| Information About Â鶹app's Operating Segments |
(17)ÌýÌýInformation About Â鶹app’s Operating Segments
The Company, through its ownership interests in subsidiaries and other companies, is primarily engaged in the media and entertainment industries. The Company identifies its reportable segments as (A)Ìýthose consolidated subsidiaries that represent 10% or more of its consolidated annual revenue, annual Adjusted OIBDA (as defined below) or total assets and (B)Ìýthose equity method affiliates whose share of earnings (losses) represent 10% or more of the Company’s annual pre-tax earnings (loss).
Â鶹app’s chief operating decision maker, the chief executive officer, evaluates performance and makes decisions about allocating resources to the Company’s reportable segments based on financial measures such as revenue, operating expenses (including team payments and other cost of revenue), selling, general and administrative expenses, and Adjusted OIBDA (as defined below).
For segment reporting purposes, the Company defines Adjusted OIBDA as revenue less operating expenses, and selling, general and administrative expenses excluding all stock-based compensation, separately reported litigation settlements and restructuring and impairment charges. The Company believes this measure is an important indicator of the operational strength and performance of its businesses, by identifying those items that are not directly a reflection of each business’ performance or indicative of ongoing business trends. In addition, this measure allows management to view operating results and perform analytical comparisons and benchmarking between businesses and identify strategies to improve performance. This measure of performance excludes depreciation and amortization, stock-based compensation, separately reported litigation settlements, restructuring, acquisition and impairment charges that are included in the measurement of operating income pursuant to GAAP. Accordingly, Adjusted OIBDA should be considered in addition to, but not as a substitute for, operating income, net income, cash flow provided by operating activities and other measures of financial performance prepared in accordance with GAAP. The Company generally accounts for intersegment sales and transfers as if the sales or transfers were to third parties, that is, at current prices.
FormulaÌý1, a reportable segment, is a global motorsports business that holds exclusive commercial rights with respect to the World Championship, an annual, approximately nine-month long, motor race-based competition in which teams compete for the Constructors’ Championship and drivers compete for the Drivers’ Championship. The World Championship takes place on various circuits with a varying number of events taking place in different countries around the world each season. FormulaÌý1 is responsible for the commercial exploitation and development of the World Championship as well as various aspects of its management and administration.
As of December 31, 2024, Live Nation met the Company’s reportable segment threshold for equity method affiliates. See note 7 for segment disclosures related to Live Nation.
The Company’s reportable segments are strategic business units that offer different products and services. They are managed separately because each segment requires different technologies, differing revenue sources and marketing strategies. The significant accounting policies of the segments are the same as those described in the Company’s summary of significant policies.
