What changed in this filing

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Item 1. Financial Statements

2022-11-03 compared with 2022-08-04 · 103 added, 83 removed, 580 unchanged (24% of the section changed)

2 unchanged sentences

CONSOLIDATED BALANCE SHEETS

September 30,

2022 December 31,

46 unchanged sentences

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2022 2021 2022 2021

5 unchanged sentences

Depreciation and amortization 102,093 101,235 318,489 313,758

Loss (gain) on disposal of operating assets 1,065 ( 28 ) 2,730 110

Gain on disposal of operating assets ( 35,285 ) ( 1,148 ) ( 32,555 ) ( 1,038 )

Corporate expenses 66,720 44,649 158,377 100,195

3 unchanged sentences

Equity in losses (earnings) of nonconsolidated affiliates 14,283 ( 7,025 ) 8,040 ( 4,608 )

Loss (gain) from sale of investments in nonconsolidated affiliates ( 580 ) 993 ( 448 ) ( 52,947 )

Gain from sale of investments in nonconsolidated affiliates — ( 30,633 ) ( 448 ) ( 83,580 )

Other expense, net 7,960 12,441 22,846 19,903

2 unchanged sentences

Net income (loss) 397,403 86,867 576,824 ( 446,315 )

Net income (loss) attributable to noncontrolling interests 40,577 ( 14,795 ) 41,803 ( 30,324 )

Net income attributable to noncontrolling interests 36,001 39,989 77,804 9,665

Net income (loss) attributable to common stockholders of Live Nation $ 361,402 $ 46,878 $ 499,020 $ ( 455,980 )

17 unchanged sentences

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2022 2021 2022 2021

2 unchanged sentences

Other comprehensive income (loss), net of tax:

Unrealized gain (loss) on cash flow hedge 7,687 ( 5,788 ) 31,656 9,308

Realized loss on cash flow hedge 1,247 1,946 3,149 3,862

Unrealized gain on cash flow hedge 18,522 852 50,178 10,160

Realized loss (gain) on cash flow hedge ( 515 ) 1,991 2,634 5,853

Foreign currency translation adjustments ( 42,319 ) ( 12,008 ) ( 58,731 ) ( 10,001 )

10 unchanged sentences

(in thousands, except share data) (in thousands)

Balances at March 31, 2022 223,531,301 $ 2,235 $ 2,888,551 $ ( 3,317,397 ) $ ( 6,865 ) $ ( 84,341 ) $ 372,200 $ ( 145,617 ) $ 581,652

Balances at June 30, 2022 225,581,279 $ 2,256 $ 2,853,613 $ ( 3,129,597 ) $ ( 6,865 ) $ ( 129,571 ) $ 445,162 $ 34,998 $ 565,024

Non-cash and stock-based compensation — — 23,929 — — — — 23,929 —

10 unchanged sentences

Unrealized gain on cash flow hedge — — — — — 18,522 — 18,522 —

Realized loss on cash flow hedge — — — — — 1,247 — 1,247 —

Realized gain on cash flow hedge — — — — — ( 515 ) — ( 515 ) —

Foreign currency translation adjustments — — — — — ( 42,319 ) — ( 42,319 ) ( 151 )

Balances at June 30, 2022 225,581,279 $ 2,256 $ 2,853,613 $ ( 3,129,597 ) $ ( 6,865 ) $ ( 129,571 ) $ 445,162 $ 34,998 $ 565,024

Balances at September 30, 2022 227,137,581 $ 2,271 $ 2,852,112 $ ( 2,768,195 ) $ ( 6,865 ) $ ( 153,883 ) $ 473,116 $ 398,556 $ 598,981

See Notes to Consolidated Financial Statements

19 unchanged sentences

Foreign currency translation adjustments — — — — — ( 58,731 ) — ( 58,731 ) ( 151 )

Balances at June 30, 2022 225,581,279 $ 2,256 $ 2,853,613 $ ( 3,129,597 ) $ ( 6,865 ) $ ( 129,571 ) $ 445,162 $ 34,998 $ 565,024

Balances at September 30, 2022 227,137,581 $ 2,271 $ 2,852,112 $ ( 2,768,195 ) $ ( 6,865 ) $ ( 153,883 ) $ 473,116 $ 398,556 $ 598,981

