10-Q 1 lyv-20220331.htm 10-Q lyv-20220331
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
____________________________________ 
Form 10-Q
____________________________________ 
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2022
or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                  to                
Commission File Number 001-32601
____________________________________ 
LIVE NATION ENTERTAINMENT, INC.
(Exact name of registrant as specified in its charter)
____________________________________
Delaware 20-3247759
(State of Incorporation) (I.R.S. Employer Identification No.)

9348 Civic Center Drive
Beverly Hills, CA 90210
(Address of principal executive offices, including zip code)
(310) 867-7000
(Registrant’s telephone number, including area code)
______________________________________________________________ 
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common stock, $.01 Par Value Per ShareLYVNew York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.     x  Yes    ¨  No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).     Yes  x    No  ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large Accelerated FilerxAccelerated Filer ¨
Non-accelerated Filer¨Smaller Reporting Company 
Emerging Growth Company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).      Yes    x  No
On April 28, 2022, there were 228,063,872 outstanding shares of the registrant’s common stock, $0.01 par value per share, including 3,569,853 shares of unvested restricted and deferred stock awards and excluding 408,024 shares held in treasury.




LIVE NATION ENTERTAINMENT, INC.
INDEX TO FORM 10-Q
  Page
PART I—FINANCIAL INFORMATION
PART II—OTHER INFORMATION


GLOSSARY OF KEY TERMS
AOCIAccumulated other comprehensive income (loss)
AOIAdjusted operating income (loss)
FASBFinancial Accounting Standards Board
GAAPUnited States Generally Accepted Accounting Principles
GTVGross transaction value
Live Nation
Live Nation Entertainment, Inc. and subsidiaries
LNE
Live Nation Entertainment, Inc.
OCESA
OCESA Entretenimiento, S.A. de C.V. and certain other related subsidiaries of Corporación Interamericana de Entretenimiento, S.A.B. de C.V.
SECUnited States Securities and Exchange Commission
Ticketmaster
Our ticketing business



PART I—FINANCIAL INFORMATION
Item 1. Financial Statements
LIVE NATION ENTERTAINMENT, INC.
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
March 31,
2022
December 31,
2021
(in thousands)
ASSETS
Current assets
    Cash and cash equivalents$5,871,905 $4,884,729 
    Accounts receivable, less allowance of $50,225 and $50,491, respectively
1,210,007 1,066,573 
    Prepaid expenses963,227 654,894 
    Restricted cash3,114 3,063 
    Other current assets62,182 74,834 
Total current assets8,110,435 6,684,093 
Property, plant and equipment, net1,086,307 1,091,929 
Operating lease assets1,649,982 1,538,911 
Intangible assets
    Definite-lived intangible assets, net1,004,446 1,026,338 
    Indefinite-lived intangible assets368,943 369,028 
Goodwill2,604,811 2,590,869 
Long-term advances576,601 552,697 
Other long-term assets605,077 548,453 
Total assets$16,006,602 $14,402,318 
LIABILITIES AND EQUITY
Current liabilities
    Accounts payable, client accounts$1,804,348 $1,532,345 
    Accounts payable67,008 110,623 
    Accrued expenses1,511,446 1,645,906 
    Deferred revenue4,049,866 2,774,792 
    Current portion of long-term debt, net611,319 585,254 
    Current portion of operating lease liabilities139,050 123,715 
    Other current liabilities95,450 83,087 
Total current liabilities8,278,487 6,855,722 
Long-term debt, net5,146,681 5,145,484 
Long-term operating lease liabilities1,708,610 1,606,064 
Other long-term liabilities436,789 431,581 
Commitments and contingent liabilities
Redeemable noncontrolling interests581,652 551,921 
Stockholders' equity
    Common stock2,235 2,220 
    Additional paid-in capital2,888,551 2,897,695 
    Accumulated deficit(3,317,397)(3,327,737)
    Cost of shares held in treasury(6,865)(6,865)
    Accumulated other comprehensive loss(84,341)(147,964)
Total Live Nation stockholders' equity(517,817)(582,651)
Noncontrolling interests372,200 394,197 
Total equity(145,617)(188,454)
Total liabilities and equity$16,006,602 $14,402,318 


