Quarterly report pursuant to Section 13 or 15(d)

LONG-LIVED ASSETS

v3.10.0.1
LONG-LIVED ASSETS
 6 Months Ended
Jun. 30, 2018
LONG-LIVED ASSETS [Abstract]  
LONG-LIVED ASSETS
LONG-LIVED ASSETS
Definite-lived Intangible Assets
The following table presents the changes in the gross carrying amount and accumulated amortization of definite-lived intangible assets for the six months ended June 30, 2018:
 
Revenue-
generating
contracts
 
Client /
vendor
relationships
 
Trademarks
and
naming
rights
 
Technology
 
Other (1)
 
Total
 
(in thousands)
Balance as of December 31, 2017:
 
 
 
 
 
 
 
 
Gross carrying amount
$
789,363

 
$
341,449

 
$
126,331

 
$
63,666

 
$
135,231

 
$
1,456,040

Accumulated amortization
(410,011
)
 
(186,357
)
 
(32,681
)
 
(22,745
)
 
(74,981
)
 
(726,775
)
Net
379,352

 
155,092

 
93,650

 
40,921

 
60,250

 
729,265

Gross carrying amount:
 
 
 
 
 
 
 
 
 
 
Acquisitions—current year
6,128

 
64,321

 
—

 
22,433

 
13,762

 
106,644

Acquisitions—prior year
(1,977
)
 
—

 
—

 
194

 
1,700

 
(83
)
Foreign exchange
(7,723
)
 
(4,134
)
 
(884
)
 
(799
)
 
(1,934
)
 
(15,474
)
Other (2)
(2,862
)
 
(3,698
)
 
—

 
(1,675
)
 
(2,306
)
 
(10,541
)
Net change
(6,434
)
 
56,489

 
(884
)
 
20,153

 
11,222

 
80,546

Accumulated amortization:
 
 
 
 
 
 
 
 
 
 
Amortization
(37,891
)
 
(26,204
)
 
(6,261
)
 
(11,064
)
 
(10,742
)
 
(92,162
)
Foreign exchange
3,734

 
2,688

 
246

 
457

 
1,208

 
8,333

Other (2)
3,162

 
3,700

 
16

 
1,697

 
2,331

 
10,906

Net change
(30,995
)
 
(19,816
)
 
(5,999
)
 
(8,910
)
 
(7,203
)
 
(72,923
)
Balance as of June 30, 2018:
 
 
 
 
 
 
 
 
Gross carrying amount
782,929

 
397,938

 
125,447

 
83,819

 
146,453

 
1,536,586

Accumulated amortization
(441,006
)
 
(206,173
)
 
(38,680
)
 
(31,655
)
 
(82,184
)
 
(799,698
)
Net
$
341,923

 
$
191,765

 
$
86,767

 
$
52,164

 
$
64,269

 
$
736,888


______________
(1) Other includes intangible assets for non-compete, venue management and leasehold agreements.      
(2) Other includes netdowns of fully amortized assets.
Included in the current year acquisitions amounts above are definite-lived intangible assets primarily associated with the acquisitions of controlling interests in various concert and festival promotion businesses and artist management businesses that are all located in the United States, and the acquisition of certain software assets from a business located in the United States.
The 2018 additions to definite-lived intangible assets from acquisitions have weighted-average lives as follows:
 
Weighted-
Average
Life (years)
Revenue-generating contracts
7
Client/vendor relationships
8
Technology
3
Other
12
All categories
7

Amortization of definite-lived intangible assets for the three months ended June 30, 2018 and 2017 was $46.4 million and $45.4 million, respectively, and for the six months ended June 30, 2018 and 2017 was $92.2 million and $90.0 million, respectively.
The following table presents the Company’s estimate of amortization expense for each of the five succeeding fiscal years for definite-lived intangible assets that exist at June 30, 2018:
 
 
(in thousands)
July 1 - December 31, 2018
$
108,750

2019
$
168,845

2020
$
134,507

2021
$
90,962

2022
$
73,004


As acquisitions and dispositions occur in the future and the valuations of intangible assets for recent acquisitions are completed, amortization will vary.
Goodwill
The following table presents the changes in the carrying amount of goodwill in each of the Company’s reportable segments for the six months ended June 30, 2018:
 
Concerts
 
Sponsorship
& Advertising
 
Ticketing
 
Total
 
(in thousands)
Balance as of December 31, 2017:
 
 
 
 
 
 
 
Goodwill
$
1,015,913

 
$
401,753

 
$
761,786

 
$
2,179,452

Accumulated impairment losses
(424,863
)
 
—

 
—

 
(424,863
)
                 Net
591,050

 
401,753

 
761,786

 
1,754,589

Acquisitions—current year
22,247

 
3,890

 
—

 
26,137

Acquisitions—prior year
52,752

 
1,506

 
—

 
54,258

Foreign exchange
(5,637
)
 
(2,857
)
 
(2,542
)
 
(11,036
)
Balance as of June 30, 2018:
 
 
 
 
 
 
 
Goodwill
1,085,275

 
404,292

 
759,244

 
2,248,811

Accumulated impairment losses
(424,863
)
 
—

 
—

 
(424,863
)
                 Net
$
660,412

 
$
404,292

 
$
759,244

 
$
1,823,948


Included in the current year acquisitions amount above is goodwill associated with the acquisition of a controlling interest in a concert promotion business and the acquisition of a festival and concert promotion business that are both located in the United States.
Included in the prior year acquisitions amount above is a purchase price adjustment recognized in connection with contingent consideration paid during 2018 related to an acquisition that occurred prior to the Company’s adoption of the current FASB guidance for business combinations. Under the previous guidance, which was in place at the time of this acquisition, such contingent payments were recognized when it was determinable that the applicable financial targets were met.
The Company is in various stages of finalizing its acquisition accounting for recent acquisitions, which include the use of external valuation consultants, and the completion of this accounting could result in a change to the associated purchase price allocations, including goodwill and its allocation between segments.