Quarterly report pursuant to Section 13 or 15(d)

EQUITY

v2.4.0.6
EQUITY
 3 Months Ended
Mar. 31, 2013
Equity [Abstract]  
STOCKHOLDERS' EQUITY
NOTE 8—EQUITY
The following table shows the reconciliation of the carrying amount of stockholders’ equity attributable to Live Nation Entertainment, Inc., equity attributable to noncontrolling interests, total equity and also redeemable noncontrolling interests:
 
Live Nation
Entertainment, Inc.
Stockholders’  Equity
 
Noncontrolling
Interests
 
Total
Equity
 
Redeemable
Noncontrolling
Interests
 
(in thousands)
 
(in thousands)
Balances at December 31, 2012
$
1,355,418

 
$
153,156

 
$
1,508,574

 
$
42,100

Non-cash and stock-based compensation
2,435

 
—

 
2,435

 
—

Exercise of stock options
22,332

 
—

 
22,332

 
—

Acquisitions
—

 
(1,574
)
 
(1,574
)
 
—

Redeemable noncontrolling interests fair value adjustments
(228
)
 
—

 
(228
)
 
228

Noncontrolling interests contributions
—

 
267

 
267

 
—

Cash distributions
—

 
(1,221
)
 
(1,221
)
 
—

Other
—

 
(467
)
 
(467
)
 
(1
)
Comprehensive income (loss):
 
 
 
 

 
 
Net loss
(63,239
)
 
(883
)
 
(64,122
)
 
(65
)
Unrealized gain on cash flow hedges
70

 
—

 
70

 
—

Realized loss on cash flow hedges
8

 
—

 
8

 
—

Foreign currency translation adjustments
(34,257
)
 
—

 
(34,257
)
 
—

Balances at March 31, 2013
$
1,282,539

 
$
149,278

 
$
1,431,817

 
$
42,262


Common Stock
During the first quarter of 2013, the Company issued 3.4 million shares of common stock in connection with stock option exercises.
Noncontrolling Interests
As of March 31, 2013, for the non-wholly-owned subsidiaries of the Company where the common securities held by the noncontrolling interests do not include put arrangements exercisable outside of the control of the Company, such noncontrolling interests are recorded in stockholders’ equity, separate from the Company’s own equity.
Redeemable Noncontrolling Interests
For certain of its consolidated subsidiaries, the Company is subject to put arrangements arising from business combinations where the holders of the noncontrolling interests can require the Company to repurchase their shares at specified dates in the future or within specified periods in the future. Certain of these puts can be exercised earlier upon the occurrence of triggering events as specified in the agreements. The exercise dates for these puts range from April 2013 to December 2018. The redemption amounts for these puts are either at a fixed amount, at fair value at the time of exercise or variable based on a formula linked to earnings. In accordance with the FASB guidance for business combinations, the redeemable noncontrolling interests are recorded at their fair value at acquisition date. As these put arrangements are not currently redeemable, for increases in the estimated redemption value, or reductions in the estimated redemption value to the extent increases had been recognized previously, the Company accretes changes in the redemption value over the period from the date of issuance to the earliest redemption date of the individual puts, with the offset recorded to additional paid-in capital. Accounting guidance prohibits the recognition of reductions in value below issuance date value. Changes in estimated redemption values that are based on a formula linked to future earnings are computed using projected cash flows each reporting period which take into account the current expectations regarding profitability and the timing of revenue-generating events. For redemption amounts that are fixed dollar amounts, if the initial fair value is the redemption amount, there are no changes recorded until the puts are exercised or expire. The redemption amounts for these put arrangements are reflected in the Company’s balance sheets as redeemable noncontrolling interests outside of permanent equity and, at March 31, 2013 and December 31, 2012, were $42.3 million and $42.1 million, respectively.

Accumulated Other Comprehensive Income (Loss)
The following table presents changes in the components of AOCI, net of taxes, for the three months ended March 31, 2013:
 
 
Gains and Losses On Cash Flow Hedges
 
Defined Benefit Pension Items
 
Foreign Currency Items
 
Total
 
 
(in thousands)
Balance at December 31, 2012
 
$
(595
)
 
$
(611
)
 
$
(9,717
)
 
$
(10,923
)
Other comprehensive income (loss) before reclassifications
 
70

 
—

 
(34,257
)
 
(34,187
)
Amount reclassified from AOCI
 
8

 
—

 
—

 
8

Net other comprehensive income (loss)
 
78

 
—

 
(34,257
)
 
(34,179
)
Balance at March 31, 2013
 
$
(517
)
 
$
(611
)
 
$
(43,974
)
 
$
(45,102
)

The realized loss on cash flow hedges reclassified from AOCI consists of one interest rate swap agreement.
Earnings per Share
The following table sets forth the computation of basic and diluted net income (loss) per common share:
  
Three Months Ended 
 March 31,
  
2013
 
2012
 
(in thousands, except for per share data)
Net loss attributable to common stockholders of Live Nation Entertainment, Inc.—basic and diluted
$
(63,239
)
 
$
(69,150
)
 
 
 
 
Weighted average common shares—basic
188,827

 
186,522

Effect of dilutive securities:
 
 
 
Stock options, restricted stock and warrants
—

 
—

2.875% convertible senior notes
—

 
—

Weighted average common shares—diluted
188,827

 
186,522

 
 
 
 
Basic and diluted net loss per common share
$
(0.33
)
 
$
(0.37
)

The calculation of diluted net income per common share includes the effects of the assumed exercise of any outstanding stock options and warrants, the assumed vesting of shares of restricted stock awards and units and the assumed conversion of the 2.875% convertible senior notes where dilutive. The following table shows securities excluded from the calculation of diluted net income per common share because such securities are anti-dilutive:
  
Three Months Ended 
 March 31,
  
2013
 
2012
 
(in thousands)
Options to purchase shares of common stock
22,078

 
21,509

Restricted stock awards and units—unvested
2,685

 
4,000

Warrants
500

 
500

Conversion shares related to 2.875% convertible senior notes
8,105

 
8,105

Number of anti-dilutive potentially issuable shares excluded from diluted common shares outstanding
33,368

 
34,114