whenever events and circumstances indicate that such assets might be impaired. During the three months ended March 31, 2019, the Company recognized non-cash impairment charges of $91.4 million in relation to indefinite-lived FCC licenses as a ~~comparison between the fair value~~result 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 itincrease in the ~~development~~Company's weighted average cost 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

~~IHEARTMEDIA, INC. AND SUBSIDIARIES~~

~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS~~

~~(UNAUDITED)~~

~~“normalized” residual year which represents the perpetual cash flows of each market. The residual year cash flow was capitalized to arrive at the terminal value of the licenses in each market.~~

Under the direct valuation method, it is assumed that rather than acquiring indefinite-lived intangible assets as part of a going concern business, the buyer hypothetically develops indefinite-lived intangible assets and builds a new operation with similar attributes from scratch. Thus, the buyer incurs start-up costs during the build-up phase which are normally associated with going concern value. Initial capital costs are deducted from the discounted cash flow model which results in value that is directly attributable to the indefinite-lived intangible assets.

The key assumptions using the direct valuation method are market revenue growth rates, market share, profit margin, duration and profile of the build-up period, estimated start-up capital costs and losses incurred during the build-up period, the risk-adjusted discount rate and terminal values. This data is populated using industry normalized information representing an average FCC license or billboard permit within a market.

The Company recognized impairment charges related to its indefinite-lived intangible assets within one iHM radio market of $6.0 million during the three and nine months ended September 30, 2017. The Company recognized impairment charges related to its indefinite-lived intangible assets of $0.7 million during the three and nine months ended September 30, 2016.capital.

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~~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 amortized cost.

IHEARTMEDIA, INC. AND SUBSIDIARIES (DEBTOR-IN-POSSESSION)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

The following table presents the gross carrying amount and accumulated amortization for each major class of other intangible assets as of ~~September 30, 2017~~March 31, 2019 and December 31, ~~2016,~~2018, respectively:


(In thousands)	September 30, 2017					December 31, 2016					March 31, 2019					December 31, 2018
	Gross Carrying Amount		Accumulated Amortization			Gross Carrying Amount		Accumulated Amortization			Gross Carrying Amount		Accumulated Amortization			Gross Carrying Amount		Accumulated Amortization
Transit, street furniture and other outdoor contractual rights	$	587,099	$	(469,982	)	$	563,863	$	(426,752	)	$	528,232	$	(443,963	)	$	528,185	$	(440,228	)
Customer / advertiser relationships	1,222,518		(1,103,001		)	1,222,519		(1,012,380		)	1,237,115		(1,210,498		)	1,249,128		(1,208,056		)
Talent contracts	319,384		(292,932		)	319,384		(281,060		)	164,932		(150,289		)	164,933		(148,578		)
Representation contracts	253,350		(236,157		)	253,511		(229,413		)	77,508		(72,419		)	77,508		(70,829		)
Permanent easements	162,920		—			159,782		—			163,341		—			163,317		—
Other	390,302		(237,214		)	390,171		(219,117		)	394,923		(249,018		)	382,897		(244,993		)
Total	$	2,935,573	$	(2,339,286	)	$	2,909,230	$	(2,168,722	)	$	2,566,051	$	(2,126,187	)	$	2,565,968	$	(2,112,684	)

Total amortization expense related to definite-lived intangible assets for the three months ended ~~September 30, 2017~~March 31, 2019 and ~~2016~~2018 was ~~$49.5~~$13.9 million and ~~$55.6~~$47.0 million, respectively. ~~Total amortization expense related to definite-lived intangible assets for the nine months ended September 30, 2017 and 2016 was $148.2 million and $167.7 million, respectively.~~

~~IHEARTMEDIA, INC. AND SUBSIDIARIES~~

~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS~~

~~(UNAUDITED)~~

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)
2018	$	127,795
2019	44,958
2020	38,326		$	43,788
2021	34,815		38,457
2022	30,007		32,707
2023			24,849
2024			20,983

Goodwill

~~Annual Impairment Test to Goodwill~~

~~The Company performs its annual impairment test on goodwill as of July 1 of each year.~~

Each of the U.S. radio markets and outdoor advertising markets are components of the Company. The U.S. radio markets are aggregated into a single reporting unit and the U.S. outdoor advertising markets are aggregated into a single reporting unit for purposes of the goodwill impairment test using the guidance in ASC 350-20-55. The Company also determined that each country within its Americas outdoor segment and International outdoor segment constitutes a separate reporting unit.

The goodwill impairment test is a two-step process. The first step, used to screen for potential impairment, compares the fair value of the reporting unit with its carrying amount, including goodwill. If applicable, the second step, used to measure the amount of the impairment loss, compares the implied fair value of the reporting unit goodwill with the carrying amount of that goodwill.

Each of the Company’s reporting units is valued using a discounted cash flow model which requires estimating future cash flows expected to be generated from the reporting unit and discounting such cash flows to their present value using a risk-adjusted discount rate. Terminal values were also estimated and discounted to their present value. Assessing the recoverability of goodwill requires the Company to make estimates and assumptions about sales, operating margins, growth rates and discount rates based on its budgets, business plans, economic projections, anticipated future cash flows and marketplace data. There are inherent uncertainties related to these factors and management’s judgment in applying these factors.

The Company recognized goodwill impairment of $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 Company recognized goodwill impairment of $7.3 million during the three and nine months ended September 30, 2016 related to one market in the Company's International outdoor segment.

~~IHEARTMEDIA, INC. AND SUBSIDIARIES~~

~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS~~

~~(UNAUDITED)~~

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 Advertising International Outdoor Advertising Other Consolidated
Balance as of December 31, 2015 $ 3,288,481
$ 534,683
$ 223,892
$ 81,831
$ 4,128,887
Impairment —
—
(7,274 ) —
(7,274 )
Dispositions —
(6,934 ) (30,718 ) —
(37,652 )
Foreign currency —
(1,998 ) (5,051 ) —
(7,049 )
Assets held for sale —
(10,337 ) —
—
(10,337 )
Balance as of December 31, 2016 $ 3,288,481
$ 515,414
$ 180,849
$ 81,831
$ 4,066,575
Impairment —
—
(1,591 ) —
(1,591 )
Acquisitions —
2,252
—
—
2,252
Dispositions —
—
(1,817 ) —
(1,817 )
Foreign currency —
654
17,427
—
18,081
Assets held for sale —
89
—
—
89
Balance as of September 30, 2017 $ 3,288,481
$ 518,409
$ 194,868
$ 81,831
$ 4,083,589



(In thousands)	iHM			Americas Outdoor		International Outdoor			Other		Consolidated
Balance as of December 31, 2017	$	3,255,208		$	507,819	$	206,224		$	81,831	$	4,051,082
Acquisitions	77,320			—		—			—		77,320
Dispositions	(1,606		)	—		—			—		(1,606		)
Foreign currency	—			—		(8,040		)	—		(8,040		)
Balance as of December 31, 2018	$	3,330,922		$	507,819	$	198,184		$	81,831	$	4,118,756
Acquisitions	2,767			—		—			—		2,767
Foreign currency	(27		)	—		(3,184		)	—		(3,211		)
Balance as of March 31, 2019	$	3,333,662		$	507,819	$	195,000		$	81,831	$	4,118,312

~~NOTE 3 – LONG-TERM DEBT~~

~~Long-term debt outstanding as of September 30, 2017 and December 31, 2016 consisted of the following:~~

(In thousands) September 30,
2017 December 31,
2016
Senior Secured Credit Facilities⁽¹⁾
$ 6,300,000
$ 6,300,000
Receivables Based Credit Facility Due 2017⁽²⁾
365,000
330,000
9.0% Priority Guarantee Notes Due 2019 1,999,815
1,999,815
9.0% Priority Guarantee Notes Due 2021 1,750,000
1,750,000
11.25% Priority Guarantee Notes Due 2021 825,546
575,000
9.0% Priority Guarantee Notes Due 2022 1,000,000
1,000,000
10.625% Priority Guarantee Notes Due 2023 950,000
950,000
Subsidiary Revolving Credit Facility Due 2018⁽³⁾
—
—
Other secured subsidiary debt⁽⁴⁾
8,681
20,987
Total consolidated secured debt 13,199,042
12,925,802

14.0% Senior Notes Due 2021⁽⁵⁾
1,763,925
1,729,168
Legacy Notes⁽⁶⁾
475,000
475,000
10.0% Senior Notes Due 2018 96,482
347,028
Subsidiary Senior Notes due 2022 2,725,000
2,725,000
Subsidiary Senior Subordinated Notes due 2020 2,200,000
2,200,000
Clear Channel International B.V. Senior Notes due 2020 375,000
225,000
Other subsidiary debt 25,588
27,954
Purchase accounting adjustments and original issue discount (142,796 ) (166,961 )
Long-term debt fees (102,341 ) (123,003 )
Total debt 20,614,900
20,364,988
Less: current portion 619,003
342,908
Total long-term debt $ 19,995,897
$ 20,022,080

IHEARTMEDIA, INC. AND SUBSIDIARIES (DEBTOR-IN-POSSESSION)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

NOTE 5 – LONG-TERM DEBT

Long-term debt outstanding as of March 31, 2019 and December 31, 2018 consisted of the following:



(In thousands)	March 31, 2019			December 31, 2018
Senior Secured Credit Facilities	$	—		$	—
Debtors-in-Possession Facility⁽¹⁾	—			—
9.0% Priority Guarantee Notes Due 2019	—			—
9.0% Priority Guarantee Notes Due 2021	—			—
11.25% Priority Guarantee Notes Due 2021	—			—
9.0% Priority Guarantee Notes Due 2022	—			—
10.625% Priority Guarantee Notes Due 2023	—			—
CCO Receivables Based Credit Facility Due 2023⁽²⁾	—			—
Other secured subsidiary debt⁽³⁾	3,828			3,882
Total consolidated secured debt	3,828			3,882

14.0% Senior Notes Due 2021	—			—
Legacy Notes⁽⁴⁾	—			—
CCWH Senior Notes due 2022	2,725,000			2,725,000
CCWH Subordinated Notes due 2020⁽⁵⁾	—			2,200,000
CCWH Subordinated Notes due 2024⁽⁵⁾	2,235,000			—
Clear Channel International B.V. Senior Notes due 2020	375,000			375,000
Other subsidiary debt	46,510			46,105
Purchase accounting adjustments and original issue discount	(867		)	(739		)
Long-term debt fees	(44,322		)	(25,808		)
Long-term debt, net subject to compromise⁽⁶⁾	15,143,713			15,149,477
Total debt, prior to reclassification to Liabilities subject to compromise	20,483,862			20,472,917
Less: Current portion	46,744			46,332
Less: Amounts reclassified to Liabilities subject to compromise	15,143,713			15,149,477
Total long-term debt	$	5,293,405		$	5,277,108

(1)

~~Term Loan D~~The Debtors-in-Possession Facility (the "DIP Facility"), which matures on the earlier of the emergence date from the Chapter 11 Cases or June 14, 2019, provides for borrowings of up to $450.0 million. The DIP Facility also includes a feature to convert into an exit facility at emergence, upon meeting certain conditions. As of March 31, 2019, the Company had a borrowing base of $426.8 million under iHeartCommunications' DIP Facility, had no outstanding borrowings, had $59.0 million of outstanding letters of credit and ~~Term Loan E mature~~had an availability block requirement of $37.5 million, resulting in ~~2019.~~$330.3 million of excess availability.

(2)

The ~~Receivables Based Credit Facility, which matures December 24, 2017,~~receivables based credit facility provides for ~~borrowings~~revolving credit commitments of up to $125.0 million. As of March 31, 2019, the ~~lesser~~facility had $85.5 million of ~~$535.0 million (the revolving~~letters of credit ~~commitment) or the~~outstanding and a borrowing base ~~subject to certain limitations contained~~of $116.2 million, resulting in ~~iHeartCommunications' material financing agreements.~~$30.7 million of excess availability. Certain additional restrictions, including a springing financial covenant, take effect at decreased levels of excess availability.


(3)	~~The Subsidiary Revolving Credit Facility provides for borrowings up to $75.0 million (the revolving credit commitment).~~


~~(4)~~	Other secured subsidiary debt matures at various dates from ~~2017~~2019 through 2045.


~~(5)~~	The 14.0% Senior Notes due 2021 are subject to required payments at various dates from 2018 through 2021. 2.0% per annum of the interest is paid through the issuance of payment-in-kind notes in the first and third quarters.

~~(6)~~(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 ~~maturing at various dates~~that matured on June 15, 2018, $300.0 million of Senior Notes that mature in ~~2018~~2027 and ~~2027, as well as~~ $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 February 4, 2019, Clear Channel Worldwide Holdings, Inc., a subsidiary of CCOH (“CCWH”), delivered a conditional notice of redemption calling all of its outstanding $275.0 million aggregate principal amount of 7.625% Series A Senior Subordinated Notes due 2020 (the “Series A CCWH Subordinated Notes”) and $1,925.0 million aggregate principal amount of 7.625% Series B Senior Subordinated Notes due 2020 (the “Series B CCWH Subordinated Notes” and together with the Series A CCWH Subordinated Notes, the “CCWH Subordinated Notes”) for redemption on March 6, 2019. The redemption was conditioned on the closing of the offering of $2,235.0 million of newly-issued 9.25% Senior Subordinated Notes due 2024 (the "New CCWH Subordinated Notes"). At the closing of such offering on February 12, 2019, CCWH deposited with the trustee for the CCWH Subordinated Notes a portion of the proceeds from the new notes in an amount sufficient to pay and discharge the principal amount outstanding, plus accrued and unpaid interest on

IHEARTMEDIA, INC. AND SUBSIDIARIES (DEBTOR-IN-POSSESSION)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

the CCWH Subordinated Notes to, but not including, the redemption date. CCWH irrevocably instructed the trustee to apply such funds to the full payment of the CCWH Subordinated Notes on the redemption date. Concurrently therewith, CCWH elected to satisfy and discharge the indentures governing the CCWH Subordinated Notes in accordance with their terms and the trustee acknowledged such satisfaction and discharge. As a result of the satisfaction and discharge of the indentures, CCWH and the guarantors of the CCWH Subordinated Notes were released from their remaining obligations under the indentures and the CCWH Subordinated Notes.

(6)

In connection with the Company's Chapter 11 Cases, the $6,300.0 million 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, $6.0 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 $10.8 million outstanding Other Subsidiary Debt have been reclassified to Liabilities subject to compromise in the Company's Consolidated Balance Sheet as of March 31, 2019. 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 ~~8.7%~~9.4% and ~~8.5%~~9.2% as of ~~September 30, 2017~~March 31, 2019 and December 31, ~~2016,~~2018, respectively. The aggregate market value of the Company’s debt based on market prices for which quotes were available was approximately ~~$15.8~~$14.9 billion and ~~$16.7~~$14.0 billion as of ~~September 30, 2017~~March 31, 2019 and December 31, ~~2016,~~2018, respectively. Under the fair value hierarchy established by ASC 820-10-35, the market value of the Company’s debt is classified as either Level 1 or Level 2.

On January 31, 2017, iHeartCommunications repaid $25.0 million of the amount borrowed under its receivables-based credit facility. On July 31, 2017, iHeartCommunications borrowed an additional $60.0 million on its receivables-based credit facility, bringing the total amount outstanding under this facility as of September 30, 2017 to $365.0 million.

On February 7, 2017, iHeartCommunications completed an exchange offer by issuing $476.4 million in aggregate principal amount of 11.25% Priority Guarantee Notes due 2021 in exchange for $476.4 million of aggregate principal amount outstanding of its 10.0% Senior Notes due 2018. Of the $476.4 million principal amount of 11.25% Priority Guarantee Notes due 2021 issued in the exchange offer, $241.4 million principal amount was issued to subsidiaries of iHeartCommunications that participated in the exchange offer.

On March 15, 2017, iHeartCommunications commenced exchange offers (the “notes exchange offers”) to exchange certain series of its outstanding debt securities (the “Existing Notes”) for new securities of the Company, iHeartCommunications and CC Outdoor Holdings, Inc., a wholly-owned subsidiary of the Company, and concurrent consent solicitations with respect to the terms of the Existing Notes. On March 15, 2017, the Company also commenced offers (the “term loan offers”) to amend its outstanding Term Loan D and Term Loan E under its senior secured credit facilities and/or to issue new securities of the Company, CC Outdoor Holdings, Inc., Broader Media, LLC and/or iHeartCommunications to the lenders depending on the scenario in which the notes exchange offers and the term loan offers close. The terms of the notes exchange offers and the term loan offers have been revised and are subject to substantial further revision, and the offers may never be consummated, on the terms currently proposed or otherwise. Both the notes exchange offers and the term loan offers were open as of November 8, 2017.

On July 10, 2017, a subsidiary of iHeartCommunications exchanged $15.6 million aggregate principal amount of 11.25% Priority Guarantee Notes due 2021 that were held by a subsidiary of iHeartCommunications for $15.6 million aggregate principal amount of its 10.0% Senior Notes due 2018 that were held by an unaffiliated third party.

~~On August 14, 2017, Clear Channel International B.V. (“CCIBV”), an indirect subsidiary of the Company, issued~~ ~~$150.0~~ ~~million in aggregate principal amount of~~ ~~8.75%~~ ~~Senior Notes due 2020 (the “New Notes”). The New Notes were issued as additional notes under the indenture governing CCIBV’s existing~~ ~~8.75%~~ ~~Senior Notes due 2020 and were issued at a premium, resulting in $156.0 million in proceeds. The New Notes mature on December 15, 2020 and bear interest at a rate of~~ ~~8.75%~~ ~~per annum, payable semi-annually in arrears on June 15 and December 15 of each year.~~

In October 2017, a subsidiary of iHeartCommunications exchanged $45.0 million aggregate principal amount of 11.25% Priority Guarantee Notes due 2021 that were held by a subsidiary of iHeartCommunications for $45.0 million aggregate principal amount of 10.0% Senior Notes due 2018 that were held by unaffiliated third parties.

~~IHEARTMEDIA, INC. AND SUBSIDIARIES~~

~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS~~

~~(UNAUDITED)~~

Surety Bonds, Letters of Credit and Guarantees

As of ~~September 30, 2017,~~March 31, 2019, the Company and its subsidiaries had outstanding surety bonds, commercial standby letters of credit and bank guarantees of ~~$72.1~~$74.2 million, $144.5 million and ~~$36.6~~$37.3 million, respectively. ~~Bank~~A portion of the outstanding bank guarantees ~~and letters~~were supported by $16.9 million of ~~credit of $17.3 million and $28.8 million, respectively, were backed by~~ cash collateral. These surety bonds, letters of credit and bank guarantees relate to various operational matters including insurance, bid, concession and performance bonds as well as other items.

NOTE 46 – COMMITMENTS AND CONTINGENCIES

The Company and its subsidiaries are involved in certain legal proceedings arising in the ordinary course of business and, as required, have accrued an estimate of the probable costs for the resolution of those claims for which the occurrence of loss is probable and the amount can be reasonably estimated. These estimates have been developed in consultation with counsel and are based upon an analysis of potential results, assuming a combination of litigation and settlement strategies. It is possible, however, that future results of operations for any particular period could be materially affected by changes in the Company’s assumptions or the effectiveness of 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.

~~International Outdoor Investigation~~Chapter 11 Cases

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 Petition Date, and continue to be stayed. On ~~April~~March 21, ~~2015, inspections~~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 ~~conducted at~~entitled to "equal and ratable" treatment. On March 26, 2018, Delaware Trust Co. ("Delaware Trust"), in its capacity as successor indenture trustee to the ~~premises~~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 ~~Clear Channel in Denmark~~the 14% Senior Notes due 2021 are also entitled to the same "equal and ~~Sweden as part of an investigation by Danish competition authorities. Additionally,~~ratable" liens on the same ~~day,~~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

IHEARTMEDIA, INC. AND SUBSIDIARIES (DEBTOR-IN-POSSESSION)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

7, 2018. We answered the complaint and completed discovery. The trial was held on October 24, 2018. On January 15, 2019, the Bankruptcy Court entered judgment in the Company's favor denying all relief sought by WSFS and all other parties. Pursuant to a settlement (the “Legacy Plan Settlement”) with WSFS and certain consenting Legacy Noteholders of all issues related to confirmation of the Company's plan of reorganization, upon the Company's confirmed plan of reorganization becoming effective, this adversary proceeding shall be deemed withdrawn and/or dismissed, with respect to all parties thereto, with prejudice and in its entirety.

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 ~~UK received~~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 ~~communication from~~“pattern of inequitable and bad faith conduct, including the ~~UK competition authorities, also~~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 ~~connection~~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. Pursuant to the Legacy Plan Settlement, upon the Company's confirmed Plan of Reorganization becoming effective, this adversary proceeding shall be deemed withdrawn and/or dismissed, with ~~the investigation by Danish competition authorities. Clear Channel~~respect to all parties thereto, with prejudice and in its ~~affiliates are cooperating with the national competition authorities.~~entirety.

Stockholder Litigation

On May 9, 2016, a stockholder of ~~Clear Channel Outdoor Holdings, Inc. ("CCOH")~~CCOH filed a derivative lawsuit in the Court of Chancery of the State of Delaware, captioned GAMCO Asset Management Inc. v. iHeartMedia, Inc. et al., C.A. No. 12312-VCS. The complaint ~~names~~named as defendants the Company, iHeartCommunications, ~~Inc. ("iHeartCommunications"), an indirect subsidiary of the Company,~~ Bain Capital Partners, LLC and Thomas H. Lee Partners, L.P. ~~(together, the "Sponsor Defendants")~~, the Company's private equity sponsors and majority owners (together, the "Sponsor Defendants"), and the members of CCOH's board of directors. CCOH also iswas named as a nominal defendant. The complaint ~~alleges~~alleged that CCOH ~~has~~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 ~~alleges~~alleged that the defendants ~~have~~ breached their fiduciary duties by causing CCOH to: (i) continue to loan cash to iHeartCommunications under the intercompany note at below-market rates; (ii) abandon its growth and acquisition strategies in favor of transactions that would provide cash to the Company and iHeartCommunications; (iii) issue new debt in the CCIBV note offering (the "CCIBV Note Offering") to provide cash to the Company and iHeartCommunications through a dividend; and (iv) effect the sales of certain outdoor markets in the U.S. (the "Outdoor Asset Sales") allegedly to provide cash to the Company and iHeartCommunications through a dividend. The complaint also ~~alleges~~alleged that the Company, iHeartCommunications and the Sponsor Defendants aided and abetted the directors' breaches of their fiduciary duties. The complaint further ~~alleges~~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 ~~is seeking,~~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

~~IHEARTMEDIA, INC. AND SUBSIDIARIES~~

~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS~~

~~(UNAUDITED)~~

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

IHEARTMEDIA, INC. AND SUBSIDIARIES (DEBTOR-IN-POSSESSION)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

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.

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.

In connection with the cash management arrangements with CCOH, iHeartCommunications maintains an intercompany revolving promissory note payable by iHeartCommunications to CCOH (the "Intercompany Note"), which matures on May 15, 2019. As of December 31, 2017, the principal amount outstanding under the Intercompany Note was $1,067.6 million. As a result of the Chapter 11 Cases, CCOH wrote down the balance of the note by $855.6 million during the fourth quarter of 2017 to reflect the estimated recoverable amount of the Intercompany Note as of December 31, 2017, based on CCOH management's best estimate of the cash settlement amount. As of the Petition Date, the principal amount outstanding under the Intercompany Note was $1,031.7 million. As of March 31, 2019, the asset recorded in respect of the Intercompany Note on CCOH's balance sheet was $154.8 million. Pursuant to an order entered by the Bankruptcy Court, as of March 14, 2018, the balance of the Intercompany Note is frozen, and following March 14, 2018, intercompany allocations that would have been reflected in adjustments to the balance of the Intercompany Note are instead reflected in an intercompany balance that accrues interest at a rate equal to the interest under the Intercompany Note. As of March 31, 2019, the liability recorded in respect of the post-petition intercompany balance on CCOH's balance sheet was $73.7 million.

On December 16, 2018, the Debtors, CCOH, GAMCO Asset Management, Inc., and Norfolk County Retirement System entered into a settlement (the “CCOH Separation Settlement”) of all claims, objections, and other causes of action that have been or could be asserted by or on behalf of CCOH, GAMCO Asset Management, Inc., and/or Norfolk County Retirement System by and among the Debtors, CCOH, GAMCO Asset Management, Inc., certain individual defendants in the GAMCO Asset Management, Inc. action and/or the Norfolk County Retirement System action, and the private equity sponsor defendants in such actions. The CCOH Separation Settlement provides for the consensual separation of the Debtors and CCOH, including approximately $149.0 million of recovery to CCOH on account of its claim against iHeartCommunications in the Chapter 11 cases, a $200 million unsecured revolving line of credit from certain of the Debtors to CCOH for a period of up to three years, the transfer of certain of the Debtors’ intellectual property to CCOH, the waiver by the Debtors of the setoff for the value of the transferred intellectual property, mutual

IHEARTMEDIA, INC. AND SUBSIDIARIES (DEBTOR-IN-POSSESSION)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

releases, the termination of the cash sweep under the existing Corporate Services Agreement, the termination of any agreements or licenses requiring royalty payments from CCOH to the Debtors for trademarks or other intellectual property, the waiver of any post-petition amounts owed by CCOH relating to such trademarks or other intellectual property, and the execution of a new transition services agreement and other separation documents. The CCOH Separation Settlement was approved by the Bankruptcy Court and the United States District Court for the Southern District of Texas on January 22, 2019.

