Quarterly report pursuant to Section 13 or 15(d)

SEGMENT DATA

v3.5.0.2
SEGMENT DATA
 6 Months Ended
Jun. 30, 2016
Segment Reporting [Abstract]  
SEGMENT DATA
SEGMENT DATA
The Company’s reportable segments are Concerts, Sponsorship & Advertising, Ticketing and Artist Nation. 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 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 such as signage, promotional programs, rich media offerings, including advertising associated with live streaming and music-related original content, and ads across the Company’s distribution network of venues, events and websites. 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.
Revenue and expenses earned and charged between segments are eliminated in consolidation. The Company’s capital expenditures below include accruals and expenditures funded by outside parties such as landlords or replacements funded by insurance proceeds.
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, 2016 and 2015:
 
Concerts
 
Sponsorship
& Advertising
 
Ticketing
 
Artist
Nation
 
Other
 
Corporate
 
Eliminations
 
Consolidated
 
(in thousands)
Three Months Ended June 30, 2016
 
 
 
 
 
 
 
 
Revenue
$
1,597,756

 
$
95,200

 
$
443,348

 
$
86,720

 
$
1,506

 
$
—

 
$
(45,272
)
 
$
2,179,258

Direct operating expenses
1,350,297

 
15,687

 
235,546

 
48,875

 
—

 
—

 
(44,717
)
 
1,605,688

Selling, general and administrative expenses
193,357

 
16,004

 
121,067

 
39,618

 
4,780

 
—

 
—

 
374,826

Depreciation and amortization
35,673

 
4,423

 
39,927

 
14,224

 
880

 
852

 
(555
)
 
95,424

Loss (gain) on disposal of operating assets
(324
)
 
—

 
31

 
(45
)
 
—

 
59

 
—

 
(279
)
Corporate expenses
—

 
—

 
—

 
—

 
—

 
29,440

 
—

 
29,440

 
Concerts
 
Sponsorship
& Advertising
 
Ticketing
 
Artist
Nation
 
Other
 
Corporate
 
Eliminations
 
Consolidated
 
(in thousands)
Operating income (loss)
$
18,753

 
$
59,086

 
$
46,777

 
$
(15,952
)
 
$
(4,154
)
 
$
(30,351
)
 
$
—

 
$
74,159

Intersegment revenue
$
43,070

 
$
—

 
$
—

 
$
2,202

 
$
—

 
$
—

 
$
(45,272
)
 
$
—

Three Months Ended June 30, 2015
 
 
 
 
 
 
 
 
Revenue
$
1,268,382

 
$
81,071

 
$
360,197

 
$
87,835

 
$
791

 
$
—

 
$
(32,499
)
 
$
1,765,777

Direct operating expenses
1,075,507

 
10,717

 
171,045

 
53,806

 
—

 
—

 
(31,976
)
 
1,279,099

Selling, general and administrative expenses
158,689

 
13,856

 
117,027

 
39,582

 
416

 
—

 
—

 
329,570

Depreciation and amortization
40,033

 
2,225

 
35,561

 
10,756

 
13

 
506

 
(523
)
 
88,571

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

 
(30
)
 
—

 
—

 
9

 
—

 
(76
)
Corporate expenses
—

 
—

 
—

 
—

 
—

 
26,368

 
—

 
26,368

Operating income (loss)
$
(5,792
)
 
$
54,273

 
$
36,594

 
$
(16,309
)
 
$
362

 
$
(26,883
)
 
$
—

 
$
42,245

Intersegment revenue
$
30,572

 
$
—

 
$
460

 
$
1,467

 
$
—

 
$
—

 
$
(32,499
)
 
$
—

Six Months Ended June 30, 2016
 
 
 
 
 
 
 
 
 
 
Revenue
$
2,278,834

 
$
152,836

 
$
849,134

 
$
161,785

 
$
2,347

 
$
—

 
$
(57,962
)
 
$
3,386,974

Direct operating expenses
1,887,431

 
29,201

 
442,011

 
88,086

 
—

 
—

 
(56,838
)
 
2,389,891

Selling, general and administrative expenses
354,997

 
29,873

 
239,329

 
80,458

 
7,383

 
—

 
—

 
712,040

Depreciation and amortization
67,120

 
9,329

 
85,676

 
26,704

 
900

 
1,774

 
(1,124
)
 
190,379

Loss (gain) on disposal of operating assets
(358
)
 
—

 
31

 
(45
)
 
—

 
118

 
—

 
(254
)
Corporate expenses
—

 
—

 
—

 
—

 
—

 
54,049

 
—

 
54,049

Operating income (loss)
$
(30,356
)
 
$
84,433

 
$
82,087

 
$
(33,418
)
 
$
(5,936
)
 
$
(55,941
)
 
$
—

 
$
40,869

Intersegment revenue
$
54,517

 
$
—

 
$
—

 
$
3,445

 
$
—

 
$
—

 
$
(57,962
)
 
$
—

Capital expenditures
$
29,958

 
$
962

 
$
40,892

 
$
789

 
$
460

 
$
4,133

 
$
—

 
$
77,194

 
Concerts
 
Sponsorship
& Advertising
 
Ticketing
 
Artist
Nation
 
Other
 
Corporate
 
Eliminations
 
Consolidated
 
(in thousands)
Six Months Ended June 30, 2015
 
 
 
 
 
 
 
 
 
 
Revenue
$
1,891,616

 
$
133,168

 
$
735,827

 
$
165,780

 
$
1,584

 
$
—

 
$
(41,886
)
 
$
2,886,089

Direct operating expenses
1,561,479

 
21,345

 
356,737

 
100,636

 
1,068

 
—

 
(40,877
)
 
2,000,388

Selling, general and administrative expenses
309,113

 
26,950

 
229,587

 
76,802

 
1,250

 
—

 
—

 
643,702

Depreciation and amortization
69,214

 
4,213

 
78,857

 
20,791

 
24

 
1,022

 
(1,009
)
 
173,112

Loss (gain) on disposal of operating assets
171

 
—

 
(179
)
 
—

 
—

 
(29
)
 
—

 
(37
)
Corporate expenses
—

 
—

 
—

 
—

 
—

 
50,614

 
—

 
50,614

Operating income (loss)
$
(48,361
)
 
$
80,660

 
$
70,825

 
$
(32,449
)
 
$
(758
)
 
$
(51,607
)
 
$
—

 
$
18,310

Intersegment revenue
$
39,311

 
$
—

 
$
460

 
$
2,115

 
$
—

 
$
—

 
$
(41,886
)
 
$
—

Capital expenditures
$
18,867

 
$
1,721

 
$
42,117

 
$
868

 
$
—

 
$
438

 
$
—

 
$
64,011