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 | ||
PART II—OTHER INFORMATION | ||
AOCI | Accumulated other comprehensive income (loss) |
AOI | Adjusted operating income (loss) |
Company | Live Nation Entertainment, Inc. and subsidiaries |
FASB | Financial Accounting Standards Board |
GAAP | United States Generally Accepted Accounting Principles |
Live Nation | Live Nation Entertainment, Inc. and subsidiaries |
SEC | United States Securities and Exchange Commission |
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 ticketing business of the Company. |
June 30, 2016 | December 31, 2015 | ||||||
(in thousands) | |||||||
ASSETS | |||||||
Current assets | |||||||
Cash and cash equivalents | $ | 1,512,099 | $ | 1,303,125 | |||
Accounts receivable, less allowance of $18,216 and $17,168, respectively | 634,562 | 452,600 | |||||
Prepaid expenses | 779,743 | 496,226 | |||||
Other current assets | 43,548 | 36,364 | |||||
Total current assets | 2,969,952 | 2,288,315 | |||||
Property, plant and equipment | |||||||
Land, buildings and improvements | 822,761 | 840,032 | |||||
Computer equipment and capitalized software | 511,693 | 505,233 | |||||
Furniture and other equipment | 242,079 | 233,271 | |||||
Construction in progress | 85,720 | 47,684 | |||||
1,662,253 | 1,626,220 | ||||||
Less accumulated depreciation | 949,441 | 894,938 | |||||
712,812 | 731,282 | ||||||
Intangible assets | |||||||
Definite-lived intangible assets, net | 810,418 | 777,763 | |||||
Indefinite-lived intangible assets | 369,001 | 369,317 | |||||
Goodwill | 1,670,676 | 1,604,315 | |||||
Other long-term assets | 510,567 | 385,249 | |||||
Total assets | $ | 7,043,426 | $ | 6,156,241 | |||
LIABILITIES AND EQUITY | |||||||
Current liabilities | |||||||
Accounts payable, client accounts | $ | 710,087 | $ | 662,941 | |||
Accounts payable | 103,722 | 58,607 | |||||
Accrued expenses | 778,101 | 686,664 | |||||
Deferred revenue | 1,347,953 | 618,640 | |||||
Current portion of long-term debt, net | 44,918 | 42,352 | |||||
Other current liabilities | 38,653 | 32,002 | |||||
Total current liabilities | 3,023,434 | 2,101,206 | |||||
Long-term debt, net | 1,985,190 | 2,002,662 | |||||
Long-term deferred income taxes | 198,617 | 199,472 | |||||
Other long-term liabilities | 127,887 | 142,267 | |||||
Commitments and contingent liabilities | |||||||
Redeemable noncontrolling interests | 292,516 | 263,715 | |||||
Stockholders’ equity | |||||||
Common stock | 2,024 | 2,020 | |||||
Additional paid-in capital | 2,412,928 | 2,428,566 | |||||
Accumulated deficit | (1,083,176 | ) | (1,075,111 | ) | |||
Cost of shares held in treasury | (6,865 | ) | (6,865 | ) | |||
Accumulated other comprehensive loss | (136,404 | ) | (111,657 | ) | |||
Total Live Nation stockholders’ equity | 1,188,507 | 1,236,953 | |||||
Noncontrolling interests | 227,275 | 209,966 | |||||
Total equity | 1,415,782 | 1,446,919 | |||||
Total liabilities and equity | $ | 7,043,426 | $ | 6,156,241 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
(in thousands except share and per share data) | |||||||||||||||
Revenue | $ | 2,179,258 | $ | 1,765,777 | $ | 3,386,974 | $ | 2,886,089 | |||||||
Operating expenses: | |||||||||||||||
Direct operating expenses | 1,605,688 | 1,279,099 | 2,389,891 | 2,000,388 | |||||||||||
Selling, general and administrative expenses | 374,826 | 329,570 | 712,040 | 643,702 | |||||||||||
Depreciation and amortization | 95,424 | 88,571 | 190,379 | 173,112 | |||||||||||
Gain on disposal of operating assets | (279 | ) | (76 | ) | (254 | ) | (37 | ) | |||||||
Corporate expenses | 29,440 | 26,368 | 54,049 | 50,614 | |||||||||||
Operating income | 74,159 | 42,245 | 40,869 | 18,310 | |||||||||||
Interest expense | 25,284 | 25,650 | 50,716 | 51,013 | |||||||||||
Interest income | (650 | ) | (394 | ) | (1,206 | ) | (1,959 | ) | |||||||
Equity in losses (earnings) of nonconsolidated affiliates | 305 | 367 | (287 | ) | (2,613 | ) | |||||||||
Other expense (income), net | 7,353 | (8,500 | ) | (1,194 | ) | 12,528 | |||||||||
Income (loss) before income taxes | 41,867 | 25,122 | (7,160 | ) | (40,659 | ) | |||||||||
Income tax expense | 5,406 | 4,910 | 12,333 | 5,655 | |||||||||||
Net income (loss) | 36,461 | 20,212 | (19,493 | ) | (46,314 | ) | |||||||||
Net income (loss) attributable to noncontrolling interests | (1,280 | ) | 5,156 | (12,716 | ) | (3,091 | ) | ||||||||
Net income (loss) attributable to common stockholders of Live Nation | $ | 37,741 | $ | 15,056 | $ | (6,777 | ) | $ | (43,223 | ) | |||||
Basic and diluted net income (loss) per common share available to common stockholders of Live Nation | $ | 0.13 | $ | 0.06 | $ | (0.16 | ) | $ | (0.25 | ) | |||||
Weighted average common shares outstanding: | |||||||||||||||
Basic | 201,896,009 | 200,767,811 | 201,796,075 | 200,463,314 | |||||||||||
Diluted | 208,601,733 | 208,778,589 | 201,796,075 | 200,463,314 | |||||||||||
Reconciliation to net income (loss) available to common stockholders of Live Nation: | |||||||||||||||
Net income (loss) attributable to common stockholders of Live Nation | $ | 37,741 | $ | 15,056 | $ | (6,777 | ) | $ | (43,223 | ) | |||||
Accretion of redeemable noncontrolling interests | (11,292 | ) | (3,105 | ) | (24,628 | ) | (6,993 | ) | |||||||
Basic and diluted net income (loss) available to common stockholders of Live Nation | $ | 26,449 | $ | 11,951 | $ | (31,405 | ) | $ | (50,216 | ) | |||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
(in thousands) | |||||||||||||||
Net income (loss) | $ | 36,461 | $ | 20,212 | $ | (19,493 | ) | $ | (46,314 | ) | |||||
Other comprehensive income (loss), net of tax: | |||||||||||||||
Foreign currency translation adjustments | (23,499 | ) | 26,609 | (24,747 | ) | (18,059 | ) | ||||||||
Other | — | (62 | ) | — | 138 | ||||||||||
Comprehensive income (loss) | 12,962 | 46,759 | (44,240 | ) | (64,235 | ) | |||||||||
Comprehensive income (loss) attributable to noncontrolling interests | (1,280 | ) | 5,156 | (12,716 | ) | (3,091 | ) | ||||||||
Comprehensive income (loss) attributable to common stockholders of Live Nation | $ | 14,242 | $ | 41,603 | $ | (31,524 | ) | $ | (61,144 | ) |
Six Months Ended June 30, | |||||||
2016 | 2015 | ||||||
(in thousands) | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||
Net loss | $ | (19,493 | ) | $ | (46,314 | ) | |
Reconciling items: | |||||||
Depreciation | 67,482 | 63,705 | |||||
Amortization | 122,897 | 109,407 | |||||
Deferred income tax benefit | (2,708 | ) | (1,415 | ) | |||
Amortization of debt issuance costs, discounts and premium, net | 5,199 | 5,301 | |||||
Non-cash compensation expense | 17,144 | 17,562 | |||||
Other, net | 1,845 | (494 | ) | ||||
Changes in operating assets and liabilities, net of effects of acquisitions and dispositions: | |||||||
Increase in accounts receivable | (171,670 | ) | (122,058 | ) | |||
Increase in prepaid expenses and other assets | (407,450 | ) | (317,566 | ) | |||
Increase in accounts payable, accrued expenses and other liabilities | 186,888 | 33,936 | |||||
Increase in deferred revenue | 710,841 | 620,412 | |||||
Net cash provided by operating activities | 510,975 | 362,476 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||
Advances and collections of notes receivable, net | (4,513 | ) | (14,136 | ) | |||
Investments made in nonconsolidated affiliates | (13,508 | ) | (11,023 | ) | |||
Purchases of property, plant and equipment | (78,880 | ) | (67,344 | ) | |||
Cash paid for acquisitions, net of cash acquired | (122,318 | ) | (69,244 | ) | |||
Other, net | (191 | ) | (2,194 | ) | |||
Net cash used in investing activities | (219,410 | ) | (163,941 | ) | |||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||
Payments on long-term debt | (18,640 | ) | (17,170 | ) | |||
Distributions to noncontrolling interests | (22,211 | ) | (9,370 | ) | |||
Purchases and sales of noncontrolling interests, net | (16,559 | ) | (9,491 | ) | |||
Proceeds from exercise of stock options | 743 | 13,015 | |||||
Payments for deferred and contingent consideration | (3,732 | ) | (4,125 | ) | |||
Other, net | (8,695 | ) | (5,221 | ) | |||
Net cash used in financing activities | (69,094 | ) | (32,362 | ) | |||
Effect of exchange rate changes on cash and cash equivalents | (13,497 | ) | (22,383 | ) | |||
Net increase in cash and cash equivalents | 208,974 | 143,790 | |||||
Cash and cash equivalents at beginning of period | 1,303,125 | 1,382,029 | |||||
Cash and cash equivalents at end of period | $ | 1,512,099 | $ | 1,525,819 |