Performance Measures
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YearÌýendedÌýDecemberÌý31, 2024 |
​ |
​ |
ÌýÌýÌýÌý |
​ |
​ |
ÌýÌýÌýÌý |
Corporate and |
​ |
​ |
ÌýÌýÌýÌý |
​ |
ÌýÌýÌýÌý |
​ |
​ |
Formula One |
​ |
Other |
​ |
Eliminations |
​ |
Total |
​ |
|
​ |
​ |
amountsÌýinÌýmillions |
​ |
Revenue |
​ |
$ |
3,411 |
​ |
373 |
​ |
(131) |
​ |
3,653 |
​ |
Operating expenses |
​ |
​ |
​ |
Ìý |
​ |
​ |
​ |
Ìý |
​ |
Ìý |
Team payments |
​ |
​ |
(1,266) |
​ |
— |
​ |
— |
​ |
(1,266) |
​ |
Other cost of revenue |
​ |
​ |
(1,066) |
​ |
(194) |
​ |
38 |
​ |
(1,222) |
​ |
Other operating expenses |
​ |
​ |
— |
​ |
(105) |
​ |
92 |
​ |
(13) |
​ |
Total operating expenses |
​ |
​ |
(2,332) |
​ |
(299) |
​ |
130 |
​ |
(2,501) |
​ |
Selling, general and administrative, excluding stock-based compensation |
​ |
​ |
(288) |
​ |
(98) |
​ |
1 |
​ |
(385) |
​ |
Adjusted OIBDA |
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$ |
791 |
​ |
(24) |
​ |
— |
​ |
767 |
​ |
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YearÌýendedÌýDecemberÌý31, 2023 |
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​ |
ÌýÌýÌýÌý |
​ |
​ |
ÌýÌýÌýÌý |
Corporate and |
​ |
​ |
ÌýÌýÌýÌý |
​ |
ÌýÌýÌýÌý |
​ |
​ |
Formula One |
​ |
Other |
​ |
Eliminations |
​ |
Total |
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|
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amountsÌýinÌýmillions |
​ |
Revenue |
​ |
$ |
3,222 |
​ |
366 |
​ |
(16) |
​ |
3,572 |
​ |
Operating expenses |
​ |
​ |
​ |
Ìý |
​ |
​ |
​ |
Ìý |
​ |
Ìý |
Team payments |
​ |
​ |
(1,215) |
​ |
— |
​ |
— |
​ |
(1,215) |
​ |
Other cost of revenue |
​ |
​ |
(1,041) |
​ |
— |
​ |
16 |
​ |
(1,025) |
​ |
Other operating expenses |
​ |
​ |
— |
​ |
(274) |
​ |
— |
​ |
(274) |
​ |
Total operating expenses |
​ |
​ |
(2,256) |
​ |
(274) |
​ |
16 |
​ |
(2,514) |
​ |
Selling, general and administrative, excluding stock-based compensation |
​ |
​ |
(241) |
​ |
(126) |
​ |
— |
​ |
(367) |
​ |
Adjusted OIBDA |
​ |
$ |
725 |
​ |
(34) |
​ |
— |
​ |
691 |
​ |
​
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YearÌýendedÌýDecemberÌý31, 2022 |
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​ |
ÌýÌýÌýÌý |
​ |
​ |
ÌýÌýÌýÌý |
Corporate and |
ÌýÌýÌýÌý |
​ |
ÌýÌýÌýÌý |
​ |
​ |
Formula One |
​ |
Other |
​ |
Total |
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|
​ |
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amountsÌýinÌýmillions |
​ |
Revenue |
​ |
$ |
2,573 |
​ |
588 |
​ |
3,161 |
​ |
Operating expenses |
​ |
​ |
​ |
Ìý |
​ |
Ìý |
​ |
Ìý |
Team payments |
​ |
​ |
(1,157) |
​ |
— |
​ |
(1,157) |
​ |
Other cost of revenue |
​ |
​ |
(593) |
​ |
— |
​ |
(593) |
​ |
Other operating expenses |
​ |
​ |
— |
​ |
(434) |
​ |
(434) |
​ |
Total operating expenses |
​ |
​ |
(1,750) |
​ |
(434) |
​ |
(2,184) |
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Selling, general and administrative, excluding stock-based compensation |
​ |
​ |
(230) |
​ |
(135) |
​ |
(365) |
​ |
Adjusted OIBDA |
​ |
$ |
593 |
​ |
19 |
​ |
612 |
​ |
​
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Other Information
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DecemberÌý31,Ìý2024 |
​ |
DecemberÌý31,Ìý2023 |
​ |
​ |
ÌýÌýÌýÌý |
Total |
ÌýÌýÌýÌý |
Investments |
ÌýÌýÌýÌý |
Total |
ÌýÌýÌýÌý |
Investments |
ÌýÌýÌýÌý |
​ |
​ |
assets |
​ |
inÌýaffiliates |
​ |
assets |
​ |
inÌýaffiliates |
​ |
|
​ |