See Notes to Consolidated Financial Statements

2 unchanged sentences

(in thousands, except share data) (in thousands)

Balances at March 31, 2021 216,027,546 $ 2,160 $ 2,431,387 $ ( 2,984,026 ) $ ( 6,865 ) $ ( 173,216 ) $ 336,446 $ ( 394,114 ) $ 264,384

Balances at June 30, 2021 216,388,477 $ 2,164 $ 2,433,462 $ ( 3,179,691 ) $ ( 6,865 ) $ ( 161,832 ) $ 333,159 $ ( 579,603 ) $ 250,767

Non-cash and stock-based compensation — — 27,318 — — — — 27,318 —

1 unchanged sentence

Exercise of stock options, net of shares withheld for option cost and employee taxes 70,011 1 2,238 — — — — 2,239 —

Sale of common shares 5,239,259 52 449,363 — — — — 449,415 —

Fair value of convertible debt conversion feature, net of issuance cost — — — — — — — — —

Acquisitions — — — — — — 7,117 7,117 230

Purchases of noncontrolling interests — — 4,275 — — — ( 2,577 ) 1,698 ( 1,698 )

Redeemable noncontrolling interests fair value adjustments — — ( 4,245 ) — — — — ( 4,245 ) 4,245

2 unchanged sentences

Other — — — — — — ( 331 ) ( 331 ) —

Comprehensive loss:

Net loss — — — ( 195,665 ) — — ( 4,026 ) ( 199,691 ) ( 10,769 )

Comprehensive income (loss):

Net income — — — 46,878 — — 30,135 77,013 9,854

Unrealized loss on cash flow hedge — — — — — 852 — 852 —

1 unchanged sentence

Foreign currency translation adjustments — — — — — ( 12,008 ) — ( 12,008 ) —

Balances at June 30, 2021 216,388,477 $ 2,164 $ 2,433,462 $ ( 3,179,691 ) $ ( 6,865 ) $ ( 161,832 ) $ 333,159 $ ( 579,603 ) $ 250,767

Balances at September 30, 2021 221,849,027 $ 2,218 $ 2,903,613 $ ( 3,132,813 ) $ ( 6,865 ) $ ( 170,997 ) $ 363,068 $ ( 41,776 ) $ 262,347

See Notes to Consolidated Financial Statements

6 unchanged sentences

Exercise of stock options, net of shares withheld for employee taxes 1,329,951 13 12,162 — — — — 12,175 —

Sale of common shares 5,239,259 52 449,363 — — — — 449,415 —

Acquisitions — — — — — — 7,117 7,117 828

5 unchanged sentences

Other — — — — — — ( 2,452 ) ( 2,452 ) —

Comprehensive loss:

Net loss — — — ( 502,858 ) — — ( 11,713 ) ( 514,571 ) ( 18,611 )

Comprehensive income (loss):

Net income (loss) — — — ( 455,980 ) — — 18,422 ( 437,558 ) ( 8,757 )

Unrealized gain on cash flow hedge — — — — — 10,160 — 10,160 —

1 unchanged sentence

Foreign currency translation adjustments — — — — — ( 10,001 ) — ( 10,001 ) —

Balances at June 30, 2021 216,388,477 $ 2,164 $ 2,433,462 $ ( 3,179,691 ) $ ( 6,865 ) $ ( 161,832 ) $ 333,159 $ ( 579,603 ) $ 250,767

Balances at September 30, 2021 221,849,027 $ 2,218 $ 2,903,613 $ ( 3,132,813 ) $ ( 6,865 ) $ ( 170,997 ) $ 363,068 $ ( 41,776 ) $ 262,347

See Notes to Consolidated Financial Statements

1 unchanged sentence

CONSOLIDATED STATEMENTS OF CASH FLOWS

Six Months Ended

Nine Months Ended

September 30,

(in thousands)

8 unchanged sentences

Unrealized changes in fair value of contingent consideration 23,601 ( 6,998 )

Equity in losses (earnings) of nonconsolidated affiliates, net of distributions 10,112 10,002

Equity in losses of nonconsolidated affiliates, net of distributions 31,420 6,396

Provision for uncollectible accounts receivable 40,736 ( 14,006 )

5 unchanged sentences

Increase in accounts payable, accrued expenses and other liabilities 1,536,196 1,323,448