Revenue- generating contracts | Client / vendor relationships | Trademarks and naming rights | Non-compete agreements | Venue management and leaseholds | Technology | Other | Total | ||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||
Balance as of December 31, 2015: | |||||||||||||||||||||||||||||||
Gross carrying amount | $ | 700,795 | $ | 379,282 | $ | 86,556 | $ | 176,354 | $ | 66,051 | $ | 30,265 | $ | 3,598 | $ | 1,442,901 | |||||||||||||||
Accumulated amortization | (313,743 | ) | (169,620 | ) | (14,578 | ) | (121,319 | ) | (35,645 | ) | (8,602 | ) | (1,631 | ) | (665,138 | ) | |||||||||||||||
Net | 387,052 | 209,662 | 71,978 | 55,035 | 30,406 | 21,663 | 1,967 | 777,763 | |||||||||||||||||||||||
Gross carrying amount: | |||||||||||||||||||||||||||||||
Acquisitions— current year | 46,541 | 55,910 | 259 | — | — | 8,604 | — | 111,314 | |||||||||||||||||||||||
Acquisitions— prior year | 11,404 | 782 | 3,620 | 1,500 | 1,174 | — | 154 | 18,634 | |||||||||||||||||||||||
Dispositions | — | (2,299 | ) | — | — | (1,093 | ) | — | — | (3,392 | ) | ||||||||||||||||||||
Foreign exchange | (9,923 | ) | (900 | ) | (387 | ) | (2,264 | ) | (1,697 | ) | (96 | ) | — | (15,267 | ) | ||||||||||||||||
Other(1) | (1,919 | ) | (2,307 | ) | (5 | ) | — | — | — | (1 | ) | (4,232 | ) | ||||||||||||||||||
Net change | 46,103 | 51,186 | 3,487 | (764 | ) | (1,616 | ) | 8,508 | 153 | 107,057 | |||||||||||||||||||||
Accumulated amortization: | |||||||||||||||||||||||||||||||
Amortization | (33,092 | ) | (31,098 | ) | (4,931 | ) | (10,554 | ) | (2,676 | ) | (2,616 | ) | (198 | ) | (85,165 | ) | |||||||||||||||
Dispositions | — | 599 | — | — | — | — | — | 599 | |||||||||||||||||||||||
Foreign exchange | 4,034 | 282 | 180 | 618 | 713 | 176 | 8 | 6,011 | |||||||||||||||||||||||
Other(1) | 1,854 | 2,307 | — | — | — | — | (8 | ) | 4,153 | ||||||||||||||||||||||
Net change | (27,204 | ) | (27,910 | ) | (4,751 | ) | (9,936 | ) | (1,963 | ) | (2,440 | ) | (198 | ) | (74,402 | ) | |||||||||||||||
Balance as of June 30, 2016: | |||||||||||||||||||||||||||||||
Gross carrying amount | 746,898 | 430,468 | 90,043 | 175,590 | 64,435 | 38,773 | 3,751 | 1,549,958 | |||||||||||||||||||||||
Accumulated amortization | (340,947 | ) | (197,530 | ) | (19,329 | ) | (131,255 | ) | (37,608 | ) | (11,042 | ) | (1,829 | ) | (739,540 | ) | |||||||||||||||
Net | $ | 405,951 | $ | 232,938 | $ | 70,714 | $ | 44,335 | $ | 26,827 | $ | 27,731 | $ | 1,922 | $ | 810,418 |
Weighted- Average Life (years) | |
Revenue-generating contracts | 7 |
Client/vendor relationships | 5 |
Trademarks and naming rights | 5 |
Technology | 5 |
All categories | 6 |
(in thousands) | |||
July 1 - December 31, 2016 | $ | 95,596 | |
2017 | $ | 164,773 | |
2018 | $ | 142,238 | |
2019 | $ | 118,143 | |
2020 | $ | 102,921 |
Concerts | Sponsorship & Advertising | Ticketing | Artist Nation | Total | |||||||||||||||
(in thousands) | |||||||||||||||||||
Balance as of December 31, 2015: | |||||||||||||||||||
Goodwill | $ | 602,771 | $ | 332,081 | $ | 733,825 | $ | 340,501 | $ | 2,009,178 | |||||||||
Accumulated impairment losses | (386,915 | ) | — | — | (17,948 | ) | (404,863 | ) | |||||||||||
Net | 215,856 | 332,081 | 733,825 | 322,553 | 1,604,315 | ||||||||||||||
Acquisitions—current year | 30,990 | 25,855 | 3,638 | 17,873 | 78,356 | ||||||||||||||
Acquisitions—prior year | (19,171 | ) | 18,581 | — | 449 | (141 | ) | ||||||||||||
Dispositions | — | — | — | (323 | ) | (323 | ) | ||||||||||||
Foreign exchange | (15,542 | ) | 3,145 | 1,232 | (366 | ) | (11,531 | ) | |||||||||||
Balance as of June 30, 2016: | |||||||||||||||||||
Goodwill | 599,048 | 379,662 | 738,695 | 358,134 | 2,075,539 | ||||||||||||||
Accumulated impairment losses | (386,915 | ) | — | — | (17,948 | ) | (404,863 | ) | |||||||||||
Net | $ | 212,133 | $ | 379,662 | $ | 738,695 | $ | 340,186 | $ | 1,670,676 |
June 30, | ||||||||
2016 | 2015 | |||||||
(in thousands) | ||||||||
Revenue | $ | 24,608 | $ | 25,273 | ||||
Operating income | $ | 8,143 | $ | 10,540 | ||||
Net income | $ | 4,915 | $ | 6,968 | ||||
Net income attributable to the common stockholders of the equity investees | $ | 4,878 | $ | 6,856 |
Live Nation Stockholders’ Equity | Noncontrolling Interests | Total Equity | Redeemable Noncontrolling Interests | ||||||||||||
(in thousands) | (in thousands) | ||||||||||||||
Balance at December 31, 2015 | $ | 1,236,953 | $ | 209,966 | $ | 1,446,919 | $ | 263,715 | |||||||
Non-cash compensation expense | 17,144 | — | 17,144 | — | |||||||||||
Common stock issued under stock plans, net of shares withheld for employee taxes | (3,606 | ) | — | (3,606 | ) | — | |||||||||
Exercise of stock options | 743 | — | 743 | — | |||||||||||
Acquisitions | — | 39,963 | 39,963 | 26,183 | |||||||||||
Divestitures | — | (1,856 | ) | (1,856 | ) | — | |||||||||
Purchases of noncontrolling interests | (6,575 | ) | (7,664 | ) | (14,239 | ) | (563 | ) | |||||||
Redeemable noncontrolling interests fair value adjustments | (24,628 | ) | — | (24,628 | ) | 24,628 | |||||||||
Cash distributions | — | (12,914 | ) | (12,914 | ) | (9,297 | ) | ||||||||
Other | — | 608 | 608 | (262 | ) | ||||||||||
Comprehensive loss: | |||||||||||||||
Net loss | (6,777 | ) | (828 | ) | (7,605 | ) | (11,888 | ) | |||||||
Foreign currency translation adjustments | (24,747 | ) | — | (24,747 | ) | — | |||||||||
Balance at June 30, 2016 | $ | 1,188,507 | $ | 227,275 | $ | 1,415,782 | $ | 292,516 |
Defined Benefit Pension Items | Foreign Currency Items | Total | |||||||||
(in thousands) | |||||||||||
Balance at December 31, 2015 | $ | (358 | ) | $ | (111,299 | ) | $ | (111,657 | ) | ||
Other comprehensive loss before reclassifications | — | (24,747 | ) | (24,747 | ) | ||||||
Balance at June 30, 2016 | $ | (358 | ) | $ | (136,046 | ) | $ | (136,404 | ) |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||
Weighted average common shares—basic | 201,896,009 | 200,767,811 | 201,796,075 | 200,463,314 | |||||||
Effect of dilutive securities: | |||||||||||
Stock options, restricted stock and warrants | 6,705,724 | 8,010,778 | — | — | |||||||
Weighted average common shares—diluted | 208,601,733 | 208,778,589 | 201,796,075 | 200,463,314 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||
(in thousands) | |||||||||||
Options to purchase shares of common stock | 5,384 | 3,075 | 17,313 | 16,657 | |||||||
Restricted stock awards—unvested | 523 | 242 | 1,115 | 1,047 | |||||||
Conversion shares related to the convertible senior notes | 7,930 | 7,930 | 7,930 | 7,930 | |||||||
Number of anti-dilutive potentially issuable shares excluded from diluted common shares outstanding | 13,837 | 11,247 | 26,358 | 25,634 |
Concerts | Sponsorship & Advertising | Ticketing | Artist Nation | Other | Corporate | Eliminations | Consolidated | ||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||
Three Months Ended June 30, 2016 | |||||||||||||||||||||||||||||||
Revenue | $ | 1,597,756 | $ | 95,200 | $ | 443,348 | $ | 86,720 | $ | 1,506 | $ | — | $ | (45,272 | ) | $ | 2,179,258 | ||||||||||||||
Direct operating expenses | 1,350,297 | 15,687 | 235,546 | 48,875 | — | — | (44,717 | ) | 1,605,688 | ||||||||||||||||||||||
Selling, general and administrative expenses | 193,357 | 16,004 | 121,067 | 39,618 | 4,780 | — | — | 374,826 | |||||||||||||||||||||||
Depreciation and amortization | 35,673 | 4,423 | 39,927 | 14,224 | 880 | 852 | (555 | ) | 95,424 | ||||||||||||||||||||||
Loss (gain) on disposal of operating assets | (324 | ) | — | 31 | (45 | ) | — | 59 | — | (279 | ) | ||||||||||||||||||||
Corporate expenses | — | — | — | — | — | 29,440 | — | 29,440 |
Concerts | Sponsorship & Advertising | Ticketing | Artist Nation | Other | Corporate | Eliminations | Consolidated | ||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||
Operating income (loss) | $ | 18,753 | $ | 59,086 | $ | 46,777 | $ | (15,952 | ) | $ | (4,154 | ) | $ | (30,351 | ) | $ | — | $ | 74,159 | ||||||||||||
Intersegment revenue | $ | 43,070 | $ | — | $ | — | $ | 2,202 | $ | — | $ | — | $ | (45,272 | ) | $ | — | ||||||||||||||
Three Months Ended June 30, 2015 | |||||||||||||||||||||||||||||||
Revenue | $ | 1,268,382 | $ | 81,071 | $ | 360,197 | $ | 87,835 | $ | 791 | $ | — | $ | (32,499 | ) | $ | 1,765,777 | ||||||||||||||
Direct operating expenses | 1,075,507 | 10,717 | 171,045 | 53,806 | — | — | (31,976 | ) | 1,279,099 | ||||||||||||||||||||||
Selling, general and administrative expenses | 158,689 | 13,856 | 117,027 | 39,582 | 416 | — | — | 329,570 | |||||||||||||||||||||||
