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LIABILITIES SUBJECT TO COMPROMISE | 9 Months Ended
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Sep. 30, 2018
Reorganizations [Abstract] |
LIABILITIES SUBJECT TO COMPROMISE | LIABILITIES SUBJECT TO COMPROMISE As discussed in Note 1, "Basis of Presentation", since the Petition Date, the Company has been operating as debtor in possession under the jurisdiction of the Bankruptcy Court and in accordance with provisions of the Bankruptcy Code. On the accompanying Consolidated Balance Sheets, the caption “Liabilities subject to compromise” reflects the expected allowed amount of the pre-petition claims that are not fully secured and that have at least a possibility of not being repaid at the full claim amount. Liabilities subject to compromise at September 30, 2018 consisted of the following:
(In thousands) | September 30, 2018
Accounts payable | $ | 44,132 |
Accrued expenses | 27,509 |
Deferred taxes | 622,415 |
Other long-term liabilities | 89,730 |
Accounts payable, accrued and other liabilities | 783,786 |
Debt subject to compromise | 15,148,955 |
Accrued interest on debt subject to compromise | 542,673 |
Long-term debt and accrued interest | 15,691,628 |
Total liabilities subject to compromise | $ | 16,475,414 |
Determination of the value at which liabilities will ultimately be settled cannot be made until the Bankruptcy Court approves the Plan of Reorganization. The Company will continue to evaluate the amount and classification of its pre-petition liabilities. Any additional liabilities that are subject to compromise will be recognized accordingly, and the aggregate amount of liabilities subject to compromise may change. REORGANIZATION ITEMS, NET Reorganization items incurred as a result of the Chapter 11 Cases are presented separately in the accompanying statements of operations for the three and nine months ended September 30, 2018 and were as follows:
(In thousands) | Three Months Ended September 30, 2018 |  | Nine Months Ended September 30, 2018
Write-off of deferred long-term debt fees | $ | — |  |  | $ | 67,079 |
Write-off of original issue discount on debt subject to compromise | — |  |  | 131,100 |
Debtor-in-possession refinancing costs | — |  |  | 10,546 |
Professional fees and other bankruptcy related costs | 52,475 |  |  | 104,545 |
Reorganization items, net | $ | 52,475 |  |  | $ | 313,270 |
Professional fees included in Reorganization items, net represent fees for post-petition expenses related to the Chapter 11 Cases. Write-off of deferred long-term debt fees and write-off of original issue discount are included in Reorganization items, net. As of September 30, 2018, $56.2 million of Reorganization items, net were unpaid and accrued in Accounts Payable and Accrued Expenses in the accompanying Consolidated Balance Sheet. Reorganization items, net of $6.7 million relating to the Debtor-in-possession financing costs were netted against the $125.0 million proceeds received from issuance of the DIP Facility. CONDENSED COMBINED DEBTOR-IN-POSSESSION FINANCIAL INFORMATION The financial statements below represent the condensed combined financial statements of the Debtors. The results of the Company’s Non-Filing Entities, which are comprised primarily of the Company's Americas outdoor and International outdoor segments, are not included in these condensed combined financial statements. Intercompany transactions among the Debtors have been eliminated in the financial statements contained herein. Intercompany transactions among the Debtors and the Non-Filing Entities have not been eliminated in the Debtors’ financial statements. Debtors' Balance Sheet
(In thousands) | September 30, 2018
| (Unaudited)
CURRENT ASSETS |
Cash and cash equivalents | $ | 76,154 |
Accounts receivable, net of allowance of $24,455 | 809,974 |
Prepaid expenses | 115,308 |
Other current assets | 25,651 |
Total Current Assets | 1,027,087 |
PROPERTY, PLANT AND EQUIPMENT |
Property, plant and equipment, net | 462,609 |
INTANGIBLE ASSETS AND GOODWILL |
Indefinite-lived intangibles - licenses | 2,409,326 |
Other intangibles, net | 171,134 |
Goodwill | 3,335,433 |
OTHER ASSETS |
Other assets | 58,080 |
Total Assets | $ | 7,463,669 |
CURRENT LIABILITIES |  |
Accounts payable | $ | 49,737 |
Intercompany payable | 9,227 |
Accrued expenses | 240,412 |
Accrued interest | 592 |
Deferred income | 130,236 |
Current portion of long-term debt | — |
Total Current Liabilities | 430,204 |
Long-term debt | — |
Other long-term liabilities | 233,769 |
Liabilities subject to compromise1 | 17,507,135 |
