GUARANTOR SUBSIDIARIES | GUARANTOR SUBSIDIARIES The Company and certain of the Company’s direct and indirect wholly-owned domestic subsidiaries (the “Guarantor Subsidiaries”) fully and unconditionally guarantee on a joint and several basis certain of the outstanding indebtedness of Clear Channel Worldwide Holdings, Inc. ("CCWH" or the “Subsidiary Issuer”). The following consolidating schedules present financial information on a combined basis in conformity with the SEC’s Regulation S-X Rule 3-10(d): (In thousands) December 31, 2017 Parent Subsidiary Guarantor Non-Guarantor Company Issuer Subsidiaries Subsidiaries Eliminations Consolidated Cash and cash equivalents 2,212 — 22,841 119,066 — $ 144,119 Accounts receivable, net of allowance — — 192,493 466,970 — 659,463 Intercompany receivables — 785,075 2,924,888 88,053 (3,798,016 ) — Prepaid expenses 291 3,433 50,028 58,124 — 111,876 Other current assets 25,441 — 2,552 30,721 — 58,714 Total Current Assets 27,944 788,508 3,192,802 762,934 (3,798,016 ) 974,172 Structures, net — — 675,443 505,439 — 1,180,882 Other property, plant and equipment, net — — 119,856 94,291 — 214,147 Indefinite-lived intangibles — — 977,152 — — 977,152 Other intangibles, net — — 248,674 25,188 — 273,862 Goodwill — — 507,820 206,223 — 714,043 Due from iHeartCommunications 211,990 — — — — 211,990 Intercompany notes receivable 182,026 5,087,742 12,437 16,273 (5,298,478 ) — Other assets 431,671 94,543 1,343,032 70,897 (1,815,609 ) 124,534 Total Assets $ 853,631 $ 5,970,793 $ 7,077,216 $ 1,681,245 $ (10,912,103 ) $ 4,670,782 Accounts payable $ — $ — $ 7,592 $ 80,368 $ — $ 87,960 Intercompany payable 2,924,888 — 873,128 — (3,798,016 ) — Accrued expenses 1,167 (1,315 ) 91,325 418,624 — 509,801 Deferred income — — 25,278 33,900 — 59,178 Current portion of long-term debt — — 115 458 — 573 Total Current Liabilities 2,926,055 (1,315 ) 997,438 533,350 (3,798,016 ) 657,512 Long-term debt — 4,895,104 1,820 369,229 — 5,266,153 Intercompany notes payable — 16,273 5,046,119 236,086 (5,298,478 ) — Deferred tax liability (93,111 ) 853 466,827 (53,127 ) — 321,442 Other long-term liabilities 1,157 — 140,272 142,540 — 283,969 Total stockholders' equity (deficit) (1,980,470 ) 1,059,878 424,740 453,167 (1,815,609 ) (1,858,294 ) Total Liabilities and Stockholders' Equity $ 853,631 $ 5,970,793 $ 7,077,216 $ 1,681,245 $ (10,912,103 ) $ 4,670,782 (In thousands) December 31, 2016 Parent Subsidiary Guarantor Non-Guarantor Company Issuer Subsidiaries Subsidiaries Eliminations Consolidated Cash and cash equivalents $ 300,285 $ — $ 61,542 $ 169,710 $ — $ 531,537 Accounts receivable, net of allowance — — 193,474 399,596 — 593,070 Intercompany receivables — 687,043 2,694,094 99,431 (3,480,568 ) — Prepaid expenses 1,363 3,433 51,751 55,022 — 111,569 Assets held for sale — — 55,602 — — 55,602 Other current assets — — 6,873 32,326 — 39,199 Total Current Assets 301,648 690,476 3,063,336 756,085 (3,480,568 ) 1,330,977 Structures, net — — 746,877 449,799 — 1,196,676 Other property, plant and equipment, net — — 124,138 92,019 — 216,157 Indefinite-lived intangibles — — 951,439 9,527 — 960,966 Other intangibles, net — — 259,915 39,702 — 299,617 Goodwill — — 505,478 190,785 — 696,263 Due from iHeartCommunications 885,701 — — — — 885,701 Intercompany notes receivable 182,026 4,887,354 — — (5,069,380 ) — Other assets 271,169 407,984 1,334,739 65,589 (1,957,468 ) 122,013 Total Assets $ 1,640,544 $ 5,985,814 $ 6,985,922 $ 1,603,506 $ (10,507,416 ) $ 5,708,370 Accounts payable $ — $ — $ 14,897 $ 71,973 $ — $ 86,870 Intercompany payable 2,694,094 — 786,474 — (3,480,568 ) — Accrued expenses 2,223 58,652 35,509 384,488 — 480,872 Deferred income — — 33,471 33,534 — 67,005 Current portion of long-term debt — — 89 6,882 — 6,971 Total Current Liabilities 2,696,317 58,652 870,440 496,877 (3,480,568 ) 641,718 Long-term debt — 4,886,318 1,711 221,991 — 5,110,020 Intercompany notes payable — 5,000 5,027,681 36,699 (5,069,380 ) — Deferred tax liability 772 1,367 685,780 (45,906 ) — 642,013 Other long-term liabilities 1,055 — 135,094 125,782 — 261,931 Total stockholders' equity (deficit) (1,057,600 ) 1,034,477 265,216 768,063 (1,957,468 ) (947,312 ) Total Liabilities and Stockholders' Equity $ 1,640,544 $ 5,985,814 $ 6,985,922 $ 1,603,506 $ (10,507,416 ) $ 5,708,370 (In thousands) Year Ended December 31, 2017 Parent Subsidiary Guarantor Non-Guarantor Company Issuer Subsidiaries Subsidiaries Eliminations Consolidated Revenue $ — $ — $ 1,137,003 $ 1,451,699 $ — $ 2,588,702 Operating expenses: Direct operating expenses — — 510,271 899,496 — 1,409,767 Selling, general and administrative expenses — — 192,452 306,761 — 499,213 Corporate expenses 14,660 — 93,232 35,786 — 143,678 Depreciation and amortization — — 181,906 144,085 — 325,991 Impairment charges — — — 4,159 — 4,159 Other operating income (expense), net (406 ) — 34,943 (8,146 ) — 26,391 Operating income (loss) (15,066 ) — 194,085 53,266 — 232,285 Interest (income) expense, net (414 ) 353,082 (205 ) 27,238 — 379,701 Interest income on Due from iHeartCommunications 68,871 — — — — 68,871 Intercompany interest income 16,349 339,925 69,424 184 (425,882 ) — Intercompany interest expense 68,871 406 356,458 147 (425,882 ) — Loss on Due from iHeartCommunications (855,648 ) — — — — (855,648 ) Loss on investments, net — — — (1,045 ) — (1,045 ) Equity in earnings (loss) of nonconsolidated affiliates 114,363 117 (22,754 ) (1,981 ) (90,735 ) (990 ) Other income, net 3,167 — 11,232 15,401 — 29,800 Income (loss) before income taxes (736,421 ) (13,446 ) (104,266 ) 38,440 (90,735 ) (906,428 ) Income tax benefit (expense) 92,073 2,405 218,629 (32,889 ) — 280,218 Consolidated net income (loss) (644,348 ) (11,041 ) 114,363 5,551 (90,735 ) (626,210 ) Less amount attributable to noncontrolling interest — — — 18,138 — 18,138 Net income (loss) attributable to the Company $ (644,348 ) $ (11,041 ) $ 114,363 $ (12,587 ) $ (90,735 ) $ (644,348 ) Other comprehensive income (loss), net of tax: Foreign currency translation adjustments — — 235 43,106 — 43,341 Unrealized holding loss on marketable securities — — — (414 ) — (414 ) Other adjustments to comprehensive income (loss) — — — 6,720 — 6,720 Reclassification adjustments — — — 5,441 — 5,441 Equity in subsidiary comprehensive income 46,139 36,442 45,904 — (128,485 ) — Comprehensive income (loss) (598,209 ) 25,401 160,502 42,266 (219,220 ) (589,260 ) Less amount attributable to noncontrolling interest — — — 8,949 — 8,949 Comprehensive income (loss) attributable to the Company $ (598,209 ) $ 25,401 $ 160,502 $ 33,317 $ (219,220 ) $ (598,209 ) (In thousands) Year Ended December 31, 2016 Parent Subsidiary Guarantor Non-Guarantor Company Issuer Subsidiaries Subsidiaries Eliminations Consolidated Revenue $ — $ — $ 1,144,445 $ 1,535,377 $ — $ 2,679,822 Operating expenses: Direct operating expenses — — 497,634 920,685 — 1,418,319 Selling, general and administrative expenses — — 