Quarterly report pursuant to Section 13 or 15(d)

LONG-LIVED ASSETS

v3.4.0.3
LONG-LIVED ASSETS
 3 Months Ended
Mar. 31, 2016
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 three months ended March 31, 2016:
 
Revenue-
generating
contracts
 
Client /
vendor
relationships
 
Trademarks
and
naming
rights
 
Non-compete
agreements
 
Venue
management
and
leaseholds
 
Technology
 
Other
 
Total
 
(in thousands)
Balance as of December 31, 2015:
 
 
 
 
 
 
 
 
 
 
 
 
Gross carrying amount
$
700,795

 
$
379,282

 
$
86,556

 
$
176,354

 
$
66,051

 
$
30,265

 
$
3,598

 
$
1,442,901

Accumulated amortization
(313,743
)
 
(169,620
)
 
(14,578
)
 
(121,319
)
 
(35,645
)
 
(8,602
)
 
(1,631
)
 
(665,138
)
Net
387,052

 
209,662

 
71,978

 
55,035

 
30,406

 
21,663

 
1,967

 
777,763

Gross carrying amount:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Acquisitions— current year
19,460

 
9,511

 
259

 
—

 
—

 
—

 
—

 
29,230

Acquisitions— prior year
11,990

 
—

 
5,280

 
—

 
—

 
—

 
—

 
17,270

Foreign exchange
976

 
2,443

 
(71
)
 
(499
)
 
(859
)
 
365

 
—

 
2,355

Other
(63
)
 
—

 
(5
)
 
—

 
—

 
—

 
—

 
(68
)
Net change
32,363

 
11,954

 
5,463

 
(499
)
 
(859
)
 
365

 
—

 
48,787

Accumulated amortization:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amortization
(15,557
)
 
(13,566
)
 
(2,763
)
 
(5,273
)
 
(1,276
)
 
(1,326
)
 
24

 
(39,737
)
Foreign exchange
(620
)
 
(941
)
 
90

 
110

 
(6
)
 
19

 
—

 
(1,348
)
Other
—

 
—

 
(31
)
 
—

 
—

 
—

 
(133
)
 
(164
)
Net change
(16,177
)
 
(14,507
)
 
(2,704
)
 
(5,163
)
 
(1,282
)
 
(1,307
)
 
(109
)
 
(41,249
)
Balance as of March 31, 2016:
 
 
 
 
 
 
 
 
 
 
 
 
Gross carrying amount
733,158

 
391,236

 
92,019

 
175,855

 
65,192

 
30,630

 
3,598

 
1,491,688

Accumulated amortization
(329,920
)
 
(184,127
)
 
(17,282
)
 
(126,482
)
 
(36,927
)
 
(9,909
)
 
(1,740
)
 
(706,387
)
Net
$
403,238

 
$
207,109

 
$
74,737

 
$
49,373

 
$
28,265

 
$
20,721

 
$
1,858

 
$
785,301


Included in the current year acquisitions amounts above are definitive-lived intangible assets primarily associated with the acquisition of a controlling interest in a festival and concert promoter located in the United Kingdom.
Included in the prior year acquisitions amounts above are definitive-lived intangible assets primarily associated with the acquisition of a controlling interest in a festival promoter located in the United States.
The 2016 additions to definite-lived intangible assets from acquisitions have weighted-average lives as follows:
  
Weighted-
Average
Life (years)
 
 
Revenue-generating contracts
4
Client/vendor relationships
4
Trademarks and naming rights
5
All categories
4

Amortization of definite-lived intangible assets for the three months ended March 31, 2016 and 2015 was $39.7 million and $32.6 million, respectively. Amortization related to nonrecoupable ticketing contract advances for the three months ended March 31, 2016 and 2015 was $21.4 million and $19.6 million, respectively.
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 three months ended March 31, 2016:
 
Concerts
 
Sponsorship
& Advertising
 
Ticketing
 
Artist
Nation
 
Total
 
(in thousands)
Balance as of December 31, 2015:
 
 
 
 
 
 
 
 
 
Goodwill
$
602,771

 
$
332,081

 
$
733,825

 
$
340,501

 
$
2,009,178

Accumulated impairment losses
(386,915
)
 
—

 
—

 
(17,948
)
 
(404,863
)
                 Net
215,856

 
332,081

 
733,825

 
322,553

 
1,604,315

 
 
 
 
 
 
 
 
 
 
Acquisitions—current year
18,120

 
10,135

 
—

 
—

 
28,255

Acquisitions—prior year
(27,180
)
 
12,571

 
—

 
400

 
(14,209
)
Foreign exchange
(5,343
)
 
3,717

 
3,208

 
(391
)
 
1,191

 
 
 
 
 
 
 
 
 
 
Balance as of March 31, 2016:
 
 
 
 
 
 
 
 
 
Goodwill
588,368

 
358,504

 
737,033

 
340,510

 
2,024,415

Accumulated impairment losses
(386,915
)
 
—

 
—

 
(17,948
)
 
(404,863
)
                 Net
$
201,453

 
$
358,504

 
$
737,033

 
$
322,562

 
$
1,619,552


Included in the current year acquisitions amounts above is goodwill primarily associated with the acquisition of a controlling interest in a festival and concert promoter located in the United Kingdom.
Included in the prior year acquisitions amounts above are reductions in goodwill resulting from changes in purchase price allocations of prior year acquisitions primarily related to the acquisition of a controlling interest in a festival 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.