| Error Correction |
CORRECTION OF ERRORS IN PREVIOUSLY REPORTED CONSOLIDATED FINANCIAL STATEMENTS As previously disclosed in our Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2024, in calculating our income taxes for the three and nine months ended September 30, 2024, we identified errors in our previously issued financial statements for the years ended December 31, 2023 and December 31, 2022 related to the measurement of income tax expense for certain foreign subsidiaries statutory earnings. These errors were non-cash items that had no impact to our cash paid for income taxes.
We assessed the materiality of these errors, using both quantitative and qualitative factors, in accordance with the SEC Staff Accounting Bulletin (“SAB”) No. 99 “Materiality” and SAB 108 “Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements” codified in ASC 250 “Accounting Changes and Error Corrections” and concluded these errors (including when aggregated with other errors discussed below) were immaterial to all of the previously issued consolidated financial statements but, if corrected in the current year, would be material to the current year. Under ASC 250, such prior‑year misstatements which, if corrected in the current year would be material to the current year, must be corrected by adjusting the prior‑year financial statements. Correcting prior‑year financial statements for such immaterial errors does not require previously filed reports to be amended.
In addition to the errors related to the income tax provision as noted above, we recorded other errors to correct prior periods as presented below. These errors were not previously recorded, as we concluded that they were immaterial individually and in aggregate to our previously issued consolidated financial statements.
The effects of the error corrections on our unaudited consolidated statements of operations and comprehensive income (loss) for the three months ended March 31, 2024, June 30, 2023 and March 31, 2023, as well as for the six months ended June 30, 2024 and June 30, 2023 are presented in the tables below. There were no errors in our previously issued statements of cash flows that impacted net operating, investing and financing activities for the three months ended June 30, 2024 and March 31, 2024. We have disclosed the effects of the error corrections on our previously issued financial statements for the three and nine months ended September 30, 2023 as well as our consolidated balance sheet as of December 31, 2023 in our Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2024. Furthermore, the effects of the error corrections on our consolidated statements of operations, comprehensive income (loss), and cash flows for the years ended December 31, 2023 and December 31, 2022 are also presented in the tables below.
The consolidated statements of stockholders’ equity for the years ended December 31, 2023 and December 31, 2022 have also been revised to reflect the impacts to net earnings and redeemable noncontrolling interests.
The following table presents the impact of correcting the errors on the affected line items of our consolidated statements of operations for the three months ended March 31, 2024 and for the six months ended June 30, 2024. There was no revision for the three months ended June 30, 2024.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, 2024 |
|
Three Months Ended June 30, 2024 |
|
Six Months Ended June 30, 2024 |
|
|
|
|
As Reported |
|
Adjustments |
|
As Revised |
|
As Reported |
|
As Revised |
|
|
|
|
|
|
|
|
(unaudited, in thousands except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Direct operating expenses |
$ |
2,646,457 |
|
|
$ |
4,883 |
|
|
$ |
2,651,340 |
|
|
$ |
4,408,209 |
|
|
$ |
7,059,549 |
|
|
|
|
|
|
|
