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x
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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¨
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Delaware
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20-3247759
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(State of Incorporation)
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(I.R.S. Employer Identification No.)
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Large accelerated filer
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x
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Accelerated filer
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¨
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Non-accelerated filer
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¨
(Do not check if a smaller reporting company)
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Smaller reporting company
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¨
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Page
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PART I—FINANCIAL INFORMATION
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||
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PART II—OTHER INFORMATION
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|
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AOCI
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Accumulated other comprehensive income (loss)
|
AOI
|
Adjusted operating income (loss)
|
Clear Channel
|
Clear Channel Communications, Inc.
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Company
|
Live Nation Entertainment, Inc. and subsidiaries
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FASB
|
Financial Accounting Standards Board
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GAAP
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United States Generally Accepted Accounting Principles
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Live Nation
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Live Nation Entertainment, Inc. and subsidiaries
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SEC
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United States Securities and Exchange Commission
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Ticketmaster
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For periods prior to May 6, 2010, Ticketmaster means Ticketmaster Entertainment LLC and its predecessor companies (including without limitation Ticketmaster Entertainment, Inc.); for periods on and after May 6, 2010, Ticketmaster means the Ticketmaster ticketing business of the Company
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September 30,
2014 |
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December 31,
2013 |
||||
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(in thousands)
|
||||||
ASSETS
|
|
|
|
||||
Current assets
|
|
|
|
||||
Cash and cash equivalents
|
$
|
1,358,300
|
|
|
$
|
1,299,184
|
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Accounts receivable, less allowance of $17,385 and $19,850, respectively
|
607,150
|
|
|
439,151
|
|
||
Prepaid expenses
|
484,603
|
|
|
378,342
|
|
||
Other current assets
|
47,882
|
|
|
43,427
|
|
||
Total current assets
|
2,497,935
|
|
|
2,160,104
|
|
||
Property, plant and equipment
|
|
|
|
||||
Land, buildings and improvements
|
811,059
|
|
|
816,931
|
|
||
Computer equipment and capitalized software
|
430,443
|
|
|
421,846
|
|
||
Furniture and other equipment
|
208,679
|
|
|
210,866
|
|
||
Construction in progress
|
80,210
|
|
|
52,883
|
|
||
|
1,530,391
|
|
|
1,502,526
|
|
||
Less accumulated depreciation
|
834,450
|
|
|
795,726
|
|
||
|
695,941
|
|
|
706,800
|
|
||
Intangible assets
|
|
|
|
||||
Definite-lived intangible assets, net
|
619,671
|
|
|
676,564
|
|
||
Indefinite-lived intangible assets
|
369,640
|
|
|
376,736
|
|
||
Goodwill
|
1,484,677
|
|
|
1,466,983
|
|
||
Other long-term assets
|
379,867
|
|
|
296,334
|
|
||
Total assets
|
$
|
6,047,731
|
|
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$
|
5,683,521
|
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LIABILITIES AND EQUITY
|
|
|
|
||||
Current liabilities
|
|
|
|
||||
Accounts payable, client accounts
|
$
|
646,814
|
|
|
$
|
656,253
|
|
Accounts payable
|
96,104
|
|
|
111,320
|
|
||
Accrued expenses
|
763,800
|
|
|
668,799
|
|
||
Deferred revenue
|
399,534
|
|
|
486,433
|
|
||
Current portion of long-term debt
|
47,947
|
|
|
278,403
|
|
||
Other current liabilities
|
37,734
|
|
|
54,310
|
|
||
Total current liabilities
|
1,991,933
|
|
|
2,255,518
|
|
||
Long-term debt, net
|
2,027,209
|
|
|
1,530,484
|
|
||
Long-term deferred income taxes
|
165,224
|
|
|
161,637
|
|
||
Other long-term liabilities
|
107,684
|
|
|
85,035
|
|
||
Commitments and contingent liabilities
|
|
|
|
|
|
||
Redeemable noncontrolling interests
|
74,436
|
|
|
61,041
|
|
||
Stockholders’ equity
|
|
|
|
||||
Common stock
|
1,998
|
|
|
1,978
|
|
||
Additional paid-in capital
|
2,403,316
|
|
|
2,368,281
|
|
||
Accumulated deficit
|
(856,147
|
)
|
|
(951,796
|
)
|
||
Cost of shares held in treasury
|
(6,865
|
)
|
|
(6,865
|
)
|
||
Accumulated other comprehensive income (loss)
|
(37,577
|
)
|
|
(2,370
|
)
|
||
Total Live Nation Entertainment, Inc. stockholders’ equity
|
1,504,725
|
|
|
1,409,228
|
|
||
Noncontrolling interests
|
176,520
|
|
|
180,578
|
|
||
Total equity
|
1,681,245
|
|
|
1,589,806
|
|
||
Total liabilities and equity
|
$
|
6,047,731
|
|
|
$
|
5,683,521
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
|
(in thousands except share and per share data)
|
||||||||||||||
Revenue
|
$
|
2,502,008
|
|
|
$
|
2,262,236
|
|
|
$
|
5,295,109
|
|
|
$
|
4,865,447
|
|
Operating expenses:
|
|
|
|
|
|
|
|
||||||||
Direct operating expenses
|
1,876,519
|
|
|
1,698,731
|
|
|
3,792,366
|
|
|
3,485,583
|
|
||||
Selling, general and administrative expenses
|
349,676
|
|
|
325,005
|
|
|
978,006
|
|
|
900,246
|
|
||||
Depreciation and amortization
|
97,925
|
|
|
92,729
|
|
|
256,732
|
|
|
257,582
|
|
||||
Gain on disposal of operating assets
|
(1,696
|
)
|
|
(9,060
|
)
|
|
(4,977
|
)
|
|
(42,856
|
)
|
||||
Corporate expenses
|
26,647
|
|
|
26,442
|
|
|
73,538
|
|
|
68,909
|
|
||||
Acquisition transaction expenses
|
2,333
|
|
|
2,352
|
|
|
5,462
|
|
|
5,329
|
|
||||
Operating income
|
150,604
|
|
|
126,037
|
|
|
193,982
|
|
|
190,654
|
|
||||
Interest expense
|
28,113
|
|
|
29,393
|
|
|
80,195
|
|
|
87,585
|
|
||||
Loss on extinguishment of debt
|
233
|
|
|
36,269
|
|
|
233
|
|
|
36,269
|
|
||||
Interest income
|
(864
|
)
|
|
(1,547
|
)
|
|
(2,676
|
)
|
|
(4,205
|
)
|
||||
Equity in losses (earnings) of nonconsolidated affiliates
|
(2,155
|
)
|
|
2,363
|
|
|
(5,921
|
)
|
|
(2,848
|
)
|
||||
Other expense (income), net
|
12,587
|
|
|
(5,269
|
)
|
|
11,081
|
|
|
2,237
|
|
||||
Income before income taxes
|
112,690
|
|
|
64,828
|
|
|
111,070
|
|
|
71,616
|
|
||||
Income tax expense (benefit)
|
(3,137
|
)
|
|
14,410
|
|
|
(482
|
)
|
|
26,370
|
|
||||
Net income
|
115,827
|
|
|
50,418
|
|
|
111,552
|
|
|
45,246
|
|
||||
Net income attributable to noncontrolling interests
|
10,664
|
|
|
6,644
|
|
|
15,903
|
|
|
6,581
|
|
||||
Net income attributable to common stockholders of Live Nation Entertainment, Inc.
|
$
|
105,163
|
|
|
$
|
43,774
|
|
|
$
|
95,649
|
|
|
$
|
38,665
|
|
|
|
|
|
|
|
|
|
||||||||
Basic net income per common share attributable to common stockholders of Live Nation Entertainment, Inc.
|
$
|
0.52
|
|
|
$
|
0.22
|
|
|
$
|
0.46
|
|
|
$
|
0.20
|
|
Diluted net income per common share attributable to common stockholders of Live Nation Entertainment, Inc.