See Notes to Consolidated Financial Statements
2

LIVE NATION ENTERTAINMENT, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
 Three Months Ended
March 31,
 20222021
 (in thousands except share and per share data)
Revenue$1,802,808 $290,609 
Operating expenses:
Direct operating expenses1,071,022 133,966 
Selling, general and administrative expenses570,182 322,853 
Depreciation and amortization100,469 108,876 
Loss on disposal of operating assets1,665 138 
Corporate expenses32,410 27,948 
Operating income (loss)27,060 (303,172)
Interest expense66,773 70,830 
Interest income(7,564)(1,149)
Equity in earnings of nonconsolidated affiliates(4,288)(581)
Loss (gain) from sale of investments in nonconsolidated affiliates132 (55,933)
Other expense (income), net9,267 (6)
Loss before income taxes(37,260)(316,333)
Income tax expense11,696 6,389 
Net loss(48,956)(322,722)
Net income (loss) attributable to noncontrolling interests1,226 (15,529)
Net loss attributable to common stockholders of Live Nation$(50,182)$(307,193)
Basic and diluted net loss per common share available to common stockholders of Live Nation$(0.39)$(1.44)
Weighted average common shares outstanding:
Basic and diluted221,890,625 214,531,958 
Reconciliation to net loss available to common stockholders of Live Nation:
Net loss attributable to common stockholders of Live Nation
$(50,182)$(307,193)
Accretion of redeemable noncontrolling interests(35,714)(916)
Basic and diluted net loss available to common stockholders of Live Nation
$(85,896)$(308,109)

See Notes to Consolidated Financial Statements
3

LIVE NATION ENTERTAINMENT, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(UNAUDITED)
 Three Months Ended
March 31,
 20222021
 (in thousands)
Net loss$(48,956)$(322,722)
Other comprehensive income (loss), net of tax:
Unrealized gain on cash flow hedge23,969 15,096 
Realized loss on cash flow hedge1,902 1,916 
Foreign currency translation adjustments37,752 (13,219)
Comprehensive income (loss)14,667 (318,929)
Comprehensive income (loss) attributable to noncontrolling interests
1,226 (15,529)
Comprehensive income (loss) attributable to common stockholders of Live Nation
$13,441 $(303,400)

See Notes to Consolidated Financial Statements
4


LIVE NATION ENTERTAINMENT, INC.
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(UNAUDITED)


Live Nation Stockholders’ Equity
Common Shares IssuedCommon StockAdditional Paid-In CapitalAccumulated DeficitCost of Shares Held in TreasuryAccumulated Other Comprehensive LossNoncontrolling InterestsTotal EquityRedeemable Noncontrolling Interests
(in thousands, except share data)(in thousands)
Balances at December 31, 2021221,964,734 $2,220 $2,897,695 $(3,327,737)$(6,865)$(147,964)$394,197 $(188,454)$551,921 
Cumulative effect of change in accounting principle— — (95,986)60,522 — — — (35,464)— 
Non-cash and stock-based compensation— — 161,590 — — — — 161,590 — 
Common stock issued under stock plans, net of shares withheld for employee taxes552,669 5 (36,573)— — — — (36,568)— 
Exercise of stock options1,013,898 10 12,739 — — — — 12,749 — 
Acquisitions— — — — — — 399 399 5,654 
Purchases of noncontrolling interests— — (15,241)— — — (2,898)(18,139) 
Sales of noncontrolling interests— —  — — — (336)(336)— 
Redeemable noncontrolling interests fair value adjustments— — (35,714)— — — — (35,714)35,714 
Contributions received— — — — — — 6,212 6,212 25 
Cash distributions— — — — — — (31,808)(31,808)(7,158)
Other— — 41 — — — 1,783 1,824 (1,079)
Comprehensive income (loss):
Net income (loss)— — — (50,182)— — 4,651 (45,531)(3,425)
Unrealized gain on cash flow hedge— — — — — 23,969 — 23,969 — 
Realized loss on cash flow hedge— — — — — 1,902 — 1,902 — 
Foreign currency translation adjustments— — — — — 37,752 — 37,752 — 
Balances at March 31, 2022223,531,301 $2,235 $2,888,551 $(3,317,397)$(6,865)$(84,341)$372,200 $(145,617)$581,652 

