x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 20-3247759 | |
(State of Incorporation) | (I.R.S. Employer Identification No.) |
Large accelerated filer | x | Accelerated filer | ¨ | ||
Non-accelerated filer | ¨ (Do not check if a smaller reporting company) | Smaller reporting company | ¨ |
Page | ||
PART I—FINANCIAL INFORMATION | ||
Item 1. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
PART II—OTHER INFORMATION | ||
Item 1. | ||
Item 1A. | ||
Item 2. | ||
Item 3. | ||
Item 5. | ||
Item 6. |
AOCI | Accumulated other comprehensive income (loss) |
AOI | Adjusted operating income (loss) |
Azoff Trust | The Azoff Family Trust of 1997, of which Irving Azoff is co-Trustee |
Clear Channel | Clear Channel Communications, Inc. |
Company | Live Nation Entertainment, Inc. and subsidiaries |
Coppel | Michael Coppel Ventures Pty Ltd |
CTS | CTS Eventim AG |
FASB | Financial Accounting Standards Board |
GAAP | United States Generally Accepted Accounting Principles |
Live Nation | Live Nation Entertainment, Inc., formerly known as Live Nation, Inc., and subsidiaries |
Merger | Merger between Live Nation, Inc. and Ticketmaster Entertainment, Inc. announced in February 2009 and consummated in January 2010 |
MSG | The Madison Square Garden Company |
SEC | United States Securities and Exchange Commission |
Separation | The contribution and transfer by Clear Channel of substantially all of its entertainment assets and liabilities to Live Nation |
Ticketmaster | For periods prior to May 6, 2010, Ticketmaster means Ticketmaster Entertainment LLC and its predecessor companies (including without limitation Ticketmaster Entertainment, Inc.); for periods on and after May 6, 2010, Ticketmaster means the Ticketmaster ticketing business of the Company |
TicketsNow | TNow Entertainment Group, Inc. |
June 30, 2013 | December 31, 2012 | ||||||
(in thousands) | |||||||
ASSETS | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | 1,385,260 | $ | 1,001,055 | |||
Accounts receivable, less allowance of $20,175 and $19,794, respectively | 634,509 | 415,790 | |||||
Prepaid expenses | 607,376 | 359,936 | |||||
Other current assets | 60,212 | 36,031 | |||||
Total current assets | 2,687,357 | 1,812,812 | |||||
Property, plant and equipment | |||||||
Land, buildings and improvements | 794,902 | 852,175 | |||||
Computer equipment and capitalized software | 372,704 | 338,919 | |||||
Furniture and other equipment | 199,478 | 200,743 | |||||
Construction in progress | 55,625 | 56,822 | |||||
1,422,709 | 1,448,659 | ||||||
Less accumulated depreciation | 730,014 | 726,873 | |||||
692,695 | 721,786 | ||||||
Intangible assets | |||||||
Definite-lived intangible assets, net | 668,367 | 724,463 | |||||
Indefinite-lived intangible assets | 375,991 | 377,463 | |||||
Goodwill | 1,369,062 | 1,357,827 | |||||
Investments in nonconsolidated affiliates | 52,438 | 46,160 | |||||
Other long-term assets | 236,901 | 250,295 | |||||
Total assets | $ | 6,082,811 | $ | 5,290,806 | |||
LIABILITIES AND EQUITY | |||||||
Current liabilities | |||||||
Accounts payable, client accounts | $ | 622,448 | $ | 557,953 | |||
Accounts payable | 167,818 | 102,718 | |||||
Accrued expenses | 631,216 | 626,723 | |||||
Deferred revenue | 1,018,135 | 402,002 | |||||
Current portion of long-term debt | 61,658 | 62,050 | |||||
Other current liabilities | 15,274 | 16,726 | |||||
Total current liabilities | 2,516,549 | 1,768,172 | |||||
Long-term debt, net | 1,662,035 | 1,677,955 | |||||
Long-term deferred income taxes | 192,821 | 199,596 | |||||
Other long-term liabilities | 87,409 | 94,409 | |||||
Commitments and contingent liabilities | |||||||
Redeemable noncontrolling interests | 78,759 | 42,100 | |||||
Stockholders’ equity | |||||||
Common stock | 1,959 | 1,877 | |||||
Additional paid-in capital | 2,355,798 | 2,272,882 | |||||
Accumulated deficit | (913,527 | ) | (908,418 | ) | |||
Accumulated other comprehensive loss | (51,959 | ) | (10,923 | ) | |||
Total Live Nation Entertainment, Inc. stockholders’ equity | 1,392,271 | 1,355,418 | |||||
Noncontrolling interests | 152,967 | 153,156 | |||||
Total equity | 1,545,238 | 1,508,574 | |||||
Total liabilities and equity | $ | 6,082,811 | $ | 5,290,806 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
(in thousands except share and per share data) | |||||||||||||||
Revenue | $ | 1,679,513 | $ | 1,550,677 | $ | 2,603,211 | $ | 2,418,674 | |||||||
Operating expenses: | |||||||||||||||
Direct operating expenses | 1,209,918 | 1,106,869 | 1,786,852 | 1,645,583 | |||||||||||
Selling, general and administrative expenses | 295,719 | 280,943 | 575,241 | 549,078 | |||||||||||
Depreciation and amortization | 82,688 | 94,259 | 164,853 | 173,972 | |||||||||||
Loss (gain) on disposal of operating assets | (30,199 | ) | 93 | (33,796 | ) | (195 | ) | ||||||||
Corporate expenses | 21,812 | 27,415 | 42,467 | 50,632 | |||||||||||
Acquisition transaction expenses | 1,769 | (1,870 | ) | 2,977 | (561 | ) | |||||||||
Operating income | 97,806 | 42,968 | 64,617 | 165 | |||||||||||
Interest expense | 30,041 | 29,488 | 58,192 | 59,198 | |||||||||||
Interest income | (890 | ) | (931 | ) | (2,658 | ) | (1,831 | ) | |||||||
Equity in earnings of nonconsolidated affiliates | (2,629 | ) | (1,801 | ) | (5,211 | ) | (5,682 | ) | |||||||
Other expense, net | 3,868 | 5,424 | 7,506 | 3,642 | |||||||||||
Income (loss) before income taxes | 67,416 | 10,788 | 6,788 | (55,162 | ) | ||||||||||
Income tax expense | 8,401 | 5,228 | 11,960 | 9,506 | |||||||||||
Net income (loss) | 59,015 | 5,560 | (5,172 | ) | (64,668 | ) | |||||||||
Net income (loss) attributable to noncontrolling interests | 885 | (2,132 | ) | (63 | ) | (3,210 | ) | ||||||||
Net income (loss) attributable to common stockholders of Live Nation Entertainment, Inc. | $ | 58,130 | $ | 7,692 | $ | (5,109 | ) | $ | (61,458 | ) | |||||
Basic and diluted net income (loss) per common share attributable to common stockholders of Live Nation Entertainment, Inc. | $ | 0.30 | $ | 0.04 | $ | (0.03 | ) | $ | (0.33 | ) | |||||
Weighted average common shares outstanding: | |||||||||||||||
Basic | 193,069,783 | 186,893,774 | 190,960,206 | 186,707,769 | |||||||||||
Diluted | 196,770,405 | 189,325,338 | 190,960,206 | 186,707,769 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
(in thousands) | |||||||||||||||
Net income (loss) | $ | 59,015 | $ | 5,560 | $ | (5,172 | ) | $ | (64,668 | ) | |||||
Other comprehensive income (loss), net of tax: | |||||||||||||||
Unrealized gain (loss) on cash flow hedges | (45 | ) | (83 | ) | 25 | (88 | ) | ||||||||
Realized loss on cash flow hedges | 449 | — | 457 | — | |||||||||||
Foreign currency translation adjustments | (7,261 | ) | (34,188 | ) | (41,518 | ) | (8,865 | ) | |||||||
Comprehensive income (loss) | 52,158 | (28,711 | ) | (46,208 | ) | (73,621 | ) | ||||||||
Comprehensive income (loss) attributable to noncontrolling interests | 885 | (2,132 | ) | (63 | ) | (3,210 | ) | ||||||||
Comprehensive income (loss) attributable to common stockholders of Live Nation Entertainment, Inc. | $ | 51,273 | $ | (26,579 | ) | $ | (46,145 | ) | $ | (70,411 | ) |
Six Months Ended June 30, | |||||||
2013 | 2012 | ||||||
(in thousands) | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||
Net loss | $ | (5,172 | ) | $ | (64,668 | ) | |
Reconciling items: | |||||||
Depreciation | 59,410 | 59,691 | |||||
Amortization | 105,443 | 114,281 | |||||
Deferred income tax benefit | (6,305 | ) | (6,946 | ) | |||
Amortization of debt issuance costs and discount/premium, net | 10,421 | 6,881 | |||||
Non-cash compensation expense | 14,119 | 17,919 | |||||
Gain on disposal of operating assets | (33,796 | ) | (195 | ) | |||
Equity in earnings of nonconsolidated affiliates | (5,211 | ) | (5,682 | ) | |||
Other, net | 1,468 | (1,773 | ) | ||||
Changes in operating assets and liabilities, net of effects of acquisitions and dispositions: | |||||||
Increase in accounts receivable | (205,361 | ) | (103,344 | ) | |||
Increase in prepaid expenses | (230,247 | ) | (305,090 | ) | |||
Increase in other assets | (65,252 | ) | (62,284 | ) | |||
Increase in accounts payable, accrued expenses and other liabilities | 152,384 | 94,717 | |||||
Increase in deferred revenue | 588,446 | 566,621 | |||||
Net cash provided by operating activities | 380,347 | 310,128 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||
Distributions from nonconsolidated affiliates | 2,740 | 703 | |||||
Investments made in nonconsolidated affiliates | (3,032 | ) | (2,858 | ) | |||
Purchases of property, plant and equipment | (76,685 | ) | (62,785 | ) | |||
Proceeds from disposal of operating assets, net of cash divested | 81,070 | 5,648 | |||||
Cash paid for acquisitions, net of cash acquired | (23,766 | ) | (68,093 | ) | |||
Purchases of intangible assets | (17 | ) | (11,469 | ) | |||
(Increase) decrease other, net | (1,052 | ) | 297 | ||||
Net cash used in investing activities | (20,742 | ) | (138,557 | ) | |||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||
Proceeds from long-term debt, net of debt issuance costs | 89,369 | 58,270 | |||||
Payments on long-term debt | (106,388 | ) | (44,222 | ) | |||
Contributions from noncontrolling interests | 267 | 130 | |||||
Distributions to noncontrolling interests | (1,936 | ) | (8,189 | ) | |||
Proceeds from exercise of stock options | 73,449 | 859 | |||||
Payments for deferred and contingent consideration | (750 | ) | (10,585 | ) | |||
Net cash provided by (used in) financing activities | 54,011 | (3,737 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents | (29,411 | ) | (7,048 | ) | |||
