|3 Months Ended|
Mar. 31, 2012
|LONG-LIVED ASSETS [Abstract]|
NOTE 2-LONG-LIVED ASSETS
Definite-lived Intangible Assets
The Company has definite-lived intangible assets which are amortized over the shorter of either the lives of the respective agreements or the period of time the assets are expected to contribute to the Company's future cash flows. The amortization is recognized on either a straight-line or expected cash flows basis.
The following table presents the changes in the gross carrying amount and accumulated amortization of definite-lived intangible assets for the three months ended March 31, 2012:
During 2012, the Company recorded definite-lived intangible assets totaling $7.9 million, primarily related to revenue-generating contracts associated with the acquisition of the rights to a festival held in Europe.
The 2012 additions to definite-lived intangible assets have weighted average lives as follows:
Amortization expense from definite-lived intangible assets for the three months ended March 31, 2012 and 2011 was $39.9 million and $41.0 million, respectively.
For the three months ended March 31, 2012 and 2011, the Company recorded amortization expense related to nonrecoupable ticketing contract advances of $10.8 million and $7.5 million, respectively.
As acquisitions and dispositions occur in the future, amortization expense may vary.
In 2011, the Company's reportable segments were Concerts, Ticketing, Artist Nation, eCommerce and Sponsorship. Beginning in 2012, the Company will no longer present eCommerce as a reportable segment and has changed the name of its Sponsorship segment to Sponsorship & Advertising. This change was made to be consistent with how the four key components of the business are now being managed in line with its four main businesses. The Company has included the business reported in the eCommerce segment in the prior year between the Ticketing and Sponsorship & Advertising segments. As a result of this change, the goodwill previously associated with the eCommerce reporting unit has been reallocated to the reporting units that make up the Ticketing and Sponsorship & Advertising segments utilizing a fair value approach. When reallocating goodwill as part of a reorganization, the Company allocates goodwill based on the relative fair values similar to that used when a portion of a reporting unit is disposed of. The Company believes a common method used to determine the fair value of a business in its industry is a multiple of AOI. For the period presented, the Company reallocated the goodwill associated with the eCommerce segment using the relative fair values of the business being allocated to the Ticketing and Sponsorship & Advertising segments as a percentage of the total eCommerce segment AOI. Based on this fair value allocation, the goodwill from eCommerce is being allocated to the Ticketing and Sponsorship & Advertising segments. Goodwill related to specific acquisitions was attributed to the respective new reporting units directly (specific allocation).
The following table presents the changes in the carrying amount of goodwill in each of the Company's segments for the three months ended March 31, 2012:
Long-lived Asset Disposals
In January 2012, the Company completed the sale of an amphitheater in Ohio. In January 2011, the Company sold its 50% controlling interest in an artist management company.
The table below summarizes the asset and liability values at the time of disposal and the resulting loss or gain recorded.
Certain agreements relating to disposals of businesses provide for future contingent consideration based on the financial performance of the businesses sold. The Company will record additional amounts related to such contingent consideration, with a corresponding adjustment to gain (loss) on sale of operating assets, if and when it is determinable that the applicable financial performance targets will be met. The aggregate of these contingent considerations, if all existing performance targets are met, would not significantly impact the results of operations of the Company. The last contingency period for which the Company has outstanding contingent consideration is for the year ended December 31, 2013.
The entire disclosure for the aggregate amount of long-lived assets, which may include long-lived assets to be held and used by an entity or disposed, goodwill and intangible assets.
No definition available.