Annual report pursuant to Section 13 and 15(d)

SEGMENT DATA

v2.4.1.9
SEGMENT DATA
 12 Months Ended
Dec. 31, 2014
Segment Reporting [Abstract]  
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, 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 services to artists and other services including merchandise sales. 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 below include accruals and 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.
For the years ended December 31, 2013 and 2012, the previously reported capital expenditures amounts have been increased by $24.7 million and $1.2 million to include insurance recoveries and landlord reimbursements. The expenditures had previously been reported net of recoveries and reimbursements. The 2013 increase includes $21.8 million in the Concerts segment of partial insurance recoveries received in connection with storm damage to an amphitheater in New York during Hurricane Sandy.
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, 2014, 2013 and 2012:
 
Concerts
 
Ticketing
 
Artist
Nation
 
Sponsorship
& Advertising
 
Other
 
Corporate
 
Eliminations
 
Consolidated
 
 
 
 
 
 
 
(in thousands)
 
 
 
 
 
 
2014
 
 
 
 
 
 
 
 
 
 
 
 
Revenue
$
4,726,877

 
$
1,557,254

 
$
389,437

 
$
300,279

 
$
3,171

 
$
—

 
$
(110,054
)
 
$
6,866,964

Direct operating expenses
4,016,540

 
763,280

 
212,302

 
37,973

 
(2,174
)
 
—

 
(107,952
)
 
4,919,969

Selling, general and administrative expenses
666,475

 
471,982

 
138,066

 
50,292

 
3,345

 
—

 
—

 
1,330,160

Depreciation and amortization
115,088

 
204,901

 
43,343

 
4,281

 
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
—

 
—

 
—

 
—

 
—

 
101,000

 
—

 
101,000

Acquisition transaction expenses
5,171

 
1,381

 
566

 
—

 
38

 
2,905

 
—

 
10,061

Operating income (loss)
$
(190,456
)
 
$
117,293

 
$
(22,822
)
 
$
207,733

 
$
1,951

 
$
(106,535
)
 
$
—

 
$
7,164

Intersegment revenue
$
97,642

 
$
1,150

 
$
11,262

 
$
—

 
$
—

 
$
—

 
$
(110,054
)
 
$
—

Capital expenditures
$
35,006

 
$
89,990

 
$
1,892

 
$
1,834

 
$
6

 
$
9,490

 
$
—

 
$
138,218

 
Concerts
 
Ticketing
 
Artist
Nation
 
Sponsorship
& Advertising
 
Other
 
Corporate
 
Eliminations
 
Consolidated
 
 
 
 
 
 
 
(in thousands)
 
 
 
 
 
 
2013
 
 
 
 
 
 
 
 
 
 
 
 
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

 
—

 
(85,219
)
 
4,680,507

Selling, general and administrative expenses
632,614

 
442,788

 
103,304

 
45,618

 
2,568

 
—

 
—

 
1,226,892

Depreciation and amortization
132,386

 
190,801

 
42,613

 
2,351

 
206

 
2,611

 
(2,045
)
 
368,923

Loss (gain) on disposal of operating assets
(38,927
)
 
(4
)
 
665

 
—

 
7

 
—

 
—

 
(38,259
)
Corporate expenses
—

 
—

 
—

 
—

 
—

 
94,385

 
—

 
94,385

Acquisition transaction expenses
723

 
245

 
3

 
64

 
—

 
5,404

 
—

 
6,439

Operating income (loss)
$
(39,596
)
 
$
101,766

 
$
(11,751
)
 
$
191,638

 
$
3

 
$
(102,400
)
 
$
—

 
$
139,660

Intersegment revenue
$
77,050

 
$
2,295

 
$
7,919

 
$
—

 
$
—

 
$
—

 
$
(87,264
)
 
$
—

Capital expenditures
$
45,925

 
$
90,132

 
$
2,255

 
$
1,424

 
$
—

 
$
1,303

 
$
—

 
$
141,039

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 disposal 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
$
24,634

 
$
92,651

 
$
601

 
$
5,147

 
$
4

 
$
1,336

 
$
—

 
$
124,373


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)
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

 
 
 
 
 
 
 
 
 
 
 
2013
 
 
 
 
 
 
 
 
 
 
Revenue
 
$
716,982

 
$
1,773,088

 
$
2,490,070

 
$
3,988,477

 
$
6,478,547

Long-lived assets
 
$
76,607

 
$
116,859

 
$
193,466

 
$
513,334

 
$
706,800

 
 
 
 
 
 
 
 
 
 
 
2012
 
 
 
 
 
 
 
 
 
 
Revenue
 
$
691,849

 
$
1,349,912

 
$
2,041,761

 
$
3,777,286

 
$
5,819,047

Long-lived assets
 
$
87,790

 
$
102,706

 
$
190,496

 
$
531,290

 
$
721,786