Increase in deferred revenue 1,053,178 1,175,690

Increase (decrease) in deferred revenue ( 435,701 ) 551,059

Net cash provided by operating activities 928,357 1,024,697

15 unchanged sentences

Purchases and sales of noncontrolling interests, net ( 27,104 ) ( 3,273 )

Proceeds from sale of common stock, net of issuance costs — 449,415

Proceeds from exercise of stock options 35,698 30,322

21 unchanged sentences

Our Concerts and Sponsorship & Advertising segments typically experience higher revenue and operating income in the second and third quarters as our outdoor venue concerts and festivals primarily occur from May through October in most major markets.

In addition, the timing of when tickets are sold and the tours of top-grossing acts can impact comparability of quarterly results year over year, although annual results may not be impacted.

Our Ticketing segment revenue is impacted by fluctuations in the availability and timing of events for sale to the public, which vary depending upon scheduling by our clients.

6 unchanged sentences

Our 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.

We expect our seasonality trends to return to normal in 2022 as events in our major markets resumed late in the second quarter of 2021.

We expect our seasonality trends to evolve as we continue to expand our global operations.

Cash and Cash Equivalents

Included in the June 30, 2022 and December 31, 2021 cash and cash equivalents balance is $ 1.4 billion and $ 1.3 billion, respectively, of cash received that includes the face value of tickets sold on behalf of our ticketing clients and their share of service charges (“client cash”), which amounts are to be remitted to these clients.

Included in the September 30, 2022 and December 31, 2021 cash and cash equivalents balance is $ 1.3 billion of cash received that includes the face value of tickets sold on behalf of our ticketing clients and their share of service charges (“client cash”), which amounts are to be remitted to these clients.

We generally do not utilize client cash for our own financing or investing activities as the amounts are payable to our clients on a regular basis.

1 unchanged sentence

Each reporting period, we evaluate the realizability of our deferred tax assets in each tax jurisdiction.

As of June 30, 2022, we continued to maintain a full valuation allowance against our net deferred tax assets in certain jurisdictions due to cumulative pre-tax losses.

As a result of the valuation allowances, no tax benefits have been recognized for losses incurred, if any, in those tax jurisdictions for the first six months of 2022.

As of September 30, 2022, we continued to maintain a full valuation allowance against our net deferred tax assets in certain jurisdictions due to cumulative pre-tax losses.

As a result of the valuation allowances, no tax benefits have been recognized for losses incurred, if any, in those tax jurisdictions for the first nine months of 2022.

In August 2022, the Inflation Reduction Act (IRA) was enacted in the United States, which includes health care, clean energy, and income tax provisions.

The income tax provisions amend the Internal Revenue Code to include amongst other things a corporate alternative minimum tax starting in the 2023 tax year.

The Company is still assessing the impact due to lack of United States Treasury regulations;

however, the IRA is not expected to have a material impact on the Company's financial statements due to net operating losses and full valuation allowances for the United States, which is our most significant jurisdiction.

We will continue to monitor to ensure our financial results and related tax disclosures are in compliance with the IRA tax legislation.

Accounting Pronouncements - Adopted

47 unchanged sentences

The goodwill arising from the Acquisition consists largely of cost savings and new opportunities expected from combining the operations of Live Nation and OCESA.

The anticipated synergies primarily relate to growth in promotion and festivals as well as sponsorship opportunities.

The anticipated synergies primarily relate to growth in concert promotion, ticketing, and sponsorship opportunities.

Of the total amount of preliminary goodwill recognized in connection with the Acquisition, none will be deductible for tax purposes.

7 unchanged sentences

(in thousands) (years)

Client/vendor relationships $ 102,000 5 to 10

Client/vendor relationships $ 100,000 10

Revenue-generating contracts 90,000 4 to 10

Venue management and leaseholds 107,000 10

Trademarks and naming rights 41,000 5 to 10

Trademarks and naming rights 40,000 10

Total acquired intangible assets $ 337,000

10 unchanged sentences

Pro forma results of operations, assuming that OCESA had been acquired on January 1, 2020, for the years ended December 31, 2021 and 2020 were not material to our consolidated statements of operations.