See Notes to Consolidated Financial Statements
5

Live Nation Stockholders’ Equity
Common Shares IssuedCommon StockAdditional Paid-In CapitalAccumulated DeficitCost of Shares Held in TreasuryAccumulated Other Comprehensive IncomeNoncontrolling InterestsTotal EquityRedeemable Noncontrolling Interests
(in thousands, except share data)(in thousands)
Balances at December 31, 2020214,466,988 $2,145 $2,386,790 $(2,676,833)$(6,865)$(177,009)$338,020 $(133,752)$272,449 
Non-cash and stock-based compensation— — 40,017 — — — — 40,017 — 
Common stock issued under stock plans, net of shares withheld for employee taxes566,285 5 (19,949)— — — — (19,944)— 
Exercise of stock options994,273 10 25,784 — — — — 25,794 — 
Purchases of noncontrolling interests— — (500)— — —  (500) 
Sales of noncontrolling interests— — 161 — — — 8,868 9,029 — 
Redeemable noncontrolling interests fair value adjustments— — (916)— — — — (916)916 
Contributions received— — — — — — 1,722 1,722  
Cash distributions— — — — — — (4,477)(4,477)(1,139)
Other— —  — — —    
Comprehensive loss:
Net loss— — — (307,193)— — (7,687)(314,880)(7,842)
Unrealized gain on cash flow hedge— — — — — 15,096 — 15,096 — 
Realized loss on cash flow hedge— — — — — 1,916 — 1,916 
Foreign currency translation adjustments— — — — — (13,219)— (13,219)— 
Balances at March 31, 2021216,027,546 $2,160 $2,431,387 $(2,984,026)$(6,865)$(173,216)$336,446 $(394,114)$264,384 

See Notes to Consolidated Financial Statements
6

LIVE NATION ENTERTAINMENT, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
 Three Months Ended
March 31,
 20222021
 (in thousands)
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss$(48,956)$(322,722)
Reconciling items:
Depreciation50,760 56,975 
Amortization49,709 51,901 
Amortization of non-recoupable ticketing contract advances18,527 10,621 
Amortization of debt issuance costs and discounts4,114 9,196 
Non-cash compensation expense49,241 40,017 
Unrealized changes in fair value of contingent consideration10,904 (9,440)
Loss (gain) on sale of investments in nonconsolidated affiliates132 (53,899)
Other, net7,500 2,921 
Changes in operating assets and liabilities, net of effects of acquisitions and dispositions:
Decrease (increase) in accounts receivable(152,725)21,861 
Decrease (increase) in prepaid expenses and other assets(338,017)4,704 
Increase (decrease) in accounts payable, accrued expenses and other liabilities236,584 (39,044)
Increase in deferred revenue1,310,527 301,483 
Net cash provided by operating activities1,198,300 74,574 
CASH FLOWS FROM INVESTING ACTIVITIES
Advances of notes receivable(18,399)(10,784)
Collections of notes receivable6,709 884 
Investments made in nonconsolidated affiliates(26,243)(5,506)
Purchases of property, plant and equipment(62,525)(23,763)
Cash paid for acquisitions, net of cash acquired(13,962)(6,132)
Proceeds from sale of investments in nonconsolidated affiliates332 60,308 
Other, net(865)(4,899)
Net cash provided by (used in) investing activities(114,953)10,108 
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from long-term debt, net of debt issuance costs700 501,366 
Payments on long-term debt(12,784)(80,316)
Contributions from noncontrolling interests5,712 1,722 
Distributions to noncontrolling interests(38,966)(5,616)
Proceeds from exercise of stock options10,907 25,794 
Taxes paid for net share settlement of equity awards(36,568)(19,944)
Other, net(4,042)(5,989)
Net cash provided by (used in) financing activities(75,041)417,017 
Effect of exchange rate changes on cash, cash equivalents and restricted cash(21,079)(30,681)
Net increase in cash, cash equivalents, and restricted cash987,227 471,018 
Cash, cash equivalents and restricted cash at beginning of period4,887,792 2,546,439 
Cash, cash equivalents and restricted cash at end of period$5,875,019 $3,017,457 
See Notes to Consolidated Financial Statements
7

