Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Aug. 04, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Live Nation Entertainment, Inc. | |
Entity Central Index Key | 1,335,258 | |
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 | 202,362,219 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2015 |
CONSOLIDATED BALANCE SHEETS (UN
CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Current assets | ||
Cash and cash equivalents | $ 1,525,819 | $ 1,382,029 |
Accounts receivable, less allowance of $18,671 and $17,489, respectively | 524,227 | 419,301 |
Prepaid expenses | 655,805 | 440,272 |
Other current assets | 46,897 | 26,089 |
Total current assets | 2,752,748 | 2,267,691 |
Property, plant and equipment | ||
Land, buildings and improvements | 816,708 | 808,116 |
Computer equipment and capitalized software | 456,949 | 454,925 |
Furniture and other equipment | 228,297 | 209,624 |
Construction in progress | 107,751 | 78,111 |
Property, plant and equipment, gross | 1,609,705 | 1,550,776 |
Less accumulated depreciation | 907,942 | 855,439 |
Property, plant and equipment, net | 701,763 | 695,337 |
Intangible assets | ||
Definite-lived intangible assets, net | 785,086 | 682,713 |
Indefinite-lived intangible assets | 369,522 | 369,480 |
Goodwill | 1,619,123 | 1,479,037 |
Other long-term assets | 485,274 | 474,103 |
Total assets | 6,713,516 | 5,968,361 |
Current liabilities | ||
Accounts payable, client accounts | 722,720 | 658,108 |
Accounts payable | 86,087 | 74,151 |
Accrued expenses | 635,490 | 675,880 |
Deferred revenue | 1,201,446 | 543,122 |
Current portion of long-term debt, net | 57,289 | 47,443 |
Other current liabilities | 24,248 | 12,035 |
Total current liabilities | 2,727,280 | 2,010,739 |
Long-term debt, net | 1,973,173 | 1,995,957 |
Long-term deferred income taxes | 194,607 | 196,759 |
Other long-term liabilities | $ 128,346 | $ 112,204 |
Commitments and contingent liabilities | ||
Redeemable noncontrolling interests | $ 245,545 | $ 168,855 |
Stockholders’ equity | ||
Common stock | 2,016 | 2,004 |
Additional paid-in capital | 2,430,002 | 2,414,428 |
Accumulated deficit | (1,085,826) | (1,042,603) |
Cost of shares held in treasury | (6,865) | (6,865) |
Accumulated other comprehensive loss | (87,931) | (70,010) |
Total Live Nation stockholders’ equity | 1,251,396 | 1,296,954 |
Noncontrolling interests | 193,169 | 186,893 |
Total equity | 1,444,565 | 1,483,847 |
Total liabilities and equity | $ 6,713,516 | $ 5,968,361 |
CONSOLIDATED BALANCE SHEETS (U3
CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Current assets | ||
Allowance for doubtful accounts | $ 18,671 | $ 17,489 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Income Statement [Abstract] | ||||
Revenue | $ 1,765,777 | $ 1,665,785 | $ 2,886,089 | $ 2,793,101 |
Operating expenses: | ||||
Direct operating expenses | 1,279,099 | 1,184,696 | 2,000,388 | 1,915,847 |
Selling, general and administrative expenses | 326,839 | 325,925 | 641,384 | 628,330 |
Depreciation and amortization | 88,571 | 76,219 | 173,112 | 158,807 |
Gain on disposal of operating assets | (76) | (3,787) | (37) | (3,281) |
Corporate expenses | 26,342 | 25,717 | 50,702 | 46,891 |
Acquisition transaction expenses | 2,757 | 1,329 | 2,230 | 3,129 |
Operating income (loss) | 42,245 | 55,686 | 18,310 | 43,378 |
Interest expense | 25,650 | 27,590 | 51,013 | 52,082 |
Interest income | (394) | (1,146) | (1,959) | (1,812) |
Equity in losses (earnings) of nonconsolidated affiliates | 367 | (960) | (2,613) | (3,766) |
Other expense (income), net | (8,500) | (330) | 12,528 | (1,506) |
Income (loss) before income taxes | 25,122 | 30,532 | (40,659) | (1,620) |
Income tax expense | 4,910 | 4,710 | 5,655 | 2,655 |
Net income (loss) | 20,212 | 25,822 | (46,314) | (4,275) |
Net income (loss) attributable to noncontrolling interests | 5,156 | 2,888 | (3,091) | 5,239 |
Net income (loss) attributable to common stockholders of Live Nation | $ 15,056 | $ 22,934 | $ (43,223) | $ (9,514) |
Basic and diluted net income (loss) per common share available to common stockholders of Live Nation | $ 0.06 | $ 0.11 | $ (0.25) | $ (0.06) |
Weighted average common shares outstanding: | ||||
Basic (in shares) | 200,767,811 | 198,701,762 | 200,463,314 | 198,282,044 |
Diluted (in shares) | 208,778,589 | 205,989,271 | 200,463,314 | 198,282,044 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 20,212 | $ 25,822 | $ (46,314) | $ (4,275) |
Other comprehensive income (loss), net of tax: | ||||
Unrealized loss on cash flow hedges | (182) | (5) | 0 | (8) |
Realized loss on cash flow hedges | 12 | 16 | 25 | 33 |
Change in funded status of defined benefit pension plan | 108 | 0 | 113 | 30 |
Foreign currency translation adjustments | 26,609 | 9,324 | (18,059) | 19,143 |
Comprehensive income (loss) | 46,759 | 35,157 | (64,235) | 14,923 |
Comprehensive income (loss) attributable to noncontrolling interests | 5,156 | 2,888 | (3,091) | 5,239 |
Comprehensive income (loss) attributable to common stockholders of Live Nation | $ 41,603 | $ 32,269 | $ (61,144) | $ 9,684 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net loss | $ (46,314) | $ (4,275) |
Reconciling items: | ||
Depreciation | 63,705 | 61,906 |
Amortization | 109,407 | 96,901 |
Deferred income tax benefit | (1,415) | (12,064) |
Amortization of debt issuance costs, discounts and premium, net | 5,301 | 10,101 |
Non-cash compensation expense | 17,562 | 22,568 |
Gain on disposal of operating assets | (37) | (3,281) |
Equity in losses (earnings) of nonconsolidated affiliates, net of distributions | 3,732 | (1,930) |
Other, net | (4,189) | 248 |
Changes in operating assets and liabilities, net of effects of acquisitions and dispositions: | ||
Increase in accounts receivable | (122,058) | (126,528) |
Increase in prepaid expenses | (268,937) | (295,818) |
Increase in other assets | (48,629) | (30,609) |
Increase in accounts payable, accrued expenses and other liabilities | 28,614 | 114,764 |
Increase in deferred revenue | 620,412 | 508,323 |
Net cash provided by operating activities | 357,154 | 340,306 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Collections and advances of notes receivable, net | (14,136) | (3,429) |
Investments made in nonconsolidated affiliates | (11,023) | (1,512) |
Purchases of property, plant and equipment | (67,344) | (66,388) |
Cash paid for acquisitions, net of cash acquired | (69,244) | (24,518) |
Other, net | (2,194) | 366 |
Net cash used in investing activities | (163,941) | (95,481) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from long-term debt, net of debt issuance costs | 101 | 514,612 |
Payments on long-term debt | (17,170) | (15,126) |
Contributions from noncontrolling interests | 0 | 81 |
Distributions to noncontrolling interests | (9,370) | (18,036) |
Purchases and sales of noncontrolling interests, net | (9,491) | (3,528) |
Proceeds from exercise of stock options | 13,015 | 11,737 |
Payments for deferred and contingent consideration | (4,125) | (5,541) |
Net cash provided by (used in) financing activities | (27,040) | 484,199 |
Effect of exchange rate changes on cash and cash equivalents | (22,383) | 13,478 |
Net increase in cash and cash equivalents | 143,790 | 742,502 |
Cash and cash equivalents at beginning of period | 1,382,029 | 1,299,184 |
Cash and cash equivalents at end of period | $ 1,525,819 | $ 2,041,686 |
BASIS OF PRESENTATION AND OTHER
BASIS OF PRESENTATION AND OTHER INFORMATION | 6 Months Ended |
Jun. 30, 2015 | |