Depreciation and amortization | 40,033 | 2,225 | 35,561 | 10,756 | 13 | 506 | (523 | ) | 88,571 | ||||||||||||||||||||||
Loss (gain) on disposal of operating assets | (55 | ) | — | (30 | ) | — | — | 9 | — | (76 | ) | ||||||||||||||||||||
Corporate expenses | — | — | — | — | — | 26,368 | — | 26,368 | |||||||||||||||||||||||
Operating income (loss) | $ | (5,792 | ) | $ | 54,273 | $ | 36,594 | $ | (16,309 | ) | $ | 362 | $ | (26,883 | ) | $ | — | $ | 42,245 | ||||||||||||
Intersegment revenue | $ | 30,572 | $ | — | $ | 460 | $ | 1,467 | $ | — | $ | — | $ | (32,499 | ) | $ | — | ||||||||||||||
Six Months Ended June 30, 2016 | |||||||||||||||||||||||||||||||
Revenue | $ | 2,278,834 | $ | 152,836 | $ | 849,134 | $ | 161,785 | $ | 2,347 | $ | — | $ | (57,962 | ) | $ | 3,386,974 | ||||||||||||||
Direct operating expenses | 1,887,431 | 29,201 | 442,011 | 88,086 | — | — | (56,838 | ) | 2,389,891 | ||||||||||||||||||||||
Selling, general and administrative expenses | 354,997 | 29,873 | 239,329 | 80,458 | 7,383 | — | — | 712,040 | |||||||||||||||||||||||
Depreciation and amortization | 67,120 | 9,329 | 85,676 | 26,704 | 900 | 1,774 | (1,124 | ) | 190,379 | ||||||||||||||||||||||
Loss (gain) on disposal of operating assets | (358 | ) | — | 31 | (45 | ) | — | 118 | — | (254 | ) | ||||||||||||||||||||
Corporate expenses | — | — | — | — | — | 54,049 | — | 54,049 | |||||||||||||||||||||||
Operating income (loss) | $ | (30,356 | ) | $ | 84,433 | $ | 82,087 | $ | (33,418 | ) | $ | (5,936 | ) | $ | (55,941 | ) | $ | — | $ | 40,869 | |||||||||||
Intersegment revenue | $ | 54,517 | $ | — | $ | — | $ | 3,445 | $ | — | $ | — | $ | (57,962 | ) | $ | — | ||||||||||||||
Capital expenditures | $ | 29,958 | $ | 962 | $ | 40,892 | $ | 789 | $ | 460 | $ | 4,133 | $ | — | $ | 77,194 |
Concerts | Sponsorship & Advertising | Ticketing | Artist Nation | Other | Corporate | Eliminations | Consolidated | ||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||
Six Months Ended June 30, 2015 | |||||||||||||||||||||||||||||||
Revenue | $ | 1,891,616 | $ | 133,168 | $ | 735,827 | $ | 165,780 | $ | 1,584 | $ | — | $ | (41,886 | ) | $ | 2,886,089 | ||||||||||||||
Direct operating expenses | 1,561,479 | 21,345 | 356,737 | 100,636 | 1,068 | — | (40,877 | ) | 2,000,388 | ||||||||||||||||||||||
Selling, general and administrative expenses | 309,113 | 26,950 | 229,587 | 76,802 | 1,250 | — | — | 643,702 | |||||||||||||||||||||||
Depreciation and amortization | 69,214 | 4,213 | 78,857 | 20,791 | 24 | 1,022 | (1,009 | ) | 173,112 | ||||||||||||||||||||||
Loss (gain) on disposal of operating assets | 171 | — | (179 | ) | — | — | (29 | ) | — | (37 | ) | ||||||||||||||||||||
Corporate expenses | — | — | — | — | — | 50,614 | — | 50,614 | |||||||||||||||||||||||
Operating income (loss) | $ | (48,361 | ) | $ | 80,660 | $ | 70,825 | $ | (32,449 | ) | $ | (758 | ) | $ | (51,607 | ) | $ | — | $ | 18,310 | |||||||||||
Intersegment revenue | $ | 39,311 | $ | — | $ | 460 | $ | 2,115 | $ | — | $ | — | $ | (41,886 | ) | $ | — | ||||||||||||||
Capital expenditures | $ | 18,867 | $ | 1,721 | $ | 42,117 | $ | 868 | $ | — | $ | 438 | $ | — | $ | 64,011 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||
Concerts (1) | |||||||||||
Estimated events: | |||||||||||
North America | 4,441 | 4,382 | 7,896 | 7,819 | |||||||
International | 2,236 | 1,961 | 4,655 | 3,668 | |||||||
Total estimated events | 6,677 | 6,343 | 12,551 | 11,487 | |||||||
Estimated fans (rounded): | |||||||||||
North America | 12,101,000 | 10,754,000 | 16,962,000 | 16,221,000 | |||||||
International | 6,878,000 | 4,740,000 | 11,013,000 | 7,893,000 | |||||||
Total estimated fans | 18,979,000 | 15,494,000 | 27,975,000 | 24,114,000 | |||||||
Ticketing (2) | |||||||||||
Number of tickets sold (in thousands) | 40,220 | 36,788 | 80,911 | 74,733 |
(1) | Events generally represent a single performance by an artist. Fans generally represent the number of people who attend an event. Festivals are counted as one event in the quarter in which the festival begins, but the number of fans is based on the days the fans were present at the festival and thus can be reported across multiple quarters. Events and fan attendance metrics are estimated each quarter. |
(2) | The number of tickets sold includes primary tickets only. This metric includes tickets sold during the period regardless of event timing except for our own events where our concert promoters control ticketing which are reported as the events occur. The total number of tickets sold reported above for the three months ended June 30, 2016 and 2015 excludes approximately 61 million and 61 million, respectively, and for the six months ended June 30, 2016 and 2015 excludes approximately 136 million and 133 million, respectively, of tickets sold using our Ticketmaster systems, through season seat packages and our venue clients’ box offices, for which we do not receive a fee. |
Adjusted operating income (loss) | 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, 2016 | |||||||||||||||||||||||
Concerts | $ | 60,183 | $ | 1,885 | $ | (324 | ) | $ | 35,673 | $ | 4,196 | $ | 18,753 | ||||||||||
Sponsorship & Advertising | 63,812 | 303 | — | 4,423 | — | 59,086 | |||||||||||||||||
Ticketing | 87,545 | 619 | 31 | 39,927 | 191 | 46,777 | |||||||||||||||||
Artist Nation | (1,760 | ) | 995 | (45 | ) | 14,224 | (982 | ) | (15,952 | ) | |||||||||||||
Other and Eliminations | (3,635 | ) | 12 | — | 325 | 182 | (4,154 | ) | |||||||||||||||
Corporate | (25,090 | ) | 4,407 | 59 | 852 | (57 | ) | (30,351 | ) | ||||||||||||||
Total | $ | 181,055 | $ | 8,221 | $ | (279 | ) | $ | 95,424 | $ | 3,530 | $ | 74,159 | ||||||||||
Three Months Ended June 30, 2015 | |||||||||||||||||||||||
Concerts | $ | 37,285 | $ | 1,758 | $ | (55 | ) | $ | 40,033 | $ | 1,341 | $ | (5,792 | ) | |||||||||
Sponsorship & Advertising | 56,900 | 402 | — | 2,225 | — | 54,273 | |||||||||||||||||
Ticketing | 73,215 | 642 | (30 | ) | 35,561 | 448 | 36,594 | ||||||||||||||||
Artist Nation | (3,223 | ) | 1,226 | — | 10,756 | 1,104 | (16,309 | ) | |||||||||||||||
Other and Eliminations | (148 | ) | — | — | (510 | ) | — | 362 | |||||||||||||||
Corporate | (22,305 | ) | 4,037 | 9 | 506 | 26 | (26,883 | ) | |||||||||||||||
Total | $ | 141,724 | $ | 8,065 | $ | (76 | ) | $ | 88,571 | $ | 2,919 | $ | 42,245 | ||||||||||
Six Months Ended June 30, 2016 | |||||||||||||||||||||||
Concerts | $ | 46,921 | $ | 3,741 | $ | (358 | ) | $ | 67,120 | $ | 6,774 | $ | (30,356 | ) | |||||||||
Sponsorship & Advertising | 94,452 | 690 | — | 9,329 | — | 84,433 | |||||||||||||||||
Ticketing | 169,597 | 1,583 | 31 | 85,676 | 220 | 82,087 | |||||||||||||||||
Artist Nation | (5,477 | ) | 2,202 | (45 | ) | 26,704 | (920 | ) | (33,418 | ) | |||||||||||||
Other and Eliminations | (5,966 | ) | 12 | — | (224 | ) | 182 | (5,936 | ) | ||||||||||||||
Corporate | (45,087 | ) | 8,916 | 118 | 1,774 | 46 | (55,941 | ) | |||||||||||||||
Total | $ | 254,440 | $ | 17,144 | $ | (254 | ) | $ | 190,379 | $ | 6,302 | $ | 40,869 | ||||||||||
Six Months Ended June 30, 2015 | |||||||||||||||||||||||
Concerts | $ | 25,637 | $ | 3,838 | $ | 171 | $ | 69,214 | $ | 775 | $ | (48,361 | ) | ||||||||||
Sponsorship & Advertising | 85,742 | 869 | — | 4,213 | — | 80,660 | |||||||||||||||||
Ticketing | 151,603 | 1,505 | (179 | ) | 78,857 | 595 | 70,825 | ||||||||||||||||
Artist Nation | (7,990 | ) | 2,558 | — | 20,791 | 1,110 | (32,449 | ) | |||||||||||||||
Other and Eliminations | (1,743 | ) | — | — | (985 | ) | — | (758 | ) | ||||||||||||||
Corporate | (41,910 | ) | 8,792 | (29 | ) | 1,022 | (88 | ) | (51,607 | ) | |||||||||||||
Total | $ | 211,339 | $ | 17,562 | $ | (37 | ) | $ | 173,112 | $ | 2,392 | $ | 18,310 |
Three Months Ended June 30, | % Change | Six Months Ended June 30, | % Change | ||||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||||
Revenue | $ | 1,597,756 | $ | 1,268,382 | 26% | $ | 2,278,834 | $ | 1,891,616 | 20% | |||||||||
Direct operating expenses | 1,350,297 | 1,075,507 | 26% | 1,887,431 | 1,561,479 | 21% | |||||||||||||
Selling, general and administrative expenses | 193,357 | 158,689 | 22% | 354,997 | 309,113 | 15% | |||||||||||||
Depreciation and amortization | 35,673 | 40,033 | (11)% | 67,120 | 69,214 | (3)% | |||||||||||||
Loss (gain) on disposal of operating assets | (324 | ) | (55 | ) | * | (358 | ) | 171 | * | ||||||||||
Operating income (loss) | $ | 18,753 | $ | (5,792 | ) | * | $ | (30,356 | ) | $ | (48,361 | ) | 37% | ||||||
Operating margin | 1.2 | % | (0.5 | )% | (1.3 | )% | (2.6 | )% | |||||||||||