LIVE NATION ENTERTAINMENT, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)

NOTE 1—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 our 2021 Annual Report on Form 10-K filed with the SEC on February 23, 2022.
Seasonality
Our Concerts and Sponsorship & Advertising segments typically experience higher revenue and operating income in the second and third quarters as our outdoor venues and festivals are primarily used in or occur from May through October in certain 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 of events for sale to the public, which vary depending upon scheduling by our clients.
Cash flows from our Concerts segment typically have a slightly different seasonality as payments are often made for artist performance fees and production costs for tours in advance of the date the related event tickets go on sale. These artist fees and production costs are expensed when the event occurs. Once tickets for an event go on sale, we generally begin to receive payments from ticket sales in advance of when the event occurs. In the United States, this cash is largely associated with events in our owned or operated venues, notably amphitheaters, festivals, theaters and clubs. Internationally, this cash is from a combination of both events in our owned or operated venues, as well as events in third-party venues associated with our promoter’s share of tickets in allocation markets. We record these ticket sales as revenue when the event occurs. 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.
Cash, Cash Equivalents and Restricted Cash
Cash and cash equivalents include all highly liquid investments with an original maturity of three months or less. Our cash and cash equivalents include domestic and foreign bank accounts as well as interest-bearing accounts consisting primarily of bank deposits and money market accounts managed by third-party financial institutions. These balances are stated at cost, which approximates fair value.
Included in the March 31, 2022 and December 31, 2021 cash and cash equivalents balance is $1.5 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. 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. These amounts due to our clients are included in accounts payable, client accounts.
Restricted cash primarily consists of cash held in escrow accounts to fund capital improvements of certain leased or operated venues. The cash is held in these accounts pursuant to the related lease or operating agreement.
Cash held in interest-bearing operating accounts in many cases exceeds the Federal Deposit Insurance Corporation insurance limits. To reduce our credit risk, we monitor the credit standing of the financial institutions that hold our cash and cash equivalents; however, these balances could be impacted in the future if the underlying financial institutions fail. To date, we have experienced no loss or lack of access to our cash or cash equivalents; however, we can provide no assurances that access to our cash and cash equivalents will not be impacted in the future by adverse conditions in the financial markets.
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Nonconsolidated Affiliates
In general, nonconsolidated investments in which we own more than 20% of the common stock or otherwise exercise significant influence over an affiliate are accounted for under the equity method. We review the value of equity method investments and record impairment charges in the statements of operations for any decline in value that is determined to be other-than-temporary. If we obtain control of a nonconsolidated affiliate through the purchase of additional ownership interest or changes in the governing agreements, we remeasure our investment to fair value first and then apply the accounting guidance for business combinations. Any gain or loss resulting from the remeasurement to fair value is recorded as a component of other expense (income), net in the statements of operations. At March 31, 2022 and December 31, 2021, we had investments in nonconsolidated affiliates of $318.1 million and $293.6 million, respectively, included in other long-term assets on our consolidated balance sheets.
Income Taxes
Each reporting period, we evaluate the realizability of our deferred tax assets in each tax jurisdiction. As of March 31, 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 three months of 2022.
Accounting Pronouncements - Adopted
In August 2020, the FASB issued guidance that simplifies the accounting for convertible instruments and its application of the derivatives scope exception for contracts in an entity’s own equity. The new guidance reduces the number of accounting models that require separating embedded conversion features from convertible instruments. As a result, only conversion features accounted for under the substantial premium model and those that require bifurcation will be accounted for separately. For contracts in an entity’s own equity, the new guidance eliminates some of the current requirements for equity classification. The guidance also addresses how convertible instruments are accounted for in the diluted earnings per share calculation and requires enhanced disclosures about the terms of convertible instruments and contracts in an entity’s own equity. We adopted this guidance on January 1, 2022, using the modified retrospective method and recorded a cumulative-effect adjustment of $60.5 million as a reduction to accumulated deficit in the consolidated balance sheets. The impact of adoption also resulted in a reduction of additional paid-in capital of $96.0 million and increased our current portion of long-term debt, net and long-term debt, net by $14.7 million and $20.8 million, respectively, as a result of reversal of the separation of the convertible debt between debt and equity. The adoption did not have a material effect on our consolidated statements of operations or consolidated statements of cash flows.

