Annual report pursuant to Section 13 and 15(d)

DISCONTINUED OPERATIONS

v2.4.0.6
DISCONTINUED OPERATIONS
 12 Months Ended
Dec. 31, 2011
DISCONTINUED OPERATIONS [Abstract]  
DISCONTINUED OPERATIONS
NOTE 4-DISCONTINUED OPERATIONS
 
In October 2009, the Company sold its remaining theatrical venues and operations in the United Kingdom to The Ambassador Theatre Group Limited for a gross sales price of $148.7 million. After fees, expenses and a working capital adjustment, the Company received $111.3 million of net proceeds. The sale of the U.K. theatrical business resulted in a tax-free gain of $56.6 million in the fourth quarter of 2009. For the year ended December 31, 2010, the Company reported an additional $4.2 million of expense related to the sale of the U.K. theatrical business.
 
The Company has reported the U.K. theatrical business as discontinued operations in accordance with the FASB guidance for presentation of financial statements. Accordingly, the results of operations for all periods presented have been reclassified. Included in discontinued operations are the Company's disposals of investments in nonconsolidated affiliates which were part of the businesses sold. During 2009, the Company sold its 33% interest in Dominion Theatre Investments Limited which was part of the U.K. theatrical business.
 
Summary operating results of discontinued operations are as follows:
 
 
  
2011
    
2010
    
2009
  
   
(in thousands)
  
Revenue
   $ -     $ -     $ 50,985  
Operating expenses
     -       -       38,229  
Gain on sale of operating assets
     -       -       (6,659 )
Other income-net
     -       -       (364 )
Income from discontinued operations before income taxes
     -       -       19,779  
Income tax benefit
     -       -       (1,903 )
Income from discontinued operations before loss (gain) on disposal
     -       -       21,682  
Loss (gain) on disposal, net of tax
     -       4,228       (54,595 )
Income (loss)  from discontinued operations, net of tax
     -       (4,228 )     76,277  
Income from discontinued operations attributable to noncontrolling interests
     -       -       -  
Income (loss) from discontinued operations attributable to Live Nation Entertainment, Inc.
   $ -     $ (4,228 )   $ 76,277  
 
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 on sale
    
Current
 Assets
    
Noncurrent
 Assets
    
Current
Liabilities
    
Noncurrent
Liabilities
    
Accumulated
OCI
  
 
      
(in thousands)
        
2009 Divestitures
                                        
U.K. theatrical business
  
 Other
   $ (56,599 )   $ 16,850     $ 103,173     $ 61,705     $ 111     $ 3,585  
Dominion Theatre
  
 Other
   $ (6,952 )   $ -     $ 4,672     $ -     $ -     $ (150 )
 
Certain agreements relating to disposals of businesses provide for future contingent consideration to be paid to the Company based on the financial performance of the businesses sold. The Company will record additional amounts related to such contingent consideration, with a corresponding adjustment to gain (loss) on sale of operating assets, if and when it is determinable that the applicable financial performance targets will be met. The aggregate of these contingent considerations, if all existing performance targets are met, would not significantly impact the results of operations of the Company. The last contingency period for which the Company has an outstanding contingent consideration is for the year ended December 31, 2013.