| SEGMENT DATA |
SEGMENT DATA
For all periods presented, the Company’s reportable segments are Concerts, Sponsorship & Advertising and Ticketing. The Concerts segment involves the promotion of live music events globally in the Company’s owned or operated venues and in rented third-party venues, the production of music festivals, the operation and management of music venues, the creation of associated content and the provision of management and other services to artists. The Sponsorship & Advertising segment manages the development of strategic sponsorship programs in addition to the sale of international, national and local sponsorships and placement of advertising such as signage, promotional programs, rich media offerings, including advertising associated with live streaming and music-related content, and ads across the Company’s distribution network of venues, events and websites. The Ticketing segment involves the management of the Company’s global ticketing operations, including providing ticketing software and services to clients, and consumers with a marketplace, both online and mobile, for tickets and event information, and is responsible for the Company’s primary ticketing website, www.ticketmaster.com.
Revenue and expenses earned and charged between segments are eliminated in consolidation. The Company’s capital expenditures below include accruals for amounts incurred but not yet paid for, but are not reduced by reimbursements received from outside parties such as landlords or replacements funded by insurance proceeds.
The Company manages its working capital on a consolidated basis. Accordingly, segment assets are not reported to, or used by, the Company’s management to allocate resources to or assess performance of the segments, and therefore, total segment assets have not been presented.
There were no customers that individually accounted for more than 10% of the Company’s consolidated revenue in any year.
The following table presents the results of operations for the Company’s reportable segments for the years ending December 31, 2018, 2017 and 2016:
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Concerts |
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Sponsorship
& Advertising |
|
Ticketing |
|
Other |
|
Corporate |
|
Eliminations |
|
Consolidated |
|
(in thousands) |
2018 |
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Revenue |
$ |
8,770,031 |
|
|
$ |
503,968 |
|
|
$ |
1,529,566 |
|
|
$ |
3,724 |
|
|
$ |
— |
|
|
$ |
(19,489 |
) |
|
$ |
10,787,800 |
|
Direct operating expenses |
7,340,757 |
|
|
92,494 |
|
|
549,265 |
|
|
4,905 |
|
|
— |
|
|
(19,489 |
) |
|
7,967,932 |
|
Selling, general and administrative expenses |
1,248,346 |
|
|
97,540 |
|
|
634,829 |
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|
16,313 |
|
|
— |
|
|
— |
|
|
1,997,028 |
|
Depreciation and amortization |
206,772 |
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|
30,779 |
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|
143,551 |
|
|
817 |
|
|
4,610 |
|
|
— |
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|
386,529 |
|
Loss (gain) on disposal of operating assets |
10,361 |
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|
2 |
|
|
7 |
|
|
— |
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|
(1 |
) |
|
— |
|
|
10,369 |
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Corporate expenses |
— |
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|
— |
|
|
— |
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|
— |
|
|
153,406 |
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|
— |
|
|
153,406 |
|
Operating income (loss) |
$ |
(36,205 |
) |
|
$ |
283,153 |
|
|
$ |
201,914 |
|
|
$ |
(18,311 |
) |
|
$ |
(158,015 |
) |
|
$ |
— |
|
|
$ |
272,536 |
|
Intersegment revenue |
$ |
5,193 |
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|
$ |
— |
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|
$ |
14,296 |
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|
$ |
— |
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|
$ |
— |
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|
$ |
(19,489 |
) |
|
$ |
— |
|
Capital expenditures |
$ |
129,129 |
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|
$ |
7,541 |
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|
$ |
110,202 |
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|
$ |
169 |
|
|
$ |
15,273 |
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|
$ |
— |
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|
$ |
262,314 |
|
2017 |
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Revenue |
$ |
7,892,076 |
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|
$ |
445,148 |
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|
$ |
1,346,510 |
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|
$ |
21,012 |
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|
$ |
— |
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|
$ |
(17,524 |
) |
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$ |
9,687,222 |
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Direct operating expenses |
6,641,071 |
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|
78,725 |
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|
460,881 |
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|
18,746 |
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— |
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(17,525 |
) |
|
7,181,898 |
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Selling, general and administrative expenses |
1,119,335 |
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|
87,268 |
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|
681,948 |
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|
19,172 |
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|
— |
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— |
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|
1,907,723 |
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Depreciation and amortization |
226,315 |
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|
27,669 |
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|
112,727 |
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|
432 |
|
|
5,057 |
|
|
1 |
|
|
372,201 |
|
Loss (gain) on disposal of operating assets |
(1,056 |
) |
|
— |
|
|
49 |
|
|
— |
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|
38 |
|
|
— |
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|
(969 |
) |
Corporate expenses |
— |
|
|
— |
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|
— |
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|
— |
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|
134,972 |
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|
— |
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|
134,972 |
|
Operating income (loss) |
$ |
(93,589 |
