Annual report pursuant to Section 13 and 15(d)

LONG-LIVED ASSETS (Tables)

v2.4.1.9
LONG-LIVED ASSETS (Tables)
 12 Months Ended
Dec. 31, 2014
LONG-LIVED ASSETS [Abstract]  
Gross Carrying Amount and Accumulated Amortization of Definite-Lived Intangible Assets
The following table presents the changes in the gross carrying amount and accumulated amortization of definite-lived intangible assets for the years ended December 31, 2014 and 2013:
 
Revenue-
generating
contracts
 
Client /
vendor
relationships
 
Non-compete
agreements
 
Venue
management
and
leaseholds
 
Technology
 
Trademarks
and
naming
rights
 
Other
 
Total
 
(in thousands)
Balance as of December 31, 2012:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gross carrying amount
$
515,071

 
$
261,655

 
$
168,418

 
$
118,259

 
$
101,424

 
$
18,423

 
$
6,452

 
$
1,189,702

Accumulated amortization
(197,549
)
 
(39,807
)
 
(111,369
)
 
(51,891
)
 
(53,295
)
 
(6,678
)
 
(4,650
)
 
(465,239
)
Net
317,522

 
221,848

 
57,049

 
66,368

 
48,129

 
11,745

 
1,802

 
724,463

Gross carrying amount:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Acquisitions—current year
85,927

 
31,582

 
—

 
—

 
3,370

 
10,500

 
—

 
131,379

Acquisitions— prior year
(1,028
)
 
(2,833
)
 
—

 
—

 
—

 
—

 
—

 
(3,861
)
Dispositions
—

 
(1,354
)
 
—

 
—

 
—

 
—

 
—

 
(1,354
)
Foreign exchange
2,476

 
(6,525
)
 
98

 
(17
)
 
826

 
376

 
(34
)
 
(2,800
)
Other (1)
(17,352
)
 
(4,588
)
 
(31,317
)
 
(32,600
)
 
(4,956
)
 
(775
)
 
(4,043
)
 
(95,631
)
Net change
70,023

 
16,282

 
(31,219
)
 
(32,617
)
 
(760
)
 
10,101

 
(4,077
)
 
27,733

Accumulated amortization:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amortization
(49,972
)
 
(47,918
)
 
(21,984
)
 
(24,615
)
 
(24,116
)
 
(4,160
)
 
(416
)
 
(173,181
)
Dispositions
—

 
61

 
—

 
—

 
—

 
—

 
—

 
61

Foreign exchange
(884
)
 
1,412

 
(92
)
 
219

 
(655
)
 
(209
)
 
31

 
(178
)
Other (1)
17,352

 
4,443

 
32,317

 
32,600

 
4,956

 
1,955

 
4,043

 
97,666

Net change
(33,504
)
 
(42,002
)
 
10,241

 
8,204

 
(19,815
)
 
(2,414
)
 
3,658

 
(75,632
)
Balance as of December 31, 2013:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gross carrying amount
585,094

 
277,937

 
137,199

 
85,642

 
100,664

 
28,524

 
2,375

 
1,217,435

Accumulated amortization
(231,053
)
 
(81,809
)
 
(101,128
)
 
(43,687
)
 
(73,110
)
 
(9,092
)
 
(992
)
 
(540,871
)
Net
354,041

 
196,128

 
36,071

 
41,955

 
27,554

 
19,432

 
1,383

 
676,564

Gross carrying amount:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Acquisitions—current year
75,304

 
92,974

 
—

 
—

 
8,415

 
—

 
1,100

 
177,793

Acquisitions— prior year
(1,851
)
 
2,857

 
1,500

 
—

 
407

 
—

 
—

 
2,913

Dispositions
(1,600
)
 
—

 
—

 
—

 
—

 
—

 
—

 
(1,600
)
Foreign exchange
(19,056
)
 
(8,508
)
 
—

 
(2,324
)
 
(1,608
)
 
(1,176
)
 
(5
)
 
(32,677
)
Other (1)
(2,764
)
 
(9,268
)
 
(15,147
)
 
4

 
(92,548
)
 
(3,082
)
 
111

 
(122,694
)
Net change
50,033

 
78,055

 
(13,647
)
 
(2,320
)
 
(85,334
)
 
(4,258
)
 
1,206

 
23,735

Accumulated amortization:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amortization
(52,664
)
 
(52,389
)
 
(12,531
)
 
(7,960
)
 
(24,946
)
 
(3,458
)
 
(713
)
 
(154,661
)
Dispositions
605

 
—

 
—

 
—

 
—

 
—

 
—

 
605

Foreign exchange
8,277

 
1,735

 
—

 
1,161

 
1,262

 
767

 
3

 
13,205

Other (1)
2,764

 
9,268

 
15,147

 
(4
)
 
92,548

 
3,082

 
460

 
123,265

Net change
(41,018
)
 
(41,386
)
 
2,616

 
(6,803
)
 
68,864

 
391

 
(250
)
 
(17,586
)
Balance as of December 31, 2014:
 
 
 
 
 
 
 
 
 
 
 
 
Gross carrying amount
635,127

 
355,992

 
123,552

 
83,322

 
15,330

 
24,266

 
3,581

 
1,241,170

Accumulated amortization
(272,071
)
 
(123,195
)
 
(98,512
)
 
(50,490
)
 
(4,246
)
 
(8,701
)
 
(1,242
)
 