AOI** | $ | 60,183 | $ | 37,285 | 61% | $ | 46,921 | $ | 25,637 | 83% | |||||||||
AOI margin | 3.8 | % | 2.9 | % | 2.1 | % | 1.4 | % |
* | Percentages are not meaningful. |
** | See “—Non-GAAP Measures” above for definition and reconciliation of AOI. |
Three Months Ended June 30, | % Change | Six Months Ended June 30, | % Change | ||||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||||
Revenue | $ | 95,200 | $ | 81,071 | 17% | $ | 152,836 | $ | 133,168 | 15% | |||||||||
Direct operating expenses | 15,687 | 10,717 | 46% | 29,201 | 21,345 | 37% | |||||||||||||
Selling, general and administrative expenses | 16,004 | 13,856 | 16% | 29,873 | 26,950 | 11% | |||||||||||||
Depreciation and amortization | 4,423 | 2,225 | 99% | 9,329 | 4,213 | * | |||||||||||||
Operating income | $ | 59,086 | $ | 54,273 | 9% | $ | 84,433 | $ | 80,660 | 5% | |||||||||
Operating margin | 62.1 | % | 66.9 | % | 55.2 | % | 60.6 | % | |||||||||||
AOI** | $ | 63,812 | $ | 56,900 | 12% | $ | 94,452 | $ | 85,742 | 10% | |||||||||
AOI margin | 67.0 | % | 70.2 | % | 61.8 | % | 64.4 | % |
* | Percentages are not meaningful. |
** | See “—Non-GAAP Measures” above for definition and reconciliation of AOI. |
Three Months Ended June 30, | % Change | Six Months Ended June 30, | % Change | ||||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||||
Revenue | $ | 443,348 | $ | 360,197 | 23% | $ | 849,134 | $ | 735,827 | 15% | |||||||||
Direct operating expenses | 235,546 | 171,045 | 38% | 442,011 | 356,737 | 24% | |||||||||||||
Selling, general and administrative expenses | 121,067 | 117,027 | 3% | 239,329 | 229,587 | 4% | |||||||||||||
Depreciation and amortization | 39,927 | 35,561 | 12% | 85,676 | 78,857 | 9% | |||||||||||||
Loss (gain) on disposal of operating assets | 31 | (30 | ) | * | 31 | (179 | ) | * | |||||||||||
Operating income | $ | 46,777 | $ | 36,594 | 28% | $ | 82,087 | $ | 70,825 | 16% | |||||||||
Operating margin | 10.6 | % | 10.2 | % | 9.7 | % | 9.6 | % | |||||||||||
AOI** | $ | 87,545 | $ | 73,215 | 20% | $ | 169,597 | $ | 151,603 | 12% | |||||||||
AOI margin | 19.7 | % | 20.3 | % | 20.0 | % | 20.6 | % |
* | Percentages are not meaningful. |
** | See “—Non-GAAP Measures” above for definition and reconciliation of AOI. |
Three Months Ended June 30, | % Change | Six Months Ended June 30, | % Change | ||||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||||
Revenue | $ | 86,720 | $ | 87,835 | (1)% | $ | 161,785 | $ | 165,780 | (2)% | |||||||||
Direct operating expenses | 48,875 | 53,806 | (9)% | 88,086 | 100,636 | (12)% | |||||||||||||
Selling, general and administrative expenses | 39,618 | 39,582 | * | 80,458 | 76,802 | 5% | |||||||||||||
Depreciation and amortization | 14,224 | 10,756 | 32% | 26,704 | 20,791 | 28% | |||||||||||||
Gain on disposal of operating assets | (45 | ) | — | * | (45 | ) | — | * | |||||||||||
Operating loss | $ | (15,952 | ) | $ | (16,309 | ) | 2% | $ | (33,418 | ) | $ | (32,449 | ) | (3)% | |||||
Operating margin | (18.4 | )% | (18.6 | )% | (20.7 | )% | (19.6 | )% | |||||||||||
AOI** | $ | (1,760 | ) | $ | (3,223 | ) | 45% | $ | (5,477 | ) | $ | (7,990 | ) | 31% | |||||
AOI margin | (2.0 | )% | (3.7 | )% | (3.4 | )% | (4.8 | )% |
* | Percentages are not meaningful. |
** | See “—Non-GAAP Measures” above for definition and reconciliation of AOI. |
Three Months Ended June 30, | % Change | ||||||||||||||||||
2016 | 2015 | ||||||||||||||||||
As Reported | Currency Impacts | Constant Currency** | As Reported | As Reported | Constant Currency | ||||||||||||||
(in thousands) | |||||||||||||||||||
Revenue | $ | 2,179,258 | $ | 22,879 | $ | 2,202,137 | $ | 1,765,777 | 23% | 25% | |||||||||
Operating expenses: | |||||||||||||||||||
Direct operating expenses | 1,605,688 | 17,681 | 1,623,369 | 1,279,099 | 26% | 27% | |||||||||||||
Selling, general and administrative expenses | 374,826 | 3,032 | 377,858 | 329,570 | 14% | 15% | |||||||||||||
Depreciation and amortization | 95,424 | 1,128 | 96,552 | 88,571 | 8% | 9% | |||||||||||||
Gain on disposal of operating assets | (279 | ) | 11 | (268 | ) | (76 | ) | * | * | ||||||||||
Corporate expenses | 29,440 | (1 | ) | 29,439 | 26,368 | 12% | 12% | ||||||||||||
Operating income | 74,159 | $ | 1,028 | $ | 75,187 | 42,245 | 76% | 78% | |||||||||||
Operating margin | 3.4 | % | 3.4 | % | 2.4 | % | |||||||||||||
Interest expense | 25,284 | 25,650 | |||||||||||||||||
Interest income | (650 | ) | (394 | ) | |||||||||||||||
Equity in losses of nonconsolidated affiliates | 305 | 367 | |||||||||||||||||
Other expense (income), net | 7,353 | (8,500 | ) | ||||||||||||||||
Income before income taxes | 41,867 | 25,122 | |||||||||||||||||
Income tax expense | 5,406 | 4,910 | |||||||||||||||||
Net income | 36,461 | 20,212 | |||||||||||||||||
Net income (loss) attributable to noncontrolling interests | (1,280 | ) | 5,156 | ||||||||||||||||
Net income attributable to common stockholders of Live Nation | $ | 37,741 | $ | 15,056 |
* | Percentages are not meaningful. |
** | See “—Non-GAAP Measures” above for definition of constant currency. |
Six Months Ended June 30, | % Change | ||||||||||||||||||
2016 | 2015 | ||||||||||||||||||
As Reported | Currency Impacts | Constant Currency** | As Reported | As Reported | Constant Currency | ||||||||||||||
(in thousands) | |||||||||||||||||||
Revenue | $ | 3,386,974 | $ | 45,380 | $ | 3,432,354 | $ | 2,886,089 | 17% | 19% | |||||||||
Operating expenses: | |||||||||||||||||||
Direct operating expenses | 2,389,891 | 33,755 | 2,423,646 | 2,000,388 | 19% | 21% | |||||||||||||
Selling, general and administrative expenses | 712,040 | 8,565 | 720,605 | 643,702 | 11% | 12% | |||||||||||||
Depreciation and amortization | 190,379 | 2,587 | 192,966 | 173,112 | 10% | 11% | |||||||||||||
Gain on disposal of operating assets | (254 | ) | 9 | (245 | ) | (37 | ) | * | * | ||||||||||
Corporate expenses | 54,049 | 15 | 54,064 | 50,614 | 7% | 7% | |||||||||||||
Operating income | 40,869 | $ | 449 | $ | 41,318 | 18,310 | * | * | |||||||||||
Operating margin | 1.2 | % | 1.2 | % | 0.6 | % | |||||||||||||
Interest expense | 50,716 | 51,013 | |||||||||||||||||
Interest income | (1,206 | ) | (1,959 | ) | |||||||||||||||
Equity in earnings of nonconsolidated affiliates | (287 | ) | (2,613 | ) | |||||||||||||||
Other expense (income), net | (1,194 | ) | 12,528 | ||||||||||||||||
Loss before income taxes | (7,160 | ) | (40,659 | ) | |||||||||||||||
Income tax expense | 12,333 | 5,655 | |||||||||||||||||
Net loss | (19,493 | ) | (46,314 | ) | |||||||||||||||
Net loss attributable to noncontrolling interests | (12,716 | ) | (3,091 | ) | |||||||||||||||
Net loss attributable to common stockholders of Live Nation | $ | (6,777 | ) | $ | (43,223 | ) |
Three Months Ended June 30, | % Change | Six Months Ended June 30, | % Change | ||||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||||||
Depreciation | $ | 34,413 | $ | 31,571 | 9% | $ | 67,482 | $ | 63,705 | 6% | |||||||||
Amortization of intangibles | 45,428 | 43,531 | 4% | 85,165 | 76,130 | 12% | |||||||||||||
Amortization of nonrecoupable ticketing contract advances *** | 15,042 | 13,219 | 14% | 36,481 | 32,777 | 11% | |||||||||||||
Amortization of other assets | 541 | 250 | * | 1,251 | 500 | * | |||||||||||||
$ | 95,424 | $ | 88,571 | $ | 190,379 | $ | 173,112 |
* | Percentages are not meaningful. |
** | See “—Non-GAAP Measures” above for definition of constant currency. |
*** | In accounting for the merger between Live Nation and Ticketmaster Entertainment LLC in January 2010, the nonrecoupable ticketing contract advances that existed at the date of the merger were written off in acquisition accounting in accordance with GAAP. Had we continued amortizing the net book value of these nonrecoupable ticketing contract advances, the amortization above would have been $0.3 million and $0.5 million higher for the three months ended June 30, 2016 and 2015, respectively, and $0.7 million and $1.0 million higher for the six months ended June 30, 2016 and 2015, respectively. |
Six Months Ended June 30, | |||||||
2016 | 2015 (1) | ||||||
(in thousands) | |||||||
Maintenance capital expenditures | $ | 37,600 | $ | 30,248 | |||
Revenue generating capital expenditures | 39,552 | 33,350 | |||||
Total capital expenditures | $ | 77,152 | $ | 63,598 |
Six Months Ended June 30, | |||||||
2016 | 2015 | ||||||
(in thousands) | |||||||
Cash provided by (used in): | |||||||
Operating activities | $ | 510,975 | $ | 362,476 | |||
Investing activities | $ | (219,410 | ) | $ | (163,941 | ) | |
