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Property, Plant and Equipment, Intangible Assets and Goodwill
 6 Months Ended
Jun. 30, 2011
Property, Plant and Equipment, Intangible Assets and Goodwill  
Property, Plant and Equipment, Intangible Assets and Goodwill

NOTE 2 — PROPERTY, PLANT AND EQUIPMENT, INTANGIBLE ASSETS AND GOODWILL

Acquisitions

On April 29, 2011, Clear Channel Acquisition, LLC, the Company's wholly-owned subsidiary, purchased the traffic business of Westwood One, Inc. ("Westwood One") for $24.3 million. Immediately after closing, the acquired subsidiaries repaid pre-existing, intercompany debt owed by the subsidiaries to Westwood One in the amount of $95.0 million. The acquisition resulted in an increase of $17.2 million to property, plant and equipment, $36.3 million to intangible assets and $66.0 million to goodwill.

Property, Plant and Equipment

The Company's property, plant and equipment consisted of the following classes of assets at June 30, 2011 and December 31, 2010, respectively:

 

(In thousands)    June 30,      December 31,  
   2011      2010  

Land, buildings and improvements

    $ 656,619       $ 652,575   

Structures

      2,740,631         2,623,561   

Towers, transmitters and studio equipment

      390,091         397,434   

Furniture and other equipment

      330,153         282,385   

Construction in progress

      83,337         65,173   
  

 

 

     

 

 

  
     4,200,831         4,021,128   

Less: accumulated depreciation

      1,082,611         875,574   
  

 

 

     

 

 

  

Property, plant and equipment, net

    $ 3,118,220       $ 3,145,554   
     

Definite-lived Intangible Assets

The Company has definite-lived intangible assets which consist primarily of transit and street furniture contracts, talent and representation contracts, customer and advertiser relationships, and site-leases, all of which are amortized over 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. The Company periodically reviews the appropriateness of the amortization periods related to its definite-lived assets. These assets are recorded at cost.

The following table presents the gross carrying amount and accumulated amortization for each major class of definite-lived intangible assets at June 30, 2011 and December 31, 2010, respectively:

 

(In thousands)    June 30, 2011      December 31, 2010  
   Gross Carrying
Amount		      Accumulated
Amortization		      Gross Carrying
Amount		      Accumulated
Amortization		  

Transit, street furniture and other outdoor contractual rights

    $ 810,930       $ 293,416       $ 789,867       $ 241,461   

Customer / advertiser relationships

      1,210,289         349,805         1,210,205         289,824   

Talent contracts

      350,612         119,344         317,352         99,050   

Representation contracts

      232,412         119,447         231,623         101,650   

Other

      558,287         98,532         551,197         80,110   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total

    $ 3,162,530       $ 980,544       $ 3,100,244       $ 812,095   
  

 

 

     

 

 

     

 

 

     

 

 

  

Total amortization expense related to definite-lived intangible assets was $80.4 million and $87.1 million for the three months ended June 30, 2011 and 2010, respectively, and $159.5 million and $168.2 million for the six months ended June 30, 2011 and 2010, respectively.

As acquisitions and dispositions occur in the future, amortization expense may vary. The following table presents the Company's estimate of amortization expense for each of the five succeeding fiscal years for definite-lived intangible assets:

 

        (In thousands)       
  

2012

    $ 302,913   
  

2013

      283,773   
  

2014

      262,101   
  

2015

      239,430   
  

2016

      218,479   

Indefinite-lived Intangible Assets

The Company's indefinite-lived intangible assets consist of Federal Communications Commission ("FCC") broadcast licenses and billboard permits as follows:

 

(In thousands)    June 30,      December 31,  
   2011      2010  

FCC broadcast licenses

    $   2,418,366       $ 2,423,828   

Billboard permits

      1,113,889         1,114,413   
  

 

 

     

 

 

  

Total indefinite-lived intangible assets

    $   3,532,255       $ 3,538,241   
  

 

 

     

 

 

  

Goodwill

The following table presents the changes in the carrying amount of goodwill in each of the Company's reportable segments.

 

(In thousands)    Radio     Americas
Outdoor		      International
Outdoor		     Other      Total  

Balance as of December 31, 2009

    $ 3,146,869      $ 585,249       $ 276,343      $ 116,544       $ 4,125,005   

Impairment

      —        —         (2,142 )      —         (2,142 ) 

Acquisitions

      —        —         —        342         342   

Dispositions

      (5,325 )      —         —        —         (5,325 ) 

Foreign currency

      —        285         3,299        —         3,584   

Other

      (1,346 )      —         (792 )      —         (2,138 ) 
  

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  

Balance as of December 31, 2010

    $ 3,140,198      $ 585,534       $ 276,708      $ 116,886       $ 4,119,326   
  

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  

Acquisitions

      78,246        —         —        211         78,457   

Dispositions

      (9,400 )      —         —        —         (9,400 ) 

Foreign currency

      —        327         22,083        —         22,410   

Other adjustments

      (28 )      —         —        —         (28 ) 
  

 

 

    

 

 

     

 

 

    

 

 

     

 

 

  

Balance as of June 30, 2011

    $ 3,209,016      $ 585,861       $ 298,791      $ 117,097       $ 4,210,765