|
$
|
0.49
|
|
|
$
|
0.22
|
|
|
$
|
0.45
|
|
|
$
|
0.19
|
|
|
|
|
|
|
|
|
|
||||||||
Weighted average common shares outstanding:
|
|
|
|
|
|
|
|
||||||||
Basic
|
199,261,810
|
|
|
196,396,704
|
|
|
198,612,221
|
|
|
192,792,286
|
|
||||
Diluted
|
221,581,583
|
|
|
202,109,783
|
|
|
206,233,574
|
|
|
197,266,289
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
|
(in thousands)
|
||||||||||||||
Net income
|
$
|
115,827
|
|
|
$
|
50,418
|
|
|
$
|
111,552
|
|
|
$
|
45,246
|
|
Other comprehensive income (loss), net of tax:
|
|
|
|
|
|
|
|
||||||||
Unrealized gain (loss) on cash flow hedges
|
6
|
|
|
(22
|
)
|
|
(2
|
)
|
|
3
|
|
||||
Realized loss on cash flow hedges
|
15
|
|
|
19
|
|
|
48
|
|
|
476
|
|
||||
Change in funded status of defined benefit pension plan
|
—
|
|
|
—
|
|
|
30
|
|
|
—
|
|
||||
Foreign currency translation adjustments
|
(54,426
|
)
|
|
40,701
|
|
|
(35,283
|
)
|
|
(817
|
)
|
||||
Comprehensive income
|
61,422
|
|
|
91,116
|
|
|
76,345
|
|
|
44,908
|
|
||||
Comprehensive income attributable to noncontrolling interests
|
10,664
|
|
|
6,644
|
|
|
15,903
|
|
|
6,581
|
|
||||
Comprehensive income attributable to common stockholders of Live Nation Entertainment, Inc.
|
$
|
50,758
|
|
|
$
|
84,472
|
|
|
$
|
60,442
|
|
|
$
|
38,327
|
|
|
Nine Months Ended
September 30, |
||||||
|
2014
|
|
2013
|
||||
|
(in thousands)
|
||||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
|
||||
Net income
|
$
|
111,552
|
|
|
$
|
45,246
|
|
Reconciling items:
|
|
|
|
||||
Depreciation
|
93,140
|
|
|
90,443
|
|
||
Amortization
|
163,592
|
|
|
167,139
|
|
||
Deferred income tax benefit
|
(21,463
|
)
|
|
(8,230
|
)
|
||
Amortization of debt issuance costs and discount/premium, net
|
13,375
|
|
|
15,409
|
|
||
Loss on extinguishment of debt
|
233
|
|
|
36,269
|
|
||
Non-cash compensation expense
|
31,531
|
|
|
23,224
|
|
||
Gain on disposal of operating assets
|
(4,977
|
)
|
|
(42,856
|
)
|
||
Equity in earnings of nonconsolidated affiliates
|
(5,921
|
)
|
|
(2,848
|
)
|
||
Other, net
|
(2,679
|
)
|
|
221
|
|
||
Changes in operating assets and liabilities, net of effects of acquisitions and dispositions:
|
|
|
|
||||
Increase in accounts receivable
|
(193,705
|
)
|
|
(106,561
|
)
|
||
Increase in prepaid expenses
|
(125,525
|
)
|
|
(50,432
|
)
|
||
Increase in other assets
|
(105,228
|
)
|
|
(94,421
|
)
|
||
Increase in accounts payable, accrued expenses and other liabilities
|
108,716
|
|
|
237,718
|
|
||
Decrease in deferred revenue
|
(76,473
|
)
|
|
(45,783
|
)
|
||
Net cash provided by (used in) operating activities
|
(13,832
|
)
|
|
264,538
|
|
||
CASH FLOWS FROM INVESTING ACTIVITIES
|
|
|
|
||||
Distributions from nonconsolidated affiliates
|
7,303
|
|
|
13,104
|
|
||
Investments made in nonconsolidated affiliates
|
(11,324
|
)
|
|
(7,505
|
)
|
||
Purchases of property, plant and equipment
|
(98,248
|
)
|
|
(103,577
|
)
|
||
Proceeds from disposal of operating assets, net of cash divested
|
2,058
|
|
|
83,086
|
|
||
Cash paid for acquisitions, net of cash acquired
|
(48,527
|
)
|
|
(26,418
|
)
|
||
Purchases of intangible assets
|
(2,675
|
)
|
|
(17
|
)
|
||
Other, net
|
(8,279
|
)
|
|
(1,163
|
)
|
||
Net cash used in investing activities
|
(159,692
|
)
|
|
(42,490
|
)
|
||
CASH FLOWS FROM FINANCING ACTIVITIES
|
|
|
|
||||
Proceeds from long-term debt, net of debt issuance costs
|
515,258
|
|
|
870,324
|
|
||
Payments on long-term debt, including redemption costs
|
(245,014
|
)
|
|
(854,277
|
)
|
||
Contributions from noncontrolling interests
|
81
|
|
|
267
|
|
||
Distributions to noncontrolling interests
|
(23,964
|
)
|
|
(12,382
|
)
|
||
Purchases and sales of noncontrolling interests, net
|
(3,528
|
)
|
|
(75
|
)
|
||
Proceeds from exercise of stock options
|
14,142
|
|
|
80,593
|
|
||
Payments for deferred and contingent consideration
|
(5,722
|
)
|
|
(750
|
)
|
||
Net cash provided by financing activities
|
251,253
|
|
|
83,700
|
|
||
Effect of exchange rate changes on cash and cash equivalents
|
(18,613
|
)
|
|
(4,225
|
)
|
||
Net increase in cash and cash equivalents
|
59,116
|
|
|
301,523
|
|
||
Cash and cash equivalents at beginning of period
|
1,299,184
|
|
|
1,001,055
|
|
||
Cash and cash equivalents at end of period
|
$
|
1,358,300
|
|
|
$
|
1,302,578
|
|
|
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, 2013:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Gross carrying amount
|
$
|
585,094
|
|
|
$
|
277,937
|
|
|
$
|
137,199
|
|
|
$
|
85,642
|
|
|
$
|
100,664
|
|
|
$
|
28,524
|
|
|
$
|
2,375
|
|
|
$
|
1,217,435
|
|
Accumulated amortization
|
(231,053
|
)
|
|
(81,809
|
)
|
|
(101,128
|
)
|
|
(43,687
|
)
|
|
(73,110
|
)
|
|
(9,092
|
)
|
|
(992
|
)
|
|
(540,871
|
)
|
||||||||
Net
|
354,041
|
|
|
196,128
|
|
|
36,071
|
|
|
41,955
|
|
|
27,554
|
|
|
19,432
|
|
|
1,383
|
|
|
676,564
|
|
||||||||
Gross carrying amount:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Acquisitions— current year
|
3,194
|
|
|
45,271
|
|
|
—
|
|
|
—
|
|
|
4,000
|
|
|
—
|
|
|
1,100
|
|
|
53,565
|
|
||||||||
Acquisitions— prior year
|
(1,851
|
)
|
|
5,456
|
|
|
1,500
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,105
|
|
||||||||
Dispositions
|
(1,600
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,600
|
)
|
||||||||
Foreign exchange
|
(9,241
|
)
|
|
(3,237
|
)
|
|
—
|
|
|
(833
|
)
|
|
(1,220
|
)
|
|
(645
|
)
|
|
(3
|
)
|
|
(15,179
|
)
|
||||||||
Other
(1)
|
(2,682
|
)
|
|
(800
|
)
|
|
(14,800
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
570
|
|
|
(17,712
|
)
|
||||||||
Net change
|
(12,180
|
)
|
|
46,690
|
|
|
(13,300
|
)
|
|
(833
|
)
|
|
2,780
|
|
|
(645
|
)
|
|
1,667
|
|
|
24,179
|
|
||||||||
Accumulated amortization:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Amortization
|
(40,063
|
)
|
|
(32,718
|
)
|
|
(10,263
|
)
|
|
(5,128
|
)
|
|
(16,573
|
)
|
|
(2,508
|
)
|
|
(315
|
)
|
|
(107,568
|
)
|
||||||||
Dispositions
|
605
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
605
|
|
||||||||
Foreign exchange
|
4,192
|
|
|
590
|
|
|
—
|
|
|
453
|
|
|
1,152
|
|
|
471
|
|
|
1
|
|
|
6,859
|
|
||||||||
Other
(1)
|
2,682
|
|
|
800
|
|
|
15,550
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
19,032
|
|
||||||||
Net change
|
(32,584
|
)
|
|
(31,328
|
)
|
|
5,287
|
|
|
(4,675
|
)
|
|
(15,421
|
)
|
|
(2,037
|
)
|
|
(314
|
)
|
|
(81,072
|
)
|
||||||||
Balance as of September 30, 2014:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Gross carrying amount
|
572,914
|
|
|
324,627
|
|
|
123,899
|
|
|
84,809
|
|
|
103,444
|
|
|
27,879
|
|
|
4,042
|
|
|
1,241,614
|
|
||||||||
Accumulated amortization
|
(263,637
|
)
|
|
(113,137
|
)
|
|
(95,841
|
)
|
|
(48,362
|
)
|
|
(88,531
|
)
|
|
(11,129
|
)
|
|
(1,306
|
)
|
|
(621,943
|
)
|
||||||||
Net
|
$
|
309,277
|
|
|
$
|
211,490
|
|
|
$
|
28,058
|
|
|
$
|
36,447
|
|
|
$
|
14,913
|
|
|
$
|
16,750
|
|
|
$
|
2,736
|
|
|
$
|
619,671
|
|
(1)
|
Other includes net downs of fully amortized or impaired assets and
$0.6 million
of reclassifications of certain assets from indefinite-lived intangible assets.