(558,457
)
Net
$
363,056

 
$
232,797

 
$
25,040

 
$
32,832

 
$
11,084

 
$
15,565

 
$
2,339

 
$
682,713

(1) 
Other includes netdowns of fully amortized or impaired assets and, for 2013, a $1.2 million reclassification from indefinite-lived intangible assets due to a change in the asset’s estimated useful life.
Weighted Average Lives of Additions to Definite-Lived Intangible Assets
The 2014 and 2013 additions to definite-lived intangible assets from acquisitions have weighted-average lives as follows:
  
Weighted-
Average
Life (years)
 
2014
 
2013
 
 
 
 
Revenue-generating contracts
9

 
9

Client/vendor relationships
7

 
8

Technology
5

 
5

Trademarks and naming rights
—

 
10

Other
10

 
—

All categories
8

 
9

Estimate of Amortization Expense for Each of the Five Succeeding Fiscal Years for Definite-Lived Intangible Assets
The following table presents the Company’s estimate of amortization expense for each of the five succeeding fiscal years for definite-lived intangible assets that exist at December 31, 2014:
 
 
(in thousands)
2015
$
130,262

2016
$
125,166

2017
$
104,932

2018
$
86,048

2019
$
73,680

Changes in Goodwill by Segment
The following table presents the changes in the carrying amount of goodwill in each of the Company’s reportable segments for the years ended December 31, 2014 and 2013:
 
Concerts
 
Ticketing
 
Artist
Nation
 
Sponsorship
&  Advertising
 
Total
 
(in thousands)
Balance as of December 31, 2012:
 
 
 
 
 
 
 
 
 
Goodwill (1)
$
468,891

 
$
637,642

 
$
266,820

 
$
254,376

 
$
1,627,729

Accumulated impairment losses (1)
(269,902
)
 
—

 
—

 
—

 
(269,902
)
                 Net
198,989

 
637,642

 
266,820

 
254,376

 
1,357,827

 
 
 
 
 
 
 
 
 
 
Acquisitions—current year
42,826

 
1,715

 
3,253

 
49,748

 
97,542

Acquisitions—prior year
(2,811
)
 
—

 
9,203

 
—

 
6,392

Dispositions
(3,691
)
 
—

 
(251
)
 
—

 
(3,942
)
Foreign exchange
257

 
2,892

 
(102
)
 
6,117

 
9,164

 
 
 
 
 
 
 
 
 
 
Balance as of December 31, 2013:
 
 
 
 
 
 
 
 
 
Goodwill
505,472

 
642,249

 
278,923

 
310,241

 
1,736,885

Accumulated impairment losses
(269,902
)
 
—

 
—

 
—

 
(269,902
)
                 Net
235,570

 
642,249

 
278,923

 
310,241

 
1,466,983

 
 
 
 
 
 
 
 
 
 
Acquisitions—current year
92,393

 
27,943

 
68,107

 
15,774

 
204,217

Acquisitions—prior year
1,997

 
—

 
(2,304
)
 
(625
)
 
(932
)
Dispositions
—

 
(4,434
)
 
—

 
—

 
(4,434
)
Impairment
(117,013
)
 
—

 
(17,948
)
 
—

 
(134,961
)
Foreign exchange
(21,971
)
 
(8,127
)
 
787

 
(22,525
)
 
(51,836
)
 
 
 
 
 
 
 
 
 
 
Balance as of December 31, 2014:
 
 
 
 
 
 
 
 
Goodwill
577,891

 
657,631

 
345,513

 
302,865

 
1,883,900

Accumulated impairment losses
(386,915
)
 
—

 
(17,948
)
 
—

 
(404,863
)
                 Net
$
190,976

 
$
657,631

 
$
327,565

 
$
302,865

 
$
1,479,037


(1) 
The previously reported total balance has been reduced by $13.0 million due to the net down of fully impaired goodwill related to the Company’s non-core events business which was sold in 2008.
Investments in Nonconsolidated Affiliates
For the year ended December 31, 2014, the Company’s investment in Venta de Boletos por Computadora S.A. de C.V (“VBC”), a 33% owned ticketing distribution services company, is considered significant. Summarized balance sheet and income statement information for VBC is as follows (at 100%):
 
 
December 31,
 
 
2014
 
2013
 
 
(in thousands)
Current assets
 
$
37,239

 
$
38,387

Noncurrent assets
 
$
6,340

 
$
6,545

Current liabilities
 
$
21,729

 
$
21,031

Noncontrolling interests
 
$
391

 
$
296

 
 
Year Ended December 31,
 
 
2014
 
2013
 
2012
 
 
(in thousands)
Revenue
 
$
43,490

 
$
51,940

 
$
49,306

Operating income
 
$
20,092

 
$
27,027

 
$
26,427

Net income
 
$
14,641

 
$
20,574

 
$
20,340

Net income attributable to the common stockholders of the equity investees
 
$
14,500

 
$
20,515

 
$
20,309

Asset and Liability Values at the Time of Disposal and the Resulting Gain or Loss Recorded
The table below summarizes the asset and liability values at the time of sale for significant disposals and the resulting gain or loss recorded.
Divested Asset
 
Segment
 
Gain on
Disposal of
Operating
Assets
 
Current
Assets
 
Noncurrent
Assets
 
Current
Liabilities
 
Noncurrent
Liabilities
 
 
(in thousands)
2013 Divestiture
 
 
 
 
 
 
 
 
 
 
 
 
New York theater
 
Concerts
 
$
(24,845
)
 
$
—

 
$
35,785

 
$
—

 
$
3,636