Net increase in cash and cash equivalents | 384,205 | 160,786 | |||||
Cash and cash equivalents at beginning of period | 1,001,055 | 844,253 | |||||
Cash and cash equivalents at end of period | $ | 1,385,260 | $ | 1,005,039 |
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, 2012: | |||||||||||||||||||||||||||||||
Gross carrying amount | $ | 515,071 | $ | 261,655 | $ | 168,418 | $ | 118,259 | $ | 101,424 | $ | 18,423 | $ | 6,452 | $ | 1,189,702 | |||||||||||||||
Accumulated amortization | (197,549 | ) | (39,807 | ) | (111,369 | ) | (51,891 | ) | (53,295 | ) | (6,678 | ) | (4,650 | ) | (465,239 | ) | |||||||||||||||
Net | 317,522 | 221,848 | 57,049 | 66,368 | 48,129 | 11,745 | 1,802 | 724,463 | |||||||||||||||||||||||
Gross carrying amount: | |||||||||||||||||||||||||||||||
Acquisitions—current year | 10,892 | 4,540 | — | — | — | 22,947 | — | 38,379 | |||||||||||||||||||||||
Acquisitions—prior year | (1,028 | ) | — | — | — | — | — | — | (1,028 | ) | |||||||||||||||||||||
Dispositions | — | (1,354 | ) | — | — | — | — | — | (1,354 | ) | |||||||||||||||||||||
Foreign exchange | (7,537 | ) | (7,359 | ) | (104 | ) | (2,163 | ) | (339 | ) | (481 | ) | (56 | ) | (18,039 | ) | |||||||||||||||
Other (1) | (14,769 | ) | — | (14,257 | ) | — | — | 405 | (3,031 | ) | (31,652 | ) | |||||||||||||||||||
(12,442 | ) | (4,173 | ) | (14,361 | ) | (2,163 | ) | (339 | ) | 22,871 | (3,087 | ) | (13,694 | ) | |||||||||||||||||
Accumulated amortization: | |||||||||||||||||||||||||||||||
Amortization | (23,251 | ) | (22,781 | ) | (10,896 | ) | (10,803 | ) | (11,438 | ) | (2,131 | ) | (244 | ) | (81,544 | ) | |||||||||||||||
Dispositions | — | 61 | — | — | — | — | — | 61 | |||||||||||||||||||||||
Foreign exchange | 3,593 | 968 | 91 | 754 | 202 | 114 | 51 | 5,773 | |||||||||||||||||||||||
Other (1) | 14,745 | — | 14,757 | — | — | 775 | 3,031 | 33,308 | |||||||||||||||||||||||
(4,913 | ) | (21,752 | ) | 3,952 | (10,049 | ) | (11,236 | ) | (1,242 | ) | 2,838 | (42,402 | ) | ||||||||||||||||||
Balance as of June 30, 2013: | |||||||||||||||||||||||||||||||
Gross carrying amount | 502,629 | 257,482 | 154,057 | 116,096 | 101,085 | 41,294 | 3,365 | 1,176,008 | |||||||||||||||||||||||
Accumulated amortization | (202,462 | ) | (61,559 | ) | (107,417 | ) | (61,940 | ) | (64,531 | ) | (7,920 | ) | (1,812 | ) | (507,641 | ) | |||||||||||||||
Net | $ | 300,167 | $ | 195,923 | $ | 46,640 | $ | 54,156 | $ | 36,554 | $ | 33,374 | $ | 1,553 | $ | 668,367 |
(1) | Other includes a reclassification from indefinite-lived intangible assets due to a change in the asset’s estimated useful life and netdowns of fully amortized assets. |
Weighted- Average Life (years) | |
Revenue-generating contracts | 7 |
Client/vendor relationships | 7 |
Trademarks and naming rights | 10 |
All categories | 9 |
Concerts | Ticketing | Artist Nation | Sponsorship & Advertising | Other | Total | ||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Balance as of December 31, 2012: | |||||||||||||||||||||||
Goodwill | $ | 468,891 | $ | 637,642 | $ | 266,820 | $ | 254,376 | $ | 13,037 | $ | 1,640,766 | |||||||||||
Accumulated impairment losses | (269,902 | ) | — | — | — | (13,037 | ) | (282,939 | ) | ||||||||||||||
198,989 | 637,642 | 266,820 | 254,376 | — | 1,357,827 | ||||||||||||||||||
Acquisitions—current year | 47,189 | — | — | 866 | — | 48,055 | |||||||||||||||||
Acquisitions—prior year | (9,999 | ) | — | 6,849 | — | — | (3,150 | ) | |||||||||||||||
Dispositions | (3,691 | ) | — | (251 | ) | — | — | (3,942 | ) | ||||||||||||||
Foreign exchange | (16,763 | ) | (1,076 | ) | (275 | ) | (11,614 | ) | — | (29,728 | ) | ||||||||||||
Balance as of June 30, 2013: | |||||||||||||||||||||||
Goodwill | 485,627 | 636,566 | 273,143 | 243,628 | 13,037 | 1,652,001 | |||||||||||||||||
Accumulated impairment losses | (269,902 | ) | — | — | — | (13,037 | ) | (282,939 | ) | ||||||||||||||
$ | 215,725 | $ | 636,566 | $ | 273,143 | $ | 243,628 | $ | — | $ | 1,369,062 |
Six Months Ended June 30, | |||||||
2013 | 2012 | ||||||
(in thousands) | |||||||
Revenue | $ | 28,203 | $ | 28,929 | |||
Operating income | $ | 14,956 | $ | 15,399 | |||
Net income | $ | 11,693 | $ | 12,720 |
Divested Asset | Segment | Loss (Gain) on Disposal of Operating Assets | Current Assets | Noncurrent Assets | Current Liabilities | Noncurrent Liabilities | ||||||||||||||||
(in thousands) | ||||||||||||||||||||||
2013 Divestiture | ||||||||||||||||||||||
New York theatrical theater | Concerts | $ | (21,887 | ) | $ | — | $ | 35,785 | $ | — | $ | 3,636 | ||||||||||
2012 Divestiture | ||||||||||||||||||||||
Ohio amphitheater | Concerts | $ | (444 | ) | $ | — | $ | 5,400 | $ | 444 | $ | — |
Fair Value Measurements at June 30, 2013 | Fair Value Measurements at December 31, 2012 | ||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||
Cash equivalents | $ | 227,138 | $ | — | $ | — | $ | 227,138 | $ | 61,996 | $ | — | $ | — | $ | 61,996 | |||||||||||||||
Forward currency contracts | — | 3,509 | — | 3,509 | — | 81 | — | 81 | |||||||||||||||||||||||
Stock options | — | — | 17 | 17 | — | — | 204 | 204 | |||||||||||||||||||||||
Total | $ | 227,138 | $ | 3,509 | $ | 17 | $ | 230,664 | $ | 61,996 | $ | 81 | $ | 204 | $ | 62,281 | |||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||||
Interest rate swaps | $ | — | $ | 1,980 | $ | — | $ | 1,980 | $ | — | $ | 2,811 | $ | — | $ | 2,811 | |||||||||||||||
Forward currency contracts | — | 228 | — | 228 | — | 625 | — | 625 | |||||||||||||||||||||||
Contingent consideration | — | — | 5,806 | 5,806 | — | — | 6,718 | 6,718 | |||||||||||||||||||||||
Total | $ | — | $ | 2,208 | $ | 5,806 | $ | 8,014 | $ | — | $ | 3,436 | $ | 6,718 | $ | 10,154 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
(in thousands) | |||||||||||||||
Director related-party revenue | $ | — | $ | 3,423 | $ | 2,475 | $ | 8,169 | |||||||
Director related-party expenses | $ | 1,473 | $ | 6,360 | $ | 3,527 | $ | 9,604 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
(in thousands) | |||||||||||||||
Other related-parties revenue | $ | 1,627 | $ | 861 | $ | 2,954 | $ | 2,315 | |||||||
Other related-parties expenses | $ | 2,677 | $ | 2,158 | $ | 7,827 | $ | 4,034 |
Live Nation Entertainment, Inc. Stockholders’ Equity | Noncontrolling Interests | Total Equity | Redeemable Noncontrolling Interests | ||||||||||||
(in thousands) | (in thousands) | ||||||||||||||
Balances at December 31, 2012 | $ | 1,355,418 | $ | 153,156 | $ | 1,508,574 | $ | 42,100 | |||||||
Non-cash and stock-based compensation | 14,119 | — | 14,119 | — | |||||||||||
Common stock issued under stock plans, net of shares withheld for employee taxes | (4,000 | ) | — | (4,000 | ) | — | |||||||||
Exercise of stock options | 73,449 | — | 73,449 | — | |||||||||||
Acquisitions | — | 146 | 146 | 38,561 | |||||||||||
Acquisitions of noncontrolling interests | (410 | ) | 410 | — | — | ||||||||||
Sales of noncontrolling interests | — | (399 | ) | (399 | ) | ||||||||||
Redeemable noncontrolling interests fair value adjustments | (160 | ) | — | (160 | ) | 160 | |||||||||
Noncontrolling interests contributions | — | 267 | 267 | — | |||||||||||
Cash distributions | — | (1,936 | ) | (1,936 | ) | — | |||||||||
Other | — | (612 | ) | (612 | ) | (64 | ) | ||||||||
Comprehensive income (loss): | |||||||||||||||
Net income (loss) | (5,109 | ) | 1,935 | (3,174 | ) | (1,998 | ) | ||||||||
Unrealized gain on cash flow hedges | 25 | — | 25 | — | |||||||||||
Realized loss on cash flow hedges | 457 | — | 457 | — | |||||||||||
Foreign currency translation adjustments | (41,518 | ) | — | (41,518 | ) | — | |||||||||
Balances at June 30, 2013 | $ | 1,392,271 | $ | 152,967 | $ | 1,545,238 | $ | 78,759 |
Gains and Losses On Cash Flow Hedges | Defined Benefit Pension Items | Foreign Currency Items | Total | |||||||||||||
(in thousands) | ||||||||||||||||
Balance at December 31, 2012 | $ | (595 | ) | $ | (611 | ) | $ | (9,717 | ) | $ | (10,923 | ) | ||||
Other comprehensive income (loss) before reclassifications | 25 | — | (41,518 | ) | (41,493 | ) | ||||||||||
Amount reclassified from AOCI | 457 | — | — | 457 | ||||||||||||
Net other comprehensive income (loss) | 482 | — | (41,518 | ) | (41,036 | ) | ||||||||||
Balance at June 30, 2013 | $ | (113 | ) | $ | (611 | ) | $ | (51,235 | ) | $ | (51,959 | ) |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
(in thousands, except for per share data) | |||||||||||||||
Net income (loss) attributable to common stockholders of Live Nation Entertainment, Inc.—basic and diluted | $ | 58,130 | $ | 7,692 | $ | (5,109 | ) | $ | (61,458 | ) | |||||
Weighted average common shares—basic | 193,070 | 186,894 | 190,960 | 186,708 | |||||||||||
Effect of dilutive securities: | |||||||||||||||
Stock options, restricted stock and warrants | 3,700 | 2,431 | — | — | |||||||||||
2.875% convertible senior notes | — | — | — | — | |||||||||||
Weighted average common shares—diluted | 196,770 | 189,325 | 190,960 | 186,708 | |||||||||||
Basic and diluted net income (loss) per common share | $ | 0.30 | $ | 0.04 | $ | (0.03 | ) | $ | (0.33 | ) |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||
(in thousands) | |||||||||||
Options to purchase shares of common stock | 6,734 | 15,981 | 17,695 | 21,340 | |||||||
Restricted stock awards and units—unvested | 917 | 3,179 | 2,594 | 3,935 | |||||||
Warrants | 500 | 500 | 500 | 500 | |||||||
Conversion shares related to 2.875% convertible senior notes | 8,105 | 8,105 | 8,105 | 8,105 | |||||||
Number of anti-dilutive potentially issuable shares excluded from diluted common shares outstanding | 16,256 | 27,765 | 28,894 | 33,880 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
