Index Company Overview Assets Liabilities Net Worth Income & Expenses Ratios Risk Factors Company Overview Live Nation Entertainment is a concert promotion company and is the largest live entertainment company in the world. They face competition from other promoters and entertainment companies such as AEG, but this hardly has any effect on their popularity. Live Nation has nearly 580 million fans in 40 different countries around the world and has access to 220 venues that include the popular House of Blues and Fillmore's in the United States. Live Nation is not just a promoter. They also own artist management companies and a ticket sales company, Ticketmaster. According to their Sec – 10k, their strategy is to sell more tickets which in turn will increase revenue from live shows, as well as get more sponsorships and organize more live shows. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an original essay Live Nation is headquartered and offices in Beverly Hills, California. It was incorporated in Delaware on August 2, 2005 to receive liabilities and assets from Clear Channel Communications. It then split from Clear Channel in December of that year and became known as Live Nation. In January 2010, Live Nation merged with Ticketmaster and became known as Live Nation Entertainment. Live Nation operates in financial districts. Live Nation operates in three major reportable segments that make up the live entertainment industry. These include: live music events (concerts, festivals, etc.), venue operations and management, sponsorship/advertising and ticketing services. The reportable live music segment includes concerts, operations management and music festivals and generated 76.3%/$7.9 billion of total revenues. Revenue was generated from the volume of ticket sales, number of concerts held, revenue from concessions, ticket resale, sponsorships, festivals, camping passes, etc. The sponsorship and advertising segment accounted for 4.3%/$45 million of total revenue. The highest revenue was seen in the second and third quarters because the main sponsorship revenue comes from festivals, which primarily take place during the second and third quarters of the fiscal year. Ticket sales accounted for 20.7%/$2.1 billion of total revenue. Tickets were sold through websites, phone apps, call centers and outlets, and 292 million were sold through Ticketmaster. They are controlled by Ernst and Young, based in Los Angeles, California. Assets On their balance sheet, Live Nation reports numbers in the thousands. The first thing reported is cash and cash equivalents. Their main sources of short-term financing are cash flows from operations and borrowings. The main long-term cash flows are cash flows from operations and long-term borrowings. The cash was used for purchases, sales, acquisitions and expenses. On the balance sheet, it reflects cash and cash equivalents of $1.8 billion. The balance of cash and cash equivalents is $769.4 million and $591 million of cash received which includes the face value of tickets sold. They also recognize a credit that is reported as less their allowances of $32,755 and $29,634 from 2016 and 2017, prepaid expenses of $546,713 and other assets (inventory, etc.) of $55,403 bringing their total current assets to $3,152. 742. For plant activities, theyrecognize land, buildings and improvements of $955,937 in 2017, computer equipment of $610,924, furniture and other equipment of $312,962, and construction of $133,906 bringing the total to $2,013,729. They have accumulated depreciation of $ ($1,127,793) which brings the plant's assets to $885,936. Finally, Live Nation recognizes intangible assets. These intangible assets include net defined intangible assets of $729,265 and indefinite intangible assets of $369,023. They also have goodwill of $1,754,589. Anything combined brings total assets to $7,505,263. Liabilities Live Nation has accounts payable of $948,637, a 77% increase over 2016, accounts payable of $85,666, accrued expenses of $1,109,246, deferred revenue of $925,220, net of long-term current debt of $347,593 and other current liabilities of $160,638, bringing the total to $3,577,000. Since they are all part of current liabilities, they must be paid within the year. Long-term liabilities include net long-term debt of $1,952,366, deferred income taxes of $137,635, and other long-term liabilities of $174,391. shares with a par value of $0.01 totaling $2,069, an additional paid-in capital of $2,374,006, losses of $(1,079,472) in the accumulated deficit, $(6,865) in the cost of shares held in the treasury and other accumulated losses of $ ($108,542). This brings the total net worth plus minority interests to $1,418,144 and the combined total of liabilities and net worth to $7,505,263. Revenue and Expenses Total revenue for the year ended December 31, 2017 was $10,337,448, the highest of all time. Concerts, advertising and ticketing recorded double-digit growth. Overall revenues increased $2 billion, or 23 percent, compared to 2016. The concert segment saw the largest revenue increase at $1.6 billion, a 25 percent increase compared to 2016. Attendance concerts grew by 21% and festival attendance by 14%. Sponsorship and advertising saw revenue increase by $67.5 million, an 18 percent increase over 2016. Tickets increased $315.9 million, a 17 percent increase over 2016. The operating income was $91,397. The concert segment operates year-round but brings in higher revenue during the fiscal second and third quarters. Revenues and costs are recognized when the event occurs. In the box office, if it is not a Live Nation event, revenue is recognized when the ticket is sold. If it is a Live Nation event, revenue is recognized when the event occurs. Operating expenses include; direct operating expenses of $7,748,791 (an increase of $1,100,00 over 2016), selling and administrative expenses of $1,907,723, depreciation and amortization of $455,534, a loss on operating activities of $(969), and corporate expenses of $134,972. Direct operating expenses include the cost incurred by the artist to perform, the cost to be attributed to production expenses and marketing expenses. They have an interest expense of $106,722 and a loss on debt repayment of $1,048. They suffered a net income loss of $(7,774) and an overall income loss of $(75,939). They also had to resolve a legal dispute, and as a result, the operation fell by $1,100,000. They use a multi-step income statement. Live Nation employs 8,800 full-time employees worldwide. There are 5,700 from North America and 3,100 international. They employ 8,600 in the operations department and 200 in the business department. They also employ seasonal and part-time employees for concerts and festivals. There are usually 12,500 seasonal and part-time employees, but in 2017 they employed.