Quarterly report pursuant to Section 13 or 15(d)

SEGMENT DATA

v3.7.0.1
SEGMENT DATA
 3 Months Ended
Mar. 31, 2017
Segment Reporting [Abstract]  
SEGMENT DATA
SEGMENT DATA
The Company’s reportable segments are Concerts, Sponsorship & Advertising and Ticketing. Prior to 2017, the Company reported an Artist Nation segment, which is now included in its Concerts segment based on the Company’s belief that the strategy behind artist management is to provide a full range of services related to concert promotion and to expand the Concerts line of business. In connection with this, there has been a change in the way the chief operating decision maker, as defined in the FASB guidance, makes decisions around allocations of resources and management responsibilities for this business.
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, the creation of associated content and the provision of management and other services to artists. The Sponsorship & Advertising segment manages the development of strategic sponsorship programs in addition to the sale of international, national and local sponsorships and the 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 ticketing website, www.ticketmaster.com.
Revenue and expenses earned and charged between segments are eliminated in consolidation. The Company’s capital expenditures below include accruals for amounts incurred but not yet paid for, but are not reduced by reimbursements received from 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 months ended March 31, 2017 and 2016:
 
Concerts
 
Sponsorship
& Advertising
 
Ticketing
 
Other
 
Corporate
 
Eliminations
 
Consolidated
 
(in thousands)
Three Months Ended March 31, 2017
 
 
 
 
 
 
 
 
Revenue
$
863,277

 
$
63,988

 
$
493,710

 
$
5,847

 
$
—

 
$
(13,641
)
 
$
1,413,181

Direct operating expenses
664,745

 
11,574

 
261,803

 
279

 
—

 
(12,901
)
 
925,500

Selling, general and administrative expenses
228,580

 
19,458

 
130,037

 
5,233

 
—

 
—

 
383,308

Depreciation and amortization
46,442

 
6,510

 
47,339

 
109

 
935

 
(740
)
 
100,595

Loss (gain) on disposal of operating assets
(683
)
 
—

 
—

 
—

 
24

 
—

 
(659
)
Corporate expenses
—

 
—

 
—

 
—

 
25,803

 
—

 
25,803

Operating income (loss)
$
(75,807
)
 
$
26,446

 
$
54,531

 
$
226

 
$
(26,762
)
 
$
—

 
$
(21,366
)
Intersegment revenue
$
10,865

 
$
2,776

 
$
—

 
$
—

 
$
—

 
$
(13,641
)
 
$
—

Capital expenditures
$
33,642

 
$
505

 
$
25,452

 
$
146

 
$
4,122

 
$
—

 
$
63,867

Three Months Ended March 31, 2016
 
 
 
 
 
 
 
 
Revenue
$
754,892

 
$
57,636

 
$
405,786

 
$
841

 
$
—

 
$
(11,439
)
 
$
1,207,716

Direct operating expenses
575,094

 
13,514

 
206,465

 
—

 
—

 
(10,870
)
 
784,203

Selling, general and administrative expenses
202,480

 
13,869

 
118,262

 
2,603

 
—

 
—

 
337,214

Depreciation and amortization
43,927

 
4,906

 
45,749

 
20

 
922

 
(569
)
 
94,955

Loss (gain) on disposal of operating assets
(34
)
 
—

 
—

 
—

 
59

 
—

 
25

Corporate expenses
—

 
—

 
—

 
—

 
24,609

 
—

 
24,609

Operating income (loss)
$
(66,575
)
 
$
25,347

 
$
35,310

 
$
(1,782
)
 
$
(25,590
)
 
$
—

 
$
(33,290
)
Intersegment revenue
$
10,436

 
$
1,003

 
$
—

 
$
—

 
$
—

 
$
(11,439
)
 
$
—

Capital expenditures
$
6,172

 
$
318

 
$
16,259

 
$
20

 
$
1,757

 
$
—

 
$
24,526