Quarterly report pursuant to Section 13 or 15(d)

EQUITY

v2.4.0.8
EQUITY
 3 Months Ended
Mar. 31, 2014
Equity [Abstract]  
EQUITY
EQUITY
The following table shows the reconciliation of the carrying amount of stockholders’ equity attributable to Live Nation Entertainment, Inc., equity attributable to noncontrolling interests, total equity and also redeemable noncontrolling interests for the three months ended March 31, 2014:
 
Live Nation
Entertainment, Inc.
Stockholders’  Equity
 
Noncontrolling
Interests
 
Total
Equity
 
Redeemable
Noncontrolling
Interests
 
(in thousands)
 
(in thousands)
Balance at December 31, 2013
$
1,409,228

 
$
180,578

 
$
1,589,806

 
$
61,041

Non-cash and stock-based compensation
9,727

 
291

 
10,018

 
—

Common stock issued under stock plans, net of shares withheld for employee taxes
(7,658
)
 
—

 
(7,658
)
 
—

Exercise of stock options
7,919

 
—

 
7,919

 
—

Acquisitions
—

 
2,155

 
2,155

 
—

Purchases of noncontrolling interests
140

 
53

 
193

 
—

Sales of noncontrolling interests
—

 
(158
)
 
(158
)
 
—

Redeemable noncontrolling interests fair value adjustments
(2,044
)
 
—

 
(2,044
)
 
2,044

Noncontrolling interests contributions
—

 
231

 
231

 
—

Cash distributions
—

 
(4,195
)
 
(4,195
)
 
—

Other
—

 
(4,681
)
 
(4,681
)
 
—

Comprehensive income (loss):
 
 
 
 

 
 
Net income (loss)
(32,448
)
 
4,427

 
(28,021
)
 
(2,076
)
Unrealized loss on cash flow hedges
(3
)
 
—

 
(3
)
 
—

Realized loss on cash flow hedges
17

 
—

 
17

 
—

Change in funded status of defined benefit pension plan
30

 
—

 
30

 
—

Foreign currency translation adjustments
9,819

 
—

 
9,819

 
—

Balance at March 31, 2014
$
1,394,727

 
$
178,701

 
$
1,573,428

 
$
61,009


Common Stock
During the first quarter of 2014, the Company issued 1.2 million shares of common stock in connection with stock option exercises and vestings of restricted stock awards, net of shares withheld for taxes.
Redeemable Noncontrolling Interests
The Company is subject to put arrangements arising from business combinations where the holders of the noncontrolling interests can require the Company to repurchase their shares at specified dates in the future or within specified periods in the future. Certain of these puts can be exercised earlier upon the occurrence of triggering events as specified in the agreements. The exercise dates for these puts range from June 2014 to December 2018. The redemption amounts for these puts are either at a fixed amount, at fair value at the time of exercise or a variable amount based on a formula linked to earnings. In accordance with the FASB guidance for business combinations, the redeemable noncontrolling interests are recorded at their fair value at acquisition date. As these put arrangements are not currently redeemable, the Company accretes up to the redemption value over the period from the date of issuance to the earliest redemption date of the individual puts, with the offset recorded to additional paid-in capital. Decreases in accretion are only recognized to the extent that increases had been previously recognized. The estimated redemption values that are based on a formula linked to future earnings are computed using projected cash flows each reporting period which take into account the current expectations regarding profitability and the timing of revenue-generating events.
Accumulated Other Comprehensive Income (Loss)
The following table presents changes in the components of AOCI, net of taxes, for the three months ended March 31, 2014:
 
 
Gains and Losses On Cash Flow Hedges
 
Defined Benefit Pension Items
 
Foreign Currency Items
 
Total
 
 
(in thousands)
Balance at December 31, 2013
 
$
(79
)
 
$
(611
)
 
$
(1,680
)
 
$
(2,370
)
Other comprehensive income (loss) before reclassifications
 
(3
)
 
30

 
9,819

 
9,846

Amount reclassified from AOCI
 
17

 
—

 
—

 
17

Net other comprehensive income
 
14

 
30

 
9,819

 
9,863

Balance at March 31, 2014
 
$
(65
)
 
$
(581
)
 
$
8,139

 
$
7,493


The realized loss on cash flow hedges reclassified from AOCI consists of one interest rate swap agreement.
Earnings per Share
The calculation of diluted net income per common share includes the effects of the assumed exercise of any outstanding stock options and warrants, the assumed vesting of shares of restricted stock awards and units and the assumed conversion of the 2.875% convertible senior notes where dilutive. For the three months ended March 31, 2014 and 2013 there were no reconciling items to net loss attributable to common stockholders of Live Nation Entertainment, Inc. or weighted average common shares outstanding in the calculation of diluted net income per common share. The following table shows securities excluded from the calculation of diluted net income per common share because such securities are anti-dilutive:
  
Three Months Ended 
 March 31,
  
2014
 
2013
 
(in thousands)
Options to purchase shares of common stock
18,060

 
22,078

Restricted stock awards and units—unvested
1,868

 
2,685

Warrants
—

 
500

Conversion shares related to 2.875% convertible senior notes
8,105

 
8,105

Number of anti-dilutive potentially issuable shares excluded from diluted common shares outstanding
28,033

 
33,368