Quarterly report pursuant to Section 13 or 15(d)

CORRECTION OF ERRORS

v3.24.3
CORRECTION OF ERRORS
 9 Months Ended
Sep. 30, 2024
Accounting Changes and Error Corrections [Abstract]  
Error Correction [Text Block] CORRECTION OF ERRORS IN PREVIOUSLY REPORTED CONSOLIDATED FINANCIAL STATEMENTS
In calculating our income taxes for the three and nine months ended September 30, 2024, we identified errors in our previously issued financial statements for the three and nine months ended September 30, 2023 related to the measurement of income tax expense for certain foreign subsidiaries statutory earnings.
We assessed the materiality of these errors, using both quantitative and qualitative factors, in accordance with the SEC Staff Accounting Bulletin (“SAB”) No. 99 “Materiality” and SAB 108 “Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements” codified in ASC 250 “Accounting Changes and Error Corrections” and concluded these errors (including when aggregated with other errors discussed below) were immaterial to all of the previously issued consolidated financial statements but, if corrected in the current year, would be material to the current year. Under ASC 250, such prior‑year misstatements which, if corrected in the current year would be material to the current year, must be corrected by adjusting the prior‑year financial statements. Correcting prior‑year financial statements for such immaterial errors does not require previously filed reports to be amended.
In addition to the errors related to the income tax provision as noted above, we recorded other errors to correct prior periods as presented below. These errors were not previously recorded, as we concluded that they were immaterial individually and in aggregate to our previously issued consolidated financial statements.
The effects of the error corrections on our consolidated statements of operations, comprehensive income (loss), cash flows and balance sheets are presented in the tables below.
The condensed consolidated statements of stockholders’ equity for the three and nine months ended September 30, 2023 have also been revised to reflect the impacts to net earnings and redeemable noncontrolling interests.
The following table presents the impact of correcting the errors on the affected line items of our consolidated balance sheet as of December 31, 2023:
December 31, 2023
As Reported Adjustments As Revised
(in thousands)
Accounts receivable $ 2,069,054  $ (44,405) $ 2,024,649 
Total current assets 9,577,754  (44,405) 9,533,349 
Total assets 19,074,045  (44,405) 19,029,640 
Accrued expenses 3,006,281  24,531  3,030,812 
Total current liabilities 9,959,903  24,531  9,984,434 
Redeemable noncontrolling interests 893,709  (33,779) 859,930 
Total Live Nation stockholders' equity (17,148) (35,157) (52,305)
Total equity 587,157  (35,157) 552,000 
Total liabilities and equity 19,074,045  (44,405) 19,029,640 
The following table presents the impact of correcting the errors on the affected line items of our consolidated statement of operations for the three months ended September 30, 2023:
Three Months Ended September 30, 2023
As Reported Adjustments As Revised
(in thousands except per share data)
Revenue $ 8,152,019  $ 2,544  $ 8,154,563 
Direct operating expenses 6,330,465  (32,582) 6,297,883 
Operating income 618,532  35,126  653,658 
Income before income taxes 596,555  35,126  631,681 
Income tax expense 55,874  (5,605) 50,269 
Net income 540,681  40,731  581,412 
Net income attributable to noncontrolling interests 57,186  2,746  59,932 
Net income attributable to common stockholders of Live Nation 483,495  37,985  521,480 
Basic net income per common share available to common stockholders of Live Nation 1.85  0.16  2.01 
Diluted net income per common share available to common stockholders of Live Nation 1.78  0.15  1.93 
The following table presents the impact of correcting the errors on the affected line items of our consolidated statement of comprehensive income (loss) for the three months ended September 30, 2023:
Three Months Ended September 30, 2023
As Reported Adjustments As Revised
(in thousands)
Net income $ 540,681  $ 40,731  $ 581,412 
Comprehensive income 493,670  40,731  534,401 
Comprehensive income attributable to noncontrolling interests 57,186  2,746  $ 59,932 
Comprehensive income attributable to common stockholders of Live Nation 436,484  37,985  474,469 
The following table presents the impact of correcting the errors on the affected line items of our consolidated statement of operations for the nine months ended September 30, 2023:
Nine Months Ended September 30, 2023
As Reported Adjustments As Revised
(in thousands except per share data)
Revenue $ 16,910,132  $ (2,496) $ 16,907,636 
Direct operating expenses 12,610,832  (21,226) 12,589,606 
Operating income 1,147,679  18,730  1,166,409 
Income before income taxes 1,037,572  18,730  1,056,302 
Income tax expense 121,362  5,708  127,070 
Net income 916,210  13,022  929,232 
Net income attributable to noncontrolling interests 142,202  (2,797) 139,405 
Net income attributable to common stockholders of Live Nation 774,008  15,819  789,827 
Basic net income per common share available to common stockholders of Live Nation 2.63  0.07  2.70 
Diluted net income per common share available to common stockholders of Live Nation 2.59  0.07  2.66 
The following table presents the impact of correcting the errors on the affected line items of our consolidated statement of comprehensive income (loss) for the nine months ended September 30, 2023:
Nine Months Ended September 30, 2023
As Reported Adjustments As Revised
(in thousands)
Net income $ 916,210  $ 13,022  $ 929,232 
Comprehensive income 1,018,528  13,022  1,031,550 
Comprehensive income attributable to noncontrolling interests 142,202  (2,797) 139,405 
Comprehensive income attributable to common stockholders of Live Nation 876,326  15,819  892,145 
The following table presents the impact of correcting the errors on the affected line items of our consolidated statement of cash flow for the nine months ended September 30, 2023:
Nine Months Ended September 30, 2023
As Reported Adjustments As Revised
(in thousands)
Net income $ 916,210  $ 13,022  $ 929,232 
Increase in accounts receivable (1,014,739) (15,714) (1,030,453)
Increase in accounts payable, accrued expenses and other liabilities 916,619  (13,022) 903,597 
Decrease in deferred revenue (150,487) 7,894  (142,593)
Net cash provided by operating activities 762,441  (7,820) 754,621 
Net increase in cash, cash equivalents and restricted cash 342,988  (7,820) 335,168 
Cash, cash equivalents and restricted cash at beginning of period 5,612,374  7,820  5,620,194