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matters that are inherently uncertain. The following narrative describes these critical accounting estimates, the
judgments and assumptions and the effect if actual results differ from these assumptions.

Allowance for Doubtful Accounts
We evaluate the collectability of our accounts receivable based on a combination of factors. Generally, we

record specific reserves to reduce the amounts recorded to what we believe will be collected when a customer’s
account ages beyond typical collection patterns, or we become aware of a customer’s inability to meet its financial

We believe that the credit risk with respect to trade receivables is limited due to the large number and the
geographic diversification of our customers.

Long-lived Assets
Long-lived assets, such as property, plant and equipment, contractual advances and definite-lived intangible

assets are reviewed for impairment when events and circumstances indicate that depreciable and amortizable long-
lived assets might be impaired and the undiscounted cash flows estimated to be generated by those assets are less
than the carrying amount of those assets. When specific assets are determined to be unrecoverable, the cost basis of
the asset is reduced to reflect the current fair value.

We use various assumptions in determining the current fair market value of these assets, including future
expected cash flows and discount rates, as well as future salvage values and other fair value measures. For
intangibles related to artist rights, we use assumptions about future revenue and operating income for the rights
acquired. These projections are based on information about the artists’ past results and expectations about future
results. Our impairment loss calculations require us to apply judgment in estimating future cash flows, including
forecasting useful lives of the assets and selecting the discount rate that reflects the risk inherent in future cash flows.

If actual results are not consistent with our assumptions and judgments used in estimating future cash flows

and asset fair values, we may be exposed to future impairment losses that could be material to our results of operations.

Goodwill represents the excess of the purchase price over the fair value of identifiable net assets acquired in

business combinations. We review goodwill for impairment at least annually to determine the fair value of our
reporting units. The fair value of our reporting units is used to apply value to the net assets of each reporting unit. To
the extent that the carrying amount of net assets would exceed the fair value, an impairment charge may be required
to be recorded.

The process of evaluating goodwill for impairment involves the determination of the fair value of our
reporting units. We use both market multiples and discounted cash flow projections in developing fair values.
Inherent in such fair value determinations are certain judgments and estimates relating to future cash flows, our
interpretation of current economic indicators and market valuations, and assumptions about our strategic plans with
regard to our operations. Due to the uncertainties associated with such estimates, actual results could differ from
such estimates.

Revenue Recognition
Revenue from the promotion and production of an event is recognized after the performance occurs upon

settlement of the event. Revenue related to larger global tours is recognized after the performance occurs; however,
any profits related to these tours, primarily related to music tour production and tour management services, is
recognized after minimum revenue thresholds, if any, have been achieved. Revenue collected in advance of the
event is recorded as deferred revenue until the event occurs. Revenue collected from sponsorships and other
revenue, which is not related to any single event, is classified as deferred revenue and generally amortized over the
operating season or the term of the contract.

Revenue from our ticketing operations primarily consists of convenience and order processing fees charged at
the time a ticket for an event is sold and is recorded on a net basis (net of the face value of the ticket). For tickets
sold for events at our owned and/or operated venues in the U.S., and where we control the tickets internationally,
this revenue is recognized after the performance occurs upon settlement of the event. Revenue for these ticket fees
collected in advance of the event is recorded as deferred revenue until the event occurs. These fees will be shared
between our Ticketing segment and our Concerts segment. For tickets sold for events for third-party venues, this
revenue is recognized at the time of the sale and is recorded by our Ticketing segment.

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For multiple element contracts, we allocate consideration to the multiple elements based on the relative fair
values of each separate element which are determined based on prices charged for such items when sold on a stand-
alone basis. In cases where there is no objective and reliable evidence of the fair value of certain element(s) in an
arrangement, we account for the transaction as a single unit of accounting based on the FASB guidance for multiple-
element arrangements.

We account for taxes that are externally imposed on revenue producing transactions on a net basis, as a
reduction to revenue.

Litigation Accruals
We are currently involved in certain legal proceedings and, as required, have accrued our estimate of the

probable costs for the resolution of these claims. Management’s estimates used have been developed in consultation
with counsel and are based upon an analysis of potential results, assuming a combination of litigation and settlement
strategies. It is possible, however, that future results of operations for any particular period could be materially
affected by changes in our assumptions or the effectiveness of our strategies related to these proceedings.

Stock-Based Compensation
We follow the fair value recognition provisions of the FASB guidance for stock compensation. In accordance

with the FASB guidance for stock compensation, we continue to use the Black-Scholes option pricing model to
estimate the fair value of our stock options at the date of grant. Judgment is required in estimating the amount of
stock-based awards expected to be forfeited prior to vesting. If actual forfeitures differ significantly from these
estimates, non-cash compensation expense could be materially impacted.