We incurred a cumulative total of $ 13.1 million of acquisition transaction expenses relating to the Acquisition, of which $ 0.8 million and $ 0.7 million are included in selling, general and administrative expenses within our consolidated statements of operations for the six months ended June 30, 2022 and 2021, respectively.

We incurred a cumulative total of $ 13.2 million of acquisition transaction expenses relating to the Acquisition, of which $ 0.9 million and $ 0.8 million are included in selling, general and administrative expenses within our consolidated statements of operations for the nine months ended September 30, 2022 and 2021, respectively.

We are in the process of completing our purchase accounting in accordance with GAAP, whereby the purchase price is allocated to the assets acquired and liabilities assumed based upon their estimated fair values on the acquisition date.

3 unchanged sentences

Property, plant and equipment, net, consisted of the following:

June 30, 2022 December 31, 2021

September 30, 2022 December 31, 2021

(in thousands)

7 unchanged sentences

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, 2022:

The following table presents the changes in the gross carrying amount and accumulated amortization of definite-lived intangible assets for the nine months ended September 30, 2022:

relationships Revenue-

21 unchanged sentences

Net change ( 39,265 ) ( 29,717 ) ( 14,268 ) ( 12,887 ) 91 ( 1,252 ) ( 97,298 )

Balance as of June 30, 2022:

Balance as of September 30, 2022:

Gross carrying amount

5 unchanged sentences

(2) Other primarily includes netdowns of fully amortized or impaired assets.

Included in the current year acquisitions amounts above are definite-lived intangible assets primarily associated with the acquisitions of a sports management business and a venue management business, both located in the United States, as well as a festival promotion business located in Australia.

Included in the current year acquisitions amounts above are definite-lived intangible assets primarily associated with the acquisitions of a concert promotion business located in Germany, a ticketing business located in Thailand as well as a sports management business and a venue management business, both located in the United States.

The 2022 additions to definite-lived intangible assets from acquisitions have weighted-average lives as follows:

3 unchanged sentences

All categories 9

Amortization of definite-lived intangible assets for the three months ended June 30, 2022 and 2021 was $ 52.6 million and $ 48.6 million, and for the six months ended June 30, 2022 and 2021 was $ 102.3 million and $ 100.5 million, respectively.

Amortization of definite-lived intangible assets for the three months ended September 30, 2022 and 2021 was $ 48.1 million and $ 46.1 million, and for the nine months ended September 30, 2022 and 2021 was $ 150.4 million and $ 146.6 million, respectively.

As acquisitions and dispositions occur in the future and the valuations of intangible assets for recent acquisitions are completed, amortization will vary.

The following table presents the changes in the carrying amount of goodwill in each of our reportable segments for the six months ended June 30, 2022:

The following table presents the changes in the carrying amount of goodwill in each of our reportable segments for the nine months ended September 30, 2022:

Concerts Ticketing Sponsorship

9 unchanged sentences

Foreign exchange ( 33,833 ) ( 13,435 ) ( 19,229 ) ( 66,497 )

Balance as of June 30, 2022:

Balance as of September 30, 2022:

Goodwill 1,366,743 928,686 688,386 2,983,815

3 unchanged sentences

Investments in Nonconsolidated Affiliates

At June 30, 2022 and December 31, 2021, we had investments in nonconsolidated affiliates of $ 327.5 million and $ 293.6 million, respectively, included in other long-term assets on our consolidated balance sheets.

During the six months ended June 30, 2021, we sold certain investments in nonconsolidated affiliates for $ 61.6 million in cash plus $ 6.2 million in deferred purchase price consideration resulting in a gain on sale of investments in nonconsolidated affiliates of $ 52.9 million.

During the six months ended June 30, 2022, there were no significant sales of investments in nonconsolidated affiliates.

At September 30, 2022 and December 31, 2021, we had investments in nonconsolidated affiliates of $ 355.6 million and $ 293.6 million, respectively, included in other long-term assets on our consolidated balance sheets.

During the nine months ended September 30, 2021, we sold certain investments in nonconsolidated affiliates for $ 101.1 million in cash and noncash consideration resulting in a gain on sale of investments in nonconsolidated affiliates of $ 83.6 million.

During the nine months ended September 30, 2022, there were no significant sales of investments in nonconsolidated affiliates.

