Quarterly report pursuant to Section 13 or 15(d)

SEGMENT DATA

v2.4.0.8
SEGMENT DATA
 9 Months Ended
Sep. 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 nine months ended September 30, 2013, the previously reported capital expenditures amount in the Concerts segment has been increased by $21.9 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 nine months ended September 30, 2014 and 2013:
 
Concerts
 
Ticketing
 
Artist
Nation
 
Sponsorship
& Advertising
 
Other
 
Corporate
 
Eliminations
 
Consolidated
 
 
 
 
 
 
 
(in thousands)
 
 
 
 
 
 
Three Months Ended September 30, 2014
 
 
 
 
 
 
 
 
 
 
Revenue
$
1,925,462

 
$
386,131

 
$
130,935

 
$
114,614

 
$
792

 
$
—

 
$
(55,926
)
 
$
2,502,008

Direct operating expenses
1,658,028

 
187,548

 
75,642

 
13,534

 
(2,473
)
 
—

 
(55,760
)
 
1,876,519

Selling, general and administrative expenses
186,415

 
113,483

 
35,400

 
13,098

 
1,280

 
—

 
—

 
349,676

Depreciation and amortization
30,155

 
55,521

 
10,498

 
1,264

 
11

 
642

 
(166
)
 
97,925

Loss (gain) on disposal of operating assets
(112
)
 
(1,584
)
 
—

 
—

 
—

 
—

 
—

 
(1,696
)
Corporate expenses
—

 
—

 
—

 
—

 
—

 
26,647

 
—

 
26,647

Acquisition transaction expenses
1,109

 
695

 
247

 
—

 
—

 
282

 
—

 
2,333

Operating income (loss)
$
49,867

 
$
30,468

 
$
9,148

 
$
86,718

 
$
1,974

 
$
(27,571
)
 
$
—

 
$
150,604

Intersegment revenue
$
48,737

 
$
690

 
$
6,499

 
$
—

 
$
—

 
$
—

 
$
(55,926
)
 
$
—

Three Months Ended September 30, 2013
 
 
 
 
 
 
 
 
 
 
Revenue
$
1,726,986

 
$
356,809

 
$
111,060

 
$
110,217

 
$
793

 
$
—

 
$
(43,629
)
 
$
2,262,236

Direct operating expenses
1,487,856

 
166,509

 
69,231

 
15,112

 
3,109

 
—

 
(43,086
)
 
1,698,731

 
Concerts
 
Ticketing
 
Artist
Nation
 
Sponsorship
& Advertising
 
Other
 
Corporate
 
Eliminations
 
Consolidated
 
 
 
 
 
 
 
(in thousands)
 
 
 
 
 
 
Selling, general and administrative expenses
170,005

 
112,940

 
29,348

 
11,979

 
733

 
—

 
—

 
325,005

Depreciation and amortization
32,821

 
49,150

 
10,736

 
(56
)
 
11

 
610

 
(543
)
 
92,729

Loss (gain) on disposal of operating assets
(9,035
)
 
(27
)
 
2

 
—

 
—

 
—

 
—

 
(9,060
)
Corporate expenses
—

 
—

 
—

 
—

 
—

 
26,442

 
—

 
26,442

Acquisition transaction expenses
745

 
221

 
(57
)
 
—

 
—

 
1,443

 
—

 
2,352

Operating income (loss)
$
44,594

 
$
28,016

 
$
1,800

 
$
83,182

 
$
(3,060
)
 
$
(28,495
)
 
$
—

 
$
126,037

Intersegment revenue
$
36,535

 
$
861

 
$
6,233

 
$
—

 
$
—

 
$
—

 
$
(43,629
)
 
$
—

Nine Months Ended September 30, 2014
 
 
 
 
 
 
 
 
 
 
 
 
Revenue
$
3,760,118

 
$
1,111,592

 
$
282,653

 
$
230,905

 
$
2,377

 
$
—

 
$
(92,536
)
 
$
5,295,109

Direct operating expenses
3,145,174

 
543,408

 
164,960

 
31,593

 
(1,792
)
 
—

 
(90,977
)
 
3,792,366

Selling, general and administrative expenses
503,221

 
339,385

 
95,222

 
37,263

 
2,915

 
—

 
—

 
978,006

Depreciation and amortization
84,864

 
142,472

 
25,934

 
3,207

 
31

 
1,783

 
(1,559
)
 
256,732

Loss (gain) on disposal of operating assets
(3,347
)
 
(1,701
)
 
34

 
—

 
—

 
37

 
—

 
(4,977
)
Corporate expenses
—

 
—

 
—

 
—

 
—

 
73,538

 
—

 
73,538

Acquisition transaction expenses
1,892

 
758

 
435

 
—

 
—

 
2,377

 
—

 
5,462

Operating income (loss)
$
28,314

 
$
87,270

 
$
(3,932
)
 
$
158,842

 
$
1,223

 
$
(77,735
)
 
$
—

 
$
193,982

Intersegment revenue
$
81,771

 
$
1,150

 
$
9,615

 
$
—

 
$
—

 
$
—

 
$
(92,536
)
 
$
—

Capital expenditures
$
24,647

 
$
59,791

 
$
1,503

 
$
579

 
$
6

 
$
5,464

 
$
—

 
$
91,990

 
Concerts
 
Ticketing
 
Artist
Nation
 
Sponsorship
& Advertising
 
Other
 
Corporate
 
Eliminations
 
Consolidated
 
 
 
 
 
 
 
(in thousands)
 
 
 
 
 
 
Nine Months Ended September 30, 2013
 
 
 
 
 
 
 
 
 
 
 
 
Revenue
$
3,433,527

 
$
1,019,771

 
$
261,070

 
$
221,604

 
$
2,377

 
$
—

 
$
(72,902
)
 
$
4,865,447

Direct operating expenses
2,870,584

 
481,592

 
169,563

 
35,287

 
(62
)
 
—

 
(71,381
)
 
3,485,583

Selling, general and administrative expenses
466,840

 
326,799

 
71,862

 
32,626

 
2,119

 
—

 
—

 
900,246

Depreciation and amortization
96,591

 
128,648

 
30,906

 
682

 
196

 
2,080

 
(1,521
)
 
257,582

Loss (gain) on disposal of operating assets
(43,497
)
 
(47
)
 
681

 
—

 
7

 
—

 
—

 
(42,856
)
Corporate expenses
—

 
—

 
—

 
—

 
—

 
68,909

 
—

 
68,909

Acquisition transaction expenses
1,292

 
245

 
88

 
—

 
—

 
3,704

 
—

 
5,329

Operating income (loss)
$
41,717

 
$
82,534

 
$
(12,030
)
 
$
153,009

 
$
117

 
$
(74,693
)
 
$
—

 
$
190,654

Intersegment revenue
$
63,502

 
$
1,842

 
$
7,558

 
$
—

 
$
—

 
$
—

 
$
(72,902
)
 
$
—

Capital expenditures
$
38,517

 
$
62,145

 
$
483

 
$
653

 
$
—

 
$
182

 
$
—

 
$
101,980