Live Nation Entertainment Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

SEGMENT DATA

SEGMENT DATA

3 Months Ended

Mar. 31, 2018

The Company’s reportable segments are Concerts, Sponsorship & Advertising and Ticketing. 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, 2018 and 2017:



	Concerts			Sponsorship & Advertising		Ticketing		Other			Corporate			Eliminations			Consolidated
	(in thousands)
Three Months Ended March 31, 2018
Revenue	$	1,038,921		$	74,558	$	372,373	$	777		$	—		$	(4,245	)	$	1,482,384
Direct operating expenses	796,165			15,751		124,284		129			—			(4,245		)	932,084
Selling, general and administrative expenses	261,091			20,095		149,583		3,842			—			—			434,611
Depreciation and amortization	45,535			7,610		33,633		209			884			—			87,871
Loss on disposal of operating assets	21			—		17		—			—			—			38
Corporate expenses	—			—		—		—			33,810			—			33,810
Operating income (loss)	$	(63,891	)	$	31,102	$	64,856	$	(3,403	)	$	(34,694	)	$	—		$	(6,030	)
Intersegment revenue	$	249		$	—	$	3,996	$	—		$	—		$	(4,245	)	$	—
Capital expenditures	$	19,613		$	382	$	20,305	$	12		$	854		$	—		$	41,166
Three Months Ended March 31, 2017
Revenue	$	863,277		$	63,988	$	312,838	$	5,847		$	—		$	(3,071	)	$	1,242,879
Direct operating expenses	664,745			11,574		101,733		279			—			(3,070		)	775,261
Selling, general and administrative expenses	228,580			19,458		130,037		5,233			—			—			383,308
Depreciation and amortization	46,442			6,510		26,537		109			935			(1		)	80,532
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	$	389		$	—	$	2,682	$	—		$	—		$	(3,071	)	$	—
Capital expenditures	$	33,642		$	505	$	25,452	$	146		$	4,122		$	—		$	63,867