Live Nation Entertainment Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

SEGMENT DATA

SEGMENT DATA

6 Months Ended

Jun. 30, 2018

The Company’s reportable segments are Concerts, Sponsorship & Advertising and Ticketing. The Concerts segment involves the promotion of live music events globally in the Company’s owned or operated venues and in rented third-party venues, the production of music festivals, the operation and management of music venues, the creation of associated content and the provision of management and other services to artists. The Sponsorship & Advertising segment manages the development of strategic sponsorship programs in addition to the sale of international, national and local sponsorships and the placement of advertising such as signage, promotional programs, rich media offerings, including advertising associated with live streaming and music-related original content, and ads across the Company’s distribution network of venues, events and websites. The Ticketing segment involves the management of the Company’s global ticketing operations, including providing ticketing software and services to clients, ticket resale services and online access for customers relating to ticket and event information, and is responsible for the Company’s primary ticketing website, www.ticketmaster.com.

Revenue and expenses earned and charged between segments are eliminated in consolidation. The Company’s capital expenditures below include accruals for amounts incurred but not yet paid for, but are not reduced by reimbursements received from outside parties such as landlords or replacements funded by insurance proceeds.

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 six months ended June 30, 2018 and 2017:



	Concerts		Sponsorship & Advertising		Ticketing			Other			Corporate			Eliminations			Consolidated
	(in thousands)
Three Months Ended June 30, 2018
Revenue	$	2,380,736	$	139,938	$	351,195		$	1,177		$	—		$	(4,731	)	$	2,868,315
Direct operating expenses	1,990,254		29,200		119,787			597			—			(4,731		)	2,135,107
Selling, general and administrative expenses	302,019		23,114		147,350			3,955			—			—			476,438
Depreciation and amortization	46,519		7,132		34,989			178			967			—			89,785
Loss (gain) on disposal of operating assets	114		—		(6		)	—			—			—			108
Corporate expenses	—		—		—			—			32,152			—			32,152
Operating income (loss)	$	41,830	$	80,492	$	49,075		$	(3,553	)	$	(33,119	)	$	—		$	134,725
Intersegment revenue	$	—	$	—	$	4,731		$	—		$	—		$	(4,731	)	$	—
Three Months Ended June 30, 2017
Revenue	$	2,249,851	$	124,563	$	311,181		$	867		$	—		$	(2,877	)	$	2,683,585
Direct operating expenses	1,895,588		25,571		103,186			1,003			—			(2,877		)	2,022,471
Selling, general and administrative expenses	270,488		22,211		136,677			5,009			—			—			434,385
Depreciation and amortization	46,131		6,401		27,565			103			965			—			81,165
Loss (gain) on disposal of operating assets	95		—		7			—			13			—			115
Corporate expenses	—		—		—			—			32,016			—			32,016
Operating income (loss)	$	37,549	$	70,380	$	43,746		$	(5,248	)	$	(32,994	)	$	—		$	113,433
Intersegment revenue	$	667	$	—	$	2,210		$	—		$	—		$	(2,877	)	$	—



	Concerts			Sponsorship & Advertising		Ticketing		Other			Corporate			Eliminations			Consolidated
	(in thousands)
Six Months Ended June 30, 2018
Revenue	$	3,419,657		$	214,496	$	723,568	$	1,954		$	—		$	(8,976	)	$	4,350,699
Direct operating expenses	2,786,419			44,951		244,071		726			—			(8,976		)	3,067,191
Selling, general and administrative expenses	563,110			43,209		296,933		7,797			—			—			911,049
Depreciation and amortization	92,054			14,742		68,622		387			1,851			—			177,656
Loss on disposal of operating assets	135			—		11		—			—			—			146
Corporate expenses	—			—		—		—			65,962			—			65,962
Operating income (loss)	$	(22,061	)	$	111,594	$	113,931	$	(6,956	)	$	(67,813	)	$	—		$	128,695
Intersegment revenue	$	—		$	—	$	8,976	$	—		$	—		$	(8,976	)	$	—
Capital expenditures	$	49,488		$	1,892	$	43,562	$	26		$	2,969		$	—		$	97,937
Six Months Ended June 30, 2017
Revenue	$	3,113,128		$	188,551	$	624,019	$	6,714		$	—		$	(5,948	)	$	3,926,464
Direct operating expenses	2,560,333			37,145		204,919		1,282			—			(5,947		)	2,797,732
Selling, general and administrative expenses	499,068			41,669		266,714		10,242			—			—			817,693
Depreciation and amortization	92,573			12,911		54,102		212			1,900			(1		)	161,697
Loss (gain) on disposal of operating assets	(588		)	—		7		—			37			—			(544		)
Corporate expenses	—			—		—		—			57,819			—			57,819
Operating income (loss)	$	(38,258	)	$	96,826	$	98,277	$	(5,022	)	$	(59,756	)	$	—		$	92,067
Intersegment revenue	$	1,813		$	—	$	4,135	$	—		$	—		$	(5,948	)	$	—
Capital expenditures	$	55,006		$	3,161	$	51,068	$	65		$	16,753		$	—		$	126,053