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

Quarterly report pursuant to Section 13 or 15(d)

LONG-LIVED ASSETS

LONG-LIVED ASSETS

9 Months Ended

Sep. 30, 2022

LONG-LIVED ASSETS [Abstract]

LONG-LIVED ASSETS

Property, Plant and Equipment, Net

Property, plant and equipment, net, consisted of the following:


	September 30, 2022		December 31, 2021
	(in thousands)
Land, buildings and improvements	$	1,344,611	$	1,324,278
Computer equipment and capitalized software	877,210		910,581
Furniture and other equipment	478,341		411,403
Construction in progress	169,327		173,865
	2,869,489		2,820,127
Less: accumulated depreciation	1,771,558		1,728,198
	$	1,097,931	$	1,091,929

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 nine months ended September 30, 2022:


	Client / vendor relationships		Revenue- generating contracts		Venue management and leaseholds		Trademarks and naming rights		Technology		Other (1)		Total
	(in thousands)
Balance as of December 31, 2021:
Gross carrying amount	$	576,930	$	593,258	$	232,856	$	180,865	$	37,335	$	10,414	$	1,631,658
Accumulated amortization	(178,725)		(275,909)		(46,929)		(79,349)		(18,375)		(6,033)		(605,320)
Net	398,205		317,349		185,927		101,516		18,960		4,381		1,026,338
Gross carrying amount:
Acquisitions—current year	24,979		23,313		9,978		—		—		1,728		59,998
Acquisitions—prior year	(2,000)		3,600		—		(1,000)		—		—		600

Foreign exchange	(19,427)		(20,331)		(5,053)		(374)		(26)		(897)		(46,108)
Other (2)	(8,716)		(8,097)		(615)		39		(7,489)		(1,211)		(26,089)
Net change	(5,164)		(1,515)		4,310		(1,335)		(7,515)		(380)		(11,599)
Accumulated amortization:
Amortization	(56,711)		(49,762)		(18,475)		(13,214)		(8,386)		(3,821)		(150,369)

Foreign exchange	8,761		12,326		3,476		860		17		259		25,699
Other (2)	8,685		7,719		731		(533)		8,460		2,310		27,372
Net change	(39,265)		(29,717)		(14,268)		(12,887)		91		(1,252)		(97,298)
Balance as of September 30, 2022:
Gross carrying amount	571,766		591,743		237,166		179,530		29,820		10,034		1,620,059
Accumulated amortization	(217,990)		(305,626)		(61,197)		(92,236)		(18,284)		(7,285)		(702,618)
Net	$	353,776	$	286,117	$	175,969	$	87,294	$	11,536	$	2,749	$	917,441

(1) Other primarily includes intangible assets for non-compete agreements.

(2) Other primarily includes netdowns of fully amortized or impaired assets.

Included in the current year acquisitions amounts above are definite-lived intangible assets primarily associated with the acquisitions of a concert promotion business located in Germany, a ticketing business located in Thailand as well as a sports management business and a venue management business, both located in the United States.

The 2022 additions to definite-lived intangible assets from acquisitions have weighted-average lives as follows:


			Weighted- Average Life (years)
Revenue-generating contracts			5
Client/vendor relationships			5


Venue management and leaseholds			30


All categories			9

Amortization of definite-lived intangible assets for the three months ended September 30, 2022 and 2021 was $48.1 million and $46.1 million, and for the nine months ended September 30, 2022 and 2021 was $150.4 million and $146.6 million, respectively. 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 nine months ended September 30, 2022:


	Concerts		Ticketing		Sponsorship & Advertising		Total
	(in thousands)
Balance as of December 31, 2021:
Goodwill	$	1,390,451	$	930,064	$	705,717	$	3,026,232
Accumulated impairment losses	(435,363)		—		—		(435,363)
Net	955,088		930,064		705,717		2,590,869

Acquisitions—current year	34,256		—		—		34,256
Acquisitions—prior year	(22,339)		12,057		1,898		(8,384)

Dispositions	(1,792)		—		—		(1,792)
Foreign exchange	(33,833)		(13,435)		(19,229)		(66,497)

Balance as of September 30, 2022:
Goodwill	1,366,743		928,686		688,386		2,983,815
Accumulated impairment losses	(435,363)		—		—		(435,363)
Net	$	931,380	$	928,686	$	688,386	$	2,548,452

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.

Investments in Nonconsolidated Affiliates

At September 30, 2022 and December 31, 2021, we had investments in nonconsolidated affiliates of $355.6 million and $293.6 million, respectively, included in other long-term assets on our consolidated balance sheets.

During the nine months ended September 30, 2021, we sold certain investments in nonconsolidated affiliates for $101.1 million in cash and noncash consideration resulting in a gain on sale of investments in nonconsolidated affiliates of $83.6 million. During the nine months ended September 30, 2022, there were no significant sales of investments in nonconsolidated affiliates.

We entered into certain agreements whereby we received equity in the counterparty to those agreements primarily in exchange for providing sponsorship and marketing programs and support. We recognized $5.6 million and $25.0 million of noncash additions to investments in nonconsolidated affiliates for the nine months ended September 30, 2022 and 2021, respectively, which are included in other long-term assets on our consolidated balance sheets associated with these agreements.