|
| Operating income (loss) |
(36,507) |
|
|
(4,883) |
|
|
(41,390) |
|
|
465,819 |
|
|
424,429 |
|
|
|
|
|
|
|
|
| Income (loss) before income taxes |
3,197 |
|
|
(4,883) |
|
|
(1,686) |
|
|
456,392 |
|
|
454,706 |
|
|
|
|
|
|
|
|
| Income tax expense |
35,414 |
|
|
5,605 |
|
|
41,019 |
|
|
80,164 |
|
|
121,183 |
|
|
|
|
|
|
|
|
| Net income (loss) |
(32,217) |
|
|
(10,488) |
|
|
(42,705) |
|
|
376,228 |
|
|
333,523 |
|
|
|
|
|
|
|
|
| Net income attributable to noncontrolling interests |
14,516 |
|
|
(2,746) |
|
|
11,770 |
|
|
78,258 |
|
|
90,028 |
|
|
|
|
|
|
|
|
| Net income (loss) attributable to common stockholders of Live Nation |
(46,733) |
|
|
(7,742) |
|
|
(54,475) |
|
|
297,970 |
|
|
243,495 |
|
|
|
|
|
|
|
|
| Basic net income (loss) per common share available to common stockholders of Live Nation |
(0.53) |
|
|
(0.03) |
|
|
(0.56) |
|
|
1.05 |
|
|
0.48 |
|
|
|
|
|
|
|
|
| Diluted net income (loss) per common share available to common stockholders of Live Nation |
(0.53) |
|
|
(0.03) |
|
|
(0.56) |
|
|
1.03 |
|
|
0.48 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following table presents the impact of correcting the errors on the affected line items of our consolidated statements of comprehensive income (loss) for the three months ended March 31, 2024 and for the six months ended June 30, 2024. There was no revision for the three months ended June 30, 2024.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, 2024 |
|
Three Months Ended June 30, 2024 |
|
Six Months Ended June 30, 2024 |
|
|
|
As Reported |
|
Adjustments |
|
As Revised |
|
As Reported |
|
As Revised |
|
|
|
|
|
|
|
(unaudited, in thousands) |
|
|
| Net income (loss) |
$ |
(32,217) |
|
|
$ |
(10,488) |
|
|
$ |
(42,705) |
|
|
$ |
376,228 |
|
|
$ |
333,523 |
|
|
|
|
|
|
|
| Comprehensive income (loss) |
(23,849) |
|
|
(10,488) |
|
|
(34,337) |
|
|
217,654 |
|
|
183,317 |
|
|
|
|
|
|
|
| Comprehensive income attributable to noncontrolling interests |
14,516 |
|
|
(2,746) |
|
|
11,770 |
|
|
78,258 |
|
|
90,028 |
|
|
|
|
|
|
|
| Comprehensive income (loss) attributable to common stockholders of Live Nation |
(38,365) |
|
|
(7,742) |
|
|
(46,107) |
|
|
139,396 |
|
|
93,289 |
|
|
|
|
|
|
|
The following table presents the impact of correcting the errors on the affected line items of our consolidated statements of operations for the three months ended March 31, 2023, June 30, 2023 and for the six months ended June 30, 2023:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, 2023 |
|
Three Months Ended June 30, 2023 |
|
Six Months Ended June 30, 2023 |
|
|
|
|
As Reported |
|
Adjustments |
|
As Revised |
|
As Reported |
|
Adjustments |
|
As Revised |
|
As Revised |
|
|
|
|
|
|
|
|
(unaudited, in thousands except per share data) |
|
|
|
| Revenue |
$ |
3,127,390 |
|
|
$ |
(2,831) |
|
|
$ |
3,124,559 |
|
|
$ |
5,630,723 |
|
|
$ |
(2,209) |
|
|
$ |
5,628,514 |
|
|
$ |
8,753,073 |
|
|
|
|
|
|
|
|
| Direct operating expenses |
2,115,589 |
|
|
8,793 |
|
|
2,124,382 |
|
|
4,164,778 |
|
|
2,563 |
|
|
4,167,341 |
|
|
6,291,723 |
|
|
|
|
|
|
|
|
| Operating income |
142,776 |
|
|
(11,624) |
|
|
131,152 |
|
|
386,371 |
|
|
(4,772) |
|
|
381,599 |
|
|
512,751 |
|
|
|
|
|
|
|
|
| Income before income taxes |
68,032 |
|
|
(11,624) |
|
|
56,408 |
|
|
372,985 |
|
|
(4,772) |
|
|
368,213 |
|
|
424,621 |
|
|
|
|
|
|
|
|
| Income tax expense |
23,840 |
|
|
— |
|
|
23,840 |
|
|
41,648 |
|
|
11,313 |
|
|
52,961 |
|
|
76,801 |
|
|
|
|
|
|
|
|
| Net income |
44,192 |
|
|
(11,624) |
|
|
32,568 |
|
|
331,337 |
|
|
(16,085) |
|
|
315,252 |
|
|
347,820 |
|
|
|
|
|
|
|
|
| Net income attributable to noncontrolling interests |
47,361 |
|
|
(13,120) |
|
|
34,241 |
|
|
37,655 |
|
|
7,577 |
|
|
45,232 |
|
|
79,473 |
|
|
|
|
|
|
|
|