The Separation Agreement contemplates that in connection with the Separation (i) the cash sweep arrangement under the Corporate Services Agreement between CCOH and iHeartCommunications will terminate, and (ii) any agreements or licenses requiring royalty payments to the Debtors by CCOH for trademarks or other intellectual property, will terminate effective as of December 31, 2018. The Debtors agreed to (i) the repayment of the post-petition intercompany balance outstanding in favor of the Debtors as of December 31, 2018, which was equal to $21.6 million as of that date and (ii) the waiver of the set-off value of any royalties and IP license fees owed to iHeartCommunications equal to approximately $31.8 million from March 14, 2018 through December 31, 2018, such that the resulting intercompany balance on such date was $10.2 million in favor of CCOH, payable on the Effective Date. Since January 1, 2019, CCOH has incurred an additional intercompany liability of $52.1 million in favor of iHeartCommunications as of March 31, 2019. Pursuant to an amendment to the Separation Agreement (the "Separation Agreement Amendment"), CCOH has agreed to offset the $149 million amount owed by iHeartCommunications on the Effective Date by $52.1 million, resulting in a total net payment to CCOH of approximately $107 million on the Effective Date (including the $10.2 million payment discussed above). Pursuant to the Amendment, within 15 business days after the Effective Date, iHeartCommunications and CCOH will pay the other any intercompany liability incurred from April 1, 2019 through the Effective Date. The Intercompany Note and Due to iHeartCommunications Note are eliminated in consolidation in our consolidated financial statements. The Bankruptcy Court approved a final order to allow us to continue to provide the day-to-day cash management services for CCOH during the Chapter 11 Cases. Upon the occurrence of the Separation on the Effective Date, we will cease to provide these services for CCOH.

China Investigation

Several employees of Clear Media Limited, an indirect, non-wholly-owned subsidiary of the Company whose ordinary shares are listed on the Hong Kong Stock Exchange, are subject to an ongoing police investigation in China for misappropriation of funds. The Company is not aware of any litigation, claim or assessment pending against the Company in relation to this investigation. 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 investigation in China are not material to the Company’s consolidated financial statements. The effect of the misappropriation of funds is reflected in these financial statements in the appropriate periods.

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 and could be qualitatively or quantitatively material to the Company.

Italy Investigation

During the three months ended June 30, 2018, the Company identified misstatements associated with VAT obligations in its business in Italy, which resulted in an understatement of its VAT obligation. These misstatements resulted in an understatement of other long-term liabilities of $16.9 million as of December 31, 2017. The effect of these misstatements is reflected in the historical financial statements in the appropriate periods. 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 in relation to the transactions under investigation, amounting to approximately $17 million, including estimated possible penalties and interest. The Company made a payment of approximately $8.6 million during the fourth quarter of 2018 and expects to pay the remainder during the last half of 2019. The ultimate amount to be paid may differ from the estimates, and such differences may be material.

IHEARTMEDIA, INC. AND SUBSIDIARIES (DEBTOR-IN-POSSESSION)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

NOTE 57 – INCOME TAXES

Income Tax Expense

The Company’s income tax expense for the three ~~and nine~~ months ended ~~September 30, 2017~~March 31, 2019 and ~~2016,~~2018, respectively, consisted of the following components:

(In thousands) Three Months Ended September 30, Nine Months Ended September 30,
2017 2016 2017 2016
Current tax benefit (expense) $ 7,349
$ (9,339 ) $ (37,638 ) $ (56,340 )
Deferred tax benefit (expense) (9,400 ) 3,726
(12,505 ) 14,097
Income tax expense $ (2,051 ) $ (5,613 ) $ (50,143 ) $ (42,243 )



(In thousands)	Three Months Ended March 31,
	2019			2018
Current tax expense	$	(1,926	)	$	(4,672	)
Deferred tax benefit	5,357			122,038
Income tax benefit	$	3,431		$	117,366

The effective tax ~~rates~~rate for the three months ended ~~September 30, 2017~~March 31, 2019 and ~~2016 were (0.8)%~~2018 was 2.5% and ~~(24.5)%~~21.3%, respectively. The decrease in the effective tax ~~rates for~~rate is primarily attributed to the ~~nine months ended September 30, 2017~~tax effects of the impairment charge recorded in relation to indefinite-lived FCC licenses in the current period, and ~~2016 were (6.7)%~~also attributed to year over year changes in the forecasted mix of earnings and ~~(13.2)%, respectively. The 2017 and 2016 effective~~ tax rates ~~were primarily impacted by~~in 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.~~

~~NOTE 6 – 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:~~operates.

(In thousands) The Company
Noncontrolling
Interests
Consolidated
Balance as of January 1, 2017 $ (11,021,253 ) $ 135,778
$ (10,885,475 )
Net income (loss) (810,429 ) 8,648
(801,781 )
Dividends declared and other payments to noncontrolling interests —
(43,540 ) (43,540 )
Share-based compensation 1,867
7,153
9,020
Purchases of additional noncontrolling interest (378 ) (575 ) (953 )
Disposal of noncontrolling interest —
(2,438 ) (2,438 )
Foreign currency translation adjustments 34,785
9,880
44,665
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 $ (11,791,848 ) $ 114,133
$ (11,677,715 )

~~IHEARTMEDIA, INC.~~NOTE 8 – SHARE-BASED COMPENSATION AND ~~SUBSIDIARIES~~

~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS~~

~~(UNAUDITED)~~

(In thousands) The Company
Noncontrolling
Interests
Consolidated
Balance as of January 1, 2016 $ (10,784,841 ) $ 178,160
$ (10,606,681 )
Net income (loss) (402,397 ) 38,950
(363,447 )
Dividends declared and other payments to noncontrolling interests —
(74,542 ) (74,542 )
Share-based compensation 2,159
8,191
10,350
Foreign currency translation adjustments 40,914
2,883
43,797
Unrealized holding loss on marketable securities (571 ) (64 ) (635 )
Reclassification adjustments 28,919
3,904
32,823
Other adjustments to comprehensive loss (3,193 ) (358 ) (3,551 )
Other, net (1,389 ) 495
(894 )
Balances as of September 30, 2016 $ (11,120,399 ) $ 157,619
$ (10,962,780 )
LOSS PER SHARE

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 September 30,						Nine Months Ended September 30,						Three Months Ended March 31,
	2017			2016			2017			2016			2019			2018
NUMERATOR:
Net loss attributable to the Company – common shares	$	(248,177	)	$	(35,001	)	$	(810,429	)	$	(402,397	)	$	(114,383	)	$	(416,994	)

DENOMINATOR:
Weighted average common shares outstanding - basic	85,072			84,650			84,900			84,510			85,649			85,215
Weighted average common shares outstanding - diluted⁽¹⁾	85,072			84,650			84,900			84,510			85,649			85,215

Net loss attributable to the Company per common share:
Basic	$	(2.92	)	$	(0.41	)	$	(9.55	)	$	(4.76	)	$	(1.34	)	$	(4.89	)
Diluted	$	(2.92	)	$	(0.41	)	$	(9.55	)	$	(4.76	)	$	(1.34	)	$	(4.89	)


⁽¹⁾	Outstanding equity awards of ~~8.5~~5.9 million and ~~8.0~~8.2 million for the three months ended ~~September 30, 2017~~March 31, 2019 and ~~2016, respectively, and 8.5 million and 8.0 million for the nine months ended September 30, 2017 and 2016,~~2018, respectively, were not included in the computation of diluted earnings per share because to do so would have been antidilutive.

NOTE 79 — OTHER INFORMATION

Other Comprehensive Income (Loss)

There was no change in deferred income tax liabilities resulting from adjustments to comprehensive loss for the three ~~and nine~~ months ended ~~September 30, 2017. The total increase (decrease) in deferred income tax liabilities of other adjustments~~March 31, 2019 and 2018.

Preferred Equity Commitment

On April 8, 2019, the Company, iHeartCommunications, iHeart Operations, Inc. ("iHeart Operations"), and CCH entered into a Preferred Equity Commitment Letter (the "Commitment Letter") with an investor. Pursuant to ~~comprehensive loss for~~ the ~~three and nine months ended September 30, 2016 was $0.1 million and $(0.7) million.~~

~~Trade and Barter~~

~~Trade and barter transactions represent~~Commitment Letter, the exchange of advertising spots or display space for merchandise, services or other assets in the ordinary course of business. These transactions are recorded at the estimated fair market value of the advertising spots or display space or the fair value of the merchandise or services or other assets received, whichever is most readily determinable. Trade and barter revenues and expenses from continuing operations are included in consolidated revenue and selling, general and administrative expenses, respectively.investor

IHEARTMEDIA, INC. AND SUBSIDIARIES (DEBTOR-IN-POSSESSION)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

~~Trade~~has agreed to purchase (i) 60,000 shares of Series A Perpetual Preferred Stock, par value $0.001 per share (the "iHeart Operations Preferred Stock"), of iHeart Operations, Inc. having an aggregate initial liquidation preference of $60 million for a cash purchase price of $60 million and ~~barter revenues~~(ii) 45,000 shares of Series A Perpetual Preferred Stock, par value $0.01 per share, of CCH having an aggregate initial liquidation preference of $45 million for a cash purchase price of $45 million.

Holders of the iHeart Operations Preferred Stock will be entitled to receive, as and when declared by the board of directors of iHeart Operations, in respect of each share, cumulative dividends accruing daily and payable quarterly at a per annum rate equal to the sum of (1) the greater of (a) LIBOR and (b) two percent, plus (2) the applicable margin, which is calculated as a function of iHeartMedia’s consolidated total leverage ratio. Dividends will be payable on the liquidation preference. Unless all accrued and unpaid dividends on the iHeart Operations Preferred Stock are paid in full, no dividends or distributions may be paid on any equity interests of iHeartMedia or its subsidiaries other than iHeart Operations, and no such equity interests may be repurchased or redeemed (subject to certain exceptions that are specified in the certificate of designations for the ~~Company were $49.1 million~~iHeart Operations Preferred Stock). Dividends, if declared, will be payable on March 31, June 30, September 30 and ~~$30.2 million~~December 31 of each year (or on the next business day if such date is not a business day).

Other than as set forth below, iHeart Operations may not redeem the iHeart Operations Preferred Stock at its option prior to the third anniversary of the issue date of the iHeart Operations Preferred Stock. Upon consummation of certain equity offerings, iHeart Operations may, at its option, redeem all or a part of the iHeart Operations Preferred Stock for the three months ended September 30, 2017 and 2016, respectively, and $161.7 million and $105.7 million for the nine months ended September 30, 2017 and 2016, respectively. Trade and barter expenses for the Company were $36.6 million and $23.2 million for the three months ended September 30, 2017 and 2016, respectively, and $129.2 million and $81.8 million for the nine months ended September 30, 2017 and 2016, respectively.

Trade and barter revenues for our iHeartMedia segment were $45.9 million and $26.0 million for the three months ended September 30, 2017 and 2016, respectively, and $149.2 million and $98.0 million for the nine months ended September 30, 2017 and 2016, respectively. Trade and barter expenses for our iHeartMedia segment were $32.2 million and $21.0 million for the three months ended September 30, 2017 and 2016, respectively, and $118.7 million and $75.4 million for the nine months ended September 30, 2017 and 2016, respectively.

~~Investments~~

~~During~~liquidation preference plus a make-whole premium. At any time on or after the third ~~quarter~~anniversary of ~~2017~~ the ~~Company determined that some~~issue date, the iHeart Operations Preferred Stock may be redeemed at the option of iHeart Operations, in whole or in part, for cash at a redemption price equal to the liquidation preference per share.

Upon (i) a liquidation, dissolution or winding up of iHeart Operations, iHeartMedia or iHeartCommunications, together with the subsidiaries of such entity, taken as a whole, (ii) a bankruptcy event, (iii) a change of control, (iv) a sale or transfer of all or substantially all of iHeart Operations’, iHeartMedia’s or iHeartCommunications’ assets and the assets of such entity’s subsidiaries, taken as a whole in a single transaction (other than to iHeartMedia or any of its ~~investments had declined~~subsidiaries), or a series of transactions, (v) an acceleration or payment default of indebtedness of iHeart Operations, iHeartMedia or any of its subsidiaries of $100 million or more or (vi) consummation of certain equity offerings of iHeartMedia, iHeart Operations or iHeartCommunications or certain significant subsidiaries, then any holder of shares of iHeart Operations Preferred Stock may require iHeartMedia to purchase such holder’s shares of iHeart Operations Preferred Stock at a purchase price equal to (a) the liquidation preference plus a make-whole premium, if such purchase is consummated prior to the third anniversary of the issue date or (b) the liquidation preference, if the purchase is consummated on or after the third anniversary of the issue date.

The shares of iHeart Operations Preferred Stock include repurchase rights, pursuant to which the holders may require iHeartMedia or iHeartCommunications to purchase the iHeart Operations Preferred Stock after the fifth anniversary of the issue date.

On the tenth anniversary of the issue date, the shares of iHeart Operations Preferred Stock will be subject to mandatory redemption for an amount equal to the liquidation preference.

If a default occurs or dividends payable on the shares of iHeart Operations Preferred Stock have not been paid in ~~value. Such decline in value was considered~~cash for twelve consecutive quarters, the holders of the iHeart Operations Preferred Stock will have the right, voting as a class, to elect one director to iHeartMedia’s Board of Directors. Upon any termination of the rights of the holders of shares of the iHeart Operations Preferred Stock as a class to vote for a director as described above, the director so elected to iHeartMedia’s Board of Directors will cease to be ~~other than temporary,~~qualified as a director and the ~~Company recorded a loss on investments~~term of ~~$1.6 million to state the investments at their estimated fair value. During the third quarter of 2016 the Company recorded a loss on investments of $14.5 million on one of its investments.~~such director’s office shall terminate immediately.

IHEARTMEDIA, INC. AND SUBSIDIARIES (DEBTOR-IN-POSSESSION)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

NOTE 810 – SEGMENT DATA

The Company’s reportable segments, which it believes best reflect how the Company is currently managed, are iHM, Americas outdoor advertising and International outdoor advertising. Revenue and expenses earned and charged between segments are recorded at estimated fair value and eliminated in consolidation. The iHM segment provides media and entertainment services via broadcast and digital delivery and also includes the Company’s events and national syndication businesses. The Americas outdoor advertising segment consists of operations primarily in the United ~~States, Canada and Latin America.~~States. The International outdoor advertising segment primarily includes operations in Europe, Asia and ~~Asia.~~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.

~~IHEARTMEDIA, INC. AND SUBSIDIARIES~~

~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS~~

~~(UNAUDITED)~~

The following table presents the Company's reportable segment results for the three ~~and nine~~ months ended ~~September 30, 2017~~March 31, 2019 and ~~2016:~~2018:


(In thousands)	iHM		Americas Outdoor		International Outdoor		Other			Corporate and other reconciling items			Eliminations			Consolidated			iHM		Americas Outdoor		International Outdoor			Other			Corporate and other reconciling items			Eliminations			Consolidated
Three Months Ended September 30, 2017
Three Months Ended March 31, 2019																			Three Months Ended March 31, 2019
Revenue	$	859,531	$	316,587	$	328,502	$	34,452		$	—		$	(1,656	)	$	1,537,416		$	765,810	$	272,722	$	314,394		$	30,190		$	—		$	(1,217	)	$	1,381,899
Direct operating expenses	265,795		141,609		214,491		—			—			—			621,895			267,114		130,519		217,308			1			—			(23		)	614,919
Selling, general and administrative expenses	287,676		54,689		73,708		23,298			—			(717		)	438,654			307,729		51,636		71,330			25,251			—			(223		)	455,723
Corporate expenses	—		—		—		—			78,906			(939		)	77,967			—		—		—			—			75,671			(971		)	74,700
Depreciation and amortization	58,089		47,035		32,886		3,893			7,846			—			149,749			30,417		39,496		34,581			2,945			5,927			—			113,366
Impairment charges	—		—		—		—			7,631			—			7,631			—		—		—			—			91,382			—			91,382
Other operating expense, net	—		—		—		—			(13,215		)	—			(13,215		)	—		—		—			—			(3,549		)	—			(3,549		)
Operating income (loss)	$	247,971	$	73,254	$	7,417	$	7,261		$	(107,598	)	$	—		$	228,305		$	160,550	$	51,071	$	(8,825	)	$	1,993		$	(176,529	)	$	—		$	28,260
Intersegment revenues	$	—	$	1,656	$	—	$	—		$	—		$	—		$	1,656		$	226	$	991	$	—		$	—		$	—		$	—		$	1,217
Capital expenditures	$	14,009	$	5,118	$	26,211	$	184		$	2,802		$	—		$	48,324		$	20,690	$	11,408	$	14,819		$	37		$	4,172		$	—		$	51,126
Share-based compensation expense	$	—	$	—	$	—	$	—		$	3,539		$	—		$	3,539		$	—	$	—	$	—		$	—		$	2,227		$	—		$	2,227

Three Months Ended September 30, 2016
Three Months Ended March 31, 2018																			Three Months Ended March 31, 2018
Revenue	$	857,099	$	322,997	$	346,224	$	41,414		$	—		$	(1,152	)	$	1,566,582		$	744,568	$	255,847	$	342,551		$	28,218		$	—		$	(1,536	)	$	1,369,648
Direct operating expenses	229,668		142,989		219,261		(178		)	—			—			591,740			241,066		124,873		236,416			—			—			—			602,355
Selling, general and administrative expenses	268,612		54,500		71,664		27,466			—			(542		)	421,700			321,270		48,950		78,458			24,822			—			(513		)	472,987
Corporate expenses	—		—		—		—			87,442			(610		)	86,832			—		—		—			—			79,757			(1,023		)	78,734
Depreciation and amortization	60,691		47,242		37,018		4,483			9,019			—			158,453			58,333		44,504		38,565			3,766			6,266			—			151,434
Impairment charges	—		—		—		—			8,000			—			8,000			—		—		—			—			—			—			—
Other operating expense, net	—		—		—		—			(505		)	—			(505		)	—		—		—			—			(3,286		)	—			(3,286		)
Operating income (loss)	$	298,128	$	78,266	$	18,281	$	9,643		$	(104,966	)	$	—		$	299,352		$	123,899	$	37,520	$	(10,888	)	$	(370	)	$	(89,309	)	$	—		$	60,852
Intersegment revenues	$	—	$	1,152	$	—	$	—		$	—		$	—		$	1,152		$	14	$	1,522	$	—		$	—		$	—		$	—		$	1,536
Capital expenditures	$	23,238	$	19,114	$	30,803	$	582		$	3,596		$	—		$	77,333		$	9,077	$	12,907	$	15,272		$	40		$	1,407		$	—		$	38,703
Share-based compensation expense	$	—	$	—	$	—	$	—		$	3,484		$	—		$	3,484		$	—	$	—	$	—		$	—		$	2,684		$	—		$	2,684

IHEARTMEDIA, INC. AND SUBSIDIARIES (DEBTOR-IN-POSSESSION)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

(In thousands) iHM Americas Outdoor International Outdoor Other Corporate and other reconciling items Eliminations Consolidated
Nine Months Ended September 30, 2017
Revenue $ 2,501,084
$ 919,967
$ 942,167
$ 99,332
$ —
$ (5,444 ) $ 4,457,106
Direct operating expenses 773,327
427,181
607,023
3
—
—
1,807,534
Selling, general and administrative expenses 894,669
165,538
204,531
74,519
—
(2,694 ) 1,336,563
Corporate expenses —
—
—
—
236,237
(2,750 ) 233,487
Depreciation and amortization 174,946
137,689
95,149
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
$ 189,559
$ 35,464
$ 13,713
$ (243,852 ) $ —
$ 653,026
Intersegment revenues $ —
$ 5,444
$ —
$ —
$ —
$ —
$ 5,444
Capital expenditures $ 44,353
$ 48,749
$ 83,851
$ 551
$ 7,440
$ —
$ 184,944
Share-based compensation expense $ —
$ —
$ —
$ —
$ 9,020
$ —
$ 9,020

Nine Months Ended September 30, 2016
Revenue $ 2,463,899
$ 931,058
$ 1,035,263
$ 114,663
$ —
$ (2,031 ) $ 4,542,852
Direct operating expenses 704,097
421,039
645,199
1,255
—
—
1,771,590
Selling, general and administrative expenses 812,344
167,660
220,872
82,394
—
(1,421 ) 1,281,849
Corporate expenses —
—
—
—
252,958
(610 ) 252,348
Depreciation and amortization 182,506
140,883
113,075
12,809
26,780
—
476,053
Impairment charges —
—
—
—
8,000
—
8,000
Other operating income, net —
—
—
—
219,768
—
219,768
Operating income (loss) $ 764,952
$ 201,476
$ 56,117
$ 18,205
$ (67,970 ) $ —
$ 972,780
Intersegment revenues $ —
$ 2,031
$ —
$ —
$ —
$ —
$ 2,031
Capital expenditures $ 46,303
$ 47,808
$ 97,487
$ 1,758
$ 7,682
$ —
$ 201,038
Share-based compensation expense $ —
$ —
$ —
$ —
$ 10,350
$ —
$ 10,350

NOTE 911 – 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~~provided management and financial advisory services until December 31, 2018. These agreements ~~require~~required 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~~In connection with the ~~three and nine months ended September 30, 2017,~~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, and $3.9 million and $11.5~~$3.1 million for the three ~~and nine~~ months ended ~~September 30, 2016, respectively.~~March 31, 2018. As of the effective date of the Plan of Reorganization, these management fees will be waived.

IHEARTMEDIA, INC. AND SUBSIDIARIES (DEBTOR-IN-POSSESSION)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

NOTE 12– 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 March 31, 2019 and December 31, 2018 consisted of the following:



(In thousands)	March 31, 2019		December 31, 2018
Accounts payable	$	32,232	$	32,807
Current operating lease liabilities	32,065		—
Accrued expenses	12,050		23,277
Deferred taxes	653,522		644,926
Noncurrent operating lease liabilities	397,158		—
Other long-term liabilities	15,916		87,096
Accounts payable, accrued and other liabilities	1,142,943		788,106
Debt subject to compromise	15,143,713		15,149,477
Accrued interest on debt subject to compromise	542,673		542,673
Long-term debt and accrued interest	15,686,386		15,692,150
Total liabilities subject to compromise	$	16,829,329	$	16,480,256

Determination of the value at which liabilities will ultimately be settled cannot be made until the Bankruptcy Court approves the Plan of Reorganization and the Company emerges from bankruptcy. 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.

NOTE 13– 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 months ended March 31, 2019 and 2018, respectively, and were as follows:



(In thousands)	Three Months Ended March 31,
	2019		2018
Write-off of deferred long-term debt fees	$	—	$	54,670
Write-off of original issue discount on debt subject to compromise	—		131,100
Loss on Liabilities subject to compromise settlement	5		—
Professional fees and other bankruptcy related costs	36,113		6,285
Reorganization items, net	$	36,118	$	192,055

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 March 31, 2019, $49.7 million of Reorganization items, net were unpaid and accrued in Accounts Payable and Accrued Expenses in the accompanying Consolidated Balance Sheet. As of March 31, 2018, $6.1 million of professional fees were unpaid and accrued in Accounts Payable and Accrued Expenses in the accompanying Consolidated Balance Sheet.

IHEARTMEDIA, INC. AND SUBSIDIARIES (DEBTOR-IN-POSSESSION)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

NOTE 14– 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)	March 31, 2019			December 31, 2018
	(Unaudited)
CURRENT ASSETS
Cash and cash equivalents	$	233,596		$	178,924
Accounts receivable, net of allowance of $24,936 in 2019 and 26,347 in 2018	748,143			866,088
Intercompany receivable	48,771			—
Prepaid expenses	120,009			98,836
Other current assets	41,452			24,576
Total Current Assets	1,191,971			1,168,424
PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment, net	496,067			501,677
INTANGIBLE ASSETS AND GOODWILL
Indefinite-lived intangibles - licenses	2,318,029			2,409,411
Other intangibles, net	187,197			196,741
Goodwill	3,412,753			3,412,753
OTHER ASSETS
Operating lease right-of-use assets	353,404			—
Other assets	63,461			63,203
Total Assets	$	8,022,882		$	7,752,209
CURRENT LIABILITIES
Accounts payable	$	41,512		$	49,129
Intercompany payable	—			2,894
Accrued expenses	171,043			296,149
Accrued interest	674			766
Deferred income	128,493			120,328
Current portion of long-term debt	46,510			46,105
Total Current Liabilities	388,232			515,371
Other long-term liabilities	120,662			229,640
Liabilities subject to compromise¹	17,861,051			17,511,976
EQUITY (DEFICIT)
Equity (Deficit)	(10,347,063		)	(10,504,778		)
Total Liabilities and Equity (Deficit)	$	8,022,882		$	7,752,209

¹In 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 pre-petition principal amount outstanding under the Intercompany Note, which totals $1,031.7 million as of March 31, 2019 and December 31, 2018.

