Annual report pursuant to Section 13 and 15(d)

SEGMENT DATA

v2.4.0.6
SEGMENT DATA
 12 Months Ended
Dec. 31, 2011
SEGMENT DATA [Abstract]  
SEGMENT DATA
NOTE 14-SEGMENT DATA
 
The Company's reportable segments are Concerts, Ticketing, Artist Nation, eCommerce and Sponsorship.
 
The Concerts segment involves the promotion of live music events globally in the Company's owned and/or operated venues and in rented third-party venues, the production of music festivals and the operation and management of music venues and is the aggregation of the Company's North American Concerts and International Concerts operating segments. The Ticketing segment involves the management of the Company's global ticketing operations including providing ticketing software and services to clients and is the aggregation of the Company's North American Ticketing and International Ticketing operating segments. The Artist Nation segment provides management services to artists and other services including merchandise and VIP tickets and is the aggregation of the Company's Artist Management and Artist Services operating segments. The eCommerce segment provides online access for customers relating to ticket and event information, sells advertising and banner ads and is responsible for the Company's primary websites, www.livenation.com and www.ticketmaster.com. The Sponsorship segment manages the development of strategic sponsorship programs in addition to the sale of international, national and local sponsorships and placement of advertising including signage and promotional programs.
 
The Company has reclassified all periods presented to conform to the current period presentation. Revenue and expenses earned and charged between segments are eliminated in consolidation. Corporate expenses and all line items below operating income (loss) are managed on a total company basis.
 
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 disclosed.
 
There are no customers that individually account for more than ten percent 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, 2011, 2010 and 2009:
 
   
Concerts
    
Ticketing
    
Artist
 Nation
   
eCommerce
    
Sponsorship
    
Other
    
Corporate
    
Eliminations
    
Consolidated
  
2011  
(in thousands)
  
Revenue
   $ 3,506,188     $ 1,190,556     $ 393,129     $ 144,410     $ 179,734     $ 3,487     $ -     $ (33,506 )   $ 5,383,998  
Direct operating expenses
     2,946,410       560,655       260,884       22,804       33,171       (1,839 )     -       (32,597 )     3,789,488  
Selling, general and administrative expenses
     535,500       364,043       113,199       70,697       26,411       2,119       -       -       1,111,969  
Depreciation and amortization
     132,441       147,443       50,412       10,628       483       54       2,466       (909 )     343,018  
Loss (gain) on sale of operating assets
     (880 )     (101 )     1,264       5       -       689       1       -       978  
Corporate expenses
     -       -       -       -       -       -       112,157       -       112,157  
Acquisition transaction expenses
     (2,286 )     1,314       (7,758 )     -       -       -       16,781       -       8,051  
Operating income (loss)
   $ (104,997 )   $ 117,202     $ (24,872 )   $ 40,276     $ 119,669     $ 2,464     $ (131,405 )   $ -     $ 18,337  
Intersegment revenue
   $ 18,387     $ 5,045     $ 8,622     $ 1,452     $ -     $ -     $ -     $ (33,506 )   $ -  
Capital expenditures
   $ 21,436     $ 71,300     $ 4,916     $ 6,822     $ 4,094     $ -     $ 3,476     $ -     $ 112,044  
                                                                         
2010                                                                        
Revenue
   $ 3,438,350     $ 1,039,886     $ 362,159     $ 87,858     $ 161,742     $ 4,324     $ (333 )   $ (30,238 )   $ 5,063,748  
Direct operating expenses
     2,910,334       502,375       233,016       11,093       28,355       -       1,502       (28,365 )     3,658,310  
Selling, general and administrative expenses
     524,672       325,664       93,995       41,520       25,939       2,701       -       -       1,014,491  
Depreciation and amortization
     139,129       131,533       41,520       7,474       255       1,362       2,266       (1,873 )     321,666  
Loss (gain) on sale of operating assets
     (4,848 )     5,186       20       -       6       6       4       -       374  
Corporate expenses
     -       -       -       -       -       -       110,252       -       110,252  
Acquisition transaction expenses
     (2,424 )     780       6,277       -       -       -       17,722       -       22,355  
Operating income (loss)
   $ (128,513 )   $ 74,348     $ (12,669 )   $ 27,771     $ 107,187     $ 255     $ (132,079 )   $ -     $ (63,700 )
Intersegment revenue
   $ 15,709     $ 1,167     $ 13,362     $ -     $ -     $ -     $ -     $ (30,238 )   $ -  
Capital expenditures
   $ 19,736     $ 43,099     $ 996     $ 2,445     $ 67     $ 306     $ 7,189     $ -     $ 73,838  
                                                                         
2009                                                                        
Revenue
   $ 3,704,322     $ 61,622     $ 251,499     $ 16,205     $ 161,042     $ 4,859     $ -     $ (18,528 )   $ 4,181,021  
Direct operating expenses
     3,102,212       24,056       202,281       3,228       44,917       (170 )     (751 )     (18,528 )     3,357,245  
Selling, general and administrative expenses
     510,975       28,381       36,692       17,440       20,179       4,042       -       -       617,709  
Depreciation and amortization
     129,742       10,275       9,963       5,240       341       276       2,281       -       158,118  
Goodwill impairment
     9,085       -       -       -       -       -       -       -       9,085  
Loss (gain) on sale of operating assets
     (2,969 )     5       9       -       -       (30 )     2       -       (2,983 )
Corporate expenses
     -       -       -       -       -       -       58,160       -       58,160  
Acquisition transaction expenses
     1,117       -       -       -       -       50       34,876       -       36,043  
Operating income (loss)
   $ (45,840 )   $ (1,095 )   $ 2,554     $ (9,703 )   $ 95,605     $ 691     $ (94,568 )   $ -     $ (52,356 )
Intersegment revenue
   $ -     $ -     $ 18,528     $ -     $ -     $ -     $ -     $ (18,528 )   $ -  
Capital expenditures
   $ 37,047     $ 7,690     $ 345     $ 2,956     $ 320     $ 998     $ 1,801     $ -     $ 51,157  
 
 The following table provides revenue and long-lived assets for the Company's foreign operations included in the consolidated amounts above:
 
 
  
United
Kingdom
 Operations
    
Other
Foreign
 Operations
    
Total
Foreign
 Operations
    
Total
Domestic
Operations
    
Consolidated
Total
  
   
(in thousands)
  
2011
                              
Revenue
   $ 686,982     $ 1,387,295     $ 2,074,277     $ 3,309,721     $ 5,383,998  
Long-lived assets
   $ 85,614     $ 99,459     $ 185,073     $ 535,063     $ 720,136  
                                         
2010
                                        
Revenue
   $ 575,985     $ 1,044,288     $ 1,620,273     $ 3,443,475     $ 5,063,748  
Long-lived assets
   $ 73,634     $ 82,624     $ 156,258     $ 580,806     $ 737,064  
                                         
2009
                                        
Revenue
   $ 535,795     $ 918,795     $ 1,454,590     $ 2,726,431     $ 4,181,021  
Long-lived assets
   $ 84,235     $ 113,174     $ 197,409     $ 552,575     $ 749,984