Quarterly report pursuant to Section 13 or 15(d)

LONG-LIVED ASSETS

v3.10.0.1
LONG-LIVED ASSETS
 9 Months Ended
Sep. 30, 2018
LONG-LIVED ASSETS [Abstract]  
LONG-LIVED ASSETS
LONG-LIVED ASSETS
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 nine months ended September 30, 2018:
 
Revenue-
generating
contracts
 
Client /
vendor
relationships
 
Trademarks
and
naming
rights
 
Technology
 
Other (1)
 
Total
 
(in thousands)
Balance as of December 31, 2017:
 
 
 
 
 
 
 
 
Gross carrying amount
$
789,363

 
$
341,449

 
$
126,331

 
$
63,666

 
$
135,231

 
$
1,456,040

Accumulated amortization
(410,011
)
 
(186,357
)
 
(32,681
)
 
(22,745
)
 
(74,981
)
 
(726,775
)
Net
379,352

 
155,092

 
93,650

 
40,921

 
60,250

 
729,265

Gross carrying amount:
 
 
 
 
 
 
 
 
 
 
Acquisitions—current year
6,128

 
49,162

 
—

 
27,551

 
12,902

 
95,743

Acquisitions—prior year
4,447

 
—

 
—

 
—

 
1,900

 
6,347

Dispositions
—

 
(11,812
)
 
—

 
—

 
(18,754
)
 
(30,566
)
Foreign exchange
(10,165
)
 
(5,646
)
 
(1,302
)
 
(828
)
 
(2,523
)
 
(20,464
)
Other (2)
(89,145
)
 
(6,160
)
 
—

 
(3,156
)
 
(4,353
)
 
(102,814
)
Net change
(88,735
)
 
25,544

 
(1,302
)
 
23,567

 
(10,828
)
 
(51,754
)
Accumulated amortization:
 
 
 
 
 
 
 
 
 
 
Amortization
(62,974
)
 
(38,938
)
 
(9,365
)
 
(16,886
)
 
(15,381
)
 
(143,544
)
Dispositions
—

 
8,146

 
—

 
—

 
13,238

 
21,384

Foreign exchange
5,037

 
3,694

 
363

 
447

 
1,487

 
11,028

Other (2)
89,376

 
6,178

 
23

 
3,178

 
4,434

 
103,189

Net change
31,439

 
(20,920
)
 
(8,979
)
 
(13,261
)
 
3,778

 
(7,943
)
Balance as of September 30, 2018:
 
 
 
 
 
 
 
 
Gross carrying amount
700,628

 
366,993

 
125,029

 
87,233

 
124,403

 
1,404,286

Accumulated amortization
(378,572
)
 
(207,277
)
 
(41,660
)
 
(36,006
)
 
(71,203
)
 
(734,718
)
Net
$
322,056

 
$
159,716

 
$
83,369

 
$
51,227

 
$
53,200

 
$
669,568


______________
(1) Other includes intangible assets for non-compete, venue management and leasehold agreements.      
(2) Other includes netdowns of fully amortized assets.
Included in the current year acquisitions amounts above are definite-lived intangible assets primarily associated with the acquisitions of controlling interests in various concert and festival promotion businesses and artist management businesses that are all located in the United States, and the acquisition of certain software assets from a business located in the United States.
The 2018 additions to definite-lived intangible assets from acquisitions have weighted-average lives as follows:
 
Weighted-
Average
Life (years)
Revenue-generating contracts
7
Client/vendor relationships
7
Technology
3
Other
12
All categories
7

Amortization of definite-lived intangible assets for the three months ended September 30, 2018 and 2017 was $51.4 million and $53.4 million, respectively, and for the nine months ended September 30, 2018 and 2017 was $143.5 million and $143.4 million, respectively.
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 September 30, 2018:
 
 
(in thousands)
October 1 - December 31, 2018
$
58,023

2019
$
160,194

2020
$
128,449

2021
$
93,013

2022
$
75,482


As acquisitions and dispositions occur in the future and the valuations of intangible assets for recent acquisitions are completed, amortization will vary.
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, 2018:
 
Concerts
 
Sponsorship
& Advertising
 
Ticketing
 
Total
 
(in thousands)
Balance as of December 31, 2017:
 
 
 
 
 
 
 
Goodwill
$
1,015,913

 
$
401,753

 
$
761,786

 
$
2,179,452

Accumulated impairment losses
(424,863
)
 
—

 
—

 
(424,863
)
                 Net
591,050

 
401,753

 
761,786

 
1,754,589

Acquisitions—current year
37,723

 
3,890

 
5,875

 
47,488

Acquisitions—prior year
53,578

 
1,693

 
—

 
55,271

Dispositions
(7,053
)
 
—

 
—

 
(7,053
)
Foreign exchange
(7,706
)
 
(4,313
)
 
(2,923
)
 
(14,942
)
Balance as of September 30, 2018:
 
 
 
 
 
 
 
Goodwill
1,092,455

 
403,023

 
764,738

 
2,260,216

Accumulated impairment losses
(424,863
)
 
—

 
—

 
(424,863
)
                 Net
$
667,592

 
$
403,023

 
$
764,738

 
$
1,835,353


Included in the current year acquisitions amount above is goodwill associated with the acquisitions of controlling interests in various concert and festival promotion businesses and an artist management business along with the acquisition of a ticketing business that are all located in the United States.
Included in the prior year acquisitions amount above is a purchase price adjustment recognized in connection with contingent consideration paid during 2018 related to an acquisition that occurred prior to the Company’s adoption of the current FASB guidance for business combinations. Under the previous guidance, which was in place at the time of this acquisition, such contingent payments were recognized when it was determinable that the applicable financial targets were met.
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.