IHEARTMEDIA, INC. AND SUBSIDIARIES (DEBTOR-IN-POSSESSION)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

Debtors' Statements of Operations



(In thousands)	Three Months Ended March 31,
	2019			2018
Revenue	$	790,558		$	767,007
Operating expenses:
Direct operating expenses (excludes depreciation and amortization)	265,684			239,461
Selling, general and administrative expenses (excludes depreciation and amortization)	329,919			342,951
Corporate expenses (excludes depreciation and amortization)	47,042			44,308
Depreciation and amortization	38,040			67,116
Impairment charges	91,382			—
Other operating expense, net	(23		)	(3,232		)
Operating income	18,468			69,939
Interest expense, net¹	338			342,564
Equity in loss of nonconsolidated affiliates	(7		)	(32		)
Gain on extinguishment of debt	—			5,667
Dividend income²	—			25,483
Other expense, net	(42		)	(20,060		)
Reorganization items, net	36,118			192,055
Loss before income taxes	(18,037		)	(453,622		)
Income tax benefit	61,373			162,973
Net income (loss)	$	43,336		$	(290,649	)

¹Includes interest incurred during the three months ended March 31, 2019 and 2018 in relation to the post-petition Intercompany Note and interest incurred during the three months ended March 31, 2018 in relation to the pre-petition Intercompany Notes.

²Consists of cash dividends received from Non-Debtor entities during the three months ended March 31, 2018.

IHEARTMEDIA, INC. AND SUBSIDIARIES (DEBTOR-IN-POSSESSION)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

Debtors' Statement of Cash Flows



(In thousands)	Three Months Ended March 31,
	2019			2018
Cash flows from operating activities:
Consolidated net income (loss)	$	43,336		$	(290,649	)
Reconciling items:
Impairment charges	91,382			—
Depreciation and amortization	38,040			67,116
Deferred taxes	8,596			(138,949		)
Provision for doubtful accounts	3,838			6,829
Amortization of deferred financing charges and note discounts, net	405			11,043
Non-cash Reorganization items, net	2,173			191,903
Share-based compensation	393			578
Loss on disposal of operating and other assets	143			1,864
Equity in loss of nonconsolidated affiliates	7			32
Gain on extinguishment of debt	—			(5,667		)
Barter and trade income	(5,076		)	(357		)
Other reconciling items, net	(13		)	(80		)
Changes in operating assets and liabilities, net of effects of acquisitions and dispositions:
Decrease in accounts receivable	114,107			110,270
Increase in prepaid expenses and other current assets	(38,596		)	(66,429		)
Decrease in accrued expenses	(127,089		)	(27,223		)
Increase (decrease) in accounts payable	(8,192		)	4,444
Increase in accrued interest	328			301,896
Increase in deferred income	13,049			13,604
Changes in other operating assets and liabilities	(1,272		)	(1,116		)
Net cash provided by operating activities	135,559			179,109
Cash flows from investing activities:
Purchases of property, plant and equipment	(22,932		)	(10,010		)
Proceeds from disposal of assets	121			1,028
Purchases of other operating assets	—			(305		)
Change in other, net	(7		)	(29		)
Net cash used for investing activities	(22,818		)	(9,316		)
Cash flows from financing activities:
Draws on credit facilities	—			25,000
Payments on credit facilities	—			(59,000		)
Proceeds from long-term debt	228			—
Payments on long-term debt	(6,412		)	(50,027		)
Net transfers to related parties	(51,881		)	(51,996		)
Change in other, net	(4		)	2
Net cash used for financing activities	(58,069		)	(136,021		)
Net increase in cash, cash equivalents and restricted cash	54,672			33,772
Cash, cash equivalents and restricted cash at beginning of period	182,352			102,468
Cash, cash equivalents and restricted cash at end of period	$	237,024		$	136,240

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:

IHEARTMEDIA, INC. AND SUBSIDIARIES (DEBTOR-IN-POSSESSION)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)



(In thousands)	March 31, 2019		December 31, 2018
Cash and cash equivalents	$	233,596	$	178,924
Restricted cash included in:
Other current assets	3,428		3,428
Total cash, cash equivalents and restricted cash in the Statement of Cash Flows	$	237,024	$	182,352

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Format of Presentation

Management’s discussion and analysis of our financial condition and results of operations (“MD&A”) should be read in conjunction with the consolidated financial statements and related footnotes contained in Item 1 of this Quarterly Report on Form 10-Q. Our discussion is presented on both a consolidated and segment basis. Our reportable segments are iHeartMedia (“iHM”), Americas outdoor advertising (“Americas outdoor” or “Americas outdoor advertising”) and International outdoor advertising (“International outdoor” or “International outdoor advertising”). Our iHM segment provides media and entertainment services via live broadcast and digital delivery, and also includes our events and national syndication business. Our Americas outdoor and International outdoor segments provide outdoor advertising services in their respective geographic regions using various digital and traditional display types. Included in the “Other” category is our media representation business, Katz Media Group, which is ancillary to our other businesses.

We manage our operating segments by focusing primarily on their operating income, while Corporate expenses, Other operating income (expense), net, Interest expense, Gain on marketable securities, Equity in earnings (loss) of nonconsolidated affiliates, Loss on extinguishment of debt, Other income, net and Income tax expense are managed on a total company basis and are, therefore, included only in our discussion of consolidated results.

Certain prior period amounts have been reclassified to conform to the ~~2017~~2019 presentation.

Current Bankruptcy Proceedings

On March 14, 2018 (the "Petition Date"), iHeartMedia, Inc. (the “Company”, “iHeartMedia,” “we” or “us”), 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., et al. Case No. 18-31274 (MI). The Debtors continue to operate 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 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. On January 22, 2019, the Bankruptcy Court entered an order confirming the Plan of Reorganization. Subject to the satisfaction of certain conditions, we currently anticipate the Plan of Reorganization will become effective and iHeartMedia will emerge from Chapter 11 on or about May 1, 2019 (the "Effective Date").

On the Effective Date, we will emerge from Chapter 11 through (a) a series of transactions through which CCOH, its parent Clear Channel Holdings, Inc. (“CCH”) and its subsidiaries will be separated from, and cease to be controlled by us and our subsidiaries (the “Separation”), and (b) a series of transactions through which we will reduce our debt from approximately $16 billion to approximately $5.8 billion and effect a global compromise and settlement among holders of claims in connection with the Chapter 11 Cases (the “Reorganization”), which will involve, among other things, (i) the restructuring of our indebtedness by (A) replacing our existing DIP facility with a $450 million senior secured asset-based revolving credit facility (the “New ABL Facility”) and (B) issuing to certain of our prepetition senior creditors, on account of their claims, a $3.5 billion senior secured term loan credit facility, $1.45 billion aggregate principal amount of new Senior Unsecured Notes due 2027 and $800 million aggregate principal amount of new Senior Secured Notes due 2026, (ii) our issuance of new common stock and special warrants to holders of claims and interests, subject to ownership restrictions imposed by the FCC, and (iii) the intercompany settlement transactions and sale of the preferred stock of our indirect wholly-owned subsidiary iHeart Operations, Inc., in each case pursuant to the separation and settlement agreement entered into among us, iHeartCommunications, CCH and CCOH (the "Separation Agreement").

Upon the occurrence of the Separation on the Effective Date, iHeartCommunications will enter into a revolving credit facility that provides for borrowings to Clear Channel Outdoor, LLC ("CCOL"), a subsidiary of CCH, at CCOL’s option, of up to $200 million, with any borrowings bearing interest at a rate equal to the prime lending rate (the "iHC Line of Credit"). The iHC Line of Credit will be unsecured. The facility will have a three year maturity, and may be terminated by CCOL earlier at CCOL's option.

For more information regarding the impact of the Chapter 11 Cases, see "--Liquidity After Filing the Chapter 11 Cases" and "--Liquidity Following the Reorganization and Separation."

Description of our Business

Our iHM strategy centers on delivering entertaining and informative content where our listeners want to find us across multiple platforms, including broadcast, mobile and digital, as well as events. Our primary source of revenue is derived from selling broadcast local and national advertising time on our radio stations, with contracts typically less than one year in duration. The programming formats of our radio stations are designed to reach audiences with targeted demographic characteristics. We are working closely with our advertising and marketing partners to develop tools and leverage data to enable advertisers to effectively reach their desired audiences. We continue to expand the choices for listeners and we deliver our content and sell advertising across multiple distribution channels including digitally via our iHeartRadio mobile application, our station websites and other digital platforms which reach national, regional and local audiences. We also generate revenues from ~~network syndication,~~our networks, including Premiere and Total Traffic & Weather, as well as through sponsorships and our nationally recognized live events ~~our station websites~~ and other ~~miscellaneous transactions.~~revenue streams. We also generate revenue by providing audio and media services to radio and TV broadcast industry participants through our Katz Media and RCS businesses.

Management typically monitors our outdoor advertising business by reviewing the average rates, average revenue per display, occupancy and inventory levels of each of our display types by market. Our outdoor advertising revenue is derived from selling advertising space on the displays we own or operate in key markets worldwide, consisting primarily of billboards, street furniture and transit displays. Part of our long-term strategy for our outdoor advertising businesses is to pursue the technology of digital displays, including flat screens, LCDs and LEDs, as additions to traditional methods of displaying our clients’ advertisements. We are currently installing these technologies in certain markets, both domestically and internationally.

Our advertising revenue for all of our segments is highly correlated to changes in gross domestic product (“GDP”) as advertising spending has historically trended in line with GDP, both domestically and internationally. Our broadcast national and local revenue, as well as our Katz Media revenue are generally impacted by political cycles. Internationally, our results are impacted by fluctuations in foreign currency exchange rates as well as the economic conditions in the foreign markets in which we have operations.

Executive Summary

The key developments that impacted our business are summarized below:

As a result of the ~~sales~~Chapter 11 Cases, we incurred $36.1 million of ~~certain outdoor businesses, which generated $2.6 million and $41.9 million in revenue in~~Reorganization items, net during the three months ended ~~September 30, 2017~~March 31, 2019 and ~~2016, respectively.~~reclassified $16.8 billion of pre-petition claims that are not fully secured and that have at least a possibility of not being repaid to “Liabilities subject to compromise” on the Consolidated Balance Sheet.

~~On August 14, 2017, CCIBV,~~As a result of our ~~indirect~~filing of the Chapter 11 Cases, we ceased accruing interest expense on long-term debt reclassified as Liabilities subject to compromise at the Petition Date.

Clear Channel Worldwide Holdings, Inc. ("CCWH"), a subsidiary of ours, issued ~~at a $6.0~~$2,235.0 million ~~premium $150.0~~of new 9.25% Senior Subordinated Notes due 2024. Proceeds from the new notes were used to pay total principal amount outstanding and accrued and unpaid interest on the $2,200.0 million aggregate principal amount of ~~8.75%~~7.625% CCWH Series A and Series B Senior Subordinated Notes due 2020.

~~During the third quarter of 2017, Americas outdoor sold its ownership interest in a joint venture in Canada and recognized a net loss on sale of $12.1 million.~~

In October 2017, iHeartCommunications exchanged $45.0 million of 11.25% Priority Guarantee Notes due 2021 that were held by a subsidiary of iHeartCommunications for $45.0 million of 10.0% Senior Notes due 2018 that were held by unaffiliated third parties.

~~Revenues~~Revenue and expenses “excluding the impact of foreign exchange movements” in this ~~Management’s Discussion & Analysis of Financial Condition and Results of Operations~~MD&A are presented because management believes that viewing certain financial results without the impact of fluctuations in foreign currency rates facilitates period to period comparisons of business performance and provides useful information to investors. ~~Revenues~~Revenue and expenses “excluding the impact of foreign exchange movements” are calculated by converting the current period’s ~~revenues~~revenue and expenses in local currency to U.S. dollars using average foreign exchange rates for the prior period.

Consolidated Results of Operations

The comparison of our historical results of operations for the three ~~and nine~~ months ended ~~September 30, 2017~~March 31, 2019 to the three ~~and nine~~ months ended ~~September 30, 2016~~March 31, 2018 is as follows:


(In thousands)	Three Months Ended September 30,						% Change		Nine Months Ended September 30,								% Change	Three Months Ended March 31,								% Change
	2017			2016				2017				2016				2019				2018
Revenue	$	1,537,416		$	1,566,582			(1.9)%		$	4,457,106			$	4,542,852				(1.9)%	$	1,381,899			$	1,369,648		0.9%
Operating expenses:
Direct operating expenses (excludes depreciation and amortization)	621,895			591,740			5.1%		1,807,534				1,771,590				2.0%	614,919				602,355				2.1%
Selling, general and administrative expenses (excludes depreciation and amortization)	438,654			421,700			4.0%		1,336,563				1,281,849				4.3%	455,723				472,987				(3.6)%
Corporate expenses (excludes depreciation and amortization)	77,967			86,832			(10.2)%		233,487				252,348				(7.5)%	74,700				78,734				(5.1)%
Depreciation and amortization	149,749			158,453			(5.5)%		443,650				476,053				(6.8)%	113,366				151,434				(25.1)%
Impairment charges	7,631			8,000			(4.6)%		7,631				8,000				(4.6)%	91,382				—				—%
Other operating income (expense), net	(13,215		)	(505		)			24,785				219,768
Other operating expense, net																		(3,549		)		(3,286		)
Operating income	228,305			299,352			(23.7)%		653,026				972,780				(32.9)%	28,260				60,852				(53.6)%
Interest expense	470,250			459,852					1,388,747				1,389,793					114,764				418,397
Loss on investments, net	(2,173		)	(13,767		)			(2,433		)		(13,767		)			(9,961		)		(90		)
Equity in earnings (loss) of nonconsolidated affiliates	(2,238		)	1,117					(2,240		)		(926		)			(214		)		157
Gain on extinguishment of debt	—			157,556					—				157,556
Other income (expense), net	2,223			(7,323		)			(11,244		)		(47,054		)
Gain (loss) on extinguishment of debt																		(5,474		)		100
Other expense, net																		(761		)		(973		)
Reorganization items, net																		36,118				192,055
Loss before income taxes	(244,133		)	(22,917		)			(751,638		)		(321,204		)			(139,032		)		(550,406		)
Income tax expense	(2,051		)	(5,613		)			(50,143		)		(42,243		)
Income tax benefit																		3,431				117,366
Consolidated net loss	(246,184		)	(28,530		)			(801,781		)		(363,447		)			(135,601		)		(433,040		)
Less amount attributable to noncontrolling interest	1,993			6,471					8,648				38,950					(21,218		)		(16,046		)
Net loss attributable to the Company	$	(248,177	)	$	(35,001	)			$	(810,429	)		$	(402,397	)			$	(114,383	)		$	(416,994	)

Consolidated Revenue

Consolidated revenue ~~decreased $29.2~~increased $12.3 million during the three months ended ~~September 30, 2017~~March 31, 2019 compared to the same period of ~~2016.~~2018. Excluding the ~~$10.2~~$24.7 million impact from movements in foreign exchange rates, consolidated revenue ~~decreased $39.4~~increased $37.0 million during the three months ended ~~September 30, 2017~~March 31, 2019 compared to the same period of ~~2016. Revenue~~2018. The increase in consolidated revenue is due to revenue growth from our Americas outdoor business and our iHM business, ~~was~~partially offset by lower revenue ~~generated by~~from our International ~~and Americas~~ outdoor businesses as a result of the sales of our businesses in Canada in 2017 and Australia in 2016, which generated $2.6 million and $41.9 million in revenue in the three months ended September 30, 2017 and 2016, respectively.

Consolidated revenue decreased $85.7 million during the nine months ended September 30, 2017 compared to the same period of 2016. Excluding the $18.1 million impact from movements in foreign exchange rates, consolidated revenue decreased $67.6 million during the nine months ended September 30, 2017 compared to the same period of 2016. Revenue growth from our iHM business was offset by lower revenue generated by our International and Americas outdoor businesses as a result of the sales of our businesses in Canada in 2017 and Australia and Turkey in 2016, which generated $13.7 million and $131.2 million in

~~revenue in the nine months ended September 30, 2017 and 2016, respectively.~~business.

Consolidated Direct Operating Expenses

Consolidated direct operating expenses increased ~~$30.2~~$12.6 million during the three months ended ~~September 30, 2017~~March 31, 2019 compared to the same period of ~~2016.~~2018. Excluding the ~~$7.2~~$17.2 million impact from movements in foreign exchange rates, consolidated direct operating expenses increased ~~$23.0~~$29.8 million during the three months ended ~~September 30, 2017~~March 31, 2019 compared to the same period of ~~2016.~~2018. Higher direct operating expenses inwas driven primarily by our iHM ~~business, due mostly to a $33.8 million prior year benefit resulting from the renegotiation of certain contracts, was partially offset by lower direct operating expenses in our International~~ and Americas outdoor businesses, primarily as a result of ~~the sales of our business in Australia in 2016 and Canada in 2017.~~

~~Consolidated direct operating~~higher variable expenses increased $35.9 million during the nine months ended September 30, 2017 compared to the same period of 2016. Excluding the $11.3 million impact from movements in foreign exchange rates, consolidated direct operating expenses increased $47.2 million during the nine months ended September 30, 2017 compared to the same period of 2016. Higher direct operating expenses in our iHM business, due mostly to a $33.8 million prior year benefit resulting from the renegotiation of certain contracts, were partially offsetdriven by ~~the impact of the sale of our businesses in Australia and Turkey in 2016 and Canada in 2017.~~revenue growth.

Consolidated Selling, General and Administrative (“SG&A”) Expenses

Consolidated SG&A expenses ~~increased $17.0~~decreased $17.3 million during the three months ended ~~September 30, 2017~~March 31, 2019 compared to the same period of ~~2016.~~2018. Excluding the ~~$2.6~~$5.6 million impact from movements in foreign exchange rates, consolidated SG&A expenses ~~increased $14.4~~decreased $11.7 million during the three months ended ~~September 30, 2017~~March 31, 2019 compared to the same period of ~~2016. Higher~~2018. Lower SG&A expenses ~~were~~resulted primarily ~~driven by~~from lower trade and barter expenses inby our iHM business.

Corporate Expenses

~~Consolidated SG&A~~Corporate expenses ~~increased $54.7~~decreased $4.0 million during the ~~nine~~three months ended ~~September 30, 2017~~March 31, 2019 compared to the same period of ~~2016. Excluding~~2018, primarily as a result of lower sponsor management fees, which have not been charged since the $3.0 million impact from movements in foreign exchange rates, consolidated SG&A expenses increased $57.7 million during the nine months ended September 30, 2017 compared to the same period of 2016. Higher SG&A expenses were primarily driven by trade and barter expenses in our iHM business and were partially offset by a decrease in SG&A expenses resulting primarily from the sales of our businesses in Australia and Turkey in 2016 and Canada in 2017.March 14, 2018 Petition Date.

~~Corporate Expenses~~

Corporate expenses decreased $8.9 million during the three months ended September 30, 2017 compared to the same period of 2016 primarily resulting from lower employee benefits and variable compensation expenses. For the three month period ended September 30, 2017, we incurred professional fees directly related to the notes exchange offers and term loan offers and, accordingly, such fees are reflected in Other Income (Expense), net as further discussed below.

Corporate expenses decreased $18.9 million during the nine months ended September 30, 2017 compared to the same period of 2016. Excluding the $1.9 million impact from movements in foreign exchange rates, corporate expenses decreased $17.0 million during the nine months ended September 30, 2017 compared to the same period of 2016. For the nine month period ended September 30, 2016, professional fees incurred in connection with our capital structure were reflected as part of corporate expenses. For the nine month period ended September 30, 2017, we incurred professional fees directly related to the notes exchange offers and term loan offers and, accordingly, such fees are reflected in Other Income (Expense), net as further discussed below. Employee benefit expense was also lower. The reduction in Corporate expenses was partially offset by higher spending on strategic revenue and efficiency initiatives.

~~Strategic Revenue and Efficiency Initiatives~~

Included in the amounts for direct operating expenses, SG&A and corporate expenses discussed above are expenses incurred in connection with our strategic revenue and efficiency initiatives. These costs consist primarily of severance related to workforce initiatives, consolidation of locations and positions, contract cancellation costs, consulting expenses, and other costs incurred in connection with improving our businesses. These costs are expected to provide benefits in future periods as the initiative results are realized.

Strategic revenue and efficiency costs were $6.0 million during the three months ended September 30, 2017. Of these expenses, $2.4 million was incurred by our iHM segment, $0.5 million was incurred by our Americas outdoor segment, $2.0 million was incurred by our International outdoor segment and $1.1 million was incurred by Corporate. Additionally, $1.8 million of these costs are reported within direct operating expenses, $3.1 million are reported within SG&A and $1.1 million are reported within corporate expenses.

Strategic revenue and efficiency costs were $6.0 million during the three months ended September 30, 2016. Of these expenses, $2.5 million was incurred by our iHM segment, $0.3 million was incurred by our Americas outdoor segment, $2.1 million was incurred by our International outdoor segment, $0.1 million was incurred by our Other category and $1.0 million was incurred by Corporate. Additionally, $1.9 million of these costs are reported within direct operating expenses, $3.1 million are reported within SG&A and $1.0 million are reported within corporate expenses.

Strategic revenue and efficiency costs were $31.0 million during the nine months ended September 30, 2017. Of these expenses, $14.4 million was incurred by our iHM segment, $1.4 million was incurred by our Americas outdoor segment, $6.0 million was incurred by our International outdoor segment, $4.1 million was incurred by our Other category and $5.1 million was incurred by Corporate. Additionally, $10.6 million of these costs are reported within direct operating expenses, $15.3 million are reported within SG&A and $5.1 million are reported within corporate expenses.

Strategic revenue and efficiency costs were $19.4 million during the nine months ended September 30, 2016. Of these expenses, $11.7 million was incurred by our iHM segment, $1.9 million was incurred by our Americas outdoor segment, $3.6 million was incurred by our International outdoor segment, $0.5 million was incurred by our Other segment and $1.7 million was incurred by Corporate. Additionally, $7.1 million of these costs are reported within direct operating expenses, $10.6 million are reported within SG&A and $1.7 million are reported within corporate expenses.

Depreciation and Amortization

Depreciation and amortization decreased ~~$8.7~~$38.1 million during the three months ended ~~September 30, 2017,~~March 31, 2019, compared to the same period of ~~2016. The decrease was~~2018, primarily ~~due to~~as a result of assets becoming fully depreciated or fully amortized, ~~and~~including intangible assets that were recorded as part of the ~~disposal~~merger of ~~assets related to the sale of our Australia business~~iHeartCommunications with iHeartMedia, Inc. in ~~2016.~~

Depreciation and amortization decreased $32.4 million during the nine months ended September 30, 2017, compared to the same period of 2016. The decrease was primarily due to assets becoming fully depreciated or fully amortized and the disposal of assets related to the sale of our outdoor non-strategic U.S. markets and Australia and Turkey businesses in 2016.2008.

Impairment Charges

~~The Company performs its~~We perform our annual impairment test on our goodwill, Federal Communication Commission ("FCC") licenses, billboard permits, and other intangible assets as of July 1 of each year. In addition, we test for impairment of ~~property, plant and equipment~~intangible assets whenever events and circumstances indicate that ~~depreciable~~such assets might be impaired. AsWe recognized non-cash impairment charges of $91.4 million in the three months ended March 31, 2019 on our indefinite-lived FCC licenses as a result of ~~these impairment tests, we recorded impairment charges~~an increase in our weighted average cost of ~~$7.6 million~~ during the three and nine months ended September 30, 2017, related to one of our iHM markets and one of our International outdoor businesses. During the three and nine months ended September 30, 2016, we recognized impairment charges of $8.0 million, related primarily to goodwill in one of our International outdoor businesses. Please seecapital. See Note 24 to the ~~Consolidated Financial Statements~~consolidated financial statements located in Item 1 of this Quarterly Report on Form 10-Q for a further description of the impairment charges.

Other Operating ~~Income (Expense),~~Expense, Net

Other operating expense, net ~~was $13.2~~of $3.5 million and $3.3 million for the three months ended ~~September 30, 2017, which primarily related~~March 31, 2019 and 2018, respectively, relates to net losses recognized on asset disposals.

Interest Expense

Interest expense decreased $303.6 million during the three months ended March 31, 2019 compared to the ~~$12.1 million loss, which includes $6.3~~same period of 2018 as a result of the Company ceasing to accrue interest expense on long-term debt reclassified as Liabilities subject to compromise as of the Petition Date, resulting in $397.5 million in ~~cumulative translation adjustments,~~contractual interest not being accrued in the three months ended March 31, 2019. This decrease was partially offset by higher interest expense incurred in conjunction with the refinancing of the $2,200.0 million 7.625% CCWH Senior Subordinated Notes due 2020 with $2,235.0 million in 9.25% CCWH Senior Subordinated Notes due 2024.

Loss on Investments, net

During the three months ended March 31, 2019, we recognized onlosses of $10.0 million primarily in connection with other-than-temporary declines in the ~~sale~~value of our ownership interest in a joint venture in Canada during the third quarter of 2017. Other operating income, net of $24.8 million for the nine months ended September 30, 2017 primarily related to the sale in the first quarter of 2017 of the Americas outdoor Indianapolis market exchanged for certain assets in Atlanta, Georgia, plus $43.1 million in cash, net of closing costs, resulting in a net gain of $28.9 million and a gain of $6.8 million recognizedinvestments. Loss on the sale of our ownership interest in a joint venture in Belgium in the second quarter of 2017, offset by the loss of $12.1 million recognized on the sale of our ownership interest in a joint venture in Canada.

