Quarterly report pursuant to Section 13 or 15(d)

SEGMENT DATA

v3.2.0.727
SEGMENT DATA
 6 Months Ended
Jun. 30, 2015
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, rich media offerings, including live streaming and music-related original content, and banner ads across the Company’s distribution network of venues, events and websites.
Revenue and expenses earned and charged between segments are eliminated in consolidation. Corporate expenses and all line items below operating income (loss) are managed on a total company basis. The Company’s capital expenditures 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.
The following table presents the results of operations for the Company’s reportable segments for the three and six months ended June 30, 2015 and 2014:
 
Concerts
 
Ticketing
 
Artist
Nation
 
Sponsorship
& Advertising
 
Other
 
Corporate
 
Eliminations
 
Consolidated
 
 
 
 
 
 
 
(in thousands)
 
 
 
 
 
 
Three Months Ended June 30, 2015
 
 
 
 
 
 
 
 
 
 
Revenue
$
1,268,382

 
$
360,197

 
$
87,835

 
$
81,071

 
$
791

 
$
—

 
$
(32,499
)
 
$
1,765,777

Direct operating expenses
1,075,507

 
171,045

 
53,806

 
10,717

 
—

 
—

 
(31,976
)
 
1,279,099

Selling, general and administrative expenses
157,348

 
116,741

 
38,478

 
13,856

 
416

 
—

 
—

 
326,839

Depreciation and amortization
40,033

 
35,561

 
10,756

 
2,225

 
13

 
506

 
(523
)
 
88,571

Loss (gain) on disposal of operating assets
(55
)
 
(30
)
 
—

 
—

 
—

 
9

 
—

 
(76
)
Corporate expenses
—

 
—

 
—

 
—

 
—

 
26,342

 
—

 
26,342

Acquisition transaction expenses
1,341

 
286

 
1,104

 
—

 
—

 
26

 
—

 
2,757

Operating income (loss)
$
(5,792
)
 
$
36,594

 
$
(16,309
)
 
$
54,273

 
$
362

 
$
(26,883
)
 
$
—

 
$
42,245

Intersegment revenue
$
30,572

 
$
460

 
$
1,467

 
$
—

 
$
—

 
$
—

 
$
(32,499
)
 
$
—

Three Months Ended June 30, 2014
 
 
 
 
 
 
 
 
 
 
Revenue
$
1,172,166

 
$
371,000

 
$
79,162

 
$
70,903

 
$
839

 
$
—

 
$
(28,285
)
 
$
1,665,785

Direct operating expenses
969,991

 
183,269

 
47,242

 
9,995

 
1,590

 
—

 
(27,391
)
 
1,184,696

Selling, general and administrative expenses
166,890

 
111,882

 
34,029

 
12,244

 
880

 
—

 
—

 
325,925

 
Concerts
 
Ticketing
 
Artist
Nation
 
Sponsorship
& Advertising
 
Other
 
Corporate
 
Eliminations
 
Consolidated
 
 
 
 
 
 
 
(in thousands)
 
 
 
 
 
 
Depreciation and amortization
26,189

 
40,968

 
7,665

 
1,739

 
10

 
542

 
(894
)
 
76,219

Loss (gain) on disposal of operating assets
(3,745
)
 
(43
)
 
1

 
—

 


 
—

 
—

 
(3,787
)
Corporate expenses
—

 
—

 
—

 
—

 


 
25,717

 
—

 
25,717

Acquisition transaction expenses
456

 
58

 
(265
)
 
—

 


 
1,080

 
—

 
1,329

Operating income (loss)
$
12,385

 
$
34,866

 
$
(9,510
)
 
$
46,925

 
$
(1,641
)
 
$
(27,339
)
 
$
—

 
$
55,686

Intersegment revenue
$
25,604

 
$
187

 
$
2,494

 
$
—

 
$
—

 
$
—

 
$
(28,285
)
 
$
—

Six Months Ended June 30, 2015
 
 
 
 
 
 
 
 
 
 
 
 
Revenue
$
1,891,616

 
$
735,827

 
$
165,780

 
$
133,168

 
$
1,584

 
$
—

 
$
(41,886
)
 
$
2,886,089

Direct operating expenses
1,561,479

 
356,737

 
100,636

 
21,345

 
1,068

 
—

 
(40,877
)
 
2,000,388

Selling, general and administrative expenses
308,338

 
229,154

 
75,692

 
26,950

 
1,250

 
—

 
—

 
641,384

Depreciation and amortization
69,214

 
78,857

 
20,791

 
4,213

 
24

 
1,022

 
(1,009
)
 
173,112

Loss (gain) on disposal of operating assets
171

 
(179
)
 
—

 
—

 
—

 
(29
)
 
—

 
(37
)
Corporate expenses
—

 
—

 
—

 
—

 
—

 
50,702

 
—

 
50,702

Acquisition transaction expenses
775

 
433

 
1,110

 
—

 
—

 
(88
)
 
—

 
2,230

Operating income (loss)
$
(48,361
)
 
$
70,825

 
$
(32,449
)
 
$
80,660

 
$
(758
)
 
$
(51,607
)
 
$
—

 
$
18,310

Intersegment revenue
$
39,311

 
$
460

 
$
2,115

 
$
—

 
$
—

 
$
—

 
$
(41,886
)
 
$
—

Capital expenditures
$
18,880

 
$
42,117

 
$
868

 
$
1,721

 
$
(13
)
 
$
438

 
$
—

 
$
64,011

 
Concerts
 
Ticketing
 
Artist
Nation
 
Sponsorship
& Advertising
 
Other
 
Corporate
 
Eliminations
 
Consolidated
 
 
 
 
 
 
 
(in thousands)
 
 
 
 
 
 
Six Months Ended June 30, 2014
 
 
 
 
 
 
 
 
 
 
 
 
Revenue
$
1,834,656

 
$
725,461

 
$
151,718

 
$
116,291

 
$
1,585

 
$
—

 
$
(36,610
)
 
$
2,793,101

Direct operating expenses
1,487,146

 
355,860

 
89,318

 
18,059

 
681

 
—

 
(35,217
)
 
1,915,847

Selling, general and administrative expenses
316,806

 
225,902

 
59,822

 
24,165

 
1,635

 
—

 
—

 
628,330

Depreciation and amortization
54,709

 
86,951

 
15,436

 
1,943

 
20

 
1,141

 
(1,393
)
 
158,807

Loss (gain) on disposal of operating assets
(3,235
)
 
(117
)
 
34

 
—

 
—

 
37

 
—

 
(3,281
)
Corporate expenses
—

 
—

 
—

 
—

 
—

 
46,891

 
—

 
46,891

Acquisition transaction expenses
783

 
63

 
188

 
—

 
—

 
2,095

 
—

 
3,129

Operating income (loss)
$
(21,553
)
 
$
56,802

 
$
(13,080
)
 
$
72,124

 
$
(751
)
 
$
(50,164
)
 
$
—

 
$
43,378

Intersegment revenue
$
33,034

 
$
460

 
$
3,116

 
$
—

 
$
—

 
$
—

 
$
(36,610
)
 
$
—

Capital expenditures
$
18,306

 
$
37,438

 
$
943

 
$
449

 
$
—

 
$
5,271

 
$
—

 
$
62,407