Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 04, 2020 | Jun. 30, 2019 | |
Class of Stock [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-16131 | ||
Entity Registrant Name | WORLD WRESTLING ENTERTAINMENT, INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 04-2693383 | ||
Entity Address, Address Line One | 1241 East Main Street | ||
Entity Address, City or Town | Stamford | ||
Entity Address, State or Province | CT | ||
Entity Address, Postal Zip Code | 06902 | ||
City Area Code | 203 | ||
Local Phone Number | 352-8600 | ||
Title of 12(b) Security | Class A Common Stock, par value $0.01 per share | ||
Trading Symbol | WWE | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 3,121,938,621 | ||
Entity Central Index Key | 0001091907 | ||
Amendment Flag | false | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2019 | ||
Common Class A [Member] | |||
Class of Stock [Line Items] | |||
Entity Common Stock, Shares Outstanding (in Shares) | 46,211,631 | ||
Common Class B [Member] | |||
Class of Stock [Line Items] | |||
Entity Common Stock, Shares Outstanding (in Shares) | 31,099,011 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Consolidated Statements Of Operations [Abstract] | |||
Net revenues | $ 960,442 | $ 930,160 | $ 800,959 |
Operating expenses | 638,199 | 609,182 | 538,525 |
Marketing and selling expenses | 84,713 | 95,985 | 82,837 |
General and administrative expenses | 86,893 | 85,446 | 77,969 |
Depreciation and amortization | 34,127 | 25,069 | 26,050 |
Operating income | 116,510 | 114,478 | 75,578 |
Interest expense | 26,121 | 15,405 | 14,736 |
Other income, net | 4,289 | 6,964 | 3,218 |
Income before income taxes | 94,678 | 106,037 | 64,060 |
Provision for income taxes | 17,617 | 6,449 | 31,420 |
Net income | $ 77,061 | $ 99,588 | $ 32,640 |
Earnings per share: basic | $ 0.99 | $ 1.28 | $ 0.43 |
Earnings per share: diluted | $ 0.85 | $ 1.12 | $ 0.42 |
Weighted average common shares outstanding: | |||
Basic | 78,157 | 77,536 | 76,743 |
Diluted | 90,231 | 88,619 | 78,471 |
Dividends declared per common share (Class A and B) | $ 0.48 | $ 0.48 | $ 0.48 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Consolidated Statements Of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 77,061 | $ 99,588 | $ 32,640 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustments | 63 | (339) | 120 |
Unrealized holding (losses) gains on available-for-sale debt securities (net of tax expense (benefit) of $410, $(167) and $(334), respectively) | 1,299 | (530) | (644) |
Total other comprehensive income (loss) | 1,362 | (869) | (524) |
Comprehensive income | $ 78,423 | $ 98,719 | $ 32,116 |
Consolidated Statements Of Co_2
Consolidated Statements Of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Consolidated Statements Of Comprehensive Income [Abstract] | |||
Unrealized holding gains (losses) on available-for-sale debt securities, tax expense (benefit) | $ 410 | $ (167) | $ (334) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 90,447 | $ 167,457 |
Short-term investments, net | 160,034 | 191,686 |
Accounts receivable (net of allowance for doubtful accounts and returns of $818 and $1,009, respectively) | 124,771 | 78,925 |
Inventory | 8,252 | 7,753 |
Prepaid expenses and other current assets | 20,806 | 28,187 |
Total current assets | 404,310 | 474,008 |
PROPERTY AND EQUIPMENT, NET | 174,752 | 148,089 |
FINANCE LEASE RIGHT-OF-USE ASSETS, NET | 289,932 | |
OPERATING LEASE RIGHT-OF-USE ASSETS, NET | 20,811 | |
FEATURE FILM PRODUCTION ASSETS, NET | 15,873 | 13,558 |
TELEVISION PRODUCTION ASSETS, NET | 4,172 | 7,473 |
INVESTMENT SECURITIES | 28,106 | 30,196 |
DEFERRED INCOME TAX ASSETS, NET | 7,217 | 17,138 |
OTHER ASSETS, NET | 47,060 | 9,837 |
TOTAL ASSETS | 992,233 | 700,299 |
CURRENT LIABILITIES: | ||
Current portion of long-term debt | 3,613 | 5,118 |
Finance lease liabilities | 7,945 | |
Operating lease liabilities | 6,586 | |
Convertible debt | 188,667 | 183,090 |
Accounts payable and accrued expenses | 80,592 | 120,158 |
Deferred income | 56,941 | 49,173 |
Total current liabilities | 344,344 | 357,539 |
LONG-TERM DEBT | 22,098 | 25,696 |
FINANCE LEASE LIABILITIES | 335,465 | |
OPERATING LEASE LIABILITIES | 14,571 | |
OTHER NON-CURRENT LIABILITIES | 429 | 827 |
Total liabilities | 716,907 | 384,062 |
COMMITMENTS AND CONTINGENCIES | ||
STOCKHOLDERS’ EQUITY: | ||
Additional paid-in-capital | 405,353 | 415,281 |
Accumulated other comprehensive income | 2,864 | 1,502 |
Accumulated deficit | (133,664) | (101,326) |
Total stockholders' equity | 275,326 | 316,237 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | 992,233 | 700,299 |
Common Class A [Member] | ||
STOCKHOLDERS’ EQUITY: | ||
Common stock | 462 | 437 |
Common Class B [Member] | ||
STOCKHOLDERS’ EQUITY: | ||
Common stock | $ 311 | $ 343 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Accounts receivable, allowance for doubtful accounts and returns | $ 818 | $ 1,009 |
Common Class A [Member] | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 180,000,000 | 180,000,000 |
Common stock, shares issued | 46,181,320 | 43,721,411 |
Common stock, shares outstanding | 46,181,320 | 43,721,411 |
Common Class B [Member] | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 60,000,000 | 60,000,000 |
Common stock, shares issued | 31,099,011 | 34,303,438 |
Common stock, shares outstanding | 31,099,011 | 34,303,438 |
Consolidated Statements Of Stoc
Consolidated Statements Of Stockholders' Equity - USD ($) $ in Thousands | Common Stock [Member]Common Class A [Member] | Common Stock [Member]Common Class B [Member] | Additional Paid-In Capital [Member] | Accumulated Other Comprehensive Income [Member] | Accumulated Deficit [Member] | Common Class A [Member] | Common Class B [Member] | Total |
Balance, Shares at Dec. 31, 2016 | 38,455,000 | 37,949,000 | ||||||
Balance at Dec. 31, 2016 | $ 385 | $ 379 | $ 403,387 | $ 2,895 | $ (167,303) | $ 239,743 | ||
Net income | 32,640 | 32,640 | ||||||
Other comprehensive loss | (524) | (524) | ||||||
Stock issuances, net, Shares | 703,000 | |||||||
Stock issuances, net | $ 7 | 1,571 | 1,578 | |||||
Conversion of Class B common stock by shareholder, Shares | 3,340,000 | (3,340,000) | ||||||
Conversion of Class B common stock by shareholder | $ 33 | $ (33) | ||||||
Debt discount on convertible debt, net | 2,487 | 2,487 | ||||||
Purchase of convertible note hedge | (2,558) | (2,558) | ||||||
Proceeds from issuance of warrants | 1,460 | 1,460 | ||||||
Taxes paid related to net settlement upon vesting of equity awards | (9,164) | (9,164) | ||||||
Cash dividends declared | 874 | (37,728) | (36,854) | |||||
Stock-based compensation | 24,151 | 24,151 | ||||||
Balance, Shares at Dec. 31, 2017 | 42,498,000 | 34,609,000 | ||||||
Balance at Dec. 31, 2017 | $ 425 | $ 346 | 422,208 | 2,371 | (172,391) | 252,959 | ||
Net income | 99,588 | 99,588 | ||||||
Other comprehensive loss | (869) | (869) | ||||||
Stock issuances, net, Shares | 917,000 | |||||||
Stock issuances, net | $ 9 | 1,939 | 1,948 | |||||
Conversion of Class B common stock by shareholder, Shares | 306,000 | (306,000) | ||||||
Conversion of Class B common stock by shareholder | $ 3 | $ (3) | ||||||
Taxes paid related to net settlement upon vesting of equity awards | (50,798) | (50,798) | ||||||
Cash dividends declared | 1,366 | (38,609) | (37,243) | |||||
Stock-based compensation | 39,304 | 39,304 | ||||||
Other | 1,262 | 1,262 | ||||||
Balance, Shares at Dec. 31, 2018 | 43,721,000 | 34,303,000 | 43,721,411 | 34,303,438 | ||||
Balance at Dec. 31, 2018 | $ 437 | $ 343 | 415,281 | 1,502 | (101,326) | 316,237 | ||
Cumulative effect of adopting ASC 606 at Dec. 31, 2018 | 10,086 | 10,086 | ||||||
Net income | 77,061 | 77,061 | ||||||
Other comprehensive loss | 1,362 | $ 1,362 | ||||||
Repurchases and retirements of common stock, Shares | (1,398,000) | (1,398,385) | ||||||
Repurchases and retirements of common stock | $ (14) | (12,436) | (70,991) | $ (83,441) | ||||
Stock issuances, net, Shares | 654,000 | |||||||
Stock issuances, net | $ 7 | 2,318 | 2,325 | |||||
Conversion of Class B common stock by shareholder, Shares | 3,204,000 | (3,204,000) | ||||||
Conversion of Class B common stock by shareholder | $ 32 | $ (32) | ||||||
Taxes paid related to net settlement upon vesting of equity awards | (30,183) | (30,183) | ||||||
Cash dividends declared | 977 | (38,408) | (37,431) | |||||
Stock-based compensation | 29,396 | 29,396 | ||||||
Other | ||||||||
Balance, Shares at Dec. 31, 2019 | 46,181,000 | 31,099,000 | 46,181,320 | 31,099,011 | ||||
Balance at Dec. 31, 2019 | $ 462 | $ 311 | $ 405,353 | $ 2,864 | $ (133,664) | $ 275,326 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
OPERATING ACTIVITIES: | |||
Net income | $ 77,061 | $ 99,588 | $ 32,640 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Amortization and impairments of feature film production assets | 5,718 | 8,822 | 17,377 |
Amortization of television production assets | 29,990 | 29,568 | 21,137 |
Depreciation and amortization | 39,552 | 31,767 | 32,030 |
Other amortization | 13,905 | 6,142 | 6,759 |
Loss (gain) on equity investments, net | 3,309 | (882) | |
Services provided in exchange for equity instruments | (2,759) | (2,767) | (2,720) |
Stock-based compensation | 29,396 | 39,304 | 24,151 |
Provision for (benefit from) deferred income taxes | 9,921 | (1,058) | 13,572 |
Other non-cash adjustments | 10,948 | 2,024 | 1,003 |
Cash (used in) provided by changes in operating assets and liabilities: | |||
Accounts receivable | (41,486) | (3,527) | (12,507) |
Inventory | (499) | 579 | (1,801) |
Prepaid expenses and other assets | 2,642 | (7,973) | 131 |
Feature film production assets | (7,937) | (1,204) | (12,540) |
Television production assets | (26,412) | (30,478) | (15,921) |
Accounts payable, accrued expenses and other liabilities | (31,954) | 26,750 | 8,112 |
Deferred income | 10,297 | (9,936) | (14,835) |
Net cash provided by operating activities | 121,692 | 186,719 | 96,588 |
INVESTING ACTIVITIES: | |||
Purchases of property and equipment and other assets | (69,086) | (32,275) | (24,710) |
Purchases of short-term investments | (124,282) | (94,910) | (142,373) |
Proceeds from sales and maturities of short-term investments | 157,487 | 61,428 | 35,660 |
Purchase of investment securities | (1,366) | (1,330) | (2,316) |
Other | 1,438 | 1,000 | |
Net cash used in investing activities | (35,809) | (66,087) | (133,739) |
FINANCING ACTIVITIES: | |||
Repayment of long-term debt | (5,103) | (4,782) | (7,504) |
Repayment of finance leases | (8,352) | ||
Dividends paid | (37,431) | (37,243) | (36,854) |
Debt issuance costs | (708) | ||
Proceeds from borrowings under the credit facilities | 1,383 | ||
Proceeds from borrowings on convertible notes, net of issuance costs | 14,534 | ||
Proceeds from issuance of warrants | 1,460 | ||
Purchase of convertible note hedge | (2,558) | ||
Taxes paid related to net settlement upon vesting of equity awards | (30,183) | (50,798) | (9,164) |
Proceeds from issuance of stock | 2,325 | 1,948 | 1,578 |
Repurchase and retirement of common stock | (83,441) | ||
Net cash used in financing activities | (162,893) | (90,875) | (37,125) |
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (77,010) | 29,757 | (74,276) |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 167,457 | 137,700 | 211,976 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 90,447 | 167,457 | 137,700 |
SUPPLEMENTAL CASH FLOW INFORMATION: | |||
Cash paid for income taxes, net of refunds | 7,386 | 10,107 | 14,590 |
Cash paid for interest | 10,706 | 8,899 | 9,312 |
NON-CASH INVESTING AND FINANCING TRANSACTIONS: | |||
Purchases of property and equipment recorded in accounts payable and accrued expenses (See Note 11) | $ 4,997 | $ 13,464 | $ 2,334 |
Basis Of Presentation And Busin
Basis Of Presentation And Business Description | 12 Months Ended |
Dec. 31, 2019 | |
Basis Of Presentation And Business Description [Abstract] | |
Basis Of Presentation And Business Description | 1. Basis of Presentation and Business Description The accompanying consolidated financial statements include the accounts of WWE. “WWE” refers to World Wrestling Entertainment, Inc. and its subsidiaries, unless the context otherwise requires. References to “we,” “us,” “our” and the “Company” refer to WWE. We are an integrated media and entertainment company, principally engaged in the production and distribution of wrestling entertainment content through various channels, including our premium over-the-top subscription network (“WWE Network”), content rights agreements, pay-per-view event programming, filmed entertainment, live events, licensing of various WWE themed products, and the sale of consumer products featuring our brands. Our operations are organized around the following principal activities: Media : The Media segment reflects the production and monetization of long-form and short-form media content across various platforms, including WWE Network, broadcast and pay television, digital and social media, as well as filmed entertainment. Across these platforms, revenues principally consist of content rights fees, subscriptions to WWE Network, and advertising and sponsorships. Live Events : Live events provide ongoing content for our media platforms. Live Event segment revenues consist primarily of ticket sales, including primary and secondary distribution, revenues from events for which we receive a fixed fee, as well as the sale of travel packages associated with the Company’s global live events. Consumer Products : The Consumer Products segment engages in the merchandising of WWE branded products, such as video games, toys and apparel, through licensing arrangements and direct-to-consumer sales. Revenues principally consist of royalties and licensee fees related to WWE branded products, and sales of merchandise distributed at our live events and through eCommerce platforms. |
Summary Of Significant Accounti
Summary Of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Summary Of Significant Accounting Policies [Abstract] | |
Summary Of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Use of Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires our management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Basis of Consolidation — The consolidated financial statements include the accounts of WWE and all of its domestic and foreign subsidiaries. Included in Corporate are intersegment eliminations recorded in consolidation. All intercompany accounts and transactions have been eliminated in consolidation. Cash and Cash Equivalents — Cash and cash equivalents include cash on deposit in overnight deposit accounts, investments in Treasury bills and investments in money market accounts with original maturities of three months or less at the time of purchase. Short-term Investments, Net — Our short-term investments consist of available-for-sale debt securities. Such investments consist of U.S. Treasury securities, corporate and municipal bonds, including pre-refunded municipal bonds, and government agency bonds. These investments are stated at fair value, with unrealized gains and losses on such securities reflected, net of tax, as other comprehensive income (loss) in stockholders’ equity. Realized gains and losses on investments are included in earnings and are derived using the specific identification method for determining the cost of securities sold. Accounts Receivable, Net — Accounts receivable relate principally to amounts due to us from distributors of our content, as well as from licensees that produce consumer products containing our intellectual property and/or trademarks. We estimate the collectability of our receivables and establish allowances for the amount of accounts receivable that we estimate to be uncollectible. We base these allowances on our historical collection experience, the length of time our accounts receivable are outstanding and the financial condition of individual customers. An individual balance is charged to the allowance when all collection efforts have been exhausted and it is deemed likely to be uncollectible, taking into consideration the financial condition of the customer and other factors. Inventory — Inventory consists of merchandise sold on our websites and on distribution platforms, including Amazon, and merchandise sold at live events. Substantially all of our inventory is comprised of finished goods. Inventory is stated at the lower of cost or net realizable value. The valuation of our inventories requires management to make market estimates assessing the quantities and the prices at which we believe the inventory can be sold. Property and Equipment, Net — Property and equipment are carried at historical cost net of benefits associated with tax incentives less accumulated depreciation and amortization. Depreciation and amortization is computed on a straight-line basis over the estimated useful lives of the assets or, when applicable, the life of the lease, whichever is shorter. Vehicles and equipment are depreciated based on estimated useful lives varying from three to five years. Buildings and related improvements are depreciated based on estimated useful lives varying from five years to thirty-nine years . Our corporate aircraft is depreciated over ten years on a straight-line basis less an estimated residual value. Leases — The Company determines if a contract contains a lease at the inception of the arrangement. The Company has elected the short-term lease exemption, whereby leases with initial terms of one year or less are not capitalized and instead expensed generally on a straight-line basis over the lease term. The depreciable life of the underlying leased assets are generally limited to the expected lease term inclusive of any optional lease terms where we conclude at the inception of the lease that we are reasonably certain of exercising those renewal options. The Company is primarily a lessee with a lease portfolio comprised mainly of real estate and equipment leases. Operating and finance lease assets are included on our consolidated balance sheets in non-current assets as an operating or finance right-of-use asset. Operating and finance lease liabilities are included on our consolidated balance sheets in non-current liabilities for the portion that is due on a long-term basis and in current liabilities for portion that is due within 12 months of the financial statement date. The right-of-use assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Right-of-use assets and lease liabilities are recognized at the commencement date of the lease based on the present value of lease payments over the lease term using an appropriate discount rate. Since the implicit rate is not readily available for our leases, we use our incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The right-of-use asset also may include any initial direct costs paid and is reduced by any lease incentives provided by the lessor. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term for our operating leases and for our finance leases, we record interest expense on the lease liability and straight-line amortization of the right-of-use asset over the lease term. Feature Film Production Assets, Net — Feature film production assets are recorded at the cost of production, including production overhead and net of production incentives. The costs for an individual film are amortized in the proportion that revenues bear to management’s estimates of the ultimate revenue expected to be recognized from exploitation, exhibition or sale. Unamortized feature film production assets are evaluated for impairment each reporting period. We review and revise estimates of ultimate revenue and participation costs at each reporting period to reflect the most current information available. If estimates for a film’s ultimate revenues and/or costs are revised and indicate a significant decline in a film’s profitability or if events or circumstances change that indicate we should assess whether the fair value of a film is less than its unamortized film costs, we calculate the film's estimated fair value using a discounted cash flows model. If fair value is less than the unamortized cost, the film is written down to fair value. Impairment charges are recorded as an increase in amortization expense included in Operating expenses in the Consolidated Statements of Operations. Our estimate of ultimate revenues for feature films includes revenues from all sources for ten years from the date of a film’s initial release. We estimate the ultimate revenues based on industry and Company specific trends, the historical performance of similar films, the star power of the lead actors, and the genre of the film. Prior to the release of a feature film and throughout its life, we revise our estimates of revenues based on expected future results, actual results and other known factors affecting the various distribution markets. Television Production Assets, Net — Television production assets consist primarily of non-live event episodic television series we have produced for distribution through a variety of platforms including on our WWE Network. Amounts capitalized include development costs, production costs, production overhead and employee salaries. Costs to produce episodic programming for television or distribution on WWE Network are amortized in the proportion that revenues bear to management's estimates of the ultimate revenue expected to be recognized from exploitation, exhibition or sale. Costs to produce our live event programming are expensed when the event is first broadcast and are not included in the capitalized costs or in the related amortization. Unamortized television production assets are evaluated for impairment each reporting period. If conditions indicate a potential impairment, and the estimated future cash flows are not sufficient to recover the unamortized asset, the asset is written down to fair value. In addition, if we determine that a program will not likely air, we expense the remaining unamortized asset. Valuation of Long-Lived Assets — We periodically evaluate the carrying amount of long-lived assets for impairment when events and circumstances warrant such a review. Investment Securities — Equity investments that are marketable and have a readily determinable fair value are carried at fair value with changes in the fair value recorded through income and reflected in Other income, net in the Consolidated Statements of Operations. For nonmarketable equity securities (those without a readily determinable fair value), the Company elected to apply the practicality exception to apply fair value measurement, under which such securities will be measured at cost, less impairment, plus or minus observable price changes for identical or similar securities of the same issuer with such changes recorded in Other income, net in the Consolidated Statements of Operations. For equity investments where the Company does not control the investee, and where it is not the primary beneficiary of a variable interest entity, but can exert significant influence over the financial and operating policies of the investee, the Company applies the equity method of accounting. Under the equity method of accounting, the Company’s share of the investee’s underlying net income or loss is recorded as investment income or loss within Other income, net in the Consolidated Statements of Operations, and is also included, net of cash dividends received, in Equity in earnings of affiliate, net of dividends received, in the Consolidated Statements of Cash Flows. Dividend distributions received from the investee reduces the Company’s carrying value of the investee and the cost basis if deemed a return of capital. Nonmarketable equity securities and equity method investments are also subject to periodic impairment evaluations, and when factors indicate that a significant decrease in value has occurred. Factors considered in making such assessments may include near-term prospects of the investees, subsequent rounds of financing activities of the investees, and the investees’ capital structure as well as other economic variables, which reflect assumptions market participants may use in pricing these assets. If an equity method investment is deemed to have experienced an other-than-temporary decline below its carrying amount, we reduce the carrying amount of the equity method investment to its quoted or estimated fair value, as applicable, and establish a new carrying amount for the investment. For nonmarketable equity securities that are accounted for under the measurement alternative to fair value, the Company applies the impairment model that does not require the Company to consider whether the impairment is other-than-temporary. We record these impairment charges on our equity investments in Other income, net in the Consolidated Statements of Operations. Income Taxes — Deferred tax liabilities and assets are recognized for the expected future tax consequences of events that have been reflected in the consolidated financial statements. Amounts are determined based on the differences between the book and tax bases of particular assets and liabilities and operating loss carry forwards, using tax rates in effect for the years in which the differences are expected to reverse. A valuation allowance is provided to offset deferred tax assets if, based upon the available evidence, it is more-likely-than-not that some or all of the deferred tax assets will not be realized. In evaluating our ability to recover our deferred tax assets within the jurisdiction from which they arise, we consider all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax-planning strategies, and results of recent operations. If we determine that we would be able to realize our deferred tax assets in the future in excess of their net recorded amount, we would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes, conversely, if we determine we might not be able to realize our deferred tax assets we would record a valuation allowance which would result in a charge to the provision for income taxes. We use a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate tax positions taken or expected to be taken in a tax return by assessing whether they are more likely than not sustainable, based solely on their technical merits, upon examination, and including resolution of any related appeals or litigation process. The second step is to measure the associated tax benefit of each position, as the largest amount that we believe is more likely than not realizable. Differences between the amount of tax benefits taken or expected to be taken in our income tax returns and the amount of tax benefits recognized in our financial statements represent our unrecognized income tax benefits, which we record as a liability. Our policy is to include interest and penalties related to unrecognized income tax benefits as a component of income tax expense. Revenue Recognition — The Company adopted new accounting pronouncements in 2018 related to revenue recognition. See the discussion in Recent Accounting Pronouncements below and Note 4, Revenues , for further details. Under the new revenue recognition rules adopted in 2018, most of our sales revenue continues to be recognized when products are shipped or as services are performed and was not materially impacted by the adoption of the new revenue recognition standard. Revenues are generally recognized when control of the promised goods or services is transferred to our customers either at a point in time or over time, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. Most of our contracts have one performance obligation and all consideration is allocated to that performance obligation. In contracts that have multiple performance obligations which may include the production of live events, content broadcast rights, and advertising and sponsorship rights, we allocate the transaction price to each identified performance obligation based upon their relative standalone selling price. The standalone selling prices are determined using observable standalone selling prices when available as well as estimates of standalone selling prices using adjusted market assessment and expected cost plus margin approaches to estimate the price for individual components. Our revenues do not include material estimated amounts of variable consideration. The variable consideration contained in our contracts relate primarily to sales or usage-based royalties earned on consumer product licensing contracts. The variability related to these sales or usage-based royalties will be resolved in the periods when the licensee generates sales related to the intellectual property license. As it relates to our Consumer Products segment, the Company accounts for shipping and handling activities as fulfillment activities. We derive our revenues principally from the following sources: (i) content rights fees associated with the distribution of WWE’s media content, (ii) subscriptions to WWE Network, (iii) fees for viewing our pay-per-view programming, (iv) feature film distribution, (v) advertising and sponsorship sales, (vi) live event ticket sales, (vii) consumer product licensing royalties from the sale by third-party licensees of WWE branded merchandise, (viii) direct-to-consumer sales of merchandise at our live event venues, and (ix) direct-to-consumer sales of our merchandise through eCommerce platforms. The below describes our revenue recognition policies in further detail for each major revenue source of the Company. Content rights fees: Rights fees received from distributors of our programming, both domestically and internationally, are recorded when the program (functional intellectual property) has been delivered and control has been transferred to the distributor and the license period has begun. Any advance payments received from the distributors are deferred upon collection and recognized into revenue as content is delivered. Our content rights distribution agreements are generally between one year and five years in length and frequently provides for contractual increases over its term. WWE Network Subscriptions: Revenues from the sale of subscriptions to WWE Network are recognized ratably over each paid monthly membership period. Deferred revenues consist of subscription fees billed to members that have not been recognized and gift memberships that have not been redeemed. Pay-per-view programming: Revenues from our pay-per-view programming are recorded when the event is aired/performed and are based upon our initial estimate of the number of buys achieved. This initial estimate is based on preliminary buy information received from our pay-per-view distributors. These estimates are updated each reporting period based on the latest information available. Advertising and sponsorships: Through our sponsorship packages, we offer advertisers a full range of our promotional vehicles, including online and print advertising, on-air announcements and special appearances by our Superstars. We allocate the transaction price to all performance obligations contained within a sponsorship and advertising arrangement based upon their relative standalone selling price. Standalone selling prices are determined generally based on a rate card used to determine pricing for individual components. Revenues are recognized as each performance obligation is satisfied, which generally occurs when the sponsorship and advertising is aired, exhibited, performed or played on the applicable WWE platform. We are generally the principal in our advertising and sponsorship arrangements because we control the advertising and sponsorship inventory before it is transferred to our customers. Our control is evidenced by our sole ability to monetize the advertising and sponsorship inventory and being primarily responsible to our customers. Live event ticket sales: Revenues from our live event ticket sales are recognized upon the occurrence of the related live event. Consumer product licensing royalties: Licensing revenues consist principally of royalties or license fees related to various WWE themed products, such as video games, toys and apparel, which are created using WWE brands and marks (symbolic intellectual property). Revenues from our licensed products are recognized in the period of the underlying product sales based on estimates from licensees and adjustments to the estimated amounts are recorded when final statements are received. The estimates are derived from the best available recent information from our licensees of underlying sales performance and represents the most likely amount of revenues expected. Any upfront license fees or minimum guarantees received from the licensee are deferred upon collection and recognized into revenue over the contract term as the amounts are earned. Direct-to-consumer venue merchandise sales: Direct-to-consumer merchandise sales consist of sales of merchandise at our live events. Revenues are recognized at the point of sale, as control is transferred to the customer. Direct-to-consumer eCommerce sales: Direct-to-consumer eCommerce revenues consist of sales of merchandise on our websites, including through our WWEShop Internet storefront and on distribution platforms, including Amazon. Revenues are recognized at a point in time, as control is transferred to the customer upon shipment. Operating Expenses — Operating expenses consist of our production costs associated with developing our content, costs associated with operating our WWE Network, venue rental and related costs associated with the staging of our live events, compensation costs for our talent, and material and related costs associated with our consumer product merchandise sales. In addition, operating expenses include certain business operating support function costs, including our talent development, data analytics, data engineering, business strategy and real estate and facilities functions, as these activities directly support the operations of our segments. Included