Quarterly report pursuant to Section 13 or 15(d)

SEGMENT DATA

v2.4.0.8
SEGMENT DATA
 9 Months Ended
Sep. 30, 2013
Segment Reporting [Abstract]  
SEGMENT DATA
SEGMENT DATA
The Company’s reportable segments are Concerts, Ticketing, Artist Nation and Sponsorship & Advertising. 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 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.
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’s capital expenditures includes accruals but excludes expenditures funded by outside parties such as landlords or replacements funded by insurance companies.
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, 2013 and 2012:
 
Concerts
 
Ticketing
 
Artist
Nation
 
Sponsorship
& Advertising
 
Other
 
Corporate
 
Eliminations
 
Consolidated
 
 
 
 
 
 
 
(in thousands)
 
 
 
 
 
 
Three Months Ended September 30, 2013
 
 
 
 
 
 
 
 
 
 
 
 
Revenue
$
1,726,986

 
$
356,809

 
$
111,060

 
$
110,217

 
$
793

 
$
—

 
$
(43,629
)
 
$
2,262,236

Direct operating expenses
1,487,856

 
166,509

 
69,231

 
15,112

 
3,109

 
—

 
(43,086
)
 
1,698,731

Selling, general and administrative expenses
170,005

 
112,940

 
29,348

 
11,979

 
733

 
—

 
—

 
325,005

Depreciation and amortization
32,821

 
49,150

 
10,736

 
(56
)
 
11

 
610

 
(543
)
 
92,729

Loss (gain) on disposal of operating assets
(9,035
)
 
(27
)
 
2

 
—

 
—

 
—

 
—

 
(9,060
)
Corporate expenses
—

 
—

 
—

 
—

 
—

 
26,442

 
—

 
26,442

Acquisition transaction expenses
745

 
221

 
(57
)
 
—

 
—

 
1,443

 
—

 
2,352

Operating income (loss)
$
44,594

 
$
28,016

 
$
1,800

 
$
83,182

 
$
(3,060
)
 
$
(28,495
)
 
$
—

 
$
126,037

Intersegment revenue
$
36,535

 
$
861

 
$
6,233

 
$
—

 
$
—

 
$
—

 
$
(43,629
)
 
$
—

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 disposal 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
)
 
$
—

Nine Months Ended September 30, 2013
 
 
 
 
 
 
 
 
 
 
 
 
Revenue
$
3,433,527

 
$
1,019,771

 
$
261,070

 
$
221,604

 
$
2,377

 
$
—

 
$
(72,902
)
 
$
4,865,447

Direct operating expenses
2,870,584

 
481,592

 
169,563

 
35,287

 
(62
)
 
—

 
(71,381
)
 
3,485,583

Selling, general and administrative expenses
466,840

 
326,799

 
71,862

 
32,626

 
2,119

 
—

 
—

 
900,246

Depreciation and amortization
96,591

 
128,648

 
30,906

 
682

 
196

 
2,080

 
(1,521
)
 
257,582

Loss (gain) on disposal of operating assets
(43,497
)
 
(47
)
 
681

 
—

 
7

 
—

 
—

 
(42,856
)
Corporate expenses
—

 
—

 
—

 
—

 
—

 
68,909

 
—

 
68,909

Acquisition transaction expenses
1,292

 
245

 
88

 
—

 
—

 
3,704

 
—

 
5,329

Operating income (loss)
$
41,717

 
$
82,534

 
$
(12,030
)
 
$
153,009

 
$
117

 
$
(74,693
)
 
$
—

 
$
190,654

Intersegment revenue
$
63,502

 
$
1,842

 
$
7,558

 
$
—

 
$
—

 
$
—

 
$
(72,902
)
 
$
—

Capital expenditures
$
16,708

 
$
62,145

 
$
483

 
$
653

 
$
—

 
$
94

 
$
—

 
$
80,083

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 disposal 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