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 2014 Annual Report on Form 10-K filed with the SEC on February 26, 2015, as amended by the Form 10-K/A filed with the SEC on June 30, 2015. Seasonality Due to the seasonal nature of shows at outdoor amphitheaters and festivals, which primarily occur from May through September, 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 September 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, 2015 and December 31, 2014 cash and cash equivalents balance is $618.3 million and $533.8 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 2015 , 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. Reclassifications Certain reclassifications have been made to the prior year consolidated financial statements to conform to the 2015 presentation. The Company has reclassified $20.0 million of debt issuance costs originally included in other long-term assets in the December 31, 2014 balance sheet and now reflects it as a reduction of the current portion of long-term debt and long-term debt in connection with the retrospective application of new accounting guidance for debt issuance costs as discussed below. Recent Accounting Pronouncements Recently Adopted Pronouncements In April 2014, the FASB issued guidance that raises the threshold for a disposal to qualify as a discontinued operation and requires new disclosures of both discontinued operations and certain other disposals that do not meet the definition of a discontinued operation. The Company adopted this guidance on January 1, 2015 and there has been no impact from its adoption. In April 2015, the FASB issued guidance that simplifies the presentation of debt issuance costs. The guidance requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a deduction from the carrying amount of that debt liability, consistent with debt discounts. The guidance is effective for financial statements issued for fiscal years beginning after December 15, 2015 and interim periods within that year. The guidance should be applied on a retrospective basis to all periods presented in the financial statements. Early adoption is permitted and the Company adopted this guidance on January 1, 2015. See “ — Reclassifications” above for discussion of the impact of implementation. 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 standard is effective for annual and interim periods beginning after December 15, 2016, and early adoption of the standard is not permitted. 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. In July 2015, the FASB affirmed its proposal to defer the effective date of the new revenue recognition standard by one year. The FASB also affirmed its proposal to allow early adoption of the standard, but not before the original effective date. Assuming final guidance is issued deferring the effective date, the Company will adopt this standard on January 1, 2018, and is currently assessing which implementation method it will apply and the impact its adoption will have on its financial position and results of operations. In April 2015, the FASB amended its guidance on internal-use software providing guidance 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 amendments to this guidance are effective for annual and interim periods beginning after December 15, 2015, and early adoption is permitted. The guidance should be applied either prospectively to all arrangements entered into or materially modified after the effective date or retrospectively. The Company will adopt this standard on January 1, 2016, and is currently assessing which implementation method it will apply and the impact its adoption will have on its financial position and results of operations. In February 2015, the FASB issued amendments to the consolidation guidance that make changes to the analysis a reporting entity must perform to determine whether it should consolidate certain types of legal entities. This guidance is effective for annual and interim periods beginning after December 15, 2015, and early adoption is permitted. The guidance should be applied either using a modified retrospective approach or retrospectively. The Company will adopt this standard on January 1, 2016, and is currently assessing which implementation method it will apply and the impact its adoption will have on its financial position and results of operations. |
LONG-LIVED ASSETS
LONG-LIVED ASSETS | 6 Months Ended |
Jun. 30, 2015 | |
LONG-LIVED ASSETS [Abstract] | |
LONG-LIVED ASSETS | LONG-LIVED ASSETS Definite-lived Intangible Assets The Company has definite-lived intangible assets which are amortized over the shorter of either the lives of the respective agreements or the period of time the assets are expected to contribute to the Company’s future cash flows. The amortization is recognized on either a straight-line or expected cash flows basis. The following table presents the changes in the gross carrying amount and accumulated amortization of definite-lived intangible assets for the six months ended June 30, 2015 : Revenue- generating contracts Client / vendor relationships Non-compete agreements Venue management and leaseholds Technology Trademarks and naming rights Other Total (in thousands) Balance as of December 31, 2014: Gross carrying amount $ 635,127 $ 355,992 $ 123,552 $ 83,322 $ 15,330 $ 24,266 $ 3,581 $ 1,241,170 Accumulated amortization (272,071 ) (123,195 ) (98,512 ) (50,490 ) (4,246 ) (8,701 ) (1,242 ) (558,457 ) Net 363,056 232,797 25,040 32,832 11,084 15,565 2,339 682,713 Gross carrying amount: Acquisitions— current year 115,097 15,000 — — 17,950 42,470 — 190,517 Acquisitions— prior year (4,246 ) (1,523 ) 1,500 — 11 — — (4,258 ) Foreign exchange (7,470 ) (4,124 ) — (341 ) 143 (203 ) — (11,995 ) Other (1) (16,473 ) (2,655 ) — (6,212 ) — (9 ) — (25,349 ) Net change 86,908 6,698 1,500 (6,553 ) 18,104 42,258 — 148,915 Accumulated amortization: Amortization (36,676 ) (25,371 ) (5,904 ) (4,506 ) (1,761 ) (1,718 ) (194 ) (76,130 ) Foreign exchange 2,839 961 — 333 (39 ) 182 — 4,276 Other (1) 16,473 2,655 — 6,172 — 12 — 25,312 Net change (17,364 ) (21,755 ) (5,904 ) 1,999 (1,800 ) (1,524 ) (194 ) (46,542 ) Balance as of June 30, 2015: Gross carrying amount 722,035 362,690 125,052 76,769 33,434 66,524 3,581 1,390,085 Accumulated amortization (289,435 ) (144,950 ) (104,416 ) (48,491 ) (6,046 ) (10,225 ) (1,436 ) (604,999 ) Net $ 432,600 $ 217,740 $ 20,636 $ 28,278 $ 27,388 $ 56,299 $ 2,145 $ 785,086 _________ (1) Other includes net downs of fully amortized or impaired assets. Included in the current year acquisitions amount above of $190.5 million are intangibles for revenue-generating contracts and trademarks and naming rights primarily associated with the acquisitions of controlling interests in two festival promoters located in the United States and the acquisition of a ticketing business located in the United States previously accounted for under the equity method. The 2015 additions to definite-lived intangible assets from acquisitions have weighted-average lives as follows: Weighted- Average Life (years) Revenue-generating contracts 9 Client/vendor relationships 8 Technology 10 Trademarks and naming rights 10 All categories 9 Amortization of definite-lived intangible assets for the three months ended June 30, 2015 and 2014 was $43.5 million and $33.3 million , respectively, and for the six months ended June 30, 2015 and 2014 was $76.1 million and $67.9 million , respectively. Amortization related to nonrecoupable ticketing contract advances for the three months ended June 30, 2015 and 2014 was $13.2 million and $11.6 million , respectively, and for the six months ended June 30, 2015 and 2014 was $32.8 million and $29.0 million , respectively. The following table presents the Company’s estimate of future amortization expense for the remainder of 2015 through 2019 for definite-lived intangible assets that exist at June 30, 2015: (in thousands) July 1 - December 31, 2015 $ 75,497 2016 $ 144,778 2017 $ 125,955 2018 $ 110,133 2019 $ 97,110 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, 2015 : Concerts Ticketing Artist Nation Sponsorship & Advertising Total (in thousands) Balance as of December 31, 2014: Goodwill $ 577,891 $ 657,631 $ 345,513 $ 302,865 $ 1,883,900 Accumulated impairment losses (386,915 ) — (17,948 ) — (404,863 ) Net 190,976 657,631 327,565 302,865 1,479,037 Acquisitions—current year 79,915 79,277 4,800 20,455 184,447 Acquisitions—prior year (35,844 ) (4,245 ) 4,461 4,335 (31,293 ) Foreign exchange (2,159 ) (6,779 ) 343 (4,473 ) (13,068 ) Balance as of June 30, 2015: Goodwill 619,803 725,884 355,117 323,182 2,023,986 Accumulated impairment losses (386,915 ) — (17,948 ) — (404,863 ) Net $ 232,888 $ 725,884 $ 337,169 $ 323,182 $ 1,619,123 Included in the current year acquisitions amount above of $184.4 million is goodwill primarily associated with the acquisitions of controlling interests in two festival promoters and the acquisition of a ticketing business previously accounted for under the equity method, all located in the United States. Included in the prior year acquisitions amount above is a decrease of $31.3 million of goodwill primarily associated with the acquisition of a controlling interest in a festival and concert promoter located in the United States. The Company is in 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. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS The following table shows the fair value of the Company’s significant financial assets 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: Fair Value Measurements Fair Value Measurements Level 1 Level 1 (in thousands) Assets: Cash equivalents $ 130,035 $ 111 The Company has cash equivalents which consist of money market funds. Fair values for cash equivalents are based on quoted prices in an active market which are considered to be Level 1 inputs as defined in the FASB guidance. 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 $451.6 million , $255.0 million and $298.5 million , respectively, at June 30, 2015 . The estimated fair values of the 7% senior notes, 5.375% senior notes and 2.5% convertible senior notes were $451.3 million , $250.3 million and $296.3 million , respectively, at December 31, 2014 . 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 $30.4 million and $30.0 million at June 30, 2015 and December 31, 2014 , respectively. The Company is unable to determine the fair value of this debt. |