within operating expenses are the following depreciation and amortization expenses: Amortization and impairment of feature film production assets: We amortize feature film production assets based on the estimated future cash flows. Unamortized feature film production assets are evaluated for impairment each reporting period. Amortization and impairment of television production assets: Television production assets consist primarily of non-live event episodic television series we have produced for distribution through a variety of platforms, including on our WWE Network. Costs to produce episodic programming for television or distribution on WWE Network are amortized in the proportion that revenues bear to management's estimates of the ultimate revenue expected to be recognized from exploitation, exhibition or sale. Unamortized television production assets are evaluated for impairment each reporting period. Program amortization for WWE Network is included in operating expenses as a component of amortization of television production assets. For episodic programming debuting and currently expected to air exclusively on WWE Network, the cost of the programming is expensed upon initial release, as the vast majority of viewership occurs in close proximity to the initial release. Amortization of costs related to content delivery and technology assets utilized for our WWE Network: These costs are amortized on a straight-line basis over the shorter of the expected useful life or the term of the respective assets. Amortization of right-of-use assets on finance leases of equipment: The amortization expense associated with the right-of-use assets pertain predominantly to equipment utilized to produce and distribute our live event programming and are therefore included in operating expenses. Depreciation on equipment used directly in revenue generating activities: We capitalize equipment consisting primarily of television set components and related equipment that is utilized as part of our programming content. These assets are depreciated over their respected estimated useful lives. The following table presents the depreciation and amortization expense amounts included within Operating expenses for the periods presented: Year Ended December 31, 2019 2018 2017 Amortization and impairment of feature film assets $ 5,718 $ 8,822 $ 17,377 Amortization of television production assets 29,990 29,568 21,137 Amortization of WWE Network content delivery and technology assets 5,317 6,696 5,970 Amortization of right-of-use assets - finance leases of equipment 8,020 — — Depreciation on equipment used directly in revenue generating activities 108 — — Total depreciation and amortization included in operating expenses $ 49,153 $ 45,086 $ 44,484 Costs to produce our live event programming are expensed when the event is first broadcast, and are not included in the depreciation and amortization table noted above. Marketing and Selling Expenses – Marketing and selling expenses consist of costs associated with the promotion and marketing of our services and products. These expenses include advertising and promotional costs, and the costs associated with our sales and marketing functions, creative services functions and our international offices. General and Administrative Expenses – General and administrative expenses include costs associated with our corporate administrative functions, including finance, investor relations, community relations, corporate communications, information technology, legal, human resources and our Board of Directors. The Company does not allocate these costs to its business segment, as they do not directly relate to revenue generating activities. Film and Television Production Incentives — The Company has access to various governmental programs that are designed to promote film and television production within the United States and certain international jurisdictions. Tax credits earned with respect to expenditures on qualifying film, television and other production activities, including qualifying capital projects, are included as an offset to the related asset or as an offset to production expenses when we have reasonable assurance regarding the realizable amount of the tax credits. Advertising Expense — Advertising costs are expensed as incurred, except for costs related to the development of a major commercial or media campaign, which are expensed in the period in which the commercial or campaign is first presented. For the years ended December 31, 2019, 2018 and 2017, we recorded advertising expenses of $ 21,165 , $ 21,563 and $ 23,629 , respectively. Foreign Currency Translation — For the translation of the financial statements of our foreign subsidiaries whose functional currencies are non-U.S. Dollars, assets and liabilities are translated at the year-end exchange rate, and income statement accounts are translated at monthly average exchange rates for the year. The resulting translation adjustments are recorded in accumulated other comprehensive income, a component of stockholders’ equity and also in comprehensive income. Foreign currency transactions are recorded at the exchange rate prevailing at the transaction date, with any gains/losses recorded in other income/expense. Stock-Based Compensation — Equity awards are granted to directors, officers and employees of the Company. Stock-based compensation costs associated with our restricted stock units ("RSUs") are determined using the fair market value of the Company's common stock on the date of the grant. These costs are recognized over the requisite service period using the graded vesting method, net of estimated forfeitures. RSUs have a service requirement typically over a 3.5 years vesting schedule and vest in equal annual installments. Unvested RSUs accrue dividend equivalents at the same rate as are paid on our shares of Class A common stock. The dividend equivalents are subject to the same vesting schedule as the underlying RSUs. Stock-based compensation costs associated with our performance stock units ("PSUs") are initially determined using the fair market value of the Company's common stock on the date the awards are approved by our Compensation Committee (service inception date). The vesting of these PSUs are subject to certain performance conditions and a service requirement of typically 3.5 years. Until such time as the performance conditions are met, stock compensation costs associated with these PSUs are re-measured each reporting period based upon the fair market value of the Company's common stock and the estimated performance attainment on the reporting date. The ultimate number of PSUs that are issued to an employee is the result of the actual performance of the Company at the end of the performance period compared to the performance conditions. Stock compensation costs for our PSUs are recognized over the requisite service period using the graded vesting method, net of estimated forfeitures. Unvested PSUs accrue dividend equivalents once the performance conditions are met at the same rate as are paid on our shares of Class A common stock. The dividend equivalents are subject to the same vesting schedule as the underlying PSUs. In 2018, the Compensation Committee approved certain agreements to grant PSUs with a market condition (“PSU-TSRs”), where vesting is conditioned upon the total shareholder return performance of WWE stock relative to the total shareholder return performance of a peer group over specified performance periods. The fair value of these market-based awards are estimated on the date of grant using the Monte Carlo simulation valuation model. The Compensation costs associated with these types of awards are recognized over the requisite service period using the graded vesting method. We estimate forfeitures, based on historical trends when recognizing compensation expense and adjust the estimate of forfeitures when they are expected to differ or as forfeitures occur. Earnings Per Share (EPS) — Basic EPS is calculated by dividing net income by the weighted average common shares outstanding during the period. Diluted EPS is calculated by dividing net income by the weighted average common shares outstanding during the period, plus dilutive potential common shares which is calculated using the treasury-stock method. Under the treasury-stock method, potential common shares are excluded from the computation of EPS in periods in which they have an anti-dilutive effect. Net income per share of Class A and Class B common stock is computed in accordance with a two-class method of earnings allocation. As such, any undistributed earnings for each period are allocated to each class of common stock based on the proportionate share of cash dividends that each class is entitled to receive. During 2019, 2018 and 2017, the dividends declared and paid per share of Class A and Class B common stock were the same. Treasury Stock Retirement — The Company accounts for treasury stock transactions using the cost method. All share repurchases to date have been retired by the Company. When the Company retires its own common stock, the excess of the repurchase price of the common stock over the par value of the common stock is allocated between additional paid-in capital and retained earnings. The portion allocated to additional paid-in capital is determined by applying a percentage, determined by dividing the number of shares to be retired by the number of shares issued and outstanding as of the retirement date, to the balance of additional paid-in capital as of the retirement date. Direct costs incurred to repurchase the common stock are not material and are expensed in the period incurred. Recent Accounting Pronouncements In March 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2019-02, “ Improvements to Accounting for Costs of Films and License Agreements for Program Materials .” The amendments in this ASU align the accounting for production costs of an episodic television series with the accounting for production costs of films. In addition, the ASU modifies certain aspects of the capitalization, impairment, presentation and disclosure requirements under the current film and broadcaster entertainment industry guidance. The new guidance is effective for interim and annual reporting periods starting in fiscal year 2020, with early adoption permitted. The new guidance will be applied on a prospective basis. The Company does not expect the adoption of the amendments to have a material impact on its consolidated financial statements. In November 2018, the FASB issued ASU No. 2018-18, “ Collaborative Arrangements (Topic 808) – Clarifying the Interaction between Topic 808 and Topic 606 .” The amendments in this ASU clarifies that certain transactions between collaborative arrangement participants should be accounted for as revenue under Topic 606, Revenue from Contracts with Customers, when the collaborative arrangement participant is a customer in the context of a unit of account and precludes recognizing as revenue consideration received from a collaborative arrangement participant if the participant is not a customer. The new guidance is effective for interim and annual reporting periods starting in fiscal year 2020 for the Company, with early adoption permitted. The new guidance should be applied retrospectively to the date of initial application of the new revenue guidance in Topic 606 (January 1, 2018 for the Company). The Company does not expect the adoption of the amendments to have a materi |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 3. Earnings Per Share For purposes of calculating basic and diluted earnings per share, we used the following weighted average common shares outstanding (in thousands): Year Ended December 31, 2019 2018 2017 Net income $ 77,061 $ 99,588 $ 32,640 Weighted average basic common shares outstanding 78,157 77,536 76,743 Dilutive effect of restricted and performance stock units 1,361 1,877 1,721 Dilutive effect of convertible debt instruments 10,707 9,206 — Dilutive effect of employee share purchase plan 6 — 7 Weighted average dilutive common shares outstanding 90,231 88,619 78,471 Earnings per share: Basic $ 0.99 $ 1.28 $ 0.43 Diluted $ 0.85 $ 1.12 $ 0.42 Anti-dilutive shares (excluded from per-share calculations): Net shares received on purchased call of convertible debt hedge 5,756 5,098 — Outstanding restricted and performance stock units — 3 — Effect of Convertible Notes and Related Convertible Note Hedge and Warrants In connection with the issuance of the Convertible Notes, the Company entered into Convertible Note Hedge and Warrant transactions as described further in Note 12, Convertible Debt . The collective impact of the Convertible Note Hedge and Warrants effectively eliminates any economic dilution that may occur from the actual conversion of the Convertible Notes between the conversion price of $ 24.91 per share and the strike price of the Warrants of $ 31.89 per share. The denominator of our diluted earnings per share calculation for 2019 and 2018 includes the effect of additional shares issued using the treasury stock method since the average price of our common stock exceeded the conversion price of the Convertible Notes of $ 24.91 per share. In addition, the denominator of our diluted earnings per share calculation for those periods also includes the additional shares issued related to the Warrants using the treasury stock method since the average price of our common stock exceeded the strike price of the Warrants of $ 31.89 per share. The dilution from the Convertible Notes had a $ 0.12 and $ 0.13 impact on diluted earnings per share for the years ended December 31, 2019 and 2018, respectively. There was no impact on diluted earnings per share during the year ended December 31, 2017 since the average price of our common stock did not exceed the conversion price of $ 24.91 per share during that period. Prior to actual conversion, the Convertible Note Hedges are not considered for purposes of the calculation of diluted earnings per share, as their effect would be anti-dilutive. |
Revenues
Revenues | 12 Months Ended |
Dec. 31, 2019 | |
Revenues [Abstract] | |
Revenues | 4. Revenues Adoption of ASC Topic 606, “Revenue from Contracts with Customers” On January 1, 2018, the Company adopted the new revenue recognition standard pursuant to ASC Topic 606 to all contracts using the modified retrospective method. The most significant impact of adoption relates to the acceleration in the timing of revenue recognition of our consumer product licensing and film distribution revenues. The licensing and film distribution revenues historically have not comprised a significant percentage of total consolidated revenues. In 2018 and 2017, total consumer product licensing and film distribution revenues represented 5.7 % and 8.8 % of total consolidated revenues, respectively. Prior to the adoption of the new revenue standard in 2018, we recorded revenues from our consumer product licensing arrangements and film distribution arrangements on a lag upon the receipt of statements from the licensee and/or film distributor. Under the new revenue recognition standard, revenues are recorded based on best estimates available in the period of sales or usage. Financial statements presented for the reporting periods beginning after January 1, 2018 are presented under ASC Topic 606, while prior period amounts presented are not adjusted and continue to be reported in accordance with our historical accounting under ASC Topic 605, Revenue Recognition . Under the modified retrospective transition method, we recorded a net cumulative effect adjustment of $ 10,086 as an increase to opening retained earnings as of January 1, 2018. The cumulative effect impact of adopting Topic 606 related primarily to our consumer product licensing revenues. The impact to our Consolidated Statements of Operations for the year ended December 31, 2018 as a result of applying ASC Topic 606 was a decrease to our Net revenues, Operating expenses and Operating income of $ 2,971 , $ 1,360 and $ 1,611 , respectively. See Note 2, Summary of Significant Accounting Policies – Revenue Recognition for information on our revenue recognition accounting policies. Disaggregated Revenues The following table presents our revenues disaggregated by primary revenue sources. Sales and usage-based taxes are excluded from revenues. Year Ended December 31, 2019 2018 2017 Net revenues: Media Segment : Network (including pay-per-view) $ 184,553 $ 199,318 $ 190,627 Core content rights fees (1) 348,593 269,793 244,247 Advertising and sponsorships 72,428 69,529 51,838 Other (2) 137,525 144,711 48,858 Total Media Segment net revenues 743,099 683,351 535,570 Live Events Segment : North American ticket sales 93,812 105,386 111,986 International ticket sales 19,048 22,347 31,731 Advertising and sponsorships 2,072 2,124 1,965 Other (3) 10,653 14,346 6,023 Total Live Events Segment net revenues 125,585 144,203 151,705 Consumer Products Segment : Consumer product licensing 43,197 45,970 52,127 eCommerce 29,882 34,942 37,815 Venue merchandise 18,679 21,694 23,742 Total Consumer Products Segment net revenues 91,758 102,606 113,684 Total net revenues $ 960,442 $ 930,160 $ 800,959 (1) Core content rights fees consist primarily of licensing revenues earned from the distribution of our flagship programs, Raw and SmackDown , as well as our NXT programming, through global broadcast, pay television and digital platforms. (2) Other revenues within our Media segment reflect revenues earned from the distribution of other WWE content, including, but not limited to, certain live in-ring programming in international markets, scripted, reality and other programming, as well as theatrical and direct-to-home video releases. (3) Other revenues within our Live Events segment primarily consists of the sale of travel packages associated with the Company’s global live events and commissions earned through secondary ticketing, as well as revenues from events for which the Company receives a fixed fee . Except for our WWE Network subscriptions revenues, which are recorded over time during the subscription term and our consumer product licensing revenues which are recorded over time during the licensing period, our other revenue streams identified in the table above are generally recognized at a point-in-time when the performance obligations are satisfied. Payment Terms and Other Our revenues do not include material amounts of variable consideration, other than the sale or usage-based royalties earned related to our consumer product licensing and certain other content rights contracts. Our payment terms vary by the type of products or services offered, and may be subject to contractual payment terms, which may include advance payment requirements. The time between invoicing and when payment is due is not significant, generally within 30 to 60 days. We have elected the practical expedient to not adjust the total consideration within a contract to reflect a financing component when the duration of the financing is one year or less. Our contracts do not generally include a significant financing component. Our contracts with customers do not generally result in significant obligations associated with returns, refunds or warranties. Remaining Performance Obligations As of December 31, 2019, for contracts greater than one year, the aggregate amount of the transaction price allocated to remaining performance obligations is $ 3,523,289 , comprised of our multi-year content distribution, consumer product licensing and sponsorship contracts. We will recognize rights fees related to our multi-year content distribution contracts as content is delivered to the distributors during the periods 2020 through 2027. We will recognize the revenues associated with the minimum guarantees on our multi-year consumer product licensing arrangements by the end of the licensing periods, which range from 2020 through 2025. For our multi-year sponsorship arrangements, we will recognize sponsorship revenues as the sponsorship obligations are satisfied during the periods 2020 through 2028. The transaction price related to these future obligations do not include any variable consideration, which generally consists of sales or usage-based royalties earned on consumer product licensing and certain other content rights contracts. The variability related to these sales or usage-based royalties will be resolved in the periods when the licensee generates sales related to the intellectual property license. Contract Assets and Contract Liabilities (Deferred Revenues) A contract asset results when goods or services have been transferred to the customer, but payment is contingent upon a future event, other than the passage of time (i.e. type of unbilled receivable). The Company does not have any material unbilled receivables, therefore, does not have any contract assets, only accounts receivable as disclosed on the face of our consolidated balance sheet. We record deferred revenues (also referred to as contract liabilities under Topic 606) when cash payments are received or due in advance of our performance. Our deferred revenue balance primarily relates to advance payments received related to our content distribution rights agreements, our consumer product licensing agreements, and our sponsorship and advertising arrangements. The Company’s deferred revenue (i.e. contract liabilities) as of December 31, 2019 and 2018 was $ 57,025 and $ 49,487 , respectively, and are included within Deferred income and Other non-current liabilities on our Consolidated Balance Sheets. The net increase in the deferred revenue balance for the year ended December 31, 2019 of $ 7,538 is primarily driven by television rights and licensing advances received, partially offset by revenue recognized in 2019 as a result of satisfying our performance obligations. The balance of the current portion of deferred revenue recorded as of December 31, 2018 of $ 49,173 was recognized into revenue during 2019. Contract Costs (Costs of Obtaining a Contract) Except for certain multi-year content distribution arrangements, we generally expense sales commissions when incurred because the amortization period would have been one year or less. These costs are recorded within Marketing and selling expenses within our Consolidated Statements of Operations. Capitalized commission fees of $ 825 and $ 1,886 at December 31, 2019 and 2018, respectively, relate primarily to incremental costs of obtaining our long-term content distribution arrangements and these costs are being amortized over the duration of the underlying content agreements on a straight-line basis to Marketing and selling expenses. The amount of amortization was $ 1,061 , $ 1,356 and $ 1,281 for the years ended December 31, 2019, 2018 and 2017, respectively, and there was no impairment in relation to the costs capitalized. |
Investment Securities And Short
Investment Securities And Short-Term Investments | 12 Months Ended |
Dec. 31, 2019 | |
Investment Securities And Short-Term Investments [Abstract] | |
Investment Securities And Short-Term Investments | 5. Investment Securities and Short-Term Investments Investment Securities Included within Investment Securities are the following: As of December 31, 2019 2018 Equity method investments $ 14,342 $ 14,508 Nonmarketable equity investments without readily determinable fair values 13,359 10,840 Marketable equity investments with readily determinable fair values 405 4,848 Total investment securities $ 28,106 $ 30,196 Equity Method Investments Our equity method investments relate primarily to our investment in Tapout. In March 2015, WWE and ABG formed a joint venture to re-launch an apparel and lifestyle brand, Tapout. ABG agreed to contribute certain intangible assets for the Tapout brand, licensing contracts, systems, and other administrative functions to Tapout. The Company agreed to contribute promotional and marketing services related to the venture for a period of at least five years in exchange for a 50 % interest in the profits and losses and voting interest in Tapout. The Company valued its initial investment of $ 13,800 based on the fair value of the existing licensing contracts contributed by ABG. To the extent that Tapout records income or losses, we record our share proportionate to our ownership percentage, and any dividends received reduce the carrying amount of the investment. Net equity method earnings from Tapout are included as a component of Other income, net on the Consolidated Statements of Operations. Net dividends received from Tapout are reflected on the Consolidated Statements of Cash Flows within Net cash provided by operating activities. The Company did no t record any impairment charges related to our investment in Tapout during the years ended December 31, 2019, 2018 and 2017. The following table presents the net equity method earnings from Tapout and net dividends received from Tapout for the periods presented: Year Ended December 31, 2019 2018 2017 Net equity method earnings from Tapout $ 911 $ 1,118 $ 1,141 Net dividends received from Tapout ( 1,061 ) ( 1,274 ) ( 1,084 ) Equity in earnings of affiliate, net of dividends received $ ( 150 ) $ ( 156 ) $ 57 As promotional services are provided to Tapout, we record revenue and reduce the existing service obligation. During the years ended December 31, 2019, 2018 and 2017, we recorded revenues of $ 2,759 , $ 2,767 and $ 2,720 , respectively, related to our fulfillment of our promotional services obligation to Tapout. The remaining service obligation as of December 31, 2019 was $ 231 , and was included in Deferred Income. Our known maximum exposure to loss approximates the remaining service obligation to Tapout, which was $ 231 as of December 31, 2019. Creditors of Tapout do not have recourse against the general credit of the Company. Nonmarketable Equity Investments Without Readily Determinable Fair Values Beginning in 2018, the Company prospectively adopted a new accounting standard on the accounting for equity investments. See Note 2, Summary of Significant Accounting Policies – Recent Accounting Pronouncements , for further details. We evaluate our nonmarketable equity investments without readily determinable fair values for impairment if factors indicate that a significant decrease in value has occurred. Under the new standard, the Company has elected to use the measurement alternative to fair value that will allow these investments to be recorded at cost, less impairment, and adjusted for subsequent observable price changes. The following table summarizes the impairments and observable price change event adjustments recorded on our nonmarketable equity investments without readily determinable fair values for the periods presented: Year Ended December 31, 2019 2018 2017 Impairments (1) $ — $ ( 3,773 ) $ — Observable price change upward adjustments (2) 1,151 2,181 — Observable price change downward adjustments — — — Total income (loss) from adjustments to nonmarketable equity investments $ 1,151 $ ( 1,592 ) $ — (1) During the year ended December 31, 2018, the Company recorded an impairment charge on our investment in a mobile video publishing business for the excess of the carrying value over its estimated fair value resulting from going concern issues of the underlying investee company. This charge is reflected in Other income, net in our Consolidated Statements of Operations. (2) During the year ended December 31, 2019, the Company recorded upward adjustments to the carrying value related to two of the Company’s equity investments. The adjustments were the result of an observable price change events in connection with financing rounds completed by the investees where the underlying value of the preferred shares issued were greater than the value of WWE’s substantially similar preferred shares in the investees. During the year ended December 31, 2018, the Company recorded an upward adjustment to the carrying value related to one of the Company’s equity investments. The adjustment was the result of an observable price change event in connection with a financing round completed by the investee where the underlying value of the preferred shares issued were greater than the value per share of WWE’s substantially similar preferred shares in the investee. These upward adjustments are reflected in Other income, net in our Consolidated Statements of Operations. Marketable Equity Investments With a Readily Determinable Fair Values As of December 31, 2019, our investment portfolio includes one investment in a marketable equity security of a publicly traded company. The Company accounts for the equity investment in the common stock of Phunware Inc. (“Phunware”), a software application developer, as a marketable equity investment with readily determinable fair values based on quoted prices on the NASDAQ. During the years ended December 31, 2019 and 2018, the Company recorded unrealized holding losses of $ 4,444 and unrealized holding gains of $ 2,474 , respectively, based on the closing stock price of the investee company as of the last trading day of the period, which is included in Other income, net in the Consolidated Statements of Operations. During 2017, prior to the accounting rule change on marketable equity investments, unrealized holding gains and losses were recorded through other comprehensive income, net of tax. Short-Term Investments Our short-term investments consist of available-for-sale debt securities which are measured at fair value and consisted of the following: December 31, 2019 December 31, 2018 Gross Unrealized Gross Unrealized Amortized Fair Amortized Fair Cost Gain (Loss) Value Cost Gain (Loss) Value U.S. Treasury securities $ 32,124 $ 27 $ ( 13 ) $ 32,138 $ 62,847 $ 4 $ ( 439 ) $ 62,412 Corporate bonds 120,012 89 ( 74 ) 120,027 100,543 — ( 1,037 ) 99,506 Municipal bonds 2,165 — — 2,165 7,900 — ( 41 ) 7,859 Government agency bonds 5,693 11 — 5,704 22,066 — ( 157 ) 21,909 Total $ 159,994 $ 127 $ ( 87 ) $ 160,034 $ 193,356 $ 4 $ ( 1,674 ) $ 191,686 We classify the investments listed in the above table as available-for-sale debt securities. Such investments consist of U.S. Treasury securities, corporate bonds, municipal bonds, including pre-refunded municipal bonds, and government agency bonds. These investments are stated at fair value as required by the applicable accounting guidance. Unrealized gains and losses on such securities are reflected, net of tax, as other comprehensive income (loss) in the Consolidated Statements of Comprehensive Income. Our U.S. Treasury securities, corporate bonds, municipal bonds and government agency bonds are included in Short-term investments, net on our Consolidated Balance Sheets. Realized gains and losses on investments are included in earnings and are derived using the specific identification method for determining the cost of securities sold. As of December 31, 2019, contractual maturities of these securities are as follows: Maturities U.S. Treasury securities 1 month - 2 years Corporate bonds 1 month - 3 years Municipal bonds 1 month Government agency bonds 3 months - 2 years During the years ended December 31, 2019, 2018 and 2017, we recognized $ 4,728 , $ 4,508 and $ 2,007 , respectively, of interest income on our short-term investments. Interest income is reflected as a component of Other income, net within our Consolidated Statements of Operations. The following table summarizes the short-term investment activity: Year Ended December 31, 2019 2018 2017 Proceeds from maturities and calls of short-term investments $ 157,487 $ 61,428 $ 35,660 Purchases of short-term investments $ 124,282 $ 94,910 $ 142,373 |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Measurement [Abstract] | |
