Quarterly report pursuant to Section 13 or 15(d)

STOCK-BASED COMPENSATION

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STOCK-BASED COMPENSATION
 6 Months Ended
Jun. 30, 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
    
Six Months Ended
  
   
June 30,
    
June 30,
  
   
2012
    
2011
    
2012
    
2011
  
   
(in thousands)
  
Selling, general and administrative expenses
   $ 3,353     $ 3,099     $ 6,644     $ 33,571  
Corporate expenses
     5,587       4,551       11,275       9,386  
Total stock-based compensation expense
   $ 8,940     $ 7,650     $ 17,919     $ 42,957  
 
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 June 30, 2012, there was $56.2 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 2.6 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 June 30, 2012 and 2011, the Company recorded $1.6 million in each of the respective periods and for the six months ended June 30, 2012 and 2011, the Company recorded $3.2 million in each of the respective periods related to this note as a component of corporate expenses.