| SEGMENT DATA |
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 or operated venues and in rented third-party venues, the production of music festivals and the operation and management of music venues. 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 Artist Nation segment provides management services to artists and other services including merchandise. 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 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’s capital expenditures include accruals but exclude expenditures funded by outside parties such as landlords or replacements funded by insurance companies.
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, 2013, 2012 and 2011:
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Concerts |
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Ticketing |
|
Artist
Nation |
|
Sponsorship
& Advertising |
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Other |
|
Corporate |
|
Eliminations |
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Consolidated |
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(in thousands) |
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2013 |
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Revenue |
$ |
4,517,191 |
|
|
$ |
1,407,817 |
|
|
$ |
352,947 |
|
|
$ |
284,692 |
|
|
$ |
3,164 |
|
|
$ |
— |
|
|
$ |
(87,264 |
) |
|
$ |
6,478,547 |
|
Direct operating expenses |
3,829,991 |
|
|
672,221 |
|
|
218,113 |
|
|
45,021 |
|
|
380 |
|
|
— |
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|
(85,219 |
) |
|
4,680,507 |
|
Selling, general and administrative expenses |
632,614 |
|
|
442,788 |
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|
103,304 |
|
|
45,618 |
|
|
2,568 |
|
|
— |
|
|
— |
|
|
1,226,892 |
|
Depreciation and amortization |
132,386 |
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|
190,801 |
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|
42,613 |
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|
2,351 |
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|
206 |
|
|
2,611 |
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|
(2,045 |
) |
|
368,923 |
|
(Gain) loss on disposal of operating assets |
(38,927 |
) |
|
(4 |
) |
|
665 |
|
|
— |
|
|
7 |
|
|
— |
|
|
— |
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|
(38,259 |
) |
Corporate expenses |
— |
|
|
— |
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|
— |
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|
— |
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|
— |
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|
94,385 |
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|
— |
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|
94,385 |
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Acquisition transaction expenses |
723 |
|
|
245 |
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|
3 |
|
|
64 |
|
|
— |
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|
5,404 |
|
|
— |
|
|
6,439 |
|
Operating income (loss) |
$ |
(39,596 |
) |
|
$ |
101,766 |
|
|
$ |
(11,751 |
) |
|
$ |
191,638 |
|
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$ |
3 |
|
|
$ |
(102,400 |
) |
|
$ |
— |
|
|
$ |
139,660 |
|
Intersegment revenue |
$ |
77,050 |
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|
$ |
2,295 |
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|
$ |
7,919 |
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|
$ |
— |
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$ |
— |
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$ |
— |
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$ |
(87,264 |
) |
|
$ |
— |
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Capital expenditures |
$ |
23,526 |
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$ |
89,539 |
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$ |
1,497 |
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|
$ |
1,424 |
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$ |
— |
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$ |
391 |
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$ |
— |
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$ |
116,377 |
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2012 |
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Revenue |
$ |
3,870,371 |
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|
$ |
1,374,049 |
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|
$ |
399,940 |
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|
$ |
247,921 |
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|
$ |
2,997 |
|
|
$ |
— |
|
|
$ |
(76,231 |
) |
|
$ |
5,819,047 |
|
Direct operating expenses |
3,274,951 |
|
|
651,055 |
|
|
263,896 |
|
|
34,738 |
|
|
816 |
|
|
— |
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|
(74,179 |
) |
|
4,151,277 |
|
Selling, general and administrative expenses |
569,570 |
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|
434,310 |
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|
99,786 |
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|
38,198 |
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|
1,768 |
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|
— |
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|
— |
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|
1,143,632 |
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Concerts |
|
Ticketing |
|
Artist
Nation |
|
Sponsorship
& Advertising |
|
Other |
|
Corporate |
|
Eliminations |
|
Consolidated |
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(in thousands) |
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Depreciation and amortization |
145,552 |
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|
165,947 |
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|
115,696 |
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|
1,187 |
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|
398 |
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|
2,829 |
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|
(2,052 |
) |
|
429,557 |
|
(Gain) loss on disposal of operating assets |
(453 |
) |
|
(225 |
) |
|
(42 |
) |
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— |
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|
206 |
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|
— |
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|
— |
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|
(514 |
) |
Corporate expenses |
— |
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|
— |
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|
— |
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|
— |
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|
— |
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|
113,364 |
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|
— |
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|
113,364 |
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Acquisition transaction expenses |
847 |
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|