(in thousands) | |||||||||||||||
Selling, general and administrative expenses | $ | 3,601 | $ | 3,353 | $ | 6,251 | $ | 6,644 | |||||||
Corporate expenses | 4,213 | 5,587 | 7,868 | 11,275 | |||||||||||
Total | $ | 7,814 | $ | 8,940 | $ | 14,119 | $ | 17,919 |
Concerts | Ticketing | Artist Nation | Sponsorship & Advertising | Other | Corporate | Eliminations | Consolidated | ||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||
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 | ) | $ | — | ||||||||||||||
Three Months Ended June 30, 2012 | |||||||||||||||||||||||||||||||
Revenue | $ | 1,076,024 | $ | 328,939 | $ | 109,241 | $ | 61,278 | $ | 422 | $ | — | $ | (25,227 | ) | $ | 1,550,677 | ||||||||||||||
Direct operating expenses | 896,083 | 154,367 | 73,371 | 9,337 | (1,908 | ) | — | (24,381 | ) | 1,106,869 | |||||||||||||||||||||
Selling, general and administrative expenses | 145,067 | 104,673 | 21,306 | 9,192 | 705 | — | — | 280,943 | |||||||||||||||||||||||
Depreciation and amortization | 44,134 | 38,803 | 11,456 | (18 | ) | 11 | 719 | (846 | ) | 94,259 | |||||||||||||||||||||
Loss (gain) on disposal of operating assets | 1 | (65 | ) | — | — | 157 | — | — | 93 | ||||||||||||||||||||||
Corporate expenses | — | — | — | — | — | 27,415 | — | 27,415 | |||||||||||||||||||||||
Acquisition transaction expenses | (2,219 | ) | (315 | ) | 351 | — | — | 313 | — | (1,870 | ) | ||||||||||||||||||||
Operating income (loss) | $ | (7,042 | ) | $ | 31,476 | $ | 2,757 | $ | 42,767 | $ | 1,457 | $ | (28,447 | ) | $ | — | $ | 42,968 | |||||||||||||
Intersegment revenue | $ | 20,989 | $ | 2,382 | $ | 1,856 | $ | — | $ | — | $ | — | $ | (25,227 | ) | $ | — | ||||||||||||||
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 | $ | 11,891 | $ | 42,993 | $ | 282 | $ | 300 | $ | — | $ | (171 | ) | $ | — | $ | 55,295 | ||||||||||||||
Six Months Ended June 30, 2012 | |||||||||||||||||||||||||||||||
Revenue | $ | 1,524,723 | $ | 655,483 | $ | 170,646 | $ | 97,406 | $ | 1,198 | $ | — | $ | (30,782 | ) | $ | 2,418,674 | ||||||||||||||
Direct operating expenses | 1,239,436 | 306,242 | 114,009 | 16,058 | (423 | ) | — | (29,739 | ) | 1,645,583 | |||||||||||||||||||||
Selling, general and administrative expenses | 276,685 | 208,001 | 45,394 | 17,981 | 1,017 | — | — | 549,078 | |||||||||||||||||||||||
Depreciation and amortization | 72,496 | 77,969 | 23,068 | 21 | 23 | 1,438 | (1,043 | ) | 173,972 | ||||||||||||||||||||||
Loss (gain) on disposal of operating assets | (469 | ) | (155 | ) | — | — | 429 | — | — | (195 | ) | ||||||||||||||||||||
Corporate expenses | — | — | — | — | — | 50,632 | — | 50,632 | |||||||||||||||||||||||
Acquisition transaction expenses | (1,405 | ) | (335 | ) | 401 | — | — | 778 | — | (561 | ) | ||||||||||||||||||||
Operating income (loss) | $ | (62,020 | ) | $ | 63,761 | $ | (12,226 | ) | $ | 63,346 | $ | 152 | $ | (52,848 | ) | $ | — | $ | 165 | ||||||||||||
Intersegment revenue | $ | 25,038 | $ | 2,696 | $ | 3,048 | $ | — | $ | — | $ | — | $ | (30,782 | ) | $ | — | ||||||||||||||
Capital expenditures | $ | 11,458 | $ | 42,422 | $ | 414 | $ | 3,433 | $ | 4 | $ | 983 | $ | — | $ | 58,714 |
Three Months Ended June 30, | % Change | Six Months Ended June 30, | % Change | ||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||||||
Revenue | $ | 1,679,513 | $ | 1,550,677 | 8 | % | $ | 2,603,211 | $ | 2,418,674 | 8 | % | |||||||||
Operating expenses: | |||||||||||||||||||||
Direct operating expenses | 1,209,918 | 1,106,869 | 9 | % | 1,786,852 | 1,645,583 | 9 | % | |||||||||||||
Selling, general and administrative expenses | 295,719 | 280,943 | 5 | % | 575,241 | 549,078 | 5 | % | |||||||||||||
Depreciation and amortization | 82,688 | 94,259 | (12 | )% | 164,853 | 173,972 | (5 | )% | |||||||||||||
Loss (gain) on disposal of operating assets | (30,199 | ) | 93 | * | (33,796 | ) | (195 | ) | * | ||||||||||||
Corporate expenses | 21,812 | 27,415 | (20 | )% | 42,467 | 50,632 | (16 | )% | |||||||||||||
Acquisition transaction expenses | 1,769 | (1,870 | ) | * | 2,977 | (561 | ) | * | |||||||||||||
Operating income | 97,806 | 42,968 | * | 64,617 | 165 | * | |||||||||||||||
Operating margin | 5.8 | % | 2.8 | % | 2.5 | % | — | ||||||||||||||
Interest expense | 30,041 | 29,488 | 58,192 | 59,198 | |||||||||||||||||
Interest income | (890 | ) | (931 | ) | (2,658 | ) | (1,831 | ) | |||||||||||||
Equity in earnings of nonconsolidated affiliates | (2,629 | ) | (1,801 | ) | (5,211 | ) | (5,682 | ) | |||||||||||||
Other expense, net | 3,868 | 5,424 | 7,506 | 3,642 | |||||||||||||||||
Income (loss) before income taxes | 67,416 | 10,788 | 6,788 | (55,162 | ) | ||||||||||||||||
Income tax expense | 8,401 | 5,228 | 11,960 | 9,506 | |||||||||||||||||
Net income (loss) | 59,015 | 5,560 | (5,172 | ) | (64,668 | ) | |||||||||||||||
Net income (loss) attributable to noncontrolling interests | 885 | (2,132 | ) | (63 | ) | (3,210 | ) | ||||||||||||||
Net income (loss) attributable to common stockholders of Live Nation Entertainment, Inc. | $ | 58,130 | $ | 7,692 | $ | (5,109 | ) | $ | (61,458 | ) |
* | Percentages are not meaningful. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||
Concerts (1) | |||||||||||||||
Total estimated events: | |||||||||||||||
North America | 4,076 | 3,983 | 7,339 | 7,188 | |||||||||||
International | 1,842 | 1,709 | 3,464 | 3,309 | |||||||||||
Total estimated events | 5,918 | 5,692 | 10,803 | 10,497 | |||||||||||
Total estimated attendance (rounded): | |||||||||||||||
North America | 9,321,000 | 9,282,000 | 14,376,000 | 13,642,000 | |||||||||||
International | 6,021,000 | 4,877,000 | 9,071,000 | 7,728,000 | |||||||||||
Total estimated attendance | 15,342,000 | 14,159,000 | 23,447,000 | 21,370,000 | |||||||||||
Ancillary net revenue per attendee (2): | |||||||||||||||
North America amphitheaters | $ | 18.59 | $ | 18.87 | |||||||||||
International festivals | $ | 16.81 | $ | 17.83 | |||||||||||
Ticketing (3) | |||||||||||||||
Number of tickets sold (in thousands): | |||||||||||||||
Concerts | 19,526 | 18,604 | 36,197 | 35,412 | |||||||||||
Sports | 8,099 | 7,734 | 16,620 | 16,540 | |||||||||||
Arts and theater | 3,962 | 4,371 | 8,226 | 9,190 | |||||||||||
Family | 3,264 | 3,073 | 7,834 | 7,601 | |||||||||||
Other (4) | 1,417 | 1,699 | 3,138 | 3,449 | |||||||||||
36,268 | 35,481 | 72,015 | 72,192 | ||||||||||||
Gross value of tickets sold (in thousands) | $ | 2,326,378 | $ | 2,191,152 | $ | 4,508,229 | $ | 4,411,351 | |||||||
Number of customers in database (2) (rounded) | 124,265,000 | 115,071,000 | |||||||||||||
Sponsorship & Advertising | |||||||||||||||
Sponsorship revenue (in thousands) | $ | 54,322 | $ | 48,223 | $ | 82,575 | $ | 73,940 | |||||||
Online advertising revenue (in thousands) | $ | 16,918 | $ | 13,055 | $ | 28,812 | $ | 23,466 |
(1) | Events generally represent a single performance by an artist. Attendance generally represents the number of fans who were present at an event. Festivals are counted as one event in the quarter in which the festival begins but attendance is based on the days the fan was present at the festival and thus can be reported in multiple quarters. Events and attendance metrics are estimated each quarter. |
(2) | Amounts are reported as of the latest period shown. |
(3) | The number and gross value of tickets sold includes primary tickets only and excludes tickets sold for the 2012 Olympics. These metrics include tickets sold during the period regardless of event timing except for our promoted events in our owned and/or operated venues and in certain European territories where these tickets are reported as the events occur. The total number of tickets sold excludes approximately 25 million and 27 million tickets sold for the three months ended June 30, 2013 and 2012, respectively, and excludes approximately 53 million and 58 million tickets sold for the six months ended June 30, 2013 and 2012, respectively, through our venue clients’ box offices for which we do not receive a fee. |
(4) | Other category includes tickets for comedy shows, facility tours, donations, lectures, seminars and cinemas. |
Three Months Ended June 30, | % Change | Six Months Ended June 30, | % Change | ||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||||||
Revenue | $ | 1,193,006 | $ | 1,076,024 | 11 | % | $ | 1,706,541 | $ | 1,524,723 | 12 | % | |||||||||
Direct operating expenses | 992,476 | 896,083 | 11 | % | 1,382,728 | 1,239,436 | 12 | % | |||||||||||||
Selling, general and administrative expenses | 159,517 | 145,067 | 10 | % | 296,835 | 276,685 | 7 | % | |||||||||||||
Depreciation and amortization | 35,068 | 44,134 | (21 | )% | 63,770 | 72,496 | (12 | )% | |||||||||||||
Loss (gain) on disposal of operating assets | (31,332 | ) | 1 | * | (34,462 | ) | (469 | ) | * | ||||||||||||
Acquisition transaction expenses | 313 | (2,219 | ) | * | 547 | (1,405 | ) | * | |||||||||||||
Operating income (loss) | $ | 36,964 | $ | (7,042 | ) | * | $ | (2,877 | ) | $ | (62,020 | ) | 95 | % | |||||||
Operating margin | 3.1 | % | (0.7 | )% | (0.2 | )% | (4.1 | )% | |||||||||||||
Adjusted operating income ** | $ | 42,588 | $ | 36,209 | 18 | % | $ | 29,446 | $ | 11,258 | * |
* | Percentages are not meaningful. |
** | AOI is defined and reconciled to operating income (loss) below. |
Three Months Ended June 30, | % Change | Six Months Ended June 30, | % Change | ||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||||||
Revenue | $ | 337,827 | $ | 328,939 | 3 | % | $ | 662,962 | $ | 655,483 | 1 | % | |||||||||