Financing activities | $ | (69,094 | ) | $ | (32,362 | ) |
Six months ended June 30, | Year Ended December 31, | |||||||||
2016 | 2015 | 2015 | 2014 | 2013 | 2012 | |||||
* | * | 1.03 | * | * | * |
* | For the six months ended June 30, 2016 and 2015, fixed charges exceeded earnings before income taxes and fixed charges by $7.4 million and $43.3 million, respectively. For the years ended December 31, 2014, 2013 and 2012, fixed charges exceeded earnings before income taxes and fixed charges by $104.0 million, $6.0 million and $142.1 million. |
LIVE NATION ENTERTAINMENT, INC. | |
By: | /s/ Brian Capo |
Brian Capo | |
Chief Accounting Officer (Duly Authorized Officer) |
Exhibit Description | Incorporated by Reference | Filed Here with | ||||||||||
Exhibit No. | Form | File No. | Exhibit No. | Filing Date | ||||||||
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 | |||||||
3.2 | Fifth Amended and Restated Bylaws of Live Nation Entertainment, Inc. | 8-K | 001-32601 | 3.2 | 6/7/2013 | |||||||
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: July 28, 2016 | |
By: | /s/ Michael Rapino |
Michael Rapino | |
President and Chief Executive Officer |
Date: July 28, 2016 | |
By: | /s/ Kathy Willard |
Kathy Willard | |
Chief Financial Officer |
Date: July 28, 2016 | |
By: | /s/ Michael Rapino |
Michael Rapino | |
President and Chief Executive Officer |
Date: July 28, 2016 | |
By: | /s/ Kathy Willard |
Kathy Willard | |
Chief Financial Officer |
Document and Entity Information - shares |
6 Months Ended | |
---|---|---|
Jun. 30, 2016 |
Jul. 21, 2016 |
|
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Live Nation Entertainment, Inc. | |
Entity Central Index Key | 0001335258 | |
Current Fiscal Year End Date | --12-31 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 203,085,142 | |
Document Fiscal Year Focus | 2016 | |
Document Fiscal Period Focus | Q2 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2016 |
CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Current assets | ||
Allowance for doubtful accounts | $ 18,216 | $ 17,168 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME LOSS (UNAUDITED) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 36,461 | $ 20,212 | $ (19,493) | $ (46,314) |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation adjustments | (23,499) | 26,609 | (24,747) | (18,059) |
Other | 0 | (62) | 0 | 138 |
Comprehensive income (loss) | 12,962 | 46,759 | (44,240) | (64,235) |
Comprehensive income (loss) attributable to noncontrolling interests | (1,280) | 5,156 | (12,716) | (3,091) |
Comprehensive income (loss) attributable to common stockholders of Live Nation | $ 14,242 | $ 41,603 | $ (31,524) | $ (61,144) |
BASIS OF PRESENTATION AND OTHER INFORMATION |
6 Months Ended |
---|---|
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION AND OTHER INFORMATION | BASIS OF PRESENTATION AND OTHER INFORMATION Preparation of Interim Financial Statements The accompanying unaudited consolidated financial statements have been prepared in accordance with GAAP for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X issued by the SEC. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, they include all normal and recurring accruals and adjustments necessary to present fairly the results of the interim periods shown. The financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s 2015 Annual Report on Form 10-K filed with the SEC on February 25, 2016, as amended by the Form 10-K/A filed with the SEC on June 29, 2016. Seasonality Due to the seasonal nature of shows at outdoor amphitheaters and festivals, which primarily occur from May through October, the Concerts and Sponsorship & Advertising segments experience higher revenue during the second and third quarters. The Artist Nation segment’s revenue is impacted, to a large degree, by the touring schedules of artists it represents and generally experiences higher revenue during the second and third quarters as the period from May through October tends to be a popular time for touring events. The Ticketing segment’s revenue is impacted by fluctuations in the availability of events for sale to the public, which vary depending upon scheduling by its clients. The Company’s seasonality also results in higher balances in cash and cash equivalents, accounts receivable, prepaid expenses, accrued expenses and deferred revenue at different times in the year. Therefore, the results to date are not necessarily indicative of the results expected for the full year. Cash and Cash Equivalents Included in the June 30, 2016 and December 31, 2015 cash and cash equivalents balance is $605.7 million and $549.0 million, respectively, of cash received that includes the face value of tickets sold on behalf of ticketing clients and their share of service charges, which amounts are to be remitted to the clients. Acquisitions During the first six months of 2016, the Company completed several acquisitions that were accounted for as business combinations under the acquisition method of accounting and were not significant either on an individual basis or in the aggregate. Income Taxes Each reporting period, the Company evaluates the realizability of all of its deferred tax assets in each tax jurisdiction. As of June 30, 2016, the Company continued to maintain a full valuation allowance against its net deferred tax assets in certain jurisdictions due to sustained pre-tax losses. As a result of the valuation allowances, no tax benefits have been recognized for losses incurred in those tax jurisdictions for the first six months of 2016 and 2015. Reclassifications The Company has reclassified $5.3 million of payments for employee taxes, where shares were withheld upon the vesting or exercise of equity awards in order to satisfy the withholding obligation, from operating activities to financing activities within the consolidated statements of cash flows for the six months ended June 30, 2015. This reclassification was made in connection with the modified retrospective application of new accounting guidance for employee share-based payment transactions as discussed below. Recent Accounting Pronouncements Recently Adopted Pronouncements In April 2015, the FASB amended its guidance on internal-use software providing clarification to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The Company adopted this guidance prospectively on January 1, 2016 and it did not have a material effect on the Company’s financial position or results of operations. In March 2016, the FASB issued guidance that simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for forfeitures, employer tax withholding on share-based compensation and the financial statement presentation of excess tax benefits or deficiencies, as well as classification in the statement of cash flows. The Company adopted this guidance effective January 1, 2016 using a modified retrospective transition method with a cumulative-effect adjustment to retained earnings for the changes to the accounting for forfeitures and excess tax benefits or deficiencies. Upon adoption of this guidance, the Company no longer estimates forfeitures in advance and now recognizes forfeitures as they occur and has reflected a cumulative effect adjustment to accumulated deficit in the consolidated balance sheets of $1.3 million. Recently Issued Pronouncements In May 2014, the FASB issued a comprehensive new revenue recognition standard that will supersede nearly all existing revenue recognition guidance under GAAP. The new standard provides a five-step analysis of transactions to determine when and how revenue is recognized. The core principle of the guidance is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The FASB continues to issue guidance clarifying certain guidelines of the standard including reframing the indicators in the principal versus agent guidance to focus on evidence that a company is acting as a principal rather than agent. The standard is effective for annual periods beginning after December 15, 2017 and interim periods within that year. Early adoption of the standard is only permitted for annual periods beginning after December 15, 2016 and interim periods within that year. The guidance should be applied retrospectively, either to each prior period presented in the financial statements, or only to the most current reporting period presented in the financial statements with a cumulative-effect adjustment as of the date of adoption. The Company will adopt this standard on January 