| Net income (loss) attributable to common stockholders of Live Nation |
(3,169) |
|
|
1,496 |
|
|
(1,673) |
|
|
293,682 |
|
|
(23,662) |
|
|
270,020 |
|
|
268,347 |
|
|
|
|
|
|
|
|
| Basic net income (loss) per common share available to common stockholders of Live Nation |
(0.25) |
|
|
— |
|
|
(0.25) |
|
|
1.04 |
|
|
(0.11) |
|
|
0.93 |
|
|
0.69 |
|
|
|
|
|
|
|
|
| Diluted net income (loss) per common share available to common stockholders of Live Nation |
(0.25) |
|
|
— |
|
|
(0.25) |
|
|
1.02 |
|
|
(0.10) |
|
|
0.92 |
|
|
0.68 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following table presents the impact of correcting the errors on the affected line items of our consolidated statements of comprehensive income for the three months ended March 31, 2023, June 30, 2023 and for the six months ended June 30, 2023:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, 2023 |
|
Three Months Ended June 30, 2023 |
|
Six Months Ended June 30, 2023 |
|
|
|
As Reported |
|
Adjustments |
|
As Revised |
|
As Reported |
|
Adjustments |
|
As Revised |
|
As Revised |
|
|
|
|
|
|
|
(unaudited, in thousands) |
|
|
| Net income |
$ |
44,192 |
|
|
$ |
(11,624) |
|
|
$ |
32,568 |
|
|
$ |
331,337 |
|
|
$ |
(16,085) |
|
|
$ |
315,252 |
|
|
$ |
347,820 |
|
|
|
|
|
|
|
| Comprehensive income |
116,843 |
|
|
(11,624) |
|
|
105,219 |
|
|
408,015 |
|
|
(16,085) |
|
|
391,930 |
|
|
497,149 |
|
|
|
|
|
|
|
| Comprehensive income attributable to noncontrolling interests |
47,361 |
|
|
(13,120) |
|
|
34,241 |
|
|
37,655 |
|
|
7,577 |
|
|
45,232 |
|
|
79,473 |
|
|
|
|
|
|
|
| Comprehensive income attributable to common stockholders of Live Nation |
69,482 |
|
|
1,496 |
|
|
70,978 |
|
|
370,360 |
|
|
(23,662) |
|
|
346,698 |
|
|
417,676 |
|
|
|
|
|
|
|
The following table presents the impact of correcting the errors on the affected line items of our consolidated statements of operations for the year ended December 31, 2023:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2023 |
|
As Reported |
|
Adjustments |
|
As Revised |
|
(in thousands except per share data) |
| Revenue |
$ |
22,749,073 |
|
|
$ |
(22,756) |
|
|
$ |
22,726,317 |
|
| Direct operating expenses |
17,292,016 |
|
|
(41,486) |
|
|
17,250,530 |
|
| Operating income |
1,066,203 |
|
|
18,730 |
|
|
1,084,933 |
|
| Income before income taxes |
894,544 |
|
|
18,730 |
|
|
913,274 |
|
| Income tax expense |
160,227 |
|
|
49,249 |
|
|
209,476 |
|
| Net income |
734,317 |
|
|
(30,519) |
|
|
703,798 |
|
| Net income attributable to noncontrolling interests |
171,037 |
|
|
(24,132) |
|
|
146,905 |
|
| Net income attributable to common stockholders of Live Nation |
563,280 |
|
|
(6,387) |
|
|
556,893 |
|
| Basic net income per common share available to common stockholders of Live Nation |
1.38 |
|
|
(0.03) |
|
|
1.35 |
|
| Diluted net income per common share available to common stockholders of Live Nation |
1.37 |
|
|
(0.03) |
|
|
1.34 |
|
|
|
|
|
|
|
The following table presents the impact of correcting the errors on the affected line items of our consolidated statements of comprehensive income for the year ended December 31, 2023:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended December 31, 2023 |
|
As Reported |
|
Adjustments |
|
As Revised |
|
(in thousands) |
| Net income |
$ |
734,317 |
|
|
$ |
(30,519) |
|
|
$ |
703,798 |
|
| Comprehensive income |
851,843 |
|
|
(30,519) |
|
|
821,324 |
|
| Comprehensive income attributable to noncontrolling interests |
171,037 |
|
|
(24,132) |
|
|
146,905 |
|
| Comprehensive income attributable to common stockholders of Live Nation |
680,806 |
|
|
(6,387) |
|
|
674,419 |
|
The following table presents the impact of correcting the errors on the affected line items of our consolidated statement of cash flow for the year ended December 31, 2023:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2023 |
