Quarterly report pursuant to Section 13 or 15(d)

LONG-LIVED ASSETS

v3.7.0.1
LONG-LIVED ASSETS
 3 Months Ended
Mar. 31, 2017
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 three months ended March 31, 2017:
 
Revenue-
generating
contracts
 
Client /
vendor
relationships
 
Trademarks
and
naming
rights
 
Non-compete
agreements
 
Technology
 
Venue
management
and
leaseholds
 
Other
 
Total
 
(in thousands)
Balance as of December 31, 2016:
 
 
 
 
 
 
 
 
 
 
 
 
Gross carrying amount
$
760,398

 
$
402,009

 
$
94,338

 
$
65,992

 
$
53,078

 
$
54,001

 
$
4,014

 
$
1,433,830

Accumulated amortization
(316,800
)
 
(213,785
)
 
(23,724
)
 
(22,099
)
 
(13,637
)
 
(29,664
)
 
(2,090
)
 
(621,799
)
Net
443,598

 
188,224

 
70,614

 
43,893

 
39,441

 
24,337

 
1,924

 
812,031

Gross carrying amount:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Acquisitions— current year
—

 
11,856

 
—

 
—

 
41

 
—

 
—

 
11,897

Acquisitions— prior year
4,703

 
—

 
30,789

 
—

 
527

 
—

 
—

 
36,019

Foreign exchange
4,468

 
2,974

 
360

 
298

 
260

 
343

 
12

 
8,715

Other(1)
—

 
—

 
—

 
—

 
(41
)
 
—

 
(250
)
 
(291
)
Net change
9,171

 
14,830

 
31,149

 
298

 
787

 
343

 
(238
)
 
56,340

Accumulated amortization:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amortization
(19,622
)
 
(14,565
)
 
(3,230
)
 
(3,336
)
 
(2,514
)
 
(1,146
)
 
(207
)
 
(44,620
)
Foreign exchange
(1,344
)
 
(1,565
)
 
(61
)
 
(115
)
 
(64
)
 
(165
)
 
(1
)
 
(3,315
)
Other(1)
—

 
—

 
—

 
—

 
41

 
—

 
250

 
291

Net change
(20,966
)
 
(16,130
)
 
(3,291
)
 
(3,451
)
 
(2,537
)
 
(1,311
)
 
42

 
(47,644
)
Balance as of March 31, 2017:
 
 
 
 
 
 
 
 
 
 
 
 
Gross carrying amount
769,569

 
416,839

 
125,487

 
66,290

 
53,865

 
54,344

 
3,776

 
1,490,170

Accumulated amortization
(337,766
)
 
(229,915
)
 
(27,015
)
 
(25,550
)
 
(16,174
)
 
(30,975
)
 
(2,048
)
 
(669,443
)
Net
$
431,803

 
$
186,924

 
$
98,472

 
$
40,740

 
$
37,691

 
$
23,369

 
$
1,728

 
$
820,727

______________
(1) Other includes netdowns of fully amortized assets.

Included in the prior year acquisitions amounts above are changes primarily associated with the acquisitions of festival promotion businesses located in the United States.
The 2017 additions to definite-lived intangible assets from acquisitions have weighted-average lives as follows:
 
Weighted-
Average
Life (years)
Client/vendor relationships
4
Technology
1
All categories
4

Amortization of definite-lived intangible assets for the three months ended March 31, 2017 and 2016 was $44.6 million and $39.7 million, respectively. Amortization related to nonrecoupable ticketing contract advances for the three months ended March 31, 2017 and 2016 was $20.1 million and $21.4 million, respectively.
As acquisitions and dispositions occur in the future and the valuations of intangible assets for recent acquisitions are completed, amortization may vary.
Goodwill
In 2016, the Company’s reportable segments were Concerts, Sponsorship & Advertising, Ticketing and Artist Nation. Beginning in 2017, the Company will no longer present Artist Nation as a reportable segment. The Company has included the business reported in the Artist Nation segment in the prior year in the Concerts segment. See further discussion of the segment change in Note 5—Segment Data. The Company’s seven reporting units remain unchanged.
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, 2017:
 
Concerts
 
Sponsorship
& Advertising
 
Ticketing
 
Total
 
(in thousands)
Balance as of December 31, 2016:
 
 
 
 
 
 
 
Goodwill
$
1,017,020

 
$
395,826

 
$
739,105

 
$
2,151,951

Accumulated impairment losses
(404,863
)
 
—

 
—

 
(404,863
)
                 Net
612,157

 
395,826

 
739,105

 
1,747,088

 
 
 
 
 
 
 
 
Acquisitions—current year
5,430

 
—

 
3,318

 
8,748

Acquisitions—prior year
(29,195
)
 
(8,976
)
 
882

 
(37,289
)
Foreign exchange
2,875

 
1,538

 
1,153

 
5,566

 
 
 
 
 
 
 
 
Balance as of March 31, 2017:
 
 
 
 
 
 
 
Goodwill
996,130

 
388,388

 
744,458

 
2,128,976

Accumulated impairment losses
(404,863
)
 
—

 
—

 
(404,863
)
                 Net
$
591,267

 
$
388,388

 
$
744,458

 
$
1,724,113


Included in the prior year acquisitions amounts above are changes primarily associated with the acquisitions of festival promotion businesses 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.