NOTE 2—BUSINESS ACQUISITIONS
During December 2021, we completed the acquisition of an aggregate 51% interest in OCESA. This acquisition was accounted for as a business combination under the acquisition method of accounting. With the exception of OCESA, all other acquisitions were not material on an individual basis or in the aggregate.
OCESA Acquisition
Description of Transaction
On December 6, 2021, we completed our acquisition of an aggregate 51% of the capital stock of OCESA (the “Acquisition”) for $431.9 million, subject to certain adjustments. Upon closing of the Acquisition, we and Corporación Interamericana de Entretenimiento, S.A.B. de C.V. terminated the then pending International Chamber of Commerce arbitration in connection with the earlier termination of the purchase agreements, and any related litigation was also dismissed.
One of the most prominent live event businesses globally, OCESA has a robust business portfolio in ticketing, sponsorship, concession, merchandise, and venue operation across Mexico and Latin America. As part of the Acquisition, we also acquired an equity interest in OcesaSeitrack, OCESA’s booking and artist management joint venture; ICREA, one of Mexico’s special and corporate event specialists; and Centro Citibanamex, an exhibition and convention center in Mexico City. We expect the Acquisition to add value and growth to our Concerts, Ticketing and Sponsorship & Advertising segments.
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Recording of Assets Acquired and Liabilities Assumed
The following table summarizes the preliminary acquisition-date fair value of the identifiable assets acquired, liabilities assumed and noncontrolling interests including goodwill:
Initial Allocation
(in thousands)
Fair value of consideration transferred$431,943 
Fair value of redeemable noncontrolling interests280,000 
Fair value of noncontrolling interests7,000 
Fair value of pre-existing investment in nonconsolidated affiliates50,000 
Less: Preliminary recognized amounts of identifiable assets acquired and liabilities assumed
Cash and cash equivalents105,118 
Accounts receivable85,586 
Prepaid expenses33,060 
Other current assets658 
Property, plant and equipment25,318 
Operating lease assets67,142 
Intangible assets340,000 
Investments in nonconsolidated affiliates30,000 
Other long-term assets36,525 
Accounts payable, client accounts(12,566)
Accounts payable(13,344)
Accrued expenses(59,120)
Deferred revenue(144,557)
Current portion of operating lease liabilities(9,209)
Long-term operating lease liabilities(57,984)
Long-term deferred income taxes(102,279)
Goodwill$444,595 
Goodwill represents the future economic benefits arising from other assets acquired that could not be individually identified and separately recognized. 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. Of the total amount of preliminary goodwill recognized in connection with the Acquisition, none will be deductible for tax purposes. Preliminary goodwill of $45.7 million, $160.8 million and $238.1 million has been allocated to the Concerts, Ticketing and Sponsorship & Advertising segments, respectively, as a result of the Acquisition.
Below is a summary of the methodologies and significant assumptions used in estimating the fair value of intangible assets and noncontrolling interests.
Intangible assets — the preliminary fair value of the acquired intangible assets is currently being evaluated using commonly used valuation techniques. In estimating the fair value of the acquired intangible assets, we utilized the valuation
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methodology determined to be most appropriate for the individual intangible asset being valued. The acquired definite-lived intangible assets include the following:
Preliminary Estimated Fair Value
Preliminary Estimated Useful Lives (1)
(in thousands)(years)
Client/vendor relationships$102,000 
5 to 10
Revenue-generating contracts90,000 
4 to 10
Venue management and leaseholds107,000 10
Trademarks and naming rights41,000 
5 to 10
Total acquired intangible assets$340,000 
_____________________
(1) Determination of the preliminary estimated useful lives of the individual categories of intangible assets was based on the nature of the applicable intangible asset and the expected future cash flows to be derived from the intangible asset. Amortization of intangible assets with definite lives is recognized over the shorter of the respective lives of the agreement or the period of time the assets are expected to contribute to future cash flows.
Some of the more significant estimates and assumptions inherent in determining the fair value of the identifiable intangible assets are associated with forecasting cash flows and profitability. The primary assumptions used were generally based upon the present value of anticipated cash flows discounted at rates ranging from 12% to 13%. Estimated years of projected earnings generally follow the range of estimated remaining useful lives for each intangible asset class.
Noncontrolling interests — The preliminary fair value of the redeemable noncontrolling interests and noncontrolling interests of $280.0 million and $7.0 million, respectively, were estimated by applying the market approach. The fair value estimates are based on fair value of consideration transferred, adjustment of 20% to account for acquisition premium and adjustments of 10% to 20%to account for lack of marketability that market participants would consider when estimating the fair value of the individual noncontrolling interests.
Actual and Pro Forma Impact of Acquisition
The revenue, loss from continuing operations and net loss of OCESA that are included in our consolidated statements of operations are not material for the year ended December 31, 2021 since the Acquisition closed on December 6, 2021. 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 $12.5 million of acquisition transaction expenses relating to the Acquisition, of which $0.2 million and $0.6 million are included in selling, general and administrative expenses within our consolidated statements of operations for the three months ended March 31, 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. As we completed the Acquisition in the last month of the year ended December 31, 2021 and given the size of the Acquisition, the purchase accounting should be considered preliminary and is subject to revision based on final determinations of fair value and allocations of purchase price to the identifiable assets and liabilities acquired.

