Quarterly report pursuant to Section 13 or 15(d)

STOCKHOLDERS' EQUITY

v2.4.0.6
STOCKHOLDERS' EQUITY
 3 Months Ended
Mar. 31, 2012
STOCKHOLDERS' EQUITY [Abstract]  
STOCKHOLDERS' EQUITY
NOTE 8-STOCKHOLDERS' EQUITY
 
Noncontrolling Interests
 
As of March 31, 2012, for the non-wholly-owned subsidiaries of the Company, where the common securities held by the noncontrolling interests do not include put arrangements exercisable outside of the control of the Company, such noncontrolling interests are recorded in stockholders' equity, separate from the Company's own equity.
 
Redeemable Noncontrolling Interests
 
The Company owns a 50% controlling interest in BigChampagne and is subject to fixed price put arrangements whereby the noncontrolling interest holders can require the Company to repurchase their shares of BigChampagne at two future specified time periods, one beginning in November 2012 and one beginning in December 2013. The redemption amount is reflected in the Company's March 31, 2012 and December 31, 2011 balance sheets as redeemable noncontrolling interests. As the amounts that will be paid at exercise are fixed in nature, the redemption amount does not change and, as such, there will be no changes recorded until the puts are exercised or expire.
 
In addition, the common stock of certain of the Company's subsidiaries held by noncontrolling interests includes put arrangements. The put arrangements are redeemable at future specified dates and exercisable by the counterparty at fair value, or pursuant to the terms of the respective agreement, outside of the control of the Company.
 
The following table shows the reconciliation of the carrying amount of redeemable noncontrolling interests, total stockholders' equity, stockholders' equity attributable to Live Nation Entertainment, Inc. and stockholders' equity attributable to noncontrolling interests:
 
 
Redeemable
 
 
Live Nation
 
 
 
 
 
 
 
 
Total
 
 
Noncontrolling
 
 
Entertainment, Inc.
 
 
Noncontrolling
 
 
Comprehensive
 
 
Stockholders'
 
 
Interests
 
 
Stockholders' Equity
 
 
Interests
 
 
Income (Loss)
 
 
Equity
 
 
(in thousands)
 
 
(in thousands)
 
Balances at December 31, 2011
 
$
8,277
 
 
$
1,461,103
 
 
$
155,791
 
 
$
-
 
 
$
1,616,894
 
Non-cash and stock-based compensation
 
 
-
 
 
 
6,077
 
 
 
-
 
 
 
 
 
 
 
6,077
 
Exercise of stock options
 
 
-
 
 
 
408
 
 
 
-
 
 
 
 
 
 
 
408
 
Acquisitions of noncontrolling  interests
 
 
-
 
 
 
452
 
 
 
(498
 )
 
 
 
 
 
 
(46
 )
Redeemable noncontrolling interests  fair value adjustments
 
 
81
 
 
 
(81
 )
 
 
-
 
 
 
 
 
 
 
(81
 )
Noncontrolling interests contributions
 
 
-
 
 
 
-
 
 
 
130
 
 
 
 
 
 
 
130
 
Cash dividends, net of tax
 
 
-
 
 
 
-
 
 
 
(3,226
 )
 
 
 
 
 
 
(3,226
 )
Other
 
 
735
 
 
 
-
 
 
 
(21
 )
 
 
 
 
 
 
(21
 )
Comprehensive income (loss):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net loss
 
 
(269
 )
 
 
(69,150
 )
 
 
(809
 )
 
 
(69,959
 )
 
 
(69,959
 )
Unrealized loss on cash flow hedges
 
 
-
 
 
 
(5
 )
 
 
-
 
 
 
(5
 )
 
 
(5
 )
Currency translation adjustment
 
 
-
 
 
 
25,323
 
 
 
-
 
 
 
25,323
 
 
 
25,323
 
Total comprehensive loss
 
 
 
 
 
 
 
 
 
 
 
 
 
$
(44,641
 )
 
 
(44,641
 )
Balances at March 31, 2012
 
$
8,824
 
 
$
1,424,127
 
 
$
151,367
 
 
 
 
 
 
$
1,575,494
 
 
The purchase or sale of additional ownership in an already controlled subsidiary is recorded as an equity transaction with no gain or loss recognized in consolidated net income or comprehensive income. In the first quarter of 2011, the Company acquired the remaining equity interests in Front Line and other smaller companies. There were no significant acquisitions of noncontrolling interests during the first quarter of 2012. The following schedule reflects the change in ownership interests for these transactions.
 
 
Three Months Ended
 
 
March 31,
 
 
2012
 
 
2011
 
 
(in thousands)
 
Net loss attributable to Live Nation Entertainment, Inc.
 
$
(69,150
 )
 
$
(48,460
 )
Transfers from noncontrolling interest:
 
 
 
 
 
 
 
 
Increase in Live Nation Entertainment, Inc.'s paid in capital for  purchase of noncontrolling interests, net of transaction costs
 
 
452
 
 
 
68,684
 
Net transfers from noncontrolling interest
 
 
452
 
 
 
68,684
 
Change from net income (loss) attributable to Live Nation Entertainment, Inc. and transfers from noncontrolling interests
 
$
(68,698
 )
 
$
20,224
 
 
Earnings per Share
 
The following table sets forth the computation of basic and diluted net income (loss) per common share:
 
Three Months Ended
March 31,
2012
2011
(in thousands, except for per share data)
Net loss attributable to Live Nation Entertainment, Inc.- basic and diluted
$
(69,150
 )
$
(48,460
 )
Weighted average common shares-basic
186,522
176,293
Effect of dilutive securities:
Stock options, restricted stock and warrants
-
-
2.875% convertible senior notes
-
-
Weighted average common shares-diluted
186,522
176,293
Basic and diluted net loss per common share
$
(0.37
 )
$
(0.27
 )
 
The calculation of diluted net loss per common share includes the effects of the assumed exercise of any outstanding stock options and warrants, the assumed vesting of shares of restricted stock awards and units and the assumed conversion of the 2.875% convertible senior notes where dilutive. The following table shows securities excluded from the calculation of diluted net loss per common share because such securities are anti-dilutive:
 
Three Months Ended
 
 
March 31,
 
 
2012
 
 
2011
 
 
(in thousands)
 
Options to purchase shares of common stock
 
 
21,509
 
 
 
20,085
 
Restricted stock awards and units - unvested
 
 
4,000
 
 
 
3,284
 
Warrants
 
 
500
 
 
 
500
 
Conversion shares related to 2.875% convertible senior notes
 
 
8,105
 
 
 
8,105
 
Number of anti-dilutive potentially issuable shares excluded  from diluted common shares outstanding
34,114
31,974