Quarterly report pursuant to Section 13 or 15(d)

SEGMENT DATA

v2.4.0.8
SEGMENT DATA
 6 Months Ended
Jun. 30, 2014
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 or operated venues and in rented third-party venues, the production of music festivals and the operation and management of music venues. 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 Artist Nation segment provides management services to artists and other services including merchandise sales. 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 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 include accruals and 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.
For the six months ended June 30, 2013, the previously reported capital expenditures amount in the Concerts segment has been increased by $19.6 million to include partial insurance recoveries received in connection with storm damage to an amphitheater in New York during Hurricane Sandy. The expenditures had previously been reported net of these recoveries.
The following table presents the results of operations for the Company’s reportable segments for the three and six months ended June 30, 2014 and 2013:
 
Concerts
 
Ticketing
 
Artist
Nation
 
Sponsorship
& Advertising
 
Other
 
Corporate
 
Eliminations
 
Consolidated
 
 
 
 
 
 
 
(in thousands)
 
 
 
 
 
 
Three Months Ended June 30, 2014
 
 
 
 
 
 
 
 
 
 
 
 
Revenue
$
1,172,166

 
$
371,000

 
$
79,162

 
$
70,903

 
$
839

 
$
—

 
$
(28,285
)
 
$
1,665,785

Direct operating expenses
969,991

 
183,269

 
47,242

 
9,995

 
1,590

 
—

 
(27,391
)
 
1,184,696

 
Concerts
 
Ticketing
 
Artist
Nation
 
Sponsorship
& Advertising
 
Other
 
Corporate
 
Eliminations
 
Consolidated
 
 
 
 
 
 
 
(in thousands)
 
 
 
 
 
 
Selling, general and administrative expenses
166,890

 
111,882

 
34,029

 
12,244

 
880

 
—

 
—

 
325,925

Depreciation and amortization
26,189

 
40,968

 
7,665

 
1,739

 
10

 
542

 
(894
)
 
76,219

Loss (gain) on disposal of operating assets
(3,745
)
 
(43
)
 
1

 
—

 
—

 
—

 
—

 
(3,787
)
Corporate expenses
—

 
—

 
—

 
—

 
—

 
25,717

 
—

 
25,717

Acquisition transaction expenses
456

 
58

 
(265
)
 
—

 
—

 
1,080

 
—

 
1,329

Operating income (loss)
$
12,385

 
$
34,866

 
$
(9,510
)
 
$
46,925

 
$
(1,641
)
 
$
(27,339
)
 
$
—

 
$
55,686

Intersegment revenue
$
25,604

 
$
187

 
$
2,494

 
$
—

 
$
—

 
$
—

 
$
(28,285
)
 
$
—

Three Months Ended June 30, 2013
 
 
 
 
 
 
 
 
 
 
 
 
Revenue
$
1,193,006

 
$
337,827

 
$
99,739

 
$
71,240

 
$
791

 
$
—

 
$
(23,090
)
 
$
1,679,513

Direct operating expenses
992,476

 
160,021

 
68,920

 
13,311

 
(2,206
)
 
—

 
(22,604
)
 
1,209,918

Selling, general and administrative expenses
159,517

 
101,919

 
22,476

 
10,959

 
848

 
—

 
—

 
295,719

Depreciation and amortization
35,068

 
36,685

 
10,136

 
596

 
11

 
678

 
(486
)
 
82,688

Loss (gain) on disposal of operating assets
(31,332
)
 
42

 
1,091

 
—

 
—

 
—

 
—

 
(30,199
)
Corporate expenses
—

 
—

 
—

 
—

 
—

 
21,812

 
—

 
21,812

Acquisition transaction expenses
313

 
—

 
17

 
—

 
—

 
1,439

 
—

 
1,769

Operating income (loss)
$
36,964

 
$
39,160

 
$
(2,901
)
 
$
46,374

 
$
2,138

 
$
(23,929
)
 
$
—

 
$
97,806

Intersegment revenue
$
21,254

 
$
714

 
$
1,122

 
$
—

 
$
—

 
$
—

 
$
(23,090
)
 
$
—

Six Months Ended June 30, 2014
 
 
 
 
 
 
 
 
 
 
 
 
Revenue
$
1,834,656

 
$
725,461

 
$
151,718

 
$
116,291

 
$
1,585

 
$
—

 
$
(36,610
)
 
$
2,793,101

Direct operating expenses
1,487,146

 
355,860

 
89,318

 
18,059

 
681

 
—

 
(35,217
)
 
1,915,847

Selling, general and administrative expenses
316,806

 
225,902

 
59,822

 
24,165

 
1,635

 
—

 
—

 
628,330

Depreciation and amortization
54,709

 
86,951

 
15,436

 
1,943

 
20

 
1,141

 
(1,393
)
 
158,807

 
Concerts
 
Ticketing
 
Artist
Nation
 
Sponsorship
& Advertising
 
Other
 
Corporate
 
Eliminations
 
Consolidated
 
 
 
 
 
 
 
(in thousands)
 
 
 
 
 
 
Loss (gain) on disposal of operating assets
(3,235
)
 
(117
)
 
34

 
—

 
—

 
37

 
—

 
(3,281
)
Corporate expenses
—

 
—

 
—

 
—

 
—

 
46,891

 
—

 
46,891

Acquisition transaction expenses
783

 
63

 
188

 
—

 
—

 
2,095

 
—

 
3,129

Operating income (loss)
$
(21,553
)
 
$
56,802

 
$
(13,080
)
 
$
72,124

 
$
(751
)
 
$
(50,164
)
 
$
—

 
$
43,378

Intersegment revenue
$
33,034

 
$
460

 
$
3,116

 
$
—

 
$
—

 
$
—

 
$
(36,610
)
 
$
—

Capital expenditures
$
18,306

 
$
37,438

 
$
943

 
$
449

 
$
—

 
$
5,271

 
$
—

 
$
62,407

Six Months Ended June 30, 2013
 
 
 
 
 
 
 
 
 
 
 
 
Revenue
$
1,706,541

 
$
662,962

 
$
150,010

 
$
111,387

 
$
1,584

 
$
—

 
$
(29,273
)
 
$
2,603,211

Direct operating expenses
1,382,728

 
315,083

 
100,332

 
20,175

 
(3,171
)
 
—

 
(28,295
)
 
1,786,852

Selling, general and administrative expenses
296,835

 
213,859

 
42,514

 
20,647

 
1,386

 
—

 
—

 
575,241

Depreciation and amortization
63,770

 
79,498

 
20,170

 
738

 
185

 
1,470

 
(978
)
 
164,853

Loss (gain) on disposal of operating assets
(34,462
)
 
(20
)
 
679

 
—

 
7

 
—

 
—

 
(33,796
)
Corporate expenses
—

 
—

 
—

 
—

 
—

 
42,467

 
—

 
42,467

Acquisition transaction expenses
547

 
24

 
145

 
—

 
—

 
2,261

 
—

 
2,977

Operating income (loss)
$
(2,877
)
 
$
54,518

 
$
(13,830
)
 
$
69,827

 
$
3,177

 
$
(46,198
)
 
$
—

 
$
64,617

Intersegment revenue
$
26,967

 
$
981

 
$
1,325

 
$
—

 
$
—

 
$
—

 
$
(29,273
)
 
$
—

Capital expenditures
$
31,444

 
$
42,993

 
$
282

 
$
300

 
$
—

 
$
(171
)
 
$
—

 
$
74,848