Live Nation Entertainment Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

LONG-LIVED ASSETS (Tables)

LONG-LIVED ASSETS (Tables)

12 Months Ended

Dec. 31, 2012

Gross Carrying Amount and Accumulated Amortization of Definite-Lived Intangible Assets

The Company has definite-lived intangible assets which are amortized over the shorter of either the respective lives of the agreements or the period of time the assets are expected to contribute to the Company's future cash flows. The amortization is recognized on either a straight-line or units of production basis. The following table presents the changes in the gross carrying amount and accumulated amortization of definite-lived intangible assets for the years ended December 31, 2012 and 2011:

										Venue						Trademarks
	Revenue-			Client /						management						and
	generating			vendor			Non-compete			and						naming
	contracts			relationships			agreements			leaseholds			Technology			rights			Other			Total
	(in thousands)
Balance as of December 31, 2010:
Gross carrying amount	$	482,588		$	365,344		$	175,740		$	115,225		$	95,102		$	23,998		$	6,429		$	1,264,426
Accumulated amortization		(112,575	)		(30,314	)		(68,833	)		(30,878	)		(11,797	)		(9,522	)		(3,239	)		(267,158	)
Net		370,013			335,030			106,907			84,347			83,305			14,476			3,190			997,268

Gross carrying amount:
Acquisitions		51,477			(5,538	)		(3,768	)		3,828			8,814			2,578			13			57,404
Divestitures		-			(4,299	)		(100	)		-			-			-			-			(4,399	)
Foreign exchange		(3,033	)		(92	)		(107	)		(419	)		(579	)		(319	)		(8	)		(4,557	)
Other (1)		11,394			(24,840	)		-			(1,862	)		-			(1,740	)		(8	)		(17,056	)
		59,838			(34,769	)		(3,975	)		1,547			8,235			519			(3	)		31,392

Accumulated amortization:
Amortization Expense		(64,497	)		(45,178	)		(25,558	)		(10,379	)		(20,127	)		(8,525	)		(953	)		(175,217	)
Divestitures		-			361			61			-			-			-			-			422
Foreign exchange		1,815			2			116			210			112			104			16			2,375
Other (1)		4,368			8,581			750			2,030			-			1,741			2			17,472
		(58,314	)		(36,234	)		(24,631	)		(8,139	)		(20,015	)		(6,680	)		(935	)		(154,948	)

Balance as of December 31, 2011:
Gross carrying amount		542,426			330,575			171,765			116,772			103,337			24,517			6,426			1,295,818
Accumulated amortization		(170,889	)		(66,548	)		(93,464	)		(39,017	)		(31,812	)		(16,202	)		(4,174	)		(422,106	)
Net		371,537			264,027			78,301			77,755			71,525			8,315			2,252			873,712

Gross carrying amount:
Acquisitions		23,428			72,856			3,000			-			(2,336	)		5,764			-			102,712
Foreign exchange		5,443			(428	)		98			1,487			423			498			26			7,547
Other (1)		(56,226	)		(141,348	)		(6,445	)		-			-			(12,356	)		-			(216,375	)
		(27,355	)		(68,920	)		(3,347	)		1,487			(1,913	)		(6,094	)		26			(106,116	)

Accumulated amortization:
Amortization Expense		(80,220	)		(114,611	)		(25,276	)		(12,482	)		(21,244	)		(2,620	)		(459	)		(256,912	)
Foreign exchange		(2,748	)		4			(77	)		(392	)		(239	)		(211	)		(17	)		(3,680	)
Other (1)		56,308			141,348			7,448			-			-			12,355			-			217,459
		(26,660	)		26,741			(17,905	)		(12,874	)		(21,483	)		9,524			(476	)		(43,133	)

Balance as of December 31, 2012:
Gross carrying amount		515,071			261,655			168,418			118,259			101,424			18,423			6,452			1,189,702
Accumulated amortization		(197,549	)		(39,807	)		(111,369	)		(51,891	)		(53,295	)		(6,678	)		(4,650	)		(465,239	)
Net	$	317,522		$	221,848		$	57,049		$	66,368		$	48,129		$	11,745		$	1,802		$	724,463

Weighted Average Lives of Additions to Definite-Lived Intangible Assets

The 2012 and 2011 additions to definite-lived intangible assets have weighted average lives as follows:

	Weighted Average
	Life (years)
	2012		2011

Revenue-generating contracts		11		10
Client/vendor relationships		9		8
Non-compete agreements		3		3
Venue management and leaseholds		-		6
Technology		6		5
Trademarks and naming rights		10		-

All categories		9		9

Estimate of Amortization Expense for Each of the Five Succeeding Fiscal Years for Definite-Lived Intangible Assets

The following table presents the Company's estimate of amortization expense for each of the five succeeding fiscal years for definite-lived intangible assets that exist at December 31, 2012:

	(in thousands)
2013	$	135,355
2014	$	136,949
2015	$	99,967
2016	$	89,968
2017	$	92,440

Changes in Goodwill by Segment

The following table presents the changes in the carrying amount of goodwill in each of the Company's reportable segments for the years ended December 31, 2012 and 2011:

							Artist						Sponsorship
	Concerts			Ticketing			Nation			eCommerce			& Advertising			Other			Total
	(in thousands)
Balance as of December 31, 2010:
Goodwill	$	375,487		$	557,856		$	267,992		$	214,927		$	80,056		$	13,037		$	1,509,355
Accumulated impairment losses		(269,902	)		-			-			-			-			(13,037	)		(282,939	)
Net		105,585			557,856			267,992			214,927			80,056			-			1,226,416

Recast balances (1):
Fair value approach		-			47,086			-			(214,927	)		167,841			-			-

Recast Balance as of January 1, 2011:
Goodwill		375,487			604,942			267,992			-			247,897			13,037			1,509,355
Accumulated impairment losses		(269,902	)		-			-			-			-			(13,037	)		(282,939	)
Net		105,585			604,942			267,992			-			247,897			-			1,226,416

Acquisitions - current year		15,040			27,590			1,836			-			-			-			44,466
Acquisitions - prior year		2			2,956			(7,523	)		-			-			-			(4,565	)
Dispositions		-			-			(147	)		-			-			-			(147	)
Foreign exchange		(3,341	)		(1,636	)		-			-			(3,549	)		-			(8,526	)
Balance as of December 31, 2011:
Goodwill		387,188			633,852			262,158			-			244,348			13,037			1,540,583
Accumulated impairment losses		(269,902	)		-			-			-			-			(13,037	)		(282,939	)
Net		117,286			633,852			262,158			-			244,348			-			1,257,644

Acquisitions - current year		71,942			-			-			-			-			-			71,942
Acquisitions - prior year		-			2,380			4,542			-			-			-			6,922
Foreign exchange		9,761			1,410			120			-			10,028			-			21,319

Balance as of December 31, 2012:
Goodwill		468,891			637,642			266,820			-			254,376			13,037			1,640,766
Accumulated impairment losses		(269,902	)		-			-			-			-			(13,037	)		(282,939	)
Net	$	198,989		$	637,642		$	266,820		$	-		$	254,376		$	-		$	1,357,827

(1)

The beginning balance for the eCommerce segment has been recast to allocate goodwill to the Ticketing and Sponsorship & Advertising segments. The total consolidated amount remained unchanged.

Asset and Liability Values at the Time of Disposal and the Resulting Gain or Loss Recorded

The table below summarizes the asset and liability values at the time of disposal and the resulting gain or loss recorded.

Divested Asset	Segment	Gain (Loss) on Sale of Operating Assets			Current Assets			Noncurrent Assets		Current Liabilities		Noncurrent Liabilities
		(in thousands)
2012 Divestiture
Ohio amphitheater	Concerts	$	444		$	-		$	5,400	$	444	$	-

2011 Divestiture
Texas amphitheater	Concerts	$	798		$	-		$	3,206	$	-	$	-
Artist management company	Artist Nation	$	(1,264	)	$	3		$	4,153	$	119	$	-

2010 Divestiture
Paciolan	Ticketing	$	(5,218	)	$	8,357		$	33,492	$	7,595	$	6,364
Sweden music theater	Concerts	$	3,094		$	(1,258	)	$	15,502	$	3,847	$	-
Latin/salsa event	Concerts	$	(67	)	$	408		$	8	$	348	$	-

- Definition

Tabular disclosure of goodwill by reportable segment and in total which includes a rollforward schedule.

+ References + Details