|
|
Weighted-
Average
Life (years)
|
|
|
Revenue-generating contracts
|
5
|
Client/vendor relationships
|
8
|
Technology
|
3
|
Other
|
10
|
All categories
|
7
|
|
Concerts
|
|
Ticketing
|
|
Artist
Nation
|
|
Sponsorship
& Advertising
|
|
Total
|
||||||||||
|
(in thousands)
|
||||||||||||||||||
Balance as of December 31, 2013:
|
|
|
|
|
|
|
|
|
|
||||||||||
Goodwill
(1)
|
$
|
505,472
|
|
|
$
|
642,249
|
|
|
$
|
278,923
|
|
|
$
|
310,241
|
|
|
$
|
1,736,885
|
|
Accumulated impairment losses
(1)
|
(269,902
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(269,902
|
)
|
|||||
Net
|
235,570
|
|
|
642,249
|
|
|
278,923
|
|
|
310,241
|
|
|
1,466,983
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Acquisitions—current year
|
1,129
|
|
|
7,895
|
|
|
37,655
|
|
|
—
|
|
|
46,679
|
|
|||||
Acquisitions—prior year
|
2,549
|
|
|
—
|
|
|
(927
|
)
|
|
(624
|
)
|
|
998
|
|
|||||
Dispositions
|
—
|
|
|
(4,434
|
)
|
|
—
|
|
|
—
|
|
|
(4,434
|
)
|
|||||
Foreign exchange
|
(10,400
|
)
|
|
(5,813
|
)
|
|
(91
|
)
|
|
(9,245
|
)
|
|
(25,549
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Balance as of September 30, 2014:
|
|
|
|
|
|
|
|
|
|||||||||||
Goodwill
|
498,750
|
|
|
639,897
|
|
|
315,560
|
|
|
300,372
|
|
|
1,754,579
|
|
|||||
Accumulated impairment losses
|
(269,902
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(269,902
|
)
|
|||||
Net
|
$
|
228,848
|
|
|
$
|
639,897
|
|
|
$
|
315,560
|
|
|
$
|
300,372
|
|
|
$
|
1,484,677
|
|
(1)
|
The previously reported total balance has been reduced by
$13.0 million
due to the net down of fully impaired goodwill related to the Company’s non-core events business which was sold in 2008.
|
|
|
Nine Months Ended
September 30, |
||||||
|
|
2014
|
|
2013
|
||||
|
|
(in thousands)
|
||||||
Revenue
|
|
$
|
30,924
|
|
|
$
|
38,155
|
|
Operating income
|
|
$
|
12,892
|
|
|
$
|
19,449
|
|
Net income
|
|
$
|
10,133
|
|
|
$
|
15,108
|
|
Net income attributable to the common stockholders of the equity investee
|
|
$
|
10,081
|
|
|
$
|
15,050
|
|
Divested Asset
|
|
Segment
|
|
Gain
on Disposal of
Operating
Assets
|
|
Current
Assets
|
|
Noncurrent
Assets
|
|
Current
Liabilities
|
|
Noncurrent
Liabilities
|
||||||||||
|
|
(in thousands)
|
||||||||||||||||||||
2013 Divestiture
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
New York theatrical theater
|
|
Concerts
|
|
$
|
(28,880
|
)
|
|
$
|
—
|
|
|
$
|
35,785
|
|
|
$
|
—
|
|
|
$
|
3,636
|
|
|
|
|
|
|
September 30, 2014
|
|
December 31, 2013
|
||||
|
|
|
|
|
(in thousands)
|
||||||
Senior Secured Credit Facility:
|
|
|
|
|
|||||||
|
Term loan A, net of unamortized discount of $1.6 million and $2.0 million
|
|
|
|
|
||||||
|
|
at September 30, 2014 and December 31, 2013, respectively
|
|
$
|
106,254
|
|
|
$
|
111,578
|
|
|
|
Term loan B, net of unamortized discount of $12.7 million and
|
|
|
|
|
||||||
|
|
$14.4 million at September 30, 2014 and December 31, 2013, respectively
|
|
927,775
|
|
|
933,226
|
|
|||
|
Revolving credit facility
|
|
—
|
|
|
—
|
|
||||
7% Senior Notes due 2020, plus unamortized premium of $7.6 million
|
|
|
|
|
|||||||
|
and $8.6 million at September 30, 2014 and December 31, 2013, respectively
|
|
432,607
|
|
|
433,571
|
|
||||
5.375% Senior Notes due 2022
|
|
250,000
|
|
|
—
|
|
|||||
2.875% Convertible Senior Notes due 2027, net of unamortized discount of
|
|
|
|
|
|||||||
|
$7.6 million at December 31, 2013
|
|
—
|
|
|
212,415
|
|
||||
2.5% Convertible Senior Notes due 2019, net of unamortized discount of
|
|
|
|
|
|||||||
|
$20.5 million at September 30, 2014
|
|
254,490
|
|
|
—
|
|
||||
Other long-term debt
|
|
104,030
|
|
|
118,097
|
|
|||||
|
|
|
|
|
2,075,156
|
|
|
1,808,887
|
|
||
Less: current portion
|
|
47,947
|
|
|
278,403
|
|
|||||
|
|
|
|
|
|
|
|
||||
Total long-term debt, net
|
|
$
|
2,027,209
|
|
|
$
|
1,530,484
|
|
|
Three Months Ended
September 30, 2014 |
|
Nine Months Ended
September 30, 2014 |
||||
|
(in thousands)
|
||||||
Interest cost recognized relating to:
|
|
|
|
||||
Contractual interest coupon
|
$
|
1,719
|
|
|
$
|
2,444
|
|
Amortization of debt discount
|
1,089
|
|
|
1,465
|
|
||
Amortization of debt issuance costs
|
334
|
|
|
453
|
|
||
Total interest cost recognized on the notes
|
$
|
3,142
|
|
|
$
|
4,362
|
|
|
|
Fair Value
Measurement |
|
|
|
|
|
|
|
|
||||||||||
|
|
at
|
|
Fair Value Measurements Using
|
|
Total
|
||||||||||||||
Description
|
|
September 30
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Losses
|
||||||||||
|
|
(in thousands)
|
||||||||||||||||||
2014 Impairments
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Indefinite-lived intangible assets, net
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
5,963
|
|
2014 Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
5,963
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
|
(in thousands)
|
||||||||||||||
Other related-parties revenue
|
$
|
558
|
|
|
$
|
2,166
|
|
|
$
|
3,709
|
|
|
$
|
4,684
|
|
Other related-parties expenses
|
$
|
3,724
|
|
|
$
|
7,913
|
|
|
$
|
12,704
|
|
|
$
|
15,359
|
|
|
Live Nation
Entertainment, Inc.