Income Taxes
We account for income taxes using the liability method in accordance with the FASB guidance for income

taxes. Under this method, deferred tax assets and liabilities are determined based on differences between financial
reporting bases and tax bases of assets and liabilities and are measured using the enacted tax rates expected to apply
to taxable income in the periods in which the deferred tax asset or liability is expected to be realized or settled.
Deferred tax assets are reduced by valuation allowances if we believe it is more likely than not that some portion or
the entire asset will not be realized. As all earnings from our continuing foreign operations are permanently
reinvested and not distributed, our income tax provision does not include additional U.S. taxes on those foreign
operations. It is not practical to determine the amount of federal and state income taxes, if any, that might become
due in the event that the earnings were distributed.

The FASB guidance for income taxes prescribes a recognition threshold and a measurement attribute for the
financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For
those benefits to be recognized, a tax position must be more likely than not to be sustained upon examination by
taxing authorities. The amount recognized is measured as the largest amount of benefit that is greater than 50%
likely of being realized upon ultimate settlement.

Ratio of Earnings to Fixed Charges
The ratio of earnings to fixed charges is as follows:

Year Ended December 31,






* * * * *

* For the years ended December 31, 2010, 2009, 2008, 2007 and 2006, fixed charges exceeded earnings from
continuing operations before income taxes and fixed charges by $193.6 million, $116.5 million, $358.6
million, $45.8 million and $30.0 million, respectively.

The ratio of earnings to fixed charges was computed on a total company basis. Earnings represent income
from continuing operations before income taxes less equity in undistributed net income (loss) of nonconsolidated
affiliates plus fixed charges. Fixed charges represent interest, amortization of debt discount and expense and the
estimated interest portion of rental charges. Rental charges exclude variable rent expense for events in third-party
venues. Prior period calculations have been revised to conform to the current period presentation.

Required information is within Item 7. Management’s Discussion and Analysis of Financial Condition and

Results of Operations.

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Board of Directors

Irving Azoff
Chairman of the Board, Live Nation Entertainment

Mark Carleton
Senior Vice President, Liberty Media Corporation

Jonathan Dolgen
Principal, Wood River Ventures, LLC

Ariel Emanuel
Chief Executive Officer, WME Entertainment

Robert Ted Enloe, III
Managing General Partner, Balquita Partners, Ltd.

Jeffrey T. Hinson
President, YouPlus Media, LLC

James S. Kahan
AT&T Senior Executive Vice President – Corporate Development,

Gregory B. Maffei
President and Chief Executive Officer, Liberty Media Corporation

Randall T. Mays
Vice Chairman, Clear Channel Communications, Inc.

Michael Rapino
President and Chief Executive Officer, Live Nation Entertainment

Mark S. Shapiro
Chief Executive Officer, Dick Clark Productions

Executive and Other Key Officers

Michael Rapino
President and Chief Executive Officer

Irving Azoff
Executive Chairman

Ron Bension
Chief Executive Officer – House of Blues, Clubs and Theaters

Mark Campana
President – North America Concerts, Regions North

Brian Capo
Chief Accounting Officer

Arthur Fogel
Chief Executive Officer – Global Touring, Chairman – Global Music

John Hopmans
Executive Vice President – Mergers and Acquisitions and Strategic

Nathan Hubbard
Chief Executive Officer – Ticketing

Thomas Johansson
Chairman – International Concerts

Paul Latham
Chief Operating Officer – International

Simon Lewis
President – International Sponsorships

Alan Ridgeway
Chief Executive Officer – International

Bob Roux
President, North America Concerts, Regions South

Michael Rowles
General Counsel

Russell Wallach
President – North America Sponsorships

Kathy Willard
Chief Financial Officer

Corporate Information

Independent Registered Public Accounting Firm

Ernst & Young LLP
Los Angeles, California

Press and Investor Relations

Linda Bandov Pazin
Senior Vice President, Investor Relations
Live Nation Entertainment
9348 Civic Center Drive
Beverly Hills, California 90210
(310) 867-7000

Transfer Agent and Registrar

BNY Mellon Shareowner Services
P.O. Box 358015
Pittsburgh, Pennsylvania 15252-8015 or
480 Washington Boulevard
Jersey City, New Jersey 07310-1900
(877) 296-7874
(201) 680-6578 (for callers outside the United States)

Internet address:

Stock Listing

Live Nation Entertainment’s common stock is listed on the New York
Stock Exchange under the symbol “LYV.”

Annual Report on Form 10-K

Live Nation Entertainment’s Annual Report on Form 10-K for the
year ended December 31, 2010 is included in this annual report. The
exhibits accompanying the report are filed with the U.S. Securities
and Exchange Commission and can be accessed in the EDGAR
database at the SEC’s website,, or through the
“Investors” section of Live Nation Entertainment’s website, at We will provide these items to
stockholders upon request. Requests for any such exhibits should be
made to:

Live Nation Entertainment
Attention: Corporate Secretary
9348 Civic Center Drive
Beverly Hills, California 90210

Forward-Looking Statements

In accordance with the Private Securities Litigation Reform Act of
1995, Live Nation Entertainment notes that this annual report
contains forward-looking statements that involve risks and
uncertainties, including those relating to our company’s future
success and growth. Actual results may differ materially due to risks
and uncertainties as described in our filings with the U.S. Securities
and Exchange Commission. Live Nation Entertainment does not
intend to update these forward-looking statements.

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