Live Nation Entertainment Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

LONG-LIVED ASSETS

LONG-LIVED ASSETS

3 Months Ended

Mar. 31, 2024

Property, Plant and Equipment, Net

Property, plant and equipment includes expenditures for the construction of new venues, major renovations to existing buildings or buildings that are being added to our venue network, the development of new ticketing tools and technology enhancements along with the renewal and improvement of existing venues and technology systems, web development and administrative offices.

Property, plant and equipment, net, consisted of the following:


	March 31, 2024		December 31, 2023
	(in thousands)
Land, buildings and improvements	$	2,085,796	$	2,043,595
Computer equipment and capitalized software	903,837		888,065
Furniture and other equipment	651,519		646,966
Construction in progress	318,633		317,028
Property, plant and equipment, gross	3,959,785		3,895,654
Less: accumulated depreciation	1,843,153		1,794,191
Property, plant and equipment, net	$	2,116,632	$	2,101,463

Definite-lived Intangible Assets

The following table presents the changes in the gross carrying amount and accumulated amortization of definite-lived intangible assets for the three months ended March 31, 2024:


	Revenue- generating contracts		Client / vendor relationships		Venue management and leaseholds		Trademarks and naming rights		Technology and Other (1)		Total
	(in thousands)
Balance as of December 31, 2023:
Gross carrying amount	$	925,257	$	583,436	$	226,788	$	183,493	$	20,220	$	1,939,194
Accumulated amortization	(336,625)		(251,649)		(79,218)		(104,036)		(6,045)		(777,573)
Net	588,632		331,787		147,570		79,457		14,175		1,161,621
Gross carrying amount:
Acquisitions and additions—current year	57,447		—		—		—		129		57,576
Acquisitions and additions—prior year	(2,479)		3,894		(237)		(63)		—		1,115

Foreign exchange	4,938		(2,807)		(946)		842		(41)		1,986
Other (2)	(596)		(1,145)		(4,202)		(869)		47		(6,765)
Net change	59,310		(58)		(5,385)		(90)		135		53,912
Accumulated amortization:
Amortization	(27,378)		(21,851)		(6,450)		(4,520)		(1,806)		(62,005)

Foreign exchange	311		2,113		569		279		(346)		2,926
Other (2)	596		1,145		4,222		47		319		6,329
Net change	(26,471)		(18,593)		(1,659)		(4,194)		(1,833)		(52,750)
Balance as of March 31, 2024:
Gross carrying amount	984,567		583,378		221,403		183,403		20,355		1,993,106
Accumulated amortization	(363,096)		(270,242)		(80,877)		(108,230)		(7,878)		(830,323)
Net	$	621,471	$	313,136	$	140,526	$	75,173	$	12,477	$	1,162,783

(1) Other primarily includes intangible assets for non-compete agreements.

(2) Other primarily includes netdowns of fully amortized or impaired assets.

Included in the current year acquisitions amounts above are definite-lived intangible assets primarily associated with the acquisition of a festival promotion business in the United States.

The 2024 acquisitions and additions to definite-lived intangible assets had weighted-average lives as follows:


			Weighted- Average Life (years)
Revenue-generating contracts			10




Technology			3

All categories			10

Amortization of definite-lived intangible assets for the three months ended March 31, 2024 and 2023 was $62.0 million and $57.5 million, respectively. As acquisitions and dispositions occur in the future and the valuations of intangible assets for recent acquisitions are completed, amortization expense may vary.

Goodwill

The following table presents the changes in the carrying amount of goodwill in each of our reportable segments for the three months ended March 31, 2024:


	Concerts		Ticketing		Sponsorship & Advertising		Total
	(in thousands)
Balance as of December 31, 2023:
Goodwill	$	1,439,579	$	1,012,530	$	674,720	$	3,126,829
Accumulated impairment losses	(435,363)		—		—		(435,363)
Net	1,004,216		1,012,530		674,720		2,691,466

Acquisitions—current year	2,334		—		—		2,334
Acquisitions—prior year	8,772		—		—		8,772

Dispositions	88		—		—		88
Foreign exchange	(10,091)		3,082		3,829		(3,180)

Balance as of March 31, 2024:
Goodwill	1,440,682		1,015,612		678,549		3,134,843
Accumulated impairment losses	(435,363)		—		—		(435,363)
Net	$	1,005,319	$	1,015,612	$	678,549	$	2,699,480

We are in various stages of finalizing our acquisition accounting for recent acquisitions, which may include the use of external valuation consultants, and the completion of this accounting could result in a change to the associated purchase price allocations, including goodwill and our allocation between segments.

Investments in Nonconsolidated Affiliates

At March 31, 2024 and December 31, 2023, we had investments in nonconsolidated affiliates of $513.1 million and $447.5 million, respectively, included in other long-term assets on our consolidated balance sheets.