Annual report pursuant to Section 13 and 15(d)

SEGMENT DATA

v3.6.0.2
SEGMENT DATA
 12 Months Ended
Dec. 31, 2016
Segment Reporting [Abstract]  
SEGMENT DATA
SEGMENT DATA
For all periods presented, the Company’s reportable segments are Concerts, Sponsorship & Advertising, Ticketing and Artist Nation. The Concerts segment involves the promotion of live music events globally in the Company’s owned or operated venues and in rented third-party venues, the production of music festivals, the operation and management of music venues and the creation of associated content. 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 such as signage, promotional programs, rich media offerings, including advertising associated with live streaming and music-related content, and ads across the Company’s distribution network of venues, events and websites. The Ticketing segment involves the management of the Company’s global ticketing operations, including providing ticketing software and services to clients, ticket resale services 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 Artist Nation segment provides management and other services to artists. Beginning in 2017, the Company will combine its Concerts and Artist Nation segments based on its belief that the strategy behind artist management is to provide a full range of services related to concert promotion and to expand the Concerts line of business. In connection with this, there has been a change in the way the chief operating decision maker, as defined in the FASB guidance, makes decisions around allocations of resources and management responsibilities for this business. Going forward, the Company will have three reportable segments: Concerts, Sponsorship & Advertising and Ticketing. However, the Company does not believe this will result in a change to its reporting units reviewed for goodwill impairment.
Revenue and expenses earned and charged between segments are eliminated in consolidation. The Company’s capital expenditures below include accruals and expenditures funded by outside parties such as landlords or replacements funded by insurance proceeds.
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.
There were no customers that individually accounted for more than 10% of the Company’s consolidated revenue in any year.
The following table presents the results of operations for the Company’s reportable segments for the years ending December 31, 2016, 2015 and 2014:
 
Concerts
 
Sponsorship
& Advertising
 
Ticketing
 
Artist Nation
 
Other
 
Corporate
 
Eliminations
 
Consolidated
 
 
 
 
 
 
 
(in thousands)
 
 
 
 
 
 
2016
 
 
 
 
 
 
 
 
 
 
 
 
Revenue
$
5,874,089

 
$
377,618

 
$
1,827,930

 
$
421,706

 
$
7,978

 
$
—

 
$
(154,387
)
 
$
8,354,934

Direct operating expenses
4,981,816

 
60,218

 
956,956

 
232,555

 
2,902

 
—

 
(151,739
)
 
6,082,708

Selling, general and administrative expenses
766,881

 
71,089

 
510,490

 
183,179

 
16,811

 
—

 
—

 
1,548,450

Depreciation and amortization
137,605

 
18,206

 
185,925

 
57,110

 
2,940

 
4,433

 
(2,568
)
 
403,651

Loss (gain) on disposal of operating assets
(81
)
 
—

 
68

 
20

 
—

 
117

 
—

 
124

Corporate expenses
—

 
—

 
—

 
—

 
—

 
125,141

 
(80
)
 
125,061

Operating income (loss)
$
(12,132
)
 
$
228,105

 
$
174,491

 
$
(51,158
)
 
$
(14,675
)
 
$
(129,691
)
 
$
—

 
$
194,940

Intersegment revenue
$
142,240

 
$
—

 
$
1,150

 
$
10,997

 
$
—

 
$
—

 
$
(154,387
)
 
$
—

Capital expenditures
$
85,958

 
$
2,161

 
$
91,285

 
$
1,348

 
$
1,028

 
$
7,824

 
$
—

 
$
189,604

 
Concerts
 
Sponsorship
& Advertising
 
Ticketing
 
Artist Nation
 
Other
 
Corporate
 
Eliminations
 
Consolidated
 
 
 
 
 
 
 
(in thousands)
 
 
 
 
 
 
2015
 
 
 
 
 
 
 
 
 
 
 
 
Revenue
$
4,964,991

 
$
333,726

 
$
1,639,564

 
$
434,201

 
$
3,176

 
$
—

 
$
(129,927
)
 
