Quarterly report pursuant to Section 13 or 15(d)

SEGMENT DATA

v2.4.0.6
SEGMENT DATA
 9 Months Ended
Sep. 30, 2012
SEGMENT DATA [Abstract]  
SEGMENT DATA
NOTE 11—SEGMENT DATA
 
The Company's reportable segments are Concerts, Ticketing, Artist Nation and Sponsorship & Advertising. Prior to 2012, the Company reported an eCommerce segment, which is now included in the Ticketing and Sponsorship & Advertising segments. Specifically, all online advertising and online sponsorships previously reported in the eCommerce segment are now reported in the Sponsorship & Advertising segment while all other activity has been included in the Ticketing segment. This change was made to be consistent with how the four key components of the business are now being managed.
 
The Concerts segment involves the promotion of live music events globally in the Company's owned and/or operated venues and in rented third-party venues, the production of music festivals and the operation and management of music venues and is the aggregation of the Company's North American Concerts and International Concerts operating segments. The Ticketing segment involves the management of the Company's global ticketing operations including providing ticketing software and services to clients and online access for customers relating to ticket and event information and is responsible for the Company's primary websites, www.livenation.com and www.ticketmaster.com. The Ticketing segment is the aggregation of the Company's North American Ticketing and International Ticketing operating segments. The Artist Nation segment provides management services to artists and other services including merchandise, artist fan sites and VIP tickets and is the aggregation of the Company's Artist Management and Artist Services operating segments. The Sponsorship & Advertising segment manages the development of strategic sponsorship programs in addition to the sale of international, national and local sponsorships and placement of advertising including signage, promotional programs and banner ads in the Company's owned and/or operated venues and on its primary websites.
 
Included in the September 30, 2012 and December 31, 2011 cash and cash equivalents balance is $394.3 million and $373.9 million, respectively, of funds representing amounts equal to the face value of tickets sold on behalf of clients and the clients' share of convenience and order processing charges ("client funds"). The Company does not utilize client funds for its own financing or investing activities as the amounts are payable to clients.
 
The Company has reclassified all periods to conform to the current period presentation. Revenue and expenses earned and charged between segments are eliminated in consolidation. Corporate expenses and all line items below operating income are managed on a total company basis.
 
The Company manages its working capital on a consolidated basis. Accordingly, segment assets are not reported to, or used by, the Company's management to allocate resources to or assess performance of the segments, and therefore, total segment assets have not been presented.
 
The following table presents the results of operations for the Company's reportable segments for the three and nine months ending September 30, 2012 and 2011:
 