COMMITMENTS AND CONTINGENT LIAB
COMMITMENTS AND CONTINGENT LIABILITIES | 6 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENT LIABILITIES | COMMITMENTS AND CONTINGENT LIABILITIES 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 later that same month, 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 preliminarily approved, but in September 2012 the Court declined to grant final approval. In June 2013, the parties reached a revised settlement, which was preliminarily approved by the Court in April 2014. In February 2015, the Court granted the parties’ motion for final approval of the settlement. Ticketmaster and its parent, Live Nation, have not acknowledged any violations of law or liability in connection with the matter. As of June 30, 2015 , the Company had accrued $34.9 million , its best estimate of the probable costs associated with the settlement referred to above. 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. 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 purported violations of antitrust laws, 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. |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Company calculates interim effective tax rates in accordance with the FASB guidance for income taxes and applies the estimated annual effective tax rate to year-to-date pretax income (or loss) at the end of each interim period to compute a year-to-date tax expense (or benefit). This guidance requires departure from effective tax rate computations when losses incurred within tax jurisdictions cannot be carried back and future profits associated with operations in those tax jurisdictions cannot be assured beyond any reasonable doubt. Accordingly, the Company has calculated and applied an expected annual effective tax rate of approximately 30% for 2015 , excluding significant, unusual or extraordinary items, for ordinary income associated with operations for which the Company currently expects to have annual taxable income, which are principally outside of the United States. The Company has not recorded tax benefits associated with losses from operations for which future taxable income cannot be reasonably assured. As almost all earnings from the Company’s continuing foreign operations are permanently reinvested and not distributed, the Company’s income tax provision does not include additional United States taxes on those foreign operations. The Company currently believes that the majority of its undistributed foreign earnings that are not currently subject to United States federal income tax will be indefinitely reinvested in its foreign operations. The tax years 2005 through 2014 remain open to examination by the major tax jurisdictions to which the Company is subject. |
EQUITY
EQUITY | 6 Months Ended |
Jun. 30, 2015 | |
Equity [Abstract] | |
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, 2015 : Live Nation Stockholders’ Equity Noncontrolling Interests Total Equity Redeemable Noncontrolling Interests (in thousands) (in thousands) Balance at December 31, 2014 $ 1,296,954 $ 186,893 $ 1,483,847 $ 168,855 Non-cash and stock-based compensation 17,562 — 17,562 — Common stock issued under stock plans, net of shares withheld for employee taxes (5,321 ) — (5,321 ) — Exercise of stock options 13,015 — 13,015 — Acquisitions — 17,069 17,069 74,911 Purchases of noncontrolling interests (4,819 ) (3,233 ) (8,052 ) — Sales of noncontrolling interests 2,142 — 2,142 147 Redeemable noncontrolling interests fair value adjustments (6,993 ) — (6,993 ) 6,993 Cash distributions — (9,178 ) (9,178 ) (192 ) Other — (513 ) (513 ) 53 Comprehensive loss: Net loss (43,223 ) 2,131 (41,092 ) (5,222 ) Realized loss on cash flow hedges 25 — 25 — Change in funded status of defined benefit pension plan 113 — 113 — Foreign currency translation adjustments (18,059 ) — (18,059 ) — Balance at June 30, 2015 $ 1,251,396 $ 193,169 $ 1,444,565 $ 245,545 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, 2015 : Gains and Losses On Cash Flow Hedges Defined Benefit Pension Items Foreign Currency Items Total (in thousands) Balance at December 31, 2014 $ (25 ) $ (581 ) $ (69,404 ) $ (70,010 ) Other comprehensive income (loss) before reclassifications — 113 (18,059 ) (17,946 ) Amount reclassified from AOCI 25 — — 25 Net other comprehensive income (loss) 25 113 (18,059 ) (17,921 ) Balance at June 30, 2015 $ — $ (468 ) $ (87,463 ) $ (87,931 ) The realized loss on cash flow hedges reclassified from AOCI consists of one interest rate swap agreement that expired on June 30, 2015. Earnings Per Share The following table sets forth the computation of basic and diluted net income (loss) per common share: Three Months Ended Six Months Ended 2015 2014 2015 2014 (in thousands except share and per share data) Net income (loss) attributable to common stockholders of Live Nation $ 15,056 $ 22,934 $ (43,223 ) $ (9,514 ) Accretion of redeemable noncontrolling interests (3,105 ) (460 ) (6,993 ) (2,504 ) Net income (loss) available to common stockholders of Live Nation—basic and diluted $ 11,951 $ 22,474 $ (50,216 ) $ (12,018 ) Weighted average common shares—basic 200,767,811 198,701,762 200,463,314 198,282,044 Effect of dilutive securities: Stock options and restricted stock 8,010,778 7,287,509 — — Weighted average common shares—diluted 208,778,589 205,989,271 200,463,314 198,282,044 Basic and diluted net income (loss) per common share available to common stockholders of Live Nation $ 0.06 $ 0.11 $ (0.25 ) $ (0.06 ) 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: Three Months Ended Six Months Ended 2015 2014 2015 2014 (in thousands) Options to purchase shares of common stock 3,075 5,108 16,657 17,755 Restricted stock awards—unvested 242 715 1,047 1,770 Conversion shares related to the convertible senior notes 7,930 16,035 7,930 16,035 Number of anti-dilutive potentially issuable shares excluded from diluted common shares outstanding 11,247 21,858 25,634 35,560 |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 6 Months Ended |
Jun. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION The following is a summary of stock-based compensation expense recorded by the Company: Three Months Ended Six Months Ended 2015 2014 2015 2014 (in thousands) Selling, general and administrative expenses $ 4,028 $ 8,255 $ 8,770 $ 13,175 Corporate expenses 4,037 4,295 8,792 9,393 Total $ 8,065 $ 12,550 $ 17,562 $ 22,568 In the second quarter of 2014, the Company granted an award of equity in a subsidiary to an employee that vested at issuance. As of June 30, 2015 , there was $61.2 million of total unrecognized compensation cost related to stock-based compensation arrangements for stock options, restricted stock awards and other equity awards. This cost is expected to be recognized over a weighted-average period of 2.4 years. |
SEGMENT DATA
SEGMENT DATA | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