$
7,245,731

Direct operating expenses
4,220,963

 
47,760

 
808,697

 
245,781

 
1,068

 
—

 
(127,796
)
 
5,196,473

Selling, general and administrative expenses
702,108

 
57,681

 
488,483

 
161,408

 
2,175

 
—

 
—

 
1,411,855

Depreciation and amortization
146,795

 
9,932

 
184,129

 
54,980

 
46

 
3,490

 
(2,131
)
 
397,241

Loss on disposal of operating assets
430

 
—

 
26

 
215

 
—

 
174

 
—

 
845

Corporate expenses
—

 
—

 
—

 
—

 
—

 
107,945

 
—

 
107,945

Operating income (loss)
$
(105,305
)
 
$
218,353

 
$
158,229

 
$
(28,183
)
 
$
(113
)
 
$
(111,609
)
 
$
—

 
$
131,372

Intersegment revenue
$
113,391

 
$
—

 
$
1,150

 
$
15,386

 
$
—

 
$
—

 
$
(129,927
)
 
$
—

Capital expenditures
$
40,053

 
$
4,836

 
$
93,323

 
$
1,924

 
$
—

 
$
5,011

 
$
—

 
$
145,147

2014
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue
$
4,726,877

 
$
300,279

 
$
1,557,254

 
$
389,437

 
$
3,171

 
$
—

 
$
(110,054
)
 
$
6,866,964

Direct operating expenses
4,016,540

 
37,973

 
763,280

 
212,302

 
(2,174
)
 
—

 
(107,952
)
 
4,919,969

Selling, general and administrative expenses
671,646

 
50,292

 
473,363

 
138,632

 
3,383

 
—

 
—

 
1,337,316

Depreciation and amortization
115,088

 
4,281

 
204,901

 
43,343

 
40

 
2,592

 
(2,102
)
 
368,143

Goodwill impairment
117,013

 
—

 
—

 
17,948

 
—

 
—

 
—

 
134,961

Loss (gain) on disposal of operating assets
(2,954
)
 
—

 
(1,583
)
 
34

 
(29
)
 
38

 
—

 
(4,494
)
Corporate expenses
—

 
—

 
—

 
—

 
—

 
103,905

 
—

 
103,905

Operating income (loss)
$
(190,456
)
 
$
207,733

 
$
117,293

 
$
(22,822
)
 
$
1,951

 
$
(106,535
)
 
$
—

 
$
7,164

Intersegment revenue
$
97,642

 
$
—

 
$
1,150

 
$
11,262

 
$
—

 
$
—

 
$
(110,054
)
 
$
—

Capital expenditures
$
35,006

 
$
1,834

 
$
89,990

 
$
1,892

 
$
6

 
$
9,490

 
$
—

 
$
138,218


The following table provides revenue and long-lived assets for the Company’s foreign operations included in the consolidated financial statements:
 
 
United Kingdom Operations
 
Other Foreign Operations
 
Total Foreign Operations
 
Total Domestic Operations
 
Consolidated Total
 
 
(in thousands)
2016
 
 
 
 
 
 
 
 
 
 
Revenue
 
$
683,457

 
$
1,882,590

 
$
2,566,047

 
$
5,788,887

 
$
8,354,934

Long-lived assets
 
$
69,380

 
$
104,780

 
$
174,160

 
$
577,376

 
$
751,536

 
 
 
 
 
 
 
 
 
 
 
2015
 
 
 
 
 
 
 
 
 
 
Revenue
 
$
672,802

 
$
1,534,629

 
$
2,207,431

 
$
5,038,300

 
$
7,245,731

Long-lived assets
 
$
74,517

 
$
126,194

 
$
200,711

 
$
530,571

 
$
731,282

 
 
 
 
 
 
 
 
 
 
 
2014
 
 
 
 
 
 
 
 
 
 
Revenue
 
$
772,445

 
$
1,591,643

 
$
2,364,088

 
$
4,502,876

 
$
6,866,964

Long-lived assets
 
$
71,269

 
$
105,937

 
$
177,206

 
$
518,131

 
$
695,337