Quarterly report pursuant to Section 13 or 15(d)

LONG-LIVED ASSETS

v3.19.2
LONG-LIVED ASSETS
 6 Months Ended
Jun. 30, 2019
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, 2019:
 
Revenue-
generating
contracts
 
Client /
vendor
relationships
 
Trademarks
and
naming
rights
 
Technology
 
Other (1)
 
Total
 
(in thousands)
Balance as of December 31, 2018:
 
 
 
 
 
 
 
 
Gross carrying amount
$
692,963

 
$
393,772

 
$
123,707

 
$
85,411

 
$
120,163

 
$
1,416,016

Accumulated amortization
(391,002
)
 
(213,599
)
 
(41,808
)
 
(38,826
)
 
(69,330
)
 
(754,565
)
Net
301,961

 
180,173

 
81,899

 
46,585

 
50,833

 
661,451

Gross carrying amount:
 
 
 
 
 
 
 
 
 
 
Acquisitions—current year
103,389

 
22,385

 
1,632

 
7,216

 
54,964

 
189,586

Acquisitions—prior year
—

 
—

 
—

 
—

 
43

 
43

Foreign exchange
(1,231
)
 
270

 
(140
)
 
300

 
158

 
(643
)
Other (2)
(19,709
)
 
(36,671
)
 
75

 
(1,999
)
 
(1,716
)
 
(60,020
)
Net change
82,449

 
(14,016
)
 
1,567

 
5,517

 
53,449

 
128,966

Accumulated amortization:
 
 
 
 
 
 
 
 
 
 
Amortization
(36,466
)
 
(29,930
)
 
(6,758
)
 
(12,902
)
 
(10,667
)
 
(96,723
)
Foreign exchange
604

 
(234
)
 
108

 
(191
)
 
148

 
435

Other (2)
19,239

 
37,119

 
(61
)
 
1,295

 
1,769

 
59,361

Net change
(16,623
)
 
6,955

 
(6,711
)
 
(11,798
)
 
(8,750
)
 
(36,927
)
Balance as of June 30, 2019:
 
 
 
 
 
 
 
 
Gross carrying amount
775,412

 
379,756

 
125,274

 
90,928

 
173,612

 
1,544,982

Accumulated amortization
(407,625
)
 
(206,644
)
 
(48,519
)
 
(50,624
)
 
(78,080
)
 
(791,492
)
Net
$
367,787

 
$
173,112

 
$
76,755

 
$
40,304

 
$
95,532

 
$
753,490


______________
(1) Other primarily includes intangible assets for non-compete, venue management and leasehold agreements.      
(2) Other primarily 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 controlling interests in a festival promotion business located in Brazil that had been accounted for as an equity method investment, venue management businesses located in the United States and Canada and an artist management business located in the United States. Current year acquisitions also included the acquisitions of a venue management business located in
Belgium, a festival promotion business located in the United States and a ticketing business located in Australia.
The 2019 additions to definite-lived intangible assets from acquisitions have weighted-average lives as follows:
 
Weighted-
Average
Life (years)
Revenue-generating contracts
8
Client/vendor relationships
4
Trademarks and naming rights
3
Technology
2
Other
10
All categories
8
Amortization of definite-lived intangible assets for the three months ended June 30, 2019 and 2018 was $49.5 million and $46.4 million, respectively, and for the six months ended June 30, 2019 and 2018 was $96.7 million and $92.2 million, respectively.
The following table presents the Company’s estimate of amortization expense for each of the five succeeding fiscal years for definite-lived intangible assets that exist at June 30, 2019:
 
(in thousands)
July 1 - December 31, 2019
$
100,073

2020
$
169,224

2021
$
130,323

2022
$
101,644

2023
$
85,497



As acquisitions and dispositions occur in the future and the valuations of intangible assets for recent acquisitions are completed, amortization will vary.
Goodwill
The following table presents the changes in the carrying amount of goodwill in each of our reportable segments for the six months ended June 30, 2019:
 
Concerts
 
Ticketing
 
Sponsorship
& Advertising
 
Total
 
(in thousands)
Balance as of December 31, 2018:
 
 
 
 
 
 
 
Goodwill
$
1,094,604

 
$
762,953

 
$
400,749

 
$
2,258,306

Accumulated impairment losses
(435,363
)
 
—

 
—

 
(435,363
)
                 Net
659,241

 
762,953

 
400,749

 
1,822,943

 
 
 
 
 
 
 
 
Acquisitions—current year
42,264

 
3,863

 
51,423

 
97,550

Acquisitions—prior year
5,969

 
—

 
—

 
5,969

Foreign exchange
(486
)
 
(42
)
 
(209
)
 
(737
)
 
 
 
 
 
 
 
 
Balance as of June 30, 2019:
 
 
 
 
 
 
 
Goodwill
1,142,351

 
766,774

 
451,963

 
2,361,088

Accumulated impairment losses
(435,363
)
 
—

 
—

 
(435,363
)
                 Net
$
706,988

 
$
766,774

 
$
451,963

 
$
1,925,725


Included in the current year acquisitions amounts above are goodwill primarily associated with the acquisition of a controlling interest in a festival promotion business located in Brazil that had been accounted for as an equity method
investment and the acquisition of a venue management company located in Belgium.
We are in various stages of finalizing our acquisition accounting for recent acquisitions, which may 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 our allocation between segments.