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, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Property, Plant, and Equipment and Intangible Assets

LONG-LIVED ASSETS, INTANGIBLES, AND GOODWILL

Property, Plant and Equipment, Net

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


	September 30, 2023		December 31, 2022
	(in thousands)
Land, buildings and improvements	$	1,987,508	$	1,648,488
Computer equipment and capitalized software	870,881		910,793
Furniture and other equipment	573,239		535,719
Construction in progress	281,862		244,618
Property, plant and equipment, gross	3,713,490		3,339,618
Less: accumulated depreciation	1,757,584		1,851,955
Property, plant and equipment, net	$	1,955,906	$	1,487,663

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, 2023:


	Client / vendor relationships		Revenue- generating contracts		Venue management and leaseholds		Trademarks and naming rights		Technology and Other (1)		Total
	(in thousands)
Balance as of December 31, 2022:
Gross carrying amount	$	563,210	$	824,785	$	148,022	$	188,596	$	35,736	$	1,760,349
Accumulated amortization	(209,518)		(316,581)		(58,588)		(97,931)		(27,109)		(709,727)
Net	353,692		508,204		89,434		90,665		8,627		1,050,622
Gross carrying amount:
Acquisitions and additions—current year	47,478		51,369		77,074		—		21,789		197,710
Acquisitions and additions—prior year	619		(1,830)		(11)		—		—		(1,222)

Foreign exchange	8,582		38,841		1,166		5,560		(429)		53,720
Other (2)	(16,527)		(53,926)		(583)		(13,625)		(37,015)		(121,676)
Net change	40,152		34,454		77,646		(8,065)		(15,655)		128,532
Accumulated amortization:
Amortization	(59,064)		(73,939)		(15,540)		(13,912)		(13,680)		(176,135)

Foreign exchange	223		(1,079)		107		(446)		(368)		(1,563)
Other (2)	16,301		53,926		650		13,781		37,037		121,695
Net change	(42,540)		(21,092)		(14,783)		(577)		22,989		(56,003)
Balance as of September 30, 2023:
Gross carrying amount	603,362		859,239		225,668		180,531		20,081		1,888,881
Accumulated amortization	(252,058)		(337,673)		(73,371)		(98,508)		(4,120)		(765,730)
Net	$	351,304	$	521,566	$	152,297	$	82,023	$	15,961	$	1,123,151

(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 and additions amounts above are definite-lived intangible assets primarily associated with the acquisitions of certain venue and artist management businesses located in the United States, a promoter business in South America, as well as additions for music publishing rights.

The 2023 acquisitions and additions to definite-lived intangible assets had weighted-average lives as follows:


			Weighted- Average Life (years)
Revenue-generating contracts			6
Client/vendor relationships			5


Venue management and leaseholds			13
Technology (1)			3

All categories			8

_____________________

(1) The weighted average life of technology intangibles does not include purchased software licenses that are typically amortized over 1 to 3 years.

Amortization of definite-lived intangible assets for the three months ended September 30, 2023 and 2022 was $63.4 million and $48.1 million, respectively, and for the nine months ended September 30, 2023 and 2022 was $176.1 million and $150.4 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, 2023:


	Concerts		Ticketing		Sponsorship & Advertising		Total
	(in thousands)
Balance as of December 31, 2022:
Goodwill	$	1,349,426	$	979,742	$	635,575	$	2,964,743
Accumulated impairment losses	(435,363)		—		—		(435,363)
Net	914,063		979,742		635,575		2,529,380

Acquisitions—current year	90,765		—		—		90,765
Acquisitions—prior year	233		143		—		376

Dispositions	(6,183)		—		—		(6,183)
Foreign exchange	(1,444)		22,127		18,505		39,188

Balance as of September 30, 2023:
Goodwill	1,432,797		1,002,012		654,080		3,088,889
Accumulated impairment losses	(435,363)		—		—		(435,363)
Net	$	997,434	$	1,002,012	$	654,080	$	2,653,526

Included in the current year acquisitions amounts above is goodwill primarily associated with the acquisitions of certain venue and artist management businesses located in the United States and Europe as well as a promoter business in South America.

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, 2023 and December 31, 2022, we had investments in nonconsolidated affiliates of $427.9 million and $408.8 million, respectively, included in other long-term assets on our consolidated balance sheets.