|
As Reported |
|
Adjustments |
|
As Revised |
|
(in thousands) |
| Net income |
$ |
734,317 |
|
|
$ |
(30,519) |
|
|
$ |
703,798 |
|
| Increase in accounts receivable |
(550,670) |
|
|
24,931 |
|
|
(525,739) |
|
| Increase in accounts payable, accrued expenses and other liabilities |
460,496 |
|
|
(10,126) |
|
|
450,370 |
|
| Increase in deferred revenue |
133,023 |
|
|
7,894 |
|
|
140,917 |
|
| Net cash provided by operating activities |
1,370,794 |
|
|
(7,820) |
|
|
1,362,974 |
|
| Net increase in cash, cash equivalents and restricted cash |
626,582 |
|
|
(7,820) |
|
|
618,762 |
|
| Cash, cash equivalents and restricted cash at beginning of period |
5,612,374 |
|
|
7,820 |
|
|
5,620,194 |
|
The following table presents the impact of correcting the errors on the affected line items of our consolidated statements of operations for the year ended December 31, 2022:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2022 |
|
As Reported |
|
Adjustments |
|
As Revised |
|
(in thousands except per share data) |
| Direct operating expenses |
$ |
12,337,524 |
|
|
$ |
10,087 |
|
|
$ |
12,347,611 |
|
| Operating income |
732,118 |
|
|
(10,087) |
|
|
722,031 |
|
| Other expense, net |
36,379 |
|
|
4,836 |
|
|
41,215 |
|
| Income before income taxes |
505,447 |
|
|
(14,923) |
|
|
490,524 |
|
| Income tax expense |
96,254 |
|
|
19,687 |
|
|
115,941 |
|
| Net income |
409,193 |
|
|
(34,610) |
|
|
374,583 |
|
| Net income attributable to noncontrolling interests |
113,207 |
|
|
(5,064) |
|
|
108,143 |
|
| Net income attributable to common stockholders of Live Nation |
295,986 |
|
|
(29,546) |
|
|
266,440 |
|
| Basic net income per common share available to common stockholders of Live Nation |
0.66 |
|
|
(0.13) |
|
|
0.53 |
|
| Diluted net income per common share available to common stockholders of Live Nation |
0.64 |
|
|
(0.12) |
|
|
0.52 |
|
|
|
|
|
|
|
The following table presents the impact of correcting the errors on the affected line items of our consolidated statements of comprehensive income for the year ended December 31, 2022:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2022 |
|
As Reported |
|
Adjustments |
|
As Revised |
|
(in thousands) |
| Net income |
$ |
409,193 |
|
|
$ |
(34,610) |
|
|
$ |
374,583 |
|
| Other comprehensive income, net of tax, foreign currency translation adjustments |
8,047 |
|
|
4,836 |
|
|
12,883 |
|
| Comprehensive income |
467,081 |
|
|
(29,774) |
|
|
437,307 |
|
| Comprehensive income attributable to noncontrolling interests |
113,207 |
|
|
(5,064) |
|
|
108,143 |
|
| Comprehensive income attributable to common stockholders of Live Nation |
353,874 |
|
|
(24,710) |
|
|
329,164 |
|
The following table presents the impact of correcting the errors on the affected line items of our consolidated statement of cash flow for the for the year ended December 31, 2022:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, 2022 |
|
As Reported |
|
Adjustments |
|
As Revised |
|
(in thousands) |
| Net income |
$ |
409,193 |
|
|
$ |
(34,610) |
|
|
$ |
374,583 |
|
| Increase in accounts receivable |
(463,977) |
|
|
19,474 |
|
|
(444,503) |
|
| Increase in accounts payable, accrued expenses and other liabilities |
1,002,158 |
|
|
26,014 |
|
|
1,028,172 |
|
| Increase in deferred revenue |
367,617 |
|
|
(7,894) |
|
|
359,723 |
|
| Net cash provided by operating activities |
1,832,063 |
|
|
2,984 |
|
|
1,835,047 |
|
| Effect of exchange rate changes on cash, cash equivalents and restricted cash |
(179,450) |
|
|
4,836 |
|
|
(174,614) |
|
| Net increase in cash, cash equivalents and restricted cash |
724,582 |
|
|
7,820 |
|
|
732,402 |
|
| Cash, cash equivalents and restricted cash at end of period |
5,612,374 |
|
|
7,820 |
|
|
5,620,194 |
|
|