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NOTE 3—LONG-LIVED ASSETS
Property, Plant and Equipment, Net
Property, plant and equipment, net, consisted of the following:
March 31, 2022December 31, 2021
(in thousands)
    Land, buildings and improvements$1,353,171 $1,324,278 
    Computer equipment and capitalized software885,573 910,581 
    Furniture and other equipment446,734 411,403 
    Construction in progress123,978 173,865 
2,809,456 2,820,127 
    Less: accumulated depreciation1,723,149 1,728,198 
$1,086,307 $1,091,929 

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 three months ended March 31, 2022:
Client /
vendor
relationships
Revenue-
generating
contracts
Venue management and leaseholdsTrademarks
and
naming
rights
Technology
Other (1)
Total
(in thousands)
Balance as of December 31, 2021:
Gross carrying amount
$576,930 $593,258 $232,856 $180,865 $37,335 $10,414 $1,631,658 
Accumulated amortization
(178,725)(275,909)(46,929)(79,349)(18,375)(6,033)(605,320)
Net398,205 317,349 185,927 101,516 18,960 4,381 1,026,338 
Gross carrying amount:
Acquisitions—current year
1,003  9,978    10,981 
Acquisitions—prior year
(2)     (2)
Foreign exchange4,416 7,307 2,518 3,729 (10)12 17,972 
Other (2)
    (5,612)(540)(6,152)
Net change5,417 7,307 12,496 3,729 (5,622)(528)22,799 
Accumulated amortization:
Amortization
(18,106)(17,218)(6,046)(4,556)(2,959)(824)(49,709)
Foreign exchange(35)(759)269 (788)5 185 (1,123)
Other (2)
  (7)2 5,706 440 6,141 
Net change(18,141)(17,977)(5,784)(5,342)2,752 (199)(44,691)
Balance as of March 31, 2022:
Gross carrying amount
582,347 600,565 245,352 184,594 31,713 9,886 1,654,457 
Accumulated amortization
(196,866)(293,886)(52,713)(84,691)(15,623)(6,232)(650,011)
Net$385,481 $306,679 $192,639 $99,903 $16,090 $3,654 $1,004,446 

(1) Other primarily includes intangible assets for non-compete agreements.     
(2) Other primarily includes netdowns of fully amortized or impaired assets.