Fair Value Measurement | 6. Fair Value Measurement Fair value is determined based on the exchange price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. The accounting guidance establishes a three-level hierarchy that ranks the quality and reliability of information used in developing fair value estimates. The hierarchy gives the highest priority to quoted prices in active markets and the lowest priority to unobservable data. In cases where two or more levels of inputs are used to determine fair value, a financial instrument's level is determined based on the lowest level input that is considered significant to the fair value measurement in its entirety. The three levels of the fair value hierarchy are summarized as follows: Level 1- Observable inputs such as quoted prices in active markets for identical assets or liabilities; Level 2- Inputs other than quoted prices in active markets for similar assets and liabilities that are directly or indirectly observable; or Level 3- Unobservable inputs, such as discounted cash flow models or valuations, in which little or no market data exists. Certain financial instruments are carried at cost on the Consolidated Balance Sheets, which approximates fair value due to their short-term, highly liquid nature. The carrying amounts of cash and cash equivalents, money market accounts, accounts receivable and accounts payable approximate fair value because of the short-term nature of such instruments. We have classified our investments in U.S. Treasury securities, corporate bonds, municipal bonds and government agency bonds, which collectively are investments in available-for-sale debt securities, within Level 2, as their valuation requires quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and/or model-based valuation techniques for which all significant inputs are observable in the market or can be corroborated by observable market data. The U.S. Treasury securities, corporate bonds, municipal bonds and government agency bonds are valued based on model-driven valuations. A third-party service provider assists the Company with compiling market prices from a variety of industry standard data sources, security master files from large financial institutions and other third-party sources that are used to value our U.S. Treasury securities, corporate bonds, municipal bonds and government agency bond investments. The Company did not have any transfers between Level 1, Level 2 and Level 3 fair value investments during the periods presented. The fair value measurements of our equity investments without readily determinable fair values are classified within Level 3 as significant unobservable inputs are used as part of the determination of fair value. Significant unobservable inputs include variables such as near-term prospects of the investees, recent financing activities of the investees, and the investees’ capital structure, as well as other economic variables, which reflect assumptions market participants would use in pricing these assets. Beginning in 2018, the Company prospectively adopted a new accounting standard on the accounting for equity investments that do not have readily determinable fair values. See Note 2, Summary of Significant Accounting Policies – Recent Accounting Pronouncements , for further details. Under the new standard, the Company has elected to use the measurement alternative to fair value that will allow these investments to be recorded at cost, less impairment, and adjusted for subsequent observable price changes. Refer to Note 5, Investment Securities and Short-Term Investments , for details on impairments and observable pricing event adjustments related to our equity investments without readily determinable fair values. The Company's long-lived property and equipment, feature film and television production assets are required to be measured at fair value on a non-recurring basis if it is determined that indicators of impairment exist. These assets are recorded at fair value only when an impairment is recognized. During the years ended December 31, 2019 and 2018, we recorded non-cash abandonment charges of $ 940 and $ 1,693 , respectively, to write off the carrying value of certain assets included within property and equipment that we deemed will no longer be used by the Company and had no further alternative use. These charges are included as a component of Operating expenses in our Consolidated Statements of Operations. Apart from these charges, the Company did not record any other impairment charges on long lived property and equipment and television production assets during the years ended December 31, 2019, 2018 and 2017. The Company classifies these assets as Level 3 within the fair value hierarchy due to significant unobservable inputs. During the years ended December 31, 2019, 2018 and 2017, the Company recorded impairment charges of $ 1,301 , $ 4,865 and $ 5,472 on feature film production assets based upon fair value measurements of $ 943 , $ 3,635 , and $ 4,347 , respectively. Refer to Note 9, Feature Film Production Assets , for further discussion. The Company classifies these fair values as Level 3 within the fair value hierarchy due to significant unobservable inputs. The Company utilizes a discounted cash flows model to determine the fair value of these impaired films where indicators of impairment exist. The significant unobservable inputs to this model are the Company’s expected cash flows for the film, including projected home video sales, pay and free TV sales and international sales, and a discount rate of 13 % that we estimate market participants would seek for bearing the risk associated with such assets. The Company utilizes an independent third-party valuation specialist who assists us in gathering the necessary inputs used in our model. The fair value of the Company's long-term debt, consisting of a mortgage loan assumed in connection with a building purchase and a promissory note secured by the Company’s Corporate Jet, is estimated based upon quoted price estimates for similar debt arrangements. At December 31, 2019, the face amount of the mortgage loan and promissory note approximates their fair value. The convertible debt is not marked to fair value at the end of each reporting period, but instead is reported at amortized cost. As of December 31, 2019 and 2018, the calculation of the fair value of the debt component of the Company’s convertible debt required the use of Level 3 inputs, and was determined by calculating the fair value of similar debt without the associated conversion feature based on market conditions at that time: December 31, 2019 December 31, 2018 Fair Value Carrying Value (1) Fair Value Carrying Value (1) Convertible senior notes $ 207,338 $ 192,262 $ 189,323 $ 187,371 (1) The carrying value of the convertible debt instrument presented in the table above represents the face value of the convertible note less unamortized debt discount. |
Property And Equipment
Property And Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property And Equipment [Abstract] | |
Property And Equipment | 7. Property and Equipment Property and equipment consisted of the following: As of December 31, 2019 2018 Land, buildings and improvements $ 163,202 $ 141,070 Equipment and projects-in-progress 156,068 129,367 Corporate aircraft 32,249 32,249 Vehicles 1,030 942 352,549 303,628 Less accumulated depreciation and amortization ( 177,797 ) ( 155,539 ) Total $ 174,752 $ 148,089 Depreciation expense for property and equipment totaled $ 30,190 , $ 24,176 and $ 24,680 for the years ended December 31, 2019, 2018 and 2017, respectively. During the years ended December 31, 2019 and 2018, we recorded non-cash abandonment charges of $ 940 and $ 1,693 , respectively, to write off the carrying value of certain assets that we deemed will no longer be used by the Company and had no further alternative use. These charges are included as a component of Operating expenses on the Consolidated Statements of Operations. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | 8. Leases Lease Adoption on January 1, 2019 The Company adopted the new lease standard and applied the new rules starting on January 1, 2019 and elected not to restate prior periods as provided by the transition rules of the standard. Upon the adoption of the new lease standard on January 1, 2019, we recorded a right-of-use asset of $ 39,266 and a lease liability of $ 40,458 . Included as a component of the adoption entry is the immaterial out-of-period correction of previously omitted capital leases embedded in our service agreements that were identified during our lease portfolio review. These leases were comprised of a right-of-use asset of $ 16,620 and a lease liability of $ 17,812 , with the resulting difference of $ 1,192 recorded as expense in the period. Based on quantitative and qualitative considerations, we do not believe the omitted capital leases were material to our historical consolidated financial statements. Information about the Nature of WWE’s Lease Portfolio As of December 31, 2019, the Company’s lease portfolio consists of operating and finance real estate leases for its sales offices, performance centers, warehouses and corporate related facilities. In addition, we have various live event production service arrangements that contain operating and finance equipment leases. With the exception of our new global headquarters lease that commenced on July 1, 2019 (see additional details below), our other real estate leases have remaining lease terms of approximately one year to eight year s, some of which may include options to extend the leases. Our equipment leases, which are included as part of various operating service arrangements, generally have remaining lease terms of approximately one year to three year s. Generally, no covenants are imposed by our lease agreements. As previously announced on March 18, 2019, the Company entered into a lease with Stamford Washington Office LLC (the “Landlord”) under which the Company will lease approximately 415,266 rentable square feet in an office complex located in Stamford, Connecticut. The new location will allow the Company to bring together its operations, including its production studios and corporate offices, at its new site. The lease commenced on July 1, 2019 at which time the Company gained control of the leased premises. The lease provides the Company with an 18 month free rent period from the lease commencement date, followed by an initial base term of 15 years with base rental payments of $ 19,101 per year for the first five years, and increasing to $ 20,927 per year over the second five year term, and $ 22,754 per year over the third five year term. The lease includes five , five year renewal options, with the first three renewal options renewing at the lower of the then-escalated rent per the lease agreement or the fair market value rent, and the last two renewal options renewing at the fair market value rent. The lease is accounted for as a finance lease under the lease accounting guidance. At lease commencement, the Company recorded a lease obligation of $ 325,453 and right-of-use asset of $ 285,762 , net of tenant improvement allowances of $ 40,069 which are expected to be received from the landlord. The tenant improvement allowance is recorded within Other assets on our Consolidated Balance Sheets. The Company expects to complete its move into the new space in early 2021. Practical Expedient Elections The Company applied the “package” of transition practical expedients which allows for the Company as of the adoption date on January 1, 2019 to (i) not reassess whether any expired or existing contracts are or contain leases, (ii) to not reassess lease classification for any expired or existing leases, and (iii) to not reassess treatment of initial direct costs, if any, for any expired or existing leases. The Company did not elect the “hindsight” practical expedient which would have allowed the Company to use hindsight when determining the remaining lease term as of the adoption date on January 1, 2019. Key Estimates and Judgments Key estimates and judgments made in applying the lease accounting rules include how the Company determines (i) the discount rate it uses to discount the unpaid lease payments to present value, (ii) lease term and (iii) lease payments. ASC 842 requires a lessee to discount its unpaid lease payments using the interest rate implicit in the lease or, if that rate cannot be readily determined, its incremental borrowing rate. Generally, the Company cannot readily determine the interest rate implicit in the lease and therefore uses the incremental borrowing rate for its leases. The incremental borrowing rate reflects the rate of interest that the Company would pay on a collateralized basis to borrow an amount equal to the lease payments under similar terms. The incremental borrowing rates were generally determined by estimating the appropriate collateralized borrowing rates to be used for our leases and considered certain factors including, the lease term, economic environment and the assumed credit rating profile of the Company. The lease term for all of the Company’s lease arrangements include the noncancelable period of the lease plus, if applicable, any additional periods covered by an option to extend the lease that is reasonably certain to be exercised by the Company. Quantitative Disclosures Related to Leases The following table provides quantitative disclosure about the Company’s operating and financing leases for the periods presented: For the year ended December 31, 2019 Lease costs Finance lease costs: Amortization of right-of-use assets $ 12,556 Interest on lease liabilities 10,020 Operating lease costs 8,693 Other short-term and variable lease costs 1,914 Sublease income (1) ( 64 ) Total lease costs $ 33,119 Other information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from finance leases $ 607 Operating cash flows from operating leases $ 7,945 Finance cash flows from finance leases $ 8,352 Right-of-use assets obtained in exchange for new finance lease liabilities (2) $ 286,330 Right-of-use assets obtained in exchange for new operating lease liabilities (2) $ 6,283 As of December 31, 2019 Weighted-average remaining lease term - finance leases 29.8 years Weighted-average remaining lease term - operating leases 4.3 years Weighted-average discount rate - finance leases 4.8 % Weighted-average discount rate - operating leases 4.6 % (1) Sublease income excludes rental income from owned properties. (2) Includes right-of-use assets for leases that commenced after January 1, 2019. Maturity of lease liabilities as of December 31, 2019 were as follows: Operating Finance Leases Leases 2020 $ 7,510 $ 8,292 2021 6,348 20,883 2022 3,396 19,345 2023 1,917 19,255 2024 1,613 19,205 Thereafter 2,670 636,313 Total lease payment 23,454 723,293 Less: imputed interest ( 2,297 ) ( 379,883 ) Total future minimum lease payments $ 21,157 $ 343,410 |
Feature Film Production Assets,
Feature Film Production Assets, Net | 12 Months Ended |
Dec. 31, 2019 | |
Feature Film Production Assets, Net [Abstract] | |
Feature Film Production Assets, Net | 9. Feature Film Production Assets, Net Feature film production assets consisted of the following: As of December 31, 2019 2018 In release $ 8,273 $ 12,430 In production 7,397 707 In development 203 421 Total $ 15,873 $ 13,558 Approximately 27 % of “In release” film production assets are estimated to be amortized over the next 12 months and approximately 63 % of “In release” film production assets are estimated to be amortized over the next three years. We anticipate amortizing 80 % of our "In release" film production assets within five years as we receive revenues associated with television distribution of our licensed films. During the years ended December 31, 2019, 2018 and 2017, we amortized $ 4,135 , $ 3,106 and $ 11,748 , respectively, of feature film production assets. During these periods, our films were released under a co-distribution model. Under the co-distribution model, third-party distribution partners control the distribution and marketing of co-distributed films, and as a result, we recognize our share of revenue after the third-party distribution partners recoup distribution fees and expenses and results are reported to us. Results are typically reported to us in periods subsequent to the initial release of the film. In certain arrangements, where worldwide film rights and interests are sold to third-party distribution partners, we recognize revenue upon delivery of the completed film to the third-party. During the year ended December 31, 2019, one of our feature films, Fighting With My Family , was released via theatrical distribution. Additionally, during 2019, we recognized revenues of $ 1,250 associated with the sale of rights related to our feature film, Buddy Games . During the year ended December 31, 2018, we released one film via theatrical distribution, Blood Brother , and one film direct to DVD, The Marine 6: Close Quarters . These two films comprised $ 1,998 of our “In release” feature film assets as of December 31, 2018. We currently have three film designated as "In production." We also have capitalized certain script development costs for various other film projects designated as “In development.” Capitalized script development costs are evaluated at each reporting period for impairment and to determine if a project is deemed to be abandoned. During the years ended December 31, 2019, 2018 and 2017, we expensed $ 282 , $ 851 and $ 157 , respectively, related to previously capitalized development costs related to abandoned projects. Unamortized feature film production assets are evaluated for impairment each reporting period. We review and revise estimates of ultimate revenue and participation costs at each reporting period to reflect the most current information available. If estimates for a film’s ultimate revenue and/or costs are revised and indicate a significant decline in a film’s profitability or if events or circumstances change that indicate we should assess whether the fair value of a film is less than its unamortized film costs, we calculate the film’s estimated fair value using a discounted cash flows model. If fair value is less than unamortized cost, the film asset is written down to fair value. We recorded impairment charges of $ 1,301 , $ 4,865 and $ 5,472 related to our feature films during the years ended December 31, 2019, 2018 and 2017, respectively. These impairment charges represent the excess of the recorded net carrying value over the estimated fair value. |
Television Production Assets, N
Television Production Assets, Net | 12 Months Ended |
Dec. 31, 2019 | |
Television Production Assets, Net [Abstract] | |
Television Production Assets, Net | 10. Television Production Assets, Net Television production assets consisted of the following: As of December 31, 2019 2018 In release $ 1,042 $ 1,308 Completed but not released 171 — In production 2,959 6,165 Total $ 4,172 $ 7,473 Television production assets consist primarily of non-live event episodic television series we have produced for distribution through a variety of platforms, including on our WWE Network. Amounts capitalized include development costs, production costs, production overhead and employee salaries. Costs to produce episodic programming for television or distribution on WWE Network are amortized in the proportion that revenues bear to management's estimates of the ultimate revenue expected to be recognized from exploitation, exhibition or sale. Amortization of television production assets consisted of the following: For the year ended December 31, 2019 2018 2017 Television programming $ 24,815 $ 22,312 $ 17,399 WWE Network programming 5,175 7,256 3,738 Total $ 29,990 $ 29,568 $ 21,137 Costs to produce our live event programming are expensed when the event is first broadcast, and are not included in the capitalized costs or amortization tables noted above. Unamortized television production assets are evaluated for impairment each reporting period. If conditions indicate a potential impairment, and the estimated future cash flows are not sufficient to recover the unamortized asset, the asset is written down to fair value. In addition, if we determine that a program will not likely air, we will expense the remaining unamortized asset. During the years ended December 31, 2019, 2018 and 2017, we did no t record any impairments related to our television production assets. |
Accounts Payable And Accrued Ex
Accounts Payable And Accrued Expenses | 12 Months Ended |
Dec. 31, 2019 | |
Accounts Payable And Accrued Expenses [Abstract] | |
Accounts Payable And Accrued Expenses | 11. Accounts Payable and Accrued Expenses Accounts payable and accrued expenses consisted of the following: As of December 31, 2019 2018 Trade related $ 9,282 $ 12,198 Staff related 8,651 10,255 Management incentive compensation 6,481 37,103 Talent related 8,184 8,799 Accrued WWE Network related expenses 5,510 2,054 Accrued event and television production 16,627 13,881 Accrued legal and professional 5,716 4,906 Accrued purchases of property and equipment 4,997 13,464 Accrued film liability 5,986 2,774 Accrued other 9,158 14,724 Total $ 80,592 $ 120,158 Accrued other includes accruals for our international and licensing business activities, as well as other miscellaneous accruals, none of which categories individually exceeds 5 % of current liabilities. |
Convertible Debt
Convertible Debt | 12 Months Ended |
Dec. 31, 2019 | |
Convertible Debt [Abstract] | |
Convertible Debt | 12. Convertible Debt In December 2016 and January 2017, we issued $ 215,000 aggregate principal amount of 3.375 % convertible senior notes due 2023 (the “Convertible Notes”). The Convertible Notes are due December 15, 2023 , unless earlier repurchased by us or converted. Interest is payable semi-annually in arrears on June 15 and December 15 of each year, beginning on June 15, 2017. The Convertible Notes are governed by an Indenture between us, as issuer, and U.S. Bank, National Association, as trustee. The Convertible Notes will be our general unsecured obligations and will rank senior in right of payment to any of our indebtedness that is expressly subordinated in right of payment to the Convertible Notes; equal in right of payment to any of our unsecured indebtedness that is not so subordinated; effectively junior in right of payment to any of our secured indebtedness to the extent of the value of the assets securing such indebtedness; and structurally junior to all indebtedness and other liabilities (including trade payables) of our subsidiaries. In the event of our bankruptcy, liquidation, reorganization or other winding up, our assets that secure secured debt will be available to pay obligations on the Convertible Notes only after all indebtedness under such secured debt has been repaid in full from such assets. Upon conversion of the Convertible Notes, we will pay or deliver, as the case may be, cash, shares of our Class A common stock or a combination of cash and shares of Class A common stock, at our election, at a conversion rate of approximately 40.1405 shares of common stock per $1 principal amount of the Convertible Notes, which corresponds to an initial conversion price of approximately $ 24.91 per share of Class A common stock. At any time, prior to the close on the business day immediately preceding June 15, 2023 , the Convertible Notes will be convertible under the following circumstances: a) During any calendar quarter beginning after the calendar quarter ending on December 31, 2016 (and only during such calendar quarter), if the last reported sale price of our Class A common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on the last trading day of the immediately preceding quarter is greater than or equal to 130 % of the conversion price on each applicable trading day; b) During the 5 business day period after any 10 consecutive trading day period (the “measurement period”) in which the trading price per $1 principal amount of Convertible Notes for each trading day of the measurement period was less than 98 % of the product of the last reported sale price of our Class A common stock and the conversion rate on each such trading day; c) Upon the occurrence of specified corporate events; or d) On or after June 15, 2023 until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert all or any portion of their Convertible Notes, in multiples of $1 principal amount, at the option of the holder regardless of the foregoing circumstances. Pursuant to item (a) noted above, the Convertible Notes have been convertible since April 1, 2018, and holders of the Convertible Notes have the right to convert their notes at any time through at least March 31, 2020. As of December 31, 2019, since the Convertible Notes are convertible at the option of the holders, the Convertible Notes are reflected in current liabilities on our Consolidated Balance Sheet. As of December 31, 2019, no actual conversions have occurred to date. See Note 3, Earnings Per Share , for a description of the dilutive nature of the Convertible Notes. As a result of our cash conversion option, we separately accounted for the value of the embedded conversion option as a debt discount at its issuance date estimated fair value. The debt discount is amortized as additional non-cash interest expense over the term of the Convertible Notes using the effective interest method. The equity component is not remeasured as long as it continues to meet the conditions for equity classification. In accounting for the transaction costs related to the Note issuances, we allocated the total amount of offering costs incurred to the debt and equity components based on their relative values. Offering costs attributable to the debt component are amortized as non-cash interest expense over the term of the Convertible Notes. Offering costs attributable to the equity component were netted with the equity component in stockholders' equity. The Convertible Notes consisted of the following components: As of December 31, 2019 2018 Debt component : Principal $ 215,000 $ 215,000 Less: Unamortized debt discount ( 22,738 ) ( 27,629 ) Less: Unamortized debt issuance costs ( 3,595 ) ( 4,281 ) Net carrying amount $ 188,667 $ 183,090 Equity component (1) $ 35,547 $ 35,547 (1) Recorded in the Consolidated Balance Sheets within additional paid-in capital. The following table sets forth total interest expense recognized related to the Convertible Notes: For the year ended December 31, 2019 2018 2017 3.375 % contractual coupon $ 7,256 $ 7,256 $ 7,232 Amortization of debt discount 4,891 4,588 4,290 Amortization of debt issuance costs 686 617 553 Additional interest on Convertible Notes (1) 1,370 — — Interest expense $ 14,203 $ 12,461 $ 12,075 (1) During the year ended December 31, 2019, additional nonrecurring interest expense was incurred pursuant to the notes’ indenture related to the removal of the restrictive legend and assignment of the unrestricted CUSIP on the Convertible Notes. Convertible Note Hedge In connection with the pricing of the Convertible Notes in December 2016 and January 2017, we entered into convertible note hedge transactions with respect to our Class A common stock (the “Note Hedge”) with three separate counterparties. The Note Hedge transactions cover approximately 8.63 million shares of our Class A common stock and are exercisable upon conversion of the Convertible Notes. The Note Hedge will expire on December 15, 2023, unless earlier terminated. The Note Hedge transactions have been accounted for as part of additional paid-in capital. Warrant Transactions In connection with entering into the Note Hedge transactions described above, we also concurrently entered into separate warrant transactions (the “Warrants”), to sell warrants to acquire approximately 8.63 million shares of our Class A common stock in connection with the Note Hedge transactions at an initial strike price of approximately $ 31.89 per share, which represented a premium of approximately 60.0 % over the last reported sale price of our Class A common stock of $ 19.93 on December 12, 2016 (initial issuance date of the Convertible Notes). The Warrants transactions have been accounted for as part of additional paid-in capital. |
Long-Term Debt And Credit Facil
Long-Term Debt And Credit Facility | 12 Months Ended |
Dec. 31, 2019 | |
Long-Term Debt And Credit Facility [Abstract] | |
Long-Term Debt And Credit Facility | 13. Long-Term Debt and Credit Facility Long-Term Debt I ncluded within Long-Term Debt are the following: As of December 31, December 31, 2019 2018 Current portion of long-term debt : Aircraft financing $ 3,218 $ 4,740 Mortgage 395 378 Total current portion of long-term debt 3,613 5,118 Long-term debt : Aircraft financing $ — $ 3,218 Mortgage 22,098 22,478 Total long-term debt 22,098 25,696 Total $ 25,711 $ 30,814 Mortgage In September 2016, the Company acquired real property and assumed future obligations under a loan agreement, dated June 8, 2015, in the principal amount of $ 23,000 , which loan is secured by a mortgage on the property. The loan bears interest at the rate of 4.50 % per annum and required monthly interest only payments of $ 86 until June 2018 and interest and principal payments of $ 117 per month thereafter, with a balloon payment on maturity on July 5, 2025 . There is a significant yield maintenance premium for prepayments. Pursuant to the loan agreement, since the assets of WWE Real Estate, a subsidiary of the Company, represent collateral for the underlying mortgage, these assets will not be available to satisfy debts and obligations due to any other creditors of the Company. As of December 31, 2019, the scheduled principal repayments under our mortgage obligation for the subsequent five years and the remaining term of the mortgage are as follows: December 31, 2020 $ 395 December 31, 2021 412 December 31, 2022 431 December 31, 2023 451 December 31, 2024 472 Thereafter 20,332 $ 22,493 Aircraft Financing In August 2013, the Company entered into a $ 31,568 promissory note (the “Aircraft Note”) with Citizens Asset Finance, Inc., for the purchase of a 2007 Bombardier Global 5000 aircraft and refurbishments. In August 2017, the Aircraft Note was assigned to Fifth Third Equipment Finance Company. The Aircraft Note bears interest at a rate of 2.18 % per annum, is payable in monthly installments of $ 406 , inclusive of interest, and has a final maturity of August 7, 2020 . The Aircraft Note is secured by a first priority perfected security interest in the purchased aircraft. As of December 31, 2019, the scheduled principal repayments under our Aircraft Note obligation for the subsequent year is as follows: December 31, 2020 $ 3,218 $ 3,218 The table above assumes that the Aircraft Note will not be prepaid prior to its maturity on August 7, 2020. Credit Facility Revolving Credit Facility On May 24, 2019, the Company entered into an amended and restated $ 200,000 senior unsecured revolving credit facility with a syndicated group of banks, with JPMorgan Chase Bank, N.A. acting as Administrative Agent (the “Amended and Restated Revolving Credit Facility”). The Amended and Restated Revolving Credit Facility replaced the previous $ 100,000 revolving credit facility and, among other things, extends the maturity date from July 29, 2021 to May 24, 2024 . Applicable interest rates for the borrowings under the Amended and Restated Revolving Credit Facility are based on the Company's current consolidated leverage ratio. As of December 31, 2019, the LIBOR-based rate plus margin was 3.16 %. The Company is required to pay a commitment fee calculated at a rate per annum of 0.175 % on the average daily unused portion of the Amended and Restated Revolving Credit Facility. Under the terms of the Amended and Restated Revolving Credit Facility, the Company is subject to certain financial covenants and restrictions, including restrictions on our ability to pay dividends and limitations with respect to our indebtedness, liens, mergers and acquisitions, dispositions of assets, investments, capital expenditures and transactions with affiliates. As of December 31, 2019, the Company was in compliance with the Amended and Restated Revolving Credit Facility, and had available debt capacity under the terms of the Amended and Restated Revolving Credit Facility of $ 200,000 . As of December 31, 2019 and 2018, there were no amounts outstanding under the Amended and Restated Revolving Credit Facility. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Taxes [Abstract] | |