~~Other operating expense,~~investments, net was ~~$0.5~~$0.1 million for the three months ended September 30, 2016, which primarily related to net losses on the sale of operating assets. Other operating income, net was $219.8 million for the nine months ended September 30, 2016, which primarily related to the sale of nine non-strategic outdoor markets in the first quarter of 2016, partially offset by the loss on the sales of our Australia and Turkey businesses.

~~Interest Expense~~

Interest expense increased $10.4 million during the three months ended September 30, 2017 compared to the same period of 2016 primarily due to an increase in variable interest rates. Interest expense decreased $1.0 million during the nine months ended September 30, 2017 compared to the same period of 2016. The decrease is primarily due to settlements of long-term debt in 2016, partially offset by an increase in variable interest rates, primarily as a result from an increase in LIBOR.

~~Loss on Investments, net~~

During the three and nine months ended September 30, 2017, we recognized losses of $2.2 million and $2.4 million, respectively, related to our investments. During the three and nine months ended September 30, 2016, we recognized a loss of $13.8 million, related to cost-method investments.March 31, 2018.

Gain (Loss) on Extinguishment of Debt, Net

~~During the third quarter~~Loss on extinguishment of 2016, Broader Media, LLC, an indirect wholly-owned subsidiary of the Company, repurchased approximately $383.0 million aggregate principal amount of iHeartCommunications' 10.0% Senior Notes due 2018 for an aggregate purchase price of approximately $222.2 million. In connection with this repurchase, we recognized a gain of $157.6 million.

~~Other Income (Expense), net~~

~~Other income,~~debt, net was ~~$2.2 million and other expense, net was $11.2~~$5.5 million for the three ~~and nine~~ months ended ~~September 30, 2017, respectively. These amounts relate~~March 31, 2019, which primarily resulted from a loss in relation to the refinancing of the CCWH Series A and Series B Senior Subordinated Notes Due 2020. Gain on extinguishment of debt, net ~~foreign exchange gains of $9.3 million and $21.6~~was $0.1 million for the three ~~and nine~~ months ended September 30, 2017, respectively, recognized in connection with intercompany notes denominated in foreign currencies, partially offset by expenses incurred in connection with the notes exchange offers and term loan offers of $7.2 million and $31.4 million for the three and nine months ended September 30, 2017, respectively, as described in "Liquidity and Capital Resources - Notes Exchange Offers and Term Loan Offers".March 31, 2018.

Other Expense, Net

Other expense, net was ~~$7.3 million and $47.1~~$0.8 million for the three ~~and nine~~ months ended ~~September 30, 2016, respectively,~~March 31, 2019, which related primarily ~~related~~ to net foreign exchange losses recognized in connection with intercompany notes denominated in foreign currencies.

Other expense, net was $1.0 million for the three months ended March 31, 2018, which related primarily to expenses incurred in connection with negotiations with lenders and other activities related to our capital structure, partially offset by net foreign exchange gains of $19.8 million recognized in connection with intercompany notes denominated in foreign currencies.

Reorganization Items, Net

During the three months ended March 31, 2019, we recognized Reorganization items, net of $36.1 million related to the Chapter 11 Cases, consisting primarily of professional fees. For the three months ended March 31, 2018, Reorganization items, net of $192.1 million included the write-off of deferred long-term debt fees and original issue discount on debt subject to compromise and professional fees. See Note 13 to our Consolidated Financial Statements included in Part I of this Quarterly Report on Form 10-Q.

Income Tax ~~Expense~~Benefit

The effective tax rate for the three ~~and nine~~ months ended ~~September 30, 2017~~March 31, 2019 and 2018 was ~~(0.8)%~~2.5% and ~~(6.7)%~~21.3%, respectively. The decrease in the effective tax rate ~~for~~is primarily attributed to the ~~three~~tax effects of the impairment charge recorded in relation to indefinite-lived FCC licenses in the current period, and ~~nine months ended September 30, 2016 was (24.5)%~~also attributed to year over year changes in the forecasted mix of earnings and ~~(13.2)%, respectively. The effective~~ tax rates ~~were primarily impacted by the valuation allowance recorded against deferred tax assets originating~~ in the ~~period from net operating losses~~jurisdictions in ~~U.S. federal, state and certain foreign jurisdictions.~~ which the Company operates.

iHM Results of Operations

Our iHM operating results were as follows:


(In thousands)	Three Months Ended September 30,				% Change		Nine Months Ended September 30,								% Change	Three Months Ended March 31,								% Change
	2017		2016			2017				2016				2019				2018						% Change
Revenue	$	859,531	$	857,099	% Change	0.3%		$	2,501,084			$	2,463,899		% Change		1.5%	$	765,810			$	744,568		2.9%
Direct operating expenses	265,795		229,668		15.7%		773,327				704,097				9.8%	267,114				241,066				10.8%
SG&A expenses	287,676		268,612		7.1%		894,669				812,344				10.1%	307,729				321,270				(4.2)%
Depreciation and amortization	58,089		60,691		(4.3)%		174,946				182,506				(4.1)%	30,417				58,333				(47.9)%
Operating income	$	247,971	$	298,128	(16.8)%		$	658,142		��	$	764,952			(14.0)%	$	160,550			$	123,899			29.6%

Three Months

iHM revenue increased ~~$2.4~~$21.2 million during the three months ended ~~September 30, 2017~~March 31, 2019 compared to the same period of ~~2016, with~~2018. Digital revenue increased $16.6 million driven by growth in national and digital revenue being partially offset by lower local revenue. National revenue grew due to an increase in national trade and barter, largely related to the iHeartMedia Music Festival, as well as increased national sales initiatives and investments, including our programmatic buying platforms,podcasting, primarily ~~offset by a decrease in national traffic and weather revenue. Local revenue decreased~~ as a result of ~~lower~~our acquisition of Stuff Media in October 2018, as well as other digital revenue, such as live radio and other on-demand services. National broadcast spot revenue increased $16.5 million, primarily as a result of increased programmatic buying by our national customers. Revenue from our Network businesses, including both Premiere and Total Traffic & Weather, also increased $6.1 million. These revenue increases were partially offset by ~~an increase~~a $19.4 million decrease in ~~local trade and barter.~~Local broadcast spot revenue.

iHM direct operating expenses increased ~~$36.1~~$26.0 million during the three months ended ~~September 30, 2017~~March 31, 2019 compared to the same period of ~~2016~~2018. The increase in Direct operating expenses was primarily driven by ~~a $33.8 million prior year benefit resulting~~higher digital royalties, content costs and compensation-related expenses from higher podcasting and digital subscription revenue. We also incurred higher production costs related to our events, including the ~~renegotiation of certain contracts.~~iHeartRadio Music Awards. iHM SG&A expenses ~~increased $19.1~~decreased $13.5 million during the three months ended ~~September 30, 2017~~March 31, 2019 compared to the same period of ~~2016~~2018 primarily due to ~~higher~~lower trade and barter expenses, ~~and higher variable expenses, including sales activation costs.~~

~~Nine Months~~

~~iHM revenue increased $37.2 million during~~primarily resulting from the ~~nine months ended September 30, 2017 compared to the same period of 2016, with growth in national revenue and other revenue being~~timing, partially offset by ~~lower local revenue. National revenue grew~~higher third-party digital sales activation fees.

due to an increase in national trade and barter, as well as increased sales in response to our national investments, including our programmatic buying platforms, primarily offset by a decrease in national traffic and weather revenue. Other revenue increased partially as a result of higher talent appearance fees. Local revenue decreased primarily as a result of lower spot revenue, partially offset by an increase in local trade and barter.

iHM direct operating expenses increased $69.2 million during the nine months ended September 30, 2017 compared to the same period of 2016 primarily driven by a $33.8 million prior year benefit resulting from the renegotiation of certain contracts, as well as higher content and programming costs, including talent fees and music license fees. iHM SG&A expenses increased $82.3 million during the nine months ended September 30, 2017 compared to the same period of 2016 primarily due to higher trade and barter expenses, investments in national and digital sales capabilities and higher variable expenses, including sales activation costs and commissions.

Americas Outdoor Advertising Results of Operations

Our Americas outdoor operating results were as follows:


(In thousands)	Three Months Ended September 30,				% Change		Nine Months Ended September 30,								% Change	Three Months Ended March 31,								% Change
	2017		2016			2017				2016				2019				2018						% Change
Revenue	$	316,587	$	322,997	% Change	(2.0)%		$	919,967			$	931,058		% Change		(1.2)%	$	272,722			$	255,847		6.6%
Direct operating expenses	141,609		142,989		(1.0)%		427,181				421,039				1.5%	130,519				124,873				4.5%
SG&A expenses	54,689		54,500		0.3%		165,538				167,660				(1.3)%	51,636				48,950				5.5%
Depreciation and amortization	47,035		47,242		(0.4)%		137,689				140,883				(2.3)%	39,496				44,504				(11.3)%
Operating income	$	73,254	$	78,266	(6.4)%		$	189,559			$	201,476			(5.9)%	$	51,071			$	37,520			36.1%

Three Months

Americas outdoor revenue ~~decreased $6.4~~increased $16.9 million during the three months ended ~~September 30, 2017~~March 31, 2019 compared to the same period of 2016. Excluding the $0.9 million impact from movements in foreign exchange rates, Americas outdoor revenue decreased $7.3 million during the three months ended September 30, 2017 compared to the same period of 2016.2018. The decrease in revenue is primarily due to a $4.2 million decrease in revenue resulting from the sale of our Canadian outdoor business, higher revenue in the prior year period due to the 2016 Olympics in Brazil and the exchange of outdoor markets in the first quarter of 2017. This was partially offset by increased digital revenue from new and existing airport contracts.

Americas outdoor direct operating expenses decreased $1.4 million during the three months ended September 30, 2017 compared to the same period of 2016. Excluding the $0.5 million impact from movements in foreign exchange rates, Americas outdoor direct operating expenses decreased $1.9 million during the three months ended September 30, 2017 compared to the same period of 2016. The decreaseincrease was driven by ~~a $3.6 million decrease in direct operating expenses resulting~~revenue from ~~the sale of our Canadian outdoor market~~airports and lower variable expenses due to the 2016 Olympics in Brazil, partially offset by higher fixed site lease expenses. Americas outdoor SG&A expenses increased $0.2 million during the three months ended September 30, 2017 compared to the same period of 2016. Excluding the $0.2 million impact from movements in foreign exchange rates, Americas outdoor SG&A expenses were flat during the three months ended September 30, 2017 compared to the same period of 2016.

~~Nine Months~~

Americas outdoor revenue decreased $11.1 million during the nine months ended September 30, 2017 compared to the same period of 2016. Excluding the $2.7 million impact from movements in foreign exchange rates, Americas outdoor revenue decreased $13.8 million during the nine months ended September 30, 2017 compared to the same period of 2016. The decrease in revenue was primarily due to a decrease indigital and print display revenues, as well as the $10.9 million impact resulting from the sales of non-strategic outdoor markets in the first quarter of 2016 and the sale of our Canadian business in the third quarter of 2017, and the exchange of outdoor markets in the first quarter of 2017. This was partially offset by increased digital revenues from new and existing airport contracts and deployments of new digital billboards.

Americas outdoor direct operating expenses increased ~~$6.1~~$5.6 million during the ~~nine~~three months ended ~~September 30, 2017~~March 31, 2019 compared to the same period of 2016. Excluding the $1.5 million impact from movements in foreign exchange rates, Americas outdoor direct operating expenses increased $4.6 million during the nine months ended September 30, 2017 compared to the same period of 2016.2018. The increase ~~in direct operating expenses~~ was driven by higher site lease expenses, primarily related to new and existing airport contracts and print displays, and the impact of a $2.9 million early termination lease payment received in 2016, partially offset by lower expense due to the $8.7 million impact resulting from the sales of non-strategic outdoor markets in the first quarter

~~of 2016 and the sale of our Canadian business in the third quarter of 2017, and the exchange of outdoor markets in the first quarter of 2017.~~increased revenue. Americas outdoor SG&A expenses ~~decreased $2.1~~increased $2.7 million during the ~~nine~~three months ended ~~September 30, 2017~~March 31, 2019 compared to the same period of ~~2016. Excluding the $0.9 million impact from movements in foreign exchange rates, Americas outdoor SG&A expenses decreased $3.0 million during the nine months ended September 30, 2017 compared~~2018, primarily related to the same period of 2016. The decrease in SG&A expenses was primarily due to lower bad debt expense and the $1.2 million impact resulting from the sales of non-strategic outdoor markets in the first quarter of 2016 and the sale of our Canadian business in the third quarter of 2017, and the exchange of outdoor markets in the first quarter of 2017.higher variable employee compensation expenses.

International Outdoor Advertising Results of Operations

Our International outdoor operating results were as follows:


(In thousands)	Three Months Ended September 30,				% Change		Nine Months Ended September 30,								% Change	Three Months Ended March 31,								% Change
	2017		2016			2017				2016				2019				2018						% Change
Revenue	$	328,502	$	346,224	% Change	(5.1)%		$	942,167			$	1,035,263		% Change		(9.0)%	$	314,394			$	342,551		(8.2)%
Direct operating expenses	214,491		219,261		(2.2)%		607,023				645,199				(5.9)%	217,308				236,416				(8.1)%
SG&A expenses	73,708		71,664		2.9%		204,531				220,872				(7.4)%	71,330				78,458				(9.1)%
Depreciation and amortization	32,886		37,018		(11.2)%		95,149				113,075				(15.9)%	34,581				38,565				(10.3)%
Operating income	$	7,417	$	18,281	(59.4)%		$	35,464			$	56,117			(36.8)%	$	(8,825	)		$	(10,888	)		(18.9)%

Three Months

International outdoor revenue decreased ~~$17.7~~$28.2 million during the three months ended ~~September 30, 2017~~March 31, 2019 compared to the same period of ~~2016.~~2018. Excluding the ~~$9.3~~$24.7 million impact from movements in foreign exchange rates, International outdoor revenue decreased ~~$27.0~~$3.5 million during the three months ended ~~September 30, 2017~~March 31, 2019 compared to the same period of ~~2016.~~2018. The decrease in revenue is due primarily to lower revenue as a ~~$35.2 million~~result of contracts not being renewed in certain countries, including Italy and Spain. This decrease ~~in revenue resulting from the sale of our business in Australia in 2016. This~~ was partially offset by growth ~~across other markets~~in multiple countries, including ~~China, Spain, Switzerland and the United Kingdom, primarily~~Sweden, which continues to benefit from new ~~contracts~~digital inventory and ~~digital expansion.~~strong market conditions.

International outdoor direct operating expenses decreased ~~$4.8~~$19.1 million during the three months ended ~~September 30, 2017~~March 31, 2019 compared to the same period of ~~2016.~~2018. Excluding the ~~$6.8~~$17.2 million impact from movements in foreign exchange rates, International outdoor direct operating expenses decreased ~~$11.6~~$1.9 million during the three months ended ~~September 30, 2017~~March 31, 2019 compared to the same period of ~~2016.~~2018. The decrease was ~~driven by a $20.1 million decrease~~primarily due to lower site lease expenses in ~~direct operating expenses resulting from the 2016 sale of our business in Australia,~~countries with lower revenue, including Italy, partially offset by ~~higher~~ site lease ~~expense in certain countries experiencing revenue growth.~~expenses related to new contracts. International outdoor SG&A expenses ~~increased $2.0~~decreased $7.1 million during the three months ended ~~September 30, 2017~~March 31, 2019 compared to the same period of ~~2016.~~2018. Excluding the ~~$2.4~~$5.6 million impact from movements in foreign exchange rates, International outdoor SG&A expenses decreased ~~$0.4~~$1.5 million during the three months ended ~~September 30, 2017~~March 31, 2019 compared to the same period of 2016. The decrease in SG&A expenses was primarily due to a $6.8 million decrease resulting from the sale of our business in Australia, partially offset by increases in bad debt expense primarily related to two specific accounts and employee-related expenses.

~~Nine Months~~

International outdoor revenue decreased $93.1 million during the nine months ended September 30, 2017 compared to the same period of 2016. Excluding the $20.8 million impact from movements in foreign exchange rates, International outdoor revenue decreased $72.3 million during the nine months ended September 30, 2017 compared to the same period of 2016. The decrease in revenue is due to a $106.5 million decrease in revenue resulting from the sale of our businesses in Australia and Turkey in 2016. This was partially offset by growth across other markets including Spain, the United Kingdom, Switzerland and China, primarily from new contracts and digital expansion.

International outdoor direct operating expenses decreased $38.2 million during the nine months ended September 30, 2017 compared to the same period of 2016. Excluding the $12.8 million impact from movements in foreign exchange rates, International outdoor direct operating expenses decreased $25.4 million during the nine months ended September 30, 2017 compared to the same period of 2016. The decrease was driven by a $64.5 million decrease in direct operating expenses resulting from the 2016 sales of our businesses in Australia and Turkey, partially offset by higher site lease and production expenses in countries experiencing revenue growth. International outdoor SG&A expenses decreased $16.3 million during the nine months ended September 30, 2017 compared to the same period of 2016. Excluding the $3.8 million impact from movements in foreign exchange rates, International outdoor SG&A expenses decreased $12.5 million during the nine months ended September 30, 20172018.

compared to the same period of 2016. The decrease in SG&A expenses was primarily due to a $20.6 million decrease resulting from the sale of our businesses in Australia and Turkey, partially offset by higher bad debt expense and higher spending related to growth in certain countries, as well as higher spending on strategic efficiency initiatives.

Reconciliation of Segment Operating Income (Loss) to Consolidated Operating Income


(In thousands)	Three Months Ended September 30,						Nine Months Ended September 30,						Three Months Ended March 31,
	2017			2016			2017			2016			2019			2018
iHM	$	247,971		$	298,128		$	658,142		$	764,952		$	160,550		$	123,899
Americas outdoor	73,254			78,266			189,559			201,476			51,071			37,520
International outdoor	7,417			18,281			35,464			56,117			(8,825		)	(10,888		)
Other	7,261			9,643			13,713			18,205			1,993			(370		)
Other operating income, net	(13,215		)	(505		)	24,785			219,768
Other operating expense, net													(3,549		)	(3,286		)
Impairment charges	(7,631		)	(8,000		)	(7,631		)	(8,000		)	(91,382		)	—
Corporate expense ⁽¹⁾	(86,752		)	(96,461		)	(261,006		)	(279,738		)	(81,598		)	(86,023		)
Consolidated operating income	$	228,305		$	299,352		$	653,026		$	972,780		$	28,260		$	60,852


(1)	Corporate expenses include expenses related to iHM, Americas outdoor, International outdoor and our Other category, as well as overall executive, administrative and support functions.

Share-Based Compensation Expense

We have 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.

Share-based compensation expenses are recorded in corporate expenses and were ~~$3.5~~$2.2 million and ~~$3.5~~$2.7 million for the three months ended ~~September 30, 2017~~March 31, 2019 and ~~2016, respectively, and $9.0 million and $10.4 million for the nine months ended September 30, 2017 and 2016,~~2018, respectively.

iHeartMedia Unvested Share-Based Compensation

As of ~~September 30, 2017,~~March 31, 2019, there was ~~$20.3~~$1.7 million of unrecognized compensation cost related to unvested share-based compensation arrangements with vesting based on service conditions and $15.1 million of unrecognized compensation cost related to unvested share-based compensation arrangements with vesting based on market performance and service conditions. As of the Effective Date of the Plan of Reorganization, all unvested shared-based compensation will be eliminated.

CCOH Unvested Share-Based Compensation

CCOH has granted restricted stock, restricted stock units and options to purchase shares of CCOH's Class A common stock to certain key individuals under equity incentive plans. Certain employees receive equity awards pursuant to our equity incentive plans. As of March 31, 2019, there was $13.5 million of unrecognized compensation cost related to unvested share-based compensation arrangements that will vest based on service conditions. This cost is expected to be recognized over a weighted average period of approximately ~~2.8~~2.9 years. In addition, as of September 30, 2017, there was $26.6 million of unrecognized compensation cost related to unvested share-based compensation arrangements that will vest based on market performance and service conditions. This cost will be recognized when it becomes probable that the performance condition will be satisfied.

LIQUIDITY AND CAPITAL RESOURCES

Cash Flows

The following discussion highlights cash flow activities during the ~~nine~~three months ended ~~September 30, 2017~~March 31, 2019 and ~~2016, respectively:~~2018:


(In thousands)	Nine Months Ended September 30,						Three Months Ended March 31,
	2017			2016			2019			2018
Cash provided by (used for):
Operating activities	$	(558,717	)	$	(272,578	)	$	88,987		$	175,476
Investing activities	$	(144,980	)	$	366,312		$	(52,411	)	$	(37,196	)
Financing activities	$	137,066		$	(322,583	)	$	1,996		$	(92,445	)

Operating Activities

Cash ~~used for~~provided by operating activities was ~~$558.7~~$89.0 million during the ~~nine~~three months ended ~~September 30, 2017~~March 31, 2019 compared to ~~$272.6~~$175.5 million of cash ~~used for~~provided by operating activities during the ~~nine~~three months ended ~~September 30, 2016.~~March 31, 2018. The ~~increase~~decrease in cash ~~used for~~provided by operating activities is primarily attributed to ~~lower operating income as well as~~cash paid in relation to Reorganization items, net of $33.9 million during the three months ended March 31, 2019 and changes in working capital balances, particularly accounts ~~receivable,~~payable, which were affected by ~~slower collections, and prepaid assets, partially offset by accounts payable due to~~ the timing of payments. Cash paid for interest was $103.9 million during the ~~nine~~three months ended ~~September 30, 2017 was~~ ~~$1,426.4 million~~ asMarch 31, 2019 compared to ~~$1,434.5~~$94.5 million ~~paid~~ during the ~~nine~~three months ended ~~September 30, 2016.~~March 31, 2018. The increase of $9.4 million in cash paid for interest is due primarily to the refinancing of the $2,200.0 million 7.625% CCWH Senior Subordinated Notes due 2020 with $2,235.0 million in 9.25% CCWH Senior Subordinated Notes due 2024 during the three months ended March 31, 2019.

Investing Activities

Cash used for investing activities of ~~$145.0~~$52.4 million during the ~~nine~~three months ended ~~September 30, 2017~~March 31, 2019 primarily reflected ~~$184.9~~$51.1 million used for capital ~~expenditures, partially offset by net cash proceeds from the sale of assets of $71.3 million, which included net cash proceeds from the sale of our outdoor Indianapolis market of $43.1 million.~~expenditures. We spent ~~$44.4~~$20.7 million for capital expenditures in our iHM segment primarily related to IT infrastructure, ~~$48.7~~$11.4 million in our Americas outdoor segment primarily related to the construction of new advertising structures, such as digital boards, ~~$83.9~~$14.8 million in our International outdoor segment primarily related to street furniture and transit advertising structures, including digital displays ~~$0.5 million in our Other category~~ and ~~$7.4~~$4.2 million in Corporate primarily related to equipment and software purchases.

Cash ~~provided by~~used for investing activities of ~~$366.3~~$37.2 million during the ~~nine~~three months ended ~~September 30, 2016~~March 31, 2018 primarily reflected net cash proceeds from the sale of nine non-strategic outdoor markets including Cleveland and Columbus, Ohio, Des Moines, Iowa, Ft. Smith, Arkansas, Memphis, Tennessee, Portland, Oregon, Reno, Nevada, Seattle, Washington and Wichita, Kansas of $592.3$38.7 million ~~in cash and certain advertising assets in Florida. Those sale proceeds were partially offset by $201.0 million~~ used for capital expenditures. We spent ~~$46.3~~$9.1 million for capital expenditures in our iHM segment primarily related to ~~leasehold improvements and~~ IT infrastructure, ~~$47.8~~$12.9 million in our Americas outdoor segment primarily related to the construction of new advertising structures, such as digital displays, ~~$97.5~~$15.3 million in our International outdoor segment primarily related to ~~billboard and~~ street furniture and transit advertising structures ~~$1.8 million in our Other category~~ and ~~$7.7~~$1.4 million in Corporate primarily related to equipment and software purchases.

Financing Activities

Cash provided by financing activities of ~~$137.1~~$2.0 million during the ~~nine~~three months ended ~~September 30, 2017~~March 31, 2019 primarily resulted from net proceeds from long-term debt issued by one of our international subsidiaries, as well as borrowings on our receivables-based credit facility. These proceeds were partially offset by dividends paid to non-controlling interests, which represents the portion of the dividends paid by CCOH in February 2017 to parties other than our subsidiaries that own CCOH stock, and a payment under our receivables-based credit facility.debt.

Cash used for financing activities of ~~$322.6~~$92.4 million during the ~~nine~~three months ended ~~September 30, 2016~~March 31, 2018 primarily resulted from payments on long-term debt and on our receivables based credit facility.