Stockholders’ Equity
|
|
Noncontrolling
Interests
|
|
Total
Equity
|
|
Redeemable
Noncontrolling
Interests
|
||||||||
|
(in thousands)
|
|
(in thousands)
|
||||||||||||
Balance at December 31, 2013
|
$
|
1,409,228
|
|
|
$
|
180,578
|
|
|
$
|
1,589,806
|
|
|
$
|
61,041
|
|
Non-cash and stock-based compensation
|
31,531
|
|
|
—
|
|
|
31,531
|
|
|
—
|
|
||||
Common stock issued under stock plans, net of shares withheld for employee taxes
|
(14,891
|
)
|
|
—
|
|
|
(14,891
|
)
|
|
—
|
|
||||
Exercise of stock options
|
14,142
|
|
|
—
|
|
|
14,142
|
|
|
—
|
|
||||
Fair value of convertible debt conversion feature, net of issuance costs
|
21,444
|
|
|
—
|
|
|
21,444
|
|
|
—
|
|
||||
Acquisitions
|
—
|
|
|
3,343
|
|
|
3,343
|
|
|
—
|
|
||||
Purchases of noncontrolling interests
|
(1,721
|
)
|
|
6
|
|
|
(1,715
|
)
|
|
(4,291
|
)
|
||||
Sales of noncontrolling interests
|
(11,748
|
)
|
|
(158
|
)
|
|
(11,906
|
)
|
|
19,249
|
|
||||
Redeemable noncontrolling interests fair value adjustments
|
(3,702
|
)
|
|
—
|
|
|
(3,702
|
)
|
|
3,702
|
|
||||
Noncontrolling interests contributions
|
—
|
|
|
106
|
|
|
106
|
|
|
—
|
|
||||
Cash distributions
|
—
|
|
|
(21,971
|
)
|
|
(21,971
|
)
|
|
(1,993
|
)
|
||||
Other
|
—
|
|
|
(4,559
|
)
|
|
(4,559
|
)
|
|
—
|
|
||||
Comprehensive income (loss):
|
|
|
|
|
|
|
|
||||||||
Net income (loss)
|
95,649
|
|
|
19,175
|
|
|
114,824
|
|
|
(3,272
|
)
|
||||
Unrealized loss on cash flow hedges
|
(2
|
)
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
||||
Realized loss on cash flow hedges
|
48
|
|
|
—
|
|
|
48
|
|
|
—
|
|
||||
Change in funded status of defined benefit pension plan
|
30
|
|
|
—
|
|
|
30
|
|
|
—
|
|
||||
Foreign currency translation adjustments
|
(35,283
|
)
|
|
—
|
|
|
(35,283
|
)
|
|
—
|
|
||||
Balance at September 30, 2014
|
$
|
1,504,725
|
|
|
$
|
176,520
|
|
|
$
|
1,681,245
|
|
|
$
|
74,436
|
|
|
|
Gains and Losses On Cash Flow Hedges
|
|
Defined Benefit Pension Items
|
|
Foreign Currency Items
|
|
Total
|
||||||||
|
|
(in thousands)
|
||||||||||||||
Balance at December 31, 2013
|
|
$
|
(79
|
)
|
|
$
|
(611
|
)
|
|
$
|
(1,680
|
)
|
|
$
|
(2,370
|
)
|
Other comprehensive income (loss) before reclassifications
|
|
(2
|
)
|
|
30
|
|
|
(35,283
|
)
|
|
(35,255
|
)
|
||||
Amount reclassified from AOCI
|
|
48
|
|
|
—
|
|
|
—
|
|
|
48
|
|
||||
Net other comprehensive income (loss)
|
|
46
|
|
|
30
|
|
|
(35,283
|
)
|
|
(35,207
|
)
|
||||
Balance at September 30, 2014
|
|
$
|
(33
|
)
|
|
$
|
(581
|
)
|
|
$
|
(36,963
|
)
|
|
$
|
(37,577
|
)
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
|
(in thousands except share and per share data)
|
||||||||||||||
Net income attributable to common stockholders of Live Nation Entertainment, Inc.
|
$
|
105,163
|
|
|
$
|
43,774
|
|
|
$
|
95,649
|
|
|
$
|
38,665
|
|
Accretion of redeemable noncontrolling interests
|
(1,198
|
)
|
|
(265
|
)
|
|
(3,702
|
)
|
|
(424
|
)
|
||||
Net income available to common stockholders of Live Nation Entertainment, Inc.—basic
|
$
|
103,965
|
|
|
$
|
43,509
|
|
|
$
|
91,947
|
|
|
$
|
38,241
|
|
Convertible debt interest, net of tax
|
4,813
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Net income available to common stockholders of Live Nation Entertainment, Inc.—diluted
|
108,778
|
|
|
43,509
|
|
|
91,947
|
|
|
38,241
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Weighted average common shares—basic
|
199,261,810
|
|
|
196,396,704
|
|
|
198,612,221
|
|
|
192,792,286
|
|
||||
Effect of dilutive securities:
|
|
|
|
|
|
|
|
||||||||
Stock options, restricted stock and warrants
|
7,340,484
|
|
|
5,713,079
|
|
|
7,621,353
|
|
|
4,474,003
|
|
||||
Convertible senior notes
|
14,979,289
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Weighted average common shares—diluted
|
221,581,583
|
|
|
202,109,783
|
|
|
206,233,574
|
|
|
197,266,289
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Basic net income available to common stockholders of Live Nation Entertainment, Inc.
|
$
|
0.52
|
|
|
$
|
0.22
|
|
|
$
|
0.46
|
|
|
$
|
0.20
|
|
Diluted net income available to common stockholders of Live Nation Entertainment, Inc.
