Estate of Joseph Cidulka, Deceased, James S. Bozik, Administrator - Page 11

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               SOAI had more billboards than any other company in its                 
          market area of northwest Indiana, despite the fact that it faced            
          substantial outdoor advertising competition from Whiteco, 3M                
          National, Bik/Odeguard, and various individuals in 1981 and 1982.           
          Neither SOAI nor Whiteco had a monopoly in the local market area.           
               SOAI had a diversified customer base and was not dependent             
          on any one lease for more than a small portion of its business.             
          Petitioner did not identify any specific sign location that SOAI            
          lost during the years at issue, although an attrition rate of 0.5           
          to 1 percent per year was standard in the outdoor advertising               
          industry.  SOAI's value is attributable to its lease contracts              
          associated with its outdoor advertising structures, and its                 
          income was derived primarily from advertising contracts for the             
          use of outdoor signs.                                                       
               The billboards on which the outdoor advertising industry               
          sells advertising space are typically constructed from wood or              
          steel and are generally located on leased property.  The                    
          billboard space is rented to the advertiser for a specific time             
          period.  Each billboard is covered either with a "posted" paper             
          or hand-painted advertising messages supplied by the advertiser             
          or an advertising agency.                                                   
               The Outdoor Advertising Association of America, which is a             
          national trade association representing the outdoor advertising             
          industry, suggests standards for billboards.  Types of billboards           
          include permanent paints (paints), rotary bulletins, posters, and           




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Last modified: May 25, 2011