SEGMENT DATA | SEGMENT DATA The Company’s reportable segments are Concerts, Ticketing, Artist Nation and Sponsorship & Advertising. The Concerts segment involves the promotion of live music events globally in the Company’s owned or operated venues and in rented third-party venues, the production of music festivals and the operation and management of music venues. The Ticketing segment involves the management of the Company’s global ticketing operations, including providing ticketing software and services to clients, 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. The Sponsorship & Advertising segment manages the development of strategic sponsorship programs in addition to the sale of international, national and local sponsorships and placement of advertising including signage, promotional programs, rich media offerings, including live streaming and music-related original content, and banner ads across the Company’s distribution network of venues, events and websites. Revenue and expenses earned and charged between segments are eliminated in consolidation. Corporate expenses and all line items below operating income (loss) are managed on a total company basis. The Company’s capital expenditures include accruals and expenditures funded by outside parties such as landlords or replacements funded by insurance companies. The Company manages its working capital on a consolidated basis. Accordingly, segment assets are not reported to, or used by, the Company’s management to allocate resources to or assess performance of the segments, and therefore, total segment assets have not been presented. The following table presents the results of operations for the Company’s reportable segments for the three and six months ended June 30, 2015 and 2014 : Concerts Ticketing Artist Sponsorship Other Corporate Eliminations Consolidated (in thousands) Three Months Ended June 30, 2015 Revenue $ 1,268,382 $ 360,197 $ 87,835 $ 81,071 $ 791 $ — $ (32,499 ) $ 1,765,777 Direct operating expenses 1,075,507 171,045 53,806 10,717 — — (31,976 ) 1,279,099 Selling, general and administrative expenses 157,348 116,741 38,478 13,856 416 — — 326,839 Depreciation and amortization 40,033 35,561 10,756 2,225 13 506 (523 ) 88,571 Loss (gain) on disposal of operating assets (55 ) (30 ) — — — 9 — (76 ) Corporate expenses — — — — — 26,342 — 26,342 Acquisition transaction expenses 1,341 286 1,104 — — 26 — 2,757 Operating income (loss) $ (5,792 ) $ 36,594 $ (16,309 ) $ 54,273 $ 362 $ (26,883 ) $ — $ 42,245 Intersegment revenue $ 30,572 $ 460 $ 1,467 $ — $ — $ — $ (32,499 ) $ — Three Months Ended June 30, 2014 Revenue $ 1,172,166 $ 371,000 $ 79,162 $ 70,903 $ 839 $ — $ (28,285 ) $ 1,665,785 Direct operating expenses 969,991 183,269 47,242 9,995 1,590 — (27,391 ) 1,184,696 Selling, general and administrative expenses 166,890 111,882 34,029 12,244 880 — — 325,925 Concerts Ticketing Artist Sponsorship Other Corporate Eliminations Consolidated (in thousands) Depreciation and amortization 26,189 40,968 7,665 1,739 10 542 (894 ) 76,219 Loss (gain) on disposal of operating assets (3,745 ) (43 ) 1 — — — (3,787 ) Corporate expenses — — — — 25,717 — 25,717 Acquisition transaction expenses 456 58 (265 ) — 1,080 — 1,329 Operating income (loss) $ 12,385 $ 34,866 $ (9,510 ) $ 46,925 $ (1,641 ) $ (27,339 ) $ — $ 55,686 Intersegment revenue $ 25,604 $ 187 $ 2,494 $ — $ — $ — $ (28,285 ) $ — Six Months Ended June 30, 2015 Revenue $ 1,891,616 $ 735,827 $ 165,780 $ 133,168 $ 1,584 $ — $ (41,886 ) $ 2,886,089 Direct operating expenses 1,561,479 356,737 100,636 21,345 1,068 — (40,877 ) 2,000,388 Selling, general and administrative expenses 308,338 229,154 75,692 26,950 1,250 — — 641,384 Depreciation and amortization 69,214 78,857 20,791 4,213 24 1,022 (1,009 ) 173,112 Loss (gain) on disposal of operating assets 171 (179 ) — — — (29 ) — (37 ) Corporate expenses — — — — — 50,702 — 50,702 Acquisition transaction expenses 775 433 1,110 — — (88 ) — 2,230 Operating income (loss) $ (48,361 ) $ 70,825 $ (32,449 ) $ 80,660 $ (758 ) $ (51,607 ) $ — $ 18,310 Intersegment revenue $ 39,311 $ 460 $ 2,115 $ — $ — $ — $ (41,886 ) $ — Capital expenditures $ 18,880 $ 42,117 $ 868 $ 1,721 $ (13 ) $ 438 $ — $ 64,011 Concerts Ticketing Artist Sponsorship Other Corporate Eliminations Consolidated (in thousands) Six Months Ended June 30, 2014 Revenue $ 1,834,656 $ 725,461 $ 151,718 $ 116,291 $ 1,585 $ — $ (36,610 ) $ 2,793,101 Direct operating expenses 1,487,146 355,860 89,318 18,059 681 — (35,217 ) 1,915,847 Selling, general and administrative expenses 316,806 225,902 59,822 24,165 1,635 — — 628,330 Depreciation and amortization 54,709 86,951 15,436 1,943 20 1,141 (1,393 ) 158,807 Loss (gain) on disposal of operating assets (3,235 ) (117 ) 34 — — 37 — (3,281 ) Corporate expenses — — — — — 46,891 — 46,891 Acquisition transaction expenses 783 63 188 — — 2,095 — 3,129 Operating income (loss) $ (21,553 ) $ 56,802 $ (13,080 ) $ 72,124 $ (751 ) $ (50,164 ) $ — $ 43,378 Intersegment revenue $ 33,034 $ 460 $ 3,116 $ — $ — $ — $ (36,610 ) $ — Capital expenditures $ 18,306 $ 37,438 $ 943 $ 449 $ — $ 5,271 $ — $ 62,407 |
BASIS OF PRESENTATION AND OTH15
BASIS OF PRESENTATION AND OTHER INFORMATION Basis of Presentation and Other Information (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Reclassifications | Reclassifications Certain reclassifications have been made to the prior year consolidated financial statements to conform to the 2015 presentation. The Company has reclassified $20.0 million of debt issuance costs originally included in other long-term assets in the December 31, 2014 balance sheet and now reflects it as a reduction of the current portion of long-term debt and long-term debt in connection with the retrospective application of new accounting guidance for debt issuance costs as discussed below. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently Adopted Pronouncements In April 2014, the FASB issued guidance that raises the threshold for a disposal to qualify as a discontinued operation and requires new disclosures of both discontinued operations and certain other disposals that do not meet the definition of a discontinued operation. The Company adopted this guidance on January 1, 2015 and there has been no impact from its adoption. In April 2015, the FASB issued guidance that simplifies the presentation of debt issuance costs. The guidance requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a deduction from the carrying amount of that debt liability, consistent with debt discounts. The guidance is effective for financial statements issued for fiscal years beginning after December 15, 2015 and interim periods within that year. The guidance should be applied on a retrospective basis to all periods presented in the financial statements. Early adoption is permitted and the Company adopted this guidance on January 1, 2015. See “ — Reclassifications” above for discussion of the impact of implementation. 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 standard is effective for annual and interim periods beginning after December 15, 2016, and early adoption of the standard is not permitted. 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. In July 2015, the FASB affirmed its proposal to defer the effective date of the new revenue recognition standard by one year. The FASB also affirmed its proposal to allow early adoption of the standard, but not before the original effective date. Assuming final guidance is issued deferring the effective date, the Company will adopt this standard on January 1, 2018, and is currently assessing which implementation method it will apply and the impact its adoption will have on its financial position and results of operations. In April 2015, the FASB amended its guidance on internal-use software providing guidance 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 amendments to this guidance are effective for annual and interim periods beginning after December 15, 2015, and early adoption is permitted. The guidance should be applied either prospectively to all arrangements entered into or materially modified after the effective date or retrospectively. The Company will adopt this standard on January 1, 2016, and is currently assessing which implementation method it will apply and the impact its adoption will have on its financial position and results of operations. In February 2015, the FASB issued amendments to the consolidation guidance that make changes to the analysis a reporting entity must perform to determine whether it should consolidate certain types of legal entities. This guidance is effective for annual and interim periods beginning after December 15, 2015, and early adoption is permitted. The guidance should be applied either using a modified retrospective approach or retrospectively. The Company will adopt this standard on January 1, 2016, and is currently assessing which implementation method it will apply and the impact its adoption will have on its financial position and results of operations. |
LONG-LIVED ASSETS Long-Lived As
LONG-LIVED ASSETS Long-Lived Assets (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