Income Taxes | 14. Income Taxes For the years ended December 31, 2019, 2018 and 2017, the effective tax rate on income from continuing operations was 18.6 %, 6.1 % and 49.0 %, respectively. The components of our tax provision are as follows: Year Ended December 31, 2019 2018 2017 Current taxes: Federal $ ( 294 ) $ 81 $ 7,785 State and local 1,422 235 1,313 Foreign 7,028 7,191 8,750 Deferred taxes: Federal 8,015 ( 1,774 ) 13,177 State and local 1,412 737 396 Foreign 34 ( 21 ) ( 1 ) Total income tax expense $ 17,617 $ 6,449 $ 31,420 Within the current foreign tax provision for the years ended December 31, 2019, 2018 and 2017 is $ 7,587 , $ 7,350 and $ 8,453 , respectively, of foreign withholding taxes paid on income included within the US pre-tax book income below. The federal deferred tax provision for the year ended December 31, 2017 includes a charge of $ 10,878 associated with the remeasurement of our deferred tax assets due to the revised corporate tax rate as a result of the Tax Cuts and Jobs Act of 2017. Components of income before income taxes are as follows: Year Ended December 31, 2019 2018 2017 United States $ 92,701 $ 104,338 $ 62,280 Foreign 1,977 1,699 1,780 Total income before income taxes $ 94,678 $ 106,037 $ 64,060 The following sets forth the difference between the provision/(benefit) for income taxes computed at the U.S. federal statutory income tax rate of 21 % (for 2019 and 2018) and 35 % (for 2017) and that reported for financial statement purposes: Year Ended December 31, 2019 2018 2017 Statutory U.S. federal tax $ 19,880 $ 22,268 $ 22,421 State and local taxes, net of federal tax benefit 3,962 4,915 1,472 Foreign rate differential ( 53 ) ( 50 ) ( 298 ) Tax exempt interest income ( 16 ) ( 32 ) ( 86 ) Qualified production activity deduction — — ( 1,750 ) Nondeductible executive compensation 1,669 2,672 136 Unrecognized tax benefits ( 23 ) 46 ( 146 ) Meals and entertainment 261 233 317 Employee Stock Purchase Plan ( 87 ) 248 44 Deferred tax asset remeasurement — ( 111 ) 10,878 Deemed repatriation transition tax — ( 19 ) 406 Foreign-derived intangible income (FDII) ( 422 ) ( 1,346 ) — Global intangible low-taxed income (GILTI) 273 122 — Excess tax benefits related to the vesting of share-based compensation ( 9,394 ) ( 22,473 ) ( 1,604 ) Other 1,567 ( 24 ) ( 370 ) Provision for income taxes $ 17,617 $ 6,449 $ 31,420 The tax effects of temporary differences and net operating losses that give rise to significant portions of the deferred tax assets and deferred tax liabilities consisted of the following: As of December 31, 2019 2018 Deferred tax assets: Accounts receivable $ 110 $ 145 Inventory 1,702 1,329 Deferred income 1,555 1,932 Stock compensation 5,572 7,090 Net operating loss carryforward 1,080 1,103 Foreign tax credits 7,158 5,055 Investments 695 2,193 Intangible assets 1,750 1,619 Capitalized feature film production costs 1,410 1,418 Accrued liabilities and reserves 1,041 1,278 Lease obligations 7,951 — Federal benefit related to uncertain tax positions 40 108 Deferred tax assets, gross 30,064 23,270 Valuation allowance ( 1,080 ) ( 1,103 ) Deferred tax assets, net 28,984 22,167 Deferred tax liabilities: Property and equipment depreciation ( 12,509 ) ( 2,672 ) Deferred revenue ( 1,664 ) — Right-of-use assets ( 4,470 ) — Investments ( 3,124 ) ( 2,357 ) Deferred tax liabilities ( 21,767 ) ( 5,029 ) Total deferred tax assets, net $ 7,217 $ 17,138 The temporary differences described above represent differences between the tax basis of assets or liabilities and amounts reported in the consolidated financial statements that will result in taxable or deductible amounts in future years when the reported amounts of the assets or liabilities are recovered or settled. The Company received tax deductions from the vesting of restricted stock units and performance stock units of $ 65,885 , $ 115,792 and $ 21,457 in 2019, 2018 and 2017, respectively. As of December 31, 2019 and 2018, we had $ 7,217 and $ 17,138 , respectively, of deferred tax assets, net, included in our Consolidated Balance Sheets. The decrease in our net deferred tax asset balance was primarily driven by 100 % bonus depreciation, the change in valuation of various equity investments and method changes related to the new revenue recognition standard, partially offset by the impact of the adoption of the new lease standard. During the years ended December 31, 2019, 2018 and 2017, we recognized $ 9,394 , $ 22,473 and $ 1,604 , respectively, of excess tax benefits related to the Company’s share-based compensation awards at vesting. Income tax effects of vested awards are included within the provision for income taxes on the Consolidated Statements of Operations. The tax benefit recorded is driven by the increase in the Company’s stock price between the original grant date of the awards and their subsequent vesting date. The corresponding offset of these tax benefits is included as a component of Prepaid expenses and other current assets within our Consolidated Balance Sheets. Discrete tax items, including the aforementioned excess tax benefits, resulted in a net tax benefit of $ 7,919 and $ 22,650 during the years ended December 31, 2019 and 2018, respectively, and a net tax expense of $ 9,160 during the year ended December 31, 2017. Excluding these items, our effective tax rate was 27 %, 27 % and 35 % for the years ended December 31, 2019, 2018 and 2017, respectively. As of December 31, 2019 and 2018, we had valuation allowances of $ 1,080 and $ 1,103 respectively, to reduce our deferred tax assets to an amount more likely than not to be recovered. This valuation allowance relates to foreign income taxes and the resulting net operating losses in foreign jurisdictions where we have ceased operations. The Company considers all available evidence, both positive and negative, to determine whether, based on the weight of that evidence, a valuation allowance is required to reduce the net deferred tax assets to the amount that is more likely than not to be realized in future periods. The Company believes that based on past performance, expected future taxable income and prudent and feasible tax planning strategies, it is more likely than not that the net deferred tax assets will be realized. Changes in these factors may cause us to increase our valuation allowance on deferred tax assets, which would impact our income tax expense in the period we determine that these factors have changed. We are subject to periodic audits of our various tax returns by government agencies which could result in possible tax liabilities. Although the outcome of these matters cannot currently be determined, we believe the outcome of these audits will not have a material effect on our financial statements. Unrecognized Tax Benefits For the year ended December 31, 2019, we recognized $ 193 of previously unrecognized tax benefits. This primarily relates to the statute of limitations expiring in certain state and local jurisdictions. Included in the amount recognized was $ 8 of potential interest and penalties related to uncertain tax positions. For the year ended December 31, 2018, we recognized $ 108 of previously unrecognized tax benefits relating to the statute of limitations expiring in certain state and local jurisdictions. Included in the amount recognized was $ 15 of potential interest and penalties related to uncertain tax positions. The recognition of these amounts contributed to our effective tax rate of 18.6 % for the year ended December 31, 2019 as compared to 6.1 % for the year ended December 31, 2018. At December 31, 2019, we had $ 251 of unrecognized tax benefits, which if recognized, would affect our effective tax rate, which is classified in Other non-current liabilities. At December 31, 2018, we had $ 420 of unrecognized tax benefits, which is classified in Other non-current liabilities. Unrecognized tax benefit activity is as follows: Year Ended December 31, 2019 2018 Beginning Balance- January 1 $ 420 $ 389 Increase to unrecognized tax benefits recorded for positions taken during the current year 7 64 Increase to unrecognized tax benefits recorded for positions taken during a prior period 9 65 Decrease in unrecognized tax benefits relating to settlements with taxing authorities — ( 7 ) Decrease to unrecognized tax benefits resulting from a lapse of the applicable statute of limitations ( 185 ) ( 91 ) Ending Balance- December 31 $ 251 $ 420 We recognize potential accrued interest and penalties related to uncertain tax positions in income tax expense. We have $ 63 of accrued interest and $ 31 of accrued penalties related to uncertain tax positions as of December 31, 2019 classified in Other non-current liabilities. At December 31, 2018, we had $ 61 of accrued interest and $ 31 of accrued penalties related to uncertain tax positions classified in Other non-current liabilities. Based upon the expiration of statutes of limitations and possible settlements in several jurisdictions, we believe it is reasonably possible that the total amount of previously unrecognized tax benefits may decrease by $ 146 within 12 months after December 31, 2019. We file income tax returns in the United States and various state, local, and foreign jurisdictions. During 2019 and 2018, the Company settled audits with various state and local jurisdictions. We are generally subject to examination by the IRS for years ending on or after December 31, 2016. We are also subject to examination by various state and local jurisdictions for years ending on or after December 31, 2016. |
Film And Television Production
Film And Television Production Incentives | 12 Months Ended |
Dec. 31, 2019 | |
Film And Television Production Incentives [Abstract] | |
Film And Television Production Incentives | 15. Film and Television Production Incentives The Company has access to various governmental programs that are designed to promote film and television production within the United States of America and certain international jurisdictions. Incentives earned with respect to expenditures on qualifying film production activities and qualifying capital projects are recorded as an offset to the related asset balances. Incentives earned with respect to television and other production activities are recorded as an offset to production expenses. The Company recognizes these benefits when we have reasonable assurance regarding the realizable amount of the incentives. We recorded the following incentives during the years ended December 31, 2019, 2018 and 2017: Year Ended December 31, 2019 2018 2017 Television production incentives $ 13,539 $ 12,166 $ 11,260 Feature film production incentives 288 — 3,683 Infrastructure improvement incentives on qualifying capital projects 1,438 — — Total $ 15,265 $ 12,166 $ 14,943 |
Commitments And Contingencies
Commitments And Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments And Contingencies [Abstract] | |
Commitments And Contingencies | 16. Commitments and Contingencies We have certain commitments, including various service contracts with certain vendors and various talent. Our future commitments related to our operating and finance leases are separately disclosed in Note 8, Leases . Future minimum payments as of December 31, 2019 under the agreements described above were as follows: Service Contracts and Talent Commitments 2020 $ 28,836 2021 18,360 2022 11,941 2023 263 2024 262 Thereafter 177 Total $ 59,839 Legal Proceedings On October 23, 2014, a lawsuit was filed in the U. S. District Court for the District of Oregon, entitled William Albert Haynes III, on behalf of himself and others similarly situated, v. World Wrestling Entertainment, Inc. This complaint was amended on January 30, 2015 and alleged that the Company ignored, downplayed, and/or failed to disclose the risks associated with traumatic brain injuries suffered by WWE’s performers and seeks class action status. On March 31, 2015, the Company filed a motion to dismiss the first amended class action complaint in its entirety or, if not dismissed, to transfer the lawsuit to the U.S. District Court for the District of Connecticut. Without addressing the merits of the Company's motion to dismiss, the Court transferred the case to Connecticut on June 25, 2015. The plaintiffs filed an objection to such transfer, which was denied on July 27, 2015. On January 16, 2015, a second lawsuit was filed in the U.S. District Court for the Eastern District of Pennsylvania, entitled Evan Singleton and Vito LoGrasso, individually and on behalf of all others similarly situated, v. World Wrestling Entertainment, Inc. , alleging many of the same allegations as Haynes . On February 27, 2015, the Company moved to transfer venue to the U.S. District Court for the District of Connecticut due to forum-selection clauses in the contracts between WWE and the plaintiffs and that motion was granted on March 23, 2015. The plaintiffs filed an amended complaint on May 22, 2015 and, following a scheduling conference in which the court ordered the plaintiffs to cure various pleading deficiencies, the plaintiffs filed a second amended complaint on June 15, 2015. On June 29, 2015, WWE moved to dismiss the second amended complaint in its entirety. On April 9, 2015, a third lawsuit was filed in the U. S. District Court for the Central District of California, entitled Russ McCullough, a/k/a “Big Russ McCullough,” Ryan Sakoda, and Matthew R. Wiese a/k/a “Luther Reigns,” individually and on behalf of all others similarly situated, v. World Wrestling Entertainment, Inc. , asserting similar allegations to Haynes . The Company again moved to transfer the lawsuit to Connecticut due to forum-selection clauses in the contracts between WWE and the plaintiffs, which the California court granted on July 10, 2015. On September 21, 2015, the plaintiffs amended this complaint, and, on November 16, 2015, the Company moved to dismiss the amended complaint. Each of these suits sought unspecified actual, compensatory and punitive damages and injunctive relief, including ordering medical monitoring. The Haynes and McCullough cases purport to be class actions. On February 18, 2015, a lawsuit was filed in Tennessee state court and subsequently removed to the U.S. District Court for the Western District of Tennessee, entitled Cassandra Frazier, individually and as next of kin to her deceased husband, Nelson Lee Frazier, Jr., and as personal representative of the Estate of Nelson Lee Frazier, Jr. Deceased, v. World Wrestling Entertainment, Inc. A similar suit was filed in the U. S. District Court for the Northern District of Texas entitled Michelle James, as mother and next friend of Matthew Osborne, minor child, and Teagan Osborne, a minor child v. World Wrestling Entertainment, Inc. These lawsuits contain many of the same allegations as the other lawsuits alleging traumatic brain injuries and further allege that the injuries contributed to these former talents’ deaths. WWE moved to transfer the Frazier and Osborne lawsuits to the U.S. District Court for the District of Connecticut based on forum-selection clauses in the decedents’ contracts with WWE, which motions were granted by the respective courts. On November 23, 2015, amended complaints were filed in Frazier and Osborne , which the Company moved to dismiss on December 16, 2015 and December 21, 2015, respectively. On November 10, 2016, the Court granted the Company’s motions to dismiss the Frazier and Osborne lawsuits in their entirety. On June 29, 2015, the Company filed a declaratory judgment action in the U. S. District Court for the District of Connecticut entitled World Wrestling Entertainment, Inc. v. Robert Windham, Thomas Billington, James Ware, Oreal Perras and various John and Jane Does seeking a declaration against these former performers that their threatened claims related to alleged traumatic brain injuries and/or other tort claims are time-barred. On September 21, 2015, the defendants filed a motion to dismiss this complaint, which the Company opposed. The Court previously ordered a stay of discovery in all cases pending decisions on the motions to dismiss. On January 15, 2016, the Court partially lifted the stay and permitted discovery only on three issues in the case involving Singleton and LoGrasso. Such discovery was completed by June 1, 2016. On March 21, 2016, the Court issued a memorandum of decision granting in part and denying in part the Company’s motions to dismiss the Haynes, Singleton/LoGrasso, and McCullough lawsuits. The Court granted the Company’s motions to dismiss the Haynes and McCullough lawsuits in their entirety and granted the Company’s motion to dismiss all claims in the Singleton/LoGrasso lawsuit except for the claim of fraud by omission. On March 22, 2016, the Court issued an order dismissing the Windham lawsuit based on the Court’s memorandum of decision on the motions to dismiss. On April 4, 2016, the Company filed a motion for reconsideration with respect to the Court’s decision not to dismiss the fraud by omission claim in the Singleton/LoGrasso lawsuit and, on April 5, 2016, the Company filed a motion for reconsideration with respect to the Court dismissal of the Windham lawsuit. On July 21, 2016, the Court denied the Company’s motion in the Singleton/LoGrasso lawsuit and granted in part the Company’s motion in the Windham lawsuit. On April 20, 2016, the plaintiffs filed notices of appeal of the Haynes and McCullough lawsuits. On April 27, 2016, the Company moved to dismiss the appeals for lack of appellate jurisdiction, which motions were granted, and the appeals were dismissed with leave to appeal upon the resolution of all of the consolidated cases. The Company filed a motion for summary judgment on the sole remaining claim in the Singleton/LoGrasso lawsuit, which was granted on March 28, 2018. The Company also filed a motion for judgment on the pleadings against the Windham defendants. Lastly, on July 18, 2016, a lawsuit was filed in the U.S. District Court for the District of Connecticut, entitled Joseph M. Laurinaitis, et al. vs. World Wrestling Entertainment, Inc. and Vincent K. McMahon, individually and as the trustee of certain trusts . This lawsuit contains many of the same allegations as the other lawsuits alleging traumatic brain injuries and further alleges, among other things, that the plaintiffs were misclassified as independent contractors rather than employees denying them, among other things, rights and benefits under the Occupational Safety and Health Act (OSHA), the National Labor Relations Act (NLRA), the Family and Medical Leave Act (FMLA), federal tax law, and various state Worker’s Compensation laws. This lawsuit also alleges that the booking contracts and other agreements between the plaintiffs and the Company are unconscionable and should be declared void, entitling the plaintiffs to certain damages relating to the Company’s use of their intellectual property. The lawsuit alleges claims for violation of RICO, unjust enrichment, and an accounting against Mr. McMahon. The Company and Mr. McMahon moved to dismiss this complaint on October 19, 2016. On November 9, 2016, the Laurinaitis plaintiffs filed an amended complaint. On December 23, 2016, the Company and Mr. McMahon moved to dismiss the amended complaint. On September 29, 2017, the Court issued an order on the motion to dismiss pending in the Laurinaitis case and on the motion for judgment on the pleadings pending in the Windham case. The Court reserved judgment on the pending motions and ordered that within thirty-five (35) days of the date of the order the Laurinaitis plaintiffs and the Windham defendants file amended pleadings that comply with the Federal Rules of Civil Procedure. The Court further ordered that each of the Laurinaitis plaintiffs and the Windham defendants submit to the Court for in camera review affidavits signed and sworn under penalty of perjury setting forth facts within each plaintiff’s or declaratory judgment-defendant’s personal knowledge that form the factual basis of their claim or defense. On November 3, 2017, the Laurinaitis plaintiffs filed a second amended complaint. The Company and Mr. McMahon believe that the second amended complaint failed to comply with the Court’s September 29, 2017 order and otherwise remained legally defective for all of the reasons set forth in their motion to dismiss the amended complaint. Also on November 3, 2017, the Windham defendants filed a second answer. On November 17, 2017, the Company and Mr. McMahon filed a response that, among other things, urged the Court to grant the motion for judgment on the pleadings against the Windham defendants and dismiss the Laurinaitis plaintiffs’ complaint with prejudice and award sanctions against the Laurinaitis plaintiffs’ counsel because the amended pleadings failed to comply with the Court’s September 29, 2017 order and the Federal Rules of Civil Procedure. On September 17, 2018, the Court granted the motion to dismiss filed by the Company and Mr. McMahon in the Laurinaitis case in its entirety, awarded sanctions against the Laurinaitis plaintiffs’ counsel, and granted the Company’s motion for judgment on the pleadings against the Windham defendants. The plaintiffs have attempted to appeal these decisions. On November 16, 2018, the Company moved to dismiss all of the appeals, except for the appeal of the dismissal of the Laurinaitis case, for being filed untimely. On April 4, 2019, the Second Circuit issued an order referring the Company’s motions to dismiss to the panel that will determine the merits of the appeals. The plaintiffs-appellants’ opening brief was filed on July 8, 2019. The Company and Mr. McMahon filed their appellees’ brief on October 7, 2019. The plaintiffs-appellants filed a reply brief on October 28, 2019. The Company believes all claims and threatened claims against the Company in these various lawsuits were prompted by the same plaintiffs’ lawyer and that all are without merit. The Company intends to continue to defend itself against the attempt to appeal these decisions vigorously. In addition to the foregoing, from time to time we become a party to other lawsuits and claims. By its nature, the outcome of litigation is not known, but the Company does not currently expect this ordinary course litigation to have a material adverse effect on our financial condition, results of operations or liquidity. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 17. Related Party Transactions Vincent K. McMahon, Chairman of the Board of Directors and Chief Executive Officer, controls a substantial majority of the voting power of the issued and outstanding shares of our common stock. Through the beneficial ownership of a substantial majority of our Class B common stock, Mr. McMahon can effectively exercise control over our affairs. As previously announced, in April 2018, the Company entered into transactions with Alpha Entertainment, LLC (“Alpha”), an entity controlled by Vincent K. McMahon, granting Alpha rights to launch a professional football league under the name “XFL”. Under these agreements, WWE received, among other things, an equity interest in Alpha without payment by, or other financial obligation on the part of, WWE. The investment will be accounted for under the equity method of accounting. WWE’s equity interest in the net assets of Alpha at the transaction closing date on April 3, 2018 was insignificant. After Alpha’s formation, we recorded our proportionate share of Alpha’s reported net losses which exceeded the carrying amount of the investment and reduced the investment value to zero as of June 30, 2018. Subsequent losses after that date are not required or provided for, after which we will resume accounting for the investment under the equity method if Alpha subsequently has net income and our share of that net income exceeds the share of net losses we did not recognize during the period the equity method of accounting was suspended. In addition, WWE entered into a support services agreement to provide Alpha with certain administrative support services with such services billed to Alpha on a cost-plus margin basis. During the years ended December 31, 2019 and 2018, the Company billed Alpha $ 3,250 and $ 1,305 , respectively, for services rendered under the support services agreement. As of December 31, 2019 and 2018, the Company had $ 236 and $ 474 , respectively, of current receivables for amounts billed to Alpha. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2019 | |
Stockholders' Equity [Abstract] | |
Stockholders' Equity | 18. Stockholders’ Equity Stock Repurchase Program In February 2019, the Company’s Board of Directors authorized a stock repurchase program of up to $ 500,000 of our common stock. Repurchases may be made from time to time at management’s discretion subject to certain pre-approved parameters and in accordance with all applicable securities and other laws and regulations. The stock repurchase program does not obligate the Company to repurchase any minimum dollar amount or number of shares and may be modified, suspended or discontinued at any time. During the year ended December 31, 2019, the Company repurchased 1,398,385 shares of common stock in the open market at an average price of $ 59.67 for an aggregate amount of $ 83,441 . All share repurchases have been retired. As of December 31, 2019, $ 416,559 of common stock may be repurchased under the stock repurchase program announced in February 2019. Stock repurchases are accounted for under the cost method. All shares repurchased to date have been retired by the Company with no unsettled share repurchases as of December 31, 2019. When the Company retires its own common stock, the excess of the repurchase price over par value is allocated between additional paid-in capital and retained earnings, with certain limitations. The portion allocated to additional paid-in capital is determined by applying a percentage, determined by dividing the number of shares to be retired by the number of shares issued and outstanding as of the retirement date, to the balance of additional paid-in capital as of the retirement date. Direct costs incurred to repurchase the common stock were not material and were expensed in the period incurred. For the year ended December 31, 2019, $ 70,991 and $ 12,436 was deducted from retained earnings and additional paid-in capital, respectively, related to the common stock shares retired. Class B Convertible Common Stock Our Class B common stock is fully convertible into Class A common stock, on a one for one basis, at any time at the option of the holder. The two classes are entitled to equal per share dividends and distributions and vote together as a class with each share of Class B entitled to ten votes and each share of Class A entitled to one vote, except when separate class voting is required by applicable law. If, at any time, any shares of Class B common stock are beneficially owned by any person other than Vincent McMahon, Linda McMahon, any descendant of either of them, any entity which is wholly owned and is controlled by any combination of such persons or any trust, all the beneficiaries of which are any combination of such persons, each of those shares will automatically convert into shares of Class A common stock. During the years ended December 31, 2019, 2018 and 2017, Class B shares were sold, resulting in their conversion to Class A shares. Through his beneficial ownership of a substantial majority of our Class B common stock, our controlling stockholder, Vincent McMahon, can effectively exercise control over our affairs, and his interests could conflict with the holders of our Class A common stock. Dividends We declared and paid quarterly dividends of $ 0.12 per share, totaling $ 37,431 , $ 37,243 , and $ 36,854 on all Class A and Class B shares for the years ended December 31, 2019, 2018 and 2017, respectively. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Stock-Based Compensation [Abstract] | |
Stock-Based Compensation | 19. Stock-based Compensation Our 2016 Omnibus Incentive Plan (the “2016 Plan”) provides for the grant of incentive or non-qualified stock options, stock appreciation rights, restricted stock, restricted stock units, other stock-based awards and performance awards to eligible participants as determined by the Compensation Committee of the Board of Directors. Awards may be granted as incentives and rewards to encourage officers, employees, consultants, advisors and independent contractors of the Company and its affiliates and to non-employee directors of the Company to participate in our long-term success. As of December 31, 2019, there were approximately 3.3 million shares available for future grants under the 2016 Plan. It is our policy to issue new shares to satisfy option exercises and the vesting of RSUs, PSUs and PSU-TSRs. Stock-based compensation costs, which includes costs related to RSUs, PSUs and PSU-TSRs totaled $ 28,025 , $ 37,323 and $ 23,875 for the years ended December 31, 2019, 2018 and 2017, respectively. Restricted Stock Units The Company grants RSUs to officers and employees under the 2016 Plan. Stock-based compensation costs associated with our RSUs are determined using the fair market value of the Company's common stock on the date of the grant. These costs are recognized over the requisite service period using the graded vesting method, net of estimated forfeitures. RSUs have a service requirement typically over a 3.5 years vesting schedule and vest in equal annual installments. We estimate forfeitures based on historical trends when recognizing compensation expense and adjust the estimate of forfeitures when they are expected to differ or as forfeitures occur. Unvested RSUs accrue dividend equivalents at the same rate as are paid on our shares of Class A common stock. The dividend equivalents are subject to the same vesting schedule as the underlying RSUs. The following tables summarize the RSU activity for the year ended December 31, 2019: Units Weighted- Average Grant-Date Fair Value Unvested at January 1, 2019 409,665 $ 26.52 Granted 88,265 $ 83.01 Vested ( 200,793 ) $ 23.72 Forfeited ( 27,210 ) $ 41.60 Dividend equivalents 2,480 $ 29.04 Unvested at December 31, 2019 272,407 $ 45.41 Year Ended December 31, 2019 2018 2017 Tax benefits realized $ 13,813 $ 16,272 $ 2,920 Weighted-average grant-date fair value of RSUs granted 7,327 6,872 6,054 Fair value of RSUs vested 4,763 3,709 2,490 As of December 31, 2019, total unrecognized stock-based compensation expense related to unvested RSUs net of estimated forfeitures, was $ 6,247 before income taxes, and is expected to be recognized over a weighted-average period of approximately 1.6 years. Performance Stock Units The Company grants PSUs to officers and employees under the 2016 Plan. Stock-based compensation costs associated with our PSUs are initially determined using the fair market value of the Company's common stock on the date the awards are approved by our Compensation Committee (service inception date). The vesting of these PSUs are subject to certain performance conditions and a service requirement of typically 3.5 years. Until the performance conditions are met, stock compensation costs associated with these PSUs are re-measured each reporting period based upon the fair market value of the Company's common stock and the estimated performance attainment on the reporting date. The ultimate number of PSUs that are issued to an employee is the result of the actual performance of the Company at the end of the performance period compared to the performance conditions, and can range from 0 % to 200 % of the initial grant. Stock compensation costs for our PSUs are recognized over the requisite service period using the graded vesting method, net of estimated forfeitures. We estimate forfeitures based on historical trends when recognizing compensation expense and adjust the estimate of forfeitures when they are expected to differ or as forfeitures occur. Unvested PSUs accrue dividend equivalents once the performance conditions are met at the same rate as are paid on our shares of Class A common stock. The dividend equivalents are subject to the same vesting schedule as the underlying PSUs. The following tables summarize the PSU activity for the year ended December 31, 2019: Units Weighted- Average Grant-Date Fair Value Unvested at January 1, 2019 1,116,085 $ 39.98 Granted 155,872 $ 64.87 Achievement adjustment 297,061 $ 83.51 Vested ( 837,597 ) $ 38.83 Forfeited ( 16,344 ) $ 65.19 Dividend equivalents 6,321 $ 56.74 Unvested at December 31, 2019 721,398 $ 67.97 Year Ended December 31, 2019 2018 2017 Tax benefits realized $ 52,072 $ 99,520 $ 18,538 Weighted-average grant-date fair value of PSUs granted 10,111 27,635 16,833 Fair value of PSUs vested 32,523 24,591 15,301 During the year ended December 31, 2018 we granted 369,996 PSUs, which were subject to performance conditions. During the first quarter of 2019, it was determined that the performance conditions related to these PSUs were exceeded, which resulted in an achievement adjustment increase of 297,061 PSUs in 2019 relating to the initial 2018 PSU grant. As of December 31, 2019, total unrecognized stock-based compensation expense related to unvested PSUs, net of estimated forfeitures, was $ 16,633 before income taxes, and is expected to be recognized over a weighted-average period of approximately 1.3 years. Performance Stock Units with a Market Condition Tied to Relative Total Shareholder Return During the first quarter of 2018, the Compensation Committee approved certain agreements to grant PSU-TSRs with a market condition where vesting is conditioned upon the total shareholder return performance of the Company’s stock relative to the performance of a peer group over five distinct performance periods from 2018 through 2024. The payout for each performance period can vest at between 50 % and 175 % of the target award based on the percentile ranking of WWE’s total shareholder return performance with vesting capped at 100 % if WWE’s absolute total shareholder return is negative. The grant date fair value of the award was calculated using a Monte-Carlo simulation model which factors in the number of awards to be earned based on the achievement of the market condition. This model simulates the various stock price movements of the Company and peer group companies using certain assumptions, including the stock price of WWE and those of the peer group, stock price volatility, the risk-free interest rate, correlation coefficients, and expected dividend yield. The grant date fair value of the award totaled $ 16,168 and is being amortized as compensation cost over the requisite service period using the graded vesting method from March 2018 through July 2024. The following tables summarize the PSU-TSR activity for the year ended December 31, 2019: Units Weighted- Average Grant-Date Fair Value Unvested at January 1, 2019 340,971 $ 47.42 Granted — $ — Vested — $ — Unvested at December 31, 2019 340,971 $ 47.42 Year Ended December 31, 2019 2018 Tax benefits realized $ — $ — Weighted-average grant-date fair value of PSU-TSRs granted — 16,168 Fair value of PSU-TSRs vested — — As of December 31, 2019, total unrecognized stock-based compensation expense related to unvested PSU-TSRs, net of estimated forfeitures, was $ 1,855 before income taxes, and is expected to be recognized over a weighted-average period of approximately 3.3 years. Employee Stock Purchase Plan We provide a stock purchase plan for our employees. Under the plan, all eligible regular full-time employees may contribute up to 10 % of their base compensation (subject to certain dollar limits) to the semi-annual purchase of shares of our common stock. The purchase price is 85 % of the fair market value at certain plan-defined dates. As this plan is defined as compensatory, a charge is recorded to General and administrative expenses for the difference between the fair market value and the discounted price. During 2019, 2018 and 2017, employees purchased 34,001 , 65,255 and 72,882 shares of our common stock which resulted in an expense of $ 488 , $ 1,981 , and $ 276 , respectively. As of December 31, 2019, 1.5 million shares of the Company's common stock are available for issuance under the 2012 Employee Stock Purchase Plan. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2019 | |
Employee Benefit Plans [Abstract] | |
Employee Benefit Plans | 20. Employee Benefit Plans We sponsor a 401(k) defined contribution plan covering substantially all employees. Under this plan, participants are allowed to make contributions based on a percentage of their salary, subject to a statutorily prescribed annual limit. We make matching contributions of 50 % of each participant’s contributions, up to 6 % of eligible compensation. We may also make additional discretionary contributions to the 401(k) plan. Our expense for matching contributions to the 401(k) plan was $ 2,977 , $ 2,570 and $ 2,341 for the years ended December 31, 2019, 2018 and 2017, respectively. The Company did no t make any discretionary contributions for the years ended December 31, 2019, 2018 or 2017. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2019 | |
Segment Information [Abstract] | |
