Quarterly report pursuant to Section 13 or 15(d)

LONG-LIVED ASSETS

v2.4.1.9
LONG-LIVED ASSETS
 3 Months Ended
Mar. 31, 2015
LONG-LIVED ASSETS [Abstract]  
LONG-LIVED ASSETS
LONG-LIVED ASSETS
Definite-lived Intangible Assets
The Company has definite-lived intangible assets which are amortized over the shorter of either the lives of the respective agreements or the period of time the assets are expected to contribute to the Company’s future cash flows. The amortization is recognized on either a straight-line or expected cash flows basis.
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, 2015:
 
Revenue-
generating
contracts
 
Client /
vendor
relationships
 
Non-compete
agreements
 
Venue
management
and
leaseholds
 
Technology
 
Trademarks
and
naming
rights
 
Other
 
Total
 
(in thousands)
Balance as of December 31, 2014:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gross carrying amount
$
635,127

 
$
355,992

 
$
123,552

 
$
83,322

 
$
15,330

 
$
24,266

 
$
3,581

 
$
1,241,170

Accumulated amortization
(272,071
)
 
(123,195
)
 
(98,512
)
 
(50,490
)
 
(4,246
)
 
(8,701
)
 
(1,242
)
 
(558,457
)
Net
363,056

 
232,797

 
25,040

 
32,832

 
11,084

 
15,565

 
2,339

 
682,713

Gross carrying amount:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Acquisitions— current year
10,486

 
15,000

 
—

 
—

 
—

 
—

 
—

 
25,486

Acquisitions— prior year
6,424

 
(1,817
)
 
—

 
—

 
10

 
—

 
—

 
4,617

Foreign exchange
(15,499
)
 
(6,069
)
 
—

 
(1,865
)
 
(281
)
 
(593
)
 
—

 
(24,307
)
Other (1)
(5,100
)
 
—

 
—

 
—

 
—

 
628

 
—

 
(4,472
)
Net change
(3,689
)
 
7,114

 
—

 
(1,865
)
 
(271
)
 
35

 
—

 
1,324

Accumulated amortization:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amortization
(13,757
)
 
(12,334
)
 
(2,952
)
 
(2,034
)
 
(824
)
 
(598
)
 
(100
)
 
(32,599
)
Foreign exchange
6,607

 
1,165

 
—

 
1,047

 
7

 
331

 
—

 
9,157

Other (1)
5,024

 
—

 
—

 
—

 
—

 
(621
)
 
—

 
4,403

Net change
(2,126
)
 
(11,169
)
 
(2,952
)
 
(987
)
 
(817
)
 
(888
)
 
(100
)
 
(19,039
)
Balance as of March 31, 2015:
 
 
 
 
 
 
 
 
 
 
 
 
Gross carrying amount
631,438

 
363,106

 
123,552

 
81,457

 
15,059

 
24,301

 
3,581

 
1,242,494

Accumulated amortization
(274,197
)
 
(134,364
)
 
(101,464
)
 
(51,477
)
 
(5,063
)
 
(9,589
)
 
(1,342
)
 
(577,496
)
Net
$
357,241

 
$
228,742

 
$
22,088

 
$
29,980

 
$
9,996

 
$
14,712

 
$
2,239

 
$
664,998

_________
(1) 
Other includes net downs of fully amortized or impaired assets.
Included in the current year acquisitions amount above of $25.5 million are client/vendor relationship intangibles primarily associated with the acquisition of a controlling interest in an artist management business located in the United States and revenue-generating contracts primarily associated with the acquisitions of controlling interests in a festival promoter located in Sweden and a concert promoter located in Thailand.
The 2015 additions to definite-lived intangible assets from acquisitions have weighted-average lives as follows:
  
Weighted-
Average
Life (years)
 
 
Revenue-generating contracts
5
Client/vendor relationships
8
All categories
7

Amortization of definite-lived intangible assets for the three months ended March 31, 2015 and 2014 was $32.6 million and $34.3 million, respectively. Amortization related to nonrecoupable ticketing contract advances for the three months ended March 31, 2015 and 2014 was $19.6 million and $17.4 million, respectively.
As acquisitions and dispositions occur in the future and the valuations of intangible assets for recent acquisitions are completed, amortization may vary. Therefore, the expense to date is not necessarily indicative of the expense expected for the full year.
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, 2015:
 
Concerts
 
Ticketing
 
Artist
Nation
 
Sponsorship
&  Advertising
 
Total
 
(in thousands)
Balance as of December 31, 2014:
 
 
 
 
 
 
 
 
 
Goodwill
$
577,891

 
$
657,631

 
$
345,513

 
$
302,865

 
$
1,883,900

Accumulated impairment losses
(386,915
)
 
—

 
(17,948
)
 
—

 
(404,863
)
                 Net
190,976

 
657,631

 
327,565

 
302,865

 
1,479,037

 
 
 
 
 
 
 
 
 
 
Acquisitions—current year
5,465

 
—

 
4,800

 
2,642

 
12,907

Acquisitions—prior year
(42,759
)
 
7,055

 
4,225

 
(6,856
)
 
(38,335
)
Foreign exchange
(8,590
)
 
(8,345
)
 
(1,253
)
 
(13,803
)
 
(31,991
)
 
 
 
 
 
 
 
 
 
 
Balance as of March 31, 2015:
 
 
 
 
 
 
 
 
 
Goodwill
532,007

 
656,341

 
353,285

 
284,848

 
1,826,481

Accumulated impairment losses
(386,915
)
 
—

 
(17,948
)
 
—

 
(404,863
)
                 Net
$
145,092

 
$
656,341

 
$
335,337

 
$
284,848

 
$
1,421,618


Included in the current year acquisitions amount above of $12.9 million is goodwill primarily associated with the acquisitions of controlling interests in an artist management business located in the United States and a festival promoter located in Sweden.
Included in the prior year acquisitions amount above is a decrease of $38.3 million of goodwill primarily associated with the acquisition of a controlling interest in a festival and concert promoter located in the United States.
The Company is in the process of finalizing its acquisition accounting for recent acquisitions which could result in a change to the associated purchase price allocations, including goodwill.