Direct operating expenses | 160,021 | 154,367 | 4 | % | 315,083 | 306,242 | 3 | % | |||||||||||||
Selling, general and administrative expenses | 101,919 | 104,673 | (3 | )% | 213,859 | 208,001 | 3 | % | |||||||||||||
Depreciation and amortization | 36,685 | 38,803 | (5 | )% | 79,498 | 77,969 | 2 | % | |||||||||||||
Loss (gain) on disposal of operating assets | 42 | (65 | ) | * | (20 | ) | (155 | ) | * | ||||||||||||
Acquisition transaction expenses | — | (315 | ) | * | 24 | (335 | ) | * | |||||||||||||
Operating income | $ | 39,160 | $ | 31,476 | 24 | % | $ | 54,518 | $ | 63,761 | (14 | )% | |||||||||
Operating margin | 11.6 | % | 9.6 | % | 8.2 | % | 9.7 | % | |||||||||||||
Adjusted operating income ** | $ | 77,569 | $ | 71,375 | 9 | % | $ | 137,158 | $ | 143,936 | (5 | )% |
* | Percentages are not meaningful. |
** | AOI is defined and reconciled to operating income (loss) below. |
Three Months Ended June 30, | % Change | Six Months Ended June 30, | % Change | ||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||||||
Revenue | $ | 99,739 | $ | 109,241 | (9 | )% | $ | 150,010 | $ | 170,646 | (12 | )% | |||||||||
Direct operating expenses | 68,920 | 73,371 | (6 | )% | 100,332 | 114,009 | (12 | )% | |||||||||||||
Selling, general and administrative expenses | 22,476 | 21,306 | 5 | % | 42,514 | 45,394 | (6 | )% | |||||||||||||
Depreciation and amortization | 10,136 | 11,456 | (12 | )% | 20,170 | 23,068 | (13 | )% | |||||||||||||
Loss on disposal of operating assets | 1,091 | — | * | 679 | — | * | |||||||||||||||
Acquisition transaction expenses | 17 | 351 | * | 145 | 401 | * | |||||||||||||||
Operating income (loss) | $ | (2,901 | ) | $ | 2,757 | * | $ | (13,830 | ) | $ | (12,226 | ) | (13 | )% | |||||||
Operating margin | (2.9 | )% | 2.5 | % | (9.2 | )% | (7.2 | )% | |||||||||||||
Adjusted operating income ** | $ | 8,498 | $ | 14,930 | (43 | )% | $ | 7,455 | $ | 11,923 | (37 | )% |
* | Percentages are not meaningful. |
** | AOI is defined and reconciled to operating income (loss) below. |
Three Months Ended June 30, | % Change | Six Months Ended June 30, | % Change | ||||||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||||||
Revenue | $ | 71,240 | $ | 61,278 | 16 | % | $ | 111,387 | $ | 97,406 | 14 | % | |||||||||
Direct operating expenses | 13,311 | 9,337 | 43 | % | 20,175 | 16,058 | 26 | % | |||||||||||||
Selling, general and administrative expenses | 10,959 | 9,192 | 19 | % | 20,647 | 17,981 | 15 | % | |||||||||||||
Depreciation and amortization | 596 | (18 | ) | * | 738 | 21 | * | ||||||||||||||
Operating income | $ | 46,374 | $ | 42,767 | 8 | % | $ | 69,827 | $ | 63,346 | 10 | % | |||||||||
Operating margin | 65.1 | % | 69.8 | % | 62.7 | % | 65.0 | % | |||||||||||||
Adjusted operating income ** | $ | 47,159 | $ | 42,911 | 10 | % | $ | 70,919 | $ | 63,636 | 11 | % |
* | Percentages are not meaningful. |
** | AOI is defined and reconciled to operating income (loss) below. |
Adjusted operating income (loss) | Non-cash and stock- based compensation expense | Loss (gain) on disposal of operating assets | Depreciation and amortization | Acquisition expenses | Operating income (loss) | ||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Three Months Ended June 30, 2013 | |||||||||||||||||||||||
Concerts | $ | 42,588 | $ | 1,575 | $ | (31,332 | ) | $ | 35,068 | $ | 313 | $ | 36,964 | ||||||||||
Ticketing | 77,569 | 1,682 | 42 | 36,685 | — | 39,160 | |||||||||||||||||
Artist Nation | 8,498 | 155 | 1,091 | 10,136 | 17 | (2,901 | ) | ||||||||||||||||
Sponsorship & Advertising | 47,159 | 189 | — | 596 | — | 46,374 | |||||||||||||||||
Other and Eliminations | 1,663 | — | — | (475 | ) | — | 2,138 | ||||||||||||||||
Corporate | (17,599 | ) | 4,213 | — | 678 | 1,439 | (23,929 | ) | |||||||||||||||
Total | $ | 159,878 | $ | 7,814 | $ | (30,199 | ) | $ | 82,688 | $ | 1,769 | $ | 97,806 | ||||||||||
Three Months Ended June 30, 2012 | |||||||||||||||||||||||
Concerts | $ | 36,209 | $ | 1,335 | $ | 1 | $ | 44,134 | $ | (2,219 | ) | $ | (7,042 | ) | |||||||||
Ticketing | 71,375 | 1,491 | (65 | ) | 38,803 | (330 | ) | 31,476 | |||||||||||||||
Artist Nation | 14,930 | 366 | — | 11,456 | 351 | 2,757 | |||||||||||||||||
Sponsorship & Advertising | 42,911 | 161 | — | (18 | ) | 1 | 42,767 | ||||||||||||||||
Other and Eliminations | 779 | — | 157 | (835 | ) | — | 1,457 | ||||||||||||||||
Corporate | (20,226 | ) | 5,587 | — | 719 | 1,915 | (28,447 | ) | |||||||||||||||
Total | $ | 145,978 | $ | 8,940 | $ | 93 | $ | 94,259 | $ | (282 | ) | $ | 42,968 | ||||||||||
Six Months Ended June 30, 2013 | |||||||||||||||||||||||
Concerts | $ | 29,446 | $ | 2,468 | $ | (34,462 | ) | $ | 63,770 | $ | 547 | $ | (2,877 | ) | |||||||||
Ticketing | 137,158 | 3,138 | (20 | ) | 79,498 | 24 | 54,518 | ||||||||||||||||
Artist Nation | 7,455 | 291 | 679 | 20,170 | 145 | (13,830 | ) | ||||||||||||||||
Sponsorship & Advertising | 70,919 | 354 | — | 738 | — | 69,827 | |||||||||||||||||
Other and Eliminations | 2,391 | — | 7 | (793 | ) | — | 3,177 | ||||||||||||||||
Corporate | (34,599 | ) | 7,868 | — | 1,470 | 2,261 | (46,198 | ) | |||||||||||||||
Total | $ | 212,770 | $ | 14,119 | $ | (33,796 | ) | $ | 164,853 | $ | 2,977 | $ | 64,617 | ||||||||||
Six Months Ended June 30, 2012 | |||||||||||||||||||||||
Concerts | $ | 11,258 | $ | 2,656 | $ | (469 | ) | $ | 72,496 | $ | (1,405 | ) | $ | (62,020 | ) | ||||||||
Ticketing | 143,936 | 3,039 | (155 | ) | 77,969 | (678 | ) | 63,761 | |||||||||||||||
Artist Nation | 11,923 | 680 | — | 23,068 | 401 | (12,226 | ) | ||||||||||||||||
Sponsorship & Advertising | 63,636 | 269 | — | 21 | — | 63,346 | |||||||||||||||||
Other and Eliminations | (439 | ) | — | 429 | (1,020 | ) | — | 152 | |||||||||||||||
Corporate | (36,153 | ) | 11,275 | — | 1,438 | 3,982 | (52,848 | ) | |||||||||||||||
Total | $ | 194,161 | $ | 17,919 | $ | (195 | ) | $ | 173,972 | $ | 2,300 | $ | 165 |
Six Months Ended June 30, | |||||||
2013 | 2012 | ||||||
(in thousands) | |||||||
Maintenance capital expenditures | $ | 26,845 | $ | 26,657 | |||
Revenue generating capital expenditures | 28,450 | 32,057 | |||||
Total capital expenditures | $ | 55,295 | $ | 58,714 |
Six Months Ended June 30, | |||||||
2013 | 2012 | ||||||
(in thousands) | |||||||
Cash provided by (used in): | |||||||
Operating activities | $ | 380,347 | $ | 310,128 | |||
Investing activities | $ | (20,742 | ) | $ | (138,557 | ) | |
Financing activities | $ | 54,011 | $ | (3,737 | ) |
Six Months Ended June 30, | Year Ended December 31, | |||||||||
2013 | 2012 | 2012 | 2011 | 2010 | 2009 | |||||
1.02 | * | * | * | * | * |
* | For the six months ended June 30, 2012, fixed charges exceeded earnings before income taxes and fixed charges by $60.8 million. For the years ended December 31, 2012, 2011, 2010 and 2009, fixed charges exceeded earnings from continuing operations before income taxes and fixed charges by $142.1 million, $104.4 million, $193.6 million and $116.5 million, respectively. |
LIVE NATION ENTERTAINMENT, INC. | |
By: | /s/ Brian Capo |
Brian Capo | |
Chief Accounting Officer |
Exhibit Description | Incorporated by Reference | Filed Here with | |||||||||||||
Exhibit No. | Form | File No. | Exhibit No. | Filing Date | Filed By | ||||||||||
2.1 | Agreement and Plan of Merger, dated February 10, 2009, between Ticketmaster Entertainment, Inc. and Live Nation, Inc. | 8-K | 001-32601 | 2.1 | 2/13/2009 | Live Nation Entertainment, Inc. | |||||||||
3.1 | Certificate of Amendment to the Amended and Restated Certificate of Incorporation of Live Nation Entertainment, Inc. | 8-K | 001-32601 | 3.1 | 6/7/2013 | Live Nation Entertainment, Inc. | |||||||||
3.2 | Fifth Amended and Restated Bylaws of Live Nation Entertainment, Inc. | 8-K | 001-32601 | 3.2 | 6/7/2013 | Live Nation Entertainment, Inc. | |||||||||
31.1 | Certification of Chief Executive Officer. | X | |||||||||||||
31.2 | Certification of Chief Financial Officer. | X | |||||||||||||
32.1 | Section 1350 Certification of Chief Executive Officer. | X | |||||||||||||
32.2 | Section 1350 Certification of Chief Financial Officer. | X | |||||||||||||
101.INS | XBRL Instance Document | X | |||||||||||||
101.SCH | XBRL Taxonomy Schema Document | X | |||||||||||||
101.CAL | XBRL Taxonomy Calculation Linkbase Document | X | |||||||||||||
101.DEF | XBRL Taxonomy Definition Linkbase Document | X | |||||||||||||
101.LAB | XBRL Taxonomy Label Linkbase Document | X | |||||||||||||
101.PRE | XBRL Taxonomy Presentation Linkbase Document | X |
Date: August 6, 2013 | |
By: | /s/: Michael Rapino |
Michael Rapino | |
President and Chief Executive Officer |
Date: August 6, 2013 | |
By: | /s/ Kathy Willard |
Kathy Willard | |
Chief Financial Officer |
Date: August 6, 2013 | |
By: | /s/ Michael Rapino |
Michael Rapino | |
President and Chief Executive Officer |
Date: August 6, 2013 | |
By: | /s/ Kathy Willard |
Kathy Willard | |
Chief Financial Officer |
BASIS OF PRESENTATION (Policies)
|
6 Months Ended |
---|---|
Jun. 30, 2013
|
|
Accounting Policies [Abstract] | |
Recently Adopted Pronouncements | Recently Adopted Pronouncements In February 2013, the FASB issued guidance which requires companies to disclose additional information about reclassifications out of AOCI, including changes in AOCI balances by component and significant items reclassified out of AOCI. The new disclosure requirements are to be applied prospectively and are effective for interim and annual periods beginning after December 15, 2012. The Company adopted this guidance on January 1, 2013. |
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (USD $)
In Thousands, except Share data, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