We entered into certain agreements whereby we received equity in the counterparty to those agreements primarily in exchange for providing sponsorship and marketing programs and support.

We recognized $ 3.8 million and $ 25.0 million of noncash additions to investments in nonconsolidated affiliates for the six months ended June 30, 2022 and 2021, respectively, which are included in other long-term assets on our consolidated balance sheets associated with these agreements.

We recognized $ 5.6 million and $ 25.0 million of noncash additions to investments in nonconsolidated affiliates for the nine months ended September 30, 2022 and 2021, respectively, which are included in other long-term assets on our consolidated balance sheets associated with these agreements.

NOTE 4— LEASES

1 unchanged sentence

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2022 2021 2022 2021

(in thousands)

Operating lease cost $ 71,750 $ 56,577 $ 135,511 $ 111,876

Variable and short-term lease cost 34,861 3,543 52,893 12,996

Operating lease expense $ 60,003 $ 56,662 $ 195,514 $ 168,538

Variable and short-term lease expense 64,548 44,552 117,441 57,548

Sublease income ( 1,627 ) ( 1,346 ) ( 3,901 ) ( 4,864 )

Net lease cost $ 105,307 $ 58,884 $ 186,130 $ 121,354

Net lease expense $ 122,924 $ 99,868 $ 309,054 $ 221,222

Many of our leases contain contingent rent obligations based on revenue, tickets sold or other variables, while others include periodic adjustments to rent obligations based on the prevailing inflationary index or market rental rates.

1 unchanged sentence

Supplemental cash flow information for our operating leases is as follows:

Six Months Ended

Nine Months Ended

September 30,

(in thousands)

1 unchanged sentence

Lease assets obtained in exchange for lease obligations, net of terminations $ 289,977 $ 79,703

Future maturities of our operating lease liabilities at June 30, 2022 are as follows:

Future maturities of our operating lease liabilities at September 30, 2022 are as follows:

(in thousands)

July 1 - December 31, 2022 $ 120,991

Remainder of 2022 $ 56,656

Thereafter 1,747,809

3 unchanged sentences

The weighted average remaining lease term and weighted average discount rate for our operating leases are as follows:

June 30, 2022 December 31, 2021

September 30, 2022 December 31, 2021

Weighted average remaining lease term (in years) 13.6 13.2

Weighted average discount rate 5.96 % 6.10 %

As of June 30, 2022, we have additional operating leases that have not yet commenced, with total lease payments of $ 219.8 million.

These operating leases, which are not included on our consolidated balance sheets, have commencement dates ranging from July 2022 to June 2030, with lease terms ranging from 1 to 27 years.

As of September 30, 2022, we have additional operating leases that have not yet commenced, with total lease payments of $ 201.8 million.

These operating leases, which are not included on our consolidated balance sheets, have commencement dates ranging from October 2022 to June 2030, with lease terms ranging from 2 to 40 years.

NOTE 5— FAIR VALUE MEASUREMENTS

1 unchanged sentence

Estimated Fair Value

June 30, 2022

September 30, 2022

December 31, 2021

11 unchanged sentences

Estimated Fair Value at

June 30, 2022 December 31, 2021

September 30, 2022 December 31, 2021

(in thousands)

8 unchanged sentences

NOTE 6— COMMITMENTS AND CONTINGENT LIABILITIES

As of June 30, 2022, we have non-cancelable contracts related to minimum performance payments with various artists, other event-related costs and nonrecoupable ticketing contract advances of approximately $ 3.9 billion.

As of September 30, 2022, we have non-cancelable contracts related to minimum performance payments with various artists, other event-related costs and nonrecoupable ticketing contract advances of approximately $ 3.9 billion.

Consumer Class Actions

18 unchanged sentences

We filed a notice of appeal of the class certification ruling in May 2021, and the plaintiff filed a cross-appeal shortly thereafter.

The hearing on the appeal will take place in November 2022.

Based on information presently known to management, we do not believe that a loss is probable of occurring at this time, and we believe that the potential liability, if any, will not have a material adverse effect on our financial position, cash flows or results of operations.

7 unchanged sentences

Pursuant to a February 14, 2022 order of the state Multidistrict Litigation Panel, matter 21-1033, the civil cases have been assigned to Judge Kristen Hawkins of the 11th District Court of Harris County, Texas, for oversight of pretrial matters under Texas’s rules governing multidistrict litigation.