Segment Information | 21. Segment Information The Company currently classifies its operations into three reportable segments: Media, Live Events and Consumer Products. Segment information is prepared on the same basis that our chief operating decision maker manages the segments, evaluates financial results, and makes key operating decisions. Certain business support functions including sales and marketing, our international offices and talent development are allocated to the three reportable segments based primarily on a percentage of revenue contribution. The remaining unallocated corporate expenses largely relate to corporate functions such as finance, legal, human resources, facilities and information technology. The Company does not allocate these costs to its business segments, as they do not directly relate to revenue generating activities. These unallocated corporate expenses will be shown, as applicable, as a reconciling item in tables where segment and consolidated results are both shown. Revenues from transactions between our operating segments are not material. The Company presents Adjusted OIBDA as the primary measure of segment profit (loss). The Company defines Adjusted OIBDA as operating income before depreciation and amortization, excluding stock-based compensation, certain impairment charges and other non-recurring material items. Adjusted OIBDA includes amortization and depreciation expenses directly related to our revenue generating activities, including feature film and television production asset amortization, amortization of costs related to content delivery and technology assets utilized for our WWE Network, as well as amortization of right-of-use assts related to finance leases of equipment used to produce and broadcast our live events. The Company believes the presentation of Adjusted OIBDA is relevant and useful for investors because it allows investors to view our segment performance in the same manner as the primary method used by management to evaluate segment performance and make decisions about allocating resources. Additionally, we believe that Adjusted OIBDA is a primary measure used by media investors, analysts and peers for comparative purposes. We do not disclose assets by segment information. We do not provide assets by segment information to our chief operating decision maker, as that information is not typically used in the determination of resource allocation and assessing business performance of each reportable segment. The following tables present summarized financial information for each of the Company's reportable segments: Year Ended December 31, 2019 2018 2017 Net revenues: Media $ 743,099 $ 683,351 $ 535,570 Live Events 125,585 144,203 151,705 Consumer Products 91,758 102,606 113,684 Total net revenues $ 960,442 $ 930,160 $ 800,959 Depreciation and amortization: Media $ 12,592 $ 11,863 $ 11,884 Live Events — — — Consumer Products — — — Corporate 21,535 13,206 14,166 Total depreciation and amortization $ 34,127 $ 25,069 $ 26,050 Adjusted OIBDA: Media $ 224,136 $ 210,579 $ 141,625 Live Events 9,376 20,543 27,115 Consumer Products 28,559 28,376 37,727 Corporate ( 82,038 ) ( 80,647 ) ( 70,389 ) Total Adjusted OIBDA $ 180,033 $ 178,851 $ 136,078 Reconciliation of Total Operating Income to Total Adjusted OIBDA Year Ended December 31, 2019 2018 2017 Total operating income $ 116,510 $ 114,478 $ 75,578 Depreciation and amortization 34,127 25,069 26,050 Stock-based compensation 29,396 39,304 24,151 Other adjustments (1) — — 10,299 Total Adjusted OIBDA $ 180,033 $ 178,851 $ 136,078 (1) Other adjustments for the year ended December 31, 2017 include $ 5,586 of non-recurring legal matters and other contractual obligations, and $ 4,713 of certain impairment charges related to our feature films. Geographic Information Net revenues by major geographic region are based upon the geographic location of where our content is distributed. The information below summarizes net revenues to unaffiliated customers by geographic area: Year Ended December 31, 2019 2018 2017 North America $ 656,642 $ 612,322 $ 599,697 Europe/Middle East/Africa 223,471 237,196 125,639 Asia Pacific 67,493 69,064 61,568 Latin America 12,836 11,578 14,055 Total net revenues $ 960,442 $ 930,160 $ 800,959 The Company's property and equipment was almost entirely located in the United States at December 31, 2019 and 2018. During the years ended December 31, 2019 and 2018, there were two customers with revenues individually in excess of 10% of total consolidated net revenues. During the year ended December 31, 2017, there was one customer with revenues individually in excess of 10% of total consolidated net revenues. These revenues are primarily reflected in our Media segment. |
Concentration Of Credit Risk
Concentration Of Credit Risk | 12 Months Ended |
Dec. 31, 2019 | |
Concentration Of Credit Risk [Abstract] | |
Concentration Of Credit Risk | 22. Concentration of Credit Risk We continually monitor our position with, and the credit quality of, the financial institutions that are counterparties to our financial instruments. Our accounts receivable relate principally to a limited number of distributors, including our WWE Network, television, and pay-per-view distributors, and licensees. We closely monitor the status of receivables with these customers and maintain allowances for anticipated losses as deemed appropriate. At December 31, 2019 our largest receivable balance from customers was 49 % of our gross accounts receivable. At December 31, 2018, our largest receivable balance from customers was 30 % of our gross accounts receivable. No other customers individually exceeded 10 % of our gross accounts receivable balance. |
Selected Quarterly Financial In
Selected Quarterly Financial Information | 12 Months Ended |
Dec. 31, 2019 | |
Selected Quarterly Financial Information [Abstract] | |
Selected Quarterly Financial Information | 23. Selected Quarterly Financial Information (unaudited) 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 2019 (1) (3) (1) (2) (3) (1) (2) (3) (1) (2) (3) Net revenues $ 182,448 $ 268,809 $ 186,383 $ 322,802 Operating expenses $ 135,450 $ 197,363 $ 133,842 $ 171,544 Net income (loss) $ ( 8,396 ) $ 10,414 $ 5,790 $ 69,253 Net income (loss) per common share: basic $ ( 0.11 ) $ 0.13 $ 0.07 $ 0.89 2018 Net revenues $ 187,721 $ 281,542 $ 188,391 $ 272,506 Operating expenses $ 120,061 $ 198,891 $ 120,797 $ 169,433 Net income $ 14,835 $ 9,945 $ 33,590 $ 41,218 Net income per common share: basic $ 0.19 $ 0.13 $ 0.43 $ 0.55 (1) Operating expenses for the first, second, third and fourth quarter of 2019 includes impairment charges of $ 198 , $ 246 , $ 759 and $ 98 , respectively, related to certain of our feature films. Operating expenses for the first, second, third and fourth quarters of 2018 includes impairment charges of $ 925 , $ 563 , $ 1,325 and $ 2,052 , respectively, related to certain of our feature films. See Note 9, Feature Film Production Assets , for further discussion. (2) Net income for the second, third and fourth quarters of 2019 includes a benefit of $ 669 , $ 12,498 and $ 372 , respectively, related to television production incentives. Net income for the third and fourth quarters of 2018 includes a benefit of $ 11,702 and $ 464 , respectively, related to television production incentives. (3) Net income for the second quarter of 2019 includes a $ 1,151 investment gain related to favorable observable price adjustments related to two of our nonmarketable equity securities. Net income for the first, second, third and fourth quarters of 2019 includes unrealized holding losses of $ 194 , $ 3,597 , $ 568 and $ 85 , respectively, on a marketable equity security. Net income for the second and fourth quarters of 2018 includes impairment charges of $ 3,000 and $ 773 , respectively, related to our nonmarketable equity investments. Net income for the third quarter of 2018 includes a $ 2,181 investment gain related to a favorable observable price adjustment related to a nonmarketable equity investment. Net income for the fourth quarter of 2018 includes a $ 2,474 favorable mark-to-market adjustment on a marketable equity security. See Note 5, Investment Securities and Short-Term Investments , for further discussi on. |
Valuation And Qualifying Accoun
Valuation And Qualifying Accounts | 12 Months Ended |
Dec. 31, 2019 | |
Valuation And Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts | W ORLD WRESTLING ENTERTAINMENT, INC. SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS (in thousands) Charges to Balance at Expense/ Beginning Against Deductions/ Balance at Description of Year Revenues Adjustments * End of Year For the Year Ended December 31, 2019 Allowance for doubtful accounts $ 651 $ 31 $ ( 263 ) $ 419 Home video allowance for returns 343 — 6 349 Allowance for WWE Network refunds and chargebacks 15 410 ( 375 ) 50 For the Year Ended December 31, 2018 Allowance for doubtful accounts $ 1,342 $ ( 388 ) $ ( 303 ) $ 651 Home video allowance for returns 1,662 129 ( 1,448 ) 343 Allowance for WWE Network refunds and chargebacks 30 230 ( 245 ) 15 For the Year Ended December 31, 2017 Allowance for doubtful accounts $ 5,945 $ 537 $ ( 5,140 ) $ 1,342 Home video allowance for returns 2,273 6,890 ( 7,501 ) 1,662 Allowance for WWE Network refunds and chargebacks 40 353 ( 363 ) 30 * Includes deductions which are comprised primarily of write-offs of specific bad debts and returns of products, as well as certain adjustments to the allowance account, including reserves for amounts due from customers that have not been recognized as revenue. |
Summary Of Significant Accoun_2
Summary Of Significant Accounting Policies (Policy) | 12 Months Ended |
Dec. 31, 2019 | |
Summary Of Significant Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires our management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. |
Basis of Consolidation | Basis of Consolidation — The consolidated financial statements include the accounts of WWE and all of its domestic and foreign subsidiaries. Included in Corporate are intersegment eliminations recorded in consolidation. All intercompany accounts and transactions have been eliminated in consolidation. |
Cash and Cash Equivalents | Cash and Cash Equivalents — Cash and cash equivalents include cash on deposit in overnight deposit accounts, investments in Treasury bills and investments in money market accounts with original maturities of three months or less at the time of purchase. |
Short-term Investments, Net | Short-term Investments, Net — Our short-term investments consist of available-for-sale debt securities. Such investments consist of U.S. Treasury securities, corporate and municipal bonds, including pre-refunded municipal bonds, and government agency bonds. These investments are stated at fair value, with unrealized gains and losses on such securities reflected, net of tax, as other comprehensive income (loss) in stockholders’ equity. Realized gains and losses on investments are included in earnings and are derived using the specific identification method for determining the cost of securities sold. |
Accounts Receivable, Net | Accounts Receivable, Net — Accounts receivable relate principally to amounts due to us from distributors of our content, as well as from licensees that produce consumer products containing our intellectual property and/or trademarks. We estimate the collectability of our receivables and establish allowances for the amount of accounts receivable that we estimate to be uncollectible. We base these allowances on our historical collection experience, the length of time our accounts receivable are outstanding and the financial condition of individual customers. An individual balance is charged to the allowance when all collection efforts have been exhausted and it is deemed likely to be uncollectible, taking into consideration the financial condition of the customer and other factors. |
Inventory | Inventory — Inventory consists of merchandise sold on our websites and on distribution platforms, including Amazon, and merchandise sold at live events. Substantially all of our inventory is comprised of finished goods. Inventory is stated at the lower of cost or net realizable value. The valuation of our inventories requires management to make market estimates assessing the quantities and the prices at which we believe the inventory can be sold. |
Property and Equipment, Net | Property and Equipment, Net — Property and equipment are carried at historical cost net of benefits associated with tax incentives less accumulated depreciation and amortization. Depreciation and amortization is computed on a straight-line basis over the estimated useful lives of the assets or, when applicable, the life of the lease, whichever is shorter. Vehicles and equipment are depreciated based on estimated useful lives varying from three to five years. Buildings and related improvements are depreciated based on estimated useful lives varying from five years to thirty-nine years . Our corporate aircraft is depreciated over ten years on a straight-line basis less an estimated residual value. |
Leases | Leases — The Company determines if a contract contains a lease at the inception of the arrangement. The Company has elected the short-term lease exemption, whereby leases with initial terms of one year or less are not capitalized and instead expensed generally on a straight-line basis over the lease term. The depreciable life of the underlying leased assets are generally limited to the expected lease term inclusive of any optional lease terms where we conclude at the inception of the lease that we are reasonably certain of exercising those renewal options. The Company is primarily a lessee with a lease portfolio comprised mainly of real estate and equipment leases. Operating and finance lease assets are included on our consolidated balance sheets in non-current assets as an operating or finance right-of-use asset. Operating and finance lease liabilities are included on our consolidated balance sheets in non-current liabilities for the portion that is due on a long-term basis and in current liabilities for portion that is due within 12 months of the financial statement date. The right-of-use assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Right-of-use assets and lease liabilities are recognized at the commencement date of the lease based on the present value of lease payments over the lease term using an appropriate discount rate. Since the implicit rate is not readily available for our leases, we use our incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The right-of-use asset also may include any initial direct costs paid and is reduced by any lease incentives provided by the lessor. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for lease payments is recognized on a straight-line basis over the lease term for our operating leases and for our finance leases, we record interest expense on the lease liability and straight-line amortization of the right-of-use asset over the lease term. |
Feature Film Production Assets, Net | Feature Film Production Assets, Net — Feature film production assets are recorded at the cost of production, including production overhead and net of production incentives. The costs for an individual film are amortized in the proportion that revenues bear to management’s estimates of the ultimate revenue expected to be recognized from exploitation, exhibition or sale. Unamortized feature film production assets are evaluated for impairment each reporting period. We review and revise estimates of ultimate revenue and participation costs at each reporting period to reflect the most current information available. If estimates for a film’s ultimate revenues and/or costs are revised and indicate a significant decline in a film’s profitability or if events or circumstances change that indicate we should assess whether the fair value of a film is less than its unamortized film costs, we calculate the film's estimated fair value using a discounted cash flows model. If fair value is less than the unamortized cost, the film is written down to fair value. Impairment charges are recorded as an increase in amortization expense included in Operating expenses in the Consolidated Statements of Operations. Our estimate of ultimate revenues for feature films includes revenues from all sources for ten years from the date of a film’s initial release. We estimate the ultimate revenues based on industry and Company specific trends, the historical performance of similar films, the star power of the lead actors, and the genre of the film. Prior to the release of a feature film and throughout its life, we revise our estimates of revenues based on expected future results, actual results and other known factors affecting the various distribution markets. |
Television Production Assets, Net | Television Production Assets, Net — Television production assets consist primarily of non-live event episodic television series we have produced for distribution through a variety of platforms including on our WWE Network. Amounts capitalized include development costs, production costs, production overhead and employee salaries. Costs to produce episodic programming for television or distribution on WWE Network are amortized in the proportion that revenues bear to management's estimates of the ultimate revenue expected to be recognized from exploitation, exhibition or sale. Costs to produce our live event programming are expensed when the event is first broadcast and are not included in the capitalized costs or in the related amortization. Unamortized television production assets are evaluated for impairment each reporting period. If conditions indicate a potential impairment, and the estimated future cash flows are not sufficient to recover the unamortized asset, the asset is written down to fair value. In addition, if we determine that a program will not likely air, we expense the remaining unamortized asset. |
Valuation of Long-Lived Assets | Valuation of Long-Lived Assets — We periodically evaluate the carrying amount of long-lived assets for impairment when events and circumstances warrant such a review. |
Investment Securities | Investment Securities — Equity investments that are marketable and have a readily determinable fair value are carried at fair value with changes in the fair value recorded through income and reflected in Other income, net in the Consolidated Statements of Operations. For nonmarketable equity securities (those without a readily determinable fair value), the Company elected to apply the practicality exception to apply fair value measurement, under which such securities will be measured at cost, less impairment, plus or minus observable price changes for identical or similar securities of the same issuer with such changes recorded in Other income, net in the Consolidated Statements of Operations. For equity investments where the Company does not control the investee, and where it is not the primary beneficiary of a variable interest entity, but can exert significant influence over the financial and operating policies of the investee, the Company applies the equity method of accounting. Under the equity method of accounting, the Company’s share of the investee’s underlying net income or loss is recorded as investment income or loss within Other income, net in the Consolidated Statements of Operations, and is also included, net of cash dividends received, in Equity in earnings of affiliate, net of dividends received, in the Consolidated Statements of Cash Flows. Dividend distributions received from the investee reduces the Company’s carrying value of the investee and the cost basis if deemed a return of capital. Nonmarketable equity securities and equity method investments are also subject to periodic impairment evaluations, and when factors indicate that a significant decrease in value has occurred. Factors considered in making such assessments may include near-term prospects of the investees, subsequent rounds of financing activities of the investees, and the investees’ capital structure as well as other economic variables, which reflect assumptions market participants may use in pricing these assets. If an equity method investment is deemed to have experienced an other-than-temporary decline below its carrying amount, we reduce the carrying amount of the equity method investment to its quoted or estimated fair value, as applicable, and establish a new carrying amount for the investment. For nonmarketable equity securities that are accounted for under the measurement alternative to fair value, the Company applies the impairment model that does not require the Company to consider whether the impairment is other-than-temporary. We record these impairment charges on our equity investments in Other income, net in the Consolidated Statements of Operations. |
Income Taxes | Income Taxes — Deferred tax liabilities and assets are recognized for the expected future tax consequences of events that have been reflected in the consolidated financial statements. Amounts are determined based on the differences between the book and tax bases of particular assets and liabilities and operating loss carry forwards, using tax rates in effect for the years in which the differences are expected to reverse. A valuation allowance is provided to offset deferred tax assets if, based upon the available evidence, it is more-likely-than-not that some or all of the deferred tax assets will not be realized. In evaluating our ability to recover our deferred tax assets within the jurisdiction from which they arise, we consider all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax-planning strategies, and results of recent operations. If we determine that we would be able to realize our deferred tax assets in the future in excess of their net recorded amount, we would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes, conversely, if we determine we might not be able to realize our deferred tax assets we would record a valuation allowance which would result in a charge to the provision for income taxes. We use a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate tax positions taken or expected to be taken in a tax return by assessing whether they are more likely than not sustainable, based solely on their technical merits, upon examination, and including resolution of any related appeals or litigation process. The second step is to measure the associated tax benefit of each position, as the largest amount that we believe is more likely than not realizable. Differences between the amount of tax benefits taken or expected to be taken in our income tax returns and the amount of tax benefits recognized in our financial statements represent our unrecognized income tax benefits, which we record as a liability. Our policy is to include interest and penalties related to unrecognized income tax benefits as a component of income tax expense. |
Revenue Recognition | Revenue Recognition — The Company adopted new accounting pronouncements in 2018 related to revenue recognition. See the discussion in Recent Accounting Pronouncements below and Note 4, Revenues , for further details. Under the new revenue recognition rules adopted in 2018, most of our sales revenue continues to be recognized when products are shipped or as services are performed and was not materially impacted by the adoption of the new revenue recognition standard. Revenues are generally recognized when control of the promised goods or services is transferred to our customers either at a point in time or over time, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. Most of our contracts have one performance obligation and all consideration is allocated to that performance obligation. In contracts that have multiple performance obligations which may include the production of live events, content broadcast rights, and advertising and sponsorship rights, we allocate the transaction price to each identified performance obligation based upon their relative standalone selling price. The standalone selling prices are determined using observable standalone selling prices when available as well as estimates of standalone selling prices using adjusted market assessment and expected cost plus margin approaches to estimate the price for individual components. Our revenues do not include material estimated amounts of variable consideration. The variable consideration contained in our contracts relate primarily to sales or usage-based royalties earned on consumer product licensing contracts. The variability related to these sales or usage-based royalties will be resolved in the periods when the licensee generates sales related to the intellectual property license. As it relates to our Consumer Products segment, the Company accounts for shipping and handling activities as fulfillment activities. We derive our revenues principally from the following sources: (i) content rights fees associated with the distribution of WWE’s media content, (ii) subscriptions to WWE Network, (iii) fees for viewing our pay-per-view programming, (iv) feature film distribution, (v) advertising and sponsorship sales, (vi) live event ticket sales, (vii) consumer product licensing royalties from the sale by third-party licensees of WWE branded merchandise, (viii) direct-to-consumer sales of merchandise at our live event venues, and (ix) direct-to-consumer sales of our merchandise through eCommerce platforms. The below describes our revenue recognition policies in further detail for each major revenue source of the Company. Content rights fees: Rights fees received from distributors of our programming, both domestically and internationally, are recorded when the program (functional intellectual property) has been delivered and control has been transferred to the distributor and the license period has begun. Any advance payments received from the distributors are deferred upon collection and recognized into revenue as content is delivered. Our content rights distribution agreements are generally between one year and five years in length and frequently provides for contractual increases over its term. WWE Network Subscriptions: Revenues from the sale of subscriptions to WWE Network are recognized ratably over each paid monthly membership period. Deferred revenues consist of subscription fees billed to members that have not been recognized and gift memberships that have not been redeemed. Pay-per-view programming: Revenues from our pay-per-view programming are recorded when the event is aired/performed and are based upon our initial estimate of the number of buys achieved. This initial estimate is based on preliminary buy information received from our pay-per-view distributors. These estimates are updated each reporting period based on the latest information available. Advertising and sponsorships: Through our sponsorship packages, we offer advertisers a full range of our promotional vehicles, including online and print advertising, on-air announcements and special appearances by our Superstars. We allocate the transaction price to all performance obligations contained within a sponsorship and advertising arrangement based upon their relative standalone selling price. Standalone selling prices are determined generally based on a rate card used to determine pricing for individual components. Revenues are recognized as each performance obligation is satisfied, which generally occurs when the sponsorship and advertising is aired, exhibited, performed or played on the applicable WWE platform. We are generally the principal in our advertising and sponsorship arrangements because we control the advertising and sponsorship inventory before it is transferred to our customers. Our control is evidenced by our sole ability to monetize the advertising and sponsorship inventory and being primarily responsible to our customers. Live event ticket sales: Revenues from our live event ticket sales are recognized upon the occurrence of the related live event. Consumer product licensing royalties: Licensing revenues consist principally of royalties or license fees related to various WWE themed products, such as video games, toys and apparel, which are created using WWE brands and marks (symbolic intellectual property). Revenues from our licensed products are recognized in the period of the underlying product sales based on estimates from licensees and adjustments to the estimated amounts are recorded when final statements are received. The estimates are derived from the best available recent information from our licensees of underlying sales performance and represents the most likely amount of revenues expected. Any upfront license fees or minimum guarantees received from the licensee are deferred upon collection and recognized into revenue over the contract term as the amounts are earned. Direct-to-consumer venue merchandise sales: Direct-to-consumer merchandise sales consist of sales of merchandise at our live events. Revenues are recognized at the point of sale, as control is transferred to the customer. Direct-to-consumer eCommerce sales: Direct-to-consumer eCommerce revenues consist of sales of merchandise on our websites, including through our WWEShop Internet storefront and on distribution platforms, including Amazon. Revenues are recognized at a point in time, as control is transferred to the customer upon shipment. |
Operating Expenses | Operating Expenses — Operating expenses consist of our production costs associated with developing our content, costs associated with operating our WWE Network, venue rental and related costs associated with the staging of our live events, compensation costs for our talent, and material and related costs associated with our consumer product merchandise sales. In addition, operating expenses include certain business operating support function costs, including our talent development, data analytics, data engineering, business strategy and real estate and facilities functions, as these activities directly support the operations of our segments. Included within operating expenses are the following depreciation and amortization expenses: Amortization and impairment of feature film production assets: We amortize feature film production assets based on the estimated future cash flows. Unamortized feature film production assets are evaluated for impairment each reporting period. Amortization and impairment of television production assets: Television production assets consist primarily of non-live event episodic television series we have produced for distribution through a variety of platforms, including on our WWE Network. Costs to produce episodic programming for television or distribution on WWE Network are amortized in the proportion that revenues bear to management's estimates of the ultimate revenue expected to be recognized from exploitation, exhibition or sale. Unamortized television production assets are evaluated for impairment each reporting period. Program amortization for WWE Network is included in operating expenses as a component of amortization of television production assets. For episodic programming debuting and currently expected to air exclusively on WWE Network, the cost of the programming is expensed upon initial release, as the vast majority of viewership occurs in close proximity to the initial release. Amortization of costs related to content delivery and technology assets utilized for our WWE Network: These costs are amortized on a straight-line basis over the shorter of the expected useful life or the term of the respective assets. Amortization of right-of-use assets on finance leases of equipment: The amortization expense associated with the right-of-use assets pertain predominantly to equipment utilized to produce and distribute our live event programming and are therefore included in operating expenses. Depreciation on equipment used directly in revenue generating activities: We capitalize equipment consisting primarily of television set components and related equipment that is utilized as part of our programming content. These assets are depreciated over their respected estimated useful lives. The following table presents the depreciation and amortization expense amounts included within Operating expenses for the periods presented: Year Ended December 31, 2019 2018 2017 Amortization and impairment of feature film assets $ 5,718 $ 8,822 $ 17,377 Amortization of television production assets 29,990 29,568 21,137 Amortization of WWE Network content delivery and technology assets 5,317 6,696 5,970 Amortization of right-of-use assets - finance leases of equipment 8,020 — — Depreciation on equipment used directly in revenue generating activities 108 — — Total depreciation and amortization included in operating expenses $ 49,153 $ 45,086 $ 44,484 Costs to produce our live event programming are expensed when the event is first broadcast, and are not included in the depreciation and amortization table noted above. |
Marketing And Selling Expenses | Marketing and Selling Expenses – Marketing and selling expenses consist of costs associated with the promotion and marketing of our services and products. These expenses include advertising and promotional costs, and the costs associated with our sales and marketing functions, creative services functions and our international offices. |
General And Administrative Expenses | General and Administrative Expenses – General and administrative expenses include costs associated with our corporate administrative functions, including finance, investor relations, community relations, corporate communications, information technology, legal, human resources and our Board of Directors. The Company does not allocate these costs to its business segment, as they do not directly relate to revenue generating activities. |
Film and Television Production Incentives | Film and Television Production Incentives — The Company has access to various governmental programs that are designed to promote film and television production within the United States and certain international jurisdictions. Tax credits earned with respect to expenditures on qualifying film, television and other production activities, including qualifying capital projects, are included as an offset to the related asset or as an offset to production expenses when we have reasonable assurance regarding the realizable amount of the tax credits. |
