Annual report pursuant to Section 13 and 15(d)

SEGMENT DATA

v2.4.0.6
SEGMENT DATA
 12 Months Ended
Dec. 31, 2012
SEGMENT DATA [Abstract]  
SEGMENT DATA
NOTE 13—SEGMENT DATA
 
The Company's reportable segments are Concerts, Ticketing, Artist Nation and Sponsorship & Advertising. Prior to 2012, the Company reported an eCommerce segment, which is now included in the Ticketing and Sponsorship & Advertising segments. Specifically, all online advertising and online sponsorships previously reported in the eCommerce segment are now reported in the Sponsorship & Advertising segment while all other activity has been included in the Ticketing segment. This change was made to be consistent with how the four key components of the business are now being managed.
 
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, artist fan sites and VIP tickets 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.
 
The Company has reclassified all periods to conform to the current period presentation. 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.
 
There are no customers that individually account for more than ten percent 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, 2012, 2011 and 2010:
 
             
Artist
    
Sponsorship
                          
   
Concerts
    
Ticketing
    
Nation
    
& Advertising
    
Other
    
Corporate
    
Eliminations
    
Consolidated
  
 
(in thousands)
  
2012
                                            
Revenue
   $ 3,870,371     $ 1,374,049     $ 399,940     $ 247,921     $ 2,997     $ -     $ (76,231 )   $ 5,819,047  
Direct operating expenses
     3,274,951       651,055       263,896       34,738       816       -       (74,179 )     4,151,277  
Selling, general and administrative expenses
     569,570       434,310       99,786       38,198       1,768       -       -       1,143,632  
Depreciation and amortization
     145,552       165,947       115,696       1,187       398       2,829       (2,052 )     429,557  
Loss (gain) on sale of operating assets
     (453 )     (225 )     (42 )     -       206       -       -       (514 )
Corporate expenses
     -       -       -       -       -       113,364       -       113,364  
Acquisition transaction expenses
     847       153       1,163       -       -       1,207       -       3,370  
Operating income (loss)
   $ (120,096 )   $ 122,809     $ (80,559 )   $ 173,798     $ (191 )   $ (117,400 )   $ -     $ (21,639 )
Intersegment revenue
   $ 65,559     $ 2,771     $ 7,901     $ -     $ -     $ -     $ (76,231 )   $ -  
Capital expenditures
   $ 24,149     $ 92,072     $ 601     $ 5,147     $ 4     $ 1,244     $ -     $ 123,217  
                                                                 
2011                                                        
Revenue
   $ 3,506,188     $ 1,319,343     $ 393,129     $ 230,791     $ 3,487     $ -     $ (68,940 )   $ 5,383,998  
Direct operating expenses
     2,946,410       618,382       260,884       33,682       (1,839 )     -       (68,031 )     3,789,488  
Selling, general and administrative expenses
     535,500       428,364       113,199       32,787       2,119       -       -       1,111,969  
Depreciation and amortization
     132,441       158,071       50,412       483       54       2,466       (909 )     343,018  
Loss (gain) on sale of operating assets
     (880 )     (96 )     1,264       -       689       1       -       978  
Corporate expenses
     -       -       -       -       -       112,157       -       112,157  
Acquisition transaction expenses
     (2,286 )     1,314       (7,758 )     -       -       16,781       -       8,051  
Operating income (loss)
   $ (104,997 )   $ 113,308     $ (24,872 )   $ 163,839     $ 2,464     $ (131,405 )   $ -     $ 18,337  
Intersegment revenue
   $ 58,866     $ 1,452     $ 8,622     $ -     $ -     $ -     $ (68,940 )   $ -  
Capital expenditures
   $ 21,436     $ 78,122     $ 4,916     $ 4,094     $ -     $ 3,476     $ -     $ 112,044  
                                                                 
2010                                                        
Revenue
   $ 3,438,350     $ 1,089,340     $ 362,159     $ 200,146     $ 4,324     $ (333 )   $ (30,238 )   $ 5,063,748  
Direct operating expenses
     2,910,334       513,311       233,016       28,512       -       1,502       (28,365 )     3,658,310  
Selling, general and administrative expenses
     524,672       362,416       93,995       30,707       2,701       -       -       1,014,491  
Depreciation and amortization
     139,129       139,007       41,520       255       1,362       2,266       (1,873 )     321,666  
Loss (gain) on sale of operating assets
     (4,848 )     5,186       20       6       6       4       -       374  
Corporate expenses
     -       -       -      
-
 
 
       -       110,252       -       110,252  
Acquisition transaction expenses
     (2,424 )     780       6,277       -       -       17,722       -       22,355  
Operating income (loss)
   $ (128,513 )   $ 68,640     $ (12,669 )   $ 140,666     $ 255     $ (132,079 )   $ -     $ (63,700 )
Intersegment revenue
   $ 16,876     $ -     $ 13,362     $ -     $ -     $ -     $ (30,238 )   $ -  
Capital expenditures
   $ 19,736     $ 45,544     $ 996     $ 67     $ 306     $ 7,189     $ -     $ 73,838  
 
The following table provides revenue and long-lived assets for the Company's foreign operations included in the consolidated financial statements:
 
   
United
    
Other
    
Total
    
Total
        
   
Kingdom
    
Foreign
    
Foreign
    
Domestic
    
Consolidated
  
   
Operations
    
Operations
    
Operations
    
Operations
    
Total
  
   
(in thousands)
  
2012
                              
Revenue
   $ 711,989     $ 1,368,768     $ 2,080,757     $ 3,738,290     $ 5,819,047  
Long-lived assets
   $ 87,790     $ 102,706     $ 190,496     $ 531,290     $ 721,786  
                                         
2011
                                        
Revenue
   $ 686,982     $ 1,387,295     $ 2,074,277     $ 3,309,721     $ 5,383,998  
Long-lived assets
   $ 85,614     $ 99,459     $ 185,073     $ 535,063     $ 720,136  
                                         
2010
                                        
Revenue
   $ 575,985     $ 1,044,288     $ 1,620,273     $ 3,443,475     $ 5,063,748  
Long-lived assets
   $ 73,634     $ 82,624     $ 156,258     $ 580,806     $ 737,064