Quarterly report pursuant to Section 13 or 15(d)

EQUITY

v2.4.0.8
EQUITY
 6 Months Ended
Jun. 30, 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 six months ended June 30, 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
22,568

 
—

 
22,568

 
—

Common stock issued under stock plans, net of shares withheld for employee taxes
(8,115
)
 
—

 
(8,115
)
 
—

Exercise of stock options
11,737

 
—

 
11,737

 
—

Fair value of convertible debt conversion feature, net of issuance costs
21,418

 
—

 
21,418

 
—

Acquisitions
—

 
3,343

 
3,343

 
—

Purchases of noncontrolling interests
(2,232
)
 
6

 
(2,226
)
 
(4,755
)
Sales of noncontrolling interests
—

 
(158
)
 
(158
)
 
—

Redeemable noncontrolling interests fair value adjustments
(2,504
)
 
—

 
(2,504
)
 
2,504

Noncontrolling interests contributions
—

 
106

 
106

 
—

Cash distributions
—

 
(16,043
)
 
(16,043
)
 
(1,993
)
Other
—

 
(4,511
)
 
(4,511
)
 
464

Comprehensive income (loss):
 
 
 
 

 
 
Net income (loss)
(9,514
)
 
6,329

 
(3,185
)
 
(1,090
)
Unrealized loss on cash flow hedges
(8
)
 
—

 
(8
)
 
—

Realized loss on cash flow hedges
33

 
—

 
33

 
—

Change in funded status of defined benefit pension plan
30

 
—

 
30

 
—

Foreign currency translation adjustments
19,143

 
—

 
19,143

 
—

Balance at June 30, 2014
$
1,461,784

 
$
169,650

 
$
1,631,434

 
$
56,171


Common Stock
During the first half of 2014, the Company issued 1.6 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 January 2015 to December 2018. The redemption amounts for these puts are either 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 six months ended June 30, 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
 
(8
)
 
30

 
19,143

 
19,165

Amount reclassified from AOCI
 
33

 
—

 
—

 
33

Net other comprehensive income
 
25

 
30

 
19,143

 
19,198

Balance at June 30, 2014
 
$
(54
)
 
$
(581
)
 
$
17,463

 
$
16,828


The realized loss on cash flow hedges reclassified from AOCI consists of one interest rate swap agreement.
Earnings Per Share
The following table sets forth the computation of basic and diluted net income (loss) per common share:
 
Three Months Ended 
 June 30,
 
Six Months Ended 
 June 30,
 
2014
 
2013
 
2014
 
2013
 
(in thousands except share and per share data)
Net income (loss) attributable to common stockholders of Live Nation Entertainment, Inc. —basic and diluted
$
22,934

 
$
58,130

 
$
(9,514
)
 
$
(5,109
)
Accretion of redeemable noncontrolling interests
(460
)
 
68

 
(2,504
)
 
(160
)
Net income (loss) available to common stockholders of Live Nation Entertainment, Inc.—basic and diluted
$
22,474

 
$
58,198

 
$
(12,018
)
 
$
(5,269
)
 
 
 
 
 
 
 
 
Weighted average common shares—basic
198,701,762

 
193,069,783

 
198,282,044

 
190,960,206

Effect of dilutive securities:
 
 
 
 
 
 
 
        Stock options, restricted stock and warrants
7,287,509

 
3,700,622

 
—

 
—

Weighted average common shares—diluted
205,989,271

 
196,770,405

 
198,282,044

 
190,960,206

 
 
 
 
 
 
 
 
Basic and diluted net income (loss) per common share
$
0.11

 
$
0.30

 
$
(0.06
)
 
$
(0.03
)

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 the assumed conversion of the 2.5% convertible senior notes and the 2.875% convertible senior notes where dilutive. 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 
 June 30,
 
Six Months Ended 
 June 30,
  
2014
 
2013
 
2014
 
2013
 
(in thousands)
Options to purchase shares of common stock
5,108

 
6,734

 
17,755

 
17,695

Restricted stock awards—unvested
715

 
917

 
1,770

 
2,594

Warrants
—

 
500

 
—

 
500

Conversion shares related to the convertible senior notes
16,035

 
8,105

 
16,035

 
8,105

Number of anti-dilutive potentially issuable shares excluded from diluted common shares outstanding
21,858

 
16,256

 
35,560

 
28,894