) |
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$ |
251,486 |
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$ |
90,905 |
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$ |
(17,338 |
) |
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$ |
(140,067 |
) |
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$ |
— |
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$ |
91,397 |
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Intersegment revenue |
$ |
1,061 |
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$ |
— |
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$ |
16,463 |
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$ |
— |
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$ |
— |
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$ |
(17,524 |
) |
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$ |
— |
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Capital expenditures |
$ |
109,801 |
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$ |
6,701 |
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$ |
105,317 |
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$ |
149 |
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$ |
25,926 |
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$ |
— |
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$ |
247,894 |
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2016 |
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Revenue |
$ |
6,283,521 |
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|
$ |
377,618 |
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|
$ |
1,166,029 |
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|
$ |
7,978 |
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|
$ |
— |
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|
$ |
(8,810 |
) |
|
$ |
7,826,336 |
|
Direct operating expenses |
5,202,097 |
|
|
60,218 |
|
|
382,690 |
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|
2,902 |
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|
— |
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|
(8,730 |
) |
|
5,639,177 |
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Concerts |
|
Sponsorship
& Advertising |
|
Ticketing |
|
Other |
|
Corporate |
|
Eliminations |
|
Consolidated |
|
(in thousands) |
Selling, general and administrative expenses |
950,060 |
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|
71,089 |
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|
510,490 |
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|
16,811 |
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|
— |
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— |
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|
1,548,450 |
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Depreciation and amortization |
194,715 |
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|
18,206 |
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|
98,290 |
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|
2,940 |
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|
4,433 |
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|
— |
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|
318,584 |
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Loss (gain) on disposal of operating assets |
(61 |
) |
|
— |
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|
68 |
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|
— |
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|
117 |
|
|
— |
|
|
124 |
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Corporate expenses |
— |
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|
— |
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|
— |
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|
— |
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|
125,141 |
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|
(80 |
) |
|
125,061 |
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Operating income (loss) |
$ |
(63,290 |
) |
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$ |
228,105 |
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$ |
174,491 |
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$ |
(14,675 |
) |
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$ |
(129,691 |
) |
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$ |
— |
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$ |
194,940 |
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Intersegment revenue |
$ |
202 |
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$ |
— |
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$ |
8,528 |
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$ |
80 |
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$ |
— |
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$ |
(8,810 |
) |
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$ |
— |
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Capital expenditures |
$ |
87,306 |
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$ |
2,161 |
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$ |
91,285 |
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|
$ |
1,028 |
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|
$ |
7,824 |
|
|
$ |
— |
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|
$ |
189,604 |
|
The following table provides revenue and long-lived assets for the Company’s foreign operations included in the consolidated financial statements:
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Total Foreign Operations |
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Total Domestic Operations |
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Consolidated Total |
|
(in thousands) |
2018 |
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Revenue |
$ |
3,661,222 |
|
|
$ |
7,126,578 |
|
|
$ |
10,787,800 |
|
Long-lived assets |
$ |
199,299 |
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|
$ |
747,294 |
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|
$ |
946,593 |
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2017 |
|
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Revenue |
$ |
3,408,661 |
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|
$ |
6,278,561 |
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|
$ |
9,687,222 |
|
Long-lived assets |
$ |
201,724 |
|
|
$ |
684,212 |
|
|
$ |
885,936 |
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2016 |
|
|
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Revenue |
$ |
2,436,033 |
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|
$ |
5,390,303 |
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|
$ |
7,826,336 |
|
Long-lived assets |
$ |
174,160 |
|
|
$ |
577,376 |
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|
$ |
751,536 |
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