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, 2015 : Revenue- generating contracts Client / vendor relationships Non-compete agreements Venue management and leaseholds Technology Trademarks and naming rights Other Total (in thousands) Balance as of December 31, 2014: Gross carrying amount $ 635,127 $ 355,992 $ 123,552 $ 83,322 $ 15,330 $ 24,266 $ 3,581 $ 1,241,170 Accumulated amortization (272,071 ) (123,195 ) (98,512 ) (50,490 ) (4,246 ) (8,701 ) (1,242 ) (558,457 ) Net 363,056 232,797 25,040 32,832 11,084 15,565 2,339 682,713 Gross carrying amount: Acquisitions— current year 115,097 15,000 — — 17,950 42,470 — 190,517 Acquisitions— prior year (4,246 ) (1,523 ) 1,500 — 11 — — (4,258 ) Foreign exchange (7,470 ) (4,124 ) — (341 ) 143 (203 ) — (11,995 ) Other (1) (16,473 ) (2,655 ) — (6,212 ) — (9 ) — (25,349 ) Net change 86,908 6,698 1,500 (6,553 ) 18,104 42,258 — 148,915 Accumulated amortization: Amortization (36,676 ) (25,371 ) (5,904 ) (4,506 ) (1,761 ) (1,718 ) (194 ) (76,130 ) Foreign exchange 2,839 961 — 333 (39 ) 182 — 4,276 Other (1) 16,473 2,655 — 6,172 — 12 — 25,312 Net change (17,364 ) (21,755 ) (5,904 ) 1,999 (1,800 ) (1,524 ) (194 ) (46,542 ) Balance as of June 30, 2015: Gross carrying amount 722,035 362,690 125,052 76,769 33,434 66,524 3,581 1,390,085 Accumulated amortization (289,435 ) (144,950 ) (104,416 ) (48,491 ) (6,046 ) (10,225 ) (1,436 ) (604,999 ) Net $ 432,600 $ 217,740 $ 20,636 $ 28,278 $ 27,388 $ 56,299 $ 2,145 $ 785,086 _________ (1) Other includes net downs of fully amortized or impaired assets. |
Weighted Average Lives of Additions to Definite-Lived Intangible Assets | The 2015 additions to definite-lived intangible assets from acquisitions have weighted-average lives as follows: Weighted- Average Life (years) Revenue-generating contracts 9 Client/vendor relationships 8 Technology 10 Trademarks and naming rights 10 All categories 9 |
Definite-Lived Intangible Assets, Future Amortization Expense | The following table presents the Company’s estimate of future amortization expense for the remainder of 2015 through 2019 for definite-lived intangible assets that exist at June 30, 2015: (in thousands) July 1 - December 31, 2015 $ 75,497 2016 $ 144,778 2017 $ 125,955 2018 $ 110,133 2019 $ 97,110 |
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, 2015 : Concerts Ticketing Artist Nation Sponsorship & Advertising Total (in thousands) Balance as of December 31, 2014: Goodwill $ 577,891 $ 657,631 $ 345,513 $ 302,865 $ 1,883,900 Accumulated impairment losses (386,915 ) — (17,948 ) — (404,863 ) Net 190,976 657,631 327,565 302,865 1,479,037 Acquisitions—current year 79,915 79,277 4,800 20,455 184,447 Acquisitions—prior year (35,844 ) (4,245 ) 4,461 4,335 (31,293 ) Foreign exchange (2,159 ) (6,779 ) 343 (4,473 ) (13,068 ) Balance as of June 30, 2015: Goodwill 619,803 725,884 355,117 323,182 2,023,986 Accumulated impairment losses (386,915 ) — (17,948 ) — (404,863 ) Net $ 232,888 $ 725,884 $ 337,169 $ 323,182 $ 1,619,123 |
FAIR VALUE MEASUREMENTS Fair Va
FAIR VALUE MEASUREMENTS Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets Measured on a Recurring Basis | The following table shows the fair value of the Company’s significant financial assets 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: Fair Value Measurements Fair Value Measurements Level 1 Level 1 (in thousands) Assets: Cash equivalents $ 130,035 $ 111 |
EQUITY Equity and Redeemable No
EQUITY Equity and Redeemable Noncontrolling Interests (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
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, 2015 : Live Nation Stockholders’ Equity Noncontrolling Interests Total Equity Redeemable Noncontrolling Interests (in thousands) (in thousands) Balance at December 31, 2014 $ 1,296,954 $ 186,893 $ 1,483,847 $ 168,855 Non-cash and stock-based compensation 17,562 — 17,562 — Common stock issued under stock plans, net of shares withheld for employee taxes (5,321 ) — (5,321 ) — Exercise of stock options 13,015 — 13,015 — Acquisitions — 17,069 17,069 74,911 Purchases of noncontrolling interests (4,819 ) (3,233 ) (8,052 ) — Sales of noncontrolling interests 2,142 — 2,142 147 Redeemable noncontrolling interests fair value adjustments (6,993 ) — (6,993 ) 6,993 Cash distributions — (9,178 ) (9,178 ) (192 ) Other — (513 ) (513 ) 53 Comprehensive loss: Net loss (43,223 ) 2,131 (41,092 ) (5,222 ) Realized loss on cash flow hedges 25 — 25 — Change in funded status of defined benefit pension plan 113 — 113 — Foreign currency translation adjustments (18,059 ) — (18,059 ) — Balance at June 30, 2015 $ 1,251,396 $ 193,169 $ 1,444,565 $ 245,545 |
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, 2015 : Gains and Losses On Cash Flow Hedges Defined Benefit Pension Items Foreign Currency Items Total (in thousands) Balance at December 31, 2014 $ (25 ) $ (581 ) $ (69,404 ) $ (70,010 ) Other comprehensive income (loss) before reclassifications — 113 (18,059 ) (17,946 ) Amount reclassified from AOCI 25 — — 25 Net other comprehensive income (loss) 25 113 (18,059 ) (17,921 ) Balance at June 30, 2015 $ — $ (468 ) $ (87,463 ) $ (87,931 ) |
Earnings Per Share | The following table sets forth the computation of basic and diluted net income (loss) per common share: Three Months Ended Six Months Ended 2015 2014 2015 2014 (in thousands except share and per share data) Net income (loss) attributable to common stockholders of Live Nation $ 15,056 $ 22,934 $ (43,223 ) $ (9,514 ) Accretion of redeemable noncontrolling interests (3,105 ) (460 ) (6,993 ) (2,504 ) Net income (loss) available to common stockholders of Live Nation—basic and diluted $ 11,951 $ 22,474 $ (50,216 ) $ (12,018 ) Weighted average common shares—basic 200,767,811 198,701,762 200,463,314 198,282,044 Effect of dilutive securities: Stock options and restricted stock 8,010,778 7,287,509 — — Weighted average common shares—diluted 208,778,589 205,989,271 200,463,314 198,282,044 Basic and diluted net income (loss) per common share available to common stockholders of Live Nation $ 0.06 $ 0.11 $ (0.25 ) $ (0.06 ) |
Potentially Dilutive Securities Excluded From Diluted Net Income 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: Three Months Ended Six Months Ended 2015 2014 2015 2014 (in thousands) Options to purchase shares of common stock 3,075 5,108 16,657 17,755 Restricted stock awards—unvested 242 715 1,047 1,770 Conversion shares related to the convertible senior notes 7,930 16,035 7,930 16,035 Number of anti-dilutive potentially issuable shares excluded from diluted common shares outstanding 11,247 21,858 25,634 35,560 |
STOCK-BASED COMPENSATION Stock-
STOCK-BASED COMPENSATION Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Stock-Based Compensation Expense | The following is a summary of stock-based compensation expense recorded by the Company: Three Months Ended Six Months Ended 2015 2014 2015 2014 (in thousands) Selling, general and administrative expenses $ 4,028 $ 8,255 $ 8,770 $ 13,175 Corporate expenses 4,037 4,295 8,792 9,393 Total $ 8,065 $ 12,550 $ 17,562 $ 22,568 |
SEGMENT DATA Segment Data (Tabl
SEGMENT DATA Segment Data (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
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, 2015 and 2014 : Concerts Ticketing Artist Sponsorship Other Corporate Eliminations Consolidated (in thousands) Three Months Ended June 30, 2015 Revenue $ 1,268,382 $ 360,197 $ 87,835 $ 81,071 $ 791 $ — $ (32,499 ) $ 1,765,777 Direct operating expenses 1,075,507 171,045 53,806 10,717 — — (31,976 ) 1,279,099 Selling, general and administrative expenses 157,348 116,741 38,478 13,856 416 — — 326,839 Depreciation and amortization 40,033 35,561 10,756 2,225 13 506 (523 ) 88,571 Loss (gain) on disposal of operating assets (55 ) (30 ) — — — 9 — (76 ) Corporate expenses — — — — — 26,342 — 26,342 Acquisition transaction expenses 1,341 286 1,104 — — 26 — 2,757 Operating income (loss) $ (5,792 ) $ 36,594 $ (16,309 ) $ 54,273 $ 362 $ (26,883 ) $ — $ 42,245 Intersegment revenue $ 30,572 $ 460 $ 1,467 $ — $ — $ — $ (32,499 ) $ — Three Months Ended June 30, 2014 Revenue $ 1,172,166 $ 371,000 $ 79,162 $ 70,903 $ 839 $ — $ (28,285 ) $ 1,665,785 Direct operating expenses 969,991 183,269 47,242 9,995 1,590 — (27,391 ) 1,184,696 Selling, general and administrative expenses 166,890 111,882 34,029 12,244 880 — — 325,925 Concerts Ticketing Artist Sponsorship Other Corporate Eliminations Consolidated (in thousands) Depreciation and amortization 26,189 40,968 7,665 1,739 10 542 (894 ) 76,219 Loss (gain) on disposal of operating assets (3,745 ) (43 ) 1 — — — (3,787 ) Corporate expenses — — — — 25,717 — 25,717 Acquisition transaction expenses 456 58 (265 ) — 1,080 — 1,329 Operating income (loss) $ 12,385 $ 34,866 $ (9,510 ) $ 46,925 $ (1,641 ) $ (27,339 ) $ — $ 55,686 Intersegment revenue $ 25,604 $ 187 $ 2,494 $ — $ — $ — $ (28,285 ) $ — Six Months Ended June 30, 2015 Revenue $ 1,891,616 $ 735,827 $ 165,780 $ 133,168 $ 1,584 $ — $ (41,886 ) $ 2,886,089 Direct operating