Quarterly report pursuant to Section 13 or 15(d)

SEGMENT DATA

 v2.3.0.11
SEGMENT DATA
 6 Months Ended
Jun. 30, 2011
SEGMENT DATA (Tables) [Abstract]  
SEGMENT DATA
NOTE 11-SEGMENT DATA
 
The Company's reportable segments are Concerts, Ticketing, Artist Nation, eCommerce and Sponsorship.
 
The Concerts segment involves the promotion of live music events globally in the Company's owned and/or operated venues and in rented third-party venues, the production of music festivals and the operation and management of music venues and is the aggregation of the Company's North American Concerts and International Concerts operating segments. The Ticketing segment involves the management of the Company's global ticketing operations including providing ticketing software and services to clients and is the aggregation of the Company's North American Ticketing and International Ticketing operating segments. The Artist Nation segment provides management services to artists and other services including merchandise, artist fan sites and VIP tickets and is the aggregation of the Company's Artist Management and Artist Services operating segments. The eCommerce segment provides online access for customers relating to ticket and event information and is responsible for the Company's primary websites, www.livenation.com and www.ticketmaster.com. The Sponsorship segment manages the development of strategic sponsorship programs in addition to the sale of international, national and local sponsorships and placement of advertising including signage and promotional programs.
 
The Company has reclassified all periods presented to conform to the current period presentation. Certain of the line items for the three and six months ended June 30, 2010 have been recast from the amounts that were previously reported in the Company's Form 10-Q for the period ending June 30, 2010. These recast amounts relate to purchase accounting adjustments and, pursuant to the FASB guidance, are required to be reflected in the period of the respective business combinations. Specifically, they relate to a non-cash gain on the settlement of a pre-existing relationship with LN-Haymon, an acquisition that occurred in the second quarter of 2010, that was identified in the third quarter of 2010, and purchase accounting adjustments relating to the Merger, which occurred in the first quarter of 2010, that were identified in the subsequent quarters of 2010.
 
Revenue and expenses earned and charged between segments are eliminated in consolidation. Corporate expenses and all line items below operating income (loss) are managed on a total company basis.
 
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 disclosed.
               
Artist
                                      
 
  
Concerts
    
Ticketing
    
Nation
    
eCommerce
    
Sponsorship
    
Other
    
Corporate
    
Eliminations
    
Consolidated
  
   
(in thousands)
  
Three Months Ended June 30, 2011
                                                  
Revenue
   $ 1,082,229     $ 283,828     $ 118,430     $ 37,369     $ 49,627     $ 807     $ 1     $ (13,409 )   $ 1,558,882  
Direct operating expenses
     921,480       134,291       81,386       6,242       9,669       -       (1,713 )     (13,204 )     1,138,151  
Selling, general and administrative expenses
     142,315       78,855       21,609       16,032       7,481       503       -       -       266,795  
Depreciation and amortization
     28,302       31,976       13,131       3,177       89       13       444       (205 )     76,927  
Loss (gain) on sale of operating assets
     (678 )     (76 )     -       -       -       94       -       -       (660 )
Corporate expenses
     -       -       -       -       -       -       24,590       -       24,590  
Acquisition transaction expenses
     (1,261 )     682       (2,774 )     -       -       -       4,059       -       706  
Operating income (loss)
   $ (7,929 )   $ 38,100     $ 5,078     $ 11,918     $ 32,388     $ 197     $ (27,379 )   $ -     $ 52,373  
Intersegment revenue
   $ 7,351     $ -     $ 5,718     $ 340     $ -     $ -     $ -     $ (13,409 )   $ -  
                                                                         
Three Months Ended June 30, 2010
                                                                  
Revenue
   $ 859,511     $ 264,421     $ 88,672     $ 18,895     $ 38,825     $ 974     $ -     $ (4,563 )   $ 1,266,735  
Direct operating expenses
     706,079       128,910       55,907       4,128       5,902       -       (1,124 )     (3,519 )     896,283  
Selling, general and administrative expenses
     131,257       77,016       25,476       12,190       6,445       515       -       -       252,899  
Depreciation and amortization
     21,753       32,125       10,426       431       62       8       547       (1,044 )     64,308  
Loss (gain) on sale of operating assets
     (1,282 )     646       (1 )     -       -       -       -       -       (637 )
Corporate expenses
     -       -       -       -       -       -       21,882       -       21,882  
Acquisition transaction expenses
     161       -       4,734       -       -       -       1,499       -       6,394  
Operating income (loss)
   $ 1,543     $ 25,724     $ (7,870 )   $ 2,146     $ 26,416     $ 451     $ (22,804 )   $ -     $ 25,606  
Intersegment revenue
   $ 1,459     $ 365     $ 2,739     $ -     $ -     $ -     $ -     $ (4,563 )   $ -  
                                                                         
                                                                         
Six Months Ended June 30, 2011
                                                                  
Revenue
   $ 1,531,499     $ 580,165     $ 172,566     $ 66,816     $ 74,423     $ 1,606     $ 333     $ (19,117 )   $ 2,408,291  
Direct operating expenses
     1,287,634       274,175       116,267       11,049       15,864       -       (1,002 )     (18,712 )     1,685,275  
Selling, general and administrative expenses
     268,616       155,965       68,915       30,031       15,177       1,060       -       -       539,764  
Depreciation and amortization
     54,715       66,940       26,612       5,465       188       27       866       (405 )     154,408  
Loss (gain) on sale of operating assets
     (690 )     (91 )     1,241       5       -       170       -       -       635  
Corporate expenses
     -       -       -       -       -       -       45,626       -       45,626  
Acquisition transaction expenses
     (6,115 )     951       (2,182 )     -       -       -       9,717       -       2,371  
Operating income (loss)
   $ (72,661 )   $ 82,225     $ (38,287 )   $ 20,266     $ 43,194     $ 349     $ (54,874 )   $ -     $ (19,788 )
Intersegment revenue
   $ 7,812     $ 3,703     $ 6,972     $ 630     $ -     $ -     $ -     $ (19,117 )   $ -  
Capital expenditures
   $ 10,852     $ 24,752     $ 2,294     $ 2,763     $ 92     $ -     $ 3,895     $ -     $ 44,648  
                                                                         
Six Months Ended June 30, 2010
                                                                  
Revenue
   $ 1,267,620     $ 473,547     $ 158,268     $ 36,979     $ 60,062     $ 1,914     $ -     $ (8,294 )   $ 1,990,096  
Direct operating expenses
     1,033,855       231,567       105,231       6,378       12,036       -       (778 )     (7,250 )     1,381,039  
Selling, general and administrative expenses
     256,104       146,577       46,603       20,580       13,364       1,267       -       -       484,495  
Depreciation and amortization
     50,156       55,675       17,662       3,084       121       13       1,274       (1,044 )     126,941  
Loss (gain) on sale of
                                                                        
operating assets
     (1,269 )     5,205       (1 )     -       6       (7 )     -       -       3,934  
Corporate expenses
     -       -       -       -       -       -       59,006       -       59,006  
Acquisition transaction expenses
     145       -       4,734       -       -       -       10,532       -       15,411  
Operating income (loss)
   $ (71,371 )   $ 34,523     $ (15,961 )   $ 6,937     $ 34,535     $ 641     $ (70,034 )   $ -     $ (80,730 )
Intersegment revenue
   $ 3,957     $ 365     $ 3,962     $ -     $ 10     $ -     $ -     $ (8,294 )    $ -  
Capital expenditures
   $ 10,061     $ 16,880     $ 95     $ 726     $ 48     $ 175     $ 1,831     $ -     $ 29,816