Advertising Expense | Advertising Expense — Advertising costs are expensed as incurred, except for costs related to the development of a major commercial or media campaign, which are expensed in the period in which the commercial or campaign is first presented. For the years ended December 31, 2019, 2018 and 2017, we recorded advertising expenses of $ 21,165 , $ 21,563 and $ 23,629 , respectively. |
Foreign Currency Translation | Foreign Currency Translation — For the translation of the financial statements of our foreign subsidiaries whose functional currencies are non-U.S. Dollars, assets and liabilities are translated at the year-end exchange rate, and income statement accounts are translated at monthly average exchange rates for the year. The resulting translation adjustments are recorded in accumulated other comprehensive income, a component of stockholders’ equity and also in comprehensive income. Foreign currency transactions are recorded at the exchange rate prevailing at the transaction date, with any gains/losses recorded in other income/expense. |
Stock-Based Compensation | Stock-Based Compensation — Equity awards are granted to directors, officers and employees of the Company. Stock-based compensation costs associated with our restricted stock units ("RSUs") are determined using the fair market value of the Company's common stock on the date of the grant. These costs are recognized over the requisite service period using the graded vesting method, net of estimated forfeitures. RSUs have a service requirement typically over a 3.5 years vesting schedule and vest in equal annual installments. Unvested RSUs accrue dividend equivalents at the same rate as are paid on our shares of Class A common stock. The dividend equivalents are subject to the same vesting schedule as the underlying RSUs. Stock-based compensation costs associated with our performance stock units ("PSUs") are initially determined using the fair market value of the Company's common stock on the date the awards are approved by our Compensation Committee (service inception date). The vesting of these PSUs are subject to certain performance conditions and a service requirement of typically 3.5 years. Until such time as the performance conditions are met, stock compensation costs associated with these PSUs are re-measured each reporting period based upon the fair market value of the Company's common stock and the estimated performance attainment on the reporting date. The ultimate number of PSUs that are issued to an employee is the result of the actual performance of the Company at the end of the performance period compared to the performance conditions. Stock compensation costs for our PSUs are recognized over the requisite service period using the graded vesting method, net of estimated forfeitures. Unvested PSUs accrue dividend equivalents once the performance conditions are met at the same rate as are paid on our shares of Class A common stock. The dividend equivalents are subject to the same vesting schedule as the underlying PSUs. In 2018, the Compensation Committee approved certain agreements to grant PSUs with a market condition (“PSU-TSRs”), where vesting is conditioned upon the total shareholder return performance of WWE stock relative to the total shareholder return performance of a peer group over specified performance periods. The fair value of these market-based awards are estimated on the date of grant using the Monte Carlo simulation valuation model. The Compensation costs associated with these types of awards are recognized over the requisite service period using the graded vesting method. We estimate forfeitures, based on historical trends when recognizing compensation expense and adjust the estimate of forfeitures when they are expected to differ or as forfeitures occur. |
Earnings Per Share (EPS) | Earnings Per Share (EPS) — Basic EPS is calculated by dividing net income by the weighted average common shares outstanding during the period. Diluted EPS is calculated by dividing net income by the weighted average common shares outstanding during the period, plus dilutive potential common shares which is calculated using the treasury-stock method. Under the treasury-stock method, potential common shares are excluded from the computation of EPS in periods in which they have an anti-dilutive effect. Net income per share of Class A and Class B common stock is computed in accordance with a two-class method of earnings allocation. As such, any undistributed earnings for each period are allocated to each class of common stock based on the proportionate share of cash dividends that each class is entitled to receive. During 2019, 2018 and 2017, the dividends declared and paid per share of Class A and Class B common stock were the same. |
Treasury Stock Retirement | Treasury Stock Retirement — The Company accounts for treasury stock transactions using the cost method. All share repurchases to date have been retired by the Company. When the Company retires its own common stock, the excess of the repurchase price of the common stock over the par value of the common stock is allocated between additional paid-in capital and retained earnings. The portion allocated to additional paid-in capital is determined by applying a percentage, determined by dividing the number of shares to be retired by the number of shares issued and outstanding as of the retirement date, to the balance of additional paid-in capital as of the retirement date. Direct costs incurred to repurchase the common stock are not material and are expensed in the period incurred. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In March 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2019-02, “ Improvements to Accounting for Costs of Films and License Agreements for Program Materials .” The amendments in this ASU align the accounting for production costs of an episodic television series with the accounting for production costs of films. In addition, the ASU modifies certain aspects of the capitalization, impairment, presentation and disclosure requirements under the current film and broadcaster entertainment industry guidance. The new guidance is effective for interim and annual reporting periods starting in fiscal year 2020, with early adoption permitted. The new guidance will be applied on a prospective basis. The Company does not expect the adoption of the amendments to have a material impact on its consolidated financial statements. In November 2018, the FASB issued ASU No. 2018-18, “ Collaborative Arrangements (Topic 808) – Clarifying the Interaction between Topic 808 and Topic 606 .” The amendments in this ASU clarifies that certain transactions between collaborative arrangement participants should be accounted for as revenue under Topic 606, Revenue from Contracts with Customers, when the collaborative arrangement participant is a customer in the context of a unit of account and precludes recognizing as revenue consideration received from a collaborative arrangement participant if the participant is not a customer. The new guidance is effective for interim and annual reporting periods starting in fiscal year 2020 for the Company, with early adoption permitted. The new guidance should be applied retrospectively to the date of initial application of the new revenue guidance in Topic 606 (January 1, 2018 for the Company). The Company does not expect the adoption of the amendments to have a material impact on its consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-15, “ Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract .” The new guidance aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The accounting for the service element of a hosting arrangement that is a service contract is not affected by the amendments in this update. The new guidance is effective for interim and annual reporting periods starting in fiscal year 2020 for the Company, with early adoption permitted. The new guidance should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. The Company expects to adopt the new guidance prospectively and does not expect the adoption to have a material impact on its consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13, “ Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement ”, which modifies the disclosure requirements on fair value measurements. The new guidance is effective for interim and annual reporting periods starting in fiscal year 2020 for the Company. Upon the effective date, certain provisions are to be applied prospectively, while others are to be applied retrospectively to all periods presented. An entity is permitted to early adopt any removed or modified disclosures upon issuance of this ASU and delay adoption of the additional disclosures until their effective date. We are currently evaluating the impact of the amendments on our consolidated financial statement disclosures. Since the amendments impact only disclosure requirements, we do not expect the amendments to have an impact on our consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, “ Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ” (“ASU 2016-13”), which requires an entity to assess impairment of its financial instruments based on its estimate of expected credit losses. Since the issuance of ASU 2016-13, the FASB released several amendments to improve and clarify the implementation guidance. The provisions of ASU 2016-13 and the related amendments are effective for fiscal years (and interim reporting periods within those years) beginning after December 15, 2019. Entities are required to apply these changes through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. We will adopt the amendments as required in fiscal 2020. We are currently completing our evaluations of the impact of the amendments on our consolidated financial statements and have determined that the amendments primarily impact our accounts receivable and available-for-sale debt securities. In February 2016, the FASB issued ASU No. 2016-02, “ Leases (Topic 842) ,” which supersedes existing guidance for lease accounting. This new standard requires lessees to recognize leases on their balance sheets, and leaves lessor accounting largely unchanged. The new standard requires a dual approach for lessee accounting under which a lessee accounts for leases as finance leases or operating leases with the recognition of a right-of-use asset and a corresponding lease liability. For finance leases, the lessee recognizes interest expense and amortization of the right-of-use asset, and for operating leases, the lessee recognizes straight-line lease expense. The new lease accounting standard along with the clarifying amendments subsequently issued by the FASB, collectively became effective for the Company on January 1, 2019. The Company adopted the new lease accounting standard by applying the new lease guidance at the adoption date on January 1, 2019, and as allowed under the standard, elected not to restate comparative periods. There was no cumulative-effect adjustment recorded in connection with our adoption. In addition, we elected the package of practical expedients permitted under the transition guidance within the new standard. We did not elect the hindsight practical expedient to determine the lease term for existing leases. As of January 1, 2019, in connection with the adoption of the new lease accounting standard, the Company recorded a right-of-use lease asset totaling $ 39,266 with a corresponding lease liability totaling $ 40,458 . Refer to Note 8, Leases , for further details on our adoption of the new standard. In January 2016, the FASB issued ASU No. 2016-01, “ Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities ,” as amended by ASU No. 2018-03, “ Technical Corrections and Improvements to Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities ,” issued in February 2018. The FASB also issued subsequent clarifying amendments during the first quarter of 2018. The Company’s investment portfolio consists of available-for-sale debt securities that are classified in Short-term investments, net on the Consolidated Balance Sheets. In addition, the Company also has Investment securities on our Consolidated Balance Sheets comprised of both nonmarketable and marketable equity securities and equity investments accounted for under the equity method of accounting. The new guidance requires that most equity investments be measured at fair value, with subsequent changes in fair value recognized in net income (other than those accounted for under equity method of accounting). Under the new guidance, entities are required to record unrealized holding gains and losses on marketable equity securities through income (previous rules allowed this to be recorded through other comprehensive income). However, any unrealized holding gains and losses related to available-for-sale debt securities will continue to be recorded through accumulated other comprehensive income. The new guidance also no longer allows the use of the cost method of accounting for nonmarketable equity securities without readily determinable fair values. However, for these nonmarketable equity investments, entities may elect a measurement alternative to fair value that will allow those investments to be recorded at cost, less impairment, and adjusted for subsequent observable price changes. The new guidance, along with the clarifying amendments, were adopted on January 1, 2018 and the Company has elected to use the measurement alternative to measure our equity investments without readily determinable fair values and this guidance was applied prospectively. See Note 5, Investment Securities and Short-Term Investments , for further information on our equity investments. In May 2014, the FASB issued ASU No. 2014-09, “ Revenue from Contracts with Customers (Topic 606) .” This standard supersedes the revenue recognition requirements in ASC 605, “ Revenue Recognition ,” and most industry-specific guidance. The standard requires an entity to recognize revenue in an amount that reflects the consideration to which the entity expects to receive in exchange for goods or services. During 2016, the FASB issued additional interpretive guidance relating to the standard which covered the topics of principal versus agent considerations and identifying performance obligations and licensing. The new revenue guidance under Topic 606 was adopted on January 1, 2018 using the modified retrospective transition method. Under this transition method, we recognized the cumulative effect of initially applying the new revenue standard as an adjustment to the opening balance of retained earnings on January 1, 2018. The comparative information presented has not been restated and continues to be reported under the accounting standards in effect for those periods. See Note 4, Revenues , for further details. |
Significant Accounting Policies
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Summary Of Significant Accounting Policies [Abstract] | |
Schedule Of Operating Expenses | Year Ended December 31, 2019 2018 2017 Amortization and impairment of feature film assets $ 5,718 $ 8,822 $ 17,377 Amortization of television production assets 29,990 29,568 21,137 Amortization of WWE Network content delivery and technology assets 5,317 6,696 5,970 Amortization of right-of-use assets - finance leases of equipment 8,020 — — Depreciation on equipment used directly in revenue generating activities 108 — — Total depreciation and amortization included in operating expenses $ 49,153 $ 45,086 $ 44,484 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule Of Basic And Diluted Earnings Per Share | Year Ended December 31, 2019 2018 2017 Net income $ 77,061 $ 99,588 $ 32,640 Weighted average basic common shares outstanding 78,157 77,536 76,743 Dilutive effect of restricted and performance stock units 1,361 1,877 1,721 Dilutive effect of convertible debt instruments 10,707 9,206 — Dilutive effect of employee share purchase plan 6 — 7 Weighted average dilutive common shares outstanding 90,231 88,619 78,471 Earnings per share: Basic $ 0.99 $ 1.28 $ 0.43 Diluted $ 0.85 $ 1.12 $ 0.42 Anti-dilutive shares (excluded from per-share calculations): Net shares received on purchased call of convertible debt hedge 5,756 5,098 — Outstanding restricted and performance stock units — 3 — |
Revenues (Tables)
Revenues (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenues [Abstract] | |
Schedule Of Revenues Disaggregated By Source | Year Ended December 31, 2019 2018 2017 Net revenues: Media Segment : Network (including pay-per-view) $ 184,553 $ 199,318 $ 190,627 Core content rights fees (1) 348,593 269,793 244,247 Advertising and sponsorships 72,428 69,529 51,838 Other (2) 137,525 144,711 48,858 Total Media Segment net revenues 743,099 683,351 535,570 Live Events Segment : North American ticket sales 93,812 105,386 111,986 International ticket sales 19,048 22,347 31,731 Advertising and sponsorships 2,072 2,124 1,965 Other (3) 10,653 14,346 6,023 Total Live Events Segment net revenues 125,585 144,203 151,705 Consumer Products Segment : Consumer product licensing 43,197 45,970 52,127 eCommerce 29,882 34,942 37,815 Venue merchandise 18,679 21,694 23,742 Total Consumer Products Segment net revenues 91,758 102,606 113,684 Total net revenues $ 960,442 $ 930,160 $ 800,959 (1) Core content rights fees consist primarily of licensing revenues earned from the distribution of our flagship programs, Raw and SmackDown , as well as our NXT programming, through global broadcast, pay television and digital platforms. (2) Other revenues within our Media segment reflect revenues earned from the distribution of other WWE content, including, but not limited to, certain live in-ring programming in international markets, scripted, reality and other programming, as well as theatrical and direct-to-home video releases. (3) Other revenues within our Live Events segment primarily consists of the sale of travel packages associated with the Company’s global live events and commissions earned through secondary ticketing, as well as revenues from events for which the Company receives a fixed fee . |
Investment Securities And Sho_2
Investment Securities And Short-Term Investments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Investment Securities And Short-Term Investments [Abstract] | |
Schedule Of Investment Securities | As of December 31, 2019 2018 Equity method investments $ 14,342 $ 14,508 Nonmarketable equity investments without readily determinable fair values 13,359 10,840 Marketable equity investments with readily determinable fair values 405 4,848 Total investment securities $ 28,106 $ 30,196 |
Schedule Of Tapout Investment | Year Ended December 31, 2019 2018 2017 Net equity method earnings from Tapout $ 911 $ 1,118 $ 1,141 Net dividends received from Tapout ( 1,061 ) ( 1,274 ) ( 1,084 ) Equity in earnings of affiliate, net of dividends received $ ( 150 ) $ ( 156 ) $ 57 |
Schedule Of Equity Instruments Without Readily Determinable Fair Value | Year Ended December 31, 2019 2018 2017 Impairments (1) $ — $ ( 3,773 ) $ — Observable price change upward adjustments (2) 1,151 2,181 — Observable price change downward adjustments — — — Total income (loss) from adjustments to nonmarketable equity investments $ 1,151 $ ( 1,592 ) $ — (1) During the year ended December 31, 2018, the Company recorded an impairment charge on our investment in a mobile video publishing business for the excess of the carrying value over its estimated fair value resulting from going concern issues of the underlying investee company. This charge is reflected in Other income, net in our Consolidated Statements of Operations. (2) During the year ended December 31, 2019, the Company recorded upward adjustments to the carrying value related to two of the Company’s equity investments. The adjustments were the result of an observable price change events in connection with financing rounds completed by the investees where the underlying value of the preferred shares issued were greater than the value of WWE’s substantially similar preferred shares in the investees. During the year ended December 31, 2018, the Company recorded an upward adjustment to the carrying value related to one of the Company’s equity investments. The adjustment was the result of an observable price change event in connection with a financing round completed by the investee where the underlying value of the preferred shares issued were greater than the value per share of WWE’s substantially similar preferred shares in the investee. These upward adjustments are reflected in Other income, net in our Consolidated Statements of Operations. |
Schedule Of Short-Term Investments Measured At Fair Value | December 31, 2019 December 31, 2018 Gross Unrealized Gross Unrealized Amortized Fair Amortized Fair Cost Gain (Loss) Value Cost Gain (Loss) Value U.S. Treasury securities $ 32,124 $ 27 $ ( 13 ) $ 32,138 $ 62,847 $ 4 $ ( 439 ) $ 62,412 Corporate bonds 120,012 89 ( 74 ) 120,027 100,543 — ( 1,037 ) 99,506 Municipal bonds 2,165 — — 2,165 7,900 — ( 41 ) 7,859 Government agency bonds 5,693 11 — 5,704 22,066 — ( 157 ) 21,909 Total $ 159,994 $ 127 $ ( 87 ) $ 160,034 $ 193,356 $ 4 $ ( 1,674 ) $ 191,686 |
Schedule Of Contractual Maturities Of Short-Term Investment Bonds | Maturities U.S. Treasury securities 1 month - 2 years Corporate bonds 1 month - 3 years Municipal bonds 1 month Government agency bonds 3 months - 2 years |
Summary Of Short-Term Investment Activity | Year Ended December 31, 2019 2018 2017 Proceeds from maturities and calls of short-term investments $ 157,487 $ 61,428 $ 35,660 Purchases of short-term investments $ 124,282 $ 94,910 $ 142,373 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Measurement [Abstract] | |
Schedule Of Fair Value Of Debt Instruments | December 31, 2019 December 31, 2018 Fair Value Carrying Value (1) Fair Value Carrying Value (1) Convertible senior notes $ 207,338 $ 192,262 $ 189,323 $ 187,371 (1) The carrying value of the convertible debt instrument presented in the table above represents the face value of the convertible note less unamortized debt discount. |
Property And Equipment (Tables)
Property And Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property And Equipment [Abstract] | |
Schedule Of Property And Equipment | As of December 31, 2019 2018 Land, buildings and improvements $ 163,202 $ 141,070 Equipment and projects-in-progress 156,068 129,367 Corporate aircraft 32,249 32,249 Vehicles 1,030 942 352,549 303,628 Less accumulated depreciation and amortization ( 177,797 ) ( 155,539 ) Total $ 174,752 $ 148,089 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Quantitative Information About Leases | For the year ended December 31, 2019 Lease costs Finance lease costs: Amortization of right-of-use assets $ 12,556 Interest on lease liabilities 10,020 Operating lease costs 8,693 Other short-term and variable lease costs 1,914 Sublease income (1) ( 64 ) Total lease costs $ 33,119 Other information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from finance leases $ 607 Operating cash flows from operating leases $ 7,945 Finance cash flows from finance leases $ 8,352 Right-of-use assets obtained in exchange for new finance lease liabilities (2) $ 286,330 Right-of-use assets obtained in exchange for new operating lease liabilities (2) $ 6,283 As of December 31, 2019 Weighted-average remaining lease term - finance leases 29.8 years Weighted-average remaining lease term - operating leases 4.3 years Weighted-average discount rate - finance leases 4.8 % Weighted-average discount rate - operating leases 4.6 % (1) Sublease income excludes rental income from owned properties. (2) Includes right-of-use assets for leases that commenced after January 1, 2019. |
Maturity Of Lease Liabilities | Operating Finance Leases Leases 2020 $ 7,510 $ 8,292 2021 6,348 20,883 2022 3,396 19,345 2023 1,917 19,255 2024 1,613 19,205 Thereafter 2,670 636,313 Total lease payment 23,454 723,293 Less: imputed interest ( 2,297 ) ( 379,883 ) Total future minimum lease payments $ 21,157 $ 343,410 |
Feature Film Production Asset_2
Feature Film Production Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Feature Film Production Assets, Net [Abstract] | |
Schedule Of Feature Film Production Assets | As of December 31, 2019 2018 In release $ 8,273 $ 12,430 In production 7,397 707 In development 203 421 Total $ 15,873 $ 13,558 |
Television Production Assets,_2
Television Production Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Television Production Assets, Net [Abstract] | |
Schedule Of Television Production Assets | As of December 31, 2019 2018 In release $ 1,042 $ 1,308 Completed but not released 171 — In production 2,959 6,165 Total $ 4,172 $ 7,473 |
Amortization Of Television Production Assets | For the year ended December 31, 2019 2018 2017 Television programming $ 24,815 $ 22,312 $ 17,399 WWE Network programming 5,175 7,256 3,738 Total $ 29,990 $ 29,568 $ 21,137 |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounts Payable And Accrued Expenses [Abstract] | |
Schedule Of Accounts Payable And Accrued Expenses | As of December 31, 2019 2018 Trade related $ 9,282 $ 12,198 Staff related 8,651 10,255 Management incentive compensation 6,481 37,103 Talent related 8,184 8,799 Accrued WWE Network related expenses 5,510 2,054 Accrued event and television production 16,627 13,881 Accrued legal and professional 5,716 4,906 Accrued purchases of property and equipment 4,997 13,464 Accrued film liability 5,986 2,774 Accrued other 9,158 14,724 Total $ 80,592 $ 120,158 |
Convertible Debt (Tables)
Convertible Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Convertible Debt [Abstract] | |
Schedule Of Convertible Notes | As of December 31, 2019 2018 Debt component : Principal $ 215,000 $ 215,000 Less: Unamortized debt discount ( 22,738 ) ( 27,629 ) Less: Unamortized debt issuance costs ( 3,595 ) ( 4,281 ) Net carrying amount $ 188,667 $ 183,090 Equity component (1) $ 35,547 $ 35,547 (1) Recorded in the Consolidated Balance Sheets within additional paid-in capital. |
Schedule Of Interest Expense Recognized | For the year ended December 31, 2019 2018 2017 3.375 % contractual coupon $ 7,256 $ 7,256 $ 7,232 Amortization of debt discount 4,891 4,588 4,290 Amortization of debt issuance costs 686 617 553 Additional interest on Convertible Notes (1) 1,370 — — Interest expense $ 14,203 $ 12,461 $ 12,075 (1) During the year ended December 31, 2019, additional nonrecurring interest expense was incurred pursuant to the notes’ indenture related to the removal of the restrictive legend and assignment of the unrestricted CUSIP on the Convertible Notes. |
Long-Term Debt And Credit Fac_2
Long-Term Debt And Credit Facility (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Instrument [Line Items] | |
Schedule Of Debt | As of December 31, December 31, 2019 2018 Current portion of long-term debt : Aircraft financing $ 3,218 $ 4,740 Mortgage 395 378 Total current portion of long-term debt 3,613 5,118 Long-term debt : Aircraft financing $ — $ 3,218 Mortgage 22,098 22,478 Total long-term debt 22,098 25,696 Total $ 25,711 $ 30,814 |
Mortgage [Member] | |
Debt Instrument [Line Items] | |
Schedule of Principal Repayments Under Note Obligation | December 31, 2020 $ 395 December 31, 2021 412 December 31, 2022 431 December 31, 2023 451 December 31, 2024 472 Thereafter 20,332 $ 22,493 |
Aircraft Financing [Member] | |
Debt Instrument [Line Items] | |
Schedule of Principal Repayments Under Note Obligation | December 31, 2020 $ 3,218 $ 3,218 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Taxes [Abstract] | |
Schedule of Components of Tax Provision | Year Ended December 31, 2019 2018 2017 Current taxes: Federal $ ( 294 ) $ 81 $ 7,785 State and local 1,422 235 1,313 Foreign 7,028 7,191 8,750 Deferred taxes: Federal 8,015 ( 1,774 ) 13,177 State and local 1,412 737 396 Foreign 34 ( 21 ) ( 1 ) Total income tax expense $ 17,617 $ 6,449 $ 31,420 |
Schedule of Components of (Loss) Income Before Income Taxes | Year Ended December 31, 2019 2018 2017 United States $ 92,701 $ 104,338 $ 62,280 Foreign 1,977 1,699 1,780 Total income before income taxes $ 94,678 $ 106,037 $ 64,060 |
Schedule of Effective Income Tax Rate Reconciliation | Year Ended December 31, 2019 2018 2017 Statutory U.S. federal tax $ 19,880 $ 22,268 $ 22,421 State and local taxes, net of federal tax benefit 3,962 4,915 1,472 Foreign rate differential ( 53 ) ( 50 ) ( 298 ) Tax exempt interest income ( 16 ) ( 32 ) ( 86 ) Qualified production activity deduction — — ( 1,750 ) Nondeductible executive compensation 1,669 2,672 136 Unrecognized tax benefits ( 23 ) 46 ( 146 ) Meals and entertainment 261 233 317 Employee Stock Purchase Plan ( 87 ) 248 44 Deferred tax asset remeasurement — ( 111 ) 10,878 Deemed repatriation transition tax — ( 19 ) 406 Foreign-derived intangible income (FDII) ( 422 ) ( 1,346 ) — Global intangible low-taxed income (GILTI) 273 122 — Excess tax benefits related to the vesting of share-based compensation ( 9,394 ) ( 22,473 ) ( 1,604 ) Other 1,567 ( 24 ) ( 370 ) Provision for income taxes $ 17,617 $ 6,449 $ 31,420 |
Schedule of Deferred Tax Assets and Deferred Tax Liabilities | As of December 31, 2019 2018 Deferred tax assets: Accounts receivable $ 110 $ 145 Inventory 1,702 1,329 Deferred income 1,555 1,932 Stock compensation 5,572 7,090 Net operating loss carryforward 1,080 1,103 Foreign tax credits 7,158 5,055 Investments 695 2,193 Intangible assets 1,750 1,619 Capitalized feature film production costs 1,410 1,418 Accrued liabilities and reserves 1,041 1,278 Lease obligations 7,951 — Federal benefit related to uncertain tax positions 40 108 Deferred tax assets, gross 30,064 23,270 Valuation allowance ( 1,080 ) ( 1,103 ) Deferred tax assets, net 28,984 22,167 Deferred tax liabilities: Property and equipment depreciation ( 12,509 ) ( 2,672 ) Deferred revenue ( 1,664 ) — Right-of-use assets ( 4,470 ) — Investments ( 3,124 ) ( 2,357 ) Deferred tax liabilities ( 21,767 ) ( 5,029 ) Total deferred tax assets, net $ 7,217 $ 17,138 |
Schedule of Unrecognized Tax Benefit Activity | Year Ended December 31, 2019 2018 Beginning Balance- January 1 $ 420 $ 389 Increase to unrecognized tax benefits recorded for positions taken during the current year 7 64 Increase to unrecognized tax benefits recorded for positions taken during a prior period 9 65 Decrease in unrecognized tax benefits relating to settlements with taxing authorities — ( 7 ) Decrease to unrecognized tax benefits resulting from a lapse of the applicable statute of limitations ( 185 ) ( 91 ) Ending Balance- December 31 $ 251 $ 420 |
Film And Television Productio_2
Film And Television Production Incentives (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Film And Television Production Incentives [Abstract] | |
Schedule Of Film And Television Production Incentives | Year Ended December 31, 2019 2018 2017 Television production incentives $ 13,539 $ 12,166 $ 11,260 Feature film production incentives 288 — 3,683 Infrastructure improvement incentives on qualifying capital projects 1,438 — — Total $ 15,265 $ 12,166 $ 14,943 |
Commitments And Contingencies (
Commitments And Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments And Contingencies [Abstract] | |
Schedule of Future Minimum Payments Under Agreements | Service Contracts and Talent Commitments 2020 $ 28,836 2021 18,360 2022 11,941 2023 263 2024 262 Thereafter 177 Total $ 59,839 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary Of RSU Activity | Units Weighted- Average Grant-Date Fair Value Unvested at January 1, 2019 409,665 $ 26.52 Granted 88,265 $ 83.01 Vested ( 200,793 ) $ 23.72 Forfeited ( 27,210 ) $ 41.60 Dividend equivalents 2,480 $ 29.04 Unvested at December 31, 2019 272,407 $ 45.41 |
Summary Of PSU Activity | Units Weighted- Average Grant-Date Fair Value Unvested at January 1, 2019 1,116,085 $ 39.98 Granted 155,872 $ 64.87 Achievement adjustment 297,061 $ 83.51 Vested ( 837,597 ) $ 38.83 Forfeited ( 16,344 ) $ 65.19 Dividend equivalents 6,321 $ 56.74 Unvested at December 31, 2019 721,398 $ 67.97 |
Restricted Stock Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Stock-Based Compensation Expense | Year Ended December 31, 2019 2018 2017 Tax benefits realized $ 13,813 $ 16,272 $ 2,920 Weighted-average grant-date fair value of RSUs granted 7,327 6,872 6,054 Fair value of RSUs vested 4,763 3,709 2,490 |
Performance Stock Units (PSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of Stock-Based Compensation Expense | Year Ended December 31, 2019 2018 2017 Tax benefits realized $ 52,072 $ 99,520 $ 18,538 Weighted-average grant-date fair value of PSUs granted 10,111 27,635 16,833 Fair value of PSUs vested 32,523 24,591 15,301 |
Performance Stock Units, Market Condition [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary Of PSU Activity | Units Weighted- Average Grant-Date Fair Value Unvested at January 1, 2019 340,971 $ 47.42 Granted — $ — Vested — $ — Unvested at December 31, 2019 340,971 $ 47.42 |
Schedule of Stock-Based Compensation Expense | Year Ended December 31, 2019 2018 Tax benefits realized $ — $ — Weighted-average grant-date fair value of PSU-TSRs granted — 16,168 Fair value of PSU-TSRs vested — — |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Information [Abstract] | |
Summary Of Financial Information For Reportable Segments | Year Ended December 31, 2019 2018 2017 Net revenues: Media $ 743,099 $ 683,351 $ 535,570 Live Events 125,585 144,203 151,705 Consumer Products 91,758 102,606 113,684 Total net revenues $ 960,442 $ 930,160 $ 800,959 Depreciation and amortization: Media $ 12,592 $ 11,863 $ 11,884 Live Events — — — Consumer Products — — — Corporate 21,535 13,206 14,166 Total depreciation and amortization $ 34,127 $ 25,069 $ 26,050 Adjusted OIBDA: Media $ 224,136 $ 210,579 $ 141,625 Live Events 9,376 20,543 27,115 Consumer Products 28,559 28,376 37,727 Corporate ( 82,038 ) ( 80,647 ) ( 70,389 ) Total Adjusted OIBDA $ 180,033 $ 178,851 $ 136,078 |
