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, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Property, Plant, and Equipment and Intangible Assets

Property, Plant and Equipment, Net

Property, plant and equipment includes expenditures for the construction of new venues, major renovations to existing buildings or buildings that are being added to our venue network, the development of new ticketing tools and technology enhancements along with the renewal and improvement of existing venues and technology systems, web development and administrative offices.

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


	September 30, 2024		December 31, 2023
	(in thousands)
Land, buildings and improvements	$	2,243,158	$	2,043,595
Computer equipment and capitalized software	926,193		888,065
Furniture and other equipment	744,635		646,966
Construction in progress	399,353		317,028
Property, plant and equipment, gross	4,313,339		3,895,654
Less: accumulated depreciation	1,937,471		1,794,191
Property, plant and equipment, net	$	2,375,868	$	2,101,463

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, 2024:


	Revenue- generating contracts		Client / vendor relationships		Venue management		Trademarks and naming rights		Technology and Other (1)		Total
	(in thousands)
Balance as of December 31, 2023:
Gross carrying amount	$	925,257	$	583,436	$	226,788	$	183,493	$	20,220	$	1,939,194
Accumulated amortization	(336,625)		(251,649)		(79,218)		(104,036)		(6,045)		(777,573)
Net	588,632		331,787		147,570		79,457		14,175		1,161,621
Gross carrying amount:
Acquisitions and additions—current year	68,453		48,937		1,256		3,000		7,939		129,585
Acquisitions and additions—prior year	826		4,066		453		(2)		—		5,343

Foreign exchange	(58,063)		(16,985)		(2,191)		(8,810)		(94)		(86,143)
Other (2)	(15,575)		(20,132)		(23,930)		(3,213)		(823)		(63,673)
Net change	(4,359)		15,886		(24,412)		(9,025)		7,022		(14,888)
Accumulated amortization:
Amortization	(82,677)		(64,266)		(17,887)		(13,585)		(6,535)		(184,950)

Foreign exchange	15,438		4,612		107		2,521		(12)		22,666
Other (2)	15,575		20,132		24,032		2,863		936		63,538
Net change	(51,664)		(39,522)		6,252		(8,201)		(5,611)		(98,746)
Balance as of September 30, 2024:
Gross carrying amount	920,898		599,322		202,376		174,468		27,242		1,924,306
Accumulated amortization	(388,289)		(291,171)		(72,966)		(112,237)		(11,656)		(876,319)
Net	$	532,609	$	308,151	$	129,410	$	62,231	$	15,586	$	1,047,987

(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 festival promotion business, an artist management business and a concert promotion company, all located in the United States.

The 2024 acquisitions and additions to definite-lived intangible assets had weighted-average lives as follows:


			Weighted- Average Life (years)
Revenue-generating contracts			9
Client/vendor relationships			5
Trademarks and naming rights			10

Venue management			3
Technology			3

All categories			7

Amortization of definite-lived intangible assets for the three months ended September 30, 2024 and 2023 was $61.3 million and $63.4 million, respectively, and for the nine months ended September 30, 2024 and 2023 was $185.0 million and $176.1 million, respectively. As acquisitions and dispositions occur in the future and the valuations of intangible assets for recent acquisitions are completed, amortization expense may 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, 2024:


	Concerts		Ticketing		Sponsorship & Advertising		Total
	(in thousands)
Balance as of December 31, 2023:
Goodwill	$	1,439,579	$	1,012,530	$	674,720	$	3,126,829
Accumulated impairment losses	(435,363)		—		—		(435,363)
Net	1,004,216		1,012,530		674,720		2,691,466

Acquisitions—current year	25,797		507		1,015		27,319
Acquisitions—prior year	4,136		—		—		4,136


Foreign exchange	911		(31,056)		(22,768)		(52,913)

Balance as of September 30, 2024:
Goodwill	1,470,423		981,981		652,967		3,105,371
Accumulated impairment losses	(435,363)		—		—		(435,363)
Net	$	1,035,060	$	981,981	$	652,967	$	2,670,008

Included in the current year acquisitions amounts above are goodwill primarily associated with the acquisitions of a festival promotion business, an artist management business and a concert promotion company, all located in the United States.

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, 2024 and December 31, 2023, we had investments in nonconsolidated affiliates of $514.9 million and $447.5 million, respectively, included in other long-term assets on our consolidated balance sheets.