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

Annual report pursuant to Section 13 and 15(d)

FAIR VALUE MEASUREMENTS (Tables)

FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Dec. 31, 2011

Fair Value of Assets and Liabilities Measured on a Recurring Basis

In accordance with the fair value hierarchy described above, the following table shows the fair value of the Company's financial assets and liabilities that are required to be measured at fair value on a recurring basis, as of December 31, 2011 and 2010, which are classified on the balance sheets as cash and cash equivalents, other current assets, other long-term assets, other current liabilities and other long-term liabilities:

	Fair Value Measurements at December 31, 2011								Fair Value Measurements at December 31, 2010
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
	(in thousands)								(in thousands)
Assets:
Cash equivalents	$	138,537	$	-	$	-	$	138,537	$	96,293	$	-	$	-	$	96,293
Forward currency contracts		-		355		-		355		-		6		-		6
Interest rate cap		-		7		-		7		-		167		-		167
Investments in rabbi trusts		-		-		-		-		3,576		-		-		3,576
Stock options		-		-		1,060		1,060		-		-		278		278
Total	$	138,537	$	362	$	1,060	$	139,959	$	99,869	$	173	$	278	$	100,320

Liabilities:
Interest rate swaps	$	-	$	3,037	$	-	$	3,037	$	-	$	2,119	$	-	$	2,119
Forward currency contracts		-		-		-		-		-		2,769		-		2,769
Contingent consideration		-		-		8,363		8,363		-		-		15,976		15,976
Other current liabilities		-		-		-		-		3,576		-		-		3,576
Total	$	-	$	3,037	$	8,363	$	11,400	$	3,576	$	4,888	$	15,976	$	24,440

Fair Value of Assets and Liabilities Measured on Recurring Basis Unobservable Input Reconciliation

The following table summarizes the changes in the Company's Level 3 assets and liabilities for the years ended December 31, 2011 and 2010:

	Stock Options		Contingent Consideration
	(in thousands)
Balance as of December 31, 2009	$	-	$	-
Total gains and losses (realized/unrealized)included in earnings		-		(3,083	)
Purchases		278		(24,995	)
Settlements		-		12,102
Balance as of December 31, 2010		278		(15,976	)
Total gains and losses (realized/unrealized)included in earnings		782		11,691
Purchases		-		(4,078	)
Settlements		-		-
Balance as of December 31, 2011	$	1,060	$	(8,363	)

The amount of total gains and losses for the period included in earnings attributable to the change in unrealized gains or losses relating to assets and liabilities still held:
As of December 31, 2010	$	-	$	(3,083	)
As of December 31, 2011	$	782	$	(11,674	)

Fair Value of Assets Measured on a Non-recurring Basis

The following table shows the fair value of the Company's financial assets that have been adjusted to fair value on a non-recurring basis which had a significant impact on the Company's results of operations for the years ended December 31, 2011 and 2010:

	Fair Value
	Measurement
	As Of		Fair Value Measurements Using						Total
Description	December 31		Level 1		Level 2		Level 3		Losses
	(in thousands)
2011 Impairments
Property, plant and equipment	$	5,400	$	-	$	5,400	$	-	$	10,030
Definite-lived intangible assets, net	$	44,585	$	-	$	-	$	44,585		14,103
2011 Total									$	24,133
2010 Impairments
Property, plant and equipment	$	6,156	$	-	$	5,000	$	1,156	$	16,377
Definite-lived intangible assets, net	$	-	$	-	$	-	$	-		17,178
Indefinite-lived intangible assets	$	343,000	$	-	$	-	$	343,000		10,000
Artist advances	$	99,092	$	-	$	-	$	99,092		13,373
2010 Total									$	56,928

- Definition

Tabular disclosure of assets and liabilities by class, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a nonrecurring basis in periods after initial recognition (for example, impaired assets). The disclosures that may be required or desired include: (a) the fair value measurements recorded during the period and the reasons for the measurements and (b) the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets or liabilities (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). Where the quoted price in an active market for the identical liability is not available, the Level 1 input is the quoted price of an identical liability when traded as an asset.

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