Reconciliation of Total Operating (Loss) Income to Total OIBDA | Year Ended December 31, 2019 2018 2017 Total operating income $ 116,510 $ 114,478 $ 75,578 Depreciation and amortization 34,127 25,069 26,050 Stock-based compensation 29,396 39,304 24,151 Other adjustments (1) — — 10,299 Total Adjusted OIBDA $ 180,033 $ 178,851 $ 136,078 (1) Other adjustments for the year ended December 31, 2017 include $ 5,586 of non-recurring legal matters and other contractual obligations, and $ 4,713 of certain impairment charges related to our feature films. |
Schedule of Net Revenues by Major Geographic Region | Year Ended December 31, 2019 2018 2017 North America $ 656,642 $ 612,322 $ 599,697 Europe/Middle East/Africa 223,471 237,196 125,639 Asia Pacific 67,493 69,064 61,568 Latin America 12,836 11,578 14,055 Total net revenues $ 960,442 $ 930,160 $ 800,959 |
Selected Quarterly Financial _2
Selected Quarterly Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Selected Quarterly Financial Information [Abstract] | |
Schedule of Selected Quarterly Financial Information | 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter 2019 (1) (3) (1) (2) (3) (1) (2) (3) (1) (2) (3) Net revenues $ 182,448 $ 268,809 $ 186,383 $ 322,802 Operating expenses $ 135,450 $ 197,363 $ 133,842 $ 171,544 Net income (loss) $ ( 8,396 ) $ 10,414 $ 5,790 $ 69,253 Net income (loss) per common share: basic $ ( 0.11 ) $ 0.13 $ 0.07 $ 0.89 2018 Net revenues $ 187,721 $ 281,542 $ 188,391 $ 272,506 Operating expenses $ 120,061 $ 198,891 $ 120,797 $ 169,433 Net income $ 14,835 $ 9,945 $ 33,590 $ 41,218 Net income per common share: basic $ 0.19 $ 0.13 $ 0.43 $ 0.55 (1) Operating expenses for the first, second, third and fourth quarter of 2019 includes impairment charges of $ 198 , $ 246 , $ 759 and $ 98 , respectively, related to certain of our feature films. Operating expenses for the first, second, third and fourth quarters of 2018 includes impairment charges of $ 925 , $ 563 , $ 1,325 and $ 2,052 , respectively, related to certain of our feature films. See Note 9, Feature Film Production Assets , for further discussion. (2) Net income for the second, third and fourth quarters of 2019 includes a benefit of $ 669 , $ 12,498 and $ 372 , respectively, related to television production incentives. Net income for the third and fourth quarters of 2018 includes a benefit of $ 11,702 and $ 464 , respectively, related to television production incentives. (3) Net income for the second quarter of 2019 includes a $ 1,151 investment gain related to favorable observable price adjustments related to two of our nonmarketable equity securities. Net income for the first, second, third and fourth quarters of 2019 includes unrealized holding losses of $ 194 , $ 3,597 , $ 568 and $ 85 , respectively, on a marketable equity security. Net income for the second and fourth quarters of 2018 includes impairment charges of $ 3,000 and $ 773 , respectively, related to our nonmarketable equity investments. Net income for the third quarter of 2018 includes a $ 2,181 investment gain related to a favorable observable price adjustment related to a nonmarketable equity investment. Net income for the fourth quarter of 2018 includes a $ 2,474 favorable mark-to-market adjustment on a marketable equity security. See Note 5, Investment Securities and Short-Term Investments , for further discussi on. |
Summary Of Significant Accoun_3
Summary Of Significant Accounting Policies (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Significant Accounting Policies [Line Items] | |||
Advertising expenses | $ 21,165 | $ 21,563 | $ 23,629 |
Operating and finance right of use asset | 39,266 | ||
Operating and finance lease liabilities | $ 40,458 | ||
Corporate Aircraft [Member] | |||
Significant Accounting Policies [Line Items] | |||
Estimated useful lives | 10 years | ||
Minimum [Member] | Buildings And Related Improvements [Member] | |||
Significant Accounting Policies [Line Items] | |||
Estimated useful lives | 5 years | ||
Maximum [Member] | Buildings And Related Improvements [Member] | |||
Significant Accounting Policies [Line Items] | |||
Estimated useful lives | 39 years | ||
Restricted Stock Units (RSUs) [Member] | |||
Significant Accounting Policies [Line Items] | |||
Requisite service period | 3 years 6 months | ||
Performance Stock Units (PSUs) [Member] | |||
Significant Accounting Policies [Line Items] | |||
Requisite service period | 3 years 6 months | ||
Content Rights Fees [Member] | Minimum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Revenue recognition, contract term | 1 year | ||
Content Rights Fees [Member] | Maximum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Revenue recognition, contract term | 5 years |
Summary Of Significant Accoun_4
Summary Of Significant Accounting Policies (Schedule Of Operating Expenses) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating Expenses [Line Items] | |||
Amortization and impairment of feature film assets | $ 5,718 | $ 8,822 | $ 17,377 |
Amortization of television production assets | 29,990 | 29,568 | 21,137 |
Amortization of WWE Network content delivery and technology assets | 5,317 | 6,696 | 5,970 |
Amortization of right-of-use assets - finance leases of equipment | 12,556 | ||
Depreciation on equipment used directly in revenue generating activities | 108 | ||
Total amortization and impairment included in operating expenses | 49,153 | $ 45,086 | $ 44,484 |
Equipment And Projects In Progress [Member] | |||
Operating Expenses [Line Items] | |||
Amortization of right-of-use assets - finance leases of equipment | $ 8,020 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) - $ / shares | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | ||||
Warrant strike price | $ 31.89 | $ 31.89 | $ 31.89 | |
3.375% Convertible Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Conversion price | 24.91 | |||
Impact on diluted EPS | $ 0.12 | $ 0.13 | $ 0 |
Earnings Per Share (Schedule Of
Earnings Per Share (Schedule Of Basic And Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2019 | [1],[2],[3] | Sep. 30, 2019 | [1],[2],[3] | Jun. 30, 2019 | [1],[2],[3] | Mar. 31, 2019 | [1],[3] | Dec. 31, 2018 | [1],[2],[3] | Sep. 30, 2018 | [1],[2],[3] | Jun. 30, 2018 | [1],[2],[3] | Mar. 31, 2018 | [1],[3] | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||||||||||
Net income (loss) | $ 69,253 | $ 5,790 | $ 10,414 | $ (8,396) | $ 41,218 | $ 33,590 | $ 9,945 | $ 14,835 | $ 77,061 | $ 99,588 | $ 32,640 | ||||||||
Weighted average basic common shares outstanding | 78,157 | 77,536 | 76,743 | ||||||||||||||||
Dilutive effect of restricted and performance stock units | 1,361 | 1,877 | 1,721 | ||||||||||||||||
Dilutive effect of convertible debt instruments | 10,707 | 9,206 | |||||||||||||||||
Dilutive effect of employee share purchase plan | 6 | 7 | |||||||||||||||||
Weighted average dilutive common shares outstanding | 90,231 | 88,619 | 78,471 | ||||||||||||||||
Basic | $ 0.89 | $ 0.07 | $ 0.13 | $ (0.11) | $ 0.55 | $ 0.43 | $ 0.13 | $ 0.19 | $ 0.99 | $ 1.28 | $ 0.43 | ||||||||
Diluted | $ 0.85 | $ 1.12 | $ 0.42 | ||||||||||||||||
Net Shares Received On Purchased Call Of Convertible Debt Hedge [Member] | |||||||||||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||||||||||
Anti-dilutive shares (excluded from per-share calculations) | 5,756 | 5,098 | |||||||||||||||||
Outstanding Restricted And Performance Stock Units [Member] | |||||||||||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||||||||||
Anti-dilutive shares (excluded from per-share calculations) | 3 | ||||||||||||||||||
[1] | Net income for the second quarter of 2019 includes a $ 1,151 investment gain related to favorable observable price adjustments related to two of our nonmarketable equity securities. Net income for the first, second, third and fourth quarters of 2019 includes unrealized holding losses of $ 194 , $ 3,597 , $ 568 and $ 85 , respectively, on a marketable equity security. Net income for the second and fourth quarters of 2018 includes impairment charges of $ 3,000 and $ 773 , respectively, related to our nonmarketable equity investments. Net income for the third quarter of 2018 includes a $ 2,181 investment gain related to a favorable observable price adjustment related to a nonmarketable equity investment. Net income for the fourth quarter of 2018 includes a $ 2,474 favorable mark-to-market adjustment on a marketable equity security. See Note 5, Investment Securities and Short-Term Investments , for further discussi on. | ||||||||||||||||||
[2] | Net income for the second, third and fourth quarters of 2019 includes a benefit of $ 669 , $ 12,498 and $ 372 , respectively, related to television production incentives. Net income for the third and fourth quarters of 2018 includes a benefit of $ 11,702 and $ 464 , respectively, related to television production incentives. | ||||||||||||||||||
[3] | Operating expenses for the first, second, third and fourth quarter of 2019 includes impairment charges of $ 198 , $ 246 , $ 759 and $ 98 , respectively, related to certain of our feature films. Operating expenses for the first, second, third and fourth quarters of 2018 includes impairment charges of $ 925 , $ 563 , $ 1,325 and $ 2,052 , respectively, related to certain of our feature films. See Note 9, Feature Film Production Assets , for further discussion. |
Revenues (Narrative) (Details)
Revenues (Narrative) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | [1],[2],[3] | Jun. 30, 2019 | [1],[2],[3] | Mar. 31, 2019 | [1],[3] | Dec. 31, 2018 | Sep. 30, 2018 | [1],[2],[3] | Jun. 30, 2018 | [1],[2],[3] | Mar. 31, 2018 | [1],[3] | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||
Disaggregation of Revenue [Line Items] | |||||||||||||||||||
Net revenues | $ 322,802,000 | [1],[2],[3] | $ 186,383,000 | $ 268,809,000 | $ 182,448,000 | $ 272,506,000 | [1],[2],[3] | $ 188,391,000 | $ 281,542,000 | $ 187,721,000 | $ 960,442,000 | $ 930,160,000 | $ 800,959,000 | ||||||
Operating expenses | 171,544,000 | [1],[2],[3] | $ 133,842,000 | $ 197,363,000 | $ 135,450,000 | 169,433,000 | [1],[2],[3] | $ 120,797,000 | $ 198,891,000 | $ 120,061,000 | 638,199,000 | 609,182,000 | 538,525,000 | ||||||
Operating income | 116,510,000 | 114,478,000 | 75,578,000 | ||||||||||||||||
Remaining performance obligations | 3,523,289,000 | 3,523,289,000 | |||||||||||||||||
Contract liabilities | 57,025,000 | 49,487,000 | 57,025,000 | 49,487,000 | |||||||||||||||
Increase in deferred revenue | (7,538,000) | ||||||||||||||||||
Revenue recognized | 49,173,000 | ||||||||||||||||||
Capitalized contract cost | $ 825,000 | $ 1,886,000 | 825,000 | 1,886,000 | |||||||||||||||
Capitalized cost amortization | 1,061,000 | 1,356,000 | 1,281,000 | ||||||||||||||||
Capitalized cost, impairment | $ 0 | 0 | 0 | ||||||||||||||||
Maximum [Member] | |||||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||||
Payment term | 60 days | ||||||||||||||||||
Minimum [Member] | |||||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||||
Payment term | 30 days | ||||||||||||||||||
Accounting Standards Update 2014-09 [Member] | |||||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||||
Accounting change effect on retained earnings | $ 10,086,000 | ||||||||||||||||||
Net revenues | (2,971,000) | ||||||||||||||||||
Operating expenses | (1,360,000) | ||||||||||||||||||
Operating income | $ (1,611,000) | ||||||||||||||||||
Revenue Benchmark [Member] | Product Concentration Risk [Member] | Consumer Product Licensing And Film Distribution [Member] | |||||||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||||||
Concentration risk, percentage | 5.70% | 8.80% | |||||||||||||||||
[1] | Net income for the second quarter of 2019 includes a $ 1,151 investment gain related to favorable observable price adjustments related to two of our nonmarketable equity securities. Net income for the first, second, third and fourth quarters of 2019 includes unrealized holding losses of $ 194 , $ 3,597 , $ 568 and $ 85 , respectively, on a marketable equity security. Net income for the second and fourth quarters of 2018 includes impairment charges of $ 3,000 and $ 773 , respectively, related to our nonmarketable equity investments. Net income for the third quarter of 2018 includes a $ 2,181 investment gain related to a favorable observable price adjustment related to a nonmarketable equity investment. Net income for the fourth quarter of 2018 includes a $ 2,474 favorable mark-to-market adjustment on a marketable equity security. See Note 5, Investment Securities and Short-Term Investments , for further discussi on. | ||||||||||||||||||
[2] | Net income for the second, third and fourth quarters of 2019 includes a benefit of $ 669 , $ 12,498 and $ 372 , respectively, related to television production incentives. Net income for the third and fourth quarters of 2018 includes a benefit of $ 11,702 and $ 464 , respectively, related to television production incentives. | ||||||||||||||||||
[3] | Operating expenses for the first, second, third and fourth quarter of 2019 includes impairment charges of $ 198 , $ 246 , $ 759 and $ 98 , respectively, related to certain of our feature films. Operating expenses for the first, second, third and fourth quarters of 2018 includes impairment charges of $ 925 , $ 563 , $ 1,325 and $ 2,052 , respectively, related to certain of our feature films. See Note 9, Feature Film Production Assets , for further discussion. |
Revenues (Schedule Of Revenues
Revenues (Schedule Of Revenues Disaggregated By Source) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | $ 960,442 | $ 930,160 | $ 800,959 | |
Media [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 743,099 | 683,351 | 535,570 | |
Media [Member] | Network (Including Pay-Per-View) [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 184,553 | 199,318 | 190,627 | |
Media [Member] | Core Content Rights Fees [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | [1] | 348,593 | 269,793 | 244,247 |
Media [Member] | Advertising And Sponsorships [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 72,428 | 69,529 | 51,838 | |
Media [Member] | Other Content Rights Fees [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | [2] | 137,525 | 144,711 | 48,858 |
Live Events [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 125,585 | 144,203 | 151,705 | |
Live Events [Member] | Ticket Sales [Member] | North America [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 93,812 | 105,386 | 111,986 | |
Live Events [Member] | Ticket Sales [Member] | International [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 19,048 | 22,347 | 31,731 | |
Live Events [Member] | Advertising And Sponsorships [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 2,072 | 2,124 | 1,965 | |
Live Events [Member] | Other Live Events [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | [3] | 10,653 | 14,346 | 6,023 |
Consumer Products [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 91,758 | 102,606 | 113,684 | |
Consumer Products [Member] | Consumer Product Licensing [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 43,197 | 45,970 | 52,127 | |
Consumer Products [Member] | eCommerce [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 29,882 | 34,942 | 37,815 | |
Consumer Products [Member] | Venue Merchandise [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | $ 18,679 | $ 21,694 | $ 23,742 | |
[1] | Core content rights fees consist primarily of licensing revenues earned from the distribution of our flagship programs, Raw and SmackDown , as well as our NXT programming, through global broadcast, pay television and digital platforms. | |||
[2] | Other revenues within our Media segment reflect revenues earned from the distribution of other WWE content, including, but not limited to, certain live in-ring programming in international markets, scripted, reality and other programming, as well as theatrical and direct-to-home video releases. | |||
[3] | Other revenues within our Live Events segment primarily consists of the sale of travel packages associated with the Company’s global live events and commissions earned through secondary ticketing, as well as revenues from events for which the Company receives a fixed fee . |
Investment Securities And Sho_3
Investment Securities And Short-Term Investments (Narrative) (Details) | 12 Months Ended | ||
Dec. 31, 2019USD ($)security | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Investment [Line Items] | |||
Deferred revenue | $ 57,025,000 | $ 49,487,000 | |
Number of marketable equity security investments | security | 1 | ||
Unrealized holding loss | $ 4,444,000 | 4,444,000 | |
Unrealized holding gain | 2,474,000 | 2,474,000 | |
Short-term investments, interest income | $ 4,728,000 | 4,508,000 | $ 2,007,000 |
Tapout [Member] | |||
Investment [Line Items] | |||
Duration of joint venture | 5 years | ||
Ownership interest | 50.00% | ||
Interest in Tapout | $ 13,800,000 | ||
Equity investment, impairment | 0 | 0 | 0 |
Investment revenue | 2,759,000 | $ 2,767,000 | $ 2,720,000 |
Deferred revenue | 231,000 | ||
Tapout [Member] | Maximum [Member] | |||
Investment [Line Items] | |||
Maximum exposure to loss | $ 231,000 |
Investment Securities And Sho_4
Investment Securities And Short-Term Investments (Schedule Of Investment Securities ) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Investment Securities And Short-Term Investments [Abstract] | ||
Equity method investments | $ 14,342 | $ 14,508 |
Nonmarketable equity investments without readily determinable fair values | 13,359 | 10,840 |
Marketable equity investments with readily determinable fair values | 405 | 4,848 |
Total investment securities | $ 28,106 | $ 30,196 |
Investment Securities And Sho_5
Investment Securities And Short-Term Investments (Schedule Of Tapout Investment ) (Details) - Tapout [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule of Investments [Line Items] | |||
Net equity method earnings from Tapout | $ 911 | $ 1,118 | $ 1,141 |
Net dividends received from Tapout | (1,061) | (1,274) | (1,084) |
Equity in earnings of affiliate, net of dividends received | $ (150) | $ (156) | $ 57 |
Investment Securities and Sho_6
Investment Securities and Short-Term Investments (Schedule Of Equity Instruments Without Readily Determinable Fair Value) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||
Jun. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||||
Investment Securities And Short-Term Investments [Abstract] | ||||||||
Impairments | [1] | $ (3,773) | ||||||
Observable price change adjustments | $ 1,151 | $ 2,181 | $ 1,151 | [2] | 2,181 | [2] | ||
Observable price change downward adjustments | ||||||||
Total income (loss) from adjustments to equity investments | $ 1,151 | $ (1,592) | ||||||
[1] | During the year ended December 31, 2018, the Company recorded an impairment charge on our investment in a mobile video publishing business for the excess of the carrying value over its estimated fair value resulting from going concern issues of the underlying investee company. This charge is reflected in Other income, net in our Consolidated Statements of Operations. | |||||||
[2] | During the year ended December 31, 2019, the Company recorded upward adjustments to the carrying value related to two of the Company’s equity investments. The adjustments were the result of an observable price change events in connection with financing rounds completed by the investees where the underlying value of the preferred shares issued were greater than the value of WWE’s substantially similar preferred shares in the investees. During the year ended December 31, 2018, the Company recorded an upward adjustment to the carrying value related to one of the Company’s equity investments. The adjustment was the result of an observable price change event in connection with a financing round completed by the investee where the underlying value of the preferred shares issued were greater than the value per share of WWE’s substantially similar preferred shares in the investee. These upward adjustments are reflected in Other income, net in our Consolidated Statements of Operations. |
Investment Securities And Sho_7
Investment Securities And Short-Term Investments (Schedule Of Short-Term Investments Measured at Fair Value) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 159,994 | $ 193,356 |
Gross Unrealized Gain | 127 | 4 |
Gross Unrealized (Loss) | (87) | (1,674) |
Fair Value | 160,034 | 191,686 |
US Treasury Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 32,124 | 62,847 |
Gross Unrealized Gain | 27 | 4 |
Gross Unrealized (Loss) | (13) | (439) |
Fair Value | 32,138 | 62,412 |
Corporate Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 120,012 | 100,543 |
Gross Unrealized Gain | 89 | |
Gross Unrealized (Loss) | (74) | (1,037) |
Fair Value | 120,027 | 99,506 |
Municipal Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 2,165 | 7,900 |
Gross Unrealized (Loss) | (41) | |
Fair Value | 2,165 | 7,859 |
Government Agency Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 5,693 | 22,066 |
Gross Unrealized Gain | 11 | |
Gross Unrealized (Loss) | (157) | |
Fair Value | $ 5,704 | $ 21,909 |
Investment Securities And Sho_8
Investment Securities And Short-Term Investments (Schedule Of Contractual Maturities Of Short-Term Investment Bonds) (Details) | 12 Months Ended |
Dec. 31, 2019 | |
US Treasury Securities [Member] | Minimum [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Contractual maturities of bonds | 1 month |
US Treasury Securities [Member] | Maximum [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Contractual maturities of bonds | 2 years |
Corporate Bonds [Member] | Minimum [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Contractual maturities of bonds | 1 month |
Corporate Bonds [Member] | Maximum [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Contractual maturities of bonds | 3 years |
Municipal Bonds [Member] | Minimum [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Contractual maturities of bonds | 1 month |
Government Agency Bonds [Member] | Minimum [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Contractual maturities of bonds | 3 months |
Government Agency Bonds [Member] | Maximum [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Contractual maturities of bonds | 2 years |
Investment Securities And Sho_9
Investment Securities And Short-Term Investments (Summary Of Short-Term Investment Activity) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Investment Securities And Short-Term Investments [Abstract] | |||
Proceeds from maturities and calls of short-term investments | $ 157,487 | $ 61,428 | $ 35,660 |
Purchases of short-term investments | $ 124,282 | $ 94,910 | $ 142,373 |
Fair Value Measurement (Narrati
Fair Value Measurement (Narrative) (Details) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019USD ($)item | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2019USD ($)item | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||||||||
Loss on an abandoned project | $ 940,000 | $ 1,693,000 | |||||||||
Feature Film Production Assets [Member] | |||||||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||||||||
Asset impairment charges | $ 98,000 | $ 759,000 | $ 246,000 | $ 198,000 | $ 2,052,000 | $ 1,325,000 | $ 563,000 | $ 925,000 | 1,301,000 | 4,865,000 | $ 5,472,000 |
Fair value of assets | $ 943,000 | $ 3,635,000 | $ 943,000 | 3,635,000 | 4,347,000 | ||||||
Feature Film Production Assets [Member] | Measurement Input, Discount Rate [Member] | |||||||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||||||||
Measurement input | item | 0.13 | 0.13 | |||||||||
Television Production Assets [Member] | |||||||||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||||||||||
Asset impairment charges | $ 0 | $ 0 | $ 0 |
Fair Value Measurement (Schedul
Fair Value Measurement (Schedule Of Fair Value Of Debt Instruments) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Convertible senior notes | $ 207,338 | $ 189,323 | |
Carrying Value [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Convertible senior notes | $ 192,262 | [1] | $ 187,371 |
[1] | The carrying value of the convertible debt instrument presented in the table above represents the face value of the convertible note less unamortized debt discount. |
Property And Equipment (Narrati
Property And Equipment (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property And Equipment [Abstract] | |||
Depreciation expense | $ 30,190 | $ 24,176 | $ 24,680 |
Loss on an abandoned project | 940 | 1,693 | |
Property and equipment | $ 174,752 | $ 148,089 |
Property And Equipment (Schedul
Property And Equipment (Schedule Of Property And Equipment) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Gross | $ 352,549 | $ 303,628 |
Less: accumulated depreciation and amortization | (177,797) | (155,539) |
Total | 174,752 | 148,089 |
Land, Buildings And Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross | 163,202 | 141,070 |
Equipment And Projects In Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross | 156,068 | 129,367 |
Corporate Aircraft [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross | 32,249 | 32,249 |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross | $ 1,030 | $ 942 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019USD ($)ft²item | Dec. 31, 2018USD ($) | |
Lessee, Lease, Description [Line Items] | ||
Operating and finance right of use asset | $ 39,266 | |
Operating and finance lease liabilities | 40,458 | |
Finance lease, right of use asset | $ 289,932 | |
Finance lease liability | $ 343,410 | |
Cumulative effect of adoption | 10,086 | |
Area of leased office | ft² | 415,266 | |
Term of free rent | 18 months | |
Finance lease term | 15 years | |
Lease payments, first five years | $ 19,101 | |
Lease payments, second five years | 20,927 | |
Lease payments, third five years | $ 22,754 | |
Finance lease, number of renewal options | item | 5 | |
Finance lease renewal term | 5 years | |
Number of renewal terms at lower than escalated rent or fair market value | item | 3 | |
Number of renewal terms at fair market value rent | item | 2 | |
Accounting Standards Update 2016-02 [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Finance lease, right of use asset | 16,620 | |
Finance lease liability | 17,812 | |
Cumulative effect of adoption | $ 1,192 | |
Leaseholds and Leasehold Improvements [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Finance lease, right of use asset | $ 285,762 | |
Finance lease liability | 325,453 | |
Tenant improvement allowances | $ 40,069 | |
Minimum [Member] | Land, Buildings And Improvements [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Remaining lease terms | 1 year | |
Minimum [Member] | Equipment And Projects In Progress [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Lease term | 1 year | |
Maximum [Member] | Land, Buildings And Improvements [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Remaining lease terms | 8 years | |
Maximum [Member] | Equipment And Projects In Progress [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Lease term | 3 years |
Leases (Quantitative Informatio
Leases (Quantitative Information About Leases) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019USD ($) | ||
Leases [Abstract] | ||
Amortization of right-of-use assets | $ 12,556 | |
Interest on lease liabilities | 10,020 | |
Operating lease costs | 8,693 | |
Other short-term and variable lease costs | 1,914 | |
Sublease income | (64) | [1] |
Total lease costs | 33,119 | |
Operating cash flows from finance leases | 607 | |
Operating cash flows from operating leases | 7,945 | |
Finance cash flows from finance leases | 8,352 | |
Right-of-use assets obtained in exchange for new finance lease liabilities | 286,330 | [2] |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 6,283 | [2] |
Weighted-average remaining lease term - finance leases | 29 years 9 months 18 days | |
Weighted-average remaining lease term - operating leases | 4 years 3 months 18 days | |
Weighted-average discount rate - finance leases | 4.80% | |
Weighted-average discount rate - operating leases | 4.60% | |
[1] | Sublease income excludes rental income from owned properties. | |
[2] | Includes right-of-use assets for leases that commenced after January 1, 2019. |
Leases (Maturity Of Lease Liabi
Leases (Maturity Of Lease Liabilities) (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Operating Leases | |
2020 | $ 7,510 |
2021 | 6,348 |
2022 | 3,396 |
2023 | 1,917 |
2024 | 1,613 |
Thereafter | 2,670 |
Total lease payment | 23,454 |
Less: imputed interest | (2,297) |
Total future minimum lease payments | 21,157 |
Finance Leases | |
2020 | 8,292 |
2021 | 20,883 |
2022 | 19,345 |
2023 | 19,255 |
2024 | 19,205 |
Thereafter | 636,313 |
Total lease payment | 723,293 |
Less: imputed interest | (379,883) |
Total future minimum lease payments | $ 343,410 |
Feature Film Production Asset_3
Feature Film Production Assets, Net (Narrative) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2019USD ($)item | Dec. 31, 2018USD ($)item | Dec. 31, 2017USD ($) | |||||||||
Finite-Lived Intangible Assets [Line Items] | |||||||||||||||||||
Future amortization expense, percentage, within twelve months | 27.00% | ||||||||||||||||||
Future amortization expense, percentage, one through three years | 63.00% | 63.00% | |||||||||||||||||
Future amortization expense, percentage, one through five years | 80.00% | ||||||||||||||||||
Amortization of feature film production assets | $ 4,135 | $ 3,106 | $ 11,748 | ||||||||||||||||
Number of feature films | item | 1 | 1 | |||||||||||||||||
Net revenues | $ 322,802 | [1],[2],[3] | $ 186,383 | [1],[2],[3] | $ 268,809 | [1],[2],[3] | $ 182,448 | [1],[3] | $ 272,506 | [1],[2],[3] | $ 188,391 | [1],[2],[3] | $ 281,542 | [1],[2],[3] | $ 187,721 | [1],[3] | $ 960,442 | $ 930,160 | 800,959 |
Number of films direct to DVD | item | 1 | ||||||||||||||||||
Total number of films | item | 2 | ||||||||||||||||||
Theatrical film costs released during period | 1,998 | $ 1,998 | |||||||||||||||||
Number of theatrical films in production | item | 3 | ||||||||||||||||||
Cost of theatrical film development | $ 282 | 851 | 157 | ||||||||||||||||
Feature Film Production Assets [Member] | |||||||||||||||||||
Finite-Lived Intangible Assets [Line Items] | |||||||||||||||||||
Asset impairment charges | $ 98 | $ 759 | $ 246 | $ 198 | $ 2,052 | $ 1,325 | $ 563 | $ 925 | 1,301 | $ 4,865 | $ 5,472 | ||||||||
Buddy Games, Feature Film [Member] | |||||||||||||||||||
Finite-Lived Intangible Assets [Line Items] | |||||||||||||||||||
Net revenues | $ 1,250 | ||||||||||||||||||
[1] | Net income for the second quarter of 2019 includes a $ 1,151 investment gain related to favorable observable price adjustments related to two of our nonmarketable equity securities. Net income for the first, second, third and fourth quarters of 2019 includes unrealized holding losses of $ 194 , $ 3,597 , $ 568 and $ 85 , respectively, on a marketable equity security. Net income for the second and fourth quarters of 2018 includes impairment charges of $ 3,000 and $ 773 , respectively, related to our nonmarketable equity investments. Net income for the third quarter of 2018 includes a $ 2,181 investment gain related to a favorable observable price adjustment related to a nonmarketable equity investment. Net income for the fourth quarter of 2018 includes a $ 2,474 favorable mark-to-market adjustment on a marketable equity security. See Note 5, Investment Securities and Short-Term Investments , for further discussi on. | ||||||||||||||||||
[2] | Net income for the second, third and fourth quarters of 2019 includes a benefit of $ 669 , $ 12,498 and $ 372 , respectively, related to television production incentives. Net income for the third and fourth quarters of 2018 includes a benefit of $ 11,702 and $ 464 , respectively, related to television production incentives. | ||||||||||||||||||
[3] | Operating expenses for the first, second, third and fourth quarter of 2019 includes impairment charges of $ 198 , $ 246 , $ 759 and $ 98 , respectively, related to certain of our feature films. Operating expenses for the first, second, third and fourth quarters of 2018 includes impairment charges of $ 925 , $ 563 , $ 1,325 and $ 2,052 , respectively, related to certain of our feature films. See Note 9, Feature Film Production Assets , for further discussion. |
Feature Film Production Asset_4
Feature Film Production Assets, Net (Schedule Of Feature Film Production Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Feature Film Production Assets, Net [Abstract] | ||
In release | $ 8,273 | $ 12,430 |
In production | 7,397 | 707 |
In development | 203 | 421 |
Total | $ 15,873 | $ 13,558 |
Television Production Assets,_3
Television Production Assets, Net (Schedule Of Television Production Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Television Production Assets, Net [Abstract] | ||
In release | $ 1,042 | $ 1,308 |
Completed but not released | 171 | |
In production | 2,959 | 6,165 |
Total | $ 4,172 | $ 7,473 |
Television Production Assets,_4
Television Production Assets, Net (Amortization Of Television Production Assets) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization | $ 4,135,000 | $ 3,106,000 | $ 11,748,000 |
Television Production Assets [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization | 29,990,000 | 29,568,000 | 21,137,000 |
Asset impairment charges | 0 | 0 | 0 |
Television Production Assets [Member] | Television Programming [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization | 24,815,000 | 22,312,000 | 17,399,000 |
Television Production Assets [Member] | WWE Network Programming [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization | $ 5,175,000 | $ 7,256,000 | $ 3,738,000 |
Accounts Payable And Accrued _3
Accounts Payable And Accrued Expenses (Narrative) (Details) | Dec. 31, 2019 |
Maximum [Member] | |
Individual accrual categories percentage of current liabilities | 5.00% |
Accounts Payable And Accrued _4
Accounts Payable And Accrued Expenses (Schedule Of Accounts Payable And Accrued Expenses) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Accounts Payable And Accrued Expenses [Abstract] | ||
