UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934
Date of report: January 6, 2003
CLEAR CHANNEL COMMUNICATIONS, INC.
(Exact Name of Registrant as Specified in Its Charter)
TEXAS 1-9645 74-1787539
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
200 East Basse Road, San Antonio, Texas 78209
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (210) 822-2828
ITEM 5. OTHER EVENTS.
INTRODUCTION
In conjunction with the Company's offering of senior notes in an aggregate
principal amount of $800 million, the Company is filing the following Statement
of Financial Accounting Standards No. 142, Goodwill and Other Intangible Assets,
transitional disclosure for the years ended December 31, 2000 and 1999. This
transitional disclosure information for 2000 and 1999 has not been previously
required, and therefore has not been disclosed.
STATEMENT 142 TRANSITIONAL DISCLOSURE
On January 1, 2002, we adopted Statement 142. Statement 142 addresses
financial accounting and reporting for acquired goodwill and other intangible
assets and supersedes APB Opinion No. 17, Intangible Assets. Statement 142
establishes new accounting for goodwill and other intangible assets recorded in
business combinations. Under the new rules, goodwill and intangible assets
deemed to have indefinite lives are no longer amortized but are subject to
annual impairment tests in accordance with the statement. Other intangible
assets will continue to be amortized over their useful lives.
Statement 142 does not change the requirements of Statement of Financial
Accounting Standards No. 109, Accounting for Income Taxes, for recognition of
deferred taxes related to FCC licenses and tax-deductible goodwill. As a result
of adopting Statement 142, a deferred tax benefit for the difference between
book and tax amortization on our FCC licenses and tax-deductible goodwill will
no longer be recognized as these assets are no longer amortized for book
purposes.
The following table presents the impact of Statement 142 on net earnings
(loss) and net earnings (loss) per share as if the standard had been in effect
for the two years ended December 31, 2000:
YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
1999 2000
------------ ------------
(IN THOUSANDS, EXCEPT PER
SHARE DATA)
ADJUSTED NET INCOME:
Reported income before extraordinary item................. $ 85,655 $ 248,808
Add back: goodwill amortization........................... 314,199 513,451
Add back: license amortization............................ 140,458 411,395
Tax impact................................................ (113,838) (209,652)
--------- ---------
Adjusted income before extraordinary item................... 426,474 964,002
Extraordinary item.......................................... (13,185) --
--------- ---------
Adjusted net income......................................... $ 413,289 $ 964,002
========= =========
BASIC EARNINGS PER SHARE:
Reported income before extraordinary item................. $ .27 $ .59
Add back: goodwill amortization........................... 1.01 1.21
Add back: license amortization............................ .45 .97
Tax impact................................................ (.36) (.50)
--------- ---------
Adjusted income before extraordinary item................... 1.37 2.27
Extraordinary item.......................................... (.04) --
--------- ---------
Adjusted earnings per share -- Basic........................ $ 1.33 $ 2.27
========= =========
DILUTED EARNINGS PER SHARE:
Reported income before extraordinary item................. $ .26 $ .57
Anti-dilutive adjustment.................................. .02 .03
Add back: goodwill amortization........................... .94 1.11
Add back: license amortization............................ .42 .89
Tax impact................................................ (.34) (.46)
--------- ---------
Adjusted income before extraordinary item................... 1.30 2.14
Extraordinary item.......................................... (.04) --
--------- ---------
Adjusted earnings per share -- Diluted...................... $ 1.26 $ 2.14
========= =========
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 hereunto duly authorized.
CLEAR CHANNEL COMMUNICATIONS, INC.
Date: January 6, 2003 By: /s/ HERBERT W. HILL JR.
---------------------------------------
Herbert W. Hill, Jr.
Sr. Vice President/
Chief Accounting Officer