Quarterly report pursuant to Section 13 or 15(d)

SEGMENT DATA

v3.3.0.814
SEGMENT DATA
 9 Months Ended
Sep. 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, the operation and management of music venues and the creation of associated content. 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 advertising associated with 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 nine months ended September 30, 2015 and 2014:
 
Concerts
 
Ticketing
 
Artist
Nation
 
Sponsorship
& Advertising
 
Other
 
Corporate
 
Eliminations
 
Consolidated
 
 
 
 
 
 
 
(in thousands)
 
 
 
 
 
 
Three Months Ended September 30, 2015
 
 
 
 
 
 
 
 
 
 
Revenue
$
1,991,909

 
$
426,177

 
$
136,675

 
$
126,576

 
$
793

 
$
—

 
$
(59,213
)
 
$
2,622,917

Direct operating expenses
1,722,880

 
210,022

 
83,171

 
16,978

 
—

 
—

 
(58,729
)
 
1,974,322

Selling, general and administrative expenses
185,729

 
119,842

 
41,814

 
14,190

 
400

 
—

 
—

 
361,975

Depreciation and amortization
36,075

 
46,533

 
13,152

 
2,525

 
12

 
1,241

 
(484
)
 
99,054

Loss (gain) on disposal of operating assets
250

 
188

 
187

 
—

 
—

 
—

 
—

 
625

Corporate expenses
—

 
—

 
—

 
—

 
—

 
29,988

 
—

 
29,988

Acquisition transaction expenses
2,334

 
587

 
324

 
—

 
—

 
198

 
—

 
3,443

Operating income (loss)
$
44,641

 
$
49,005

 
$
(1,973
)
 
$
92,883

 
$
381

 
$
(31,427
)
 
$
—

 
$
153,510

Intersegment revenue
$
52,522

 
$
690

 
$
6,001

 
$
—

 
$
—

 
$
—

 
$
(59,213
)
 
$
—

Three Months Ended September 30, 2014
 
 
 
 
 
 
 
 
 
 
Revenue
$
1,925,462

 
$
386,131

 
$
130,935

 
$
114,614

 
$
792

 
$
—

 
$
(55,926
)
 
$
2,502,008

Direct operating expenses
1,658,028

 
187,548

 
75,642

 
13,534

 
(2,473
)
 
—

 
(55,760
)
 
1,876,519

Selling, general and administrative expenses
186,415

 
113,483

 
35,400

 
13,098

 
1,280

 
—

 
—

 
349,676

Depreciation and amortization
30,155

 
55,521

 
10,498

 
1,264

 
11

 
642

 
(166
)
 
97,925

Loss (gain) on disposal of operating assets
(112
)
 
(1,584
)
 
—

 
—

 
—

 
—

 
—

 
(1,696
)
Corporate expenses
—

 
—

 
—

 
—

 
—

 
26,647

 
—

 
26,647

Acquisition transaction expenses
1,109

 
695

 
247

 
—

 
—

 
282

 
—

 
2,333

Operating income (loss)
$
49,867

 
$
30,468

 
$
9,148

 
$
86,718

 
$
1,974

 
$
(27,571
)
 
$
—

 
$
150,604

Intersegment revenue
$
48,737

 
$
690

 
$
6,499

 
$
—

 
$
—

 
$
—

 
$
(55,926
)
 
$
—

Nine Months Ended September 30, 2015
 
 
 
 
 
 
 
 
 
 
 
 
Revenue
$
3,883,525

 
$
1,162,004

 
$
302,455

 
$
259,744

 
$
2,377

 
$
—

 
$
(101,099
)
 
$
5,509,006

 
Concerts
 
Ticketing
 
Artist
Nation
 
Sponsorship
& Advertising
 
Other
 
Corporate
 
Eliminations
 
Consolidated
 
 
 
 
 
 
 
(in thousands)
 
 
 
 
 
 
Direct operating expenses
3,284,359

 
566,759

 
183,807

 
38,323

 
1,068

 
—

 
(99,606
)
 
3,974,710

Selling, general and administrative expenses
494,067

 
348,996

 
117,506

 
41,140

 
1,650

 
—

 
—

 
1,003,359

Depreciation and amortization
105,289

 
125,390

 
33,943

 
6,738

 
36

 
2,263

 
(1,493
)
 
272,166

Loss (gain) on disposal of operating assets
421

 
9

 
187

 
—

 
—

 
(29
)
 
—

 
588

Corporate expenses
—

 
—

 
—

 
—

 
—

 
80,690

 
—

 
80,690

Acquisition transaction expenses
3,109

 
1,020

 
1,434

 
—

 
—

 
110

 
—

 
5,673

Operating income (loss)
$
(3,720
)
 
$
119,830

 
$
(34,422
)
 
$
173,543

 
$
(377
)
 
$
(83,034
)
 
$
—

 
$
171,820

Intersegment revenue
$
91,834

 
$
1,150

 
$
8,115

 
$
—

 
$
—

 
$
—

 
$
(101,099
)
 
$
—

Capital expenditures
$
27,055

 
$
60,413

 
$
1,538

 
$
4,138

 
$
(13
)
 
$
1,715

 
$
—

 
$
94,846

Nine Months Ended September 30, 2014
 
 
 
 
 
 
 
 
 
 
 
 
Revenue
$
3,760,118

 
$
1,111,592

 
$
282,653

 
$
230,905

 
$
2,377

 
$
—

 
$
(92,536
)
 
$
5,295,109

Direct operating expenses
3,145,174

 
543,408

 
164,960

 
31,593

 
(1,792
)
 
—

 
(90,977
)
 
3,792,366

Selling, general and administrative expenses
503,221

 
339,385

 
95,222

 
37,263

 
2,915

 
—

 
—

 
978,006

Depreciation and amortization
84,864

 
142,472

 
25,934

 
3,207

 
31

 
1,783

 
(1,559
)
 
256,732

Loss (gain) on disposal of operating assets
(3,347
)
 
(1,701
)
 
34

 
—

 
—

 
37

 
—

 
(4,977
)
Corporate expenses
—

 
—

 
—

 
—

 
—

 
73,538

 
—

 
73,538

Acquisition transaction expenses
1,892

 
758

 
435

 
—

 
—

 
2,377

 
—

 
5,462

Operating income (loss)
$
28,314

 
$
87,270

 
$
(3,932
)
 
$
158,842

 
$
1,223

 
$
(77,735
)
 
$
—

 
$
193,982

Intersegment revenue
$
81,771

 
$
1,150

 
$
9,615

 
$
—

 
$
—

 
$
—

 
$
(92,536
)
 
$
—

Capital expenditures
$
24,647

 
$
59,791

 
$
1,503

 
$
579

 
$
6

 
$
5,464

 
$
—

 
$
91,990