|
Income Statement [Abstract] | ||||
Revenue | $ 1,679,513 | $ 1,550,677 | $ 2,603,211 | $ 2,418,674 |
Operating expenses: | ||||
Direct operating expenses | 1,209,918 | 1,106,869 | 1,786,852 | 1,645,583 |
Selling, general and administrative expenses | 295,719 | 280,943 | 575,241 | 549,078 |
Depreciation and amortization | 82,688 | 94,259 | 164,853 | 173,972 |
Loss (gain) on disposal of operating assets | (30,199) | 93 | (33,796) | (195) |
Corporate expenses | 21,812 | 27,415 | 42,467 | 50,632 |
Acquisition transaction expenses | 1,769 | (1,870) | 2,977 | (561) |
Operating income (loss) | 97,806 | 42,968 | 64,617 | 165 |
Interest expense | 30,041 | 29,488 | 58,192 | 59,198 |
Interest income | (890) | (931) | (2,658) | (1,831) |
Equity in earnings of nonconsolidated affiliates | (2,629) | (1,801) | (5,211) | (5,682) |
Other expense, net | 3,868 | 5,424 | 7,506 | 3,642 |
Income (loss) before income taxes | 67,416 | 10,788 | 6,788 | (55,162) |
Income tax expense | 8,401 | 5,228 | 11,960 | 9,506 |
Net income (loss) | 59,015 | 5,560 | (5,172) | (64,668) |
Net income (loss) attributable to noncontrolling interests | 885 | (2,132) | (63) | (3,210) |
Net income (loss) attributable to common stockholders of Live Nation Entertainment, Inc. | $ 58,130 | $ 7,692 | $ (5,109) | $ (61,458) |
Basic and diluted net income (loss) per common share attributable to common stockholders of Live Nation Entertainment, Inc. | $ 0.30 | $ 0.04 | $ (0.03) | $ (0.33) |
Weighted average common shares outstanding: | ||||
Basic (in shares) | 193,069,783 | 186,893,774 | 190,960,206 | 186,707,769 |
Diluted (in shares) | 196,770,405 | 189,325,338 | 190,960,206 | 186,707,769 |
FAIR VALUE MEASUREMENTS
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6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS | NOTE 4—FAIR VALUE MEASUREMENTS The Company currently has various financial instruments carried at fair value, such as marketable securities, derivatives and contingent consideration, but does not currently have nonfinancial assets and nonfinancial liabilities that are required to be measured at fair value on a recurring basis. The Company’s financial assets and liabilities are measured using inputs from all levels of the fair value hierarchy as defined in the FASB guidance for fair values. For this categorization, only inputs that are significant to the fair value are considered. The three levels are defined as follows: Level 1—Inputs are unadjusted quoted prices in active markets for identical assets or liabilities that can be accessed at the measurement date. Level 2—Inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (i.e., interest rates, yield curves, etc.) and inputs that are derived principally from or corroborated by observable market data by correlation or other means (i.e., market corroborated inputs). Level 3—Unobservable inputs that reflect assumptions about what market participants would use in pricing the asset or liability. These inputs would be based on the best information available, including the Company’s own data. In accordance with the fair value hierarchy described above, the following table shows the fair value of the Company’s financial assets and liabilities that are required to be measured at fair value on a recurring basis, which are classified on the balance sheets as cash and cash equivalents, other current assets, other long-term assets, other current liabilities and other long-term liabilities:
Cash equivalents consist of money market funds. Fair values for cash equivalents are based on quoted prices in an active market. Fair values for forward currency contracts are based on observable market transactions of spot and forward rates. Fair values for the interest rate swaps and the interest rate cap are based on inputs corroborated by observable market data with similar tenors. The fair value of the interest rate cap, which expired on June 30, 2013, was de minimis at December 31, 2012. The Company has certain contingent consideration obligations related to acquisitions which are measured at fair value using Level 3 inputs. The amounts due to the sellers are based on the achievement of agreed-upon financial performance metrics by the acquired companies where the contingent obligation is either earned or not earned. The Company records the liability at the time of the acquisition based on management’s best estimates of the future results of the acquired companies compared to the agreed-upon metrics. Subsequent to the date of acquisition, the Company updates the original valuation to reflect current projections of future results of the acquired companies and the passage of time. Accretion of, and changes in the valuations of, contingent consideration are reported in acquisition transaction expenses. See Note 5—Commitments and Contingent Liabilities for additional information related to the contingent payments. The Company has stock options in a company that became publicly-traded in the third quarter of 2011 which are measured at fair value using Level 3 inputs. The stock options were received as consideration in connection with a licensing agreement entered into by a subsidiary of the Company and became fully-vested in the second quarter of 2011. The Company has recorded an asset for these options which is valued using the Black-Scholes option pricing model. The Company recorded revenue based on the valuation of the options as of the measurement date, which was the vesting date. The changes in the valuation after the measurement date are recorded in other expense (income), net. During the second quarter of 2012, the Company recorded impairments related to definite-lived intangible assets of $13.9 million, as a component of depreciation and amortization. The impairment charges primarily related to intangible assets for revenue-generating contracts and client/vendor relationships in the Concerts segment. It was determined that these assets were impaired since the estimated undiscounted cash flows associated with these assets were less than their carrying value. These cash flows were calculated using operating cash flows which were discounted to approximate fair value. The operating cash flows for these non-recurring fair value measurements are considered Level 3 inputs. There were no impairments related to definite-lived intangible assets recorded for the six months ended June 30, 2013. Due to their short maturity, the carrying amounts of accounts receivable, accounts payable and accrued expenses approximated their fair values at June 30, 2013 and December 31, 2012. The Company’s outstanding debt held by third-party financial institutions is carried at cost, adjusted for discounts. The Company’s debt is not publicly-traded and the carrying amounts typically approximate fair value for the Company’s debt that accrues interest at a variable rate, which are considered to be Level 2 inputs. The estimated fair values of the 7% senior notes, the 8.125% senior notes and the 2.875% convertible senior notes were $238.4 million, $266.4 million and $222.5 million at June 30, 2013, respectively. The estimated fair values of the 7% senior notes, the 8.125% senior notes and the 2.875% convertible senior notes were $236.3 million, $273.4 million and $219.4 million at December 31, 2012, respectively. The estimated fair value of the Company’s third-party fixed-rate debt is based on quoted market prices in active markets for the same or similar debt, which are considered to be Level 2 inputs. The Company has fixed rate debt held by noncontrolling interest partners with a face value of $23.4 million and $24.5 million at June 30, 2013 and December 31, 2012, respectively. The Company is unable to determine the fair value of this debt. |
BASIS OF PRESENTATION (Details) (USD $)
In Millions, unless otherwise specified |
Jun. 30, 2013
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Dec. 31, 2012
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Accounting Policies [Abstract] | ||
Collected proceeds relating to the face value of the tickets sold on behalf of clients and the clients share of convenience and order processing charges | $ 479.1 | $ 441.6 |
LONG-LIVED ASSETS (Tables)
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Jun. 30, 2013
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LONG-LIVED ASSETS [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross Carrying Amount and Accumulated Amortization of 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 six months ended June 30, 2013:
_________
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Weighted Average Lives of Additions to Definite-Lived Intangible Assets | The 2013 additions to definite-lived intangible assets from acquisitions have weighted-average lives as follows:
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Changes in Goodwill by Segment | The following table presents the changes in the carrying amount of goodwill in each of the Company’s reportable segments for the six months ended June 30, 2013:
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Investments in Nonconsolidated Affiliates | Summarized unaudited income statement information for the Company’s significant nonconsolidated affiliates is as follows (at 100%):
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Asset and Liability Values at the Time of Disposal and the Resulting Gain or Loss Recorded | The table below summarizes the asset and liability values at the time of sale for significant disposals and the resulting gain or loss recorded.