EQUITY (DEFICIT) |
Equity (Deficit) | (10,707,439 | )
Total Liabilities and Equity (Deficit) | $ | 7,463,669 |
1 In connection with the cash management arrangements with CCOH, the Company maintains an intercompany revolving promissory note payable by the Company to CCOH (the "Intercompany Note"), which matures on May 15, 2019. Liabilities subject to compromise include the principal amount outstanding under the Intercompany Note, which totals $1,031.7 million as of September 30, 2018. Debtors' Statements of Operations
(In thousands) | Three Months Ended September 30, 2018 |  | Nine Months Ended September 30, 2018
Revenue | $ | 909,984 |  |  | $ | 2,558,629 |
Operating expenses: |  |  |
Direct operating expenses (excludes depreciation and amortization) | 267,117 |  |  | 768,868 |
Selling, general and administrative expenses (excludes depreciation and amortization) | 322,410 |  |  | 986,654 |
Corporate expenses (excludes depreciation and amortization) | 47,431 |  |  | 134,293 |
Depreciation and amortization | 43,036 |  |  | 174,773 |
Impairment charges | 33,151 |  |  | 33,151 |
Other operating expense, net | (2,458 | ) |  | (6,908 | )
Operating income | 194,381 |  |  | 453,982 |
Interest expense, net1 | 2,638 |  |  | 356,179 |
Equity in loss of nonconsolidated affiliates | (31 | ) |  | (94 | )
Gain on extinguishment of debt | — |  |  | 5,667 |
Dividend income2 | 269 |  |  | 25,756 |
Other expense, net | (410 | ) |  | (22,648 | )
Reorganization items, net | 52,475 |  |  | 313,270 |
Income (loss) before income taxes | 139,096 |  |  | (206,786 | )
Income tax benefit (expense) | (10,681 | ) |  | 10,465 |
Net income (loss) | $ | 128,415 |  |  | $ | (196,321 | )
1 Includes interest incurred during the three months ended September 30, 2018 in relation to the post-petition Intercompany Note and interest incurred during the nine months ended September 30, 2018 in relation to the pre-petition and post-petition Intercompany Notes. 2 Consists of cash dividends received from Non-Debtor entities during the three and nine months ended September 30, 2018. Debtors' Statement of Cash Flows
(In thousands) | Nine Months Ended September 30, 2018
Cash flows from operating activities: |
Consolidated net loss | $ | (196,321 | )
Reconciling items: |
Impairment charges | 33,151 |
Depreciation and amortization | 174,773 |
Deferred taxes | (18,869 | )
Provision for doubtful accounts | 14,747 |
Amortization of deferred financing charges and note discounts, net | 11,871 |
Non-cash Reorganization items, net | 261,057 |
Share-based compensation | 1,628 |
Loss on disposal of operating and other assets | 2,738 |
Equity in loss of nonconsolidated affiliates | 94 |
Gain on extinguishment of debt | (5,667 | )
Barter and trade income | (6,228 | )
Other reconciling items, net | (320 | )
Changes in operating assets and liabilities, net of effects of acquisitions and dispositions: |
Decrease in accounts receivable | 20,906 |
Increase in prepaid expenses and other current assets | (18,844 | )
Decrease in accrued expenses | (41,848 | )
Increase in accounts payable | 21,954 |
Increase in accrued interest | 302,724 |
Increase in deferred income | 11,323 |
Changes in other operating assets and liabilities | (13,726 | )
Net cash provided by operating activities | 555,143 |
Cash flows from investing activities: |
Purchases of property, plant and equipment | (47,309 | )
Proceeds from disposal of assets | 682 |
Purchases of other operating assets | (305 | )
Change in other, net | (95 | )
Net cash used for investing activities | (47,027 | )
Cash flows from financing activities: |
Draws on credit facilities | 143,332 |
Payments on credit facilities | (258,308 | )
Payments on long-term debt | (358,880 | )
Net transfers to related parties | (57,078 | )
Change in other, net | (74 | )
Net cash used for financing activities | (531,008 | )
Effect of exchange rate changes on cash, cash equivalents and restricted cash | — |
Net decrease in cash, cash equivalents and restricted cash | (22,892 | )
Cash, cash equivalents and restricted cash at beginning of period | 102,468 |
Cash, cash equivalents and restricted cash at end of period | $ | 79,576 |

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- Definition The entire disclosure for the description and amounts of reorganization under Chapter 11 of the US Bankruptcy Code. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 852 -URI http://asc.fasb.org/topic&trid=2209115 + Details
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- References No definition available. + Details
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