153 |
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|
1,163 |
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|
— |
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|
— |
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|
1,207 |
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|
— |
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|
3,370 |
|
Operating income (loss) |
$ |
(120,096 |
) |
|
$ |
122,809 |
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|
$ |
(80,559 |
) |
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$ |
173,798 |
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$ |
(191 |
) |
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$ |
(117,400 |
) |
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$ |
— |
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$ |
(21,639 |
) |
Intersegment revenue |
$ |
65,559 |
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$ |
2,771 |
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$ |
7,901 |
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$ |
— |
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$ |
— |
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$ |
— |
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$ |
(76,231 |
) |
|
$ |
— |
|
Capital expenditures |
$ |
24,149 |
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$ |
92,072 |
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$ |
601 |
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$ |
5,147 |
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$ |
4 |
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$ |
1,244 |
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$ |
— |
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$ |
123,217 |
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2011 |
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Revenue |
$ |
3,506,188 |
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$ |
1,319,343 |
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$ |
393,129 |
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$ |
230,791 |
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$ |
3,487 |
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$ |
— |
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$ |
(68,940 |
) |
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$ |
5,383,998 |
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Direct operating expenses |
2,946,410 |
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|
618,382 |
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|
260,884 |
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|
33,682 |
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|
(1,839 |
) |
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— |
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(68,031 |
) |
|
3,789,488 |
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Selling, general and administrative expenses |
535,500 |
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|
428,364 |
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|
113,199 |
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|
32,787 |
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|
2,119 |
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— |
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|
— |
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|
1,111,969 |
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Depreciation and amortization |
132,441 |
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|
158,071 |
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|
50,412 |
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|
483 |
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|
54 |
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|
2,466 |
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|
(909 |
) |
|
343,018 |
|
(Gain) loss on disposal of operating assets |
(880 |
) |
|
(96 |
) |
|
1,264 |
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|
— |
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|
689 |
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|
1 |
|
|
— |
|
|
978 |
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Corporate expenses |
— |
|
|
— |
|
|
— |
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|
— |
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|
— |
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|
112,157 |
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|
— |
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|
112,157 |
|
Acquisition transaction expenses |
(2,286 |
) |
|
1,314 |
|
|
(7,758 |
) |
|
— |
|
|
— |
|
|
16,781 |
|
|
— |
|
|
8,051 |
|
Operating income (loss) |
$ |
(104,997 |
) |
|
$ |
113,308 |
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|
$ |
(24,872 |
) |
|
$ |
163,839 |
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$ |
2,464 |
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$ |
(131,405 |
) |
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$ |
— |
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$ |
18,337 |
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Intersegment revenue |
$ |
58,866 |
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|
$ |
1,452 |
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$ |
8,622 |
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|
$ |
— |
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$ |
— |
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|
$ |
— |
|
|
$ |
(68,940 |
) |
|
$ |
— |
|
Capital expenditures |
$ |
21,436 |
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$ |
78,122 |
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|
$ |
4,916 |
|
|
$ |
4,094 |
|
|
$ |
— |
|
|
$ |
3,476 |
|
|
$ |
— |
|
|
$ |
112,044 |
|
The following table provides revenue and long-lived assets for the Company’s foreign operations included in the consolidated financial statements:
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United Kingdom Operations |
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Other Foreign Operations |
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Total Foreign Operations |
|
Total Domestic Operations |
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Consolidated Total |
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(in thousands) |
2013 |
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Revenue |
|
$ |
729,316 |
|
|
$ |
1,786,445 |
|
|
$ |
2,515,761 |
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$ |
3,962,786 |
|
|
$ |
6,478,547 |
|
Long-lived assets |
|
$ |
76,607 |
|
|
$ |
116,859 |
|
|
$ |
193,466 |
|
|
$ |
513,334 |
|
|
$ |
706,800 |
|
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|
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|
|
|
|
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|
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 |
|
|
|
|
|
|
|
|
|
|
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|
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 |
|
|