1, 2018, and is currently assessing which implementation method it will apply and the impact that adoption will have on its financial position and results of operations. In January 2016, the FASB issued amendments for the recognition, measurement, presentation, and disclosure of financial instruments. Among other things, the guidance requires equity investments that do not result in consolidation and are not accounted for under the equity method to be measured at fair value with any change in fair value recognized in net income unless the investments do not have readily determinable fair values. The amendments are effective for annual periods beginning after December 15, 2017 and interim periods within that year. Early adoption is not permitted for most of the amendments. The amendments are to be applied through a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption with the exception of equity investments without readily determinable fair values, which will be applied prospectively. The Company will adopt this standard on January 1, 2018, and currently expects that adoption of this guidance will not have a material impact on its financial position or results of operations. In February 2016, the FASB issued guidance that requires lessees to recognize most leases on their balance sheet as a lease liability and a right-of-use asset, and to disclose key information about leasing arrangements. The guidance is effective for annual periods beginning after December 15, 2018 and interim periods within that year, and early adoption is permitted. The guidance should be applied on a modified retrospective basis. The Company expects to adopt this standard on January 1, 2019, and is currently evaluating the impact that the standard will have on its financial position and results of operations. In March 2016, the FASB issued guidance clarifying that the assessment of whether an embedded contingent put or call option is clearly and closely related to the debt instrument only requires an analysis pursuant to the four-step decision sequence outlined in the guidance for embedded derivatives. The guidance is effective for fiscal years beginning after December 15, 2016 and interim periods within that year. The guidance should be applied to existing debt instruments using a modified retrospective method as of the beginning of the period of adoption. The Company will adopt this standard on January 1, 2017, and currently expects that adoption of this guidance will not impact its financial position or results of operations. |
LONG-LIVED ASSETS |
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LONG-LIVED ASSETS [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LONG-LIVED ASSETS | LONG-LIVED ASSETS Definite-lived Intangible Assets The Company has definite-lived intangible assets which are amortized over the shorter of either the lives of the respective agreements or the period of time the assets are expected to contribute to the Company’s future cash flows. The amortization is recognized on either a straight-line or expected cash flows basis. The following table presents the changes in the gross carrying amount and accumulated amortization of definite-lived intangible assets for the six months ended June 30, 2016:
______________ (1) Other includes netdowns of fully amortized or impaired assets. Included in the current year acquisitions amounts above are definitive-lived intangible assets primarily associated with the acquisition of a controlling interest in an artist management business with locations in the United States and Canada and controlling interests in festival and concert promoters located in the United Kingdom and the United States. Included in the prior year acquisitions amounts above are definitive-lived intangible assets primarily associated with the acquisition of a controlling interest in a festival promoter located in the United States. The 2016 additions to definite-lived intangible assets from acquisitions have weighted-average lives as follows:
Amortization of definite-lived intangible assets for the three months ended June 30, 2016 and 2015 was $45.4 million and $43.5 million, respectively, and for the six months ended June 30, 2016 and 2015 was $85.2 million and $76.1 million, respectively. Amortization related to nonrecoupable ticketing contract advances for the three months ended June 30, 2016 and 2015 was $15.0 million and $13.2 million, respectively, and for the six months ended June 30, 2016 and 2015 was $36.5 million and $32.8 million, respectively. The following table presents the Company’s estimate of amortization expense for each of the five succeeding fiscal years for definite-lived intangible assets that exist at June 30, 2016:
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, 2016:
Included in the current year acquisitions amounts above is goodwill primarily associated with the acquisition of controlling interests in festival and concert promoters located in the United Kingdom and the United States, an artist management business with locations in the United States and Canada and a digital content company located in the United States. Included in the prior year acquisitions amounts above are net reductions in goodwill resulting from changes in purchase price allocations of prior year acquisitions primarily related to the acquisition of a controlling interest in a festival promoter located in the United States and a venue management business in New Zealand. The Company is in various stages of finalizing its acquisition accounting for recent acquisitions, which include the use of external valuation consultants, and the completion of this accounting could result in a change to the associated purchase price allocations, including goodwill and its allocation between segments. Investments in Nonconsolidated Affiliates The Company has investments in various affiliates that are not consolidated and are accounted for under the equity method of accounting. The Company records its investments in these entities on the balance sheets as investments in nonconsolidated affiliates reported as part of other long-term assets. The Company’s interests in these businesses are recorded in the consolidated statements of operations as equity in losses (earnings) of nonconsolidated affiliates. For the six months ended June 30, 2016, the Company’s investment in Venta de Boletos por Computadora S.A. de C.V., a 33% owned ticketing distribution services company, and Vice Nation, LLC, a 60% owned digital content company, are considered significant on an individual basis. Summarized unaudited income statement information for the Company’s nonconsolidated affiliates noted above is as follows (at 100%):
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FAIR VALUE MEASUREMENTS |
6 Months Ended |
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Jun. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS The Company’s outstanding debt held by third-party financial institutions is carried at cost, adjusted for any premium, discounts or debt issuance costs. The Company’s debt is not publicly traded and the carrying amounts typically approximate fair value for debt that accrues interest at a variable rate, which are considered to be Level 2 inputs as defined in the FASB guidance. The estimated fair values of the Company’s 7% senior notes, 5.375% senior notes and 2.5% convertible senior notes were $443.1 million, $253.8 million and $285.3 million, respectively, at June 30, 2016. The estimated fair values of the 7% senior notes, 5.375% senior notes and 2.5% convertible senior notes were $443.1 million, $249.4 million and $280.2 million, respectively, at December 31, 2015. 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 had fixed-rate debt held by noncontrolling interest partners with a face value of $36.3 million and $32.9 million at June 30, 2016 and December 31, 2015, respectively. The Company is unable to determine the fair value of this debt. |
COMMITMENTS AND CONTINGENT LIABILITIES |
