Quarterly report pursuant to Section 13 or 15(d)

SEGMENTS AND REVENUE RECOGNITION (Tables)

v3.24.3
SEGMENTS AND REVENUE RECOGNITION (Tables)
 9 Months Ended
Sep. 30, 2024
Segment Reporting [Abstract]  
Schedule of Segment Reporting Information, by Segment
The following table presents the results of operations for our reportable segments for the three and nine months ended September 30, 2024 and 2023:
Concerts Ticketing Sponsorship
& Advertising		 Other & Eliminations Corporate Consolidated
(in thousands)
Three Months Ended September 30, 2024
Revenue $ 6,580,595 $ 693,704 $ 390,345 $ (13,557) $ —  $ 7,651,087 
% of Consolidated Revenue 86.0% 9.1% 5.1% (0.2)%
Intersegment revenue $ 7,268 $ 6,289 $ — $ (13,557) $ —  $ — 
AOI $ 474,053 $ 235,704 $ 275,329 $ (7,073) $ (68,182) $ 909,831 
Three Months Ended September 30, 2023
Revenue (1)
$ 6,971,830 $ 837,624 $ 366,822 $ (21,713) $ —  $ 8,154,563 
% of Consolidated Revenue 85.5% 10.3% 4.5% (0.3)%
Intersegment revenue $ 5,698 $ 9,501 $ — $ (15,199) $ —  $ — 
AOI (2)
$ 340,904 $ 351,574 $ 250,265 $ (6,818) $ (64,736) $ 871,189 
Nine Months Ended September 30, 2024
Revenue $ 14,447,009 $ 2,147,559 $ 913,856 $ (34,392) $ —  $ 17,474,032 
% of Consolidated Revenue 82.7% 12.3% 5.2% (0.2)%
Intersegment revenue $ 19,671 $ 14,546 $ 175 $ (34,392) $ —  $ — 
AOI $ 742,936 $ 812,352 $ 627,926 $ (22,453) $ (172,192) $ 1,988,569 
Nine Months Ended September 30, 2023
Revenue (1)
$ 13,886,333 $ 2,219,667 $ 839,799 $ (38,163) $ —  $ 16,907,636 
% of Consolidated Revenue 82.1% 13.1% 5.0% (0.2)%
Intersegment revenue $ 9,896 $ 12,681 $ — $ (22,577) $ —  $ — 
AOI (2)
$ 504,694 $ 904,014 $ 548,935 $ (32,899) $ (160,544) $ 1,764,200 
(1) Prior period revenue was restated as further discussed in Note 9 – Correction of Errors in Previously Reported Consolidated Financial Statements. For the three and nine months ended September 30, 2023, the restatement decreased our Concerts segment revenue by $2.5 million and $2.5 million, respectively. For the three months ended September 30, 2023, the restatement increased our Ticketing segment revenue by $5.0 million.
(2) Prior period AOI was restated as further discussed in Note 9 – Correction of Errors in Previously Reported Consolidated Financial Statements. For the nine months ended September 30, 2023, the restatement decreased our Concerts segment AOI by $5.1 million. For the three and nine months ended September 30, 2023, the restatement increased our Ticketing segment AOI by $35.1 million and $23.8 million, respectively.
Reconciliation of AOI to Operating Income (Loss)
The following table sets forth the reconciliation of consolidated AOI to operating income for the three and nine months ended September 30, 2024 and 2023:
Three Months Ended September 30, Nine Months Ended September 30,
2024 2023 2024 2023
(in thousands)
AOI (1)
$ 909,831  $ 871,189  $ 1,988,569  $ 1,764,200 
Acquisition expenses 94,565  40,968  95,087  79,108 
Amortization of non-recoupable ticketing contract advances 16,996  16,921  62,237  58,518 
Depreciation and amortization 137,001  130,653  407,324  382,352 
Gain on sale of operating assets (3,968) (1,583) (5,398) (8,092)
Astroworld estimated loss contingencies —  —  279,915  — 
Stock-based compensation expense 25,712  30,572  85,450  85,905 
Operating income (1)
$ 639,525  $ 653,658  $ 1,063,954  $ 1,166,409 
(1) For the three and nine months ended September 30, 2023, the restatement increased our AOI and operating income by $35.1 million and $18.7 million, respectively. See further discussion in Note 9 – Correction of Errors in Previously Reported Consolidated Financial Statements.
Contract with Customer, Asset and Liability
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 nine months ended September 30, 2024 and 2023:
Three Months Ended
September 30,		 Nine Months Ended
September 30,
2024 2023 2024 2023
(in thousands)
Concerts $ 1,032,868  $ 814,504  $ 2,885,696  $ 2,629,546 
Ticketing 50,140  37,124  165,463  133,365 
Sponsorship & Advertising 6,626  17,432  93,300  125,359 
$ 1,089,634  $ 869,060  $ 3,144,459  $ 2,888,270