Quarterly report pursuant to Section 13 or 15(d)

LONG-LIVED ASSETS

v3.8.0.1
LONG-LIVED ASSETS
 3 Months Ended
Mar. 31, 2018
LONG-LIVED ASSETS [Abstract]  
LONG-LIVED ASSETS
LONG-LIVED ASSETS
Definite-lived Intangible Assets
The following table presents the changes in the gross carrying amount and accumulated amortization of definite-lived intangible assets for the three months ended March 31, 2018:
 
Revenue-
generating
contracts
 
Client /
vendor
relationships
 
Trademarks
and
naming
rights
 
Technology
 
Other (1)
 
Total
 
(in thousands)
Balance as of December 31, 2017:
 
 
 
 
 
 
 
 
Gross carrying amount
$
789,363

 
$
341,449

 
$
126,331

 
$
63,666

 
$
135,231

 
$
1,456,040

Accumulated amortization
(410,011
)
 
(186,357
)
 
(32,681
)
 
(22,745
)
 
(74,981
)
 
(726,775
)
Net
379,352

 
155,092

 
93,650

 
40,921

 
60,250

 
729,265

Gross carrying amount:
 
 
 
 
 
 
 
 
 
 
Acquisitions—current year
1,157

 
37,777

 
—

 
20,466

 
11,983

 
71,383

Acquisitions—prior year
(977
)
 
—

 
—

 
194

 
400

 
(383
)
Foreign exchange
5,791

 
2,126

 
67

 
278

 
1,598

 
9,860

Other (2)
—

 
(3,700
)
 
—

 
(5
)
 
(2,306
)
 
(6,011
)
Net change
5,971

 
36,203

 
67

 
20,933

 
11,675

 
74,849

Accumulated amortization:
 
 
 
 
 
 
 
 
 
 
Amortization
(18,947
)
 
(12,836
)
 
(3,139
)
 
(5,565
)
 
(5,247
)
 
(45,734
)
Foreign exchange
(3,190
)
 
(832
)
 
(163
)
 
(110
)
 
(802
)
 
(5,097
)
Other(2)
—

 
3,700

 
8

 
28

 
2,307

 
6,043

Net change
(22,137
)
 
(9,968
)
 
(3,294
)
 
(5,647
)
 
(3,742
)
 
(44,788
)
Balance as of March 31, 2018:
 
 
 
 
 
 
 
 
Gross carrying amount
795,334

 
377,652

 
126,398

 
84,599

 
146,906

 
1,530,889

Accumulated amortization
(432,148
)
 
(196,325
)
 
(35,975
)
 
(28,392
)
 
(78,723
)
 
(771,563
)
Net
$
363,186

 
$
181,327

 
$
90,423

 
$
56,207

 
$
68,183

 
$
759,326


______________
(1) Other includes intangible assets for non-compete agreements and venue management and leasehold agreements.      
(2) Other includes netdowns of fully amortized assets.
Included in the current year acquisitions amounts above are definite-lived intangible assets primarily associated with the acquisitions of controlling interests in a concert promotion business and an artist management business that are both located in the United States, and the acquisition of certain software assets from a business located in the United States.
The 2018 additions to definite-lived intangible assets from acquisitions have weighted-average lives as follows:
 
Weighted-
Average
Life (years)
Revenue-generating contracts
3
Client/vendor relationships
9
Technology
3
Other
12
All categories
8

Amortization of definite-lived intangible assets for the three months ended March 31, 2018 and 2017 was $45.7 million and $44.6 million, respectively.
As acquisitions and dispositions occur in the future and the valuations of intangible assets for recent acquisitions are completed, amortization will vary.
Goodwill
The following table presents the changes in the carrying amount of goodwill in each of the Company’s reportable segments for the three months ended March 31, 2018:
 
Concerts
 
Sponsorship
& Advertising
 
Ticketing
 
Total
 
(in thousands)
Balance as of December 31, 2017:
 
 
 
 
 
 
 
Goodwill
$
1,015,913

 
$
401,753

 
$
761,786

 
$
2,179,452

Accumulated impairment losses
(424,863
)
 
—

 
—

 
(424,863
)
                 Net
591,050

 
401,753

 
761,786

 
1,754,589

Acquisitions—current year
6,615

 
—

 
—

 
6,615

Acquisitions—prior year
771

 
2,459

 
—

 
3,230

Foreign exchange
2,219

 
3,832

 
2,186

 
8,237

Balance as of March 31, 2018:
 
 
 
 
 
 
 
Goodwill
1,025,518

 
408,044

 
763,972

 
2,197,534

Accumulated impairment losses
(424,863
)
 
—

 
—

 
(424,863
)
                 Net
$
600,655

 
$
408,044

 
$
763,972

 
$
1,772,671


The Company is in various stages of finalizing its acquisition accounting for recent acquisitions, which include the use of external valuation consultants, and the completion of this accounting could result in a change to the associated purchase price allocations, including goodwill and its allocation between segments.
Investments in Nonconsolidated Affiliates
The Company has investments in various affiliates which are not consolidated and are accounted for under the equity method of accounting. The Company records its investments in these entities on the balance sheets as investments in nonconsolidated affiliates reported as part of other long-term assets. The Company’s interests in these operations are recorded in the statements of operations as equity in earnings of nonconsolidated affiliates. For the three months ended March 31, 2018, certain investments are considered significant on an aggregate basis.
Summarized unaudited income statement information for the Company’s nonconsolidated affiliates considered significant in the aggregate are as follows (at 100%):
 
 
Three Months Ended 
 March 31,
 
 
2018
 
2017
 
 
(in thousands)
Revenue
 
$
14,414

 
$
13,810

Operating income
 
$
9,025

 
$
7,565

Net income
 
$
7,194

 
$
5,714

Net income attributable to the common stockholders of the equity investee
 
$
7,104

 
$
5,702