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COMMITMENTS AND CONTINGENT LIABILITIES (Loss Contingencies) (Details) (USD $)
In Millions, unless otherwise specified |
Apr. 30, 2010
CTS Arbitration [Member]
|
Jun. 30, 2013
Ticketing Fees Consumer Class Action Litigation [Member]
|
Feb. 28, 2009
Canadian Consumer Class Action Litigation Relating to TicketsNow [Member]
claims
|
---|---|---|---|
Loss Contingencies [Line Items] | |||
Term of CTS agreement | 10 years | ||
Accrual for best estimate of probable costs of settlement | $ 35.4 | ||
Number of claims filed | 4 |
EQUITY (Antidilutive Securities Excluded from Computation of Earnings per Share) (Details)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
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Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Number of anti-dilutive potentially issuable shares excluded from diluted common shares outstanding (in shares) | 16,256 | 27,765 | 28,894 | 33,880 |
Options to purchase shares of common stock [Member]
|
||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Number of anti-dilutive potentially issuable shares excluded from diluted common shares outstanding (in shares) | 6,734 | 15,981 | 17,695 | 21,340 |
Restricted stock awards and units - unvested [Member]
|
||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Number of anti-dilutive potentially issuable shares excluded from diluted common shares outstanding (in shares) | 917 | 3,179 | 2,594 | 3,935 |
Warrants [Member]
|
||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Number of anti-dilutive potentially issuable shares excluded from diluted common shares outstanding (in shares) | 500 | 500 | 500 | 500 |
Conversion shares related to 2.875% convertible senior notes [Member]
|
||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Number of anti-dilutive potentially issuable shares excluded from diluted common shares outstanding (in shares) | 8,105 | 8,105 | 8,105 | 8,105 |
FAIR VALUE MEASUREMENTS (Assets and Liabilities Measured on Recurring Basis) (Details) (Recurring [Member], USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2013
|
Dec. 31, 2012
|
---|---|---|
Assets: | ||
Cash equivalents | $ 227,138 | $ 61,996 |
Forward currency contracts | 3,509 | 81 |
Stock options | 17 | 204 |
Total | 230,664 | 62,281 |
Liabilities: | ||
Interest rate swaps | 1,980 | 2,811 |
Forward currency contracts | 228 | 625 |
Contingent consideration | 5,806 | 6,718 |
Total | 8,014 | 10,154 |
Level 1 [Member]
|
||
Assets: | ||
Cash equivalents | 227,138 | 61,996 |
Forward currency contracts | 0 | 0 |
Stock options | 0 | 0 |
Total | 227,138 | 61,996 |
Liabilities: | ||
Interest rate swaps | 0 | 0 |
Forward currency contracts | 0 | 0 |
Contingent consideration | 0 | 0 |
Total | 0 | 0 |
Level 2 [Member]
|
||
Assets: | ||
Cash equivalents | 0 | 0 |
Forward currency contracts | 3,509 | 81 |
Stock options | 0 | 0 |
Total | 3,509 | 81 |
Liabilities: | ||
Interest rate swaps | 1,980 | 2,811 |
Forward currency contracts | 228 | 625 |
Contingent consideration | 0 | 0 |
Total | 2,208 | 3,436 |
Level 3 [Member]
|
||
Assets: | ||
Cash equivalents | 0 | 0 |
Forward currency contracts | 0 | 0 |
Stock options | 17 | 204 |
Total | 17 | 204 |
Liabilities: | ||
Interest rate swaps | 0 | 0 |
Forward currency contracts | 0 | 0 |
Contingent consideration | 5,806 | 6,718 |
Total | $ 5,806 | $ 6,718 |
SEGMENT DATA (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
|
Segment Reporting Information [Line Items] | ||||
Revenue | $ 1,679,513 | $ 1,550,677 | $ 2,603,211 | $ 2,418,674 |
Direct operating expenses | 1,209,918 | 1,106,869 | 1,786,852 | 1,645,583 |
Selling, general and administrative expenses | 295,719 | 280,943 | 575,241 | 549,078 |
Depreciation and amortization | 82,688 | 94,259 | 164,853 | 173,972 |
Loss (gain) on disposal of operating assets | (30,199) | 93 | (33,796) | (195) |
Corporate expenses | 21,812 | 27,415 | 42,467 | 50,632 |
Acquisition transaction expenses | 1,769 | (1,870) | 2,977 | (561) |
Operating income (loss) | 97,806 | 42,968 | 64,617 | 165 |
Intersegment revenue | 0 | 0 | 0 | 0 |
Capital expenditures | 55,295 | 58,714 | ||
Concerts [Member]
|
||||
Segment Reporting Information [Line Items] | ||||
Revenue | 1,193,006 | 1,076,024 | 1,706,541 | 1,524,723 |
Direct operating expenses | 992,476 | 896,083 | 1,382,728 | 1,239,436 |
Selling, general and administrative expenses | 159,517 | 145,067 | 296,835 | 276,685 |
Depreciation and amortization | 35,068 | 44,134 | 63,770 | 72,496 |
Loss (gain) on disposal of operating assets | (31,332) | 1 | (34,462) | (469) |
Corporate expenses | 0 | 0 | 0 | 0 |
Acquisition transaction expenses | 313 | (2,219) | 547 | (1,405) |
Operating income (loss) | 36,964 | (7,042) | (2,877) | (62,020) |
Intersegment revenue | 21,254 | 20,989 | 26,967 | 25,038 |
Capital expenditures | 11,891 | 11,458 | ||
Ticketing [Member]
|
||||
Segment Reporting Information [Line Items] | ||||
Revenue | 337,827 | 328,939 | 662,962 | 655,483 |
Direct operating expenses | 160,021 | 154,367 | 315,083 | 306,242 |
Selling, general and administrative expenses | 101,919 | 104,673 | 213,859 | 208,001 |
Depreciation and amortization | 36,685 | 38,803 | 79,498 | 77,969 |
Loss (gain) on disposal of operating assets | 42 | (65) | (20) | (155) |
Corporate expenses | 0 | 0 | 0 | 0 |
Acquisition transaction expenses | 0 | (315) | 24 | (335) |
Operating income (loss) | 39,160 | 31,476 | 54,518 | 63,761 |
Intersegment revenue | 714 | 2,382 | 981 | 2,696 |
Capital expenditures | 42,993 | 42,422 | ||
Artist Nation [Member]
|
||||
Segment Reporting Information [Line Items] | ||||
Revenue | 99,739 | 109,241 | 150,010 | 170,646 |
Direct operating expenses | 68,920 | 73,371 | 100,332 | 114,009 |
Selling, general and administrative expenses | 22,476 | 21,306 | 42,514 | 45,394 |
Depreciation and amortization | 10,136 | 11,456 | 20,170 | 23,068 |
Loss (gain) on disposal of operating assets | 1,091 | 0 | 679 | 0 |
Corporate expenses | 0 | 0 | 0 | 0 |
Acquisition transaction expenses | 17 | 351 | 145 | 401 |
Operating income (loss) | (2,901) | 2,757 | (13,830) | (12,226) |
Intersegment revenue | 1,122 | 1,856 | 1,325 | 3,048 |
Capital expenditures | 282 | 414 | ||
Sponsorship and Advertising [Member]
|
||||
Segment Reporting Information [Line Items] | ||||
Revenue | 71,240 | 61,278 | 111,387 | 97,406 |
Direct operating expenses | 13,311 | 9,337 | 20,175 | 16,058 |
Selling, general and administrative expenses | 10,959 | 9,192 | 20,647 | 17,981 |
Depreciation and amortization | 596 | (18) | 738 | 21 |
Loss (gain) on disposal of operating assets | 0 | 0 | 0 | 0 |
Corporate expenses | 0 | 0 | 0 | 0 |
Acquisition transaction expenses | 0 | 0 | 0 | 0 |
Operating income (loss) | 46,374 | 42,767 | 69,827 | 63,346 |
Intersegment revenue | 0 | 0 | 0 | 0 |
Capital expenditures | 300 | 3,433 | ||
Other [Member]
|
||||
Segment Reporting Information [Line Items] | ||||
Revenue | 791 | 422 | 1,584 | 1,198 |
Direct operating expenses | (2,206) | (1,908) | (3,171) | (423) |
Selling, general and administrative expenses | 848 | 705 | 1,386 | 1,017 |
Depreciation and amortization | 11 | 11 | 185 | 23 |
Loss (gain) on disposal of operating assets | 0 | 157 | 7 | 429 |
Corporate expenses | 0 | 0 | 0 | 0 |
Acquisition transaction expenses | 0 | 0 | 0 | 0 |
Operating income (loss) | 2,138 | 1,457 | 3,177 | 152 |
Intersegment revenue | 0 | 0 | 0 | 0 |
Capital expenditures | 0 | 4 | ||
Corporate [Member]
|
||||
Segment Reporting Information [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Direct operating expenses | 0 | 0 | 0 | 0 |
Selling, general and administrative expenses | 0 | 0 | 0 | 0 |
Depreciation and amortization | 678 | 719 | 1,470 | 1,438 |
Loss (gain) on disposal of operating assets | 0 | 0 | 0 | 0 |
Corporate expenses | 21,812 | 27,415 | 42,467 | 50,632 |
Acquisition transaction expenses | 1,439 | 313 | 2,261 | 778 |
Operating income (loss) | (23,929) | (28,447) | (46,198) | (52,848) |
Intersegment revenue | 0 | 0 | 0 | 0 |
Capital expenditures | (171) | 983 | ||
Eliminations [Member]
|
||||
Segment Reporting Information [Line Items] | ||||
Revenue | (23,090) | (25,227) | (29,273) | (30,782) |
Direct operating expenses | (22,604) | (24,381) | (28,295) | (29,739) |
Selling, general and administrative expenses | 0 | 0 | 0 | 0 |
Depreciation and amortization | (486) | (846) | (978) | (1,043) |
Loss (gain) on disposal of operating assets | 0 | 0 | 0 | 0 |
Corporate expenses | 0 | 0 | 0 | 0 |
Acquisition transaction expenses | 0 | 0 | 0 | 0 |
Operating income (loss) | 0 | 0 | 0 | 0 |
Intersegment revenue | (23,090) | (25,227) | (29,273) | (30,782) |
Capital expenditures | $ 0 | $ 0 |
LONG-LIVED ASSETS (Narrative) (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
|
Segment Reporting Information [Line Items] | ||||
Gain (loss) on disposal of operating assets | $ 30,199 | $ (93) | $ 33,796 | $ 195 |
Concerts [Member]
|
||||
Segment Reporting Information [Line Items] | ||||
Gain (loss) on disposal of operating assets | 31,332 | (1) | 34,462 | 469 |
New York Amphitheater [Member] | Concerts [Member]
|
||||
Segment Reporting Information [Line Items] | ||||
Gain (loss) on disposal of operating assets | $ 9,400 | $ 12,600 |
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (USD $)
In Thousands, unless otherwise specified |
6 Months Ended | |
---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
|
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income (loss) | $ (5,172) | $ (64,668) |
Reconciling items: | ||
Depreciation | 59,410 | 59,691 |
Amortization | 105,443 | 114,281 |
Deferred income tax benefit | (6,305) | (6,946) |
Amortization of debt issuance costs and discount/premium, net | 10,421 | 6,881 |
Non-cash compensation expense | 14,119 | 17,919 |
Gain on disposal of operating assets | (33,796) | (195) |
Equity in earnings of nonconsolidated affiliates | (5,211) | (5,682) |
Other, net | 1,468 | (1,773) |
Changes in operating assets and liabilities, net of effects of acquisitions and dispositions: | ||
Increase in accounts receivable | (205,361) | (103,344) |
Increase in prepaid expenses | (230,247) | (305,090) |
Increase in other assets | (65,252) | (62,284) |
Increase in accounts payable, accrued expenses and other liabilities | 152,384 | 94,717 |
Increase in deferred revenue | 588,446 | 566,621 |
Net cash provided by operating activities | 380,347 | 310,128 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Distributions from nonconsolidated affiliates | 2,740 | 703 |
Investments made in nonconsolidated affiliates | (3,032) | (2,858) |
Purchases of property, plant and equipment | (76,685) | (62,785) |
Proceeds from disposal of operating assets, net of cash divested | 81,070 | 5,648 |
Cash paid for acquisitions, net of cash acquired | (23,766) | (68,093) |
Purchases of intangible assets | (17) | (11,469) |
(Increase) decrease other, net | (1,052) | 297 |
Net cash used in investing activities | (20,742) | (138,557) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from long-term debt, net of debt issuance costs | 89,369 | 58,270 |
Payments on long-term debt | (106,388) | (44,222) |
Contributions from noncontrolling interests | 267 | 130 |
Distributions to noncontrolling interests | (1,936) | (8,189) |
Proceeds from exercise of stock options | 73,449 | 859 |
Payments for deferred and contingent consideration | (750) | (10,585) |
Net cash provided by (used in) financing activities | 54,011 | (3,737) |
Effect of exchange rate changes on cash and cash equivalents | (29,411) | (7,048) |
Net increase in cash and cash equivalents | 384,205 | 160,786 |
Cash and cash equivalents at beginning of period | 1,001,055 | 844,253 |
Cash and cash equivalents at end of period | $ 1,385,260 | $ 1,005,039 |
LONG-LIVED ASSETS
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6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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LONG-LIVED ASSETS [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LONG-LIVED ASSETS | NOTE 2—LONG-LIVED ASSETS Property, Plant and Equipment In the fourth quarter of 2012, an amphitheater located in New York that is operated by the Company sustained substantial damage during Hurricane Sandy. During 2013, the Company received an insurance recovery and recorded a gain of $9.4 million and $12.6 million for the three and six months ended June 30, 2013, respectively, as a component of loss (gain) on disposal of operating assets in the Concerts segment representing the proceeds received in excess of the carrying value of the 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 six months ended June 30, 2013:
_________
Included in the current year acquisitions amount above of $38.4 million are trademarks and naming rights and revenue-generating contracts primarily associated with the May 2013 acquisition of a controlling interest in a company that promotes festivals. The 2013 additions to definite-lived intangible assets from acquisitions have weighted-average lives as follows:
The Company tests for possible impairment of definite-lived intangible assets whenever events or circumstances change, such as a significant reduction in operating cash flow or a change in the manner in which the asset is intended to be used which may indicate that the carrying amount of the asset may not be recoverable. During the six months ended June 30, 2012, the Company reviewed the carrying value of certain definite-lived intangible assets that management determined had an indicator that future operating cash flows may not support their carrying value, and it was determined that those assets were impaired since the estimated undiscounted operating cash flows associated with those assets were less than their carrying value. During the second quarter of 2012, the Company recorded an impairment charge related to definite-lived intangible assets of $13.9 million as a component of depreciation and amortization. The impairment charge primarily related to intangible assets for revenue-generating contracts and client/vendor relationships in the Concerts segment. See Note 4—Fair Value Measurements for further discussion of the inputs used to determine the fair value. There were no impairment charges recorded during the six months ended June 30, 2013. Amortization from definite-lived intangible assets for the three months ended June 30, 2013 and 2012 was $43.3 million and $55.7 million, respectively, and for the six months ended June 30, 2013 and 2012 was $81.5 million and $95.6 million, respectively. The decrease in amortization for the three and six months ended June 30, 2013 is primarily driven by the impairment charge recorded during the second quarter of 2012 discussed above. During the second quarter of 2013, the Company recorded $4.9 million for acceleration of amortization primarily related to a change in estimate of certain venue management and leasehold intangible assets in the Concerts segment due to the reduction in the lease term of a music theater. Amortization related to nonrecoupable ticketing contract advances for the three months ended June 30, 2013 and 2012 was $10.3 million and $7.9 million, respectively, and for the six months ended June 30, 2013 and 2012 was $23.9 million and $18.7 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 six months ended June 30, 2013:
Included in the current year acquisitions amount above of $48.1 million is goodwill primarily associated with the May 2013 acquisition of a controlling interest in a company that promotes festivals. 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. 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 in the balance sheet as investments in nonconsolidated affiliates. The Company’s interests in these operations are recorded in the statement of operations as equity in earnings of nonconsolidated affiliates. For the six months ended June 30, 2013, two of the Company’s investments, which include a 33% owned ticketing distribution services company and a 50% owned artist management company, are considered significant. Summarized unaudited income statement information for the Company’s significant nonconsolidated affiliates is as follows (at 100%):
Long-lived Asset Disposals In May 2013, the Company completed the sale of a theatrical theater in New York. In January 2012, the Company completed the sale of an amphitheater in Ohio. The table below summarizes the asset and liability values at the time of sale for significant disposals and the resulting gain or loss recorded.
Certain agreements relating to disposals of businesses provide for future contingent consideration to be paid to the Company based on the financial performance of the businesses sold. The Company will record additional amounts related to such contingent consideration, with a corresponding adjustment to loss (gain) on disposal of operating assets, if and when it is determinable that the applicable financial performance targets will be met. The aggregate of these contingent considerations, if all existing performance targets are met, would not significantly impact the results of operations of the Company. The last contingency period for which the Company has outstanding contingent consideration is for the period ending December 2013. |
COMMITMENTS AND CONTINGENT LIABILITIES
|
6 Months Ended |
---|---|
Jun. 30, 2013
|
|
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENT LIABILITIES | NOTE 5—COMMITMENTS AND CONTINGENT LIABILITIES Certain agreements relating to acquisitions that occurred prior to the adoption in January 2009 of the new FASB guidance for business combinations provide for purchase price adjustments and other future contingent payments based on the financial performance of the acquired companies. The Company will accrue additional amounts related to such contingent payments, which were part of the business combinations, with a corresponding adjustment to goodwill, if and when it is determinable that the applicable financial performance targets will be met. The aggregate of these contingent payments, if all performance targets are met, would not significantly impact the financial position of the Company. The last contingency period for which the Company has an outstanding contingent payment is for the period ending December 2017. The Company also has certain contingent obligations related to acquisitions made after the adoption in January 2009 of the FASB guidance for business combinations. In accordance with the current guidance, contingent consideration associated with business combinations must be recorded at its fair value at the time of the acquisition and reflected at current fair value for each subsequent reporting period thereafter until settled. The Company records these fair value changes in its statements of operations as acquisition transaction expenses. The contingent consideration is generally subject to payout following the achievement of future performance targets and a portion is expected to be payable in 2013. As of June 30, 2013, the Company has accrued $2.3 million in other current liabilities and $3.5 million in other long-term liabilities and, as of December 31, 2012, the Company had accrued $2.5 million in other current liabilities and $4.2 million in other long-term liabilities, representing the fair value of these estimated payments. The last contingency period for which the Company has an outstanding contingent payment is for the period ending December 2017. See Note 4—Fair Value Measurements for further discussion related to the valuation of these contingent payments. CTS Arbitration Live Nation Worldwide, Inc. (“Live Nation Worldwide”) and CTS were parties to an agreement (the “CTS Agreement”), pursuant to which CTS was to develop and Live Nation Worldwide licensed or agreed to use ticketing software or ticketing platforms. Under the agreement, CTS was to develop software to be licensed to Live Nation Worldwide to provide ticketing services in the United States and Canada. The CTS Agreement also generally required Live Nation Worldwide to use CTS’s ticketing platforms in certain European countries so long as CTS’s existing platforms were appropriately modified to meet local market conditions. In June 2010, Live Nation Worldwide terminated the CTS Agreement because CTS materially breached the agreement by failing to deliver a North American ticketing system that met the contractual requirements of being a “world class ticketing system . . . that fits the needs of the North American market,” and by failing to deliver a ticketing system for the United Kingdom and other European countries that fit the needs of those markets as required by the CTS Agreement. In April 2010, CTS filed a request for arbitration with the International Court of Arbitration of the International Chamber of Commerce (“ICC”) pursuant to the CTS Agreement, alleging that Live Nation Worldwide improperly terminated the CTS Agreement and seeking specific performance and damages, including damages for royalties that would have been paid over the full 10-year term of the CTS Agreement. In June 2013, the arbitrator for the ICC ruled that Live Nation Worldwide validly terminated the CTS Agreement and therefore has no liability to CTS, thus concluding the matter in Live Nation Worldwide's favor. Ticketing Fees Consumer Class Action Litigation In October 2003, a putative representative action was filed in the Superior Court of California challenging Ticketmaster’s charges to online customers for shipping fees and alleging that its failure to disclose on its website that the charges contain a profit component is unlawful. The complaint asserted a claim for violation of California’s Unfair Competition Law (“UCL”) and sought restitution or disgorgement of the difference between (i) the total shipping fees charged by Ticketmaster in connection with online ticket sales during the applicable period, and (ii) the amount that Ticketmaster actually paid to the shipper for delivery of those tickets. In August 2005, the plaintiffs filed a first amended complaint, then pleading the case as a putative class action and adding the claim that Ticketmaster’s website disclosures in respect of its ticket order processing fees constitute false advertising in violation of California’s False Advertising Law. On this new claim, the amended complaint seeks restitution or disgorgement of the entire amount of order processing fees charged by Ticketmaster during the applicable period. In April 2009, the Court granted the plaintiffs’ motion for leave to file a second amended complaint adding new claims that (a) Ticketmaster’s order processing fees are unconscionable under the UCL, and (b) Ticketmaster’s alleged business practices further violate the California Consumer Legal Remedies Act. Plaintiffs later filed a third amended complaint, to which Ticketmaster filed a demurrer in July 2009. The Court overruled Ticketmaster’s demurrer in October 2009. The plaintiffs filed a class certification motion in August 2009, which Ticketmaster opposed. In February 2010, the Court granted certification of a class on the first and second causes of action, which allege that Ticketmaster misrepresents/omits the fact of a profit component in Ticketmaster’s shipping and order processing fees. The class would consist of California consumers who purchased tickets through Ticketmaster’s website from 1999 to present. The Court denied certification of a class on the third and fourth causes of action, which allege that Ticketmaster’s shipping and order processing fees are unconscionably high. In March 2010, Ticketmaster filed a Petition for Writ of Mandate with the California Court of Appeal, and plaintiffs also filed a motion for reconsideration of the Superior Court’s class certification order. In April 2010, the Superior Court denied plaintiffs’ Motion for Reconsideration of the Court’s class certification order, and the Court of Appeal denied Ticketmaster’s Petition for Writ of Mandate. In June 2010, the Court of Appeal granted the plaintiffs’ Petition for Writ of Mandate and ordered the Superior Court to vacate its February 2010 order denying plaintiffs’ motion to certify a national class and enter a new order granting plaintiffs’ motion to certify a nationwide class on the first and second claims. In September 2010, Ticketmaster filed its Motion for Summary Judgment on all causes of action in the Superior Court, and that same month plaintiffs filed their Motion for Summary Adjudication of various affirmative defenses asserted by Ticketmaster. In November 2010, Ticketmaster filed its Motion to Decertify Class. In December 2010, the parties entered into a binding agreement providing for the settlement of the litigation and the resolution of all claims therein. In September 2011, the Court declined to approve the settlement in its then-current form. Litigation continued, and in September 2011, the Court granted in part and denied in part Ticketmaster’s Motion for Summary Judgment. The parties reached a new settlement in September 2011, which was approved preliminarily, but in September 2012 the Court declined to grant final approval. The parties have agreed