Quarterly report pursuant to Section 13 or 15(d)

SEGMENTS AND REVENUE RECOGNITION

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SEGMENTS AND REVENUE RECOGNITION
 9 Months Ended
Sep. 30, 2023
Segment Reporting [Abstract]  
SEGMENTS AND REVENUE RECOGNITION SEGMENTS AND REVENUE RECOGNITION
For the nine months ended September 30, 2023 and 2022, our reportable segments are Concerts, Ticketing and Sponsorship & Advertising. We use AOI to evaluate the performance of our operating segments and define AOI as operating income (loss) before certain stock-based compensation expense, loss (gain) on disposal of operating assets, depreciation and amortization (including goodwill impairment), amortization of non-recoupable ticketing contract advances and acquisition expenses (including transaction costs, changes in the fair value of accrued acquisition-related contingent consideration obligations, and acquisition-related severance and compensation). AOI assists investors by allowing them to evaluate changes in the operating results of our portfolio of businesses separate from non-operational factors that affect net income (loss), thus providing insights into both operations and the other factors that affect reported results.
Revenue and expenses earned and charged between segments are eliminated in consolidation.
We manage our working capital on a consolidated basis. Accordingly, segment assets are not reported to, or used by, our management to allocate resources to or assess performance of our segments, and therefore, total segment assets and related depreciation and amortization have not been presented.
The following table presents the results of operations for our reportable segments for the three and nine months ended September 30, 2023 and 2022:
Concerts Ticketing Sponsorship
& Advertising		 Other & Eliminations Corporate Consolidated
(in thousands)
Three Months Ended September 30, 2023
Revenue $ 6,974,326 $ 832,584 $ 366,822 $ (21,713) $ —  $ 8,152,019 
% of Consolidated Revenue 85.6% 10.2% 4.5% (0.3)%
Intersegment revenue $ 5,698 $ 9,501 $ — $ (15,199) $ —  $ — 
AOI $ 340,904 $ 316,448 $ 250,265 $ (6,818) $ (64,736) $ 836,063 
Three Months Ended September 30, 2022
Revenue $ 5,292,594 $ 531,570 $ 343,029 $ (13,658) $ —  $ 6,153,535 
% of Consolidated Revenue 86.0% 8.6% 5.6% (0.2)%
Intersegment revenue $ 4,408 $ 9,748 $ — $ (14,156) $ —  $ — 
AOI $ 280,809 $ 163,176 $ 226,234 $ (3,420) $ (46,081) $ 620,718 
Nine Months Ended September 30, 2023
Revenue $ 13,888,829 $ 2,219,667 $ 839,799 $ (38,163) $ —  $ 16,910,132 
% of Consolidated Revenue 82.1% 13.1% 5.0% (0.2)%
Intersegment revenue $ 9,896 $ 12,681 $ — $ (22,577) $ —  $ — 
AOI $ 509,794 $ 880,184 $ 548,935 $ (32,899) $ (160,544) $ 1,745,470 
Nine Months Ended September 30, 2022
Revenue $ 10,098,180 $ 1,587,274 $ 722,504 $ (17,441) $ —  $ 12,390,517 
% of Consolidated Revenue 81.5% 12.8% 5.8% (0.1)%
Intersegment revenue $ 6,635 $ 12,660 $ — $ (19,295) $ —  $ — 
AOI $ 354,587 $ 600,155 $ 474,238 $ (9,827) $ (109,797) $ 1,309,356 
The following table sets forth the reconciliation of consolidated AOI to operating income for the three and nine months ended September 30, 2023 and 2022:
Three Months Ended September 30, Nine Months Ended September 30,
2023 2022 2023 2022
(in thousands)
AOI $ 836,063  $ 620,718  $ 1,745,470  $ 1,309,356 
Acquisition expenses 40,968  7,495  79,108  29,115 
Amortization of non-recoupable ticketing contract advances 16,921  15,729  58,518  56,121 
Depreciation and amortization 130,653  102,093  382,352  318,489 
Gain on disposal of operating assets (1,583) (35,285) (8,092) (32,555)
Stock-based compensation expense 30,572  24,437  85,905  86,178 
Operating income $ 618,532  $ 506,249  $ 1,147,679  $ 852,008 

Contract Advances
At September 30, 2023 and December 31, 2022, we had ticketing contract advances of $152.1 million and $106.5 million, respectively, recorded in prepaid expenses and $126.4 million and $105.0 million, respectively, recorded in long-term advances on the consolidated balance sheets. We amortized $16.9 million and $15.7 million for the three months ended September 30, 2023 and 2022, respectively, and $58.5 million and $56.1 million for the nine months ended September 30, 2023 and 2022, respectively, related to non-recoupable ticketing contract advances.
Sponsorship Agreements
At September 30, 2023, we had contracted sponsorship agreements with terms greater than one year that had approximately $1.4 billion of revenue related to future benefits to be provided by us. We expect to recognize, based on current projections, approximately 9%, 35%, 25% and 31% of this revenue in the remainder of 2023, 2024, 2025 and thereafter, respectively.
Deferred Revenue
The majority of our deferred revenue is typically classified as current and is shown as a separate line item on the consolidated balance sheets. Deferred revenue that is not expected to be recognized within the next twelve months is classified as long-term and reflected in other long-term liabilities on the consolidated balance sheets. We had current deferred revenue of $3.1 billion and $2.8 billion at December 31, 2022 and 2021, respectively.
The table below summarizes the amount of the preceding December 31 current deferred revenue recognized during the three and nine months ended September 30, 2023 and 2022:
Three Months Ended
September 30,		 Nine Months Ended
September 30,
2023 2022 2023 2022
(in thousands)
Concerts $ 814,504  $ 825,573  $ 2,629,546  $ 2,135,814 
Ticketing 37,124  40,803  133,365  120,543 
Sponsorship & Advertising 17,432  36,703  125,359  128,035 
$ 869,060  $ 903,079  $ 2,888,270  $ 2,384,392