Quarterly report pursuant to Section 13 or 15(d)

LONG-LIVED ASSETS

v3.3.0.814
LONG-LIVED ASSETS
 9 Months Ended
Sep. 30, 2015
LONG-LIVED ASSETS [Abstract]  
LONG-LIVED ASSETS
LONG-LIVED ASSETS
Definite-lived Intangible Assets
The Company has definite-lived intangible assets which are amortized over the shorter of either the lives of the respective agreements or the period of time the assets are expected to contribute to the Company’s future cash flows. The amortization is recognized on either a straight-line or expected cash flows basis.
The following table presents the changes in the gross carrying amount and accumulated amortization of definite-lived intangible assets for the nine months ended September 30, 2015:
 
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, 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

Gross carrying amount:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Acquisitions— current year
100,534

 
38,313

 
—

 
13,195

 
15,450

 
48,273

 
—

 
215,765

Acquisitions— prior year
(4,566
)
 
2,934

 
8,900

 
—

 
11

 
—

 
—

 
7,279

Foreign exchange
(10,740
)
 
(9,150
)
 
—

 
(2,005
)
 
(849
)
 
(394
)
 
—

 
(23,138
)
Other (1)
(16,473
)
 
(2,655
)
 
—

 
(16,563
)
 
—

 
—

 
—

 
(35,691
)
Net change
68,755

 
29,442

 
8,900

 
(5,373
)
 
14,612

 
47,879

 
—

 
164,215

Accumulated amortization:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amortization
(53,226
)
 
(39,696
)
 
(10,582
)
 
(7,832
)
 
(3,196
)
 
(3,577
)
 
(292
)
 
(118,401
)
Foreign exchange
4,487

 
2,488

 
—

 
1,066

 
5

 
220

 
—

 
8,266

Other (1)
16,473

 
2,655

 
—

 
16,563

 
—

 
12

 
—

 
35,703

Net change
(32,266
)
 
(34,553
)
 
(10,582
)
 
9,797

 
(3,191
)
 
(3,345
)
 
(292
)
 
(74,432
)
Balance as of September 30, 2015:
 
 
 
 
 
 
 
 
 
 
 
 
Gross carrying amount
703,882

 
385,434

 
132,452

 
77,949

 
29,942

 
72,145

 
3,581

 
1,405,385

Accumulated amortization
(304,337
)
 
(157,748
)
 
(109,094
)
 
(40,693
)
 
(7,437
)
 
(12,046
)
 
(1,534
)
 
(632,889
)
Net
$
399,545

 
$
227,686

 
$
23,358

 
$
37,256

 
$
22,505

 
$
60,099

 
$
2,047

 
$
772,496

_________
(1) 
Other includes net downs of fully amortized or impaired assets.
Included in the current year acquisitions amount above of $215.8 million are intangibles primarily associated with the acquisitions of controlling interests in two festival promoters and two artist management businesses and the acquisition of a ticketing business previously accounted for under the equity method, all located in the United States.
The 2015 additions to definite-lived intangible assets from acquisitions have weighted-average lives as follows:
  
Weighted-
Average
Life (years)
 
 
Revenue-generating contracts
9
Client/vendor relationships
7
Venue management and leaseholds
7
Technology
5
Trademarks and naming rights
10
All categories
8

Amortization of definite-lived intangible assets for the three months ended September 30, 2015 and 2014 was $42.3 million and $39.7 million, respectively, and for the nine months ended September 30, 2015 and 2014 was $118.4 million and $107.6 million, respectively. Amortization related to nonrecoupable ticketing contract advances for the three months ended September 30, 2015 and 2014 was $22.4 million and $21.1 million, respectively, and for the nine months ended September 30, 2015 and 2014 was $55.2 million and $50.1 million, respectively.
The following table presents the Company’s estimate of future amortization expense for the remainder of 2015 through 2019 for definite-lived intangible assets that exist at September 30, 2015:
 
(in thousands)
October 1 - December 31, 2015
$
40,968

2016
$
149,292

2017
$
131,870

2018
$
110,812

2019
$
96,569


As acquisitions and dispositions occur in the future and the valuations of intangible assets for recent acquisitions are completed, amortization may vary. Therefore, the expense to date is not necessarily indicative of the expense expected for the full year.

Goodwill
The following table presents the changes in the carrying amount of goodwill in each of the Company’s reportable segments for the nine months ended September 30, 2015:
 
Concerts
 
Ticketing
 
Artist
Nation
 
Sponsorship
& Advertising
 
Total
 
(in thousands)
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

 
 
 
 
 
 
 
 
 
 
Acquisitions—current year
74,384

 
83,946

 
15,251

 
25,631

 
199,212

Acquisitions—prior year
(25,022
)
 
8,365

 
(3,551
)
 
(9,776
)
 
(29,984
)
Foreign exchange
(5,768
)
 
(6,751
)
 
(679
)
 
(5,557
)
 
(18,755
)
 
 
 
 
 
 
 
 
 
 
Balance as of September 30, 2015:
 
 
 
 
 
 
 
 
 
Goodwill
621,485

 
743,191

 
356,534

 
313,163

 
2,034,373

Accumulated impairment losses
(386,915
)
 
—

 
(17,948
)
 
—

 
(404,863
)
                 Net
$
234,570

 
$
743,191

 
$
338,586

 
$
313,163

 
$
1,629,510


Included in the current year acquisitions amount above of $199.2 million is goodwill primarily associated with the acquisitions of controlling interests in two festival promoters and the remaining interest in a ticketing business, all located in the United States. One of the festival businesses and the ticketing business were previously accounted for under the equity method.
Included in the prior year acquisitions amount above is a decrease of $30.0 million of goodwill primarily associated with the acquisition of a controlling interest in a festival and concert promoter located in the United States.
The Company is in various stages of finalizing its acquisition accounting for recent acquisitions, which include the use of external valuation consultants, and the completion of this accounting could result in a change to the associated purchase price allocations, including goodwill and its allocation between segments.