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Jun. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENT LIABILITIES | COMMITMENTS AND CONTINGENT LIABILITIES Ticketing Fees Consumer Class Action Litigation On March 18, 2016, all appeals relating to a settlement agreement reached by the plaintiffs and Ticketmaster in respect of a ticketing fees consumer class action litigation matter originally filed in October 2003 against Ticketmaster were dismissed, thus resolving this matter and allowing the implementation of the terms of the settlement. On March 30, 2016, the Company funded a portion of the settlement primarily related to the plaintiffs’ attorney fees. Ticketmaster and its parent, Live Nation, have not acknowledged any violations of law or liability in connection with the matter. As of June 30, 2016, the Company had accrued $16.6 million, its best estimate of the probable remaining costs associated with the settlement referred to above, which was recorded in prior years. The calculation of this liability is based in part upon 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. |
EQUITY |
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EQUITY | EQUITY The following table shows the reconciliation of the carrying amount of stockholders’ equity attributable to Live Nation, equity attributable to noncontrolling interests, total equity and also redeemable noncontrolling interests for the six months ended June 30, 2016:
Accumulated Other Comprehensive Loss The following table presents changes in the components of AOCI, net of taxes, for the six months ended June 30, 2016:
Earnings Per Share The following table sets forth the computation of weighted average common shares outstanding:
Basic net income (loss) per common share is computed by dividing the net income (loss) available to common stockholders by the weighted average number of common shares outstanding during the period. The calculation of diluted net income (loss) per common share includes the effects of the assumed exercise of any outstanding stock options, the assumed vesting of shares of restricted stock awards and the assumed conversion of the convertible senior notes where dilutive. The following table shows securities excluded from the calculation of diluted net income (loss) per common share because such securities are anti-dilutive:
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SEGMENT DATA |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SEGMENT DATA | SEGMENT DATA The Company’s reportable segments are Concerts, Sponsorship & Advertising, Ticketing and Artist Nation. The Concerts segment involves the promotion of live music events globally in the Company’s owned or operated venues and in rented third-party venues, the production of music festivals, the operation and management of music venues and the creation of associated content. The Sponsorship & Advertising segment manages the development of strategic sponsorship programs in addition to the sale of international, national and local sponsorships and placement of advertising such as signage, promotional programs, rich media offerings, including advertising associated with live streaming and music-related original content, and ads across the Company’s distribution network of venues, events and websites. The Ticketing segment involves the management of the Company’s global ticketing operations, including providing ticketing software and services to clients, ticket resale services and online access for customers relating to ticket and event information, and is responsible for the Company’s primary websites, www.livenation.com and www.ticketmaster.com. The Artist Nation segment provides management services to artists and other services including merchandise sales. Revenue and expenses earned and charged between segments are eliminated in consolidation. The Company’s capital expenditures below include accruals and expenditures funded by outside parties such as landlords or replacements funded by insurance proceeds. The Company manages its working capital on a consolidated basis. Accordingly, segment assets are not reported to, or used by, the Company’s management to allocate resources to or assess performance of the segments, and therefore, total segment assets have not been presented. The following table presents the results of operations for the Company’s reportable segments for the three and six months ended June 30, 2016 and 2015:
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BASIS OF PRESENTATION AND OTHER INFORMATION Basis of Presentation and Other Information (Policies) |
6 Months Ended |
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Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Reclassification | Reclassifications The Company has reclassified $5.3 million of payments for employee taxes, where shares were withheld upon the vesting or exercise of equity awards in order to satisfy the withholding obligation, from operating activities to financing activities within the consolidated statements of cash flows for the six months ended June 30, 2015. This reclassification was made in connection with the modified retrospective application of new accounting guidance for employee share-based payment transactions as discussed below. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently Adopted Pronouncements In April 2015, the FASB amended its guidance on internal-use software providing clarification to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The Company adopted this guidance prospectively on January 1, 2016 and it did not have a material effect on the Company’s financial position or results of operations. In March 2016, the FASB issued guidance that simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for forfeitures, employer tax withholding on share-based compensation and the financial statement presentation of excess tax benefits or deficiencies, as well as classification in the statement of cash flows. The Company adopted this guidance effective January 1, 2016 using a modified retrospective transition method with a cumulative-effect adjustment to retained earnings for the changes to the accounting for forfeitures and excess tax benefits or deficiencies. Upon adoption of this guidance, the Company no longer estimates forfeitures in advance and now recognizes forfeitures as they occur and has reflected a cumulative effect adjustment to accumulated deficit in the consolidated balance sheets of $1.3 million. Recently Issued Pronouncements In May 2014, the FASB issued a comprehensive new revenue recognition standard that will supersede nearly all existing revenue recognition guidance under GAAP. The new standard provides a five-step analysis of transactions to determine when and how revenue is recognized. The core principle of the guidance is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The FASB continues to issue guidance clarifying certain guidelines of the standard including reframing the indicators in the principal versus agent guidance to focus on evidence that a company is acting as a principal rather than agent. The standard is effective for annual periods beginning after December 15, 2017 and interim periods within that year. Early adoption of the standard is only permitted for annual periods beginning after December 15, 2016 and interim periods within that year. The guidance should be applied retrospectively, either to each prior period presented in the financial statements, or only to the most current reporting period presented in the financial statements with a cumulative-effect adjustment as of the date of adoption. The Company will adopt this standard on January 1, 2018, and is currently assessing which implementation method it will apply and the impact that adoption will have on its financial position and results of operations. In January 2016, the FASB issued amendments for the recognition, measurement, presentation, and disclosure of financial instruments. Among other things, the guidance requires equity investments that do not result in consolidation and are not accounted for under the equity method to be measured at fair value with any change in fair value recognized in net income unless the investments do not have readily determinable fair values. The amendments are effective for annual periods beginning after December 15, 2017 and interim periods within that year. Early adoption is not permitted for most of the amendments. The amendments are to be applied through a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption with the exception of equity investments without readily determinable fair values, which will be applied prospectively. The Company will adopt this standard on January 1, 2018, and currently expects that adoption of this guidance will not have a material impact on its financial position or results of operations. In February 2016, the FASB issued guidance that requires lessees to recognize most leases on their balance sheet as a lease liability and a right-of-use asset, and to disclose key information about leasing arrangements. The guidance is effective for annual periods beginning after December 15, 2018 and interim periods within that year, and early adoption is permitted. The guidance should be applied on a modified retrospective basis. The Company expects to adopt this standard on January 1, 2019, and is currently evaluating the impact that the standard will have on its financial position and results of operations. In March 2016, the FASB issued guidance clarifying that the assessment of whether an embedded contingent put or call option is clearly and closely related to the debt instrument only requires an analysis pursuant to the four-step decision sequence outlined in the guidance for embedded derivatives. The guidance is effective for fiscal years beginning after December 15, 2016 and interim periods within that year. The guidance should be applied to existing debt instruments using a modified retrospective method as of the beginning of the period of adoption. The Company will adopt this standard on January 1, 2017, and currently expects that adoption of this guidance will not impact its financial position or results of operations. |