expenses 1,561,479 356,737 100,636 21,345 1,068 — (40,877 ) 2,000,388 Selling, general and administrative expenses 308,338 229,154 75,692 26,950 1,250 — — 641,384 Depreciation and amortization 69,214 78,857 20,791 4,213 24 1,022 (1,009 ) 173,112 Loss (gain) on disposal of operating assets 171 (179 ) — — — (29 ) — (37 ) Corporate expenses — — — — — 50,702 — 50,702 Acquisition transaction expenses 775 433 1,110 — — (88 ) — 2,230 Operating income (loss) $ (48,361 ) $ 70,825 $ (32,449 ) $ 80,660 $ (758 ) $ (51,607 ) $ — $ 18,310 Intersegment revenue $ 39,311 $ 460 $ 2,115 $ — $ — $ — $ (41,886 ) $ — Capital expenditures $ 18,880 $ 42,117 $ 868 $ 1,721 $ (13 ) $ 438 $ — $ 64,011 Concerts Ticketing Artist Sponsorship Other Corporate Eliminations Consolidated (in thousands) Six Months Ended June 30, 2014 Revenue $ 1,834,656 $ 725,461 $ 151,718 $ 116,291 $ 1,585 $ — $ (36,610 ) $ 2,793,101 Direct operating expenses 1,487,146 355,860 89,318 18,059 681 — (35,217 ) 1,915,847 Selling, general and administrative expenses 316,806 225,902 59,822 24,165 1,635 — — 628,330 Depreciation and amortization 54,709 86,951 15,436 1,943 20 1,141 (1,393 ) 158,807 Loss (gain) on disposal of operating assets (3,235 ) (117 ) 34 — — 37 — (3,281 ) Corporate expenses — — — — — 46,891 — 46,891 Acquisition transaction expenses 783 63 188 — — 2,095 — 3,129 Operating income (loss) $ (21,553 ) $ 56,802 $ (13,080 ) $ 72,124 $ (751 ) $ (50,164 ) $ — $ 43,378 Intersegment revenue $ 33,034 $ 460 $ 3,116 $ — $ — $ — $ (36,610 ) $ — Capital expenditures $ 18,306 $ 37,438 $ 943 $ 449 $ — $ 5,271 $ — $ 62,407 |
BASIS OF PRESENTATION AND OTH21
BASIS OF PRESENTATION AND OTHER INFORMATION Basis of Presentation and Other Information (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2014 | |
Accounting Policies [Abstract] | ||
Collected proceeds relating to the face value of the tickets sold on behalf of clients and the clients share of service charges | $ 618.3 | $ 533.8 |
Prior Period Reclassification Adjustment | $ 20 |
LONG-LIVED ASSETS (Definite-liv
LONG-LIVED ASSETS (Definite-lived Intangibles) (Details) - 6 months ended Jun. 30, 2015 - USD ($) $ in Thousands | Total | |
Finite-lived Intangibles Asset [Roll Forward] | ||
Gross carrying amount - Beginning of period | $ 1,241,170 | |
Accumulated amortization - Beginning of period | (558,457) | |
Net - Beginning of period | 682,713 | |
Gross carrying amount - Acquisitions - current year | 190,517 | |
Gross carrying amount - Acquisitions - prior year | (4,258) | |
Gross carrying amount - Foreign exchange | (11,995) | |
Gross carrying amount - Other | [1] | (25,349) |
Gross carrying amount - Net change | 148,915 | |
Accumulated amortization - Amortization | (76,130) | |
Accumulated amortization - Foreign exchange | 4,276 | |
Accumulated amortization - Other | [1] | 25,312 |
Accumulated amortization - Net change | (46,542) | |
Gross carrying amount - End of period | 1,390,085 | |
Accumulated amortization - End of period | (604,999) | |
Net - End of period | $ 785,086 | |
Weighted-average lives of definite-lived intangible assets | 9 years | |
Revenue-generating contracts [Member] | ||
Finite-lived Intangibles Asset [Roll Forward] | ||
Gross carrying amount - Beginning of period | $ 635,127 | |
Accumulated amortization - Beginning of period | (272,071) | |
Net - Beginning of period | 363,056 | |
Gross carrying amount - Acquisitions - current year | 115,097 | |
Gross carrying amount - Acquisitions - prior year | (4,246) | |
Gross carrying amount - Foreign exchange | (7,470) | |
Gross carrying amount - Other | [1] | (16,473) |
Gross carrying amount - Net change | 86,908 | |
Accumulated amortization - Amortization | (36,676) | |
Accumulated amortization - Foreign exchange | 2,839 | |
Accumulated amortization - Other | [1] | 16,473 |
Accumulated amortization - Net change | (17,364) | |
Gross carrying amount - End of period | 722,035 | |
Accumulated amortization - End of period | (289,435) | |
Net - End of period | $ 432,600 | |
Weighted-average lives of definite-lived intangible assets | 9 years | |
Client/vendor relationships [Member] | ||
Finite-lived Intangibles Asset [Roll Forward] | ||
Gross carrying amount - Beginning of period | $ 355,992 | |
Accumulated amortization - Beginning of period | (123,195) | |
Net - Beginning of period | 232,797 | |
Gross carrying amount - Acquisitions - current year | 15,000 | |
Gross carrying amount - Acquisitions - prior year | (1,523) | |
Gross carrying amount - Foreign exchange | (4,124) | |
Gross carrying amount - Other | [1] | (2,655) |
Gross carrying amount - Net change | 6,698 | |
Accumulated amortization - Amortization | (25,371) | |
Accumulated amortization - Foreign exchange | 961 | |
Accumulated amortization - Other | [1] | 2,655 |
Accumulated amortization - Net change | (21,755) | |
Gross carrying amount - End of period | 362,690 | |
Accumulated amortization - End of period | (144,950) | |
Net - End of period | $ 217,740 | |
Weighted-average lives of definite-lived intangible assets | 8 years | |
Non-compete agreements [Member] | ||
Finite-lived Intangibles Asset [Roll Forward] | ||
Gross carrying amount - Beginning of period | $ 123,552 | |
Accumulated amortization - Beginning of period | (98,512) | |
Net - Beginning of period | 25,040 | |
Gross carrying amount - Acquisitions - current year | 0 | |
Gross carrying amount - Acquisitions - prior year | 1,500 | |
Gross carrying amount - Foreign exchange | 0 | |
Gross carrying amount - Other | [1] | 0 |
Gross carrying amount - Net change | 1,500 | |
Accumulated amortization - Amortization | (5,904) | |
Accumulated amortization - Foreign exchange | 0 | |
Accumulated amortization - Other | [1] | 0 |
Accumulated amortization - Net change | (5,904) | |
Gross carrying amount - End of period | 125,052 | |
Accumulated amortization - End of period | (104,416) | |
Net - End of period | 20,636 | |
Venue management and leaseholds [Member] | ||
Finite-lived Intangibles Asset [Roll Forward] | ||
Gross carrying amount - Beginning of period | 83,322 | |
Accumulated amortization - Beginning of period | (50,490) | |
Net - Beginning of period | 32,832 | |
Gross carrying amount - Acquisitions - current year | 0 | |
Gross carrying amount - Acquisitions - prior year | 0 | |
Gross carrying amount - Foreign exchange | (341) | |
Gross carrying amount - Other | [1] | (6,212) |
Gross carrying amount - Net change | (6,553) | |
Accumulated amortization - Amortization | (4,506) | |
Accumulated amortization - Foreign exchange | 333 | |
Accumulated amortization - Other | [1] | 6,172 |
Accumulated amortization - Net change | 1,999 | |
Gross carrying amount - End of period | 76,769 | |
Accumulated amortization - End of period | (48,491) | |
Net - End of period | 28,278 | |
Technology [Member] | ||
Finite-lived Intangibles Asset [Roll Forward] | ||
Gross carrying amount - Beginning of period | 15,330 | |
Accumulated amortization - Beginning of period | (4,246) | |
Net - Beginning of period | 11,084 | |
Gross carrying amount - Acquisitions - current year | 17,950 | |
Gross carrying amount - Acquisitions - prior year | 11 | |
Gross carrying amount - Foreign exchange | 143 | |
Gross carrying amount - Other | [1] | 0 |
Gross carrying amount - Net change | 18,104 | |
Accumulated amortization - Amortization | (1,761) | |
Accumulated amortization - Foreign exchange | (39) | |
Accumulated amortization - Other | [1] | 0 |
Accumulated amortization - Net change | (1,800) | |
Gross carrying amount - End of period | 33,434 | |
Accumulated amortization - End of period | (6,046) | |
Net - End of period | $ 27,388 | |
Weighted-average lives of definite-lived intangible assets | 10 years | |
Trademarks and naming rights [Member] | ||
Finite-lived Intangibles Asset [Roll Forward] | ||
Gross carrying amount - Beginning of period | $ 24,266 | |
Accumulated amortization - Beginning of period | (8,701) | |
Net - Beginning of period | 15,565 | |
Gross carrying amount - Acquisitions - current year | 42,470 | |
Gross carrying amount - Acquisitions - prior year | 0 | |
Gross carrying amount - Foreign exchange | (203) | |
Gross carrying amount - Other | [1] | (9) |
Gross carrying amount - Net change | 42,258 | |
Accumulated amortization - Amortization | (1,718) | |
Accumulated amortization - Foreign exchange | 182 | |
Accumulated amortization - Other | [1] | 12 |
Accumulated amortization - Net change | (1,524) | |
Gross carrying amount - End of period | 66,524 | |
Accumulated amortization - End of period | (10,225) | |
Net - End of period | $ 56,299 | |
Weighted-average lives of definite-lived intangible assets | 10 years | |
