Quarterly report pursuant to Section 13 or 15(d)

SEGMENT DATA

v3.5.0.2
SEGMENT DATA
9 Months Ended
Sep. 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 event production services and 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 nine months ended September 30, 2016 and 2015:
 
Concerts
 
Sponsorship
& Advertising
 
Ticketing
 
Artist
Nation
 
Other
 
Corporate
 
Eliminations
 
Consolidated
 
(in thousands)
Three Months Ended September 30, 2016
 
 
 
 
 
 
 
 
Revenue
$
2,497,136

 
$
136,087

 
$
456,443

 
$
150,823

 
$
2,138

 
$

 
$
(72,211
)
 
$
3,170,416

Direct operating expenses
2,160,233

 
15,510

 
231,979

 
91,550

 
149

 

 
(71,418
)
 
2,428,003

Selling, general and administrative expenses
216,255

 
20,667

 
124,007

 
49,383

 
4,100

 

 

 
414,412

Depreciation and amortization
34,002

 
4,448

 
47,113

 
18,187

 
1,153

 
752

 
(793
)
 
104,862

Loss (gain) on disposal of operating assets
176

 

 
13

 
65

 

 
(1
)
 

 
253

 
Concerts
 
Sponsorship
& Advertising
 
Ticketing
 
Artist
Nation
 
Other
 
Corporate
 
Eliminations
 
Consolidated
 
(in thousands)
Corporate expenses

 

 

 

 

 
31,600

 

 
31,600

Operating income (loss)
$
86,470

 
$
95,462

 
$
53,331

 
$
(8,362
)
 
$
(3,264
)
 
$
(32,351
)
 
$

 
$
191,286

Intersegment revenue
$
66,139

 
$

 
$
4,415

 
$
1,657

 
$

 
$

 
$
(72,211
)
 
$

Three Months Ended September 30, 2015
 
 
 
 
 
 
 
 
Revenue
$
1,991,909

 
$
126,576

 
$
426,177

 
$
136,675

 
$
793

 
$

 
$
(59,213
)
 
$
2,622,917

Direct operating expenses
1,722,880

 
16,978

 
210,022

 
83,171

 

 

 
(58,729
)
 
1,974,322

Selling, general and administrative expenses
188,063

 
14,190

 
120,429

 
42,138

 
400

 

 

 
365,220

Depreciation and amortization
36,075

 
2,525

 
46,533

 
13,152

 
12

 
1,241

 
(484
)
 
99,054

Loss (gain) on disposal of operating assets
250

 

 
188

 
187

 

 

 

 
625

Corporate expenses

 

 

 

 

 
30,186

 

 
30,186

Operating income (loss)
$
44,641

 
$
92,883

 
$
49,005

 
$
(1,973
)
 
$
381

 
$
(31,427
)
 
$

 
$
153,510

Intersegment revenue
$
50,635

 
$

 
$
7,921

 
$
657

 
$

 
$

 
$
(59,213
)
 
$

Nine Months Ended September 30, 2016
 
 
 
 
 
 
 
 
 
 
Revenue
$
4,775,970

 
$
288,923

 
$
1,305,577

 
$
312,608

 
$
4,485

 
$

 
$
(130,173
)
 
$
6,557,390

Direct operating expenses
4,047,664

 
44,711

 
673,990

 
179,636

 
149

 

 
(128,256
)
 
4,817,894

Selling, general and administrative expenses
571,252

 
50,540

 
363,336

 
129,841

 
11,483

 

 

 
1,126,452

Depreciation and amortization
101,122

 
13,777

 
132,789

 
44,891

 
2,053

 
2,526

 
(1,917
)
 
295,241

Loss (gain) on disposal of operating assets
(182
)
 

 
44

 
20

 

 
117

 

 
(1
)
Corporate expenses

 

 

 

 

 
85,649

 

 
85,649

Operating income (loss)
$
56,114

 
$
179,895

 
$
135,418

 
$
(41,780
)
 
$
(9,200
)
 
$
(88,292
)
 
$

 
$
232,155

Intersegment revenue
$
119,027

 
$

 
$
8,552

 
$
2,594

 
$

 
$

 
$
(130,173
)
 
$

Capital expenditures
$
50,294

 
$
1,318

 
$
64,513

 
$
1,059

 
$
777

 
$
5,454

 
$

 
$
123,415

 
Concerts
 
Sponsorship
& Advertising
 
Ticketing
 
Artist
Nation
 
Other
 
Corporate
 
Eliminations
 
Consolidated
 
(in thousands)
Nine Months Ended September 30, 2015
 
 
 
 
 
 
 
 
 
 
Revenue
$
3,883,525

 
$
259,744

 
$
1,162,004

 
$
302,455

 
$
2,377

 
$

 
$
(101,099
)
 
$
5,509,006

Direct operating expenses
3,284,359

 
38,323

 
566,759

 
183,807

 
1,068

 

 
(99,606
)
 
3,974,710

Selling, general and administrative expenses
497,176

 
41,140

 
350,016

 
118,940

 
1,650

 

 

 
1,008,922

Depreciation and amortization
105,289

 
6,738

 
125,390

 
33,943

 
36

 
2,263

 
(1,493
)
 
272,166

Loss (gain) on disposal of operating assets
421

 

 
9

 
187

 

 
(29
)
 

 
588

Corporate expenses

 

 

 

 

 
80,800

 

 
80,800

Operating income (loss)
$
(3,720
)
 
$
173,543

 
$
119,830

 
$
(34,422
)
 
$
(377
)
 
$
(83,034
)
 
$

 
$
171,820

Intersegment revenue
$
90,410

 
$

 
$
9,499

 
$
1,190

 
$

 
$

 
$
(101,099
)
 
$

Capital expenditures
$
27,042

 
$
4,138

 
$
60,413

 
$
1,538

 
$

 
$
1,715

 
$

 
$
94,846