Liquidity After Filing the ~~purchase~~Chapter 11 Cases

iHeartCommunications' filing of ~~iHeartCommunications' 10.0% Senior Notes due 2018 for~~the Chapter 11 Cases constituted an ~~aggregate purchase price~~event of ~~$222.2 million and dividends paid~~default that accelerated its obligations under its debt agreements. Due to ~~non-controlling interests.~~

~~Anticipated Cash Requirements~~

~~Our primary sources of liquidity are cash on hand, cash flow from operations, borrowing capacity~~the Chapter 11 Cases, however, the creditors' ability to exercise remedies under iHeartCommunications' ~~domestic receivables-based credit facility, subject~~debt agreements were stayed as of March 14, 2018, the Petition Date, and continue to be stayed.

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”) through a Plan of Reorganization, which was confirmed in January 2019. Pursuant to the ~~limitations contained~~RSA, the Consenting Stakeholders have agreed to, among other things, support the Restructuring Transactions and vote in ~~iHeartCommunications' material financing agreements,~~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 ~~cash from liquidity-generating transactions. As~~disclosure statement, in form and substance reasonably acceptable to the Debtors and the Consenting Stakeholders, which were filed initially with the Bankruptcy Court on April 28, 2018, (ii) the filing of ~~September 30, 2017, we had $286.4 million~~a motion for approval of ~~cash~~the disclosure statement by May 31, 2018, which deadline was subsequently extended to June 22, 2018, and ~~cash equivalents~~which motion was filed with the Bankruptcy Court on ~~our balance sheet, including $222.4 million~~that date, (iii) the entry of ~~cash and cash equivalents held~~an order approving the disclosure statement by ~~our subsidiary, CCOH. Included~~July 27, 2018 (subject to one additional 20-day extension on the terms set forth in the ~~cash held~~RSA), which order was ultimately entered on September 20, 2018 (iv) the entry of an order confirming the plan of reorganization within 75 days of the entry of an order approving the disclosure statement, which order was ultimately entered on January 22, 2019 and (v) the Effective Date occurring by ~~CCOH~~March 14, 2019, which has not yet occurred but is ~~$206.1 million~~currently expected to occur on or about May 1, 2019. The Debtors satisfied the first and second milestones, but did not satisfy the subsequent milestones and as a result, certain of ~~cash held outside~~ the U.S. It is our policy to permanently reinvest the earnings of our non-U.S. subsidiaries as these earnings are generally redeployed in those jurisdictions for operating needs and continued functioning of their businesses. WeConsenting Stakeholders presently have the ~~ability and intent~~right to ~~indefinitely reinvest~~terminate the ~~undistributed earnings of consolidated subsidiaries based outside~~RSA, but as of the ~~United States, except that excess cash from our foreign operations may be transferred to our operations in~~date hereof the United States if needed to fund operations in the United States, subject to the foreseeable cash needs of our foreign operations and the mutual agreement of us and CCOH. If any excess cash held by our foreign subsidiaries is needed to fund operations in the United States, we could presently repatriate available funds without a requirement to accrue or pay U.S. taxes. This is a result of significant deficits, as calculated for tax law purposes, in our foreign earnings and profits, which gives us flexibility to make future cash distributions as non-taxable returns of capital.

As of September 30, 2017, we had a borrowing base of $499.1 million under iHeartCommunications' receivables-based credit facility, had $365.0 million of outstanding borrowings and had $49.1 million of outstanding letters of credit, resulting in $85.0 million of excess availability. However, any incremental borrowings under iHeartCommunications' receivables-based credit facility are further limited by the terms contained in iHeartCommunications' material financing agreements.RSA has not been terminated.

~~Our primary uses~~In general, as debtors-in-possession under the Bankruptcy Code, we are authorized to continue to operate as an ongoing business, but may not engage in transactions outside the ordinary course of ~~liquidity are~~business without the prior approval of the Bankruptcy Court. Pursuant to ~~fund~~first day and second day motions filed with the Bankruptcy Court, the Bankruptcy Court authorized us to conduct our ~~working capital, debt service, capital expenditures~~business activities in the ordinary course, including, among other things and ~~other obligations. At September 30, 2017, we had debt maturities totaling $366.9 million, $308.5 million (net~~subject to the terms and conditions of ~~$277.1 million due~~such orders, authorizing us to: (i) pay employees’ wages and related obligations; (ii) continue to ~~certain subsidiaries of iHeartCommunications) and $8,368.9 million in 2017, 2018 and 2019, respectively. A substantial amount of~~operate our cash ~~requirements are for debt service obligations. We anticipate having approximately $344.6 million of~~management system in a form substantially similar to prepetition practice; (iii) use cash ~~interest payment~~collateral on an interim basis; (iv) continue to honor certain obligations ~~during the three months ending December 31, 2017. Our significant interest payment obligations reduce our financial flexibility, make us more vulnerable~~related to ~~changes in operating performance~~on-air talent, station affiliates and ~~economic downturns, reduce our liquidity and negatively affect iHeartCommunications' ability~~royalty obligations; (v) continue to ~~obtain additional financing~~maintain certain customer programs; (vi) pay taxes in the ~~future.~~ordinary course; (vii) continue our surety bond program; and (viii) maintain our insurance program in the ordinary course.

In evaluating our ability to continue as a going concern, management considered the conditions and events that could raise substantial doubt about our ability to continue as a going concern for a period of 12 months following the date our financial statements were issued (November 8, 2017). Management considered our current financial condition and liquidity sources, including current funds available, forecasted future cash flows and our conditional and unconditional obligations due before November 8, 2018.

~~A substantial amount of our cash requirements are for debt service obligations. Although we have generated operating income in excess of $1.0 billion in each~~The filing of the ~~years ended December 31, 2016~~Chapter 11 Cases is intended to permit iHeartCommunications to reduce its indebtedness to achieve a manageable capital structure.

On April 28, 2018, the Debtors filed a plan of reorganization (as amended, the “Plan of Reorganization”) and ~~2015, we incurred net losses~~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 ~~had negative cash flows from operations~~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 ~~each~~voting on the Plan of ~~these years as~~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 ~~result~~fifth amended Plan of ~~significant cash interest payments arising from our substantial debt balance. For~~Reorganization and a supplement to the ~~nine months ended September 30, 2017, we used cash~~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 ~~$558.7 million~~holders of general unsecured claims for ~~operating activities, which included cash paid for interest~~voting on the Plan of ~~$1,426.4 million. Our current forecast indicates~~Reorganization, and the Debtors filed solicitation versions of the Plan of Reorganization and Disclosure Statement Supplement. On January 22, 2019, the Bankruptcy Court entered an order confirming the Plan of Reorganization.

Pursuant to the Plan of Reorganization, we will ~~continue~~issue new common stock, and special warrants to incur net losses and generate negative cash flows from operating activities as a result of our indebtedness and significant related interest expense. At September 30, 2017, the Company had debt maturities totaling $366.9 million, $308.5 million (net of $277.1 million due to certain of our subsidiaries) and $8,368.9 millionpurchase common stock (“Special Warrants”) in ~~2017, 2018 and 2019, respectively. In October 2017, we exchanged $45.0 million principal amount of 11.25% Priority Guarantee Notes due 2021 that were held by a subsidiary of iHeartCommunications~~exchange for ~~$45.0 million principal amount of 10.0% Senior Notes due 2018 that were held by unaffiliated third parties. After the exchanges, our debt maturities~~claims against or interests in the ~~next 12 months include, (i) $365.0 million outstanding under iHeartCommunications' receivables-based~~Debtors. Holders of claims with respect to the iHeartCommunications term loan credit facility, which matures on December 24, 2017, (ii) $51.5 million of 10% Senior Notes due January 15, 2018, (iii) $175.0 million of 6.875% Senior Notes due June 15, 2018 and (iv) $24.8 million of contractual AHYDO catch-up payments to be made on iHeartCommunications'agreement, priority guarantee notes, 14% Senior Notes due 2021 ~~on the interest payment due on August 1, 2018.Our forecast includes approximately $1.8 billion in cash interest payments~~and legacy notes will receive their pro rata share of a distribution of new term loans and new notes of iHeartCommunications and 99% of our new equity interests, subject to dilution by any common stock issued pursuant to a post-emergence equity incentive plan, as set forth in the ~~next 12 months,~~Plan of which $344.6 million is payable in the fourth quarter of 2017 and $548.2 million is payable in the first quarter of 2018. In addition, in certain circumstances, a committee of the CCOH board of directors formed for the specific purpose of monitoring the Intercompany Note (the “CCOH Intercompany Note Committee”) has the non-exclusive authorityReorganization to ~~demand payments under the Intercompany Note, as long as the CCOH board of directors declares a simultaneous dividend equal~~be filed prior to the ~~amount so demanded. As of November 8, 2017, the CCOH Intercompany Note Committee has the right pursuant to the~~Effective Date. The preliminary terms of the ~~settlement of~~new term loans and new notes are set forth in the derivative litigation filed by CCOH’s stockholders regarding the Intercompany Note but not the obligation, to make a demand on the Intercompany Note. If the CCOH Intercompany Note Committee exercises this right to demand a full repayment of the Intercompany NoteDisclosure Statement, and the CCOH board of directors declares a simultaneous dividend, based on the balance of the Intercompany Note outstanding at September 30, 2017, approximately $110.4 million would be payable to the public stockholders of CCOH. If we are unable to refinance the amounts outstanding under the receivables-based credit facility, the 10% Senior Notes due January 15, 2018 and/or the 6.875% Senior Notes due June 15, 2018 and take other steps to create additional liquidity, forecasted cash flows are not sufficient for us to meet our obligations, including upcoming interest payments and maturities on our outstanding debt, as they become due in the ordinary course of business for a period of 12 months following November 8, 2017. As discussed below, we have plans to reduce our principal and interest obligations and to create additional liquidity.

We are in advanced negotiations with potential lenders to refinance the amounts outstanding under iHeartCommunications' receivables-based credit facility and currently expect to refinance the amounts outstanding under that facility prior to its maturity. In addition, we are taking actions to maximize cash available to meet our obligations as they become due in the ordinary course of business. In addition, as more fully described in Note 3 of our financial statements, we launched notes exchange offers and term loan offers in March 2017, which notes exchange offers and term loan offers remain open as of November 8, 2017. We have engaged in discussions with many of our lenders and noteholders regarding thespecific terms of the ~~global exchange offers~~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 our new equity interests, subject to dilution by any common stock issued pursuant to a post-emergence equity incentive plan. On the Effective Date, the applicable Debtors will execute documents to effect the Separation of CCOH from iHeartMedia, and the equity interests of the successor to CCOH currently held by subsidiaries of iHeartMedia will be distributed to holders of claims with respect to the term loan ~~offers, which~~credit agreement and priority guarantee notes.

The Plan of Reorganization has been confirmed by the Bankruptcy Court, but there can be no assurance that the Effective Date for the Plan of Reorganization will occur on or about May 1, 2019 or at all.

During the pendency of the Chapter 11 Cases, iHeartCommunications' principal sources of liquidity have been ~~revised since launch~~limited to cash flow from operations, cash on hand and ~~remain subject~~borrowings under its DIP credit facility. Our ability to ~~substantial further revision, but no agreement has been reached with respect~~maintain adequate liquidity through the reorganization process and beyond depends on successful operation of our business, and appropriate management of operating expenses and capital spending. Our anticipated liquidity needs are highly sensitive to ~~those discussions~~changes in each of these and other factors.

On January 18, 2018, iHeartCommunications incurred $25.0 million of additional borrowings under the ~~discussions remain ongoing. These actions are intended~~revolving credit loan portion of its receivables based credit facility bringing its total outstanding borrowings under the facility to ~~mitigate those~~$430.0 million. In February 2018, iHeartCommunications prepaid $59.0 million on the revolving credit loan portion of this facility. On the Petition Date, we incurred a prepayment premium of $5.5 million upon acceleration of the loans and pre-petition accrued interest and fees

~~conditions~~totaling $2.4 million, which ~~raise substantial doubt about our ability~~were added to ~~continue as a going concern for a period of 12 months following November 8, 2017.~~

~~While we continue to work toward completing~~ the ~~notes exchange offers and the term loan offers or other similar transactions, refinancing the amounts~~principal amount outstanding under the ~~receivables-based~~facility, bringing the total outstanding borrowings under the facility to $379.0 million. On June 14, 2018, iHeartCommunications entered into a Superpriority Secured Debtor-in-Possession Credit Agreement (the “DIP Credit Agreement”), as parent borrower, with Holdings, Subsidiary Borrowers, Citibank, N.A., as a lender and administrative agent, the swing line lenders and letter of credit ~~facility and taking other actions to create additional liquidity, there is no assurance that the notes exchange offers~~issuers named therein and the ~~term loan offers or~~ other ~~similar transactions will be completed, that~~lenders from time to time party thereto. The entry into the DIP Credit Agreement was approved by an order of the Court (the “DIP Order”). We used proceeds from this facility (the "DIP Facility") and cash on hand to repay all amounts ~~outstanding~~owed under and terminate iHeartCommunications' receivables based credit facility. As of March 31, 2019, we had no borrowings under the receivables-based credit facility will be refinanced or that we will be able to create additional liquidity. Our ability to meet our obligations as they become due in the ordinary course of business for the next 12 months will depend on our ability to achieve forecasted results, our ability to conserve cash, our ability to refinance the amounts outstanding under iHeartCommunications' receivables-based credit facility, our ability to successfully complete the notes exchange offers and the term loan offers or other similar transactions and achieve sufficient cash interest savings therefrom and our ability to complete other liquidity-generating transactions. Based on the uncertainty of achieving these actions and the significance of the forecasted future negative cash flows resulting from our substantial debt balance, including anticipated future cash interest payments (including interest due in the fourth quarter of 2017 and in 2018) and the maturities of the $365.0 million in current borrowings under iHeartCommunications' receivables-based credit facility that matures December 24, 2017, the $51.5 million aggregate principal amount of 10% Senior Notes due January 15, 2018, the $175.0 million aggregate principal amount of 6.875% Senior Notes due June 15, 2018 and the $24.8 million of contractual AHYDO catch-up payments to be made on iHeartCommunications' 14% Senior Notes due 2021 beginning with the interest payment due on August 1, 2018, management has determined that there is substantial doubt as to our ability to continue as a going concern for a period of 12 months following November 8, 2017.

If we are unable to complete any of the actions described in the paragraph above, or if there are material adverse developments in our business, results of operations or liquidity, we may be forced to further reduce or delay our business activities and capital expenditures, sell material assets, seek additional capital or file for bankruptcy court protection. We cannot assure you that we would be able to accomplish any of these actions on a timely basis or on satisfactory terms, if at all.DIP Facility.

In connection with the cash management arrangements ~~for~~with CCOH, iHeartCommunications maintains an intercompany revolving promissory note payable by iHeartCommunications to CCOH (the "Intercompany Note"), which matures on ~~December~~May 15, ~~2017.~~2019. As of ~~September 30,~~December 31, 2017, ~~the balance of the Note was $1,051.3 million, all of which is payable on demand. While we intend to extend the maturity of the Intercompany Note prior to its maturity,~~ the principal amount outstanding under the Intercompany Note ~~is subject~~was $1,067.6 million. As a result of the Chapter 11 Cases, CCOH wrote down the balance of the note by $855.6 million during the fourth quarter of 2017 to ~~demand by CCOH or~~reflect the ~~CCOH~~estimated recoverable amount of the Intercompany Note ~~Committee. See "--CCOH Dividends" below.~~

as of December 31, 2017, based on CCOH management's best estimate of the cash settlement amount. As of the Petition Date, the principal amount outstanding under the Intercompany Note was $1,031.7 million. As of March 31, 2019, the asset recorded in respect of the Intercompany Note on CCOH's balance sheet was $154.8 million. Pursuant to an order entered by the Bankruptcy Court, as of March 14, 2018, the balance of the Intercompany Note is frozen, and following March 14, 2018, intercompany allocations that would have been reflected in adjustments to the balance of the Intercompany Note are instead reflected in an intercompany balance that accrues interest at a rate equal to the interest under the Intercompany Note. As of March 31, 2019, the liability recorded in respect of the post-petition intercompany balance on CCOH's balance sheet was $73.7 million. The ~~covenants in iHeartCommunications' senior secured credit facilities include a requirement~~Separation Agreement contemplates that ~~we receive an opinion from our auditors~~ in connection with ~~our year-end audit~~the Separation (i) the cash sweep arrangement under the Corporate Services Agreement between CCOH and iHeartCommunications will terminate, and (ii) any agreements or licenses requiring royalty payments to the Debtors by CCOH for trademarks or other intellectual property, will terminate effective as of December 31, 2018. The Debtors agreed to (i) the repayment of the post-petition intercompany balance outstanding in favor of the Debtors as of December 31, 2018, which was equal to $21.6 million as of that ~~is not subject~~date and (ii) the waiver of the set-off value of any royalties and IP license fees owed to iHeartCommunications equal to approximately $31.8 million from March 14, 2018 through December 31, 2018, such that the resulting intercompany balance on such date was $10.2 million in favor of CCOH, payable on the Effective Date. Since January 1, 2019, CCOH has incurred an additional intercompany liability of $52.1 million in favor of iHeartCommunications as of March 31, 2019. Pursuant to an amendment to the Separation Agreement (the "Separation Agreement Amendment"), CCOH has agreed to offset the $149 million amount owed by us on the Effective Date by $52.1 million, resulting in a ~~“going concern” or like qualification or exception. Even if we are able~~total net payment to ~~successfully refinance~~CCOH of approximately $107 million on the ~~amounts outstanding under iHeartCommunications' receivables-based credit facility~~Effective Date (including the $10.2 million payment discussed above). Pursuant to the Amendment, within 15 business days after the Effective Date, iHeartCommunications and ~~manage our liquidity challenges~~CCOH will pay the other any intercompany liability incurred from April 1, 2019 through the ~~end~~Effective Date. The Intercompany Note and Due to iHeartCommunications Note are eliminated in consolidation in our consolidated financial statements. The Bankruptcy Court approved a final order to allow us to continue to provide the day-to-day cash management services for CCOH during the Chapter 11 Cases. Upon the occurrence of ~~2017, if~~the Separation on the Effective Date, we ~~are unable~~will cease to ~~improve our liquidity forecast~~provide these services for ~~2018~~CCOH.

The Bankruptcy Court’s order also approves iHeartCommunications' continuing to provide services to CCOH pursuant to the Corporate Services Agreement during the Chapter 11 Cases. Upon the occurrence of the Separation on the Effective Date, we will enter into a new Transition Services Agreement with iHeartMedia Management Services, Inc. (“iHM Management Services”), iHeartCommunications and ~~refinance~~CCOH, for one year from the Effective Date (subject to certain rights of New CCOH to extend up to one additional year), pursuant to which iHM Management Services expects to provide, or ~~extend a significant portion~~expects iHeartCommunications, iHeart Operations, us or any of our ~~substantial 2019 debt maturities~~subsidiaries to provide, CCH with certain administrative and support services and other assistance which CCH will utilize in the conduct of its business as such business was conducted prior to the ~~completion~~Separation.

Following the Chapter 11 Cases, all interest payments due on debt held by the Debtors were stayed, which included $165.1 million on the Senior Secured Credit Facilities, $78.8 million on the 9.0% Priority Guarantee Notes due 2021, $45.0 million on the 9.0% Priority Guarantee Notes due 2022, $50.5 million on the 10.625% Priority Guarantee Notes due 2023, $49.0 million on the 11.25% Priority Guarantee Notes due 2021 and $124.7 million on the 14.0% Senior Notes due 2021 during the three months ended March 31, 2019.

The Consolidated Financial Statements included in this Quarterly Report on Form 10-Q have been prepared on a going concern basis of accounting, which contemplates continuity of operations, realization of assets, and satisfaction of liabilities and commitments in the normal course of business. The Consolidated Financial Statements do not reflect any adjustments that might result from the outcome of the ~~audit~~Chapter 11 Cases, including but not limited to future effects from relief or emergence. We have significant indebtedness and we have reclassified all of the Debtors' indebtedness other than the DIP Facility to Liabilities Subject to Compromise at March 31, 2019. Our level of indebtedness has adversely impacted and is continuing to adversely impact our

financial condition. As a result of our ~~2017~~ financial ~~statements, we anticipate that~~condition, the defaults under our ~~auditor’s year-end opinion will contain a “going concern” qualification,~~debt agreements, and ~~if we are unable to obtain a waiver or amendment of~~ the ~~covenant in~~risks and uncertainties surrounding the ~~senior secured credit facilities that requires us to deliver an unqualified auditor’s opinion, it will trigger a default under the senior secured credit facilities. We cannot assure you~~Chapter 11 Cases, substantial doubt exists that we will be able to ~~obtain such~~continue as a ~~waiver or amendment.~~going concern.

~~Except as set forth below under "Non-Payment~~Liquidity Following the Separation and Reorganization

The Separation and Reorganization will result in a new capital structure with significantly lower levels of ~~$57.1 Million~~long-term debt and a corresponding decrease in debt service requirements after emergence compared to historical debt levels. As a result of ~~iHeartCommunications' Legacy Notes Held by an Affiliate,"~~the Separation and Reorganization, our consolidated long-term debt is expected to decrease from $20.5 billion to approximately $5.8 billion. In 2018, we ~~were in compliance~~paid $398.0 million of cash interest, and incurred contractual interest of $1,189.1 million that was not paid. In 2017, we paid cash interest of $1,772.4 million. After the Effective Date, we anticipate that our annual cash interest payments will be less than $400 million.

In connection with the covenants contained in iHeartCommunications' material financing agreements as of September 30, 2017, including the maximum consolidated senior secured net debt to consolidated EBITDA limitation contained in iHeartCommunications' senior secured credit facilities. However, our future results are subject to significant uncertaintyReorganization and ~~there can be no assurance~~Separation, we anticipate that we will be ~~able~~required to ~~maintain compliance with these covenants.~~make certain cash payments, including approximately $107 million to be paid to CCOH in settlement of intercompany payable balances as of March 31, 2019, $17.7 million to cure contracts, $19.7 million for general unsecured claims, and approximately $124 million for professional fees (of which $99 million is to be paid on the Effective Date). Other anticipated cash requirements for the year ended December 31, 2019 include capital expenditures of approximately $129 million and $47.4 million to be paid in the fourth quarter of 2019 for the remaining consideration for two businesses acquired in the fourth quarter of 2018.

Following the Effective Date, we expect that our primary sources of liquidity will be cash on hand, cash flow from operations and borrowing capacity under the New ABL Facility. Upon emergence, we expect to have cash on hand of approximately $60 million after payment of settlement amounts and professional fees on the Effective Date. As of March 31, 2019, we had no borrowings outstanding under the DIP Facility, a borrowing base of $426.8 million, $59.0 million of outstanding letters of credit and had an availability block requirement of $37.5 million, resulting in $330.3 million of excess availability.

Following the Effective Date, we expect that our primary anticipated uses of liquidity will be to fund our working capital, debt service, capital expenditures and other obligations. These other obligations include dividend payments to be due to the investor of preferred stock of iHeart Operations, the terms of which are further described in Note 9 to our financial statements included herein, and any borrowings to be provided to CCOL under the iHC Line of Credit. Our ability to fund our working capital, debt service, capital expenditures and other obligations, and to comply with ~~these~~the financial covenants ~~in the future may be affected by events beyond~~under our ~~control, including the uncertainties described above and prevailing economic, financial and industry conditions. The breach of any covenants set forth in iHeartCommunications'~~new financing agreements, ~~would result in a default thereunder. An event of default would permit the lenders under a defaulted financing agreement to declare all indebtedness thereunder to be immediately due~~depends on our future operating performance and payable. Moreover, the lenders under the receivables-based credit facility under iHeartCommunications' senior secured credit facilities would have the option to terminate their commitments to make further extensions of credit thereunder. If we are unable to repay iHeartCommunications' obligations under any secured credit facility, the lenders could proceed against any assets that were pledged to secure such facility. In addition, a default or acceleration under any of iHeartCommunications' material financing agreements could cause a default under other of our obligations thatcash flows from operations, which are subject to ~~cross-default~~prevailing economic conditions and ~~cross-acceleration provisions. The threshold~~other factors, many of which are beyond our control. A significant amount ~~for a cross-default under the senior secured credit facilities and the indentures governing~~of our ~~outstanding bonds is $100.0 million. The default resulting from non-payment of the $57.1 million~~

~~of 5.50% Senior Notes described below is below the $100.0 million cross-default threshold in iHeartCommunications' debt documents but~~cash requirements will be ~~included in any determination as to whether that threshold has been met so long as that default is continuing.~~

~~Recent Liquidity-Generating Transactions~~

~~On February 7, 2017, iHeartCommunications completed an exchange offer of $476.4 million principal amount of its 10.0% Senior Notes due 2018~~ for $476.4 million principal amount of newly-issued 11.25% Priority Guarantee Notes due 2021. Of the $476.4 million principal amount of 11.25% Priority Guarantee Notes due 2021 issued in the exchange offer, $241.4 million principal amount was issued to subsidiaries of iHeartCommunications that participated in the exchange offer.

