REORGANIZATION ITEMS, NET

3 Months Ended

Mar. 31, 2018

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, 2018 consisted of the following:



(In thousands)	March 31, 2018
Accounts payable	$	64,448
Accrued expenses	142,443
Deferred taxes	502,334
Accounts payable, accrued and other liabilities	709,225
Debt subject to compromise	15,150,191
Accrued interest on debt subject to compromise	540,862
Other long-term liabilities	88,113
Long-term debt, accrued interest and other long-term liabilities	15,779,166
Total liabilities subject to compromise	$	16,488,391

Determination of the value at which liabilities will ultimately be settled cannot be made until the Bankruptcy Court approves the Plan of Reorganization. The Company will continue to evaluate the amount and classification of its pre-petition liabilities. Any additional liabilities that are subject to compromise will be recognized accordingly, and the aggregate amount of liabilities subject to compromise may change.

REORGANIZATION ITEMS, NET

Reorganization items incurred as a result of the Chapter 11 Cases are presented separately in the accompanying statements of operations for the three months ended March 31, 2018 and were as follows:



(In thousands)	Three Months Ended March 31, 2018
Write-off of deferred long-term debt fees on debt subject to compromise	$	54,670
Write-off of original issue discount on debt subject to compromise	131,100
Professional fees	6,285
Reorganization items, net	$	192,055

Professional fees included in Reorganization items, net represent fees for post-petition expenses related to the Chapter 11 Cases. Deferred long-term debt fees and original issue discount are included in Reorganization items, net.

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.

CONDENSED COMBINED DEBTOR-IN-POSSESSION FINANCIAL INFORMATION

The financial statements below represent the condensed combined financial statements of the Debtors. Effective January 1, 2018, 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, 2018
	(Unaudited)
CURRENT ASSETS
Cash and cash equivalents	$	120,121
Accounts receivable, net of allowance of $26.8 million	728,528
Prepaid expenses	118,179
Other current assets	83,269
Total Current Assets	1,050,097
PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment, net	473,231
INTANGIBLE ASSETS AND GOODWILL
Indefinite-lived intangibles - licenses	2,442,785
Other intangibles, net	230,075
Goodwill	3,335,433
OTHER ASSETS
Other assets	47,398
Total Assets	$	7,579,019
CURRENT LIABILITIES
Accounts payable	$	15,001
Intercompany payable	193
Accrued expenses	90,026
Accrued interest	1,363
Deferred income	137,592
Total Current Liabilities	244,175
Long-term debt	365,811
Other long-term liabilities	237,313
Liabilities subject to compromise¹	17,520,114
EQUITY (DEFICIT)
Equity	(10,788,394		)
Total Liabilities and Equity	$	7,579,019

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 principal amount outstanding under the Intercompany Note, which totals $1,031.7 million as of March 31, 2018.

Debtors' Statement of Operations



(In thousands)	Three Months Ended March 31, 2018
Revenue	$	767,007
Operating expenses:
Direct operating expenses (excludes depreciation and amortization)	239,461
Selling, general and administrative expenses (excludes depreciation and amortization)	342,951
Corporate expenses (excludes depreciation and amortization)	44,308
Depreciation and amortization	67,116
Other operating expense, net	(3,232		)
Operating income	69,939
Interest expense, net¹	342,564
Equity in loss of nonconsolidated affiliates	(32		)
Gain on extinguishment of debt	5,667
Dividend income²	25,483
Other expense, net	(20,060		)
Reorganization items, net	192,055
Loss before income taxes	(453,622		)
Income tax benefit	162,973
Net loss	$	(290,649	)

¹Includes interest incurred during the three months ended March 31, 2018 in relation to the Intercompany Note.

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

Debtors' Statement of Cash Flows



(In thousands)	Three Months Ended March 31, 2018
Cash flows from operating activities:
Consolidated net loss	$	(290,649	)
Reconciling items:
Depreciation and amortization	67,116
Deferred taxes	(138,949		)
Provision for doubtful accounts	6,829
Amortization of deferred financing charges and note discounts, net	11,043
Non-cash Reorganization items, net	191,903
Share-based compensation	578
Loss on disposal of operating and other assets	1,864
Equity in loss of nonconsolidated affiliates	32
Gain on extinguishment of debt	(5,667		)
Barter and trade income	(357		)
Other reconciling items, net	(80		)
Changes in operating assets and liabilities, net of effects of acquisitions and dispositions:
Decrease in accounts receivable	110,270
Increase in prepaid expenses and other current assets	(66,429		)
Decrease in accrued expenses	(27,223		)
Increase in accounts payable	4,444
Increase in accrued interest	301,896
Increase in deferred income	13,604
Changes in other operating assets and liabilities	(1,116		)
Net cash provided by operating activities	179,109
Cash flows from investing activities:
Purchases of property, plant and equipment	(10,010		)
Proceeds from disposal of assets	1,028
Purchases of other operating assets	(305		)
Change in other, net	(29		)
Net cash used for investing activities	(9,316		)
Cash flows from financing activities:
Draws on credit facilities	25,000
Payments on credit facilities	(59,000		)
Payments on long-term debt	(50,027		)
Net transfers to related parties	(51,996		)
Change in other, net	2
Net cash used for financing activities	(136,021		)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	—
Net increase in cash, cash equivalents and restricted cash	33,772
Cash, cash equivalents and restricted cash at beginning of period	102,468
Cash, cash equivalents and restricted cash at end of period	$	136,240