LONG-LIVED ASSETS Long-Lived Assets (Tables) |
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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, 2016:
______________ (1) Other includes netdowns of fully amortized or impaired assets. |
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Weighted Average Lives of Additions to Definite-Lived Intangible Assets | The 2016 additions to definite-lived intangible assets from acquisitions have weighted-average lives as follows:
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Estimate of Future Amortization Expense of Definite-Lived Intangible Assets | The following table presents the Company’s estimate of amortization expense for each of the five succeeding fiscal years for definite-lived intangible assets that exist at June 30, 2016:
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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, 2016:
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Investments in Nonconsolidated Affiliates | Summarized unaudited income statement information for the Company’s nonconsolidated affiliates noted above is as follows (at 100%):
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EQUITY Equity (Tables) |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Carrying Amount of Equity and Redeemable Noncontrolling Interests | The following table shows the reconciliation of the carrying amount of stockholders’ equity attributable to Live Nation, equity attributable to noncontrolling interests, total equity and also redeemable noncontrolling interests for the six months ended June 30, 2016:
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Schedule of Accumulated Other Comprehensive Income (Loss) | The following table presents changes in the components of AOCI, net of taxes, for the six months ended June 30, 2016:
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Weighted Average Common Shares Outstanding | The following table sets forth the computation of weighted average common shares outstanding:
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Potentially Dilutive Securities Excluded From Diluted Net Income (Loss) Per Common Share | The following table shows securities excluded from the calculation of diluted net income (loss) per common share because such securities are anti-dilutive:
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SEGMENT DATA Segment Data (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Results of Operations Related to Reportable Segments of the Entity | The following table presents the results of operations for the Company’s reportable segments for the three and six months ended June 30, 2016 and 2015:
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BASIS OF PRESENTATION AND OTHER INFORMATION Basis of Presentation and Other Information (Details) - USD ($) $ in Millions |
6 Months Ended | |
---|---|---|
Jun. 30, 2016 |
Dec. 31, 2015 |
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Accounting Policies [Abstract] | ||
Cash collected that includes the face value of tickets sold on behalf of clients and the clients share of service charges | $ 605.7 | $ 549.0 |
Prior Period Reclassification Adjustment | 5.3 | |
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 1.3 |
LONG-LIVED ASSETS (Definite-lived Intangibles Amortization) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
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Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of definite-lived intangible assets | $ 45,400 | $ 43,500 | $ 85,200 | $ 76,100 |
Amortization expense related to nonrecoupable ticketing contract advances | 15,000 | $ 13,200 | 36,500 | $ 32,800 |
Estimate of Future Amortization Expense of Definite-Lived Intangible Assets [Abstract] | ||||
July 1 - December 31, 2016 | 95,596 | 95,596 | ||
2017 | 164,773 | 164,773 | ||
2018 | 142,238 | 142,238 | ||
2019 | 118,143 | 118,143 | ||
2020 | $ 102,921 | $ 102,921 |
LONG-LIVED ASSETS Investments in Nonconsolidated Affiliates (Details) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Summarized income statement | ||
Revenue | $ 24,608 | $ 25,273 |
Operating income | 8,143 | 10,540 |
Net income | 4,915 | 6,968 |
Net income attributable to the common stockholders of the equity investees | $ 4,878 | $ 6,856 |
Venta de Boletos pr Computadora S.A. de C.V. [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investment, Ownership Percentage | 33.00% | |
Vice Nation, LLC [Member] | ||
Schedule of Equity Method Investments [Line Items] | ||
Equity Method Investment, Ownership Percentage | 60.00% |
FAIR VALUE MEASUREMENTS (Fair Value of Debt) (Details) - USD ($) $ in Millions |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|
Fixed Rate Debt With Noncontrolling Interest Partner [Member] | ||
Estimate of fair value not practicable [Abstract] | ||
Face amount of debt | $ 36.3 | $ 32.9 |
Level 2 [Member] | 7% Senior Notes due 2020 [Member] | ||
Debt Fair Value [Line Items] | ||
Interest rate, stated percentage | 7.00% | 7.00% |
Estimated fair values of senior notes | $ 443.1 | $ 443.1 |
Level 2 [Member] | 5.375% Senior Notes due 2022 [Member] | ||
Debt Fair Value [Line Items] | ||
Interest rate, stated percentage | 5.375% | 5.375% |
Estimated fair values of senior notes | $ 253.8 | $ 249.4 |
Level 2 [Member] | 2.5% Convertible Senior Notes Due 2019 [Member] | ||
Debt Fair Value [Line Items] | ||
Interest rate, stated percentage | 2.50% | 2.50% |
Estimated fair values of convertible senior notes | $ 285.3 | $ 280.2 |
COMMITMENTS AND CONTINGENT LIABILITIES Commitments and Contingent Liabilities (Details) $ in Millions |
Jun. 30, 2016
USD ($)
|
---|---|
Ticketing Fees Consumer Class Action Litigation [Member] | Settled Litigation [Member] | |
Loss Contingencies [Line Items] | |
Loss Contingency, Estimate of Possible Loss | $ 16.6 |
EQUITY (Accumulated Other Comprehensive Loss) (Details) $ in Thousands |
6 Months Ended |
---|---|
Jun. 30, 2016
USD ($)
| |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Balance at December 31, 2015 | $ (111,657) |
Other comprehensive loss before reclassifications | (24,747) |
Balance at June 30, 2016 | (136,404) |
Defined Benefit Pension Items [Member] | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Balance at December 31, 2015 | (358) |
Other comprehensive loss before reclassifications | 0 |
Balance at June 30, 2016 | (358) |
Foreign Currency Items [Member] | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Balance at December 31, 2015 | (111,299) |
Other comprehensive loss before reclassifications | (24,747) |
Balance at June 30, 2016 | $ (136,046) |
EQUITY Earnings Per Share (Details) - shares |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Jun. 30, 2015 |
Jun. 30, 2016 |
Jun. 30, 2015 |
|
Reconciliation of weighted average common shares outstanding | ||||
Weighted average common shares—basic (in shares) | 201,896,009 | 200,767,811 | 201,796,075 | 200,463,314 |
Effect of dilutive securities: | ||||
Stock options, restricted stock and warrants (in shares) | 6,705,724 | 8,010,778 | 0 | 0 |
Weighted average common shares—diluted (in shares) | 208,601,733 | 208,778,589 | 201,796,075 | 200,463,314 |
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