 
 Artist
 Sponsorship
 
 Concerts
 Ticketing
 Nation
 & Advertising
 Other
 Corporate
Eliminations
 Consolidated
 (in thousands)
 Three Months Ended September 30, 2012
 Revenue
 $1,429,912
 $  345,980
 $   127,924
 $           95,805
 $        1,147
 $                -
 $   (37,622)
 $  1,963,146
 Direct operating expenses
   1,235,786
      161,566
         85,097
              11,102
              994
                   -
      (37,122)
     1,457,423
 Selling, general and
    administrative expenses
      146,528
      104,098
         22,146
              10,760
              314
                   -
                   -
         283,846
 Depreciation and amortization
         27,508
         43,315
         13,203
                    320
                49
              789
            (500)
           84,684
 Loss (gain) on sale of
    operating assets
                 (8)
                10
                   -
                         -
              (62)
                   -
                   -
                 (60)
 Corporate expenses
                   -
                   -
                   -
                         -
                   -
         30,842
                   -
           30,842
 Acquisition transaction
    expenses
           1,032
              381
                   -
                         -
                   -
              483
                   -
             1,896
 Operating income (loss)
 $     19,066
 $     36,610
 $        7,478
 $           73,623
 $         (148)
 $   (32,114)
 $                -
 $     104,515
 Intersegment revenue
 $     33,510
 $         (521)
 $        4,633
 $                      -
 $                -
 $                -
 $        (37,622)
 $                  -
 Three Months Ended September 30, 2011
 Revenue
 $1,280,297
 $   333,482
 $   121,375
 $           86,388
 $           779
 $                -
 $      (32,296)
 $  1,790,025
 Direct operating expenses
   1,066,140
      159,630
         80,994
              12,528
                   -
            (893)
         (32,095)
     1,286,304
 Selling, general and
    administrative expenses
      131,805
      120,947
         20,551
                8,036
           1,123
                   -
                   -
         282,462
 Depreciation and amortization
         33,103
         38,954
         10,693
                      88
                13
              691
            (201)
           83,341
 Loss (gain) on sale of
    operating assets
                13
                 (2)
                15
                         -
              204
                   1
                   -
                231
 Corporate expenses
                   -
                   -
                   -
                         -
                   -
         27,385
                   -
           27,385
 Acquisition transaction
    expenses
              826
              216
              276
                         -
                   -
           4,175
                   -
             5,493
 Operating income (loss)
 $     48,410
 $     13,737
 $        8,846
 $           65,736
 $         (561)
 $   (31,359)
 $                -
 $     104,809
 Intersegment revenue
 $        25,455
 $        4,675
 $        2,166
 $                      -
 $                -
 $                -
 $      (32,296)
 $                  -
 Nine Months Ended September 30, 2012
 Revenue
 $2,954,635
 $1,001,463
 $   298,570
 $         193,211
 $        2,345
 $                -
 $  (68,404)
 $  4,381,820
 Direct operating expenses
   2,475,222
      467,808
      199,106
              27,160
              571
                   -
       (66,861)
     3,103,006
 Selling, general and
    administrative expenses
      423,213
      312,099
         67,540
              28,741
           1,331
                   -
                   -
         832,924
 Depreciation and amortization
      100,004
      121,284
         36,271
                    341
                72
           2,227
         (1,543)
         258,656
 Loss (gain) on sale of
    operating assets
            (477)
            (145)
                   -
                         -
              367
                   -
                   -
              (255)
 Corporate expenses
                   -
                   -
                   -
                         -
                   -
         81,474
                   -
           81,474
 Acquisition transaction
    expenses
            (373)
                46
              401
                         -
                   -
           1,261
                   -
           1,335
 Operating income (loss)
 $   (42,954)
 $   100,371
 $      (4,748)
 $         136,969
 $               4
 $   (84,962)
 $                -
 $     104,680
 Intersegment revenue
 $       58,548
 $        2,175
 $        7,681
 $                      -
 $                -
 $                -
 $   (68,404)
 $                  -
 Capital expenditures
 $     17,385
 $     65,253
 $           476
 $             3,979
 $               3
 $        1,114
 $                -
 $        88,210
 Nine Months Ended September 30, 2011
 Revenue
 $2,811,796
 $   966,687
 $   293,941
 $         182,453
 $        2,385
 $           333
 $   (59,279)
 $  4,198,316
 Direct operating expenses
   2,353,774
      452,584
      197,261
              28,528
                   -
         (1,895)
       (58,673)
     2,971,579
 Selling, general and
    administrative expenses
      400,421
      304,393
         89,466
              25,763
           2,183
                   -
                   -
         822,226
 Depreciation and amortization
         87,818
      111,359
         37,305
                    276
                40
           1,557
            (606)
         237,749
 Loss (gain) on sale of
    operating assets
            (677)
              (88)
           1,256
                         -
              374
                   1
                   -
                866
 Corporate expenses
                   -
                   -
                   -
                         -
                   -
         73,011
                   -
           73,011
 Acquisition transaction
    expenses
         (5,289)
           1,167
         (1,906)
                         -
                   -
         13,892
                   -
             7,864
 Operating income (loss)
 $   (24,251)
 $     97,272
 $   (29,441)
 $         127,886
 $         (212)
 $   (86,233)
 $                -
 $        85,021
 Intersegment revenue
 $      41,133
 $        9,008
 $        9,138
 $                      -
 $                -
 $                -
 $   (59,279)
 $                  -
 Capital expenditures
 $     15,825
 $     44,249
 $        3,658
 $                892
 $                -
 $        4,606
 $                -
 $        69,230