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amountsÌýinÌýmillions |
Formula One Group |
​ |
​ |
​ |
​ |
​ |
​ |
​ |
​ |
​ |
​ |
Formula 1 |
​ |
​ |
9,159 |
Ìý |
4 |
Ìý |
9,057 |
Ìý |
2 |
Ìý |
Corporate and other |
​ |
Ìý |
2,727 |
Ìý |
29 |
Ìý |
1,236 |
Ìý |
39 |
Ìý |
Intergroup elimination |
​ |
​ |
(127) |
​ |
— |
​ |
(26) |
​ |
— |
​ |
Total Formula One Group |
​ |
​ |
11,759 |
​ |
33 |
​ |
10,267 |
​ |
41 |
​ |
Â鶹app Live Group |
​ |
​ |
​ |
​ |
​ |
​ |
​ |
​ |
​ |
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Corporate and other |
​ |
​ |
1,223 |
​ |
458 |
​ |
1,162 |
​ |
333 |
​ |
Total Â鶹app Live Group |
​ |
​ |
1,223 |
​ |
458 |
​ |
1,162 |
​ |
333 |
​ |
Elimination |
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(34) |
​ |
— |
​ |
(3) |
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— |
​ |
Assets of discontinued operations |
​ |
​ |
— |
​ |
— |
​ |
29,901 |
​ |
— |
​ |
Consolidated Â鶹app |
​ |
$ |
12,948 |
Ìý |
491 |
Ìý |
41,327 |
Ìý |
374 |
Ìý |
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The following table provides a reconciliation of Adjusted OIBDA to Operating income (loss) and Earnings (loss) from continuing operations before income taxes:
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YearsÌýendedÌýDecemberÌý31, |
Ìý |
​ |
ÌýÌýÌýÌý |
2024 |
ÌýÌýÌýÌý |
2023 |
ÌýÌýÌýÌý |
2022 |
Ìý |
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​ |
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amounts in millions |
Ìý |
Adjusted OIBDA |
​ |
$ |
767 |
Ìý |
691 |
Ìý |
612 |
​ |
Stock-based compensation |
​ |
Ìý |
(34) |
Ìý |
(29) |
Ìý |
(28) |
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Depreciation and amortization |
​ |
Ìý |
(352) |
Ìý |
(406) |
Ìý |
(433) |
​ |
Impairment and acquisition costs |
​ |
​ |
(105) |
​ |
(1) |
​ |
(6) |
​ |
Operating income (loss) |
​ |
​ |
276 |
​ |
255 |
​ |
145 |
​ |
Interest expense |
​ |
Ìý |
(237) |
Ìý |
(248) |
Ìý |
(186) |
​ |
Share of earnings (losses) of affiliates, net |
​ |
Ìý |
228 |
Ìý |
157 |
Ìý |
104 |
​ |
Realized and unrealized gains (losses) on financial instruments, net |
​ |
Ìý |
(383) |
Ìý |
(167) |
Ìý |
524 |
​ |
Unrealized gains (losses) on intergroup interests |
​ |
​ |
— |
​ |
(68) |
​ |
19 |
​ |
Other, net |
​ |
Ìý |
92 |
Ìý |
46 |
Ìý |
101 |
​ |
Earnings (loss) from continuing operations before income taxes |
​ |
$ |
(24) |
Ìý |
(25) |
Ìý |
707 |
​ |
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Revenue by Geographic Area
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Revenue by geographic area based on the country of domicile is as follows:
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YearsÌýendedÌýDecemberÌý31, |
Ìý |
​ |
ÌýÌýÌýÌý |
2024 |
ÌýÌýÌýÌý |
2023 |
ÌýÌýÌýÌý |
2022 |
Ìý |
|
​ |
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amountsÌýinÌýmillions |
Ìý |
United States |
​ |
$ |
335 |
Ìý |
350 |
Ìý |
588 |
​ |
United Kingdom |
​ |
Ìý |
3,318 |
Ìý |
3,222 |
Ìý |
2,573 |
​ |
​ |
​ |
$ |
3,653 |
Ìý |
3,572 |
Ìý |
3,161 |
​ |
​
Long-lived Assets by Geographic Area
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|
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|
​ |
​ |
DecemberÌý31, |
Ìý |
​ |
ÌýÌýÌýÌý |
2024 |
ÌýÌýÌýÌý |
2023 |
Ìý |
|
​ |
​ |
amountsÌýinÌýmillions |
Ìý |
United States |
​ |
$ |
730 |
Ìý |
757 |
​ |
United Kingdom |
​ |
Ìý |
80 |
Ìý |
81 |
​ |
​ |
​ |
$ |
810 |
Ìý |
838 |
​ |
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