Quarterly report pursuant to Section 13 or 15(d)

LONG-LIVED ASSETS

v2.4.0.6
LONG-LIVED ASSETS
 3 Months Ended
Mar. 31, 2013
LONG-LIVED ASSETS [Abstract]  
LONG-LIVED ASSETS
NOTE 2—LONG-LIVED ASSETS
Property, Plant and Equipment
In the fourth quarter of 2012, an amphitheater located in New York sustained substantial damage during Hurricane Sandy. During the three months ended March 31, 2013, the Company received a partial insurance recovery and recorded a gain of $3.1 million as a component of gain on disposal of operating assets in the Concerts segment.
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, 2013:
 
Revenue-
generating
contracts
 
Client /
vendor
relationships
 
Non-compete
agreements
 
Venue
management
and
leaseholds
 
Technology
 
Trademarks
and
naming
rights
 
Other
 
Total
 
(in thousands)
Balance as of December 31, 2012:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gross carrying amount
$
515,071

 
$
261,655

 
$
168,418

 
$
118,259

 
$
101,424

 
$
18,423

 
$
6,452

 
$
1,189,702

Accumulated amortization
(197,549
)
 
(39,807
)
 
(111,369
)
 
(51,891
)
 
(53,295
)
 
(6,678
)
 
(4,650
)
 
(465,239
)
Net
317,522

 
221,848

 
57,049

 
66,368

 
48,129

 
11,745

 
1,802

 
724,463

Gross carrying amount:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Acquisitions
1,407

 
—

 
—

 
—

 
—

 
—

 
—

 
1,407

Foreign exchange
(7,140
)
 
(11
)
 
(155
)
 
(1,900
)
 
(623
)
 
(574
)
 
(23
)
 
(10,426
)
Other (1)
(2,767
)
 
—

 
(13,592
)
 
—

 
—

 
805

 
(3,000
)
 
(18,554
)
 
(8,500
)
 
(11
)
 
(13,747
)
 
(1,900
)
 
(623
)
 
231

 
(3,023
)
 
(27,573
)
Accumulated amortization:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amortization
(11,609
)
 
(11,291
)
 
(5,541
)
 
(3,423
)
 
(5,376
)
 
(886
)
 
(113
)
 
(38,239
)
Foreign exchange
3,214

 
(5
)
 
130

 
542

 
346

 
170

 
20

 
4,417

Other (1)
2,767

 
—

 
13,843

 
—

 
—

 
374

 
3,000

 
19,984

 
(5,628
)
 
(11,296
)
 
8,432

 
(2,881
)
 
(5,030
)
 
(342
)
 
2,907

 
(13,838
)
Balance as of March 31, 2013:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gross carrying amount
506,571

 
261,644

 
154,671

 
116,359

 
100,801

 
18,654

 
3,429

 
1,162,129

Accumulated amortization
(203,177
)
 
(51,103
)
 
(102,937
)
 
(54,772
)
 
(58,325
)
 
(7,020
)
 
(1,743
)
 
(479,077
)
Net
$
303,394

 
$
210,541

 
$
51,734

 
$
61,587

 
$
42,476

 
$
11,634

 
$
1,686

 
$
683,052


_________
(1)
Other includes a reclassification from indefinite-lived intangible assets due to a change in the asset’s estimated useful life and netdowns of fully amortized assets.
The 2013 addition to definite-lived intangible assets from acquisitions has a weighted-average life as follows:
  
Weighted-
Average
Life (years)
 
 
Revenue-generating contracts
8

Amortization from definite-lived intangible assets for the three months ended March 31, 2013 and 2012 was $38.2 million and $39.9 million, respectively. In addition, amortization related to nonrecoupable ticketing contract advances for the three months ended March 31, 2013 and 2012 was $13.6 million and $10.8 million, respectively. As acquisitions and dispositions occur in the future and the valuations of intangible assets for recent acquisitions are completed, amortization may vary. Therefore, the expense to date is not necessarily indicative of the expense expected for the full year.
Goodwill
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, 2013:
 
Concerts
 
Ticketing
 
Artist
Nation
 
Sponsorship
&  Advertising
 
Other
 
Total
 
(in thousands)
Balance as of December 31, 2012:
 
 
 
 
 
 
 
 
 
 
 
Goodwill
$
468,891

 
$
637,642

 
$
266,820

 
$
254,376

 
$
13,037

 
$
1,640,766

Accumulated impairment losses
(269,902
)
 
—

 
—

 
—

 
(13,037
)
 
(282,939
)
 
198,989

 
637,642

 
266,820

 
254,376

 
—

 
1,357,827

 
 
 
 
 
 
 
 
 
 
 
 
Acquisitions—current year
3,668

 
—

 
—

 
—

 
—

 
3,668

Acquisitions—prior year
(12,670
)
 
—

 
7,040

 
—

 
—

 
(5,630
)
Foreign exchange
(12,895
)
 
(2,085
)
 
(133
)
 
(12,404
)
 
—

 
(27,517
)
 
 
 
 
 
 
 
 
 
 
 
 
Balance as of March 31, 2013:
 
 
 
 
 
 
 
 
 
 
 
Goodwill
446,994

 
635,557

 
273,727

 
241,972

 
13,037

 
1,611,287

Accumulated impairment losses
(269,902
)
 
—

 
—

 
—

 
(13,037
)
 
(282,939
)
 
$
177,092

 
$
635,557

 
$
273,727

 
$
241,972

 
$
—

 
$
1,328,348


The Company is in the process of finalizing its acquisition accounting for recent acquisitions which could result in a change to the associated purchase price allocations, including goodwill.
Long-lived Asset Disposals
In January 2012, the Company completed the sale of an amphitheater in Ohio.
The table below summarizes the asset and liability values at the time of disposal and the resulting gain or loss recorded.
Divested Asset
 
Segment
 
Gain 
on Disposal of
Operating
Assets
 
Current
Assets
 
Noncurrent
Assets
 
Current
Liabilities
 
Noncurrent
Liabilities
 
 
(in thousands)
2012 Divestiture
 
 
 
 
 
 
 
 
 
 
 
 
Ohio amphitheater
 
Concerts
 
$
444

 
$
—

 
$
5,400

 
$
444

 
$
—



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 disposal 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 period ending December 2013.