~~On February 9, 2017, CCOH declared a special dividend of $282.5 million using a portion of the proceeds from the sales of certain non-strategic U.S. outdoor markets~~debt service obligations, and ~~of our Australia outdoor business. On February 23, 2017,~~ we received 89.9% of that dividend, or approximately $254.0 million, with the remaining 10.1%, or approximately $28.5 million, paid to public stockholders of CCOH. This transaction improved our liquidity position in the short term. We cannot assure youanticipate that we will ~~enter into or consummate any liquidity-generating transactions, or that such transactions~~have approximately $0.4 billion of annual cash interest payments after the Effective Date. Our future success will ~~provide sufficient cash~~depend on our ability to ~~satisfy~~achieve our ~~liquidity needs, and any such transactions, if consummated, could adversely affect us in other ways. Future liquidity-generating transactions could have the effect of further increasing~~operating performance goals, address our annual cash interest ~~payment~~ obligations ~~reducing~~and reduce our ~~cash flow from operations or reducing cash available for capital expenditures and other business initiatives.~~

~~On July 10, 2017, a subsidiary of iHeartCommunications exchanged $15.6 million aggregate principal amount~~ outstanding of 10.0% Senior Notes due 2018 that were held by an unaffiliated third party for $15.6 million aggregate principal amount of its 11.25% Priority Guarantee Notes due 2021 that were held by a subsidiary of iHeartCommunications.

~~On July 31, 2017, iHeartCommunications borrowed an additional $60.0 million under its receivables-based credit facility.~~

On August 14, 2017, Clear Channel International B.V. ("CCIBV"), our indirect subsidiary, issued $150,000,000.0 million in aggregate principal amount of 8.75% Senior Notes due 2020 (the “New CCIBV Notes”). The New CCIBV Notes were issued as additional notes under the indenture governing CCIBV’s existing 8.75% Senior Notes due 2020 and were issued at a premium, which resulted in $156.0 million in proceeds. The New CCIBV Notes mature on December 15, 2020 and bear interest at a rate of 8.75% per annum, payable semi-annually in arrears on June 15 and December 15 of each year.

We have made and may in the future make repurchases and exchanges of indebtedness of iHeartCommunications. In addition, we frequently evaluate strategic opportunities both within and outside our existing lines of business. We expect from time to time to pursue dispositions or acquisitions, which could be material. iHeartCommunications' and its subsidiaries’ significant amount of indebtedness may limit our ability to pursue dispositions or acquisitions. The terms of our existing or future debt agreements may also restrict our ability to engage in these transactions.

~~Non-Payment of $57.1 Million of iHeartCommunications Legacy Notes Held by an Affiliate~~

Our wholly-owned subsidiary, Clear Channel Holdings, Inc. ("CCH"), owns $57.1 million aggregate principal amount of our 5.50% Senior Notes due 2016 (the "5.50% Senior Notes"). On December 9, 2016, a special committee of our independent directors decided to not repay the $57.1 million principal amount of the 5.50% Senior Notes held by CCH when the notes matured on December 15, 2016 and on December 12, 2016, we informed CCH of that decision. CCH informed us on that date that, while it retains its right to exercise remedies under the indenture governing the 5.50% Senior Notes (the "legacy notes indenture") in the future, it does not currently intend to, and it does not currently intend to request that the trustee, seek to collect principal amounts due or exercise or request enforcement of any remedy with respect to the nonpayment of such principal amount under the legacy notes indenture. As a result, $57.1 million of the 5.50% Senior Notes remain outstanding. We repaid the other $192.9 million of 5.50% Senior Notes held by other holders, and we intend to continue to pay interest on the 5.50% Senior Notes held by CCH for so long as such notes continue to remain outstanding.

For as long as we have at least $500 million of legacy notes outstanding, including the $57.1 million of 5.50% Senior Notes currently held by CCH, we will not have an obligation to grant certain additional security interests in favor of certain of our lenders and holders of our existing priority guarantee notes or the holders of our legacy notes under the "springing lien" described in the agreements governing that indebtedness, and the limitations existing with respect to the existing security interests will remain in place until up to 60 days following the date on which not more than $500 million aggregate principal amount of the legacy notes remain outstanding.debt.

~~Notes Exchange Offers and Term Loan Offers~~

On March 15, 2017, iHeartCommunications commenced exchange offers (the “notes exchange offers”) to exchange certain series of its outstanding debt securities (the “Existing Notes”) for new securities of the Company, iHeartCommunications and CC Outdoor Holdings, Inc., a wholly-owned subsidiary of the Company, and concurrent consent solicitations with respect to the terms of the Existing Notes. On March 15, 2017, the Company also commenced offers (the “term loan offers”) to amend its outstanding Term Loan D and Term Loan E borrowings under its senior secured credit facilities and/or to issue new securities of the Company, CC Outdoor Holdings, Inc., Broader Media, LLC and/or iHeartCommunications to the lenders depending on the scenario in which the notes exchange offers and the term loan offers close. The notes exchange offers were amended on April 14, 2017. Both the notes exchange offers and the term loan offers were open as of November 8, 2017. The terms of the notes exchange offers and the term loan offers have been revised and are subject to substantial further revision, and the offers may never be consummated, on the terms currently proposed or otherwise.

Sources of Capital

As of ~~September 30, 2017~~March 31, 2019 and December 31, ~~2016,~~2018, we had the following debt outstanding, net of cash and cash equivalents:


(In millions)	September 30, 2017			December 31, 2016			March 31, 2019			December 31, 2018
Senior Secured Credit Facilities:
Term Loan D Facility Due 2019	5,000.0			5,000.0			$	—		$	—
Term Loan E Facility Due 2019	1,300.0			1,300.0			—			—
Receivables Based Credit Facility Due 2017 ⁽¹⁾	365.0			330.0
Debtors-in-Possession Facility⁽¹⁾							—			—
9.0% Priority Guarantee Notes Due 2019	1,999.8			1,999.8			—			—
9.0% Priority Guarantee Notes Due 2021	1,750.0			1,750.0			—			—
11.25% Priority Guarantee Notes Due 2021⁽²⁾	825.5			575.0			—			—
9.0% Priority Guarantee Notes Due 2022	1,000.0			1,000.0			—			—
10.625% Priority Guarantee Notes Due 2023	950.0			950.0			—			—
Subsidiary Revolving Credit Facility due 2018⁽³⁾	—			—
CCO Receivables Based Credit Facility due 2023							—			—
Other Secured Subsidiary Debt	8.7			21.0			3.8			3.9
Total Secured Debt	13,199.0			12,925.8			3.8			3.9

14.0% Senior Notes Due 2021	1,763.9			1,729.2			—			—
Legacy Notes:
5.5% Senior Notes Due 2016⁽⁴⁾	—			—
6.875% Senior Notes Due 2018	175.0			175.0			—			—
7.25% Senior Notes Due 2027	300.0			300.0			—			—
10.0% Senior Notes Due 2018⁽²⁾	96.5			347.0
Subsidiary Senior Notes:
CCWH Senior Notes:
6.5% Series A Senior Notes Due 2022	735.8			735.8			735.8			735.8
6.5% Series B Senior Notes Due 2022	1,989.2			1,989.2			1,989.2			1,989.2
Subsidiary Senior Subordinated Notes:
7.625% Series A Senior Notes Due 2020	275.0			275.0
7.625% Series B Senior Notes Due 2020	1,925.0			1,925.0
Subsidiary 8.75% Senior Notes due 2020⁽⁵⁾	375.0			225.0
CCWH Senior Subordinated Notes:
7.625% Series A Senior Notes Due 2020⁽²⁾							—			275.0
7.625% Series B Senior Notes Due 2020⁽²⁾							—			1,925.0
9.25% Senior Notes Due 2024⁽²⁾							2,235.0			—
Clear Channel International B.V. 8.75% Senior Notes due 2020							375.0			375.0
Other Subsidiary Debt	25.6			28.0			46.6			46.1
Purchase accounting adjustments and original issue discount	(142.8		)	(167.0		)	(0.9		)	(0.7		)
Long-term debt fees	(102.3		)	(123.0		)	(44.3		)	(25.9		)
Liabilities subject to compromise⁽³⁾							15,143.7			15,149.5
Total Debt	20,614.9			20,365.0			20,483.9			20,472.9
Less: Cash and cash equivalents	286.4			845.0			448.1			406.5
	$	20,328.5		$	19,520.0		$	20,035.8		$	20,066.4

(1)

The ~~receivables-based credit facility~~Debtors-in-Possession Facility (the "DIP" Facility), which matures on the earlier of the emergence date from the Chapter 11 Cases or June 14, 2019, provides for borrowings of up to $450.0 million. The DIP Facility also includes a feature to convert into an exit facility at emergence, upon meeting certain conditions. As of March 31, 2019, the ~~lesser of $535.0 million (the revolving credit commitment) or the~~Company had a borrowing base ~~amount, as defined~~of $426.8 million under ~~the receivables-based~~iHeartCommunications' DIP Facility, had no outstanding borrowings, had $59.0 million of outstanding letters of credit ~~facility, subject to certain limitations contained~~and had an availability block requirement of $37.5 million, resulting in $330.3 million of excess availability.

~~iHeartCommunications' material financing agreements. As of September 30, 2017, we had $85.0 million of availability under the receivables-based credit facility.~~

(2)

On February ~~7, 2017, iHeartCommunications completed an exchange offer~~4, 2019, CCWH, a subsidiary of ~~$476.4~~CCOH, delivered a conditional notice of redemption calling all of its outstanding $275.0 million aggregate principal amount of ~~its 10.0%~~7.625% Series A Senior Subordinated Notes due ~~2018 for $476.4~~2020 (the “Series A CCWH Subordinated Notes”) and $1,925.0 million aggregate principal amount of 7.625% Series B Senior Subordinated Notes due 2020 (the “Series B CCWH Subordinated Notes” and together with the Series A CCWH Subordinated Notes, the “CCWH Subordinated Notes”) for redemption on March 6, 2019. The redemption was conditioned on the closing of the offering of $2,235.0 million of newly-issued ~~11.25%~~9.25% Senior Subordinated Notes due 2024 (the "New CCWH Subordinated Notes"). At the closing of such offering on February 12, 2019, CCWH deposited with the trustee for the CCWH Subordinated Notes a portion of the proceeds from the new notes in an amount sufficient to pay and discharge the principal amount outstanding, plus accrued and unpaid interest on the CCWH Subordinated Notes to, but not including, the redemption date. CCWH irrevocably instructed the trustee to apply such funds to the full payment of the CCWH Subordinated Notes on the redemption date. Concurrently therewith, CCWH elected to satisfy and discharge the indentures governing the CCWH

Subordinated Notes in accordance with their terms and the trustee acknowledged such satisfaction and discharge. As a result of the satisfaction and discharge of the indentures, CCWH and the guarantors of the CCWH Subordinated Notes have been released from their remaining obligations under the indentures and the CCWH Subordinated Notes.

(3)

In connection with our 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, ~~which were issued as "additional notes" under~~ the ~~indenture governing the 11.25% Priority Guarantee Notes due 2021. Of the $476.4~~$870.5 million ~~principal amount~~ of 11.25% Priority Guarantee Notes due 2021, ~~issued in~~ the ~~exchange offer, $241.4~~$1,000.0 million ~~principal amount was issued to subsidiaries of iHeartCommunications that participated in~~outstanding under the exchange offer. On July 10, 2017, iHeartCommunications exchanged $15.6 million principal amount of its 10.0% Senior Notes due 2018 that were held by an unaffiliated third party for $15.6 million principal amount of its 11.25%9.0% Priority Guarantee Notes due ~~2021 that were held by a subsidiary of iHeartCommunications. In October 2017, iHeartCommunications exchanged $45.0~~2022, the $950.0 million ~~principal amount of its 10.0% Senior Notes due 2018 that were held by unaffiliated third parties for $45.0 million principal amount of its 11.25%~~outstanding under the 10.625% Priority Guarantee Notes due ~~2021 that were held by a subsidiary of iHeartCommunications.~~


~~(3)~~	~~The subsidiary revolving credit facility provides for borrowings of up to $75.0~~2023, $6.0 million ~~(the revolving credit commitment).~~

~~(4)~~

~~In December 2016, iHeartCommunications repaid at maturity $192.9~~outstanding Other Secured Subsidiary Debt, the $1,781.6 million ~~of 5.5%~~outstanding under the 14.0% Senior Notes due ~~2016~~2021, the $475.0 million outstanding under the Legacy Notes and ~~did not pay $57.1~~$10.8 million outstanding Other Subsidiary Debt have been reclassified to Liabilities subject to compromise in our Consolidated Balance Sheet as of March 31, 2019. As of the ~~notes held by a subsidiary of the Company. The $57.1 million of aggregate principal amount remains outstanding and is eliminated for purposes of consolidation of the Company's financial statements.~~

~~(5)~~

~~On August 14, 2017, CCIBV, our indirect subsidiary, issued $150,000,000.0 million~~Petition Date, we ceased accruing interest expense in ~~aggregate principal amount of 8.75% Senior Notes due 2020 (the “New CCIBV Notes”). The New CCIBV Notes were issued~~relation to long-term debt reclassified as ~~additional notes under the indenture governing CCIBV’s existing 8.75% Senior Notes due 2020.~~Liabilities subject to compromise.

~~Our subsidiaries~~CCWH Senior Subordinated Notes

As of March 31, 2019, the New CCWH Senior Subordinated Notes represented $2,235.0 million aggregate principal amount of indebtedness outstanding. On February 4, 2019, CCWH delivered a conditional notice of redemption calling all of its outstanding CCWH Subordinated Notes for redemption on March 6, 2019. The redemption was conditioned on the closing of the offering of $2,235.0 million of New CCWH Subordinated Notes. At the closing of such offering on February 12, 2019, CCWH deposited with the trustee for the CCWH Subordinated Notes a portion of the proceeds from the new notes in an amount sufficient to pay and discharge the principal amount outstanding, plus accrued and unpaid interest on the CCWH Subordinated Notes to, but not including, the redemption date. CCWH irrevocably instructed the trustee to apply such funds to the full payment of the CCWH Subordinated Notes on the redemption date. Concurrently therewith, CCWH elected to satisfy and discharge the indentures governing the CCWH Subordinated Notes in accordance with their terms and the trustee acknowledged such discharge and satisfaction. As a result of the satisfaction and discharge of the indentures, CCWH and the guarantors of the CCWH Subordinated Notes have been released from ~~time~~their remaining obligations under the indentures and the CCWH Subordinated Notes.

The New CCWH Subordinated Notes were issued pursuant to ~~time repurchased certain debt obligations~~an indenture, dated as of ~~iHeartCommunications~~February 12, 2019 (the “Indenture”), among Clear Channel Worldwide, CCOH, Clear Channel Outdoor, Inc. (“CCOI”) and ~~our equity securities and equity securities outstanding of~~the other guarantors party thereto (collectively with CCOH and ~~may in~~CCOI, the ~~future,~~“Guarantors”), and U.S. Bank National Association, as ~~part~~trustee, paying agent, registrar and transfer agent (the “Trustee”). The New CCWH Subordinated Notes mature on February 15, 2024 and bear interest at a rate of various financing and investment strategies, purchase additional outstanding indebtedness of iHeartCommunications or its subsidiaries or our equity securities and equity securities outstanding of CCOH, in tender offers, open market purchases, privately negotiated transactions or otherwise. We or our subsidiaries may also sell certain assets, securities or properties. These purchases or sales, if any, could have a material positive or negative impact on our liquidity available9.25% per annum. Prior to repay outstanding debt obligations or on our consolidated results of operations. These transactions could also require or result in amendments to the agreements governing outstanding debt obligations or changes in our leverage or other financial ratios, which could have a material positive or negative impact on our ability to comply with the covenants contained in iHeartCommunications' debt agreements. These transactions, if any, will depend on prevailing market conditions, our liquidity requirements, contractual restrictions and other factors. The amounts involved may be material.

~~Senior Secured Credit Facilities~~

The senior secured credit facilities require iHeartCommunications to comply on a quarterly basis with a financial covenant limiting the ratio of consolidated secured debt, net of cash and cash equivalents, to consolidated EBITDA (as defined by iHeartCommunications' senior secured credit facilities) for the preceding four quarters. iHeartCommunications' secured debt consists of the senior secured credit facilities, the receivables-based credit facility, the priority guarantee notes and certain other secured subsidiary debt. As required by the definition of consolidated EBITDA in iHeartCommunications' senior secured credit facilities, iHeartCommunications' consolidated EBITDA for the preceding four quarters of $1.7 billion is calculated as operating income (loss) before depreciation, amortization, impairment charges and other operating income (expense), net plus share-based compensation and is further adjusted for the following items: (i) costs incurredCCOH’s separation from iHeartMedia, Inc. in connection with the ~~closure and/~~completion of iHeartMedia, Inc.’s Chapter 11 proceedings, interest will be payable to the Trustee weekly in arrears. Following the Separation, interest will be payable to the Trustee semi-annually. In each case, interest will be payable to the holders of the New CCWH Subordinated Notes semi-annually on February 15 and August 15 of each year, beginning on August 15, 2019.

The New CCWH Subordinated Notes and the guarantees of the New CCWH Subordinated Notes are unsecured senior subordinated obligations that rank pari passu in right of payment to all senior subordinated indebtedness of Clear Channel Worldwide and the Guarantors, junior to all senior indebtedness of Clear Channel Worldwide and the Guarantors, including Clear Channel Worldwide’s outstanding 6.50% Series A Senior Notes and Series B Senior Notes due 2022 (the “Senior Notes”), and senior to all future subordinated indebtedness of Clear Channel Worldwide and the Guarantors that expressly provides that it is subordinated to the New CCWH Subordinated Notes. Following the satisfaction of certain conditions, including that the Senior Notes are no longer outstanding and at least a portion of such notes has been refinanced with senior secured indebtedness, the New CCWH Subordinated Notes and the guarantees of the New CCWH Subordinated Notes will cease to be subordinated obligations and thereafter will rank pari passu in right of payment with all senior indebtedness of Clear Channel Worldwide and the Guarantors (the “step-up”). There can be no assurance that the step-up will ever occur and that the New CCWH Subordinated Notes and the guarantees will ever cease to be subordinated indebtedness of Clear Channel Worldwide and the Guarantors.

Clear Channel Worldwide may redeem the New CCWH Subordinated Notes at its option, in whole or ~~consolidation~~part, at any time prior to February 15, 2021, at a price equal to 100% of ~~facilities, retention charges, consulting fees~~the principal amount of the New CCWH Subordinated Notes redeemed, plus a make-whole premium, plus accrued and unpaid interest to the redemption date. Clear Channel Worldwide may redeem the New CCWH Subordinated Notes, in whole or in part, on or after February 15, 2021, at the redemption prices set forth in the Indenture plus accrued and unpaid interest to the redemption date. At any time prior to February 15, 2021, Clear Channel Worldwide may elect to redeem up to 40% of the aggregate principal amount of the New CCWH Subordinated Notes at a redemption price equal to 109.25% of the principal amount thereof, plus accrued and unpaid interest to the redemption date, with the net proceeds of one or more equity offerings. In addition, Clear Channel Worldwide may redeem up to 20% of the aggregate principal amount of the New CCWH Subordinated Notes at any time prior to February 15, 2021, using the net proceeds from certain other equity offerings at 103% of the principal amount of the New CCWH Subordinated Notes. Clear Channel Worldwide will be permitted activities; (ii) extraordinary, non-recurring or unusual gains or losses or expenses and severance; (iii) non-cash charges; (iv) cash received from nonconsolidated affiliates; and (v) various other items.to use these two redemption options concurrently but will not be permitted to redeem, in the aggregate, more than 40% of the principal amount of the New CCWH Subordinated Notes pursuant to these options.

The following table reflects a reconciliation of consolidated EBITDA (as defined by iHeartCommunications' senior secured credit facilities) to operating income and net cash provided by operating activities for the four quarters ended September 30, 2017:

Four Quarters Ended
(In Millions) September 30, 2017
Consolidated EBITDA (as defined by iHeartCommunications' senior secured credit facilities) $ 1,661.9
Less adjustments to consolidated EBITDA (as defined by iHeartCommunications' senior secured credit facilities):
Costs incurred in connection with the closure and/or consolidation of facilities, retention charges, consulting fees and other permitted activities (44.9 )
Extraordinary, non-recurring or unusual gains or losses or expenses and severance (as referenced in the definition of consolidated EBITDA in iHeartCommunications' senior secured credit facilities) (38.3 )
Non-cash charges (1.9 )
Other items 68.9
Less: Depreciation and amortization, Impairment charges, Other operating income (expense), net and Share-based compensation expense (460.8 )
Operating income 1,184.9
Plus: Depreciation and amortization, Impairment charges, Gain (loss) on disposal of operating and fixed assets, and Share-based compensation expense 454.2
Less: Interest expense (1,848.9 )
Less: Current income tax expense (29.0 )
Plus: Other income (expense), net (37.3 )
Adjustments to reconcile consolidated net loss to net cash provided by operating activities (including Provision for doubtful accounts, Amortization of deferred financing charges and note discounts, net and Other reconciling items, net) 43.3
Change in assets and liabilities, net of assets acquired and liabilities assumed (67.3 )
Net cash used for operating activities $ (300.1 )

~~The maximum ratio permitted under this financial covenant was 8.75:1 for the four quarters ended September 30, 2017. As of September 30, 2017, our ratio was 7.8:1.~~

~~In addition, the senior secured credit facilities include negative~~Indenture contains covenants that ~~subject to significant exceptions,~~ limit ~~iHeartCommunications'~~CCOH’s ability and the ability of its restricted subsidiaries to, among other things:

• (i) incur or guarantee additional ~~indebtedness;~~

•debt or issue certain preferred stock; (ii) redeem, purchase or retire subordinated debt; (iii) make certain investments; (iv) create ~~liens~~restrictions on ~~assets;~~

•~~engage in mergers, consolidations, liquidations and dissolutions;~~

•~~sell assets;~~

•~~pay~~the payment of dividends ~~and distributions~~ or ~~repurchase iHeartCommunications' capital stock;~~

•~~make investments, loans, or advances;~~

•~~prepay certain junior indebtedness;~~

•~~engage in~~other amounts from CCOH’s restricted subsidiaries that are not Guarantors; (v) enter into certain transactions with affiliates; (vi) merge or consolidate with another person, or sell or otherwise dispose of all or substantially all of CCOH’s assets; (vii) sell certain assets, including capital stock of CCOH’s subsidiaries; (viii) designate CCOH’s subsidiaries as unrestricted subsidiaries, (ix) pay dividends, redeem or repurchase capital stock or make other restricted payments; and (x) in the event that the step-up occurs and New CCWH Subordinated Notes cease to be subordinated, incur certain liens.

•~~amend material agreements governing certain junior indebtedness; and~~

•~~change lines of business.~~

The senior secured credit facilities include certain customary representations and warranties, affirmative covenants and events of default, including payment defaults, breach of representations and warranties, covenant defaults, cross-defaults to certain indebtedness, certain events of bankruptcy, certain events under ERISA, material judgments,Upon the ~~invalidity of material provisions~~occurrence of the ~~senior secured credit facilities documentation,~~Separation on the ~~failure~~Effective Date, Clear Channel Worldwide and the Guarantors will no longer be subsidiaries of ~~collateral under the security documents for the senior secured credit facilities, the failure of the senior secured credit facilities to~~CCOH and we will no longer be senior debt under the subordination provisions of certain of iHeartCommunications' subordinated debt and a change of control. If an event of default occurs, the lenders under the senior secured credit facilities will be entitled to take various actions, including the acceleration of all amounts due under the senior secured credit facilities and all actions permitted to be taken by a secured creditor.

~~Disposals~~

In January 2017, we sold our Indianapolis, Indiana outdoor market in exchange for certain assets in Atlanta, Georgia, plus approximately $43.1 million in cash, net of closing costs. A net gain of $28.9 million was recognized relatedsubject to the ~~sale.~~

~~During the third quarter of 2017, Americas outdoor sold its ownership interest~~Indenture or include this indebtedness in a joint venture in Canada. As a result, the Company recognized a net loss on sale of $12.1 million, including a $6.3 million cumulative translation adjustment, which is included within Other operating income (expense), net.our consolidated financial statements.

Uses of Capital

Debt Repayments, Maturities and Other

On February ~~7, 2017, iHeartCommunications completed~~4, 2019, CCWH delivered a conditional notice of redemption calling all of its outstanding CCWH Subordinated Notes for redemption on March 6, 2019. The redemption was conditioned on the closing of the offering of $2,235.0 million of New CCWH Subordinated Notes. At the closing of such offering on February 12, 2019, CCWH deposited with the trustee for the CCWH Subordinated Notes a portion of the proceeds from the new notes in an ~~exchange offer of $476.4 million~~amount sufficient to pay and discharge the principal amount outstanding, plus accrued and unpaid interest on the CCWH Subordinated Notes to, but not including, the redemption date. CCWH irrevocably instructed the trustee to apply such funds to the full payment of ~~iHeartCommunications' 10.0% Senior~~the CCWH Subordinated Notes ~~due 2018 for $476.4 million principal amount~~on the redemption date. Concurrently therewith, CCWH elected to satisfy and discharge the indentures governing the CCWH Subordinated Notes in accordance with their terms and the trustee acknowledged such discharge and satisfaction. As a result of ~~newly-issued 11.25% Priority Guarantee~~the satisfaction and discharge of the indentures, CCWH and the guarantors of the CCWH Subordinated Notes ~~due 2021, which were issued as “additional notes”~~have been released from their remaining obligations under the ~~indenture governing~~indentures and the 11.25% Priority Guarantee Notes due 2021. Of the $476.4 million principal amount of 11.25% Priority Guarantee Notes due 2021 issued in the exchange offer, $241.4 million principal amount was issued to subsidiaries of iHeartCommunications that participated in the exchange offer.