Trade related | $ 9,282 | $ 12,198 |
Staff related | 8,651 | 10,255 |
Management incentive compensation | 6,481 | 37,103 |
Talent related | 8,184 | 8,799 |
Accrued WWE Network related expenses | 5,510 | 2,054 |
Accrued event and television production | 16,627 | 13,881 |
Accrued legal and professional | 5,716 | 4,906 |
Accrued purchases of property and equipment | 4,997 | 13,464 |
Accrued film liability | 5,986 | 2,774 |
Accrued other | 9,158 | 14,724 |
Total | $ 80,592 | $ 120,158 |
Convertible Debt (Narrative) (D
Convertible Debt (Narrative) (Details) $ / shares in Units, shares in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($)item$ / shares | Dec. 31, 2017$ / sharesshares | Dec. 31, 2016$ / shares | Dec. 12, 2016$ / shares | |
Debt Instrument [Line Items] | ||||
Convertible note hedge, shares covered by hedge | shares | 8,630 | |||
Shares issuable under warrant agreement | shares | 8,630 | |||
Warrant strike price | $ / shares | $ 31.89 | $ 31.89 | $ 31.89 | |
Percentage of warrant strike price in excess of stock price | 60.00% | 60.00% | ||
Share Price | $ / shares | $ 19.93 | |||
3.375% Convertible Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 3.375% | |||
Maturity date | Jun. 15, 2023 | |||
Conversion ratio, shares | 40.1405 | |||
Conversion price | $ / shares | $ 24.91 | |||
3.375% Convertible Notes [Member] | Initial Purchasers [Member] | ||||
Debt Instrument [Line Items] | ||||
Convertible debt authorized for issuance | $ | $ 215,000,000 | |||
Maturity date | Dec. 15, 2023 | |||
3.375% Convertible Notes [Member] | Conversion Scenario 1 [Member] | ||||
Debt Instrument [Line Items] | ||||
Threshold within consecutive trading days | 20 | |||
Threshold of consecutive trading days | 30 | |||
3.375% Convertible Notes [Member] | Conversion Scenario 1 [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Stock price trigger percent | 130.00% | |||
3.375% Convertible Notes [Member] | Conversion Scenario 2 [Member] | ||||
Debt Instrument [Line Items] | ||||
Threshold within consecutive trading days | 5 | |||
Threshold of consecutive trading days | 10 | |||
Threshold percentage of stock price and conversion rate | 98.00% |
Convertible Debt (Schedule Of C
Convertible Debt (Schedule Of Convertible Notes) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | |||
Debt | $ 25,711 | $ 30,814 | |
3.375% Convertible Notes [Member] | |||
Debt Instrument [Line Items] | |||
Principal | 215,000 | 215,000 | |
Less: Unamortized debt discount | (22,738) | (27,629) | |
Less: Unamortized debt issuance costs | (3,595) | (4,281) | |
Debt | 188,667 | 183,090 | |
Equity component | [1] | $ 35,547 | $ 35,547 |
[1] | Recorded in the Consolidated Balance Sheets within additional paid-in capital. |
Convertible Debt (Schedule Of I
Convertible Debt (Schedule Of Interest Expense Recognized) (Details) - 3.375% Convertible Notes [Member] - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Debt Instrument [Line Items] | ||||
3.375% contractual coupon | $ 7,256 | $ 7,256 | $ 7,232 | |
Amortization of debt discount | 4,891 | 4,588 | 4,290 | |
Amortization of debt issuance costs | 686 | 617 | 553 | |
Additional interest on Convertible Notes | [1] | 1,370 | ||
Interest expense | $ 14,203 | $ 12,461 | $ 12,075 | |
Interest rate | 3.375% | |||
[1] | During the year ended December 31, 2019, additional nonrecurring interest expense was incurred pursuant to the notes’ indenture related to the removal of the restrictive legend and assignment of the unrestricted CUSIP on the Convertible Notes. |
Long-Term Debt And Credit Fac_3
Long-Term Debt And Credit Facility (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | May 23, 2019 | Dec. 31, 2018 | |
Mortgage [Member] | |||
Debt Instrument [Line Items] | |||
Principal amount | $ 23,000,000 | ||
Interest rate | 4.50% | ||
Monthly installments, interest only | $ 86,000 | ||
Monthly installments, interest and principal | $ 117,000 | ||
Maturity date | Jul. 5, 2025 | ||
Aircraft Financing [Member] | |||
Debt Instrument [Line Items] | |||
Principal amount | $ 31,568,000 | ||
Interest rate | 2.18% | ||
Monthly installments, interest and principal | $ 406,000 | ||
Maturity date | Aug. 7, 2020 | ||
Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Credit Facility borrowing capacity | $ 200,000,000 | $ 100,000,000 | |
Credit Facility amount outstanding | $ 0 | $ 0 | |
Credit Facility unutilized commitment fee rate | 0.175% | ||
Credit Facility available debt capacity | $ 200,000,000 | ||
Revolving Credit Facility [Member] | LIBOR [Member] | |||
Debt Instrument [Line Items] | |||
Credit Facility interest rate | 3.16% | ||
Minimum [Member] | Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Credit Facility maturity date | Jul. 29, 2021 | ||
Maximum [Member] | Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Credit Facility maturity date | May 24, 2024 |
Long-Term Debt And Credit Fac_4
Long-Term Debt And Credit Facility (Schedule Of Debt) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Current portion of long-term debt | $ 3,613 | $ 5,118 |
Long-term debt | 22,098 | 25,696 |
Debt | 25,711 | 30,814 |
Aircraft Financing [Member] | ||
Debt Instrument [Line Items] | ||
Current portion of long-term debt | 3,218 | 4,740 |
Long-term debt | 3,218 | |
Debt | 3,218 | |
Mortgage [Member] | ||
Debt Instrument [Line Items] | ||
Current portion of long-term debt | 395 | 378 |
Long-term debt | 22,098 | $ 22,478 |
Debt | $ 22,493 |
Long-Term Debt And Credit Fac_5
Long-Term Debt And Credit Facility (Schedule of Principal Repayments Under Note Obligation) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Debt | $ 25,711 | $ 30,814 |
Mortgage [Member] | ||
Debt Instrument [Line Items] | ||
December 31, 2020 | 395 | |
December 31, 2021 | 412 | |
December 31, 2022 | 431 | |
December 31, 2023 | 451 | |
December 31, 2024 | 472 | |
Thereafter | 20,332 | |
Debt | 22,493 | |
Aircraft Financing [Member] | ||
Debt Instrument [Line Items] | ||
December 31, 2020 | 3,218 | |
Debt | $ 3,218 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Taxes [Abstract] | |||
U.S. federal statutory income tax rate | 21.00% | 21.00% | 35.00% |
Discrete tax items | $ 7,919 | $ 22,650 | $ 9,160 |
Effective income rate without adoption of new accounting standards | 27.00% | 27.00% | 35.00% |
Effective income tax rate on (loss) income from continuing operations | 18.60% | 6.10% | 49.00% |
Foreign withholding taxes paid on income | $ 7,587 | $ 7,350 | $ 8,453 |
Deferred tax asset remeasurement | (111) | 10,878 | |
Deemed repatriation transition tax | (19) | 406 | |
Tax benefit from share based compensation | 65,885 | 115,792 | 21,457 |
Excess tax benefits related to the vesting of share-based compensation | 9,394 | 22,473 | 1,604 |
Deferred tax assets, net | $ 7,217 | 17,138 | |
Percentage of decrease in deferred tax assets resulting from bonus depreciation | 100.00% | ||
Valuation allowances | $ 1,080 | 1,103 | |
Previously unrecognized tax benefits recognized | 193 | 108 | |
Potential interest and penalties related to uncertain tax positions | 8 | 15 | |
Unrecognized tax benefits | 251 | 420 | $ 389 |
Accrued interest | 63 | 61 | |
Accrued penalties | 31 | $ 31 | |
Estimated decrease of previously unrecognized tax benefits | $ (146) |
Income Taxes (Schedule of Compo
Income Taxes (Schedule of Components of Tax Provision) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Taxes [Abstract] | |||
Current taxes: Federal | $ (294) | $ 81 | $ 7,785 |
Current taxes: State and local | 1,422 | 235 | 1,313 |
Current taxes: Foreign | 7,028 | 7,191 | 8,750 |
Deferred taxes: Federal | 8,015 | (1,774) | 13,177 |
Deferred taxes: State and local | 1,412 | 737 | 396 |
Deferred taxes: Foreign | 34 | (21) | (1) |
Provision for income taxes | $ 17,617 | $ 6,449 | $ 31,420 |
Income Taxes (Schedule of Com_2
Income Taxes (Schedule of Components of (Loss) Income Before Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Taxes [Abstract] | |||
United States | $ 92,701 | $ 104,338 | $ 62,280 |
Foreign | 1,977 | 1,699 | 1,780 |
Income before income taxes | $ 94,678 | $ 106,037 | $ 64,060 |
Income Taxes (Schedule of Effec
Income Taxes (Schedule of Effective Income Tax Rate Reconciliation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Taxes [Abstract] | |||
Statutory U.S. federal tax | $ 19,880 | $ 22,268 | $ 22,421 |
State and local taxes, net of federal tax benefit | 3,962 | 4,915 | 1,472 |
Foreign rate differential | (53) | (50) | (298) |
Tax exempt interest income | (16) | (32) | (86) |
Qualified production activity deduction | (1,750) | ||
Nondeductible executive compensation | 1,669 | 2,672 | 136 |
Unrecognized tax benefits | (23) | 46 | (146) |
Meals and entertainment | 261 | 233 | 317 |
Employee Stock Purchase Plan | (87) | 248 | 44 |
Deferred tax asset remeasurement | (111) | 10,878 | |
Deemed repatriation transition tax | (19) | 406 | |
Foreign-derived intangible income (FDII) | (422) | (1,346) | |
Global intangible low-taxed income (GILTI) | 273 | 122 | |
Excess tax benefits related to the vesting of share-based compensation | (9,394) | (22,473) | (1,604) |
Other | 1,567 | (24) | (370) |
Provision for income taxes | $ 17,617 | $ 6,449 | $ 31,420 |
Income Taxes (Schedule of Defer
Income Taxes (Schedule of Deferred Tax Assets and Deferred Tax Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Income Taxes [Abstract] | ||
Accounts receivable | $ 110 | $ 145 |
Inventory | 1,702 | 1,329 |
Deferred income | 1,555 | 1,932 |
Stock compensation | 5,572 | 7,090 |
Net operating loss carryforward | 1,080 | 1,103 |
Foreign tax credits | 7,158 | 5,055 |
Investments | 695 | 2,193 |
Intangible assets | 1,750 | 1,619 |
Capitalized feature film production costs | 1,410 | 1,418 |
Accrued liabilities and reserves | 1,041 | 1,278 |
Lease obligations | 7,951 | |
Federal benefit related to uncertain tax positions | 40 | 108 |
Deferred tax assets, gross | 30,064 | 23,270 |
Valuation allowance | (1,080) | (1,103) |
Deferred tax assets, net | 28,984 | 22,167 |
Property and equipment depreciaton | (12,509) | (2,672) |
Deferred revenue | (1,664) | |
Right-of-use assets | (4,470) | |
Investments | (3,124) | (2,357) |
Deferred tax liabilities | (21,767) | (5,029) |
Total deferred tax assets, net | $ 7,217 | $ 17,138 |
Income Taxes (Schedule of Unrec
Income Taxes (Schedule of Unrecognized Tax Benefit Activity) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Taxes [Abstract] | ||
Beginning Balance | $ 420 | $ 389 |
Increase to unrecognized tax benefits recorded for positions taken during the current year | 7 | 64 |
Increase to unrecognized tax benefits recorded for positions taken during a prior period | 9 | 65 |
Decrease in unrecognized tax benefits relating to settlements with taxing authorities | (7) | |
Decrease to unrecognized tax benefits resulting from a lapse of the applicable statute of limitations | (185) | (91) |
Ending Balance | $ 251 | $ 420 |
Film And Television Productio_3
Film And Television Production Incentives (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Film And Television Production Incentives [Abstract] | ||||||||
Television production incentives | $ 372 | $ 12,498 | $ 669 | $ 464 | $ 11,702 | $ 13,539 | $ 12,166 | $ 11,260 |
Feature film production incentives | 288 | 3,683 | ||||||
Infrastructure improvement incentives on qualifying capital projects | 1,438 | |||||||
Total | $ 15,265 | $ 12,166 | $ 14,943 |
Commitments And Contingencies_2
Commitments And Contingencies (Schedule of Future Minimum Payments Under Agreements) (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Commitments And Contingencies [Abstract] | |
Service Contracts and Talent Commitments, 2020 | $ 28,836 |
Service Contracts and Talent Commitments, 2021 | 18,360 |
Service Contracts and Talent Commitments, 2022 | 11,941 |
Service Contracts and Talent Commitments, 2023 | 263 |
Service Contracts and Talent Commitments, 2024 | 262 |
Service Contracts and Talent Commitments, Thereafter | 177 |
Service Contracts and Talent Commitments, Total | $ 59,839 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | |
Related Party Transaction [Line Items] | |||
Equity method investments | $ 14,342,000 | $ 14,508,000 | |
Alpha Entertainment, LLC [Member] | |||
Related Party Transaction [Line Items] | |||
Equity method investments | $ 0 | ||
Related party billings | 3,250,000 | 1,305,000 | |
Related party accounts receivable | $ 236,000 | $ 474,000 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($)item$ / sharesshares | Dec. 31, 2018USD ($)$ / shares | Dec. 31, 2017USD ($)$ / shares | |
Authorized stock repurchase, amount | $ 500,000 | ||
Repurchase and retirement of common stock, Shares | shares | 1,398,385 | ||
Average share price | $ / shares | $ 59.67 | ||
Repurchase and retirement of common stock | $ 83,441 | ||
Remaining authorized stock repurchase, amount | $ 416,559 | ||
Common stock conversion basis | 1 | ||
Quarterly dividends paid per share | $ / shares | $ 0.12 | $ 0.12 | $ 0.12 |
Dividends paid | $ 37,431 | $ 37,243 | $ 36,854 |
Common Class B [Member] | |||
Number of votes | item | 10 | ||
Common Class A [Member] | |||
Number of votes | item | 1 | ||
Common Stock [Member] | Common Class A [Member] | |||
Repurchase and retirement of common stock, Shares | shares | 1,398,000 | ||
Repurchase and retirement of common stock | $ 14 | ||
Additional Paid-In Capital [Member] | |||
Repurchase and retirement of common stock | 12,436 | ||
Accumulated Deficit [Member] | |||
Repurchase and retirement of common stock | $ 70,991 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($)itemshares | Dec. 31, 2018USD ($)shares | Dec. 31, 2017USD ($)shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares available for future grants | shares | 3,300,000 | ||
Stock-based compensation expense | $ 29,396 | $ 39,304 | $ 24,151 |
Common stock reserved for issuance | shares | 1,500,000 | ||
Number of performance periods | item | 5 | ||
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Requisite service period | 3 years 6 months | ||
Total unrecognized stock-based compensation expense | $ 6,247 | ||
Weighted-average period of recognition | 1 year 7 months 6 days | ||
Awards granted | shares | 88,265 | ||
Weighted-average grant-date fair value of units granted | $ 7,327 | $ 6,872 | 6,054 |
Performance Stock Units (PSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Requisite service period | 3 years 6 months | ||
Total unrecognized stock-based compensation expense | $ 16,633 | ||
Weighted-average period of recognition | 1 year 3 months 18 days | ||
Awards granted | shares | 155,872 | 369,996 | |
Increase in units | shares | 297,061 | ||
Weighted-average grant-date fair value of units granted | $ 10,111 | $ 27,635 | 16,833 |
Performance Stock Units (PSUs) [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance issuance as percent or original grant | 0.00% | ||
Performance Stock Units (PSUs) [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance issuance as percent or original grant | 200.00% | ||
Performance Stock Units, Market Condition [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total unrecognized stock-based compensation expense | $ 1,855 | ||
Weighted-average period of recognition | 3 years 3 months 18 days | ||
Performance issuance as percent or original grant, in the event of negative shareholder return | 100.00% | ||
Weighted-average grant-date fair value of units granted | $ 16,168 | 16,168 | |
Performance Stock Units, Market Condition [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance issuance as percent or original grant | 50.00% | ||
Performance Stock Units, Market Condition [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance issuance as percent or original grant | 175.00% | ||
RSUs, PSUs and PSU-TSRs [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 28,025 | $ 37,323 | $ 23,875 |
Employee Stock Purchase Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Employee base compensation contribution percentage | 10.00% | ||
Purhcase price percentage of fair market value | 85.00% | ||
Shares of common stock purchased | shares | 34,001 | 65,255 | 72,882 |
Stock-based compensation expense | $ 488 | $ 1,981 | $ 276 |
Stock-Based Compensation (Summa
Stock-Based Compensation (Summary Of RSU Activity) (Details) - Restricted Stock Units (RSUs) [Member] | 12 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Units, Unvested at January 1, 2019 | shares | 409,665 |
Units, Granted | shares | 88,265 |
Units, Vested | shares | (200,793) |
Units, Forfeited | shares | (27,210) |
Units, Dividend equivalents | shares | 2,480 |
Units, Unvested at December 31, 2019 | shares | 272,407 |
Weighted-Average Grant-Date Fair Value, Unvested at January 1, 2019 | $ / shares | $ 26.52 |
Weighted-Average Grant-Date Fair Value, Granted | $ / shares | 83.01 |
Weighted-Average Grant-Date Fair Value, Vested | $ / shares | 23.72 |
Weighted-Average Grant-Date Fair Value, Forfeited | $ / shares | 41.60 |
Weighted-Average Grant-Date Fair Value, Dividend equivalents | $ / shares | 29.04 |
Weighted-Average Grant-Date Fair Value, Unvested at December 31, 2019 | $ / shares | $ 45.41 |
Stock-Based Compensation (Sched
Stock-Based Compensation (Schedule of RSU Stock-Based Compensation Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Tax benefits realized | $ 65,885 | $ 115,792 | $ 21,457 |
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Tax benefits realized | 13,813 | 16,272 | 2,920 |
Weighted-average grant-date fair value of units granted | 7,327 | 6,872 | 6,054 |
Fair value of units vested | $ 4,763 | $ 3,709 | $ 2,490 |
Stock-Based Compensation (Sum_2
Stock-Based Compensation (Summary Of PSU Activity) (Details) - Performance Stock Units (PSUs) [Member] - $ / shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Units, Unvested at January 1, 2019 | 1,116,085 | |
Units, Granted | 155,872 | 369,996 |
Units, Achievement adjustment | 297,061 | |
Units, Vested | (837,597) | |
Units, Forfeited | (16,344) | |
Units, Dividend equivalents | 6,321 | |
Units, Unvested at December 31, 2019 | 721,398 | 1,116,085 |
Weighted-Average Grant-Date Fair Value, Unvested at January 1, 2019 | $ 39.98 | |
Weighted-Average Grant-Date Fair Value, Granted | 64.87 | |
Weighted-Average Grant-Date Fair Value, Achievement adjustment | 83.51 | |
Weighted-Average Grant-Date Fair Value, Vested | 38.83 | |
Weighted-Average Grant-Date Fair Value, Forfeited | 65.19 | |
Weighted-Average Grant-Date Fair Value, Dividend equivalents | 56.74 | |
Weighted-Average Grant-Date Fair Value, Unvested at December 31, 2019 | $ 67.97 | $ 39.98 |
Stock-Based Compensation (Sch_2
Stock-Based Compensation (Schedule of PSU Stock-Based Compensation Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Tax benefits realized | $ 65,885 | $ 115,792 | $ 21,457 |
Performance Stock Units (PSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Tax benefits realized | 52,072 | 99,520 | 18,538 |
Weighted-average grant-date fair value of units granted | 10,111 | 27,635 | 16,833 |
Fair value of units vested | $ 32,523 | $ 24,591 | $ 15,301 |
Stock-Based Compensation (Sum_3
Stock-Based Compensation (Summary Of PSU-TSR Activity) (Details) - Performance Stock Units, Market Condition [Member] | 12 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Units, Unvested at January 1, 2019 | shares | 340,971 |
Units, Unvested at December 31, 2019 | shares | 340,971 |
Weighted-Average Grant-Date Fair Value, Unvested at January 1, 2019 | $ / shares | $ 47.42 |
Weighted-Average Grant-Date Fair Value, Unvested at December 31, 2019 | $ / shares | $ 47.42 |
Stock-Based Compensation (Sch_3
Stock-Based Compensation (Schedule of PSU-TSR Stock-Based Compensation Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Tax benefits realized | $ 65,885 | $ 115,792 | $ 21,457 |
Performance Stock Units, Market Condition [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Tax benefits realized | |||
Weighted-average grant-date fair value of units granted | 16,168 | 16,168 | |
Fair value of units vested |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Employee Benefit Plans [Abstract] | |||
Matching contributions | 50.00% | ||
Percentage of eligible compensation | 6.00% | ||
Expense for matching contributions | $ 2,977,000 | $ 2,570,000 | $ 2,341,000 |
Discretionary contributions | $ 0 | $ 0 | $ 0 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) | 12 Months Ended | ||
Dec. 31, 2019segmentcustomer | Dec. 31, 2018customer | Dec. 31, 2017customer | |
Segment Information [Abstract] | |||
Number of reportable segments | segment | 3 | ||
Number of major customers | customer | 2 | 2 | 1 |
Segment Information (Summary of
Segment Information (Summary of Financial Information For Reportable Segments) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2019 | [1],[2],[3] | Sep. 30, 2019 | [1],[2],[3] | Jun. 30, 2019 | [1],[2],[3] | Mar. 31, 2019 | [1],[3] | Dec. 31, 2018 | [1],[2],[3] | Sep. 30, 2018 | [1],[2],[3] | Jun. 30, 2018 | [1],[2],[3] | Mar. 31, 2018 | [1],[3] | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||||||||||||||||
Total net revenues | $ 322,802 | $ 186,383 | $ 268,809 | $ 182,448 | $ 272,506 | $ 188,391 | $ 281,542 | $ 187,721 | $ 960,442 | $ 930,160 | $ 800,959 | ||||||||
Depreciation and amortization | 34,127 | 25,069 | 26,050 | ||||||||||||||||
Total OIBDA | 180,033 | 178,851 | 136,078 | ||||||||||||||||
Media [Member] | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Total net revenues | 743,099 | 683,351 | 535,570 | ||||||||||||||||
Depreciation and amortization | 12,592 | 11,863 | 11,884 | ||||||||||||||||
Total OIBDA | 224,136 | 210,579 | 141,625 | ||||||||||||||||
Live Events [Member] | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Total net revenues | 125,585 | 144,203 | 151,705 | ||||||||||||||||
Total OIBDA | 9,376 | 20,543 | 27,115 | ||||||||||||||||
Consumer Products [Member] | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Total net revenues | 91,758 | 102,606 | 113,684 | ||||||||||||||||
Total OIBDA | 28,559 | 28,376 | 37,727 | ||||||||||||||||
Corporate [Member] | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Depreciation and amortization | 21,535 | 13,206 | 14,166 | ||||||||||||||||
Total OIBDA | $ (82,038) | $ (80,647) | $ (70,389) | ||||||||||||||||
[1] | Net income for the second quarter of 2019 includes a $ 1,151 investment gain related to favorable observable price adjustments related to two of our nonmarketable equity securities. Net income for the first, second, third and fourth quarters of 2019 includes unrealized holding losses of $ 194 , $ 3,597 , $ 568 and $ 85 , respectively, on a marketable equity security. Net income for the second and fourth quarters of 2018 includes impairment charges of $ 3,000 and $ 773 , respectively, related to our nonmarketable equity investments. Net income for the third quarter of 2018 includes a $ 2,181 investment gain related to a favorable observable price adjustment related to a nonmarketable equity investment. Net income for the fourth quarter of 2018 includes a $ 2,474 favorable mark-to-market adjustment on a marketable equity security. See Note 5, Investment Securities and Short-Term Investments , for further discussi on. | ||||||||||||||||||
[2] | Net income for the second, third and fourth quarters of 2019 includes a benefit of $ 669 , $ 12,498 and $ 372 , respectively, related to television production incentives. Net income for the third and fourth quarters of 2018 includes a benefit of $ 11,702 and $ 464 , respectively, related to television production incentives. | ||||||||||||||||||
[3] | Operating expenses for the first, second, third and fourth quarter of 2019 includes impairment charges of $ 198 , $ 246 , $ 759 and $ 98 , respectively, related to certain of our feature films. Operating expenses for the first, second, third and fourth quarters of 2018 includes impairment charges of $ 925 , $ 563 , $ 1,325 and $ 2,052 , respectively, related to certain of our feature films. See Note 9, Feature Film Production Assets , for further discussion. |
Segment Information (Reconcilia
Segment Information (Reconciliation Of Total Operating (Loss) Income To Total Adjusted OIBDA) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Segment Reporting Information [Line Items] | ||||
Operating income | $ 116,510 | $ 114,478 | $ 75,578 | |
Depreciation and amortization | 34,127 | 25,069 | 26,050 | |
Stock-based compensation | 29,396 | 39,304 | 24,151 | |
Other adjustments | [1] | 10,299 | ||
Total OIBDA | $ 180,033 | $ 178,851 | 136,078 | |
Non-recurring legal matters and other contractual obligations | 5,586 | |||
Feature Film Production Assets [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Asset impairment charges, excluding immaterial amounts | $ 4,713 | |||
[1] | Other adjustments for the year ended December 31, 2017 include $ 5,586 of non-recurring legal matters and other contractual obligations, and $ 4,713 of certain impairment charges related to our feature films. |
Segment Information (Schedule o
Segment Information (Schedule of Net Revenues by Major Geographic Region) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2019 | [1],[2],[3] | Sep. 30, 2019 | [1],[2],[3] | Jun. 30, 2019 | [1],[2],[3] | Mar. 31, 2019 | [1],[3] | Dec. 31, 2018 | [1],[2],[3] | Sep. 30, 2018 | [1],[2],[3] | Jun. 30, 2018 | [1],[2],[3] | Mar. 31, 2018 | [1],[3] | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||||||||||||||||
Total net revenues | $ 322,802 | $ 186,383 | $ 268,809 | $ 182,448 | $ 272,506 | $ 188,391 | $ 281,542 | $ 187,721 | $ 960,442 | $ 930,160 | $ 800,959 | ||||||||
North America [Member] | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Total net revenues | 656,642 | 612,322 | 599,697 | ||||||||||||||||
Europe/Middle East/Africa [Member] | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Total net revenues | 223,471 | 237,196 | 125,639 | ||||||||||||||||
Asia Pacific [Member] | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Total net revenues | 67,493 | 69,064 | 61,568 | ||||||||||||||||
Latin America [Member] | |||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||
Total net revenues | $ 12,836 | $ 11,578 | $ 14,055 | ||||||||||||||||
[1] | Net income for the second quarter of 2019 includes a $ 1,151 investment gain related to favorable observable price adjustments related to two of our nonmarketable equity securities. Net income for the first, second, third and fourth quarters of 2019 includes unrealized holding losses of $ 194 , $ 3,597 , $ 568 and $ 85 , respectively, on a marketable equity security. Net income for the second and fourth quarters of 2018 includes impairment charges of $ 3,000 and $ 773 , respectively, related to our nonmarketable equity investments. Net income for the third quarter of 2018 includes a $ 2,181 investment gain related to a favorable observable price adjustment related to a nonmarketable equity investment. Net income for the fourth quarter of 2018 includes a $ 2,474 favorable mark-to-market adjustment on a marketable equity security. See Note 5, Investment Securities and Short-Term Investments , for further discussi on. | ||||||||||||||||||
[2] | Net income for the second, third and fourth quarters of 2019 includes a benefit of $ 669 , $ 12,498 and $ 372 , respectively, related to television production incentives. Net income for the third and fourth quarters of 2018 includes a benefit of $ 11,702 and $ 464 , respectively, related to television production incentives. | ||||||||||||||||||
[3] | Operating expenses for the first, second, third and fourth quarter of 2019 includes impairment charges of $ 198 , $ 246 , $ 759 and $ 98 , respectively, related to certain of our feature films. Operating expenses for the first, second, third and fourth quarters of 2018 includes impairment charges of $ 925 , $ 563 , $ 1,325 and $ 2,052 , respectively, related to certain of our feature films. See Note 9, Feature Film Production Assets , for further discussion. |
Concentration Of Credit Risk (D
Concentration Of Credit Risk (Details) - Customer Concentration Risk [Member] - Accounts Receivable [Member] | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 10.00% | |
Customer One [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 49.00% | 30.00% |
Selected Quarterly Financial _3
Selected Quarterly Financial Information (Schedule Of Selected Quarterly Financial Information) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |||||||||||
Quarterly Financial Information [Line Items] | |||||||||||||||||||||
Net revenues | $ 322,802 | [1],[2],[3] | $ 186,383 | [1],[2],[3] | $ 268,809 | [1],[2],[3] | $ 182,448 | [1],[3] | $ 272,506 | [1],[2],[3] | $ 188,391 | [1],[2],[3] | $ 281,542 | [1],[2],[3] | $ 187,721 | [1],[3] | $ 960,442 | $ 930,160 | $ 800,959 | ||
Operating expenses | 171,544 | [1],[2],[3] | 133,842 | [1],[2],[3] | 197,363 | [1],[2],[3] | 135,450 | [1],[3] | 169,433 | [1],[2],[3] | 120,797 | [1],[2],[3] | 198,891 | [1],[2],[3] | 120,061 | [1],[3] | 638,199 | 609,182 | 538,525 | ||
Net income (loss) | $ 69,253 | [1],[2],[3] | $ 5,790 | [1],[2],[3] | $ 10,414 | [1],[2],[3] | $ (8,396) | [1],[3] | $ 41,218 | [1],[2],[3] | $ 33,590 | [1],[2],[3] | $ 9,945 | [1],[2],[3] | $ 14,835 | [1],[3] | $ 77,061 | $ 99,588 | $ 32,640 | ||
Earnings per share: basic | $ 0.89 | [1],[2],[3] | $ 0.07 | [1],[2],[3] | $ 0.13 | [1],[2],[3] | $ (0.11) | [1],[3] | $ 0.55 | [1],[2],[3] | $ 0.43 | [1],[2],[3] | $ 0.13 | [1],[2],[3] | $ 0.19 | [1],[3] | $ 0.99 | $ 1.28 | $ 0.43 | ||
Television production incentives | $ 372 | $ 12,498 | $ 669 | $ 464 | $ 11,702 | $ 13,539 | $ 12,166 | $ 11,260 | |||||||||||||
Impairment of an equity investment | 85 | 568 | 3,597 | $ 194 | 773 | $ 3,000 | |||||||||||||||
Observable price change adjustments | 1,151 | 2,181 | 1,151 | [4] | 2,181 | [4] | |||||||||||||||
Mark to market adjustment | 2,474 | ||||||||||||||||||||
Feature Film Production Assets [Member] | |||||||||||||||||||||
Quarterly Financial Information [Line Items] | |||||||||||||||||||||
Impairment charges | $ 98 | $ 759 | $ 246 | $ 198 | $ 2,052 | $ 1,325 | $ 563 | $ 925 | $ 1,301 | $ 4,865 | $ 5,472 | ||||||||||
[1] | Net income for the second quarter of 2019 includes a $ 1,151 investment gain related to favorable observable price adjustments related to two of our nonmarketable equity securities. Net income for the first, second, third and fourth quarters of 2019 includes unrealized holding losses of $ 194 , $ 3,597 , $ 568 and $ 85 , respectively, on a marketable equity security. Net income for the second and fourth quarters of 2018 includes impairment charges of $ 3,000 and $ 773 , respectively, related to our nonmarketable equity investments. Net income for the third quarter of 2018 includes a $ 2,181 investment gain related to a favorable observable price adjustment related to a nonmarketable equity investment. Net income for the fourth quarter of 2018 includes a $ 2,474 favorable mark-to-market adjustment on a marketable equity security. See Note 5, Investment Securities and Short-Term Investments , for further discussi on. | ||||||||||||||||||||
[2] | Net income for the second, third and fourth quarters of 2019 includes a benefit of $ 669 , $ 12,498 and $ 372 , respectively, related to television production incentives. Net income for the third and fourth quarters of 2018 includes a benefit of $ 11,702 and $ 464 , respectively, related to television production incentives. | ||||||||||||||||||||
[3] | Operating expenses for the first, second, third and fourth quarter of 2019 includes impairment charges of $ 198 , $ 246 , $ 759 and $ 98 , respectively, related to certain of our feature films. Operating expenses for the first, second, third and fourth quarters of 2018 includes impairment charges of $ 925 , $ 563 , $ 1,325 and $ 2,052 , respectively, related to certain of our feature films. See Note 9, Feature Film Production Assets , for further discussion. | ||||||||||||||||||||
[4] | During the year ended December 31, 2019, the Company recorded upward adjustments to the carrying value related to two of the Company’s equity investments. The adjustments were the result of an observable price change events in connection with financing rounds completed by the investees where the underlying value of the preferred shares issued were greater than the value of WWE’s substantially similar preferred shares in the investees. During the year ended December 31, 2018, the Company recorded an upward adjustment to the carrying value related to one of the Company’s equity investments. The adjustment was the result of an observable price change event in connection with a financing round completed by the investee where the underlying value of the preferred shares issued were greater than the value per share of WWE’s substantially similar preferred shares in the investee. These upward adjustments are reflected in Other income, net in our Consolidated Statements of Operations. |
Valuation and Qualifying Acco_2
Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Allowance For Doubtful Accounts [Member] | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at Beginning of Year | $ 651 | $ 1,342 | $ 5,945 | |
Charges to Expense/Against Revenues | 31 | (388) | 537 | |
Deductions/Adjustments | [1] | (263) | (303) | (5,140) |
Balance at End of Year | 419 | 651 | 1,342 | |
Home Video Allowance For Returns [Member] | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at Beginning of Year | 343 | 1,662 | 2,273 | |
Charges to Expense/Against Revenues | 129 | 6,890 | ||
Deductions/Adjustments | [1] | 6 | (1,448) | (7,501) |
Balance at End of Year | 349 | 343 | 1,662 | |
Allowance For WWE Network Refunds And Chargebacks [Member] | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at Beginning of Year | 15 | 30 | 40 | |
Charges to Expense/Against Revenues | 410 | 230 | 353 | |
Deductions/Adjustments | [1] | (375) | (245) | (363) |
Balance at End of Year | $ 50 | $ 15 | $ 30 | |
[1] | Includes deductions which are comprised primarily of write-offs of specific bad debts and returns of products, as well as certain adjustments to the allowance account, including reserves for amounts due from customers that have not been recognized as revenue. |