Quarterly report pursuant to Section 13 or 15(d)

LONG-LIVED ASSETS

v3.7.0.1
LONG-LIVED ASSETS
 6 Months Ended
Jun. 30, 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 six months ended June 30, 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
—

 
21,186

 
—

 
—

 
9,060

 
—

 
—

 
30,246

Acquisitions— prior year
(6,724
)
 
—

 
35,464

 
—

 
1,120

 
—

 
—

 
29,860

Foreign exchange
14,747

 
6,639

 
892

 
1,394

 
1,309

 
1,686

 
10

 
26,677

Other(1)
—

 
—

 
2

 
5

 
(145
)
 
—

 
(253
)
 
(391
)
Net change
8,023

 
27,825

 
36,358

 
1,399

 
11,344

 
1,686

 
(243
)
 
86,392

Accumulated amortization:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amortization
(38,627
)
 
(29,800
)
 
(6,699
)
 
(6,708
)
 
(5,530
)
 
(2,301
)
 
(320
)
 
(89,985
)
Foreign exchange
(5,843
)
 
(2,785
)
 
(328
)
 
(586
)
 
(391
)
 
(817
)
 
(2
)
 
(10,752
)
Other(1)
19

 
(19
)
 
—

 
8

 
151

 
—

 
252

 
411

Net change
(44,451
)
 
(32,604
)
 
(7,027
)
 
(7,286
)
 
(5,770
)
 
(3,118
)
 
(70
)
 
(100,326
)
Balance as of June 30, 2017:
 
 
 
 
 
 
 
 
 
 
 
 
Gross carrying amount
768,421

 
429,834

 
130,696

 
67,391

 
64,422

 
55,687

 
3,771

 
1,520,222

Accumulated amortization
(361,251
)
 
(246,389
)
 
(30,751
)
 
(29,385
)
 
(19,407
)
 
(32,782
)
 
(2,160
)
 
(722,125
)
Net
$
407,170

 
$
183,445

 
$
99,945

 
$
38,006

 
$
45,015

 
$
22,905

 
$
1,611

 
$
798,097

______________
(1) Other includes netdowns of fully amortized assets.
Included in the current year acquisitions amounts above are definite-lived intangible assets primarily associated with the acquisitions of an artist management business located in the United States, a concert promotion business located in Italy and various ticketing businesses located in the United States and the Czech Republic.
Included in the prior year acquisitions amounts above are changes primarily associated with the acquisitions of festival promotion businesses located in the United States and Australia.
The 2017 additions to definite-lived intangible assets from acquisitions have weighted-average lives as follows:
 
Weighted-
Average
Life (years)
Client/vendor relationships
6
Technology
4
All categories
5

Amortization of definite-lived intangible assets for the three months ended June 30, 2017 and 2016 was $45.4 million for each respective period, and for the six months ended June 30, 2017 and 2016 was $90.0 million and $85.2 million, respectively. Amortization related to nonrecoupable ticketing contract advances for the three months ended June 30, 2017 and 2016 was $14.7 million and $15.0 million, respectively, and for the six months ended June 30, 2017 and 2016 was $34.8 million and $36.5 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 no longer presents Artist Nation as a reportable segment. The Company now includes the business previously reported in the Artist Nation segment in the Concerts segment. See further discussion of the segment change in Note 5—Segment Data. The Company’s reporting units reviewed for goodwill impairment remain unchanged.
The following table presents the changes in the carrying amount of goodwill in each of the Company’s reportable segments for the six months ended June 30, 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
7,470

 
—

 
11,215

 
18,685

Acquisitions—prior year
(21,465
)
 
(9,821
)
 
883

 
(30,403
)
Foreign exchange
7,293

 
5,854

 
6,457

 
19,604

 
 
 
 
 
 
 
 
Balance as of June 30, 2017:
 
 
 
 
 
 
 
Goodwill
1,010,318

 
391,859

 
757,660

 
2,159,837

Accumulated impairment losses
(404,863
)
 
—

 
—

 
(404,863
)
                 Net
$
605,455

 
$
391,859

 
$
757,660

 
$
1,754,974


Included in the current year acquisitions amounts above is goodwill associated with the acquisitions of various ticketing businesses located in the United States, an artist management business located in the United States and a concert promotion business located in Italy.
Included in the prior year acquisitions amounts above are changes primarily associated with the acquisitions of festival promotion businesses located in the United States and Australia.
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.