Discovery is underway.

A confidential settlement was reached with the family of one of the deceased plaintiffs, and the family’s case was dismissed with prejudice against all defendants in August 2022.

We are currently unable to reliably predict the developments in, outcome of, and economic costs and other consequences of pending or future litigation related to these matters.

5 unchanged sentences

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, 2022:

The following table presents changes in the components of AOCI, net of taxes, for the nine months ended September 30, 2022:

Cash Flow Hedge Foreign Currency Items Total

5 unchanged sentences

Net other comprehensive income 52,812 ( 58,731 ) ( 5,919 )

Balance at June 30, 2022 $ 26,247 $ ( 155,818 ) $ ( 129,571 )

Balance at September 30, 2022 $ 44,254 $ ( 198,137 ) $ ( 153,883 )

Earnings Per Share

3 unchanged sentences

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2022 2021 2022 2021

6 unchanged sentences

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2022 2021 2022 2021

4 unchanged sentences

Restricted Stock

Subsequent to June 30, 2022, we granted 1.1 million shares of performance-based awards, which will vest and be settled in restricted shares under the Company’s stock incentive plan during the performance period.

The actual number of restricted shares earned will vest within three years if the performance criteria are met.

On July 1, 2022, we granted 1.1 million shares of market-based awards with a fair value of $ 75.3 million, which will vest and be settled in restricted common stock under the Company’s stock incentive plan upon attainment of certain stock price targets during the performance period.

The actual number of shares of restricted common stock earned will vest within three years if the market criteria are met.

NOTE 8— REVENUE RECOGNITION

The global COVID-19 pandemic significantly impacted revenue for our Concerts, Ticketing and Sponsorship & Advertising segments for the three and six ended June 30, 2021.

As we moved into 2022, more of our larger markets resumed shows and beginning in the second quarter of 2022, all markets re-opened without restrictions, with the exception of certain Asia-Pacific markets who continue to experience disruptions from COVID-19 variants.

Concerts revenue, including intersegment revenue, for the three and six months ended June 30, 2022 and 2021 are as follows:

The global COVID-19 pandemic significantly impacted revenue for our Concerts, Ticketing and Sponsorship & Advertising segments for the nine months ended September 30, 2021.

As we moved into 2022, more of our larger markets resumed shows and beginning in the second quarter of 2022, almost all markets had re-opened without restrictions, and we began to see the easing of restrictions in our Asia Pacific markets.

Concerts revenue, including intersegment revenue, for the three and nine months ended September 30, 2022 and 2021 are as follows:

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2022 2021 2022 2021

9 unchanged sentences

Any consideration not collected by the day of the event is typically received within three months after the event date.

Ticketing revenue, including intersegment revenue, for the three and six months ended June 30, 2022 and 2021 are as follows:

Ticketing revenue, including intersegment revenue, for the three and nine months ended September 30, 2022 and 2021 are as follows:

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2022 2021 2022 2021

17 unchanged sentences

Non-recoupable ticketing contract advances, excluding those amounts paid to support clients’ advertising costs, are fixed additional incentives occasionally paid by us to certain clients to secure the contract and are typically amortized over the life of the contract on a straight-line basis as a reduction to revenue.

At June 30, 2022 and December 31, 2021, we had ticketing contract advances of $ 76.7 million and $ 90.5 million, respectively, recorded in prepaid expenses and $ 92.7 million and $ 86.5 million, respectively, recorded in long-term advances on the consolidated balance sheets.

We amortized $ 21.9 million and $ 18.1 million for the three months ended June 30, 2022 and 2021, respectively, and $ 40.4 million and $ 28.7 million for the six months ended June 30, 2022 and 2021, respectively, related to non-recoupable ticketing contract advances.

At September 30, 2022 and December 31, 2021, we had ticketing contract advances of $ 110.1 million and $ 90.5 million, respectively, recorded in prepaid expenses and $ 85.5 million and $ 86.5 million, respectively, recorded in long-term advances on the consolidated balance sheets.

We amortized $ 15.7 million and $ 20.5 million for the three months ended September 30, 2022 and 2021, respectively, and $ 56.1 million and $ 49.2 million for the nine months ended September 30, 2022 and 2021, respectively, related to non-recoupable ticketing contract advances.