|
$
|
0.49
|
|
|
$
|
0.22
|
|
|
$
|
0.45
|
|
|
$
|
0.19
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||
|
(in thousands)
|
||||||||||
Options to purchase shares of common stock
|
5,116
|
|
|
3,703
|
|
|
5,243
|
|
|
6,386
|
|
Restricted stock awards—unvested
|
313
|
|
|
765
|
|
|
344
|
|
|
786
|
|
Conversion shares related to the convertible senior notes
|
—
|
|
|
8,105
|
|
|
7,930
|
|
|
8,105
|
|
Number of anti-dilutive potentially issuable shares excluded from diluted common shares outstanding
|
5,429
|
|
|
12,573
|
|
|
13,517
|
|
|
15,277
|
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
|
(in thousands)
|
||||||||||||||
Selling, general and administrative expenses
|
$
|
4,818
|
|
|
$
|
4,915
|
|
|
$
|
17,993
|
|
|
$
|
11,166
|
|
Corporate expenses
|
4,145
|
|
|
4,190
|
|
|
13,538
|
|
|
12,058
|
|
||||
Total
|
$
|
8,963
|
|
|
$
|
9,105
|
|
|
$
|
31,531
|
|
|
$
|
23,224
|
|
|
Concerts
|
|
Ticketing
|
|
Artist
Nation |
|
Sponsorship
& Advertising |
|
Other
|
|
Corporate
|
|
Eliminations
|
|
Consolidated
|
||||||||||||||||
|
|
|
|
|
|
|
(in thousands)
|
|
|
|
|
|
|
||||||||||||||||||
Three Months Ended September 30, 2014
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Revenue
|
$
|
1,925,462
|
|
|
$
|
386,131
|
|
|
$
|
130,935
|
|
|
$
|
114,614
|
|
|
$
|
792
|
|
|
$
|
—
|
|
|
$
|
(55,926
|
)
|
|
$
|
2,502,008
|
|
Direct operating expenses
|
1,658,028
|
|
|
187,548
|
|
|
75,642
|
|
|
13,534
|
|
|
(2,473
|
)
|
|
—
|
|
|
(55,760
|
)
|
|
1,876,519
|
|
||||||||
Selling, general and administrative expenses
|
186,415
|
|
|
113,483
|
|
|
35,400
|
|
|
13,098
|
|
|
1,280
|
|
|
—
|
|
|
—
|
|
|
349,676
|
|
||||||||
Depreciation and amortization
|
30,155
|
|
|
55,521
|
|
|
10,498
|
|
|
1,264
|
|
|
11
|
|
|
642
|
|
|
(166
|
)
|
|
97,925
|
|
||||||||
Loss (gain) on disposal of operating assets
|
(112
|
)
|
|
(1,584
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,696
|
)
|
||||||||
Corporate expenses
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
26,647
|
|
|
—
|
|
|
26,647
|
|
||||||||
Acquisition transaction expenses
|
1,109
|
|
|
695
|
|
|
247
|
|
|
—
|
|
|
—
|
|
|
282
|
|
|
—
|
|
|
2,333
|
|
||||||||
Operating income (loss)
|
$
|
49,867
|
|
|
$
|
30,468
|
|
|
$
|
9,148
|
|
|
$
|
86,718
|
|
|
$
|
1,974
|
|
|
$
|
(27,571
|
)
|
|
$
|
—
|
|
|
$
|
150,604
|
|
Intersegment revenue
|
$
|
48,737
|
|
|
$
|
690
|
|
|
$
|
6,499
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(55,926
|
)
|
|
$
|
—
|
|
Three Months Ended September 30, 2013
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Revenue
|
$
|
1,726,986
|
|
|
$
|
356,809
|
|
|
$
|
111,060
|
|
|
$
|
110,217
|
|
|
$
|
793
|
|
|
$
|
—
|
|
|
$
|
(43,629
|
)
|
|
$
|
2,262,236
|
|
Direct operating expenses
|
1,487,856
|
|
|
166,509
|
|
|
69,231
|
|
|
15,112
|
|
|
3,109
|
|
|
—
|
|
|
(43,086
|
)
|
|
1,698,731
|
|
|
Concerts
|
|
Ticketing
|
|
Artist
Nation |
|
Sponsorship
& Advertising |
|
Other
|
|
Corporate
|
|
Eliminations
|
|
Consolidated
|
||||||||||||||||
|
|
|
|
|
|
|
(in thousands)
|
|
|
|
|
|
|
||||||||||||||||||
Selling, general and administrative expenses
|
170,005
|
|
|
112,940
|
|
|
29,348
|
|
|
11,979
|
|
|
733
|
|
|
—
|
|
|
—
|
|
|
325,005
|
|
||||||||
Depreciation and amortization
|
32,821
|
|
|
49,150
|
|
|
10,736
|
|
|
(56
|
)
|
|
11
|
|
|
610
|
|
|
(543
|
)
|
|
92,729
|
|
||||||||
Loss (gain) on disposal of operating assets
|
(9,035
|
)
|
|
(27
|
)
|
|
2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(9,060
|
)
|
||||||||
Corporate expenses
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
26,442
|
|
|
—
|
|
|
26,442
|
|
||||||||
Acquisition transaction expenses
|
745
|
|
|
221
|
|
|
(57
|
)
|
|
—
|
|
|
—
|
|
|
1,443
|
|
|
—
|
|
|
2,352
|
|
||||||||
Operating income (loss)
|
$
|
44,594
|
|
|
$
|
28,016
|
|
|
$
|
1,800
|
|
|
$
|
83,182
|
|
|
$
|
(3,060
|
)
|
|
$
|
(28,495
|
)
|
|
$
|
—
|
|
|
$
|
126,037
|
|
Intersegment revenue
|
$
|
36,535
|
|
|
$
|
861
|
|
|
$
|
6,233
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(43,629
|
)
|
|
$
|
—
|
|
Nine Months Ended September 30, 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Revenue
|
$
|
3,760,118
|
|
|
$
|
1,111,592
|
|
|
$
|
282,653
|
|
|
$
|
230,905
|
|
|
$
|
2,377
|
|
|
$
|
—
|
|
|
$
|
(92,536
|
)
|
|
$
|
5,295,109
|
|
Direct operating expenses
|
3,145,174
|
|
|
543,408
|
|
|
164,960
|
|
|
31,593
|
|
|
(1,792
|
)
|
|
—
|
|
|
(90,977
|
)
|
|
3,792,366
|
|
||||||||
Selling, general and administrative expenses
|
503,221
|
|
|
339,385
|
|
|
95,222
|
|
|
37,263
|
|
|
2,915
|
|
|
—
|
|
|
—
|
|
|
978,006
|
|
||||||||
Depreciation and amortization
|
84,864
|
|
|
142,472
|
|
|
25,934
|
|
|
3,207
|
|
|
31
|
|
|
1,783
|
|
|
(1,559
|
)
|
|
256,732
|
|
||||||||
Loss (gain) on disposal of operating assets
|
(3,347
|
)
|
|
(1,701
|
)
|
|
34
|
|
|
—
|
|
|
—
|
|
|
37
|
|
|
—
|
|
|
(4,977
|
)
|
||||||||
Corporate expenses
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
73,538
|
|
|
—
|
|
|
73,538
|
|
||||||||
Acquisition transaction expenses
|
1,892
|
|
|
758
|
|
|
435
|
|
|
—
|
|
|
—
|
|
|
2,377
|
|
|
—
|
|
|
5,462
|
|
||||||||
Operating income (loss)
|
$
|
28,314
|
|
|
$
|
87,270
|
|
|
$
|
(3,932
|
)
|
|
$
|
158,842
|
|
|
$
|
1,223
|
|
|
$
|
(77,735
|
)
|
|
$
|
—
|
|
|
$
|
193,982
|
|
Intersegment revenue
|
$
|
81,771
|
|
|
$
|
1,150
|
|
|
$
|
9,615
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(92,536
|
)
|
|
$
|
—
|
|
Capital expenditures
|
$
|
24,647
|
|
|
$
|
59,791
|
|
|
$
|
1,503
|
|
|
$
|
579
|
|
|
$
|
6
|
|
|
$
|
5,464
|
|
|
$
|
—
|
|
|
$
|
91,990
|
|
|
Concerts
|
|
Ticketing
|
|
Artist
Nation |
|
Sponsorship
& Advertising |
|
Other
|
|
Corporate
|
|
Eliminations
|
|
Consolidated
|
||||||||||||||||
|
|
|
|
|
|
|
(in thousands)
|
|
|
|
|
|
|
||||||||||||||||||
Nine Months Ended September 30, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Revenue
|
$
|
3,433,527
|
|
|
$
|
1,019,771
|
|
|
$
|
261,070
|
|
|
$
|
221,604
|
|
|
$
|
2,377
|
|
|
$
|
—
|
|
|
$
|
(72,902
|
)
|
|
$
|
4,865,447
|
|
Direct operating expenses
|
2,870,584
|
|
|
481,592
|
|
|
169,563
|
|
|
35,287
|
|
|
(62
|
)
|
|
—
|
