Quarterly report pursuant to Section 13 or 15(d)

SEGMENT DATA

v2.4.0.6
SEGMENT DATA
 3 Months Ended
Mar. 31, 2013
Segment Reporting [Abstract]  
SEGMENT DATA
NOTE 10—SEGMENT DATA
The Company’s reportable segments are Concerts, Ticketing, Artist Nation and Sponsorship & Advertising. 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 online access for customers relating to ticket and event information and is responsible for the Company’s primary websites, www.livenation.com and www.ticketmaster.com. The Ticketing segment 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 artist fan sites and is the aggregation of the Company’s Artist Management and Artist Services operating segments. The Sponsorship & Advertising 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, promotional programs and banner ads in the Company’s owned and/or operated venues and on its primary websites.
Revenue and expenses earned and charged between segments are eliminated in consolidation. Corporate expenses and all line items below operating income 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 presented. Included in the March 31, 2013 and December 31, 2012 cash and cash equivalents balance is $441.2 million and $441.6 million, respectively, of funds representing amounts equal to the face value of tickets sold on behalf of clients and the clients’ share of convenience and order processing charges.
The following table presents the results of operations for the Company’s reportable segments for the three months ending March 31, 2013 and 2012:
 
Concerts
 
Ticketing
 
Artist
Nation
 
Sponsorship
& Advertising
 
Other
 
Corporate
 
Eliminations
 
Consolidated
 
 
 
 
 
 
 
(in thousands)
 
 
 
 
 
 
Three Months Ended March 31, 2013
 
 
 
 
 
 
 
 
 
 
 
 
Revenue
$
513,535

 
$
325,135

 
$
50,271

 
$
40,147

 
$
793

 
$
—

 
$
(6,183
)
 
$
923,698

Direct operating expenses
390,252

 
155,062

 
31,412

 
6,864

 
(965
)
 
—

 
(5,691
)
 
576,934

Selling, general and administrative expenses
137,318

 
111,940

 
20,038

 
9,688

 
538

 
—

 
—

 
279,522

Depreciation and amortization
28,702

 
42,813

 
10,034

 
142

 
174

 
792

 
(492
)
 
82,165

Loss (gain) on disposal of operating assets
(3,130
)
 
(62
)
 
(412
)
 
—

 
7

 
—

 
—

 
(3,597
)
Corporate expenses
—

 
—

 
—

 
—

 
—

 
20,655

 
—

 
20,655

Acquisition transaction expenses
234

 
24

 
128

 
—

 
—

 
822

 
—

 
1,208

Operating income (loss)
$
(39,841
)
 
$
15,358

 
$
(10,929
)
 
$
23,453

 
$
1,039

 
$
(22,269
)
 
$
—

 
$
(33,189
)
Intersegment revenue
$
5,713

 
$
267

 
$
203

 
$
—

 
$
—

 
$
—

 
$
(6,183
)
 
$
—

Capital expenditures
$
2,441

 
$
18,863

 
$
118

 
$
303

 
$
—

 
$
(177
)
 
$
—

 
$
21,548

Three Months Ended March 31, 2012
 
 
 
 
 
 
 
 
 
 
 
 
Revenue
$
448,699

 
$
326,544

 
$
61,405

 
$
36,128

 
$
776

 
$
—

 
$
(5,555
)
 
$
867,997

Direct operating expenses
343,353

 
151,875

 
40,638

 
6,721

 
1,485

 
—

 
(5,358
)
 
538,714

Selling, general and administrative expenses
131,618

 
103,328

 
24,088

 
8,789

 
312

 
—

 
—

 
268,135

Depreciation and amortization
28,362

 
39,166

 
11,612

 
39

 
12

 
719

 
(197
)
 
79,713

Loss (gain) on disposal of operating assets
(470
)
 
(90
)
 
—

 
—

 
272

 
—

 
—

 
(288
)
Corporate expenses
—

 
—

 
—

 
—

 
—

 
23,217

 
—

 
23,217

Acquisition transaction expenses
814

 
(20
)
 
50

 
—

 
—

 
465

 
—

 
1,309

Operating income (loss)
$
(54,978
)
 
$
32,285

 
$
(14,983
)
 
$
20,579

 
$
(1,305
)
 
$
(24,401
)
 
$
—

 
$
(42,803
)
Intersegment revenue
$
4,049

 
$
314

 
$
1,192

 
$
—

 
$
—

 
$
—

 
$
(5,555
)
 
$
—

Capital expenditures
$
3,255

 
$
18,331

 
$
133

 
$
756

 
$
—

 
$
908

 
$
—

 
$
23,383