196,006 319,415 — 515,421 Corporate expenses 13,157 — 61,926 42,353 — 117,436 Depreciation and amortization — — 177,918 166,206 — 344,124 Impairment charges — — — 7,274 — 7,274 Other operating income (expense), net (427 ) — 291,717 63,398 — 354,688 Operating income (loss) (13,584 ) — 502,678 142,842 — 631,936 Interest (income) expense, net (1,195 ) 353,447 721 22,056 — 375,029 Interest income on Due from iHeartCommunications 50,309 — — — — 50,309 Intercompany interest income 16,142 341,472 52,103 — (409,717 ) — Intercompany interest expense 50,309 15 357,614 1,779 (409,717 ) — Gain (loss) on investments, net — — (250 ) 781 — 531 Equity in earnings (loss) of nonconsolidated affiliates 130,558 38,440 (25,902 ) (2,837 ) (141,948 ) (1,689 ) Other income (expense), net 3,429 — (6,376 ) (67,735 ) — (70,682 ) Income before income taxes 137,740 26,450 163,918 49,216 (141,948 ) 235,376 Income tax benefit (expense) (2,670 ) (55,574 ) (33,360 ) 14,105 — (77,499 ) Consolidated net income (loss) 135,070 (29,124 ) 130,558 63,321 (141,948 ) 157,877 Less amount attributable to noncontrolling interest — — — 22,807 — 22,807 Net income (loss) attributable to the Company $ 135,070 $ (29,124 ) $ 130,558 $ 40,514 $ (141,948 ) $ 135,070 Other comprehensive loss, net of tax: Foreign currency translation adjustments — — (8,000 ) 31,357 — 23,357 Unrealized holding loss on marketable securities — — — (576 ) — (576 ) Other adjustments to comprehensive loss — — — (11,814 ) — (11,814 ) Reclassification adjustments — — — 46,730 — 46,730 Equity in subsidiary comprehensive income 65,735 67,318 73,735 — (206,788 ) — Comprehensive income 200,805 38,194 196,293 106,211 (348,736 ) 192,767 Less amount attributable to noncontrolling interest — — — (8,038 ) — (8,038 ) Comprehensive income attributable to the Company $ 200,805 $ 38,194 $ 196,293 $ 114,249 $ (348,736 ) $ 200,805 (In thousands) Year Ended December 31, 2015 Parent Subsidiary Guarantor Non-Guarantor Company Issuer Subsidiaries Subsidiaries Eliminations Consolidated Revenue $ — $ — $ 1,193,320 $ 1,612,884 $ — $ 2,806,204 Operating expenses: Direct operating expenses — — 507,729 978,106 — 1,485,835 Selling, general and administrative expenses — — 199,769 328,052 — 527,821 Corporate expenses 13,049 — 58,719 44,755 — 116,523 Depreciation and amortization — — 194,891 181,071 — 375,962 Impairment charges — — 21,631 — — 21,631 Other operating income (expense), net (458 ) — (7,732 ) 3,366 — (4,824 ) Operating income (loss) (13,507 ) — 202,849 84,266 — 273,608 Interest expense, net 2 352,329 1,630 1,956 — 355,917 Interest income on Due from iHeartCommunications 61,439 — — — — 61,439 Intercompany interest income 16,068 340,457 62,002 — (418,527 ) — Intercompany interest expense 61,439 — 356,525 563 (418,527 ) — Equity in earnings (loss) of nonconsolidated affiliates (63,290 ) 23,020 18,246 (1,935 ) 23,670 (289 ) Other income, net 2,915 3,440 20,318 10,289 (24,575 ) 12,387 Income (loss) before income taxes (57,816 ) 14,588 (54,740 ) 90,101 (905 ) (8,772 ) Income tax expense (953 ) (575 ) (8,550 ) (39,865 ) — (49,943 ) Consolidated net income (loss) (58,769 ) 14,013 (63,290 ) 50,236 (905 ) (58,715 ) Less amount attributable to noncontrolling interest 24,629 24,629 Net income (loss) attributable to the Company $ (58,769 ) $ 14,013 $ (63,290 ) $ 25,607 $ (905 ) $ (83,344 ) Other comprehensive loss, net of tax: Foreign currency translation adjustments — (3,440 ) (16,605 ) (92,737 ) — (112,782 ) Unrealized holding gain on marketable securities — — — 553 — 553 Other adjustments to comprehensive loss — — — (10,266 ) — (10,266 ) Reclassification adjustments — — — 808 — 808 Equity in subsidiary comprehensive loss (110,802 ) (62,189 ) (90,927 ) — 263,918 — Comprehensive loss (169,571 ) (51,616 ) (170,822 ) (76,035 ) 263,013 (205,031 ) Less amount attributable to noncontrolling interest — — — (10,885 ) — (10,885 ) Comprehensive loss attributable to the Company $ (169,571 ) $ (51,616 ) $ (170,822 ) $ (65,150 ) $ 263,013 $ (194,146 ) (In thousands) Year Ended December 31, 2017 Parent Subsidiary Guarantor Non-Guarantor Company Issuer Subsidiaries Subsidiaries Eliminations Consolidated Cash flows from operating activities: Consolidated net income (loss) $ (644,348 ) $ (11,041 ) $ 114,363 $ 5,551 $ (90,735 ) $ (626,210 ) Reconciling items: Impairment charges — — — 4,159 — 4,159 Depreciation and amortization — — 181,906 144,085 — 325,991 Deferred taxes (93,882 ) (514 ) (218,955 ) 2,266 — (311,085 ) Provision for doubtful accounts — — 10,083 (3,343 ) — 6,740 Amortization of deferred financing charges and note discounts, net — 8,786 — 1,741 — 10,527 Share-based compensation — — 6,432 3,158 — 9,590 (Gain) loss on disposal of operating assets, net — — (35,020 ) 5,673 — (29,347 ) Loss on Due from iHeartCommunications 855,648 — — — — 855,648 Loss on investments, net — — — 1,045 — 1,045 Equity in (earnings) loss of nonconsolidated affiliates (114,363 ) (117 ) 22,754 1,981 90,735 990 Foreign exchange transaction gain — — (27 ) (29,536 ) — (29,563 ) Other reconciling items, net — — (3,423 ) (1,287 ) — (4,710 ) Changes in operating assets and liabilities, net of effects of acquisitions and dispositions: Increase in accounts receivable — — (9,104 ) (30,686 ) — (39,790 ) Decrease in prepaids and other current assets 1,072 — 2,410 6,126 — 9,608 Increase (decrease) in accrued expenses (436 ) (59,968 ) 56,926 (3,838 ) — (7,316 ) Increase (decrease) in accounts payable — — (7,305 ) 3,179 — (4,126 ) Increase (decrease) in accrued interest — — (77 ) 508 — 431 Decrease in deferred income — — (8,401 ) (4,872 ) — (13,273 ) Changes in other operating assets and liabilities — — (3,067 ) 3,876 — 809 Net cash provided by (used for) operating activities $ 3,691 $ (62,854 ) $ 109,495 $ 109,786 $ — $ 160,118 Cash flows from investing activities: Purchases of property, plant and equipment — — (73,641 ) (150,597 ) — (224,238 ) Proceeds from disposal of assets — — 55,747 16,302 — 72,049 Purchases of other operating assets — — (757 ) (80 ) — (837 ) (Increase) decrease in intercompany notes receivable, net — 149,612 11 (11,284 ) (138,339 ) — Dividends from subsidiaries — — 10,710 — (10,710 ) — Change in other, net — — (5 ) (1,491 ) — (1,496 ) Net cash provided by (used for) investing activities $ — $ 149,612 $ (7,935 ) $ (147,150 ) $ (149,049 ) $ (154,522 ) Cash flows from financing activities: Payments on credit facilities — — — (909 ) — (909 ) Proceeds from long-term debt — — — 156,000 — 156,000 Payments on long-term debt — — (100 ) (648 ) — (748 ) Net transfers to iHeartCommunications (181,939 ) — — — — (181,939 ) Dividends and other payments to noncontrolling interests — — — (12,010 ) — (12,010 ) Dividends paid (332,824 ) — — (10,710 ) 10,710 (332,824 ) Increase (decrease) in intercompany notes payable, net — 11,273 — (149,612 ) 138,339 — Intercompany funding 239,908 (98,031 ) (140,160 ) (1,717 ) — — Change in other, net (1,468 ) — (1 ) (5,614 ) — (7,083 ) Net cash used for financing activities (276,323 ) (86,758 ) (140,261 ) (25,220 ) 149,049 (379,513 ) Effect of exchange rate changes on cash — — — 9,536 — 9,536 Net decrease in cash and cash equivalents (272,632 ) — (38,701 ) (53,048 ) — (364,381 ) Cash and cash equivalents at beginning of year 300,285 — 61,542 190,864 — 552,691 Cash and cash equivalents at end of year $ 27,653 $ — $ 22,841 $ 137,816 $ — $ 188,310 (In thousands) Year Ended December 31, 2016 Parent Subsidiary Guarantor Non-Guarantor Company Issuer Subsidiaries Subsidiaries Eliminations Consolidated Cash flows from operating activities: Consolidated net income (loss) $ 135,070 $ (29,124 ) $ 130,558 $ 63,321 $ (141,948 ) $ 157,877 Reconciling items: Impairment charges — — — 7,274 — 7,274 Depreciation and amortization — — 177,918 166,206 — 344,124 Deferred taxes — — 88,083 (56,058 ) — 32,025 Provision for doubtful accounts — — 5,565 5,094 — 10,659 Amortization of deferred financing charges and note discounts, net — 8,741 — 1,831 — 10,572 Share-based compensation — — 5,658 4,633 — 10,291 Gain on sale of operating and fixed assets — — (293,802 ) (69,683 ) — (363,485 ) (Gain) loss on investments, net — — 250 (781 ) — (531 ) Equity in (earnings) loss of nonconsolidated affiliates (130,558 ) (38,440 ) 25,902 2,837 141,948 1,689 Foreign exchange transaction loss — — 22,874 46,725 — 69,599 Other reconciling items, net — — 1,256 (1,391 ) — (135 ) Changes in operating assets and liabilities, net of effects of acquisitions and dispositions: Decrease in accounts receivable — — 13,660 16,648 — 30,308 (Increase) decrease in prepaids and other current assets 60 — 5,662 (21,661 ) (15,939 ) Increase (decrease) in accrued expenses (227 ) 59,359 (70,834 ) 37,220 — 25,518 Increase (decrease) in accounts payable — — 2,764 (6,561 ) — (3,797 ) Increase (decrease) in accrued interest — — (571 ) 765 — 194 Decrease in deferred income — — (5,265 ) (12,854 ) — (18,119 ) Changes in other operating assets and liabilities — — 9,846 540 — 10,386 Net cash provided by operating activities $ 4,345 $ 536 $ 119,524 $ 184,105 $ — $ 308,510 Cash flows from investing activities: Purchases of property, plant and equipment — — (77,034 ) (152,738 ) — (229,772 ) Proceeds from disposal of assets — — 358,906 449,288 — 808,194 Purchases of other operating assets — — (1,689 ) (555 ) — (2,244 ) Decrease in intercompany notes receivable, net — 220,038 — — (220,038 ) — Dividends from subsidiaries — — 235,467 — (235,467 ) — Change in other, net — (79 ) — (2,098 ) 79 (2,098 ) Net cash provided by investing activities $ — $ 219,959 $ 515,650 $ 293,897 $ (455,426 ) $ 574,080 Cash flows from financing activities: Payments on credit facilities — — — (2,100 ) — (2,100 ) Proceeds from long-term debt — — 801 6,055 — 6,856 Payments on long-term debt — — (79 ) (2,255 ) — (2,334 ) Net transfers to iHeartCommunications 45,099 — — — — 45,099 Dividends and other payments to noncontrolling interests — — — (16,917 ) — (16,917 ) Dividends paid (755,538 ) — (913 ) (234,554 ) 235,467 (755,538 ) Increase (decrease) in intercompany notes payable, net — 5,000 (3,604 ) (221,434 ) 220,038 — Intercompany funding 789,044 (225,495 ) (588,292 ) 24,743 — — Change in other, net (1,366 ) — — (120 ) (79 ) (1,565 ) Net cash provided by (used for) financing activities 77,239 (220,495 ) (592,087 ) (446,582 ) 455,426 (726,499 ) Effect of exchange rate changes on cash — — — (5,330 ) — (5,330 ) Net increase