in principal on the terms of a revised settlement and intend to present those terms to the court for preliminary approval upon execution of a long-form settlement agreement. Ticketmaster and its parent, Live Nation, have not acknowledged any violations of law or liability in connection with the matter. As of June 30, 2013, the Company has accrued $35.4 million, its best estimate of the probable costs associated with the settlement referred to above. This liability includes an estimated redemption rate. Any difference between the Company’s estimated redemption rate and the actual redemption rate it experiences will impact the final settlement amount; however, the Company does not expect this difference to be material. Canadian Consumer Class Action Litigation Relating to TicketsNow In February 2009, four putative consumer class action complaints were filed in various provinces of Canada against TicketsNow, Ticketmaster, Ticketmaster Canada Ltd. and Premium Inventory, Inc. All of the cases allege essentially the same set of facts and causes of action. Each plaintiff purports to represent a class consisting of all persons who purchased a ticket from Ticketmaster, Ticketmaster Canada Ltd. or TicketsNow from February 2007 to present and alleges that Ticketmaster conspired to divert a large number of tickets for resale through the TicketsNow website at prices higher than face value. The plaintiffs characterize these actions as being in violation of Ontario’s Ticket Speculation Act, the Amusement Act of Manitoba, the Amusement Act of Alberta or the Quebec Consumer Protection Act. The Ontario case contains the additional allegation that Ticketmaster’s and TicketsNow’s service fees violate anti-scalping laws. Each lawsuit seeks compensatory and punitive damages on behalf of the class. In February 2012, the parties entered into a settlement agreement that will resolve all of the resale market claims. The court approval process for the settlement has been completed, with final approvals given in all provinces. The settlement was paid in January 2013, the full amount of which was funded by an escrow established in connection with Ticketmaster’s 2008 acquisition of TicketsNow. While it is reasonably possible that a loss related to the primary market claims of this matter could be incurred by the Company in a future period, the Company does not believe that a loss is probable of occurring at this time. Considerable uncertainty remains regarding the validity of the claims and damages asserted against the Company. As a result, the Company is currently unable to estimate the possible loss or range of loss for the primary market claims of this matter. The Company intends to continue to vigorously defend all claims in all of the actions. Other Litigation From time to time, the Company is involved in other legal proceedings arising in the ordinary course of its business, including proceedings and claims based upon violations of antitrust laws and intellectual property rights, and tortious interference, which could cause the Company to incur significant expenses. The Company has also been the subject of personal injury and wrongful death claims relating to accidents at its venues in connection with its operations. As required, the Company has accrued its estimate of the probable settlement or other losses for the resolution of any outstanding claims. These estimates have been developed in consultation with counsel and are based upon an analysis of potential results, including, in some cases, estimated redemption rates for the settlement offered, assuming a combination of litigation and settlement strategies. It is possible, however, that future results of operations for any particular period could be materially affected by changes in the Company’s assumptions or the effectiveness of its strategies related to these proceedings. In addition, under the Company’s agreements with Clear Channel, it has assumed and will indemnify Clear Channel for liabilities associated with matters prior to its Separation that are related to its business for which they are a party in the defense. |
DERIVATIVE INSTRUMENTS
|
6 Months Ended |
---|---|
Jun. 30, 2013
|
|
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS | NOTE 3—DERIVATIVE INSTRUMENTS The Company primarily uses forward currency contracts and options to reduce its exposure to foreign currency risk associated with short-term artist fee commitments. The Company may also enter into forward currency contracts to minimize the risks and/or costs associated with changes in foreign currency rates on forecasted operating income and short-term intercompany loans. At June 30, 2013 and December 31, 2012, the Company had forward currency contracts and options outstanding with notional amounts of $123.2 million and $100.0 million, respectively. These instruments have not been designated as hedging instruments and any change in fair value is reported in earnings during the period of the change. The Company’s foreign currency derivative activity, including the related fair values, are not material to any period presented. Additionally, the Company has entered into certain interest rate swaps and cap agreements to limit its exposure to variable interest rates, related to portions of the Company’s outstanding debt, some of which have been designated as cash flow hedges. At June 30, 2013, the Company had interest rate swaps outstanding with notional amounts of $47.8 million. At December 31, 2012, the Company had interest rate swaps and cap agreements outstanding with notional amounts of $133.8 million. The Company’s interest rate swaps and cap activity, including the related fair values, are not material to any period presented. As of June 30, 2013 and December 31, 2012, there was no ineffective portion or amount excluded from effectiveness testing for derivatives designated as cash flow hedging instruments. The Company’s 2.875% convertible senior notes include certain provisions which are bifurcated from the notes and accounted for as derivative instruments. As of June 30, 2013 and December 31, 2012, the fair value of these provisions were considered to be de minimis. The Company does not enter into derivative instruments for speculation or trading purposes and does not anticipate any significant recognition of derivative activity through the income statement in the future related to the instruments currently held. See Note 4—Fair Value Measurements for further discussion and disclosure of the fair values for the Company’s derivative instruments. |
STOCK-BASED COMPENSATION (Details) (USD $)
|
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
|
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | $ 7,814,000 | $ 8,940,000 | $ 14,119,000 | $ 17,919,000 |
Total unrecognized compensation cost | 50,100,000 | 50,100,000 | ||
Amortization period of unrecognized compensation cost (in years) | 2 years 8 months 12 days | |||
Selling, general, and administrative expenses [Member]
|
||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | 3,601,000 | 3,353,000 | 6,251,000 | 6,644,000 |
Corporate expenses [Member]
|
||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | $ 4,213,000 | $ 5,587,000 | $ 7,868,000 | $ 11,275,000 |
LONG-LIVED ASSETS (Investments in Nonconsolidated Affiliates) (Details) (USD $)
In Thousands, unless otherwise specified |
6 Months Ended | |
---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
|
Schedule of Equity Method Investments [Line Items] | ||
Revenue (at 100 percent) | $ 28,203 | $ 28,929 |
Operating income (at 100 percent) | 14,956 | 15,399 |
Net income (at 100 percent) | $ 11,693 | $ 12,720 |
Nonconsolidated ticketing distribution services company [Member]
|
||
Schedule of Equity Method Investments [Line Items] | ||
Percentage ownership of nonconsolidated affilitate (in hundreths) | 33.00% | 33.00% |
Nonconsolidated artist management company [Member]
|
||
Schedule of Equity Method Investments [Line Items] | ||
Percentage ownership of nonconsolidated affilitate (in hundreths) | 50.00% | 50.00% |
FAIR VALUE MEASUREMENTS (Narrative) (Details) (USD $)
In Millions, unless otherwise specified |
6 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2012
|
Jun. 30, 2013
7% Senior Notes Due 2020 [Member]
|
Dec. 31, 2012
7% Senior Notes Due 2020 [Member]
|
Jun. 30, 2013
8.125% Senior Notes due 2018 [Member]
|
Dec. 31, 2012
8.125% Senior Notes due 2018 [Member]
|
Jun. 30, 2013
2.875% Convertible Senior Notes due 2027 [Member]
|
Dec. 31, 2012
2.875% Convertible Senior Notes due 2027 [Member]
|
Jun. 30, 2013
Fixed Rate Debt With Noncontrolling Interest Partner [Member]
|
Dec. 31, 2012
Fixed Rate Debt With Noncontrolling Interest Partner [Member]
|
|
Fair Value Disclosures [Abstract] | |||||||||
Impairment related to definite-lived intangible assets | $ 13.9 | ||||||||
Debt Fair Value [Line Items] | |||||||||
Interest rate, stated percentage (in hundredths) | 7.00% | 7.00% | 8.125% | 8.125% | 2.875% | 2.875% | |||
Estimated fair values of senior notes | 238.4 | 236.3 | 266.4 | 273.4 | |||||
Estimated fair values of convertible senior notes | 222.5 | 219.4 | |||||||
Fair value, estimate not practicable [Abstract] | |||||||||
Face amount of debt | $ 23.4 | $ 24.5 |
EQUITY (Equity and Redeeemable Noncontrolling Interests) (Details) (USD $)
In Thousands, except Share data in Millions, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2013
|
Jun. 30, 2012
|
Jun. 30, 2013
|
Jun. 30, 2012
|
|
Common Stock | ||||
Common stock issued in connection with stock option exercises | 8.2 | |||
Equity [Roll Forward] | ||||
Balances at December 31, 2012 | $ 1,508,574 | |||
Non-cash and stock-based compensation | 14,119 | |||
Common stock issued under stock plans, net of shares withheld for employee taxes | (4,000) | |||
Exercise of stock options | 73,449 | |||
Acquisitions | 146 | |||
Acquisitions of noncontrolling interests | 0 | |||
Sales of noncontrolling interests | (399) | |||
Redeemable noncontrolling interests fair value adjustments | (160) | |||
Noncontrolling interests contributions | 267 | |||
Cash distributions | (1,936) | |||
Other | (612) | |||
Comprehensive income (loss): | ||||
Net income (loss) | (3,174) | |||
Unrealized gain (loss) on cash flow hedges | (45) | (83) | 25 | (88) |
Realized loss on cash flow hedges | 449 | 0 | 457 | 0 |
Foreign currency translation adjustments | (7,261) | (34,188) | (41,518) | (8,865) |
Balances at June 30, 2013 | 1,545,238 | 1,545,238 | ||
Redeemable Noncontrolling Interests [Roll Forward] | ||||
Balances at December 31, 2012 | 42,100 | |||
Acquisitions | 38,561 | |||
Redeemable noncontrolling interests fair value adjustments | 160 | |||
Other | (64) | |||
Comprehensive income (loss): | ||||
Net income (loss) | (1,998) | |||
Balances at June 30, 2013 | 78,759 | 78,759 | ||
Live Nation Entertainment, Inc. Stockholders' Equity [Member]
|
||||
Equity [Roll Forward] | ||||
Balances at December 31, 2012 | 1,355,418 | |||
Non-cash and stock-based compensation | 14,119 | |||
Common stock issued under stock plans, net of shares withheld for employee taxes | (4,000) | |||
Exercise of stock options | 73,449 | |||
Acquisitions | 0 | |||
Acquisitions of noncontrolling interests | (410) | |||
Sales of noncontrolling interests | 0 | |||
Redeemable noncontrolling interests fair value adjustments | (160) | |||
Noncontrolling interests contributions | 0 | |||
Cash distributions | 0 | |||
Other | 0 | |||
Comprehensive income (loss): | ||||
Net income (loss) | (5,109) | |||
Unrealized gain (loss) on cash flow hedges | 25 | |||
Realized loss on cash flow hedges | 457 | |||
Foreign currency translation adjustments | (41,518) | |||
Balances at June 30, 2013 | 1,392,271 | 1,392,271 | ||
Noncontrolling Interests [Member]
|
||||
Equity [Roll Forward] | ||||
Balances at December 31, 2012 | 153,156 | |||
Non-cash and stock-based compensation | 0 | |||
Common stock issued under stock plans, net of shares withheld for employee taxes | 0 | |||
Exercise of stock options | 0 | |||
Acquisitions | 146 | |||
Acquisitions of noncontrolling interests | 410 | |||
Sales of noncontrolling interests | (399) | |||
Redeemable noncontrolling interests fair value adjustments | 0 | |||
Noncontrolling interests contributions | 267 | |||
Cash distributions | (1,936) | |||
Other | (612) | |||
Comprehensive income (loss): | ||||
Net income (loss) | 1,935 | |||
Unrealized gain (loss) on cash flow hedges | 0 | |||
Realized loss on cash flow hedges | 0 | |||
Foreign currency translation adjustments | 0 | |||
Balances at June 30, 2013 | $ 152,967 | $ 152,967 |