Quarterly report pursuant to Section 13 or 15(d)

STOCK-BASED COMPENSATION

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STOCK-BASED COMPENSATION
 3 Months Ended
Mar. 31, 2012
STOCK-BASED COMPENSATION [Abstract]  
STOCK-BASED COMPENSATION
NOTE 9-STOCK-BASED COMPENSATION
 
The following is a summary of stock-based compensation expense recorded by the Company during the respective periods:
 
 
Three Months Ended
 
 
March 31,
 
 
2012
 
 
2011
 
 
(in thousands)
 
Selling, general and administrative expenses
 
$
3,291
 
 
$
30,472
 
Corporate expenses
 
 
5,688
 
 
 
4,835
 
Total stock-based compensation expense
 
$
8,979
 
 
$
35,307
 
 
In the first quarter of 2011, the Company acquired the remaining equity interests of Front Line. As a result of this acquisition, the Company recorded $24.4 million of stock-based compensation in selling, general and administrative expenses.
 
As of March 31, 2012, there was $64.1 million of total unrecognized compensation cost related to stock-based compensation arrangements for stock options, restricted stock awards and restricted stock units. This cost is expected to be recognized over a weighted-average period of 2.9 years.
 
Azoff Trust Note
 
As part of the Merger, a note was issued to the Azoff Trust in exchange for shares of Ticketmaster's series A convertible redeemable preferred stock held by the Azoff Trust. The note accrues interest equal to 3.0% of the outstanding principal balance and is payable in monthly installments of $0.8 million through October 1, 2013, subject to Mr. Azoff's continued employment with the Company. In the event of a termination of Mr. Azoff's employment with the Company without cause or for good reason or due to death or disability, the note immediately will vest and the balance of the note will be due and paid in a cash lump sum. Upon any other termination of Mr. Azoff's employment, the Azoff Trust will forfeit the balance of the note. For the three months ended March 31, 2012 and 2011, the Company recorded $1.6 million in each of the respective periods related to this note as a component of corporate expenses.