Other [Member] | ||
Finite-lived Intangibles Asset [Roll Forward] | ||
Gross carrying amount - Beginning of period | $ 3,581 | |
Accumulated amortization - Beginning of period | (1,242) | |
Net - Beginning of period | 2,339 | |
Gross carrying amount - Acquisitions - current year | 0 | |
Gross carrying amount - Acquisitions - prior year | 0 | |
Gross carrying amount - Foreign exchange | 0 | |
Gross carrying amount - Other | [1] | 0 |
Gross carrying amount - Net change | 0 | |
Accumulated amortization - Amortization | (194) | |
Accumulated amortization - Foreign exchange | 0 | |
Accumulated amortization - Other | [1] | 0 |
Accumulated amortization - Net change | (194) | |
Gross carrying amount - End of period | 3,581 | |
Accumulated amortization - End of period | (1,436) | |
Net - End of period | $ 2,145 | |
[1] | Other includes net downs of fully amortized or impaired assets. |
LONG-LIVED ASSETS (Definite-l23
LONG-LIVED ASSETS (Definite-lived Intangibles Amortization) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of definite-lived intangible assets | $ 43,500 | $ 33,300 | $ 76,100 | $ 67,900 |
Amortization expense related to nonrecoupable ticketing contract advances | 13,200 | $ 11,600 | 32,800 | $ 29,000 |
Estimate of future amortization expense of definite-lived intangible assets [Abstract] | ||||
2,015 | 75,497 | 75,497 | ||
2,016 | 144,778 | 144,778 | ||
2,017 | 125,955 | 125,955 | ||
2,018 | 110,133 | 110,133 | ||
2,019 | $ 97,110 | $ 97,110 |
LONG-LIVED ASSETS (Goodwill) (D
LONG-LIVED ASSETS (Goodwill) (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2015USD ($) | |
Changes in carrying amount of goodwill [Roll Forward] | |
Goodwill | $ 1,883,900 |
Accumulated impairment losses | (404,863) |
Net | 1,479,037 |
Acquisitions—current year | 184,447 |
Acquisitions—prior year | (31,293) |
Foreign exchange | (13,068) |
Goodwill | 2,023,986 |
Accumulated impairment losses | (404,863) |
Net | 1,619,123 |
Concerts [Member] | |
Changes in carrying amount of goodwill [Roll Forward] | |
Goodwill | 577,891 |
Accumulated impairment losses | (386,915) |
Net | 190,976 |
Acquisitions—current year | 79,915 |
Acquisitions—prior year | (35,844) |
Foreign exchange | (2,159) |
Goodwill | 619,803 |
Accumulated impairment losses | (386,915) |
Net | 232,888 |
Ticketing [Member] | |
Changes in carrying amount of goodwill [Roll Forward] | |
Goodwill | 657,631 |
Accumulated impairment losses | 0 |
Net | 657,631 |
Acquisitions—current year | 79,277 |
Acquisitions—prior year | (4,245) |
Foreign exchange | (6,779) |
Goodwill | 725,884 |
Accumulated impairment losses | 0 |
Net | 725,884 |
Artist Nation [Member] | |
Changes in carrying amount of goodwill [Roll Forward] | |
Goodwill | 345,513 |
Accumulated impairment losses | (17,948) |
Net | 327,565 |
Acquisitions—current year | 4,800 |
Acquisitions—prior year | 4,461 |
Foreign exchange | 343 |
Goodwill | 355,117 |
Accumulated impairment losses | (17,948) |
Net | 337,169 |
Sponsorship & Advertising [Member] | |
Changes in carrying amount of goodwill [Roll Forward] | |
Goodwill | 302,865 |
Accumulated impairment losses | 0 |
Net | 302,865 |
Acquisitions—current year | 20,455 |
Acquisitions—prior year | 4,335 |
Foreign exchange | (4,473) |
Goodwill | 323,182 |
Accumulated impairment losses | 0 |
Net | $ 323,182 |
FAIR VALUE MEASUREMENTS (Assets
FAIR VALUE MEASUREMENTS (Assets Measured on Recurring Basis) (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Level 1 [Member] | Recurring [Member] | ||
Assets: | ||
Cash equivalents | $ 130,035 | $ 111 |
FAIR VALUE MEASUREMENTS (Fair V
FAIR VALUE MEASUREMENTS (Fair Value of Debt) (Details) - Level 2 [Member] - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
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 | $ 451.6 | $ 451.3 |
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 | $ 255 | $ 250.3 |
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 | $ 298.5 | $ 296.3 |
Fixed Rate Debt With Noncontrolling Interest Partner [Member] | ||
Fair value, estimate not practicable [Abstract] | ||
Face amount of debt | $ 30.4 | $ 30 |
COMMITMENTS AND CONTINGENT LI27
COMMITMENTS AND CONTINGENT LIABILITIES Commitments and Contingent Liabilities (Details) $ in Millions | Jun. 30, 2015USD ($) |
Ticketing Fees Consumer Class Action Litigation [Member] | Pending Litigation [Member] | |
Loss Contingencies [Line Items] | |
Accrual for best estimate of probable costs of settlement | $ 34.9 |
INCOME TAXES Income Taxes (Deta
INCOME TAXES Income Taxes (Details) - 6 months ended Jun. 30, 2015 | Total |
Income Tax Examination [Line Items] | |
Expected annual effective income tax rate | 30.00% |
Major tax jurisdictions [Member] | Minimum [Member] | |
Income Tax Examination [Line Items] | |
Tax years remain open to examination | 2,005 |
Major tax jurisdictions [Member] | Maximum [Member] | |
Income Tax Examination [Line Items] | |
Tax years remain open to examination | 2,014 |
EQUITY (Equity and Redeemable N
EQUITY (Equity and Redeemable Noncontrolling Interests) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Equity [Roll Forward] | ||||
Balance at December 31, 2014 | $ 1,483,847 | |||
Non-cash and stock-based compensation | 17,562 | |||
Common stock issued under stock plans, net of shares withheld for employee taxes | (5,321) | |||
Exercise of stock options | 13,015 | |||
Acquisitions | 17,069 | |||
Purchases of noncontrolling interests | (8,052) | |||
Sales of noncontrolling interests | 2,142 | |||
Redeemable noncontrolling interests fair value adjustments | (6,993) | |||
Cash distributions | (9,178) | |||
Other | (513) | |||
Comprehensive loss: | ||||
Net loss | (41,092) | |||
Realized loss on cash flow hedges | $ 12 | $ 16 | 25 | $ 33 |
Change in funded status of defined benefit pension plan | 108 | 0 | 113 | 30 |
Foreign currency translation adjustments | 26,609 | $ 9,324 | (18,059) | $ 19,143 |
Balance at June 30, 2015 | 1,444,565 | 1,444,565 | ||
Redeemable Noncontrolling Interests [Roll Forward] | ||||
Balance at December 31, 2014 | 168,855 | |||
Comprehensive loss: | ||||
Balance at June 30, 2015 | 245,545 | 245,545 | ||
Live Nation Entertainment, Inc. Stockholders' Equity [Member] | ||||
Equity [Roll Forward] | ||||
Balance at December 31, 2014 | 1,296,954 | |||
Non-cash and stock-based compensation | 17,562 | |||
Common stock issued under stock plans, net of shares withheld for employee taxes | (5,321) | |||
Exercise of stock options | 13,015 | |||
Acquisitions | 0 | |||
Purchases of noncontrolling interests | (4,819) | |||
Sales of noncontrolling interests | 2,142 | |||
Redeemable noncontrolling interests fair value adjustments | (6,993) | |||
Cash distributions | 0 | |||
Other | 0 | |||
Comprehensive loss: | ||||
Net loss | (43,223) | |||
Realized loss on cash flow hedges | 25 | |||
Change in funded status of defined benefit pension plan | 113 | |||
Foreign currency translation adjustments | (18,059) | |||
Balance at June 30, 2015 | 1,251,396 | 1,251,396 | ||
Noncontrolling Interests [Member] | ||||
Equity [Roll Forward] | ||||
Balance at December 31, 2014 | 186,893 | |||
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 | 17,069 | |||
Purchases of noncontrolling interests | (3,233) | |||
Sales of noncontrolling interests | 0 | |||
Redeemable noncontrolling interests fair value adjustments | 0 | |||
Cash distributions | (9,178) | |||
Other | (513) | |||
Comprehensive loss: | ||||
Net loss | 2,131 | |||
Realized loss on cash flow hedges | 0 | |||
Change in funded status of defined benefit pension plan | 0 | |||
Foreign currency translation adjustments | 0 | |||
Balance at June 30, 2015 | 193,169 | 193,169 | ||
Redeemable Noncontrolling Interests [Member] | ||||
Redeemable Noncontrolling Interests [Roll Forward] | ||||
Balance at December 31, 2014 | 168,855 | |||
Acquisitions | 74,911 | |||
Purchases of noncontrolling interests | 0 | |||
Sales of noncontrolling interests | 147 | |||
Redeemable noncontrolling interests fair value adjustments | 6,993 | |||
Cash distributions | (192) | |||
Other | 53 | |||
Comprehensive loss: | ||||
Net loss | (5,222) | |||
Balance at June 30, 2015 | $ 245,545 | $ 245,545 |
EQUITY (Accumulated Other Compr
EQUITY (Accumulated Other Comprehensive Income (Loss)) (Details) - 6 months ended Jun. 30, 2015 $ in Thousands | USD ($)agreement |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Number of settled instruments designated as cash flow hedges (in agreements) | agreement | 1 |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Balance at December 31, 2014 | $ (70,010) |
Other comprehensive income (loss) before reclassifications | (17,946) |