On January 31, 2017, iHeartCommunications repaid $25.0 million of the amount borrowed under its receivables-based credit facility and on July 31, 2017, we borrowed an additional $60.0 million under our receivables-based credit facility, resulting in total outstanding borrowings under this facility of $365.0 million as of September 30, 2017.

On July 10, 2017, a subsidiary of iHeartCommunications exchanged $15.6 million principal amount of iHeartCommunications' 11.25% Priority Guarantee Notes due 2021 that were held by a subsidiary of iHeartCommunications for $15.6 million principal amount of iHeartCommunications' 10.0% Senior Notes due 2018 that were held by an unaffiliated third party.

In October 2017, iHeartCommunications exchanged $45.0 million principal amount of 11.25% Priority Guarantee Notes due 2021 that were held by a subsidiary of iHeartCommunications for $45.0 million principal amount of iHeartCommunications' 10.0% Senior Notes due 2018 that were held by unaffiliated third parties.CCWH Subordinated Notes.

Certain Relationships with the Sponsors

We are party to a management agreement with certain affiliates of the Sponsors and certain other parties pursuant to which such affiliates of the Sponsors ~~will provide~~provided management and financial advisory services until December 31, 2018. These arrangements ~~require~~required 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~~In connection with the ~~three and nine months ended September 30, 2017,~~Reorganization, the Company is not recognizing management fees in the post-petition period. The Company recognized management fees and reimbursable expenses of ~~$3.8 million and $11.4 million, respectively, and $3.9 million and $11.5~~$3.1 million for the three ~~and nine~~ months ended ~~September 30, 2016, respectively.~~March 31, 2018. As of the Effective Date of the Plan of Reorganization, these management fees will be waived.

CCOH Dividends

In connection with the cash management arrangements ~~for~~with CCOH, iHeartCommunications ~~maintains~~maintained an intercompany revolving promissory note payable by iHeartCommunications to CCOH (the “Intercompany Note”), which consists of the net activities resulting from day-to-day cash management services provided by iHeartCommunications to CCOH. As of ~~September 30, 2017,~~March 14, 2018, the ~~balance of~~principal amount outstanding under the Intercompany Note was ~~$1,051.3 million, all of which is payable on demand.~~$1,031.7 million. The Intercompany Note is eliminated in consolidation in our consolidated financial statements.

The Intercompany Note previously was the subject of litigation. Pursuant to the terms of the settlement of that litigation, CCOH’s board of directors established an intercompany note committee for the specific purpose of monitoring the Intercompany Note. The CCOH Intercompany Note Committee has the non-exclusive authority, pursuant to the terms of its charter, to demand payments under the Intercompany Note under certain specified circumstances tied to the Company’s liquidity or the amount

outstanding under the Intercompany Note as long as CCOH makes a simultaneous dividend equal to the amount so demanded. If the specified circumstances tied to the Company’s liquidity occur, the CCOH Intercompany Note Committee is authorized to demand repayment of up to the full principal amount of the Intercompany Note, if it declares a simultaneous dividend to CCOH’s stockholders in the same amount. As ~~of November 8, 2017, the CCOH Intercompany Note Committee has the right pursuant to the terms~~a result of the ~~settlement of~~Chapter 11 Cases, the ~~derivative litigation filed by CCOH’s stockholders regarding~~balance on the Intercompany Note ~~but not~~is currently frozen and any payment pursuant to such demand would be subject to the ~~obligation, to make~~approval of the Bankruptcy Court.

As a ~~demand on~~result of the filing of the Chapter 11 Cases, the balance under the Intercompany ~~Note. Based on~~Note has become immediately due and payable. Pursuant to an order entered by the ~~$1,051.3 million~~Bankruptcy Court, as of March 14, 2018, the balance of the Intercompany Note is frozen, and following March 14, 2018, intercompany allocations that would have been reflected in adjustments to the ~~ownership of CCOH as of September 30, 2017, if the CCOH Intercompany Note Committee were to demand repayment~~balance of the Intercompany Note are instead reflected in ~~full, we would be required to use cash to fund approximately $110.4 million, or 10.5% of the dividend, to be paid~~an intercompany balance that accrues interest at a rate equal to the ~~public stockholders of CCOH. We cannot assure you that we will have sufficient cash available to make such a payment if the liquidity trigger occurs.~~

During the fourth quarter of 2016, CCOH sold its outdoor business in Australia for cash proceeds of $195.7 million, net of cash retained by the purchaser and closing costs. As discussed above under "Recent Liquidity-Generating Transactions," on February 9, 2017, CCOH declared a special dividend of $282.5 million using a portion of the cash proceeds from the sales of certain non-strategic U.S. outdoor markets and of our Australia outdoor business. On February 23, 2017, we received 89.9% of the dividend, or approximately $254.0 million, with the remaining 10.1%, or approximately $28.5 million, paid to public stockholders of CCOH.

~~On September 14, 2017, (i) CCOH provided notice of its intent to make a demand (the “First Demand”) for repayment on October 5, 2017 of $25.0 million outstanding~~interest under the Intercompany ~~Note,~~Note. As of March 31, 2019, the liability recorded in respect of the post-petition intercompany arrangement on CCOH's balance sheet was $73.7 million. The Separation Agreement contemplates that in connection with the Separation (i) the

cash sweep arrangement under the Corporate Services Agreement between CCOH and iHeartCommunications will terminate, and (ii) any agreements or licenses requiring royalty payments to the Debtors by CCOH for trademarks or other intellectual property, will terminate effective as of December 31, 2018. As noted above, the Separation Agreement provides for (i) the repayment of the post-petition intercompany balance outstanding in favor of us as of December 31, 2018, which was equal to $21.6 million as of that date and (ii) the ~~board~~waiver of ~~directors~~the set-off value of any royalties and IP license fees owed to us equal to approximately $31.8 million from March 14, 2018 through December 31, 2018, such that the resulting intercompany balance on such date was $10.2 million in favor of CCOH, ~~declared a special cash dividend, which was paid~~payable on ~~October 5, 2017 to CCOH’s Class A and Class B stockholders~~the Effective Date. Since January 1, 2019, CCOH has incurred an additional intercompany liability of ~~record at the closing~~$52.1 million in favor of ~~business on October 2, 2017, in an aggregate amount equal to $25.0 million, funded with the proceeds~~us as of the First Demand. iHeartCommunications received approximately 89.5%, or approximately $22.4 million, of the proceeds of the dividend through its wholly-owned subsidiaries. The remaining approximately 10.5% of the proceeds of the dividend, or approximately $2.6 million, was paidMarch 31, 2019. Pursuant to the ~~public stockholders~~Separation Agreement Amendment, CCOH has agreed to offset the $149 million owed by us on the Effective Date by $52.1 million, resulting in a total net payment to CCOH of ~~CCOH.~~

~~On October 11, 2017, (i) CCOH provided notice of its intent to make a demand (the “Second Demand”) for repayment~~approximately $107 million on ~~October 31, 2017 of $25.0~~the Effective Date (including the $10.2 million outstanding under the Intercompany Note, and (ii) the board of directors of CCOH declared a special cash dividend, which was paid on October 31, 2017 to CCOH’s Class A and Class B stockholders of record at the closing of business on October 26, 2017, in an aggregate amount equal to $25.0 million, funded with the proceeds of the Second Demand. iHeartCommunications received approximately 89.5%, or approximately $22.4 million, of the proceeds of the dividend through its wholly-owned subsidiaries. The remaining approximately 10.5% of the proceeds of the dividend, or approximately $2.6 million, was paidpayment discussed above). Pursuant to the ~~public stockholders of CCOH.~~

Separation Agreement Amendment, within 15 business days after the Effective Date, iHeartCommunications and CCOH will pay the other any intercompany liability incurred from April 1, 2019 through the Effective Date.

Commitments, Contingencies and Guarantees

We are currently involved in certain legal proceedings arising in the ordinary course of business and, as required, have accrued our estimate of the probable costs for 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 our assumptions or the effectiveness of our strategies related to these proceedings. Please refer to “Legal Proceedings” in Part II, Item 1 of this Quarterly Report on Form 10-Q.

SEASONALITY

Typically, the iHM, Americas outdoor and International outdoor segments experience their lowest financial performance in the first quarter of the calendar year, with International outdoor historically experiencing a loss from operations in that period. Our International outdoor segment typically experiences its strongest performance in the second and fourth quarters of the calendar year. We expect this trend to continue in the future. ~~In addition, the majority of interest payments made in relation to long-term debt are paid in the first and third quarters of each calendar year.~~ Due to this seasonality and certain other factors, the results for the interim periods may not be indicative of results for the full year.

MARKET RISK

We are exposed to market risks arising from changes in market rates and prices, including movements in interest rates, foreign currency exchange rates and inflation.

Interest Rate Risk

A significant amount of our long-term debt bears interest at variable rates. Accordingly, our earnings will be affected by changes in interest rates. As of ~~September 30, 2017,~~March 31, 2019, approximately ~~32%~~31% of our aggregate principal amount of long-term debt ~~bears~~bore interest at floating rates. Assuming the current level of borrowings and assuming a 50% change in LIBOR, disregarding the impact of the Chapter 11 Cases on our requirement to pay interest on our long-term debt, it is estimated that our interest expense for the ~~nine~~three months ended ~~September 30, 2017~~March 31, 2019 would have changed by ~~$26.2~~$19.7 million.

In the event of an adverse change in interest rates, management may take actions to mitigate our exposure. However, due to the uncertainty of the actions that would be taken and their possible effects, the preceding interest rate sensitivity analysis assumes no such actions. Further, the analysis does not consider the effects of the change in the level of overall economic activity that could exist in such an environment.

Foreign Currency Exchange Rate Risk

We have operations in countries throughout the world. Foreign operations are measured in their local currencies. As a result, our financial results could be affected by factors such as changes in foreign currency exchange rates or weak economic conditions in the foreign markets in which we have operations. We believe we mitigate a small portion of our exposure to foreign currency fluctuations with a natural hedge through borrowings in currencies other than the U.S. dollar. Our foreign operations reported a net ~~losses~~loss of ~~$15.2 million and $15.4~~$37.6 million for the three ~~and nine~~ months ended ~~September 30, 2017, respectively.~~March 31, 2019. We estimate a 10% increase in the value of the U.S. dollar relative to foreign currencies would have decreased our net ~~losses~~loss for the three ~~and nine~~ months ended ~~September 30, 2017~~March 31, 2019 by ~~$1.5 million, respectively.~~$3.8 million. A 10% decrease in the value of the U.S. dollar relative to foreign currencies during the three ~~and nine~~ months ended ~~September 30, 2017~~March 31, 2019 would have increased our net ~~losses~~loss for the ~~three and nine months ended September 30, 2017~~same period by a corresponding ~~amounts.~~amount.

This analysis does not consider the implications that such currency fluctuations could have on the overall economic activity that could exist in such an environment in the U.S. or the foreign countries or on the results of operations of these foreign entities.

Inflation

Inflation is a factor in the economies in which we do business and we continue to seek ways to mitigate its effect. Inflation has affected our performance in terms of higher costs for wages, salaries and equipment. Although the exact impact of inflation is indeterminable, we believe we have offset these higher costs by increasing the effective advertising rates of most of our broadcasting stations and outdoor display faces in our iHM, Americas outdoor and International outdoor operations.

~~CRITICAL ACCOUNTING ESTIMATES~~

The preparation of our financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of expenses during the reporting period. On an ongoing basis, we evaluate our estimates that are based on historical experience and on various other assumptions that are believed to be reasonable under the circumstances. The result of these evaluations forms the basis for making judgments about the carrying values of assets and liabilities and the reported amount of expenses that are not readily apparent from other sources. Because future events and their effects cannot be determined with certainty, actual results could differ from our assumptions and estimates, and such difference could be material. Our significant accounting policies are discussed in the notes to our consolidated financial statements included in Note 1 of this Quarterly Report on Form 10-Q. Management believes that the following accounting estimates are the most critical to aid in fully understanding and evaluating our reported financial results, and they require management’s most difficult, subjective or complex judgments, resulting from the need to make estimates about the effect of matters that are inherently uncertain. The following narrative describes these critical accounting estimates, the judgments and assumptions and the effect if actual results differ from these assumptions.

~~The Company performs its annual impairment test on goodwill and indefinite-lived intangible assets as of July 1 of each year.~~

~~Indefinite-lived Intangible Assets~~

In connection with the Merger Agreement pursuant to which we acquired iHeartCommunications in 2008, we allocated the purchase price to all of our assets and liabilities at estimated fair values, including our FCC licenses and our billboard permits. Indefinite-lived intangible assets, such as our FCC licenses and our billboard permits, are reviewed annually for possible impairment using the direct valuation method as prescribed in ASC 805-20-S99. Under the direct valuation method, the estimated fair value of the indefinite-lived intangible assets was calculated at the market level as prescribed by ASC 350-30-35. Under the direct valuation method, it is assumed that rather than acquiring indefinite-lived intangible assets as a part of a going concern business, the buyer hypothetically obtains 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 flows model, which results in value that is directly attributable to the indefinite-lived intangible assets.

Our 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 asset within a market.

On July 1, 2017, we performed our annual impairment test in accordance with ASC 350-30-35 and recognized impairment charges of $6.0 million related to FCC Licenses and no impairment related to outdoor billboard permits.

~~In determining the fair value of our FCC licenses, the following key assumptions were used:~~

~~Revenue growth sales forecasts published by BIA Financial Network, Inc. (“BIA”), varying by market, were used for the initial four-year period;~~

~~2.0% revenue growth was assumed beyond the initial four-year period;~~

~~Revenue was grown proportionally over a build-up period, reaching market revenue forecast by year 3;~~

~~Operating margins of 12.5% in the first year gradually climb to the industry average margin in year 3 of up to 25.0%, depending on market size; and~~

~~Assumed discount rates of 8.0% for the 13 largest markets and 8.5% for all other markets.~~

~~In determining the fair value of our billboard permits, the following key assumptions were used:~~

~~Industry revenue growth forecasts between 0.5% and 3.5% were used for the initial four-year period;~~

~~3.0% revenue growth was assumed beyond the initial four-year period;~~

~~Revenue was grown over a build-up period, reaching maturity by year 2;~~

~~Operating margins gradually climb to the industry average margin of up to 55.9%, depending on market size, by year 3; and~~

~~Assumed discount rate of 7.5%.~~

While we believe we have made reasonable estimates and utilized appropriate assumptions to calculate the fair value of our indefinite-lived intangible assets, it is possible a material change could occur. If future results are not consistent with our assumptions and estimates, we may be exposed to impairment charges in the future. The following table shows the change in the fair value of our indefinite-lived intangible assets that would result from a 100 basis point decline in our discrete and terminal period revenue growth rate and profit margin assumptions and a 100 basis point increase in our discount rate assumption:

(In thousands) Revenue Profit Discount
Description Growth Rate Margin Rates
FCC license $ 485,735
$ 183,700
$ 549,775
Billboard permits $ 1,107,600
$ 161,800
$ 1,118,300

The estimated fair value of our FCC licenses and billboard permits at July 1, 2017 was $7.0 billion ($3.2 billion for FCC licenses and $3.7 billion for billboard permits), while the carrying value was $3.4 billion. The estimated fair value of our FCC licenses and billboard permits at July 1, 2016 was $7.1 billion ($3.1 billion for FCC licenses and $4.0 billion for billboard permits), while the carrying value was $3.4 billion.

~~Goodwill~~

Goodwill represents the excess of the purchase price over the fair value of identifiable net assets acquired in business combinations. We test goodwill at interim dates if events or changes in circumstances indicate that goodwill might be impaired. The fair value of our reporting units is used to apply value to the net assets of each reporting unit. To the extent that the carrying amount of net assets would exceed the fair value, an impairment charge may be required to be recorded.

The discounted cash flow approach we use for valuing goodwill as part of the two-step impairment testing approach involves estimating future cash flows expected to be generated from the related assets, discounted to their present value using a risk-adjusted discount rate. Terminal values are also estimated and discounted to their present value.

On July 1, 2017, we performed our annual impairment test in accordance with ASC 350-30-35, resulting in a goodwill impairment charge of $1.6 million related to one of our International outdoor markets. In determining the fair value of our reporting units, we used the following assumptions:

Expected cash flows underlying our business plans for the periods 2017 through 2021. Our cash flow assumptions are based on detailed, multi-year forecasts performed by each of our operating segments, and reflect the advertising outlook across our businesses.

Cash flows beyond 2021 are projected to grow at a perpetual growth rate, which we estimated at 2.0% for our iHM segment, 3.0% for our Americas outdoor and International outdoor segments, and 2.0% for our Other segment (beyond 2024).

~~In order to risk adjust the cash flow projections in determining fair value, we utilized a discount rate of approximately 8.0% to 11.5% for each of our reporting units.~~

Based on our annual assessment using the assumptions described above, a hypothetical 10% reduction in the estimated fair value in each of our reporting units would not result in a material impairment condition.

While we believe we have made reasonable estimates and utilized appropriate assumptions to calculate the estimated fair value of our reporting units, it is possible a material change could occur. If future results are not consistent with our assumptions and estimates, we may be exposed to impairment charges in the future. The following table shows the decline in the fair value of each of our reportable segments that would result from a 100 basis point decline in our discrete and terminal period revenue growth rate and profit margin assumptions and a 100 basis point increase in our discount rate assumption:

(In thousands) Revenue Profit Discount
Description Growth Rate Margin Rates
iHM $ 1,180,000
$ 310,000
$ 1,150,000
Americas Outdoor $ 820,000
$ 170,000
$ 780,000
International Outdoor $ 260,000
$ 210,000
$ 220,000

CAUTIONARY STATEMENT CONCERNING FORWARD-LOOKING STATEMENTS

The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements made by us or on our behalf. ~~Except for the historical information, this~~This report contains various forward-looking statements which represent our expectations or beliefs concerning future events, including, without limitation, our future operating and financial performance, ~~our liquidity,~~ our ability to comply with the covenants in the agreements governing our indebtedness and the availability of capital and the terms thereof. Statements expressing expectations and projections with respect to future matters are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We caution that these forward-looking statements involve a number of risks and uncertainties and are subject to many variables which could impact our future performance. These statements are made on the basis of management’s views and assumptions, as of the time the statements are made, regarding future events and performance. There can be no assurance, however, that management’s expectations will necessarily come to pass. Actual future events and performance may differ materially from the expectations reflected in our forward-looking statements. We do not intend, nor do we undertake any duty, to update any forward-looking statements.

A wide range of factors could materially affect future developments and performance, including but not limited to:

the risks and uncertainties associated with the Chapter 11 Cases, including unfavorable tax consequences;

our ability to generate sufficient cash from operations to fund our operations;

our ability to successfully implement our business plan;

our ability to pursue our business strategies during the Chapter 11 Cases;

the diversion of management’s attention as a result of the Chapter 11 Cases;

increased levels of employee attrition as a result of the Chapter 11 Cases;

the impact of our restructuring on our business;

our ability to obtain sufficient exit financing to emerge from Chapter 11 and operate successfully;

volatility of our financial results as a result of the Chapter 11 Cases;

our inability to predict our long-term liquidity requirements and the adequacy of our capital resources;

the availability of cash to maintain our operations and fund our emergence costs;

our ability to continue as a going concern;

the impact of our substantial indebtedness upon emergence from Chapter 11, including the effect of our leverage on our financial position and earnings;

our ability to ~~generate sufficient cash from operations~~change the public perception relating to our bankruptcy proceedings;

the implementation and ~~liquidity-generating transactions and our need to allocate significant amounts~~transition of ~~our cash to make payments on our indebtedness, which in turn could reduce our financial flexibility and ability to fund other activities;~~a new board of directors upon emergence;

risks associated with weak or uncertain global economic conditions and their impact on the ~~capital markets;~~level of expenditures on advertising;

other general economic and political conditions in the United States and in other countries in which we currently do business, including those resulting from recessions, political events and acts or threats of terrorism or military conflicts;

industry conditions, including competition;

~~the level of expenditures on advertising;~~

~~legislative or regulatory requirements;~~

~~fluctuations in operating costs;~~

~~technological changes~~increased competition from alternative media platforms and ~~innovations;~~

technologies;

changes in labor conditions, including programming, program hosts and management;

~~capital expenditure~~fluctuations in operating costs;

technological changes and innovations;

shifts in population and other demographics;

our ability to obtain keep municipal concessions for our street furniture and transit products;

the impact of future dispositions, acquisitions and other strategic transactions;

legislative or regulatory requirements;

regulations and consumer concerns regarding privacy and data protection, and breaches of information security measures;

restrictions on outdoor advertising of certain products;

fluctuations in exchange rates and currency values;

risks of doing business in foreign countries;

~~fluctuations~~the identification of a material weakness in ~~exchange rates and currency values;~~

~~the outcome of pending and future litigation;~~

~~taxes and tax disputes;~~

~~changes in interest rates;~~

~~shifts in population and other demographics;~~

~~access to capital markets and borrowed indebtedness;~~

our ~~ability to implement our business strategies;~~

~~the risk that we may not be able to integrate the operations of acquired businesses successfully;~~

~~the risk that our strategic revenue and efficiency initiatives may not be entirely successful or that any cost savings achieved from such strategic revenue and efficiency initiatives may not persist;~~internal control over financial reporting; and

certain other factors set forth in our other filings with the SEC.

This list of factors that may affect future performance and the accuracy of forward-looking statements is illustrative and is not intended to be exhaustive. Accordingly, all forward-looking statements should be evaluated with the understanding of their inherent uncertainty.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Required information is presented under “Market Risk” within Item 2 of this Part I.

ITEM 4. CONTROLS AND PROCEDURES

As required by Rule 13a-15(b) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), under the supervision and with the participation of management, including our Chief Executive Officer and our Chief Financial Officer, we have carried out an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act) as of the end of the period covered by this report. Our disclosure controls and procedures are designed to provide reasonable assurance that information we are required to disclose in reports that are filed or submitted under the Exchange Act is accumulated and communicated to our management, including our Chief Executive Officer and our Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure and is recorded, processed, summarized and reported within the time periods specified by the SEC. Based on that evaluation, our Chief Executive Officer and our Chief Financial Officer concluded that our disclosure controls and procedures were effective as of ~~September 30, 2017~~March 31, 2019 at the reasonable assurance level.

There were no changes in our internal control over financial reporting that occurred during the quarter ended ~~September 30, 2017~~March 31, 2019 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II -- OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

We currently 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 our assumptions or the effectiveness of our 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 our financial condition or results of operations.

Although we are involved in a variety of legal proceedings in the ordinary course of business, a large portion of our litigation arises in the following contexts: commercial disputes; defamation matters; employment and benefits related claims; governmental fines; intellectual property claims; and tax disputes. The Plan of Reorganization provides for the treatment of claims against the Debtors' bankruptcy estates, including pre-petition liabilities that have not otherwise been satisfied or addressed during the Chapter 11 Cases.

Chapter 11 Cases

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. See Note 6 to our consolidated financial statements located in Item 8 of Part II of this Annual Report on Form 10-K for more information about the debt agreements. 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 (collectively with the 5.50% Senior Notes due 2016, the “Legacy Notes”), and not in its individual capacity, filed an adversary proceeding against us 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 14.0% 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 14.0% 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 14.0% Senior Notes due 2021 are also entitled to the same "equal and ratable" liens on the same property. On April 6, 2018, we filed a motion to dismiss the adversary proceeding and a hearing on such motion was held on May 7, 2018. We answered the complaint and completed discovery. The trial was held on October 24, 2018. On January 15, 2019, the Bankruptcy Court entered judgment in our favor denying all relief sought by WSFS and all other parties. Pursuant to a settlement (the “Legacy Plan Settlement”) with WSFS and certain consenting Legacy Noteholders of all issues related to confirmation of our Plan of Reorganization, upon our confirmed Plan of Reorganization becoming effective, this adversary proceeding shall be deemed withdrawn and/or dismissed, with respect to all parties thereto, with prejudice and in its entirety.

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; THL; Abrams Capital L.P. ("Abrams"); and Highfields Capital Management L.P. ("Highfields"). 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 14.0% Senior Notes due 2021 claims to any and all claims of the legacy noteholders. In addition, the complaint sought 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 the defendant Clear Channel Holdings, Inc., ("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. Pursuant to the Legacy Plan Settlement, upon our confirmed Plan of Reorganization becoming effective, this adversary proceeding shall be deemed withdrawn and/or dismissed, with respect to all parties thereto, with prejudice and in its entirety.