|
|
(71,381
|
)
|
|
3,485,583
|
|
||||||||
Selling, general and administrative expenses
|
466,840
|
|
|
326,799
|
|
|
71,862
|
|
|
32,626
|
|
|
2,119
|
|
|
—
|
|
|
—
|
|
|
900,246
|
|
||||||||
Depreciation and amortization
|
96,591
|
|
|
128,648
|
|
|
30,906
|
|
|
682
|
|
|
196
|
|
|
2,080
|
|
|
(1,521
|
)
|
|
257,582
|
|
||||||||
Loss (gain) on disposal of operating assets
|
(43,497
|
)
|
|
(47
|
)
|
|
681
|
|
|
—
|
|
|
7
|
|
|
—
|
|
|
—
|
|
|
(42,856
|
)
|
||||||||
Corporate expenses
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
68,909
|
|
|
—
|
|
|
68,909
|
|
||||||||
Acquisition transaction expenses
|
1,292
|
|
|
245
|
|
|
88
|
|
|
—
|
|
|
—
|
|
|
3,704
|
|
|
—
|
|
|
5,329
|
|
||||||||
Operating income (loss)
|
$
|
41,717
|
|
|
$
|
82,534
|
|
|
$
|
(12,030
|
)
|
|
$
|
153,009
|
|
|
$
|
117
|
|
|
$
|
(74,693
|
)
|
|
$
|
—
|
|
|
$
|
190,654
|
|
Intersegment revenue
|
$
|
63,502
|
|
|
$
|
1,842
|
|
|
$
|
7,558
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(72,902
|
)
|
|
$
|
—
|
|
Capital expenditures
|
$
|
38,517
|
|
|
$
|
62,145
|
|
|
$
|
483
|
|
|
$
|
653
|
|
|
$
|
—
|
|
|
$
|
182
|
|
|
$
|
—
|
|
|
$
|
101,980
|
|
|
Three Months Ended
September 30, |
|
%
Change |
|
Nine Months Ended
September 30, |
|
%
Change |
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|||||||||||
|
(in thousands)
|
|
|
|
(in thousands)
|
|
|
||||||||||||
Revenue
|
$
|
2,502,008
|
|
|
$
|
2,262,236
|
|
|
11%
|
|
$
|
5,295,109
|
|
|
$
|
4,865,447
|
|
|
9%
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Direct operating expenses
|
1,876,519
|
|
|
1,698,731
|
|
|
10%
|
|
3,792,366
|
|
|
3,485,583
|
|
|
9%
|
||||
Selling, general and administrative expenses
|
349,676
|
|
|
325,005
|
|
|
8%
|
|
978,006
|
|
|
900,246
|
|
|
9%
|
||||
Depreciation and amortization
|
97,925
|
|
|
92,729
|
|
|
6%
|
|
256,732
|
|
|
257,582
|
|
|
—
|
||||
Gain on disposal of operating assets
|
(1,696
|
)
|
|
(9,060
|
)
|
|
*
|
|
(4,977
|
)
|
|
(42,856
|
)
|
|
*
|
||||
Corporate expenses
|
26,647
|
|
|
26,442
|
|
|
1%
|
|
73,538
|
|
|
68,909
|
|
|
7%
|
||||
Acquisition transaction expenses
|
2,333
|
|
|
2,352
|
|
|
*
|
|
5,462
|
|
|
5,329
|
|
|
*
|
||||
Operating income
|
150,604
|
|
|
126,037
|
|
|
19%
|
|
193,982
|
|
|
190,654
|
|
|
2%
|
||||
Operating margin
|
6.0
|
%
|
|
5.6
|
%
|
|
|
|
3.7
|
%
|
|
3.9
|
%
|
|
|
||||
Interest expense
|
28,113
|
|
|
29,393
|
|
|
|
|
80,195
|
|
|
87,585
|
|
|
|
||||
Loss on extinguishment of debt
|
233
|
|
|
36,269
|
|
|
|
|
233
|
|
|
36,269
|
|
|
|
||||
Interest income
|
(864
|
)
|
|
(1,547
|
)
|
|
|
|
(2,676
|
)
|
|
(4,205
|
)
|
|
|
||||
Equity in losses (earnings) of nonconsolidated affiliates
|
(2,155
|
)
|
|
2,363
|
|
|
|
|
(5,921
|
)
|
|
(2,848
|
)
|
|
|
||||
Other expense (income), net
|
12,587
|
|
|
(5,269
|
)
|
|
|
|
11,081
|
|
|
2,237
|
|
|
|
||||
Income before income taxes
|
112,690
|
|
|
64,828
|
|
|
|
|
111,070
|
|
|
71,616
|
|
|
|
||||
Income tax expense (benefit)
|
(3,137
|
)
|
|
14,410
|
|
|
|
|
(482
|
)
|
|
26,370
|
|
|
|
||||
Net income
|
115,827
|
|
|
50,418
|
|
|
|
|
111,552
|
|
|
45,246
|
|
|
|
||||
Net income attributable to noncontrolling interests
|
10,664
|
|
|
6,644
|
|
|
|
|
15,903
|
|
|
6,581
|
|
|
|
||||
Net income attributable to common stockholders of Live Nation Entertainment, Inc.
|
$
|
105,163
|
|
|
$
|
43,774
|
|
|
|
|
$
|
95,649
|
|
|
$
|
38,665
|
|
|
|
*
|
Percentages are not meaningful.
|
|
Three Months Ended
September 30, |
|
Nine Months Ended
September 30, |
||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||
Concerts
(1)
|
|
|
|
|
|
|
|
||||
Total estimated events:
|
|
|
|
|
|
|
|
||||
North America
|
4,102
|
|
|
3,864
|
|
|
11,369
|
|
|
11,215
|
|
International
|
1,055
|
|
|
1,209
|
|
|
4,253
|
|
|
4,672
|
|
Total estimated events
|
5,157
|
|
|
5,073
|
|
|
15,622
|
|
|
15,887
|
|
Total estimated fans (rounded):
|
|
|
|
|
|
|
|
||||
North America
|
17,061,000
|
|
|
14,835,000
|
|
|
32,035,000
|
|
|
29,174,000
|
|
International
|
4,990,000
|
|
|
6,348,000
|
|
|
13,508,000
|
|
|
15,419,000
|
|
Total estimated fans
|
22,051,000
|
|
|
21,183,000
|
|
|
45,543,000
|
|
|
44,593,000
|
|
Ticketing
|
|
|
|
|
|
|
|
||||
Number of tickets sold (in thousands)
(2)
|
36,603
|
|
|
37,594
|
|
|
110,166
|
|
|
109,610
|
|
(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 number of fans is based on the days the fan was 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 promoted events in our owned or operated venues and in certain European territories where these tickets are reported as the events occur. The total number of tickets sold reported above for the
three
months ended
September 30, 2014
and
2013
excludes approximately
71 million
and
75 million
, respectively, and for the
nine
months ended
September 30, 2014
and
2013
excludes approximately
206 million
and
214 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.
|
|
Three Months Ended
September 30, |
|
%
Change |
|
Nine Months Ended
September 30, |
|
%
Change |
||||||||||||
|
2014
|
|
2013
|
|
|
|
2014
|
|
2013
|
|
|
||||||||
|
(in thousands)
|
|
|
|
(in thousands)
|
|
|
||||||||||||
Revenue
|
$
|
1,925,462
|
|
|
$
|
1,726,986
|
|
|
11%
|
|
$
|
3,760,118
|
|
|
$
|
3,433,527
|
|
|
10%
|
Direct operating expenses
|
1,658,028
|
|
|
1,487,856
|
|
|
11%
|
|
3,145,174
|
|
|
2,870,584
|
|
|
10%
|
||||
Selling, general and administrative expenses
|
186,415
|
|
|
170,005
|
|
|
10%
|
|
503,221
|
|
|
466,840
|
|
|
8%
|
||||
Depreciation and amortization
|
30,155
|
|
|
32,821
|
|
|
(8)%
|
|
84,864
|
|
|
96,591
|
|
|
(12)%
|
||||
Gain on disposal of operating assets
|
(112
|
)
|
|
(9,035
|
)
|
|
*
|
|
(3,347
|
)
|
|
(43,497
|
)
|
|
*
|
||||
Acquisition transaction expenses
|
1,109
|
|
|
745
|
|
|
*
|
|
1,892
|
|
|
1,292
|
|
|
*
|
||||
Operating income
|
$
|
49,867
|
|
|
$
|
44,594
|
|
|
12%
|
|
$
|
28,314
|
|
|
$
|
41,717
|
|
|
(32)%
|
Operating margin
|
2.6
|
%
|
|
2.6
|
%
|
|
|
|
0.8
|
%
|
|
1.2
|
%
|
|
|
||||
Adjusted operating income **
|
$
|
82,773
|
|
|
$
|
70,736
|
|
|
17%
|
|
$
|
117,279
|
|
|
$
|
100,182
|
|
|
17%
|
*
|
Percentages are not meaningful.
