Quarterly report pursuant to Section 13 or 15(d)

SEGMENTS AND REVENUE RECOGNITION

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SEGMENTS AND REVENUE RECOGNITION
 6 Months Ended
Jun. 30, 2024
Segment Reporting [Abstract]  
SEGMENTS AND REVENUE RECOGNITION SEGMENTS AND REVENUE RECOGNITION
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 acquisition expenses (including ongoing legal costs stemming from the Ticketmaster merger, changes in the fair value of accrued acquisition-related contingent consideration obligations, and acquisition-related severance and compensation), amortization of non-recoupable ticketing contract advances, depreciation and amortization (including goodwill impairment), loss (gain) on disposal of operating assets, and stock-based compensation expense. We also exclude from AOI the impact of estimated or realized liabilities for settlements or damages arising out of the Astroworld matter that exceed our estimated insurance recovery, due to the significant and non-recurring nature of the matter. Ongoing legal costs associated with defense of these claims, such as attorney fees, are not excluded from AOI. 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. Our capital expenditures below include accruals for amounts incurred but not yet paid for, but are not reduced by reimbursements received from outside parties such as landlords and noncontrolling interest partners or replacements funded by insurance proceeds.
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 six months ended June 30, 2024 and 2023:
Concerts Ticketing Sponsorship
& Advertising		 Other & Eliminations Corporate Consolidated
(in thousands)
Three Months Ended June 30, 2024
Revenue $ 4,987,039 $ 730,677 $ 312,234 $ (6,534) $ —  $ 6,023,416 
% of Consolidated Revenue 82.8% 12.1% 5.2% (0.1)%
Intersegment revenue $ 2,278 $ 4,124 $ 132 $ (6,534) $ —  $ — 
AOI $ 270,694 $ 292,533 $ 222,622 $ (8,171) $ (61,447) $ 716,231 
Three Months Ended June 30, 2023
Revenue $ 4,633,291 $ 709,342 $ 302,859 $ (14,769) $ —  $ 5,630,723 
% of Consolidated Revenue 82.3% 12.6% 5.4% (0.3)%
Intersegment revenue $ 3,300 $ 2,397 $ — $ (5,697) $ —  $ — 
AOI $ 168,058 $ 292,685 $ 203,139 $ (18,142) $ (56,043) $ 589,697 
Six Months Ended June 30, 2024
Revenue $ 7,866,414 $ 1,453,855 $ 523,511 $ (20,835) $ —  $ 9,822,945 
% of Consolidated Revenue 80.1% 14.8% 5.3% (0.2)%
Intersegment revenue $ 12,403 $ 8,257 $ 175 $ (20,835) $ —  $ — 
AOI $ 273,766 $ 576,648 $ 352,597 $ (15,380) $ (104,010) $ 1,083,621 
Six Months Ended June 30, 2023
Revenue $ 6,914,503 $ 1,387,083 $ 472,977 $ (16,450) $ —  $ 8,758,113 
% of Consolidated Revenue 78.9% 15.8% 5.4% (0.1)%
Intersegment revenue $ 4,198 $ 3,180 $ — $ (7,378) $ —  $ — 
AOI $ 168,890 $ 563,736 $ 298,670 $ (26,081) $ (95,808) $ 909,407 
The following table sets forth the reconciliation of consolidated AOI to operating income for the three and six months ended June 30, 2024 and 2023:
Three Months Ended June 30, Six Months Ended June 30,
2024 2023 2024 2023
(in thousands)
AOI $ 716,231  $ 589,697  $ 1,083,621  $ 909,407 
Acquisition expenses (30,035) 24,829  522  38,140 
Amortization of non-recoupable ticketing contract advances 21,161  21,234  45,241  41,597 
Depreciation and amortization 137,729  136,514  270,323  251,699 
Gain on sale of operating assets (779) (7,013) (1,430) (6,509)
Astroworld estimated loss contingencies 94,000  —  279,915  — 
Stock-based compensation expense 28,336  27,762  59,738  55,333 
Operating income $ 465,819  $ 386,371  $ 429,312  $ 529,147 

Contract Advances
At June 30, 2024 and December 31, 2023, we had ticketing contract advances of $122.0 million and $143.9 million, respectively, recorded in prepaid expenses and $122.0 million and $135.6 million, respectively, recorded in long-term advances on the consolidated balance sheets.
Sponsorship Agreements
At June 30, 2024, we had contracted sponsorship agreements with terms greater than one year that had approximately $1.7 billion of revenue related to future benefits to be provided by us. We expect to recognize, based on current projections, approximately 24%, 30%, 23% and 23% of this revenue in the remainder of 2024, 2025, 2026 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.
The table below summarizes the amount of the preceding December 31 current deferred revenue recognized during the three and six months ended June 30, 2024 and 2023:
Three Months Ended
June 30,		 Six Months Ended
June 30,
2024 2023 2024 2023
(in thousands)
Concerts $ 1,195,678  $ 1,133,662  $ 1,852,828  $ 1,815,042 
Ticketing 60,513  61,641  115,323  96,241 
Sponsorship & Advertising 40,188  57,247  86,674  107,927 
$ 1,296,379  $ 1,252,550  $ 2,054,825  $ 2,019,210