Stockholder Litigation

On May 9, 2016, a stockholder of ~~Clear Channel Outdoor Holdings, Inc. ("CCOH")~~CCOH filed a derivative lawsuit in the Court of Chancery of the State of Delaware, captioned GAMCO Asset Management Inc. v. iHeartMedia Inc. et al., C.A. No. 12312-VCS. The complaint names as defendants the Company, iHeartCommunications, ~~Inc. ("iHeartCommunications"), an indirect subsidiary of the Company,~~ Bain Capital ~~Partners, LLC~~ and ~~Thomas H. Lee Partners, L.P.~~THL (together, the "Sponsor Defendants"), the Company's private equity sponsors and majority owners, and the members of CCOH's board of directors. CCOH also is named as a nominal defendant. The complaint alleges that CCOH has 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 alleges that the defendants have breached their fiduciary duties by causing CCOH to: (i) continue to loan cash to iHeartCommunications under the intercompany note at below-market rates; (ii) abandon its growth and acquisition strategies in favor of transactions that would provide cash to the Company and iHeartCommunications; (iii) issue new debt in ~~the CCIBV note~~Clear Channel International B.V.'s, an international subsidiary of ours, offering of 8.75% Senior Notes due 2020 (the "CCIBV Note Offering") to provide cash to the Company and iHeartCommunications through a dividend; and (iv) effect the sales of certain outdoor markets in the U.S. (the "Outdoor Asset Sales") allegedly to provide cash to the Company and iHeartCommunications through a dividend. The complaint also alleges that the Company, iHeartCommunications and the Sponsor Defendants aided and abetted the directors' breaches of their fiduciary duties. The complaint further alleges that the Company, iHeartCommunications and the Sponsor Defendants were unjustly enriched as a result of these transactions and that these transactions constituted a waste of corporate assets for which the defendants are liable to CCOH. The plaintiff ~~is seeking,~~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.

~~International Outdoor~~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 of directors' 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 of directors 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 of directors. 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 sought, 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.

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 of directors 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 sought, 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 of directors' breach of fiduciary duty; and an award of damages, together with pre- and post-judgment interests, to the putative class of minority shareholders.

On December 16, 2018, the Debtors, CCOH, GAMCO Asset Management, Inc., and Norfolk County Retirement System entered into the CCOH Separation Settlement to settle of all claims, objections, and other causes of action that have been or could be asserted by or on behalf of CCOH, GAMCO Asset Management, Inc., and/or Norfolk County Retirement System by and among the Debtors, CCOH, GAMCO Asset Management, Inc., certain individual defendants in the GAMCO Asset Management, Inc. action and/or the Norfolk County Retirement System action, and the private equity sponsor defendants in such actions. The CCOH Separation Settlement provides for the consensual separation of the Debtors and CCOH, including approximately $149.0 million of recovery to CCOH on account of its claim against iHeartCommunications in the Chapter 11 Cases, a $200 million unsecured revolving line of credit from certain of the Debtors to CCOH for a period of up to three years, the transfer of certain of the Debtors’ intellectual property to CCOH, the waiver by the Debtors of the setoff for the value of the transferred intellectual property, mutual releases, the termination of the cash sweep under the existing Corporate Services Agreement, the termination of any agreements or licenses requiring royalty payments from CCOH to the Debtors for trademarks or other intellectual property, the waiver of any post-petition amounts owed by CCOH relating to such trademarks or other intellectual property, and the execution of a new transition services agreement and other separation documents. The CCOH Separation Settlement was approved by the Bankruptcy Court and the United States District Court for the Southern District of Texas on January 22, 2019.

China Investigation

~~On April 21, 2015, inspections were conducted at the premises~~Several employees of Clear ~~Channel in Denmark and Sweden as part~~Media Limited, an indirect, non-wholly-owned subsidiary of ~~an investigation by Danish competition authorities. Additionally,~~the Company whose ordinary shares are listed on the ~~same day,~~Hong Kong Stock Exchange, are subject to an ongoing police investigation in China for misappropriation of funds. We are not aware of any litigation, claim or assessment pending against us in relation to this investigation. Based on information known to date, we believe any contingent liabilities arising from potential misconduct that has been or may be identified by the investigation in China are not material to our consolidated financial statements. The effect of the misappropriation of funds is reflected in these financial statements in the appropriate periods.

We advised both the SEC and the DOJ of the investigation at Clear ~~Channel UK received a communication~~Media Limited and we are cooperating to provide information in response to inquiries from the ~~UK competition authorities, also~~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 and could be qualitatively or quantitatively material to the Company.

Italy Investigation

During the three months ended June 30, 2018, we identified misstatements associated with VAT obligations in our business in Italy, which resulted in an understatement of our VAT obligation. These misstatements resulted in an understatement of other long-term liabilities of $16.9 million as of December 31, 2017. The effect of these misstatements is reflected in the historical financial statements in the appropriate periods. Upon identification of these misstatements, we undertook certain procedures, including a forensic investigation, ~~by Danish competition authorities. Clear Channel~~which is ongoing. In addition, we voluntarily disclosed the matter and ~~its affiliates are cooperating with~~preliminary findings to the ~~national competition authorities.~~Italian tax authorities in order to commence a discussion on the appropriate calculation of the VAT position. The current expectation is that we may have to repay to the Italian tax authority a substantial portion of the VAT previously applied as a credit in relation to the transactions under investigation, amounting to approximately $17 million, including estimated possible penalties and interest. We made a payment of $8.6 million during the fourth quarter of 2018 and expect to pay the remainder during the last half of 2019. The ultimate amount to be paid may differ from our estimates, and such differences may be material.

ITEM 1A. RISK FACTORS

For information regarding our risk factors, please refer to Item 1A in our Annual Report on Form 10-K for the year ended December 31, ~~2016~~2018 (the "Annual Report") ~~and our Quarterly Reports on Form 10-Q.~~. There have not been any material changes

in the risk factors disclosed in our Annual Report and Quarterly Reports, except that we are updating the risk factor entitled "To service our debt obligations and to fund our operations and our capital expenditures, we require a significant amount of cash to meet our needs, which depends on many factors beyond our control" as set forth below:

To service our debt obligations and to fund our operations and our capital expenditures, we require a significant amount of cash to meet our needs, which depends on many factors beyond our control, and management has determined that there is substantial doubt as to our ability to continue as a going concern for a period within 12 months following November 8, 2017 based on the uncertainty about these factors

To service our debt obligations and to fund our operations and our capital expenditures, we require a significant amount of cash. Our primary sources of liquidity are cash on hand, cash flow from operations, borrowing capacity under iHeartCommunications' domestic receivables-based credit facility, subject to the limitations contained in iHeartCommunications' material financing agreements, and cash from liquidity-generating transactions. As of September 30, 2017, we had $286.4 million of cash and cash equivalents on our balance sheet, including $222.4 million of cash and cash equivalents held by our subsidiary, CCOH. As of September 30, 2017, we had a borrowing base of $499.1 million under iHeartCommunications' receivables-based credit facility, had $365.0 million of outstanding borrowings and $49.1 million of outstanding letters of credit, resulting in $85.0 million of excess availability. However, any incremental borrowings under iHeartCommunications' receivables-based credit facility may be further limited by the terms contained in iHeartCommunications' material financing agreements.

~~During the second quarter of 2014, the FASB issued ASU No. 2014-15,~~ ~~Presentation of Financial Statements - Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern~~. This update provides U.S. GAAP guidance on management's responsibility in evaluating whether there is substantial doubt about a company's ability to continue as a going concern and about related footnote disclosures. We adopted this standard for the year ended December 31, 2016. Under this standard, we are required to evaluate whether there is substantial doubt about our ability to continue as a going concern each reporting period, including interim periods. In evaluating our ability to continue as a going concern, management considered the conditions and events that could raise substantial doubt about our ability to continue as a going concern for a period of 12 months following the date our financial statements were issued (November 8, 2017). Management considered our current financial condition and liquidity sources, including current funds available, forecasted future cash flows and our conditional and unconditional obligations due before November 8, 2018.

A substantial amount of our cash requirements are for debt service obligations. Our current forecast indicates we will continue to incur net losses and generate negative cash flows from operating activities as a result of our indebtedness and significant related interest expense. At September 30, 2017, the Company had debt maturities totaling $366.9 million, $308.5 million (net of $277.1 million due to certain of our subsidiaries) and $8,368.9 million in 2017, 2018 and 2019, respectively. In October 2017, iHeartCommunications exchanged $45.0 million principal amount of 11.25% Priority Guarantee Notes due 2021 that were held by a subsidiary of iHeartCommunications for $45.0 million principal amount of 10.0% Senior Notes due 2018 that were held by unaffiliated third parties. After the exchanges, our debt maturities in the next 12 months include, (i) $365.0 million outstanding under iHeartCommunications' receivables-based credit facility, which matures on December 24, 2017, (ii) $51.5 million of 10% Senior Notes due January 15, 2018, (iii) $175.0 million of 6.875% Senior Notes due June 15, 2018, (iv) $24.8 million of contractual AHYDO catch-up payments to be made on iHeartCommunications' 14% Senior Notes due 2021 on the interest payment due on August 1, 2018.Our forecast includes approximately $1.8 billion in cash interest payments in the next 12 months, of which $344.6 million is payable in the fourth quarter of 2017 and $548.2 million is payable in the first quarter of 2018. In addition, in certain circumstances, a committee of the CCOH board of directors formed for the specific purpose of monitoring the Intercompany Note (the “CCOH Intercompany Note Committee”) has the non-exclusive authority to demand payments under the Intercompany Note, as long as the CCOH board of directors declares a simultaneous dividend equal to the amount so demanded. As of November 8, 2017, the CCOH Intercompany Note Committee has the right pursuant to the terms of the settlement of the derivative litigation filed by CCOH’s stockholders regarding the Intercompany Note but not the obligation, to make a demand on the Intercompany Note. If the CCOH Intercompany Note Committee exercises this right to demand a full repayment of the Intercompany Note and the CCOH board of directors declares a simultaneous dividend, based on the balance of the Intercompany Note outstanding at September 30, 2017, approximately $110.4 million would be payable to the public stockholders of CCOH. If we are unable to refinance the amounts outstanding under the receivables-based credit facility, the 10% Senior Notes due January 15, 2018, and/or the 6.875% Senior Notes due June 15, 2018 and take other steps to create additional liquidity, forecasted cash flows are not sufficient for us to meet our obligations, including upcoming interest payments and maturities on our outstanding debt, as they become due in the ordinary course of business for a period of 12 months following November 8, 2017.

While we continue to work toward completing the notes exchange offers and the term loan offers or other similar transactions, refinancing the maturity of the receivables-based credit facility and taking other actions to create additional liquidity, there is no assurance that the notes exchange offers and the term loan offers or other similar transactions will be completed, that the amounts outstanding under the receivables-based credit facility will be refinanced or that we will be able to create additionalReport.

liquidity. Our ability to meet our obligations as they become due in the ordinary course of business for the next 12 months will depend on our ability to achieve forecasted results, our ability to conserve cash, our ability to refinance the amounts outstanding under the receivables-based credit facility, our ability to successfully complete the notes exchange offers and the term loan offers or other similar transactions and achieve sufficient cash interest savings therefrom and our ability to complete other liquidity-generating transactions. Based on the uncertainty of achieving these actions and the significance of the forecasted future negative cash flows resulting from our substantial debt balance, including anticipated future interest cash payments (including interest due in the fourth quarter of 2017 and in 2018) and the maturities of the $365.0 million in current borrowings under iHeartCommunications' receivables-based credit facility that matures December 24, 2017, the $51.5 million aggregate principal amount of 10% Senior Notes due January 15, 2018, the $175.0 million aggregate principal amount of 6.875% Senior Notes due June 15, 2018 and the $24.8 million of contractual AHYDO catch-up payments to be made on iHeartCommunications' 14% Senior Notes due 2021 beginning with the interest payment due on August 1, 2018, management has determined that there is substantial doubt as to our ability to continue as a going concern for a period of 12 months following November 8, 2017.

If we are unable to complete any of the actions described in the paragraph above, or otherwise generate incremental liquidity, or if there are material adverse developments in our business, results of operations or liquidity, we may be forced to further reduce or delay our business activities and capital expenditures, sell material assets, seek additional capital or be required to file for bankruptcy court protection. We cannot assure you that we would be able to accomplish any of these alternatives on a timely basis or on satisfactory terms, if at all.

In connection with the cash management arrangements for CCOH, iHeartCommunications maintains an intercompany revolving promissory note payable by iHeartCommunications to CCOH (the "Intercompany Note"), which matures on December 15, 2017. As of September 30, 2017, the balance of the Note was $1,051.3 million, all of which is payable on demand. While we intend to extend the maturity of the Intercompany Note prior to its maturity, the principal amount outstanding under the Intercompany Note is subject to demand by CCOH or the CCOH Intercompany Note Committee. We cannot assure you that we will have sufficient cash to make such a payment if CCOH or the CCOH Independent Note Committee demanded payment of the Intercompany Note in full.

The covenants in iHeartCommunications' senior secured credit facilities include a requirement that we receive an opinion from our auditors in connection with our year-end audit that is not subject to a “going concern” or like qualification or exception. Even if we are able to successfully refinance the amounts outstanding under iHeartCommunications' receivables-based credit facility and manage our liquidity challenges through the end of 2017, if we are unable to improve our liquidity forecast for 2018 and refinance or extend a significant portion of our substantial 2019 debt maturities prior to the completion of the audit of our 2017 financial statements, we anticipate that our auditor’s year-end opinion will contain a “going concern” qualification, and, if we are unable to obtain a waiver of the covenant in the senior secured credit facilities that requires us to deliver an unqualified auditor’s opinion, it will trigger a default under the senior secured credit facilities. We cannot assure you that we will be able to obtain such a waiver or amendment.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

The following table sets forth ~~the~~our purchases of shares of our Class A common stock made during the quarter ended ~~September 30, 2017 by or on behalf of us or an affiliated purchaser:~~March 31, 2019:

Period
Total Number of Shares Purchased⁽¹⁾

Average Price Paid per Share⁽¹⁾
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Plans or Programs
July 1 through July 31 103,987
$ 1.40
—
$ —
August 1 through August 31 182
1.75
—
—
September 1 through September 30 548
1.63
—
—
Total 104,717
$ 1.33
—
$ —



Period	Total Number of Shares Purchased⁽¹⁾	Average Price Paid per Share⁽¹⁾		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Plans or Programs
January 1 through January 31	3,927	$	0.43	—	$	—
February 1 through February 28	2,576	0.94		—	—
March 1 through March 31	—			—	��
Total	6,503	$	0.63	—	$	—


(1)	The shares indicated consist of shares of our Class A common stock tendered by employees to us during the three months ended ~~September 30, 2017~~March 31, 2019 to satisfy the employees’ tax withholding obligation in connection with the vesting and release of restricted shares, which are repurchased by us based on their fair market value on the date the relevant transaction occurs.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

~~None.~~The filing of the Chapter 11 Cases constituted an event of default that accelerated the Debtors’ obligations under the following debt instruments (the “Debt Instruments”):

Senior Indenture, dated as of October 1, 1997 (as amended or supplemented from time to time), by and between iHeartCommunications and The Bank of New York (now known as The Bank of New York Mellon), as trustee (with Wilmington Savings Fund Society, FSB as successor trustee), governing iHeartCommunications’ 5.50% Senior Notes due 2016, 6.875% Senior Notes due 2018 and 7.25% Senior Notes due 2027;

Credit Agreement, dated as of May 13, 2008, as amended and restated as of February 23, 2011 (as further amended or supplemented from time to time), by and among iHeartCommunications, as the parent borrower, the subsidiary co-borrowers and foreign subsidiary revolving borrowers party thereto, iHeartMedia Capital I, LLC, as a guarantor, Citibank, N.A., as administrative agent, swing line lender and letter of credit issuer, and the other the lenders from time to time party thereto governing iHeartCommunications’ Term Loan D and Term Loan E credit facilities;

Indenture, dated as of February 23, 2011 (as amended or supplemented from time to time), by and among iHeartCommunications, iHeartMedia Capital I, LLC, as guarantor, the other guarantors party thereto, Wilmington Trust FSB, as trustee (with Wilmington Trust, National Association as successor in interest), and Deutsche Bank Trust Company Americas, as collateral agent, paying agent, registrar, authentication agent and transfer agent, governing iHeartCommunications’ 9.0% Priority Guarantee Notes due 2021;

Indenture, dated as of October 25, 2012 (as amended or supplemented from time to time), by and among iHeartCommunications, iHeartMedia Capital I, LLC, as guarantor, the other guarantors party thereto, U.S. Bank National Association, as trustee, paying agent, registrar and transfer agent (with Wilmington Trust, National Association as successor trustee, paying agent, registrar and transfer agent), and Deutsche Bank Trust Company Americas, as collateral agent, governing iHeartCommunications’ 9.0% Priority Guarantee Notes due 2019;

Indenture, dated as of June 21, 2013 (as amended or supplemented from time to time), by and among iHeartCommunications, iHeartMedia Capital I, LLC, as guarantor, the other guarantors party thereto, Law Debenture Trust Company of New York, as trustee (with Delaware Trust Company as successor trustee), and Deutsche Bank Trust Company Americas, as paying agent, registrar and transfer agent, governing iHeartCommunications’ 14.0% Senior Notes due 2021;

Indenture, dated as of February 28, 2013 (as amended or supplemented from time to time), by and among iHeartCommunications, iHeartMedia Capital I, LLC, as guarantor, the other guarantors party thereto, U.S. Bank National Association, as trustee, paying agent, registrar, authentication agent and transfer agent (with UMB Bank National Association as successor trustee, paying agent, registrar, authentication agent and transfer agent), and Deutsche Bank Trust Company Americas, as collateral agent, governing iHeartCommunications’ 11.25% Priority Guarantee Notes due 2021;

Indenture, dated as of September 10, 2014 (as amended or supplemented from time to time), by and among iHeartCommunications, iHeartMedia Capital I, LLC, as guarantor, the other guarantors party thereto, U.S. Bank National Association, as trustee, paying agent, registrar, authentication agent and transfer agent (with Wilmington Trust, National Association as successor trustee, paying agent, registrar, authentication agent and transfer agent), and Deutsche Bank Trust Company Americas, as collateral agent, governing iHeartCommunications’ 9.0% Priority Guarantee Notes due 2022;

Indenture, dated as of February 26, 2015 (as amended or supplemented from time to time), by and among iHeartCommunications, iHeartMedia Capital I, LLC, as guarantor, the other guarantors party thereto, U.S. Bank National Association, as trustee, paying agent, registrar, authentication agent and transfer agent, and Deutsche Bank Trust Company Americas, as collateral agent, governing iHeartCommunications’ 10.625% Priority Guarantee Notes due 2023;

Credit Agreement, dated as of November 30, 2017, by and among iHeartCommunications, as the parent borrower, iHeartMedia Capital I, LLC, as a guarantor, the subsidiary borrowers party thereto, TPG Specialty Lending, Inc., as administrative agent, sole lead arranger and a lender, the other lenders, swing line lenders and letter of credit issuers from time to time party thereto and the other syndication agents party thereto, governing iHeartCommunications’ asset-based term loan and revolving credit facility; and

Revolving Promissory Note, dated November 10, 2005, as amended by the first amendment entered into on December 23, 2009, the second amendment entered into on October 23, 2013, and the third amendment entered into on November 29, 2017, between iHeartCommunications, as maker, and Clear Channel Outdoor Holdings, Inc., as payee.

As previously disclosed, any efforts to enforce the payment obligations under the Debt Instruments are automatically stayed as a result of the Chapter 11 Cases, and the creditors’ rights of enforcement in respect of the Debt Instruments are subject to the applicable provisions of the Bankruptcy Code.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

None.

ITEM 6. EXHIBITS



Exhibit Number		Description
2.1		Modified Fifth Amended Joint Chapter 11 Plan of Reorganization of iHeartMedia, Inc. and its Debtor Affiliates Pursuant to Chapter 11 of the Bankruptcy Code, dated January 22, 2019 (incorporated by reference to the Company's Current Report on Form 8-K filed with the SEC on January 28, 2019).
4.1		~~Supplemental~~ Indenture, dated as of ~~August 14, 2017,~~February 12, 2019, among Clear Channel ~~International B.V.~~Worldwide Holdings, Inc., Clear Channel Outdoor Holdings, Inc., Clear Channel Outdoor, Inc., the other guarantors party thereto, and U.S. Bank National Association, as trustee, paying agent, registrar and transfer agent (incorporated by reference to Exhibit 4.1 to Clear Channel Outdoor Holdings, Inc.’s Current Report on Form 8-K filed on ~~August 14, 2017)~~February 13, 2019).
4.2		Form of 9.25% Senior Subordinated Notes due 2024 (incorporated by reference to Exhibit A to Exhibit 4.1 to Clear Channel Outdoor Holdings, Inc.’s Current Report on Form 8-K filed on February 13, 2019).
4.3		Exchange and Registration Rights Agreement, dated as of February 12, 2019, among Clear Channel Worldwide Holdings, Inc., Clear Channel Outdoor Holdings, Inc., Clear Channel Outdoor, Inc., the other guarantors party thereto, and Deutsche Bank Securities Inc., as representative of the initial purchasers (incorporated by reference to Exhibit 4.3 to Clear Channel Outdoor Holdings, Inc.’s Current Report on Form 8-K filed on February 13, 2019).
10.1		~~First~~ Settlement and Separation Agreement, dated March 27, 2019, by and between Clear Channel Holdings, Inc., Clear Channel Outdoor Holdings, Inc., iHeartCommunications, Inc. and iHeartMedia, Inc. (incorporated by reference to Exhibit 10.1 to the Clear Channel Outdoor Holdings, Inc.’s Current Report on Form 8-K filed on March 28, 2019).
10.2*		Amendment, ~~to Employment Agreement, effective~~dated as of ~~May 1, 2017, between Scott D. Hamilton~~April 24, 2019, to the Settlement and Separation Agreement, dated as of March 27, 2019, by and among Clear Channel Holdings, Inc., Clear Channel Outdoor Holdings, Inc., iHeartCommunications, Inc. and iHeartMedia, ~~Management Services,~~ Inc.
31.1*		Certification Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*		Certification Pursuant to Rules 13a-14(a) and 15d-14(a) under the Securities Exchange Act of 1934, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1**		Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2**		Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101*		Interactive Data Files.

____________

* Filed herewith.

** Furnished herewith.

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.



	IHEARTMEDIA, INC.


~~November 8, 2017~~
April 25, 2019	/s/ SCOTT D. HAMILTON
	Scott D. Hamilton
	Senior Vice President, Chief Accounting Officer and Assistant Secretary

4354



(In thousands)	iHM		Americas Outdoor Advertising			International Outdoor Advertising			Other		Consolidated
Balance as of December 31, 2015	$	3,288,481	$	534,683		$	223,892		$	81,831	$	4,128,887
Impairment	—		—			(7,274		)	—		(7,274		)
Dispositions	—		(6,934		)	(30,718		)	—		(37,652		)
Foreign currency	—		(1,998		)	(5,051		)	—		(7,049		)
Assets held for sale	—		(10,337		)	—			—		(10,337		)
Balance as of December 31, 2016	$	3,288,481	$	515,414		$	180,849		$	81,831	$	4,066,575
Impairment	—		—			(1,591		)	—		(1,591		)
Acquisitions	—		2,252			—			—		2,252
Dispositions	—		—			(1,817		)	—		(1,817		)
Foreign currency	—		654			17,427			—		18,081
Assets held for sale	—		89			—			—		89
Balance as of September 30, 2017	$	3,288,481	$	518,409		$	194,868		$	81,831	$	4,083,589



(In thousands)	The Company			Noncontrolling Interests			Consolidated
Balance as of January 1, 2017	$	(11,021,253	)	$	135,778		$	(10,885,475	)
Net income (loss)	(810,429		)	8,648			(801,781		)
Dividends declared and other payments to noncontrolling interests	—			(43,540		)	(43,540		)
Share-based compensation	1,867			7,153			9,020
Purchases of additional noncontrolling interest	(378		)	(575		)	(953		)
Disposal of noncontrolling interest	—			(2,438		)	(2,438		)
Foreign currency translation adjustments	34,785			9,880			44,665
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	$	(11,791,848	)	$	114,133		$	(11,677,715	)



	Four Quarters Ended
(In Millions)	September 30, 2017
Consolidated EBITDA (as defined by iHeartCommunications' senior secured credit facilities)	$	1,661.9
Less adjustments to consolidated EBITDA (as defined by iHeartCommunications' senior secured credit facilities):
Costs incurred in connection with the closure and/or consolidation of facilities, retention charges, consulting fees and other permitted activities	(44.9		)
Extraordinary, non-recurring or unusual gains or losses or expenses and severance (as referenced in the definition of consolidated EBITDA in iHeartCommunications' senior secured credit facilities)	(38.3		)
Non-cash charges	(1.9		)
Other items	68.9
Less: Depreciation and amortization, Impairment charges, Other operating income (expense), net and Share-based compensation expense	(460.8		)
Operating income	1,184.9
Plus: Depreciation and amortization, Impairment charges, Gain (loss) on disposal of operating and fixed assets, and Share-based compensation expense	454.2
Less: Interest expense	(1,848.9		)
Less: Current income tax expense	(29.0		)
Plus: Other income (expense), net	(37.3		)
Adjustments to reconcile consolidated net loss to net cash provided by operating activities (including Provision for doubtful accounts, Amortization of deferred financing charges and note discounts, net and Other reconciling items, net)	43.3
Change in assets and liabilities, net of assets acquired and liabilities assumed	(67.3		)
Net cash used for operating activities	$	(300.1	)



(In thousands)	Revenue		Profit		Discount
Description	Growth Rate		Margin		Rates
FCC license	$	485,735	$	183,700	$	549,775
Billboard permits	$	1,107,600	$	161,800	$	1,118,300