|
**
|
AOI is defined and reconciled to operating income (loss) below.
|
|
Three Months Ended
September 30, |
|
%
Change |
|
Nine Months Ended
September 30, |
|
%
Change |
||||||||||||
|
2014
|
|
2013
|
|
|
|
2014
|
|
2013
|
|
|
||||||||
|
(in thousands)
|
|
|
|
(in thousands)
|
|
|
||||||||||||
Revenue
|
$
|
386,131
|
|
|
$
|
356,809
|
|
|
8%
|
|
$
|
1,111,592
|
|
|
$
|
1,019,771
|
|
|
9%
|
Direct operating expenses
|
187,548
|
|
|
166,509
|
|
|
13%
|
|
543,408
|
|
|
481,592
|
|
|
13%
|
||||
Selling, general and administrative expenses
|
113,483
|
|
|
112,940
|
|
|
—
|
|
339,385
|
|
|
326,799
|
|
|
4%
|
||||
Depreciation and amortization
|
55,521
|
|
|
49,150
|
|
|
13%
|
|
142,472
|
|
|
128,648
|
|
|
11%
|
||||
Gain on disposal of operating assets
|
(1,584
|
)
|
|
(27
|
)
|
|
*
|
|
(1,701
|
)
|
|
(47
|
)
|
|
*
|
||||
Acquisition transaction expenses
|
695
|
|
|
221
|
|
|
*
|
|
758
|
|
|
245
|
|
|
*
|
||||
Operating income
|
$
|
30,468
|
|
|
$
|
28,016
|
|
|
9%
|
|
$
|
87,270
|
|
|
$
|
82,534
|
|
|
6%
|
Operating margin
|
7.9
|
%
|
|
7.9
|
%
|
|
|
|
7.9
|
%
|
|
8.1
|
%
|
|
|
||||
Adjusted operating income **
|
$
|
85,829
|
|
|
$
|
80,282
|
|
|
7%
|
|
$
|
232,400
|
|
|
$
|
217,440
|
|
|
7%
|
*
|
Percentages are not meaningful.
|
**
|
AOI is defined and reconciled to operating income (loss) below.
|
|
Three Months Ended
September 30, |
|
%
Change |
|
Nine Months Ended
September 30, |
|
%
Change |
||||||||||||
|
2014
|
|
2013
|
|
|
|
2014
|
|
2013
|
|
|
||||||||
|
(in thousands)
|
|
|
|
(in thousands)
|
|
|
||||||||||||
Revenue
|
$
|
130,935
|
|
|
$
|
111,060
|
|
|
18%
|
|
$
|
282,653
|
|
|
$
|
261,070
|
|
|
8%
|
Direct operating expenses
|
75,642
|
|
|
69,231
|
|
|
9%
|
|
164,960
|
|
|
169,563
|
|
|
(3)%
|
||||
Selling, general and administrative expenses
|
35,400
|
|
|
29,348
|
|
|
21%
|
|
95,222
|
|
|
71,862
|
|
|
33%
|
||||
Depreciation and amortization
|
10,498
|
|
|
10,736
|
|
|
(2)%
|
|
25,934
|
|
|
30,906
|
|
|
(16)%
|
||||
Loss on disposal of operating assets
|
—
|
|
|
2
|
|
|
*
|
|
34
|
|
|
681
|
|
|
*
|
||||
Acquisition transaction expenses
|
247
|
|
|
(57
|
)
|
|
*
|
|
435
|
|
|
88
|
|
|
*
|
||||
Operating income (loss)
|
$
|
9,148
|
|
|
$
|
1,800
|
|
|
*
|
|
$
|
(3,932
|
)
|
|
$
|
(12,030
|
)
|
|
67%
|
Operating margin
|
7.0
|
%
|
|
1.6
|
%
|
|
|
|
(1.4
|
)%
|
|
(4.6
|
)%
|
|
|
||||
Adjusted operating income **
|
$
|
21,880
|
|
|
$
|
12,655
|
|
|
73%
|
|
$
|
30,242
|
|
|
$
|
20,110
|
|
|
50%
|
*
|
Percentages are not meaningful.
|
**
|
AOI is defined and reconciled to operating income (loss) below.
|
|
Three Months Ended
September 30, |
|
%
Change |
|
Nine Months Ended
September 30, |
|
%
Change |
||||||||||||
|
2014
|
|
2013
|
|
|
|
2014
|
|
2013
|
|
|
||||||||
|
(in thousands)
|
|
|
|
(in thousands)
|
|
|
||||||||||||
Revenue
|
$
|
114,614
|
|
|
$
|
110,217
|
|
|
4%
|
|
$
|
230,905
|
|
|
$
|
221,604
|
|
|
4%
|
Direct operating expenses
|
13,534
|
|
|
15,112
|
|
|
(10)%
|
|
31,593
|
|
|
35,287
|
|
|
(10)%
|
||||
Selling, general and administrative expenses
|
13,098
|
|
|
11,979
|
|
|
9%
|
|
37,263
|
|
|
32,626
|
|
|
14%
|
||||
Depreciation and amortization
|
1,264
|
|
|
(56
|
)
|
|
*
|
|
3,207
|
|
|
682
|
|
|
*
|
||||
Operating income
|
$
|
86,718
|
|
|
$
|
83,182
|
|
|
4%
|
|
$
|
158,842
|
|
|
$
|
153,009
|
|
|
4%
|
Operating margin
|
75.7
|
%
|
|
75.5
|
%
|
|
|
|
68.8
|
%
|
|
69.0
|
%
|
|
|
||||
Adjusted operating income **
|
$
|
88,330
|
|
|
$
|
83,334
|
|
|
6%
|
|
$
|
163,114
|
|
|
$
|
154,253
|
|
|
6%
|
*
|
Percentages are not meaningful.
|
**
|
AOI is defined and reconciled to operating income (loss) below.
|
|
Adjusted
operating
income
(loss)
|
|
Non-cash
and stock-
based
compensation
expense
|
|
Loss (gain)
on disposal of
operating
assets
|
|
Depreciation
and
amortization
|
|
Acquisition
expenses
|
|
Operating
income
(loss)
|
||||||||||||
|
|
|
(in thousands)
|
|
|
|
|
||||||||||||||||
Three Months Ended September 30, 2014
|
|
|
|
|
|
|
|
|
|||||||||||||||
Concerts
|
$
|
82,773
|
|
|
$
|
1,754
|
|
|
$
|
(112
|
)
|
|
$
|
30,155
|
|
|
$
|
1,109
|
|
|
$
|
49,867
|
|
Ticketing
|
85,829
|
|
|
729
|
|
|
(1,584
|
)
|
|
55,521
|
|
|
695
|
|
|
30,468
|
|
||||||
Artist Nation
|
21,880
|
|
|
1,987
|
|
|
—
|
|
|
10,498
|
|
|
247
|
|
|
9,148
|
|
||||||
Sponsorship & Advertising
|
88,330
|
|
|
348
|
|
|
—
|
|
|
1,264
|
|
|
—
|
|
|
86,718
|
|
||||||
Other and Eliminations
|
1,819
|
|
|
—
|
|
|
—
|
|
|
(155
|
)
|
|
—
|
|
|
1,974
|
|
||||||
Corporate
|
(22,502
|
)
|
|
4,145
|
|
|
—
|
|
|
642
|
|
|
282
|
|
|
(27,571
|
)
|
||||||
Total
|
$
|
258,129
|
|
|
$
|
8,963
|
|
|
$
|
(1,696
|
)
|
|
$
|
97,925
|
|
|
$
|
2,333
|
|
|
$
|
150,604
|
|
Three Months Ended September 30, 2013
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Concerts
|
$
|
70,736
|
|
|
$
|
1,611
|
|
|
$
|
(9,035
|
)
|
|
$
|
32,821
|
|
|
$
|
745
|
|
|
$
|
44,594
|
|
Ticketing
|
80,282
|
|
|
2,922
|
|
|
(27
|
)
|
|
49,150
|
|
|
221
|
|
|
28,016
|
|
||||||
Artist Nation
|
12,655
|
|
|
174
|
|
|
2
|
|
|
10,736
|
|
|
(57
|
)
|
|
1,800
|
|
||||||
Sponsorship & Advertising
|
83,334
|
|
|
208
|
|
|
—
|
|
|
(56
|
)
|
|
—
|
|
|
83,182
|
|
||||||
Other and Eliminations
|
(3,592
|
)
|
|
—
|
|
|
—
|
|
|
(532
|
)
|
|
—
|
|
|
(3,060
|
)
|
||||||
Corporate
|
(22,252
|
)
|
|
4,190
|
|
|
—
|
|
|
610
|
|
|
1,443
|
|
|
(28,495
|
)
|
||||||
Total
|
$
|
221,163
|
|
|
$
|
9,105
|
|
|
$
|
(9,060
|
)
|
|
$
|
92,729
|
|
|
$
|
2,352
|
|
|
$
|
126,037
|
|
Nine Months Ended September 30, 2014
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Concerts
|
$
|
117,279
|
|
|
$
|
5,556
|
|
|
$
|
(3,347
|
)
|
|
$
|
84,864
|
|
|
$
|
1,892
|
|
|
$
|
28,314
|
|
Ticketing
|
232,400
|
|
|
3,601
|
|
|
(1,701
|
)
|
|
142,472
|
|
|
758
|
|
|
87,270
|
|
||||||
Artist Nation
|
30,242
|
|
|
7,771
|
|
|
34
|
|
|
25,934
|
|
|
435
|
|
|
(3,932
|
)
|
||||||
Sponsorship & Advertising
|
163,114
|
|
|
1,065
|
|
|
—
|
|
|
3,207
|
|
|
—
|
|
|
158,842
|
|
||||||
Other and Eliminations
|
(305
|
)
|
|
—
|
|
|
—
|
|
|
(1,528
|
)
|
|
—
|
|
|
1,223
|
|
||||||
Corporate
|
(60,000
|
)
|
|
13,538
|
|
|
37
|
|
|
1,783
|
|
|
2,377
|
|
|
(77,735
|
)
|
||||||
Total
|
$
|
482,730
|
|
|
$
|
31,531
|
|
|
$
|
(4,977
|
)
|
|
$
|
256,732
|
|
|
$
|
5,462
|
|
|
$
|
193,982
|
|
Nine Months Ended September 30, 2013
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Concerts
|
$
|
100,182
|
|
|
$
|
4,079
|
|
|
$
|
(43,497
|
)
|
|
$
|
96,591
|
|
|
$
|
1,292
|
|
|
$
|
41,717
|
|
Ticketing
|
217,440
|
|
|
6,060
|
|
|
(47
|
)
|
|
128,648
|
|
|
245
|
|
|
82,534
|
|
||||||
Artist Nation
|
20,110
|
|
|
465
|
|
|
681
|
|
|
30,906
|
|
|
88
|
|
|
(12,030
|
)
|
||||||
Sponsorship & Advertising
|
154,253
|
|
|
562
|
|
|
—
|
|
|
682
|
|
|
—
|
|
|
153,009
|
|
||||||
Other and Eliminations
|
(1,201
|
)
|
|
—
|
|
|
7
|
|
|
(1,325
|
)
|
|
—
|
|
|
117
|
|
||||||
Corporate
|
(56,851
|
)
|
|
12,058
|
|
|
—
|
|
|
2,080
|
|
|
3,704
|
|
|
(74,693
|
)
|
||||||
Total
|
$
|
433,933
|
|
|
$
|
23,224
|
|
|
$
|
(42,856
|
)
|
|
$
|
257,582
|
|
|
$
|
5,329
|
|
|
$
|
190,654
|
|
|
Nine Months Ended
September 30, |
||||||
|
2014
|
|
2013
|
||||
|
(in thousands)
|
||||||
Maintenance capital expenditures
|
$
|
46,531
|
|
|
$
|
38,489
|
|
Revenue generating capital expenditures
|
42,595
|
|
|
41,594
|
|
||
Total capital expenditures
|
$
|
89,126
|
|
|
$
|
80,083
|
|
|
Nine Months Ended
September 30, |
||||||
|
2014
|
|
2013
|
||||
|
(in thousands)
|
||||||
Cash provided by (used in):
|
|
|
|
||||
Operating activities
|
$
|
(13,832
|
)
|
|
$
|
264,538
|
|
Investing activities
|
$
|
(159,692
|
)
|
|
$
|
(42,490
|
)
|
Financing activities
|
$
|
251,253
|
|
|
$
|
83,700
|
|
Nine Months Ended
September 30, |
|
Year Ended December 31,
|
||||||||
2014
|
|
2013
|
|
2013
|
|
2012
|
|
2011
|
|
2010
|
1.87
|
|
1.54
|
|
*
|
|
*
|
|
*
|
|
*
|
*
|
For the years ended December 31,
2013
,
2012
,
2011
and
2010
, fixed charges exceeded earnings from continuing operations before income taxes and fixed charges by $6.0 million, $142.1 million, $104.4 million and $193.6 million, respectively.
|
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
|
|
|
10.1
|
|
First Supplemental Indenture, entered into as of August 27, 2014, among Live Nation Entertainment, Inc., Ticketstoday, LLC, the Existing Guarantors defined therein, and The Bank of New York Mellon Trust Company, N.A., as trustee.
|
|
|
|
|
|
|
|
|
|
X
|
10.2
|
|
Fifth Supplemental Indenture, entered into as of August 27, 2014, among Live Nation Entertainment, Inc., Ticketstoday, LLC, the Existing Guarantors defined therein, and The Bank of New York Mellon Trust Company, N.A., as trustee.
|
|
|
|
|
|
|
|
|
|
X
|
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
|
By:
|
CONNECTICUT AMPHITHEATER DEVELOPMENT CORPORATION, a general partner
|
By:
|
/s/: Jonathan Glover
|
Title: Vice President
|
|
By:
|
CONNECTICUT AMPHITHEATER DEVELOPMENT CORPORATION, a general partner
|
By:
|
/s/ Jonathan Glover
|
Title: Vice President
|
|
Date: October 30, 2014
|
|
|
|
By:
|
/s/: Michael Rapino
|
|
Michael Rapino
|
|
President and Chief Executive Officer
|
Date: October 30, 2014
|
|
|
|
By:
|
/s/ Kathy Willard
|
|
Kathy Willard
|
|
Chief Financial Officer
|
Date: October 30, 2014
|
|
|
|
By:
|
/s/ Michael Rapino
|
|
Michael Rapino
|
|
President and Chief Executive Officer
|
Date: October 30, 2014
|
|
|
|
By:
|
/s/ Kathy Willard
|
|
Kathy Willard
|
|
Chief Financial Officer
|