Amount reclassified from AOCI | 25 |
Net other comprehensive income (loss) | (17,921) |
Balance at June 30, 2015 | (87,931) |
Gains and Losses On Cash Flow Hedges [Member] | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Balance at December 31, 2014 | (25) |
Other comprehensive income (loss) before reclassifications | 0 |
Amount reclassified from AOCI | 25 |
Net other comprehensive income (loss) | 25 |
Balance at June 30, 2015 | 0 |
Defined Benefit Pension Items [Member] | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Balance at December 31, 2014 | (581) |
Other comprehensive income (loss) before reclassifications | 113 |
Amount reclassified from AOCI | 0 |
Net other comprehensive income (loss) | 113 |
Balance at June 30, 2015 | (468) |
Foreign Currency Items [Member] | |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |
Balance at December 31, 2014 | (69,404) |
Other comprehensive income (loss) before reclassifications | (18,059) |
Amount reclassified from AOCI | 0 |
Net other comprehensive income (loss) | (18,059) |
Balance at June 30, 2015 | $ (87,463) |
EQUITY (Earnings per Share) (De
EQUITY (Earnings per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Computation of basic and diluted net income (loss) per common share [Abstract] | ||||
Net income (loss) attributable to common stockholders of Live Nation | $ 15,056 | $ 22,934 | $ (43,223) | $ (9,514) |
Accretion of redeemable noncontrolling interests | (3,105) | (460) | (6,993) | (2,504) |
Net income (loss) available to common stockholders of Live Nation—basic and diluted | $ 11,951 | $ 22,474 | $ (50,216) | $ (12,018) |
Weighted Average Number of Shares Outstanding, Basic | 200,767,811 | 198,701,762 | 200,463,314 | 198,282,044 |
Effect of dilutive securities: | ||||
Stock options and restricted stock | 8,010,778 | 7,287,509 | 0 | 0 |
Weighted Average Number of Shares Outstanding, Diluted | 208,778,589 | 205,989,271 | 200,463,314 | 198,282,044 |
Basic and diluted net loss per common share attributable to common stockholders of Live Nation (in dollars per shares) | $ 0.06 | $ 0.11 | $ (0.25) | $ (0.06) |
EQUITY (Antidilutive Securities
EQUITY (Antidilutive Securities Excluded from Computation of Earnings per Share) (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Number of anti-dilutive potentially issuable shares excluded from diluted common shares outstanding | 11,247 | 21,858 | 25,634 | 35,560 |
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 | 3,075 | 5,108 | 16,657 | 17,755 |
Restricted stock awards - 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 | 242 | 715 | 1,047 | 1,770 |
Conversion shares related to the 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 | 7,930 | 16,035 | 7,930 | 16,035 |
STOCK-BASED COMPENSATION Stoc33
STOCK-BASED COMPENSATION Stock-Based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | $ 8,065 | $ 12,550 | $ 17,562 | $ 22,568 |
Total unrecognized compensation cost | 61,200 | $ 61,200 | ||
Amortization period of unrecognized compensation cost (in years) | 2 years 5 months 7 days | |||
Selling, general and administrative expenses [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | 4,028 | 8,255 | $ 8,770 | 13,175 |
Corporate expenses [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | $ 4,037 | $ 4,295 | $ 8,792 | $ 9,393 |
SEGMENT DATA Segment Data (Deta
SEGMENT DATA Segment Data (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Segment Reporting Information [Line Items] | ||||
Revenue | $ 1,765,777 | $ 1,665,785 | $ 2,886,089 | $ 2,793,101 |
Direct operating expenses | 1,279,099 | 1,184,696 | 2,000,388 | 1,915,847 |
Selling, general and administrative expenses | 326,839 | 325,925 | 641,384 | 628,330 |
Depreciation and amortization | 88,571 | 76,219 | 173,112 | 158,807 |
Loss (gain) on disposal of operating assets | (76) | (3,787) | (37) | (3,281) |
Corporate expenses | 26,342 | 25,717 | 50,702 | 46,891 |
Acquisition transaction expenses | 2,757 | 1,329 | 2,230 | 3,129 |
Operating income (loss) | 42,245 | 55,686 | 18,310 | 43,378 |
Capital expenditures | 64,011 | 62,407 | ||
Operating Segments [Member] | Concerts [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 1,268,382 | 1,172,166 | 1,891,616 | 1,834,656 |
Direct operating expenses | 1,075,507 | 969,991 | 1,561,479 | 1,487,146 |
Selling, general and administrative expenses | 157,348 | 166,890 | 308,338 | 316,806 |
Depreciation and amortization | 40,033 | 26,189 | 69,214 | 54,709 |
Loss (gain) on disposal of operating assets | (55) | (3,745) | 171 | (3,235) |
Corporate expenses | 0 | 0 | 0 | 0 |
Acquisition transaction expenses | 1,341 | 456 | 775 | 783 |
Operating income (loss) | (5,792) | 12,385 | (48,361) | (21,553) |
Capital expenditures | 18,880 | 18,306 | ||
Operating Segments [Member] | Ticketing [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 360,197 | 371,000 | 735,827 | 725,461 |
Direct operating expenses | 171,045 | 183,269 | 356,737 | 355,860 |
Selling, general and administrative expenses | 116,741 | 111,882 | 229,154 | 225,902 |
Depreciation and amortization | 35,561 | 40,968 | 78,857 | 86,951 |
Loss (gain) on disposal of operating assets | (30) | (43) | (179) | (117) |
Corporate expenses | 0 | 0 | 0 | 0 |
Acquisition transaction expenses | 286 | 58 | 433 | 63 |
Operating income (loss) | 36,594 | 34,866 | 70,825 | 56,802 |
Capital expenditures | 42,117 | 37,438 | ||
Operating Segments [Member] | Artist Nation [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 87,835 | 79,162 | 165,780 | 151,718 |
Direct operating expenses | 53,806 | 47,242 | 100,636 | 89,318 |
Selling, general and administrative expenses | 38,478 | 34,029 | 75,692 | 59,822 |
Depreciation and amortization | 10,756 | 7,665 | 20,791 | 15,436 |
Loss (gain) on disposal of operating assets | 0 | 1 | 0 | 34 |
Corporate expenses | 0 | 0 | 0 | 0 |
Acquisition transaction expenses | 1,104 | (265) | 1,110 | 188 |
Operating income (loss) | (16,309) | (9,510) | (32,449) | (13,080) |
Capital expenditures | 868 | 943 | ||
Operating Segments [Member] | Sponsorship and Advertising [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 81,071 | 70,903 | 133,168 | 116,291 |
Direct operating expenses | 10,717 | 9,995 | 21,345 | 18,059 |
Selling, general and administrative expenses | 13,856 | 12,244 | 26,950 | 24,165 |
Depreciation and amortization | 2,225 | 1,739 | 4,213 | 1,943 |
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) | 54,273 | 46,925 | 80,660 | 72,124 |
Capital expenditures | 1,721 | 449 | ||
Operating Segments [Member] | Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 791 | 839 | 1,584 | 1,585 |
Direct operating expenses | 0 | 1,590 | 1,068 | 681 |
Selling, general and administrative expenses | 416 | 880 | 1,250 | 1,635 |
Depreciation and amortization | 13 | $ 10 | 24 | 20 |
Loss (gain) on disposal of operating assets | 0 | 0 | 0 | |
Corporate expenses | 0 | 0 | 0 | |
Acquisition transaction expenses | 0 | 0 | 0 | |
Operating income (loss) | 362 | $ (1,641) | (758) | (751) |
Capital expenditures | (13) | 0 | ||
Operating Segments [Member] | 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 | 506 | 542 | 1,022 | 1,141 |
Loss (gain) on disposal of operating assets | 9 | 0 | (29) | 37 |
Corporate expenses | 26,342 | 25,717 | 50,702 | 46,891 |
Acquisition transaction expenses | 26 | 1,080 | (88) | 2,095 |
Operating income (loss) | (26,883) | (27,339) | (51,607) | (50,164) |
Capital expenditures | 438 | 5,271 | ||
Intersegment Eliminations [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | (32,499) | (28,285) | (41,886) | (36,610) |
Direct operating expenses | (31,976) | (27,391) | (40,877) | (35,217) |
Selling, general and administrative expenses | 0 | 0 | 0 | 0 |
Depreciation and amortization | (523) | (894) | (1,009) | (1,393) |
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 |
Capital expenditures | 0 | 0 | ||
Intersegment Eliminations [Member] | Concerts [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 30,572 | 25,604 | 39,311 | 33,034 |
Intersegment Eliminations [Member] | Ticketing [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 460 | 187 | 460 | 460 |
Intersegment Eliminations [Member] | Artist Nation [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 1,467 | 2,494 | 2,115 | 3,116 |
Intersegment Eliminations [Member] | Sponsorship and Advertising [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Intersegment Eliminations [Member] | Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Intersegment Eliminations [Member] | Corporate [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | $ 0 | $ 0 | $ 0 | $ 0 |