in cash and cash equivalents 81,584 — 43,087 26,090 — 150,761 Cash and cash equivalents at beginning of year 218,701 — 18,455 164,774 — 401,930 Cash and cash equivalents at end of year $ 300,285 $ — $ 61,542 $ 190,864 $ — $ 552,691 (In thousands) Year Ended December 31, 2015 Parent Subsidiary Guarantor Non-Guarantor Company Issuer Subsidiaries Subsidiaries Eliminations Consolidated Cash flows from operating activities: Consolidated net income (loss) $ (58,769 ) $ 14,013 $ (63,290 ) $ 50,236 $ (905 ) $ (58,715 ) Reconciling items: Impairment charges — — 21,631 — — 21,631 Depreciation and amortization — — 194,891 181,071 — 375,962 Deferred taxes — 1,282 7,305 (2,685 ) — 5,902 Provision for doubtful accounts — — 5,398 7,986 — 13,384 Amortization of deferred financing charges and note discounts, net — 7,468 1,230 72 — 8,770 Share-based compensation — — 5,855 2,647 — 8,502 Gain on sale of operating and fixed assets — — (1,235 ) (4,233 ) — (5,468 ) Equity in (earnings) loss of nonconsolidated affiliates 63,290 (23,020 ) (18,246 ) 1,935 (23,670 ) 289 Foreign exchange transaction gain — (3,440 ) (11 ) (11,339 ) — (14,790 ) Other reconciling items, net — — 1,350 — — 1,350 Changes in operating assets and liabilities, net of effects of acquisitions and dispositions: Increase in accounts receivable — — (12,878 ) (44,702 ) — (57,580 ) (Increase) decrease in prepaids and other current assets (124 ) (3,433 ) 4,664 (8,685 ) — (7,578 ) Increase (decrease) in accrued expenses 486 (983 ) 5,476 (1,362 ) — 3,617 Increase (decrease) in accounts payable — — (15,742 ) 21,472 19,960 25,690 Increase (decrease) in accrued interest — (3,199 ) 15 (888 ) — (4,072 ) Increase (decrease) in deferred income — — (6,879 ) 9,428 — 2,549 Changes in other operating assets and liabilities — — (17,114 ) (3,644 ) — (20,758 ) Net cash provided by (used by) operating activities 4,883 (11,312 ) 112,420 197,309 (4,615 ) 298,685 Cash flows from investing activities: Purchases of property, plant and equipment — — (72,374 ) (145,958 ) — (218,332 ) Proceeds from disposal of assets — — 4,626 6,638 — 11,264 Purchases of other operating assets — — (23,042 ) (598 ) — (23,640 ) Decrease in intercompany notes receivable, net — 70,125 — — (70,125 ) — Dividends from subsidiaries — 157,570 — — (157,570 ) — Change in other, net — (8,606 ) (909 ) (27,015 ) 9,513 (27,017 ) Net cash provided by (used by) investing activities — 219,089 (91,699 ) (166,933 ) (218,182 ) (257,725 ) Cash flows from financing activities: Payments on credit facilities — — — (3,849 ) — (3,849 ) Proceeds from long-term debt — — — 222,777 — 222,777 Payments on long-term debt — — (56 ) — — (56 ) Net transfer to iHeartCommunications 17,007 — — — — 17,007 Dividends and other payments to noncontrolling interests — — — (30,870 ) — (30,870 ) Dividends paid — — — (182,145 ) 182,145 — Decrease in intercompany notes payable, net — — (4,625 ) (65,500 ) 70,125 — Intercompany funding 193,021 (207,777 ) 2,415 12,341 — — Change in other, net 2,885 — — 673 (9,513 ) (5,955 ) Net cash provided by (used by) financing activities 212,913 (207,777 ) (2,266 ) (46,573 ) 242,757 199,054 Effect of exchange rate changes on cash — — — (13,231 ) — (13,231 ) Net increase (decrease) in cash and cash equivalents 217,796 — 18,455 (29,428 ) 19,960 226,783 Cash and cash equivalents at beginning of year 905 — — 194,202 (19,960 ) 175,147 Cash and cash equivalents at end of year $ 218,701 $ — $ 18,455 $ 164,774 $ — $ 401,930 |