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The 2022 additions to definite-lived intangible assets from acquisitions have weighted-average lives as follows:
Weighted-
Average
Life (years)
Client/vendor relationships3
Venue management and leaseholds30
All categories28
Amortization of definite-lived intangible assets for the three months ended March 31, 2022 and 2021 was $49.7 million and $51.9 million, respectively. As acquisitions and dispositions occur in the future and the valuations of intangible assets for recent acquisitions are completed, amortization will vary.
Goodwill
The following table presents the changes in the carrying amount of goodwill in each of our reportable segments for the three months ended March 31, 2022:
ConcertsTicketingSponsorship
& Advertising
Total
(in thousands)
Balance as of December 31, 2021:
Goodwill $1,390,451 $930,064 $705,717 $3,026,232 
Accumulated impairment losses(435,363)  (435,363)
                 Net955,088 930,064 705,717 2,590,869 
Acquisitions—current year3,086   3,086 
Acquisitions—prior year6,164 5,864 (9,788)2,240 
Dispositions(1,792)  (1,792)
Foreign exchange(4,227)3,127 11,508 10,408 
Balance as of March 31, 2022:
Goodwill1,393,682 939,055 707,437 3,040,174 
Accumulated impairment losses(435,363)  (435,363)
                 Net$958,319 $939,055 $707,437 $2,604,811 
We are in various stages of finalizing our acquisition accounting for recent acquisitions, which may 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 our allocation between segments.
Investments in Nonconsolidated Affiliates
During the three months ended March 31, 2021, we sold certain investments in nonconsolidated affiliates for $60.3 million in cash plus $6.8 million in deferred purchase price consideration resulting in a gain on sale of investments in nonconsolidated affiliates of $55.9 million. During the three months ended March 31, 2022, there were no significant sales of investments in nonconsolidated affiliates.

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NOTE 4—LEASES
The significant components of operating lease expense are as follows:
Three Months Ended
March 31,
20222021
(in thousands)
Operating lease cost$63,761 $55,299 
Variable and short-term lease cost18,032 9,453 
Sublease income(970)(2,282)
Net lease cost$80,823 $62,470 
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. Contingent rent obligations are not included in the initial measurement of the lease asset or liability and are recorded as rent expense in the period that the contingency is resolved.
Supplemental cash flow information for our operating leases is as follows:
Three Months Ended
March 31,
20222021
(in thousands)
Cash paid for amounts included in the measurement of lease liabilities$66,232 $58,914 
Lease assets obtained in exchange for lease obligations, net of terminations$157,244 $6,771 
Future maturities of our operating lease liabilities at March 31, 2022 are as follows:
(in thousands)
April 1 - December 31, 2022$166,639 
2023247,013 
2024232,688 
2025216,901 
2026205,071 
Thereafter1,689,663 
Total lease payments2,757,975 
Less: Interest910,315 
Present value of lease liabilities$1,847,660 

The weighted average remaining lease term and weighted average discount rate for our operating leases are as follows:
March 31, 2022December 31, 2021
Weighted average remaining lease term (in years)13.813.2
Weighted average discount rate5.94 %6.10 %
As of March 31, 2022, we have additional operating leases that have not yet commenced, with total lease payments of $184.2 million. These operating leases, which are not included on our consolidated balance sheets, have commencement dates ranging from April 2022 to June 2030, with lease terms ranging from 2 to 27 years.

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NOTE 5—FAIR VALUE MEASUREMENTS
Recurring

The following table shows the fair value of our significant financial assets that are required to be measured at fair value on a recurring basis, which are classified on the consolidated balance sheets as cash and cash equivalents.

Estimated Fair Value
March 31, 2022
December 31, 2021
Level 1Level 2TotalLevel 1Level 2Total
(in thousands)
Assets:
    Cash equivalents$852,653 $ $852,653 $