Sponsorship & Advertising

Sponsorship & Advertising revenue, including intersegment revenue, for the three and six months ended June 30, 2022 and 2021 are as follows:

Sponsorship & Advertising revenue, including intersegment revenue, for the three and nine months ended September 30, 2022 and 2021 are as follows:

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2022 2021 2022 2021

10 unchanged sentences

Revenue received in advance of the event or the sponsor receiving the benefit is recorded as deferred revenue or in other long-term liabilities if the date of the event is more than twelve months from the balance sheet date.

At June 30, 2022, we had contracted sponsorship agreements with terms greater than one year that had approximately $ 1.5 billion of revenue related to future benefits to be provided by us.

At September 30, 2022, we had contracted sponsorship agreements with terms greater than one year that had approximately $ 1.3 billion of revenue related to future benefits to be provided by us.

We expect to recognize, based on current projections, approximately 10 %, 36 %, 23 % and 31 % of this revenue in the remainder of 2022, 2023, 2024 and thereafter, respectively.

3 unchanged sentences

We had current deferred revenue of $ 2.8 billion and $ 1.8 billion at December 31, 2021 and 2020, respectively.

The table below summarizes the amount of the preceding December 31 current deferred revenue recognized during the three and six months ended June 30, 2022 and 2021:

The table below summarizes the amount of the preceding December 31 current deferred revenue recognized during the three and nine months ended September 30, 2022 and 2021:

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2022 2021 2022 2021

14 unchanged sentences

Accordingly, segment assets are not reported to, or used by, our management to allocate resources to or assess performance of our segments, and therefore, total segment assets and related depreciation and amortization have not been presented.

The following table presents the results of operations for our reportable segments for the three and six months ended June 30, 2022 and 2021:

The following table presents the results of operations for our reportable segments for the three and nine months ended September 30, 2022 and 2021:

Concerts Ticketing Sponsorship

1 unchanged sentence

(in thousands)

Three Months Ended June 30, 2022

Three Months Ended September 30, 2022

Revenue $ 5,292,594 $ 531,570 $ 343,029 $ ( 13,658 ) $ — $ 6,153,535

1 unchanged sentence

AOI $ 280,809 $ 163,176 $ 226,234 $ ( 3,420 ) $ ( 46,081 ) $ 620,718

Three Months Ended June 30, 2021

Three Months Ended September 30, 2021

Revenue $ 2,151,596 $ 374,237 $ 174,449 $ ( 1,560 ) $ — $ 2,698,722

1 unchanged sentence

AOI $ 59,578 $ 171,754 $ 111,211 $ ( 1,179 ) $ ( 35,684 ) $ 305,680

Six Months Ended June 30, 2022

Nine Months Ended September 30, 2022

Revenue $ 10,098,180 $ 1,587,274 $ 722,504 $ ( 17,441 ) $ — $ 12,390,517

1 unchanged sentence

AOI $ 354,587 $ 600,155 $ 474,238 $ ( 9,827 ) $ ( 109,797 ) $ 1,309,356

Six Months Ended June 30, 2021

Nine Months Ended September 30, 2021

Revenue $ 2,677,970 $ 646,560 $ 241,657 $ ( 910 ) $ — $ 3,565,277

1 unchanged sentence

AOI $ ( 99,010 ) $ 208,418 $ 127,755 $ ( 4,624 ) $ ( 68,951 ) $ 163,588

The following table sets forth the reconciliation of consolidated AOI to operating income (loss) for the three and six months ended June 30, 2022 and 2021:

Three Months Ended June 30, Six Months Ended June 30,

The following table sets forth the reconciliation of consolidated AOI to operating income (loss) for the three and nine months ended September 30, 2022 and 2021:

Three Months Ended September 30, Nine Months Ended September 30,

2022 2021 2022 2021

4 unchanged sentences

Depreciation and amortization 102,093 101,235 318,489 313,758

Loss (gain) on sale of operating assets 1,065 ( 28 ) 2,730 110

Gain on sale of operating assets ( 35,285 ) ( 1,148 ) ( 32,555 ) ( 1,038 )

Stock-based compensation expense 24,437 27,318 86,178 80,165

1 unchanged sentence

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements