Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Mar. 20, 2020 | Jun. 28, 2019 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | ICON | ||
Entity Registrant Name | ICONIX BRAND GROUP, INC. | ||
Entity Central Index Key | 0000857737 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Shell Company | false | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity File Number | 001-10593 | ||
Entity Tax Identification Number | 11-2481903 | ||
Entity Address, Address Line One | 1450 Broadway | ||
Entity Address, City or Town | New York | ||
Entity Address, State or Province | NY | ||
Entity Address, Postal Zip Code | 10018 | ||
City Area Code | 212 | ||
Local Phone Number | 730-0030 | ||
Entity Interactive Data Current | Yes | ||
Title of 12(b) Security | Common Stock, $.001 Par Value | ||
Security Exchange Name | NASDAQ | ||
Entity Incorporation, State or Country Code | DE | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Documents Incorporated by Reference | Portions of the registrant’s definitive Proxy Statement relating to the registrant’s 2020 Annual Meeting of Stockholders, to be filed with the U.S. Securities and Exchange Commission within 120 days following the end of the registrant’s fiscal year, are incorporated by reference in Part III of this annual report on Form 10-K as indicated herein. | ||
Entity Common Stock, Shares Outstanding | 11,807,120 | ||
Entity Public Float | $ 9.7 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current Assets: | ||
Cash and cash equivalents | $ 55,465 | $ 66,609 |
Restricted cash | 15,946 | 16,026 |
Accounts receivable, net | 31,368 | 39,477 |
Contract asset | 9,448 | 4,802 |
Other assets – current | 21,440 | 28,057 |
Total Current Assets | 133,667 | 154,971 |
Property and equipment: | ||
Furniture, fixtures and equipment | 20,087 | 22,525 |
Less: Accumulated depreciation | (17,545) | (17,644) |
Property, Plant and Equipment, Net, Total | 2,542 | 4,881 |
Other Assets: | ||
Other assets | 6,780 | 5,979 |
Contract asset | 11,807 | 14,560 |
Right-of-use-asset | 6,254 | |
Trademarks and other intangibles, net | 274,084 | 337,700 |
Investments and joint ventures | 44,827 | 89,691 |
Goodwill | 26,099 | 26,099 |
Other Assets, Total | 369,851 | 474,029 |
Total Assets | 506,060 | 633,881 |
Current liabilities: | ||
Accounts payable and accrued expenses | 51,503 | 46,662 |
Deferred revenue | 4,701 | 5,405 |
Current portion of long-term debt | 61,976 | 54,263 |
Other liabilities – current | 13,775 | 9,788 |
Total current liabilities | 131,955 | 116,118 |
Deferred income tax liability | 4,464 | 4,566 |
Long-term debt, less current maturities (includes $47,277 and $48,076 respectively, at fair value) | 583,745 | 620,966 |
Other liabilities | 7,794 | 3,829 |
Total Liabilities | 727,958 | 745,479 |
Redeemable Non-Controlling Interests | 34,461 | 34,137 |
Commitments and contingencies | ||
Stockholders’ Deficit: | ||
Common stock, $.001 par value shares authorized 260,000; shares issued 15,138 and 11,162 respectively | 15 | 11 |
Additional paid-in capital | 1,045,307 | 1,037,372 |
Accumulated losses | (429,117) | (312,796) |
Accumulated other comprehensive loss | (54,643) | (53,068) |
Less: Treasury stock – 3,421 and 3,323 shares at cost, respectively | (844,442) | (844,253) |
Total Iconix Brand Group, Inc. Stockholders’ Deficit | (282,880) | (172,734) |
Non-controlling interests | 26,521 | 26,999 |
Total Stockholders’ Deficit | (256,359) | (145,735) |
Total Liabilities, Redeemable Non-Controlling Interest and Stockholders’ Deficit | $ 506,060 | $ 633,881 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Statement Of Financial Position [Abstract] | ||
Long-term debt, fair value | $ 47,277 | $ 48,076 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 260,000,000 | 260,000,000 |
Common stock, shares issued | 15,138,000 | 11,162,000 |
Treasury stock, shares | 3,421,000 | 3,323,000 |
Consolidated Statement of Opera
Consolidated Statement of Operations - USD ($) shares in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement [Abstract] | ||
Licensing revenue | $ 148,984,000 | $ 187,689,000 |
Type of Revenue [Extensible List] | us-gaap:LicenseMember | us-gaap:LicenseMember |
Selling, general and administrative expenses | $ 83,996,000 | $ 121,429,000 |
Loss on termination of licenses | 10,550,000 | |
Depreciation and amortization | 1,816,000 | 2,329,000 |
Equity (earnings) loss on joint ventures | (14,000) | (3,043,000) |
Gains on sale of trademarks, net | (1,268,000) | |
Asset impairment | 1,766,000 | |
Goodwill impairment | 0 | 37,812,000 |
Trademark impairment | 65,587,000 | 136,417,000 |
Investment impairment | 26,613,000 | 2,500,000 |
Operating income (loss) | (30,780,000) | (119,037,000) |
Other expenses (income): | ||
Interest expense | 57,264,000 | 59,214,000 |
Interest income | (360,000) | (495,000) |
Other (income) loss, net | 5,291,000 | (91,305,000) |
Gain on extinguishment of debt | (4,473,000) | |
Foreign currency translation loss | 858,000 | 1,153,000 |
Other expenses (income) – net | 63,053,000 | (35,906,000) |
Income (loss) before income taxes | (93,833,000) | (83,131,000) |
Provision for income taxes | 8,083,000 | 6,538,000 |
Net loss | (101,916,000) | (89,669,000) |
Less: Net income attributable to non-controlling interest | 9,597,000 | 10,852,000 |
Net loss attributable to Iconix Brand Group, Inc. | $ (111,513,000) | $ (100,521,000) |
Earnings (loss) per share: | ||
Basic | $ (10.56) | $ (14.93) |
Diluted | $ (10.56) | $ (14.93) |
Weighted average number of common shares outstanding: | ||
Basic | 10,559 | 6,734 |
Diluted | 10,559 | 6,734 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net loss | $ (101,916) | $ (89,669) |
Other comprehensive income (loss): | ||
Foreign currency translation (loss) gain | (1,575) | (4,965) |
Total other comprehensive (loss) income | (1,575) | (4,965) |
Comprehensive loss | (103,491) | (94,634) |
Less: comprehensive income (loss) attributable to non-controlling interest | 9,597 | 10,852 |
Comprehensive loss attributable to Iconix Brand Group, Inc. | $ (113,088) | $ (105,486) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Deficit - USD ($) shares in Thousands, $ in Thousands | Total | 5.75% Convertible Notes | 1.50% Convertible Notes | Common Stock | Common Stock5.75% Convertible Notes | Additional Paid-in Capital | Additional Paid-in CapitalHydraulic | Additional Paid-in Capital5.75% Convertible Notes | Additional Paid-in Capital1.50% Convertible Notes | Accumulated Losses | AOCI Attributable to Parent | Treasury Stock | Noncontrolling Interest | Noncontrolling InterestHydraulic |
Beginning Balance at Dec. 31, 2017 | $ (50,976) | $ 9 | $ 1,044,599 | $ (223,718) | $ (51,280) | $ (844,030) | $ 23,444 | |||||||
Beginning Balance (in shares) at Dec. 31, 2017 | 9,016 | |||||||||||||
Shares issued on vesting of restricted stock (in shares) | 110 | |||||||||||||
Compensation benefit in connection with restricted stock and stock options | (2,405) | (2,405) | ||||||||||||
Shares issued on conversion of 5.75% Convertible Notes | $ 13,154 | $ 1 | $ 13,153 | |||||||||||
Shares issued on conversion of 5.75% Convertible Notes (in shares) | 1,411 | |||||||||||||
Shares issued on payment of interest of 5.75% Convertible Notes | $ 3,068 | $ 1 | $ 3,067 | |||||||||||
Shares issued on payment of interest of 5.75% Convertible Notes (in shares) | 625 | |||||||||||||
Write-off of equity component of 1.50% Convertible notes | $ (23,250) | $ (23,250) | ||||||||||||
Cumulative effect of accounting change for adoption | ASC 606 | 17,716 | 16,540 | 1,176 | |||||||||||
Cumulative effect of accounting change for adoption | ASU 2016-01 | (3,177) | 3,177 | ||||||||||||
Payments from non-controlling interest holders, net of imputed interest | 194 | 194 | ||||||||||||
Elimination of non-controlling interest related to the acquisition of additional interest in Hydraulic joint venture | $ 2,097 | $ (2,097) | ||||||||||||
Shares repurchased on vesting of restricted stock | (223) | (223) | ||||||||||||
Tax benefit related to amortization of convertible notes' discount | 159 | 159 | ||||||||||||
Change in redemption value of redeemable non-controlling interest holders | 2,004 | 2,004 | ||||||||||||
Net loss | (89,669) | (100,521) | 10,852 | |||||||||||
Foreign currency translation | (5,013) | (48) | (4,965) | |||||||||||
Distributions to joint venture partners | (10,494) | (3,924) | (6,570) | |||||||||||
Ending Balance at Dec. 31, 2018 | (145,735) | $ 11 | 1,037,372 | (312,796) | (53,068) | (844,253) | 26,999 | |||||||
Ending Balance (in shares) at Dec. 31, 2018 | 11,162 | |||||||||||||
Shares issued on vesting of restricted stock (in shares) | 249 | |||||||||||||
Compensation benefit in connection with restricted stock and stock options | 971 | 971 | ||||||||||||
Shares issued on conversion of 5.75% Convertible Notes | 6,229 | $ 4 | 6,225 | |||||||||||
Shares issued on conversion of 5.75% Convertible Notes (in shares) | 3,727 | |||||||||||||
Re-purchase of Umbro China Equity | (1,265) | (770) | (495) | |||||||||||
Shares repurchased on vesting of restricted stock | (189) | (189) | ||||||||||||
Reclass from redeemable NCI | (856) | (856) | ||||||||||||
Change in redemption value of redeemable non-controlling interest holders | 1,586 | 1,586 | ||||||||||||
Net loss | (102,969) | (111,513) | 8,544 | |||||||||||
Foreign currency translation | (1,652) | (77) | (1,575) | |||||||||||
Distributions to joint venture partners | (12,479) | (4,808) | (7,671) | |||||||||||
Ending Balance at Dec. 31, 2019 | $ (256,359) | $ 15 | $ 1,045,307 | $ (429,117) | $ (54,643) | $ (844,442) | $ 26,521 | |||||||
Ending Balance (in shares) at Dec. 31, 2019 | 15,138 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Deficit (Parenthetical) | Dec. 31, 2019 | Dec. 31, 2018 |
Percentage of conversion of convertible notes | 5.75% | |
5.75% Convertible Notes | ||
Percentage of conversion of convertible notes | 5.75% | 5.75% |
1.50% Convertible Notes | ||
Percentage of conversion of convertible notes | 1.50% |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities: | ||
Net loss | $ (101,916,000) | $ (89,669,000) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation of property and equipment | 1,751,000 | 2,071,000 |
Amortization of trademarks and other intangibles | 65,000 | 258,000 |
Amortization of deferred financing costs | 3,024,000 | 3,133,000 |
Amortization of debt discount | 9,439,000 | 9,833,000 |
Amortization of deferred rent | (238,000) | |
Third party fees associated with the issuance of 5.75% Convertible Notes | 4,958,000 | |
Interest expense on 5.75% Convertible Notes paid in shares | 3,067,000 | |
Stock-based compensation (benefit) expense | 971,000 | (2,405,000) |
Non-cash gain on re-measurement of equity investment | (8,410,000) | |
Provision for doubtful accounts | (1,107,000) | 15,557,000 |
Write-off of contract asset accounts | 5,143,000 | 1,777,000 |
Periodic lease cost | 2,124,000 | |
Losses (Earnings) on equity investments in joint ventures | (14,000) | (3,043,000) |
Distributions from equity investments | 2,681,000 | 3,021,000 |
Asset impairment | 1,766,000 | |
Goodwill impairment | 0 | 37,812,000 |
Trademark impairment | 65,587,000 | 136,417,000 |
Impairment of equity method investment | 26,613,000 | 2,500,000 |
Mark to market adjustment on convertible note | 3,861,000 | (80,979,000) |
loss (gain) on debt to equity conversions | 1,310,000 | (1,165,000) |
Gain on sale of trademarks and other investments | (141,000) | (2,226,000) |
(Gain) on extinguishment of debt | (4,473,000) | |
Loss on other equity investment | 294,000 | 402,000 |
Deferred income tax benefit | (80,000) | (2,004,000) |
Foreign currency translation loss | 858,000 | 1,153,000 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 6,927,000 | 13,103,000 |
Other assets – current | 12,173,000 | 19,144,000 |
Other assets | (1,882,000) | (5,498,000) |
Deferred revenue | 29,000 | (282,000) |
Accounts payable and accrued expenses | (6,845,000) | 204,000 |
Other tax liabilities | (531,000) | |
Other liabilities | (2,319,000) | 454,000 |
Net cash provided by operating activities | 30,312,000 | 56,082,000 |
Cash flows provided by (used in) investing activities: | ||
Purchases of property and equipment | (626,000) | (829,000) |
Proceeds from sale of other investments | 3,695,000 | 958,000 |
Acquisition of trademarks | (3,934,000) | (339,000) |
Net cash provided by (used in) investing activities | 12,068,000 | (5,657,000) |
Cash flows (used in) provided by financing activities: | ||
Proceeds from long-term debt, net of discount and fees | 95,700,000 | |
Proceeds from sale of trademarks and related notes receivables to consolidated joint ventures | 195,000 | |
Payment of long-term debt | (41,171,000) | (157,292,000) |
Prepaid financing costs | (5,423,000) | |
Distributions to non-controlling interests | (12,479,000) | (14,902,000) |
Tax benefit related to amortization of convertible notes' discount | 159,000 | |
Cost of shares repurchased on vesting of restricted stock | (189,000) | (223,000) |
Net cash used in financing activities | (53,839,000) | (81,786,000) |
Effect of exchange rate changes on cash | 235,000 | (697,000) |
Net decrease in cash, cash equivalents, and restricted cash | (11,224,000) | (32,058,000) |
Cash, cash equivalents and restricted cash, beginning of period | 82,635,000 | 114,693,000 |
Cash, cash equivalents, and restricted cash, end of period | 71,411,000 | 82,635,000 |
Cash paid during the period: | ||
Income taxes (net of refunds received) | (8,704,000) | (5,702,000) |
Interest | 45,066,000 | 40,534,000 |
Non-cash additions to operating lease assets | 10,462,000 | |
Non-cash repurchase of China JV equity | 1,265,000 | |
Shares issued upon conversion of debt to equity | 6,225,000 | 13,976,000 |
Iconix Canada | ||
Cash flows provided by (used in) investing activities: | ||
Acquisition of remaining interest in Iconix Canada | (7,053,000) | |
Marcy Media Holdings, LLC | ||
Cash flows provided by (used in) investing activities: | ||
Proceeds from sale of Marcy Media | 15,000,000 | |
Iconix India | ||
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Write-off of receivable due from Iconix India joint venture partner | 1,000,000 | |
Iconix Southeast Asia | ||
Cash flows provided by (used in) investing activities: | ||
Acquisition of trademarks | $ (2,067,000) | (2,120,000) |
Iconix Australia | ||
Cash flows provided by (used in) investing activities: | ||
Acquisition of additional interest | (649,000) | |
Buffalo Brand Joint Venture | ||
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Settlement of note receivable related to formation of Buffalo joint venture | 1,141,000 | |
Cash flows provided by (used in) investing activities: | ||
Proceeds from note receivable from formation of Buffalo joint venture | 1,409,000 | |
Sharper Image | ||
Cash flows provided by (used in) investing activities: | ||
Proceeds from sale of rights | 1,755,000 | |
Badgley Mischka And Sharper Image Trademarks In Certain International Joint Ventures | ||
Cash flows provided by (used in) investing activities: | ||
Acquisition of Badgley Mischka and Sharper Image trademarks in certain international joint ventures | (1,289,000) | |
Badgley Mischka In Certain International Joint Ventures | ||
Cash flows provided by (used in) investing activities: | ||
Proceeds from sale of rights | $ 2,500,000 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) | Dec. 31, 2019 |
Statement Of Cash Flows [Abstract] | |
Percentage of conversion of convertible notes | 5.75% |
The Company
The Company | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
The Company | The Company General Iconix Brand Group is a brand management company and owner of a diversified portfolio of approximately 30 global consumer brands across the Company’s operating segments: women’s, men’s, home and international. The Company’s business strategy is to maximize the value of its brands primarily through strategic licenses and joint venture partnerships around the world, as well as to grow the portfolio of brands through strategic acquisitions. At December 31, 2019, the Company’s brand portfolio includes Candie’s ® ® ® ® ® ® ® ® ® ® ® ® ® ® ® ® ® ® ® ® ® ® ® ® ® ® ® ® ® The Company principally looks to monetize the IP related to its brands throughout the world and in all relevant categories primarily by licensing directly with leading retailers, through consortia of wholesale licensees, through joint ventures in specific territories and through other activity such as corporate sponsorships and content as well as the sale of IP for specific categories or territories. Products bearing the Company’s brands are sold across a variety of distribution channels from the mass tier (e.g. Wal-Mart) to better department stores (e.g. Macy’s). The licensees are generally responsible for designing, manufacturing and distributing the licensed products. The Company supports its brands with advertising and promotional campaigns designed to increase brand awareness. Additionally, the Company provides its licensees with coordinated trend direction to enhance product appeal and help build and maintain brand integrity. Licensees are selected based upon the Company’s belief that such licensees will be able to produce and sell quality products in the categories of their specific expertise and that they are capable of exceeding minimum sales targets and royalties that the Company generally requires for each brand. This licensing strategy is designed to permit the Company to operate its licensing business, leverage its core competencies of marketing and brand management with minimal working capital. The majority of the Company’s licensing agreements include minimum guaranteed royalty revenue, which provides the Company with greater visibility into future cash flows. A key initiative in the Company’s global brand expansion plans has been the formation of international joint ventures. The strategy in forming international joint ventures is to partner with best-in-class, local partners to bring the Company’s brands to market more quickly and efficiently, generating greater short- and long-term value from its IP, than the Company believes is possible if it were to build-out wholly-owned operations ourselves across a multitude of regional or local offices. Since September 2008, the Company has established the following international joint ventures: Iconix China, Iconix Latin America, Iconix Europe, Iconix India, Iconix Canada, Iconix Australia, Iconix Southeast Asia, Iconix Israel, Iconix Middle East, Umbro China, Danskin China, Starter China and Lee Cooper China. Note that the Company now maintains a 100% ownership interest in Iconix China, Umbro China, Iconix Latin America and Iconix Canada. Refer to Note 4 for further details. The Company’s primary goal of maximizing the value of its IP also includes, in certain instances, the sale to third parties of a brand’s trademark in specific territories or categories. As such, the Company evaluates potential offers to acquire some or all of a brand’s IP by comparing whether the offer is more valuable than the Company’s estimate of the current and potential revenue streams to be earned via the Company’s traditional licensing model. Further, as part of the Company’s evaluation process it also considers whether or not the buyer’s future development of the brand may help to expand the brand’s overall recognition and global revenue potential. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 1. Summary of Significant Accounting Policies Principles of Consolidation The consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries, and, in accordance with U.S. GAAP and accounting for variable interest entities (where the Company is the primary beneficiary) and majority owned subsidiaries, the Company consolidates fourteen joint ventures (Hardy Way, Icon Modern Amusement, Alberta ULC, Iconix Europe, Hydraulic IP Holdings, US PONY Holdings, Diamond Icon, Iconix Israel, Iconix Middle East, Umbro China, Danskin China, Starter China, Lee Cooper China and Iconix Australia; see Note 4 for explanation). All significant intercompany transactions and balances have been eliminated in consolidation. These consolidated financial statements are prepared on a going concern basis that contemplates the realization of cash flows from assets and discharge of liabilities, in each case, in the ordinary course of business consistent with the Company’s prior periods. In accordance with Accounting Standards Codification (“ASC”) 810—Consolidation (“ASC 810”), the Company evaluates the following criteria to determine the accounting for its joint ventures: 1) consideration of whether the joint venture is a variable interest entity which includes reviewing the corporate structure of the joint venture, the voting rights, and the contributions of the Company and the joint venture partner to the joint venture, 2) if the joint venture is a VIE, whether or not the Company is the primary beneficiary, a determination based upon a variety of factors, including: i) the presence of installment payments, which constitutes a de facto agency relationship between the Company and the joint venture partner, and ii) an evaluation of whether the Company or the joint venture partner is more closely associated with the joint venture. If the Company determines that the entity is a variable interest entity and the Company is the primary beneficiary, then the joint venture is consolidated. For those entities that are not considered variable interest entities, or are considered variable interest entities but the Company is not the primary beneficiary, the Company uses the equity method as set forth in ASC 323—Investments (“ASC 323”), to account for those investments and joint ventures which are not required to be consolidated under US GAAP. Refer to Note 4 for further details. Liquidity These consolidated financial statements are prepared on a going concern basis, which contemplates the realization of assets and liquidation of liabilities, in each case, in the ordinary course of business consistent with the Company’s prior periods. The Company has experienced substantial and recurring losses from operations, which losses have caused an accumulated deficit of $429.1 million as of December 31, 2019. Net losses incurred for the years ended December 31, 2019 and 2018 amounted to approximately $(101.9) million and $(89.7) million, respectively. While the Company had positive cash flows from operations in recent periods, the potential adverse impact of the novel coronavirus on its operating results, liquidity and financial condition raises substantial doubt the Company can continue as an ongoing business for the next twelve months. In view of these matters, continuation as a going concern is dependent upon the continued operations of the Company, which, in turn, is dependent upon the Company’s ability to meet its financial requirements, raise additional capital, and successfully carry out its future operations. The financial statements do not include any adjustments to the amount and classification of assets and liabilities that may be necessary, should the Company not continue as a going concern. Reverse Stock Split On March 14, 2019, the Company effected a 1-for-10 reverse stock split (the “Reverse Stock Split”) of its common stock. Unless the context otherwise requires, all share and per share amounts in this annual report on Form 10-K have been adjusted to reflect the Reverse Stock Split. Business Combinations, Joint Ventures and Investments The purchase method of accounting requires that the total purchase price of an acquisition be allocated to the assets acquired and liabilities assumed based on their fair values on the date of the business acquisition. The results of operations from the acquired businesses are included in the accompanying consolidated statements of operations from the acquisition date. Any excess of the purchase price over the estimated fair values of the net assets acquired is recorded as goodwill. Since January 1, 2018, the Company established the following joint ventures to develop and market the Company’s brands in specific markets: Date Created Investment / Joint Venture Iconix’s Investment March 2018 Starter China 100% (1) June 2018 Lee Cooper China 100% (2) (1) In March 2018, the Company formed the Starter China Limited as a wholly owned subsidiary to hold the Starter trademarks and related assets in respect of the Greater China territory. The Company entered into an agreement with Photosynthesis Holdings, Co. Ltd. (“PHL”) who will purchase no less than a 50% interest and up to a total of 60% interest in Starter China Limited. The purchase of the equity interest is expected to occur over a three-year period commencing on January 16, 2022. Refer to Note 4 for further details. As of December 31, 2019, the Company’s ownership interest in Starter China Limited was 100%. (2) In June 2018, the Company formed the Lee Cooper China Limited as a wholly-owned subsidiary to hold the Lee Cooper trademarks and related assets in respect of the Greater China territory. The Company entered into an agreement with POS Lee Cooper HK Co. Ltd. (“PLC”) who will purchase no less than a 50% interest and up to a total of 60% interest in Lee Cooper China Limited. The purchase of the equity interest is expected to occur over a two-year period commencing on January 15, 2024. Refer to Note 4 for further details. As of December 31, 2019, the Company’s ownership interest in Lee Cooper China Limited was 100%. For further information on the Company’s accounting for joint ventures and investments, see Note 4. Use of Estimates The preparation of the consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company reviews all significant estimates affecting the financial statements on a recurring basis and records the effect of any adjustments when necessary. Cash and Cash Equivalents Cash and cash equivalents consist of actual cash as well as cash equivalents, defined as short-term, highly liquid financial instruments with insignificant interest rate risk that are readily convertible to cash and have maturities of three months or less from the date of purchase. In addition, as of December 31, 2019, approximately $19.0 million, or 27 %, of our total cash (including restricted cash) was held in foreign subsidiaries. During the second fiscal quarter of 2018, the Company elected to treat its Luxembourg top tier subsidiary (“Luxco”) as a disregarded entity for US tax purposes. All the operations under Luxco were previously treated as disregarded for US tax purposes. As of the election date, all the foreign operations under Luxco will be treated as a branch for US tax purposes and subject to US taxation. As such, the Company will no longer have any earnings in foreign subsidiaries that are not currently subject to taxation for US purposes. Before the election, the Company indefinitely reinvested all earnings of its foreign subsidiaries. Restricted Cash Restricted cash consists of actual cash deposits held in accounts primarily for debt service, as well as cash equivalents, defined as short-term, highly liquid financial instruments with insignificant interest rate risk that are readily convertible to cash and have maturities of three months or less from the date of purchase, the restrictions on all of which lapse every three months or less. Concentration of Credit Risk Financial instruments which potentially subject the Company to concentration of credit risk consist principally of short-term cash investments and accounts receivable. The Company places its cash in investment-grade, short-term instruments with high quality financial institutions. The Company performs ongoing credit evaluations of its customers’ financial condition and, generally, requires no collateral from its customers. The allowance for non-collection of accounts receivable is based upon the expected collectability of all accounts receivable. Two customers each accounted for 12 % and 11% respectively of the Company’s total revenue for the year ended December 31, 2019 (“FY 2019”) as compared to one customer accounting for 16% of the Company’s total revenue for the year ended December 31, 2018 (“FY 2018”). Accounts Receivable Accounts receivable are reported at amounts the Company expects to be collected, net of provision for doubtful accounts, based on the Company’s ongoing discussions with its licensees, and its evaluation of each licensee’s payment history and account aging. As of December 31, 2019 and 2018, the Company’s provision for doubtful accounts was $14.3 million and $20.1 million, respectively. One customer accounted for 16% of the Company’s accounts receivable as of December 31, 2019 as compared with one customer accounting for 12% of the Company’s accounts receivable as of December 31, 2018. Derivatives The Company’s objective for holding any derivative financial instruments is to manage interest rate risks, and in the case of our 1.50% Convertible Notes, dilution risk. The Company does not use financial instruments for trading or other speculative purposes. From time to time the Company uses derivative financial instruments to hedge the variability of anticipated cash flows of a forecasted transaction (a “cash flow hedge”). The Company had no such derivative instruments in FY 2019 or FY 2018. Restricted Stock Compensation cost for restricted stock is measured using the quoted market price of the Company’s common stock at the date the common stock is granted. For restricted stock where restrictions lapse with the passage of time (“time-based restricted stock”), compensation cost is recognized over the period between the issue date and the date that restrictions lapse. Time-based restricted stock is included in total common shares outstanding upon the lapse of any restrictions. Time-based restricted stock is included in total diluted shares outstanding which is calculated utilizing the treasury stock method. For restricted stock where restrictions are based on performance measures (“performance-based restricted stock”), restrictions lapse when those performance measures have been deemed earned. Performance-based restricted stock is included in total common shares outstanding upon the lapse of any restrictions. Performance-based restricted stock is included in total diluted shares outstanding when the performance measures have been deemed earned but not issued. For restricted stock, which is measured based on market conditions, the Company values the stock utilizing a Monte Carlo simulation factoring key assumptions such as the stock price at the beginning and end of the period, risk free interest rate, expected dividend yield when simulating total shareholder return, expected dividend yield when simulating the Company’s stock price, stock price volatility and correlation coefficients. Restricted stock based on market conditions is included in total common shares outstanding upon the achievement of the performance metrics. Restricted stock based on market conditions is included in total diluted shares outstanding when the performance metrics have been deemed earned but not issued. Treasury Stock Treasury stock is recorded at acquisition cost. Gains and losses on disposition are recorded as increases or decreases to additional paid-in capital with losses in excess of previously recorded gains charged directly to retained earnings. Deferred Financing Costs The Company incurred costs (primarily professional fees and placement agent fees) in connection with borrowings under senior secured notes, the Senior Secured Term Loan and the 2016 Senior Secured Term Loan. These costs have been deferred and are being amortized using the effective interest method over the life of the related debt. Property, Equipment, Depreciation and Amortization Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are determined by the straight-line method over the estimated useful lives of the respective assets ranging from three to seven years. Leasehold improvements are amortized by the straight-line method over the initial term of the related lease or estimated useful life, whichever is less. Operating Leases We determine if an arrangement contains a lease at inception. An arrangement contains a lease if it implicitly or explicitly identifies an asset to be used and conveys the right to control the use of the identified asset in exchange for consideration. As a lessee, we include operating leases in Right-of-use (“ROU”) -assets within non-current assets, Other liabilities – Current, and Other liabilities in our consolidated balance sheet. ROU 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. Operating lease ROU assets and liabilities are recognized upon commencement of the lease based on the present value of the lease payments over the lease term. As most of our leases do not provide an implicit interest rate, we generally use our incremental borrowing rate based on the estimated rate of interest for fully amortizing borrowings over a similar term of the lease payments at commencement date to determine the present value of lease payments. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Expenses associated with operating leases are included in “Selling, general and administrative” within our Consolidated Statement of operations. Leases with a lease term of 12 months or less are not capitalized Long-Lived Assets If circumstances mandate, the Company evaluates the recoverability of its long-lived assets, other than goodwill and other indefinite life intangibles (discussed below), by comparing estimated future undiscounted cash flows with the assets’ carrying value to determine whether a write-down to market value, based on discounted cash flow, is necessary. Assumptions used in our fair value estimates are as follow: (i) discount rates; (ii) royalty rates; (iii) projected average revenue growth rates; and (iv) projected long-term growth rates. The testing also factors in economic conditions and expectations of management and may change in the future based on period-specific facts and circumstances. During FY 2019, the Company recorded an impairment charge in the amount of $17.0 million based on the estimated value that would be realized on the disposition of the Company’s equity interest in Marcy Media Holdings, LLC, and an $9.6 million (inclusive of $2.6 million of write off of advances made to the entity) impairment to its investment in MG Icon based on the poor performance. In Goodwill and Trademarks Goodwill represents the excess of purchase price over the fair value of net assets acquired in business combinations accounted for under the purchase method of accounting. On an annual basis and as needed, the Company tests goodwill and indefinite life trademarks for impairment utilizing discounted cash flow models. Other intangibles with determinable lives, including certain trademarks, license agreements and non-compete agreements, are evaluated for the possibility of impairment when certain indicators are present, and are otherwise amortized on a straight-line basis over the estimated useful lives of the assets (currently ranging from 1 to 15 years). Assumptions used in our fair value estimates are as follow: (i) discount rates; (ii) royalty rates; (iii) projected average revenue growth rates; and (iv) projected long-term growth rates. The testing also factors in economic conditions and expectations of management and may change in the future based on period-specific facts and circumstances. In the second quarter of 2018, the Company recognized a non-cash impairment charge for goodwill of $37.8 million and none for FY 2019. In the FY 2019 and FY 2018, the Company recognized non-cash impairment charge for trademarks of $65.6 million and $136.4 million, respectively. Refer to Note 3 for further details. Non-controlling Interests / Redeemable Non-controlling Interests Certain of the Company’s consolidated joint ventures have put options which, if exercised by the Company’s joint venture partner, would require the Company to purchase all or a portion of the joint venture partner’s equity interest in the joint venture. The Company has determined that these put options are not derivatives under the guidelines prescribed in Accounting Standards Codification (“ASC”) 815. As such, and in accordance with ASC 480-10-S99, as the potential exercise of the put options is outside the control of the Company, the Company has recorded the portion of the non-controlling interest’s equity that may be put to the Company in mezzanine equity in the Company’s consolidated balance sheets as “redeemable non-controlling interest”. The initial value of the redeemable non-controlling interest represents the fair value of the put option at inception. This amount recorded at inception is accreted, over a period determined by when the put option becomes exercisable, to what the Company would be obligated to pay to the non-controlling interest holder if the put option was exercised. This accretion is recorded as a credit to redeemable non-controlling interest and a debit to retained earnings resulting in an impact to the consolidated balance sheet only. For each reporting period, the Company revisits the estimates used to determine the redemption value of the put option when it becomes exercisable and may adjust the remaining put option value and associated accretion accordingly through redeemable non-controlling interest and retained earnings, as necessary. The terms of each of the outstanding put options are included in the individual discussions of each joint venture, as applicable. For the Company’s consolidated joint ventures that do not have put options, the non-controlling interest is recorded within equity on the Company’s consolidated balance sheet. The Company may enter into joint venture agreements with joint venture partners in which the Company allows the joint venture partner to pay a portion of the purchase price in cash at the time of the formation of the joint venture with the remaining cash consideration paid over a specified period of time following the closing of such transaction. The Company records the amounts due from such joint venture partners as (a) a reduction of Non-controlling Interests, net of installment payments, or (b) if installment payments result from the issuance of shares classified as mezzanine equity, as a reduction in Redeemable Non-controlling Interests, net of installment payments (i.e. mezzanine equity), as applicable, in the Company’s consolidated balance sheet in accordance with ASC 505-10-45, “Classification of a Receivable from a Shareholder.” The Company accretes the present value discount on these installment payments through interest income on its consolidated statements of operations. Revenue Recognition The Company enters into various license agreements that provide revenues based on minimum royalties and advertising/ marketing fees and additional revenues based on a percentage of defined sales. Minimum royalty and advertising/ marketing revenue is recognized on a straight-line basis over the full contract term. Minimum royalties that escalate on an annual basis over the contract term are recognized on a straight-line basis over the full contract term. Royalties exceeding the defined minimum amounts in a specific contract year (sales-based royalties), as defined in each license agreement, are recognized only in the subsequent periods to when the minimum guarantee for the contract year has been achieved and when the later of the following events occur: (i) the subsequent sale occurs, or (ii) the performance obligation to which some or all of the sales-based royalty has been allocated has been satisfied (or partially satisfied). Foreign Currency The Company’s consolidated joint ventures’ functional currency is U.S. dollars. The functional currencies of the Company’s international subsidiaries are the local currencies of the countries in which the subsidiaries are located. Foreign currency denominated assets and liabilities are translated into U.S. dollars using the exchange rates in effect at the consolidated balance sheet date. Results of operations and cash flows are translated using the average exchange rates throughout the period. The effect of exchange rate fluctuations on translation of assets and liabilities is included as a component of shareholders’ equity in accumulated other comprehensive income (loss). Taxes on Income The Company uses the asset and liability approach of accounting for income taxes and provides deferred income taxes for temporary differences that will result in taxable or deductible amounts in future years based on the reporting of certain costs in different periods for financial statement and income tax purposes. Valuation allowances are recorded when uncertainty regarding their realizability exists. Earnings (Loss) Per Share Basic earnings (loss) per share includes no dilution and is computed by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflect, in periods in which they have a dilutive effect, the effect of common shares issuable upon exercise of stock options, vesting of restricted stock, and potential conversion of our convertible debt. The difference between reported basic and diluted weighted-average common shares results from the assumption that all dilutive stock options, convertible debt and restricted stock outstanding were exercised into common stock. We may be required to calculate basic earnings (loss) per share using the two-class method as a result of the Company’s redeemable non-controlling interests. To the extent that the redemption value increases and exceeds the then-current fair value of a redeemable non-controlling interest, net (loss) income attributable to Iconix Brand Group, Inc. (used to calculate earnings (loss) per share) could be negatively impacted by that increase, subject to certain limitations. The partial or full recovery of any reductions to net (loss) attributable to Iconix Brand Group, Inc. (used to calculate earnings (loss) per share) is limited to any cumulative prior-period reductions. Refer to Note 10 for further details. Advertising Campaign Costs Advertising costs such as print and online media are expensed when the advertisement first occurs. Advertising expenses for FY 2019 and FY 2018 amounted to $13.7 million, and $25.7 million, respectively. The Company also incurs co-operative advertising costs that represent reimbursements to certain licensees for shared marketing expenses related to the sale of its products. In accordance with ASC 606, these reimbursements are recorded as a reduction to licensing revenue. Comprehensive Income (Loss) Comprehensive income (loss) includes certain gains and losses that, under U.S. GAAP, are excluded from net income (loss) as such amounts are recorded directly as an adjustment to stockholders’ equity. The Company’s comprehensive income (loss) is primarily comprised of net income (loss), and foreign currency translation and changes in fair value of available for sale securities (prior to the Company’s adoption of ASU 2016-01 in FY 2018). New Accounting Standards In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). The new standard establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. Additionally, FASB issued ASU No. 2018-11, Leases (Topic 842): Targeted Improvements, which allows companies to adopt Topic 842 without revising comparative period reporting or disclosures. ASU 2016-02 and ASU 2018-11 are effective for the Company and the Company adopted the new standard on January 1, 2019. The Company adopted ASU 2016-02 using the optional transition approach as of the effective date. As a result, the Company was not required to adjust its comparative period financial information for effects of the standard or make the new required lease disclosures for periods before the date of adoption (i.e. January 1, 2019). The Company has elected to adopt the package of transition practical expedients and therefore, has not reassessed (1) whether existing or expired contracts contain a lease, (2) lease classification of existing or expired leases or (3) the accounting for initial direct costs that were previously capitalized. The Company did not elect the practical expedient to use hindsight for leases existing at the adoption date. The adoption of ASU 2016-02 had a material impact to the Company’s consolidated balance sheet but did not materially impact the consolidated statement of operations. The most significant changes to the consolidated balance sheet relate to the recognition of new ROU assets and lease liabilities for operating leases. The adoption of ASU 2016-02 also had no material impact on operating, investing or financing cash flows in the consolidated statement of cash flows. Refer to Note 13 for further details. As a result of adopting ASU 2016-02, the Company recognized operating lease liabilities of $10.4 million (of which $1.7 million was current and $8.7 million was noncurrent) with corresponding ROU assets of $8.0 million as of January 1, 2019. In February 2017, the FASB issued ASU 2017-04, “Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment”, which simplifies the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test and eliminated the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment. The ASU is effective for public business entities for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. This ASU should be applied prospectively. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company adopted the new standard on January 1, 2020. The new standard will not have a material impact to the Company’s financial statements. Presentation of FY 2018 Data Certain reclassifications, which were immaterial, have been made to conform prior year data to the current presentation. During FY 2019, the Company also made a reclassification between redeemable noncontrolling interest and noncontrolling interest. During FY 2019, the Company determined that the impact of the accretion of redeemable noncontrolling interest to the Company’s earnings per share calculation had been incorrectly recorded in the Company’s consolidated statement of operations for FY 2018. Basic and diluted earnings per share for FY 2018 have been corrected in this Form 10-K. Management evaluated the materiality of this error from a quantitative and qualitative perspective and concluded that the adjustments to earnings per share were not material to the Company’s presentation and disclosures, and had no material impact on the Company’s financial position, results of operations and cash flows. Accordingly, no amendments to previously filed reports are deemed necessary. After taking into effect this adjustment for the year ended December 31, 2018, basic earnings and diluted loss per share is $14.93 and was previously presented as a basic and diluted loss per share of $15.73. Previously presented Year Ended Year Ended December 31, 2018 December 31, 2018 For earnings (loss) per share - basic: Net loss attributable to Iconix Brand Group, Inc. $ (100,521 ) $ (100,521 ) Accretion of redeemable non-controlling interest (5,432 ) — Net income (loss) attributable to Iconix Brand Group, Inc. after accretion of redeemable non- controlling interest for basic earnings (loss) per share $ (105,953 ) $ (100,521 ) For earnings (loss) per share - diluted: Net loss attributable to Iconix Brand Group, Inc. $ (100,521 ) $ (100,521 ) Effect of potential conversion of 5.75% Convertible Notes (1) — — Accretion of redeemable non-controlling interest (5,432 ) — Net loss attributable to Iconix Brand Group, Inc. after the effect of potential conversion of 5.75% Convertible Notes for diluted earnings (loss) per share $ (105,953 ) $ (100,521 ) Earnings (loss) per share: Basic $ (15.73 ) $ (14.93 ) Diluted $ (15.73 ) $ (14.93 ) Weighted average number of common shares outstanding: Basic 6,734 6,734 Diluted 6,734 6,734 |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Revenue Recognition | 2. Revenue Recognition Adoption of ASC Topic 606, “Revenue from Contracts with Customers” On January 1, 2018, we adopted ASC Topic 606 – Revenue from Contracts with Customers We recorded a net increase to opening retained earnings and the corresponding amount to non-controlling interest of $16.5 million and $1.2 million, respectively, net of tax, as of January 1, 2018 due to the cumulative impact of adopting Topic 606, with the impact primarily related to our revenues associated with license agreements that have escalating guaranteed minimum royalties in the contract years of the license agreement term. The impact to revenues was an increase of approximately $3.9 million for FY 2018 as a result of applying Topic 606. Revenue Recognition Licensing Revenue The Company licenses its brands across a broad range of product categories, including fashion apparel, footwear, accessories, sportswear, home furnishings and décor, and beauty and fragrance. The Company seeks licensees with the ability to produce and sell quality products in their licensed categories and to meet and exceed minimum sales and royalty payment thresholds. The Company maintains direct-to-retail and traditional wholesale licenses. Typically, in a direct-to-retail license, the Company grants exclusive rights to one of its brands to a national retailer for a broad range of product categories. Direct-to-retail licenses provide retailers with proprietary rights to national brands at favorable economics. In a traditional wholesale license, the Company grants the right to a specific brand to a single or small group of related product categories to a wholesale supplier, who is permitted to sell licensed products to multiple retailers within an approved distribution channel. The Company’s license agreements typically require the licensee to pay the Company royalties based upon net sales with guaranteed minimum royalties. The Company’s licenses also typically require the licensees to pay to the Company certain minimum amounts for the advertising and marketing of the respective licensed brands. Licensing revenue is comprised of revenue related to the Company’s entry into various trade name license agreements that provide revenues based on minimum royalties and advertising/marketing fees and additional revenues based on a percentage of defined sales. Minimum royalty amounts are recognized as revenue on a straight-line basis over the full contract term. Minimum royalties that escalate on an annual basis over the contract term are recognized on a straight-line basis over the full contract term. Royalties exceeding the defined minimum amounts in a specific contract year (sales-based royalties), as defined in each license agreement, are recognized only in the subsequent periods to when the minimum guarantee for the contract year has been achieved and when the later of the following events occur: (i) the subsequent sale occurs, or (ii) the performance obligation to which some or all of the sales-based royalty has been allocated has been satisfied (or partially satisfied). Within the Company’s International segment, the Umbro business purchases replica soccer jerseys for resale to certain licensees. The Company generally does this as an accommodation to its licensees to consolidate ordering from the manufacturers. The revenue associated with such activity is included in licensing revenue and was approximately $0.9 million for FY 2019 and the associated cost of goods sold is included in selling general and administrative expenses and was approximately $0.8 million for FY 2019. There was approximately $2.9 million and $2.8 million, respectively, of such sales and corresponding cost of goods sold in FY 2018. Revenue for these sales are recognized upon the transfer of control of the promised product to the customer or licensee in an amount that reflects the consideration that we expect to receive in exchange for these products. The following table presents our revenues disaggregated by license type: Year Ended December 31, 2019 2018 Licensing revenue by license type: Direct-to-retail license $ 42,818 $ 71,609 Wholesale licenses 105,059 112,769 Other licenses (1) 1,107 3,311 $ 148,984 $ 187,689 (1) Included in Other licenses for FY 2019 is $0.9 million of revenue associated with the Umbro business purchases discussed above as compared to $2.9 million for FY 2018. The following table represents our revenues disaggregated by geography: Year Ended December 31, 2019 2018 Total licensing revenue by geographic region: United States $ 88,444 $ 120,397 Other (1) 60,540 67,292 $ 148,984 $ 187,689 (1) No single country represented 10% of the Company’s revenues in the periods presented. Remaining Performance Obligation We enter into long-term license agreements with our licensees across all operating segments. Revenues are recognized on a straight-line basis consistent with the nature, timing and extent of our services, which primarily relate to the ongoing brand management and maintenance of the intellectual property. As of January 1, 2020, the Company and its joint ventures had a contractual right to receive approximately $400 million of aggregate minimum licensing revenue through the balance of their current licenses, excluding any renewals. Pursuant to these agreements, the Company expects to recognized revenue as follows: $87.7 million, $69.8 million, $58.8 million, $50.4 million, $36.6 million and $96.7 million for FY 2020, FY 2021, FY 2022, FY 2023, FY 2024 and thereafter, respectively. Contract Balances Timing of revenue recognition may differ from the timing of invoicing to licensees. We record a receivable when amounts are contractually due or when revenue is recognized prior to invoicing. Deferred revenue is recorded when amounts are contractually due prior to satisfying the performance obligations of the contracts. For multi-year license agreements, as the performance obligation is providing the licensee with the right of access to the Company’s intellectual property for the contractual term, the Company uses a time-lapse measure of progress and straight lines the guaranteed minimum royalties over the contract term. Contract Asset We record contract assets when revenue is recognized in advance of cash payment being due from our licensees. Contract assets due within one year of the most recent balance sheet date are recorded within Other assets – current and long-term contract assets are recorded within Other assets on the Company’s consolidated balance sheet. As of December 31, 2019 and December 31, 2018, our contract assets – current and long-term contract assets were $9.4 million and $11.8 million, and $4.8 million and $14.6 million respectively. For the year ended December 31, 2019 and December 31, 2018, the Company incurred an impairment loss of its contract assets of $5.1 million and $1.8 million, respectively, as a result of impairments or certain contract modifications. Deferred Revenue We record deferred revenue when cash payment is received or due in advance of our performance, including amounts which are refundable. Advanced royalty payments are recognized ratably over the period indicated by the terms of the license and are reflected in the Company’s consolidated balance sheet in deferred revenue at the time the payment is received. The decrease in deferred revenues for FY 2019 is inclusive of $4.2 million of revenues recognized that were included in the deferred revenue balance at the beginning of the period offset by cash payments received or due in advance of satisfying our performance obligations. |
Goodwill and Trademarks and Oth
Goodwill and Trademarks and Other Intangibles, net | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Trademarks and Other Intangibles, net | 3. Goodwill and Trademarks and Other Intangibles, net Goodwill Goodwill by reportable operating segment and in total, and changes in the carrying amounts, as of the dates indicated are as follows: Women's Men's Home International Consolidated Net goodwill at January 1, 2018 $ 37,812 $ — $ — $ 26,070 $ 63,882 Acquisition of 5% interest in Iconix Australia — — — 29 29 Impairment (37,812 ) — — (37,812 ) Net goodwill at December 31, 2018 $ $ — $ — $ 26,099 $ 26,099 Impairment — — — — — Net goodwill at December 31, 2019 $ — $ — $ — $ 26,099 $ 26,099 In July 2018, the Company purchased an additional 5% ownership interest in Iconix Australia from its joint venture partner. As a result of this transaction, the Company consolidated the entity in its financial statements and recorded goodwill of less than $0.1 million. Refer to Note 4 for further details. The Company identifies its operating segments according to how business activities are managed and evaluated. The Company has four distinct reportable operating segments: men’s, women’s, home, and international. These operating segments represent individual reporting units for purposes of evaluating goodwill for impairment. The fair value of the reporting unit is determined using discounted cash flow analysis and estimates of sales proceeds with consideration of market participant data. As a corroborative source of information, the Company evaluates the estimated aggregate fair values of its reporting units to within a reasonable range of its market capitalization, which includes an assumed control premium (an adjustment reflecting an estimated fair value on a control basis) to verify the reasonableness of the fair value of its reporting units. The control premium is estimated based upon control premiums observed in comparable market transactions. As none of the Company’s reporting units are publicly traded, individual reporting unit fair value determinations do not directly correlate to the Company’s stock price. The Company monitors changes in the share price to ensure that the market capitalization continues to exceed or is not significantly below the carrying value of our total net assets. In the event that our market capitalization is below the book value of the Company’s aggregate fair value of its reporting units, we consider the length and severity of the decline and the reason for the decline when evaluating whether potential goodwill impairment exists. Additionally, if a reporting unit does not appear to be achieving the projected growth plan used in determining its fair value, we will reevaluate the reporting unit for potential goodwill impairment based on revised projections, as deemed appropriate. The annual evaluation of goodwill is typically performed as of October 1, the beginning of the Company’s fourth fiscal quarter. Utilizing the Income Approach, the Company performed a two-step goodwill impairment test and an intangible asset impairment test using a discounted cash flow analysis to evaluate whether the carrying value of each of its segments exceeded its fair value. During the fourth quarter of FY 2019, the Company evaluated its goodwill for potential impairment. Based upon the results of step 1 of the goodwill impairment test in accordance with ASC 350, the Company noted that the fair value of the international segment exceeded the carrying value, therefore no impairment was recorded. During the fourth quarter of FY 2018, the Company evaluated its goodwill for potential impairment incremental to the amount recorded as of September 30, 2018. Based upon the results of step 1 of the goodwill impairment test in accordance with ASC 350, the Company noted that the fair value of the international segment exceeded the carrying value after first reflecting the impairment of trademarks. As a result, no additional goodwill impairment was recorded during the fourth quarter of FY 2018. During the second quarter of 2018, based upon the results of step 1 of the goodwill impairment test in accordance with ASC 350 for the women’s segment, the Company noted that the carrying value of the women’s segment exceeded its fair value after first reflecting the impairment of the Mossimo trademark, as discussed below. In accordance with step 2 of the goodwill impairment test, the Company recorded a non-cash impairment charge of $37.8 million in the second quarter of 2018, which is due to the projected decline in royalties associated with the license agreements for the Mossimo brand. Trademarks and Other Intangibles, net Trademarks and other intangibles, net consist of the following: December 31, 2019 December 31, 2018 Estimated Lives in Years Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Indefinite-lived trademarks and copyrights Indefinite $ 274,080 $ — $ 337,631 $ — Definite-lived trademarks 10-15 8,958 8,958 8,958 8,958 Licensing contracts 1-9 978 974 978 909 $ 284,016 $ 9,932 $ 347,567 $ 9,867 Trademarks and other intangibles, net $ 274,084 $ 337,700 The trademarks of Candie’s, Bongo, Joe Boxer, Rampage, Mudd, London Fog, Mossimo, Ocean Pacific, Danskin, Rocawear, Cannon, Royal Velvet, Fieldcrest, Charisma, Starter, Waverly, Ecko, Zoo York, Ed Hardy, Umbro, Modern Amusement, Buffalo, Lee Cooper, Hydraulic, and Pony have been determined to have an indefinite useful life and accordingly, consistent with ASC Topic 350, no amortization has been recorded in the Company’s consolidated statements of operations. Instead, each of these intangible assets are tested for impairment annually and as needed on an individual brand and territorial basis as separate single units of accounting, with any related impairment charge recorded to the statement of operations at the time of determining such impairment. The annual evaluation of the Company’s indefinite-lived trademarks is typically performed as of October 1, the beginning of the Company’s fourth fiscal quarter, or as deemed necessary due to the identification of a triggering event. As it relates to the Company’s impairment testing of goodwill and intangible assets, assumptions and inputs used in our fair value estimates include the following: (i) discount rates; (ii) royalty rates; (iii) projected average revenue growth rates; and (iv) projected long-term growth rates. Additionally, for those instances where core licenses have not been or will not be renewed and replacement licenses have not yet been identified, the Company’s estimate of fair value may incorporate a probability weighted average of projected cash flows based on several scenarios (e.g. DTR license, wholesale license, or direct-to-consumer model). Key inputs to these scenarios, which were selected based on the perspective of a market participant and include estimated future retail and wholesale sales and related royalties, are assessed a probability of occurrence to compensate for the uncertainty of success and timing of completion. The Company will continue to reassess these probabilities and inputs, as well as economic conditions and expectations of management, and may record additional impairment charges as these estimates are updated, all of which are subject to change in the future based on period-specific facts and circumstances. The Company recorded impairment charges for indefinite-lived intangible assets consisting of trademarks in FY 2019. The primary driver of the impairment charges was a decline in the net sales, as well as a decline in future guaranteed minimum royalties from license agreements for certain brands. As a result, in the fourth quarter of FY 2019, the Company recorded a total non-cash asset impairment charge of $65.6 million, which is comprised of $35.3 million in the women’s segment, $0.8 million in the men’s segment, $17.8 million in the home segment, and $11.7 million in the international segment to reduce various trademarks in those segments to fair value. Impairments primarily relate to declines in the Joe Boxer, Mudd, OP, Mossimo, Bongo, Rampage, Umbro, Fieldcrest and Royal Velvet brands. The Company recorded impairment charges for indefinite-lived intangible assets consisting of trademarks in the fourth quarter of FY 2018 based on a decline in the net sales as well as a decline in future guaranteed minimum royalties from license agreements for certain brands. As a result, in the fourth quarter of FY 2018, the Company recorded a total non-cash asset impairment charge of $58.7 million which is comprised of $55.1 million in the women’s segment, $0.1 million in the men’s segment, $2.7 million in the home segment, and $0.8 million in the international segment to reduce various trademarks in those segments to fair value. Given Kmart/Sears bankruptcy filing on October 15, 2018, the Company conducted an indefinite-lived intangible asset impairment test in accordance with ASC 350 for the Joe Boxer, Cannon and Bongo trademarks whose future revenues and earnings were either exclusively or heavily dependent on the existing license agreements with Sears. As part of its indefinite-lived intangible asset impairment test for the Joe Boxer, Cannon and Bongo trademarks, the Company recorded a non-cash impairment charge of $4.4 million in the third quarter of FY 2018 to reduce the Joe Boxer trademark to fair value. At that time, the fair value of the Bongo and Cannon trademarks remained above their current book value and thus no impairment charge was recorded. During the fourth quarter of 2018, the Company recognized an additional non-cash impairment charges of $6.8 million related to the Joe Boxer trademark (in the women’s segment) and $2.7 million related to the Cannon trademark (in the home segment), which are included in the total $58.7 million non-cash impairment charge discussed above. As of June 30, 2018, the Company revised its forecasted future earnings for the Mossimo brand given the Company was unsuccessful in finding a replacement core licensee. As a result, the Company conducted an indefinite-lived intangible asset impairment test in accordance with ASC 350. Consequently, the Company recorded a non-cash impairment charge of $73.3 million in the second quarter of FY 2018 in the women segment to reduce the Mossimo trademark to fair value. During the fourth quarter of 2018, the Company recognized an additional non-cash impairment charge of $32.7 million (in the women’s segment), which is included in the total $58.7 million non-cash impairment charge discussed above. The Company measured its indefinite-lived intangible assets for impairment in accordance with ASC-820-10-55-3F which states, “The income approach converts future amounts (for example cash flows) in income and expenses in a single current (that is, discounted) amount. When the income approach is used, fair value measurement reflects current market expectations about those future amounts. The Income Approach is based on the present value of future earnings expected to be generated by a business or asset. Income projections for a future period are discounted at a rate commensurate with the degree of risk associated with future proceeds. A residual or terminal value is also added to the present value of the income to quantify the value of the business beyond the projection period.” Changes in estimates and assumptions used to determine whether impairment exists or changes in actual results compared to expected results could result in additional impairment charges in future periods. In accordance with ASC 360, there were no impairment charges to the Company’s definite-lived trademarks during FY 2019 or FY 2018. During FY 2018, the Company completed the sale of the Badgley Mischka and Sharper Image intellectual property and related assets from the Iconix Southeast Asia, Iconix MENA, Iconix Europe and Iconix Australia joint ventures. Refer to Note 5 for further details. During FY 2018, the Company purchased an additional 5% ownership interest in Iconix Australia, which resulted in the Company consolidating the entity on its consolidated balance sheet and the statement of operations. As a result of this transaction, the Company recorded $12.3 million of trademarks on its consolidated balance sheet. Refer to Note 4 for further details. Amortization expense for intangible assets for FY 2019 and FY 2018 was $0.1 million and $0.3 million, respectively. The Company projects amortization expenses to be less than $0.1 million in both FY 2020 and FY 2021 and none in FY 2022 through FY 2024. |
Consolidated Entities, Joint Ve
Consolidated Entities, Joint Ventures and Investments | 12 Months Ended |
Dec. 31, 2019 | |
Investments In And Advances To Affiliates Schedule Of Investments [Abstract] | |
Consolidated Entities Joint Ventures and Investments | 4. Consolidated Entities, Joint Ventures and Investments Consolidated Entities The following entities and joint ventures are consolidated with the Company: PONY In February 2015, the Company, through its then newly-formed subsidiary, US Pony Holdings, LLC, (“Pony Holdings”) acquired the North American rights to the PONY brand. These rights include the rights in the US obtained from Pony, Inc. and Pony International, LLC, and the rights in Mexico and Canada obtained from Super Jumbo Holdings Limited. The purchase price paid by the Company was $37.0 million. The $14.7 million of goodwill resulting from the 2015 acquisition is deductible for income tax purposes. Pony Holdings is owned 75% by the Company and 25% by its partner Anthony L&S Athletics, LLC (“ALS”). ALS contributed to Pony Holdings its perpetual license agreement in respect of the U.S. and Canadian territories for a 25% interest in Pony Holdings. Accounting Standards Codification (“ASC”) 810 - “Consolidations” (“ASC 810”) affirms that consolidation is appropriate when one entity has a controlling financial interest in another entity. The Company owns a 75% membership interest in Pony Holdings compared to the minority owner’s 25% membership interest. Further, the Company believes that the voting and veto rights of the minority shareholder are merely protective in nature and do not provide them with substantive participating rights in Pony Holdings. As such, Pony Holdings is subject to consolidation with the Company, which is reflected in the consolidated financial statements. Iconix Middle East Joint Venture In December 2014, the Company formed Iconix MENA (“Iconix Middle East”) a wholly owned subsidiary of the Company and contributed to it substantially all rights to its wholly-owned and controlled brands in the United Arab Emirates, Qatar, Kuwait, Bahrain, Saudi Arabia, Oman, Jordan, Egypt, Pakistan, Uganda, Yemen, Iraq, Azerbaijan, Kyrgyzstan, Uzbekistan, Lebanon, Tunisia, Libya, Algeria, Morocco, Cameroon, Gabon, Mauritania, Ivory Coast, Nigeria and Senegal (the “Middle East Territory”). Shortly thereafter, Global Brands Group Asia Limited (“GBG”), purchased a 50% interest in Iconix Middle East for approximately $18.8 million. GBG paid $6.3 million in cash upon the closing of the transaction and committed to pay an additional $12.5 million over the 24-month period following closing. This obligation was fully paid in FY 2017. As of December 31, 2019, the redeemable non-controlling interest of Iconix MENA was $20.8 million, which was recorded on the Company’s consolidated balance sheet as mezzanine equity. Pursuant to the joint venture agreement entered into in connection with the formation of Iconix Middle East, each of GBG and the Company holds specified put and call rights, respectively, relating to GBG’s ownership interest in the joint venture. Five-Year and Eight-Year Put/Call Options: At any time during the six month period commencing March 31, 2021, and again at any time during the six month period commencing December 19, 2022, GBG may deliver a put notice to the Company, and the Company may deliver a call notice to GBG, in each case, for the Company’s purchase of all equity in the joint venture held by GBG. In the event of the exercise of such put or call rights, the purchase price for GBG’s equity in Iconix Middle East is an amount equal to (x) the Agreed Value (in the event of GBG put) or (y) 120% of Agreed Value (in the event of an Iconix call). The purchase price is payable in cash. Agreed Value—Five-Year Put/Call: (i) Percentage of Iconix Middle East owned by GBG, multiplied by (ii) 5.5, multiplied by (iii) aggregate royalty generated by Iconix Middle East for the year ending December 31, 2019; provided, however, that such Agreed Value cannot be less than $12.0 million Agreed Value—Eight-Year Put/Call: (i) Percentage of Iconix Middle East owned by GBG, multiplied by (ii) 5.5, multiplied by (iii) aggregate royalty generated by Iconix Middle East for the year ending December 31, 2022; provided, however, that the Agreed Value cannot be less than $12.0 million. The Company serves as Iconix Middle East’s administrative manager, responsible for arranging for or providing back-offices services, including legal maintenance of trademarks (e.g. renewal of trademark registrations) for the brands in respect of Iconix Middle East Territory. Further Iconix Middle East has access to general brand marketing materials prepared and owned by the Company to refit for use by the joint venture in marketing brands in the Middle East Territory. GBG serves as Iconix Middle East’s local manager, responsible for providing market experience in respect of the applicable territory, managing the joint venture on a day-to-day basis (other than back-office services), identifying potential licensees and assisting the Company in enforcement of license agreements in respect of the applicable territory. The Company receives a monthly fee in connection with the performance of its services as administrative manager in an amount equal to 5% of Iconix Middle East’s gross revenue collected in the prior month (other than in respect of the Umbro and Lee Cooper brands). GBG receives a monthly fee in connection with the performance of its services as local manager in an amount equal to 15% of Iconix Middle East’s gross revenue collected in the prior month (other than in respect of the Umbro and Lee Cooper brands). In addition, following the closing of GBG’s purchase of 50% of Iconix Middle East, GBG received from the Company $3.1 million for expenses related to its diligence and market analysis in the Iconix Middle East Territory, which reduced the cash received by the Company in relation to this transaction as of December 31, 2014. In December 2016, the Company irrevocably exercised its call right to acquire an additional 5% equity interest in Iconix Middle East from GBG for total cash consideration of $1.8 million. After taking into effect this transaction and as of December 31, 2016, the Company’s ownership interest in Iconix Middle East effectively increased to 55%. Such acquisition closed in February 2017. In addition to the increase in ownership interest, the joint venture agreement gives the Company the sole discretion and power to direct the activities of the Iconix Middle East joint venture that most significantly impact the joint venture’s economic performance. As a result of this transaction, the Company continues to consolidate this joint venture in its consolidated financial statements in accordance with ASC 810. The Company determined, in accordance with ASC 810, based on the corporate structure, voting rights and contributions of the Company and GBG, that Iconix Middle East is a variable interest entity (VIE) and, as the Company has been determined to be the primary beneficiary, is subject to consolidation. The Company has consolidated this joint venture within its consolidated financial statements since inception. The liabilities of the VIE are not material and none of the VIE assets are encumbered by any obligation of the VIE or other entity. Iconix Israel Joint Venture In November 2013, the Company formed Iconix Israel. LLC (“Iconix Israel”), a wholly-owned subsidiary of the Company, and contributed substantially all rights to its wholly-owned and controlled brands in the State of Israel and the geographical regions of the West Bank and the Gaza Strip (together, the “Israel Territory”) through an agreement with Iconix Israel. Shortly thereafter, M.G.S. Sports Trading Limited (“MGS”) purchased a 50% interest in Iconix Israel for approximately $3.3 million. In December 2016, the Company amended the Iconix Israel joint venture agreement to obtain the sole discretion and power to direct the activities of the Iconix Israel joint venture that most significantly impact its economic performance which requires the Company to continue to consolidate this joint venture in its consolidated financial statements in accordance with ASC 810. The Company serves as Iconix Israel’s administrative manager, responsible for arranging for or providing back-offices services, including legal maintenance of trademarks (e.g. renewal of trademark registrations) for the brands in respect of the Israel Territory. Further, Iconix Israel has access to general brand marketing materials, prepared and owned by the Company to refit for use by the joint venture in the Israel Territory. MGS serves as Iconix Israel’s local manager, responsible for providing market experience in respect of the applicable territory, managing the joint venture on a day-to-day basis (other than back-office services), identifying potential licensees and assisting the Company in enforcement of license agreements in respect of the applicable territory. Each of the Company and MGS is reimbursed for all out-of-pocket costs incurred in performing its respective services. The Company determined, in accordance with ASC 810, based on the corporate structure, voting rights and contributions of the Company and MGS, that Iconix Israel is a VIE and, as the Company has been determined to be the primary beneficiary, is subject to consolidation. The Company has consolidated this joint venture within its consolidated financial statements since inception. The liabilities of the VIE are not material and none of the VIE assets are encumbered by any obligation of the VIE or other entity. Iconix Canada Joint Venture In June 2013, the Company formed Iconix Canada L.P. (“Ico Canada”) and Ico Brands L.P. (“Ico Brands” and, together with Ico Canada, collectively, “Iconix Canada”), as wholly-owned indirect subsidiaries of the Company, and contributed substantially all rights to its wholly-owned and controlled brands in Canada (the “Canada Territory”) through agreements with the Iconix Canada partnerships. Shortly thereafter through their acquisitions of limited partnership and general partnership interests, Buffalo International ULC and BIU Sub Inc. purchased 50% interests in the Iconix Canada partnerships for $17.8 million in the aggregate, of which approximately $8.9 million in the aggregate, was paid in cash upon closing of these transactions in June 2013, and the remaining $8.9 million of which were notes payable to the Company to be paid, as amended, over the five year period following the date of closing, with final payment in June 2018. In July 2017, the Company purchased the 50% ownership interest in Iconix Canada owned by its joint venture partner for $19.0 million plus 50% of the net asset value of Iconix Canada (which was approximately $2.2 million), in cash, of which $9.0 million was paid at closing and the remaining $10.0 million will be paid over a two-year period through the Company’s distributions from its 51% interest in the Buffalo brand joint venture. The Company also paid 50% of the estimated net asset value of Iconix Canada at closing, subject to a post-closing reconciliation based on 50% of the actual net asset value of Iconix Canada. Additionally, as a part of this transaction, the remaining outstanding purchase price installment payment of $2.9 million due from the Company’s joint venture partner, in respect of such partner’s interest in the joint venture at inception was paid to the Company. As a result of this transaction, the Company maintains 100% ownership interest in Iconix Canada. Iconix Europe In December 2009, the Company contributed substantially all rights to its brands in the European Territory (defined as all member states and candidate states of the European Union and certain other European countries) to Iconix Europe LLC, a then newly formed wholly-owned subsidiary of the Company (“Iconix Europe”). Also in December 2009 and shortly after the formation of Iconix Europe, an investment group led by The Licensing Company and Albion Equity Partners LLC purchased a 50% interest in Iconix Europe through Brand Investments Vehicles Group 3 Limited (“BIV”), to assist the Company in developing, exploiting, marketing and licensing the Company’s brands in the European Territory. In consideration for its 50% interest in Iconix Europe, BIV paid $4.0 million. At inception and prior to the January 2014 transaction described below, the Company determined, in accordance with ASC 810, based on the corporate structure, voting rights and contributions of the Company and BIV, that Iconix Europe is not a VIE and was not subject to consolidation. The Company had recorded its investment under the equity method of accounting. In January 2014, the Company consented to the purchase of BIV’s 50% ownership interest in Iconix Europe by GBG. In exchange for this consent, the Company recorded a $1.5 million receivable due from GBG. As a result of this transaction, the Company recorded revenue of $1.5 million, which is included in licensing revenue in the Company’s consolidated statement of operations for FY 2014. In addition, the Company acquired an additional 1% equity interest in Iconix Europe from GBG, and amended the operating agreement (herein referred to as the “IE Operating Agreement”) thereby increasing its ownership in Iconix Europe to a controlling 51% interest and reducing its preferred profit distribution from Iconix Europe to $3.0 million after which all profits and losses are recognized 51/49 in accordance with each principal’s membership interest percentage. ASC Topic 810 affirms that consolidation is appropriate when one entity has a controlling financial interest in another entity. As a result of this transaction, the Company owns a 51% membership interest in Iconix Europe compared to the minority owner’s 49% membership interest. Further, the Company believes that the voting and veto rights of the minority shareholder are merely protective in nature and do not provide the minority shareholder with substantive participating rights in Iconix Europe. As such, Iconix Europe is subject to consolidation with the Company, which is reflected in the consolidated financial statements as of December 31, 2016. Pursuant to the IE Operating Agreement, for a period following the fifth anniversary of the January 2014 transaction and again following the eighth anniversary of the January 2014 transaction, the Company has a call option to purchase, and GBG has a put option to initiate the Company’s purchase of GBG’s 49% equity interests in Iconix Europe for a calculated amount as described below. Five-Year and Eight-Year Put/Call Options: At any time during the six month period commencing March 31, 2021, and again at any time during the six month period commencing January 13, 2022, GBG may deliver a put notice to the Company, and the Company may deliver a call notice to GBG, in each case, for the Company’s purchase of all equity in the joint venture held by GBG. In the event of the exercise of such put or call rights, the purchase price for GBG’s equity in Iconix Europe is an amount equal to (x) the Agreed Value (in the event of GBG’s put) or (y) 120% of Agreed Value (in the event of an Iconix call). The purchase price is payable in cash. Agreed Value-Five-Year Put/Call: (i) (x) percentage of Iconix Europe owned by GBG, multiplied by (y) 5.5, multiplied by (z) the greater of aggregate royalty generated by Iconix Europe for the year ended December 31, 2013 and the year ended December 31, 2018; plus (ii) percentage of Iconix Europe owned by GBG multiplied by the aggregate amount of cash in Iconix Europe which is available for distribution to the members. Agreed Value-Eight-Year Put/Call: (i) (x) percentage of Iconix Europe owned by GBG, multiplied by (y) 5.5, multiplied by (z) the greater of aggregate royalty generated by Iconix Europe for the year ended December 31, 2013 and the year ended December 31, 2021; plus (ii) percentage of Iconix Europe owned by GBG multiplied by the aggregate amount of cash in Iconix Europe which is available for distribution to the members. As a result of the January 2014 transaction, the Company records this redeemable non-controlling interest as mezzanine equity on the Company’s consolidated balance sheet. The Company is accreting the difference between the redemption value of the put option and the non-controlling interest at inception over the five-year term of the first put option to retained earnings on the Company’s balance sheet. As of December 31, 2019, the redeemable non-controlling interest for Iconix Europe was $8.7 million, which was recorded on the Company’s consolidated balance sheet as mezzanine equity. Hydraulic IP Holdings, LLC In December 2014, the Company formed a joint venture with Top On International Group Limited (“Top On”). The name of the joint venture is Hydraulic IP Holdings, LLC (“Hydraulic IPH”), a Delaware limited liability company. The Company paid $6.0 million, which was funded entirely from cash on hand, in exchange for a 51% controlling ownership of Hydraulic IPH. Top On owns the remaining 49% interest in Hydraulic IPH. Hydraulic IPH owns the IP rights, licenses and other assets relating principally to the Hydraulic brand. Concurrently, Hydraulic IPH and iBrands International, LLC (“iBrands”) entered into a license agreement pursuant to which Hydraulic IPH licensed the Hydraulic brand to iBrands as licensee in certain categories and geographies. Additionally, the Company and Top On entered into a limited liability company agreement with respect to their ownership of Hydraulic IPH. As of December 31, 2019, the Company maintains a 15% ownership interest in iBrands. In FY 2018, based on impairment indicators, the Company recorded a full impairment of its investment in iBrands of $2.5 million, which was included in investment impairment on the Company’s consolidated statement of operations. In April 2018, pursuant to a condition in a letter agreement entered into simultaneously with the Company’s acquisition of a 51% equity interest in Hydraulic IPH in December 2014, the Company acquired the remaining 49% ownership interest from its joint venture partner for no cash consideration as a result of an affiliate of the joint venture partner not making its minimum guaranteed royalty payment obligations to the Company in accordance with the respective license agreement. This transaction resulted in the Company effectively increasing its ownership interest in Hydraulic to 100%. The Company will retain 100% ownership interest in Hydraulic unless the affiliate of such joint venture partner satisfies its outstanding payment obligations by making all payments of the minimum guaranteed royalties to the Company under the terminated license agreement. Buffalo Brand Joint Venture In February 2013, Iconix CA Holdings, LLC (“ICA Holdings”), a Delaware limited liability company and a wholly-owned subsidiary of the Company, formed a joint venture with Buffalo International ULC (“BII”). The name of the joint venture is 1724982 Alberta ULC (“Alberta ULC”), an Alberta, Canada unlimited liability company. The Company, through ICA Holdings, paid $76.5 million, which was funded entirely from cash on hand, in exchange for a 51% controlling ownership of Alberta ULC which consists of a combination of equity and a promissory note. BII owns the remaining 49% interest in Alberta ULC. Alberta ULC owns the IP rights, licenses and other assets relating principally to the Buffalo David Bitton brand (the “Buffalo brand”). The Buffalo brand trademarks have been determined by management to have an indefinite useful life and accordingly, consistent with ASC Topic 350, no amortization is being recorded in the Company’s consolidated statement of operations. The goodwill and trademarks are subject to a test for impairment on an annual basis. The Company has consolidated this joint venture within its consolidated financial statements since inception. Icon Modern Amusement In December 2012, the Company entered into an interest purchase and management agreement with Dirty Bird Productions, Inc., a California corporation, in which the Company effectively purchased a 51% controlling interest in the Modern Amusement trademarks and related assets for $5.0 million, which was funded entirely from cash on hand. To acquire its 51% controlling interest in the trademark, the Company formed a new joint venture company, Icon Modern Amusement LLC (“Icon MA”), a Delaware limited liability company. Hardy Way In May 2009, the Company acquired a 50% interest in Hardy Way, the owner of the Ed Hardy brands and trademarks, for $17.0 million, comprised of $9.0 million in cash and 58,868 shares of the Company’s common stock valued at $8.0 million as of the closing. In addition, the sellers of the 50% interest received an additional $1.0 million in shares of the Company’s common stock pursuant to an earn-out based on royalties received by Hardy Way for 2009. On April 26, 2011, Hardy Way acquired substantially all of the licensing rights to the Ed Hardy brands and trademarks from its licensee, Nervous Tattoo, Inc. (“NT”) pursuant to an asset purchase agreement by and among Hardy Way, NT and Audigier Brand Management Group, LLC (“ABMG”). Immediately prior to the closing of the transactions contemplated by the asset purchase agreement, the Company contributed $62.0 million to Hardy Way, thereby increasing the Company’s ownership interests in Hardy Way from 50% to 85% of the outstanding membership interests. Umbro China In July 2016, the Company executed an agreement with MH Umbro International Co. Limited (MHMC) to sell up to an aggregate 50% interest in a newly registered company in Hong Kong, which holds the Umbro intellectual property in respect of the Greater China territory, for total cash consideration of $25.0 million. The acquisition of such equity is expected to occur over a four-year period. As stipulated in the agreement, on each anniversary subsequent to the close of the transaction, MHMC will pay a portion of the total cash consideration to the Company in return for a percentage of the total potential 50% equity interest. In July 2016, the Company received $2.5 million in cash from MHMC for a 5% interest in Umbro China. In accordance with ASC 810, the Company has recorded noncontrolling interest of $1.8 million for the sale of 5% interest in Umbro China to MHMC and the corresponding gain associated with the sale of this interest is recorded in additional paid in capital on the Company’s consolidated balance sheet. Pursuant to the Shareholder Agreement entered into in connection with the formation of Umbro China, each of MHMC and the Company holds specified call rights to purchase its partners’ ownership interest in the joint venture as described below. In July 2019, pursuant to the operating agreement, the Company reacquired the remaining 5% ownership interest in Umbro China from MHMC, itsjoint venture partner for approximately $1.3 million. If at any time after June 2036, both Iconix and MHMC hold shares in Umbro China, either shareholder (Initiating Shareholder) may provide written notice (Call Option Notice) to the other shareholder of its election to purchase all shares held by such shareholder at the date of the Call Option Notice and at a price per share as stated in the Call Option Notice. Within ten (10) business days after receipt of a Call Option Notice, the other shareholder may provide written notice (Purchase Option Notice) to the Initiating Shareholder of its election to purchase all shares held by the Initiating Shareholder at the price per share set forth in the Call Option Notice, at which point the Call Option Notice shall become null and ineffective as if it was not issued or served. Danskin China In October 2016, the Company entered into an agreement with Li-Ning (China) Sports Goods Co., Ltd. (“LiNing”) to sell up to a 50% interest (and no less than a 30% interest) in its wholly-owned indirect subsidiary, Danskin China Limited (“Danskin China”), a new Hong Kong registered company, which holds the Danskin trademarks and related assets in respect of mainland China and Macau. As a result of disruptions caused in the People’s Republic of China, the Company has agreed to extend the date of LiNing’s purchase of the equity interest in Danskin China until June 30, 2020 (the “First Closing”) for cash consideration of $5.4 million. The aggregate cash consideration paid by Li Ning for its ownership of Danskin China may, based on the percentage interest in Danskin China that Li Ning elects to purchase on each anniversary of the First Closing, increase to up to $8.6 million. Starter China In March 2018, the Company entered into an agreement with Photosynthesis Holdings, Co. Ltd. (“PHL”) to sell up to no less than a 50% interest and up to a total of 60% interest in its wholly-owned indirect subsidiary, Starter China Limited, a newly registered Hong Kong subsidiary of Iconix China (“Starter China”), and which will hold the Starter trademarks and related assets in respect of the Greater China territory. As a result of disruptions caused in the People’s Republic of China, the Company has agreed to extend the date of PHL’s purchase of the initial 50% equity interest in Starter China until June 30, 2020 for cash consideration of $20.0 million. The additional 10% equity interest (for a total equity interest of 60% interest) purchase right of PHL is expected to occur over a three-year period commencing January 16, 2022 for cash consideration equal to the greater of $2.7 million or 2.5 times the royalty received under the respective license agreement in the previous twelve months based on other terms and conditions specified in the share purchase agreement. Lee Cooper China In June 2018, the Company entered into an agreement with POS Lee Cooper HK Co. Ltd. (“PLC”) to sell up to no less than a 50% interest and up to a total of 60% interest in its wholly-owned indirect subsidiary, Lee Cooper China Limited, a newly registered Hong Kong subsidiary of Iconix China (“Lee Cooper China”), and which will hold the Lee Cooper trademarks and related assets in respect of the Greater China territory. PLC’s purchase of the initial 50% equity interest in Lee Cooper China is expected to occur over a four-year period commencing on October 15, 2020 for cash consideration of approximately $8.2 million. The additional 10% equity interest (for a total equity interest of 60% interest) purchase right of PLC is expected to occur over a two-year period commencing January 15, 2024 for cash consideration equal to the greater of $2.5 million or 2.5 times the royalty received under the respective license agreement in the previous twelve months based on other terms and conditions specified in the share purchase agreement. Iconix Australia Joint Venture In September 2013, the Company formed Iconix Australia, LLC (“Iconix Australia”), a Delaware limited liability company and a wholly-owned subsidiary of the Company, and contributed substantially all rights to its wholly-owned and controlled brands in Australia and New Zealand (the “Australia territory”) through an agreement with Iconix Australia. Shortly thereafter Pac Brands USA, Inc. (“Pac Brands”) purchased a 50% interest in Iconix Australia for $7.2 million in cash, all of which was received upon closing of this transaction in September 2013. As a result of this transaction, the Company recorded a gain of $4.1 million in FY 2013 for the difference between the cash consideration received by the Company and the book value of the brands contributed to the joint venture. In July 2018, the Company purchased an additional 5% ownership interest in Iconix Australia from Brand Collective (USA), Inc. (“BrandCo”) for $0.7 million in cash. As a result of this transaction, the Company’s ownership interest in Iconix Australia effectively increased to 55% and reduced BrandCo’s ownership interest in Iconix Australia to 45%. This purchase resulted in a change in rights, duties and obligations of the Company and BrandCo in their capacity as joint venture partners in respects of the Iconix Australia joint venture. Additionally, as a result of this transaction and in accordance with ASC 810, based on the corporate structure, voting rights and contributions of the Company and BrandCo, Iconix Australia has been determined to be a VIE, and thus is subject to consolidation and included in the Company’s consolidated financial statements on and after July 2018. The estimated fair value of the assets acquired, less liabilities assumed, were allocated in July 2018 as follows: Fair value of 50% interest in Iconix Australia $ 6,507 Book value of Company equity investment prior to purchase of additional 5% interest (1,904 ) Gain on re-measurement of initial equity investment 8,410 $ 13,013 Trademarks 12,349 Cash 44 Accounts receivable 360 Intercompany receivables, net 368 Accounts payable and accrued expenses (85 ) Deferred revenue (52 ) Goodwill 29 $ 13,013 The Iconix Australia trademarks have been determined by management to have an indefinite useful life and accordingly, no amortization is being recorded in the Company’s consolidated statement of operations. The goodwill and trademarks are subject to a test for impairment on an annual basis. Additionally, as a result of the acquisition, the Company recognized a $5.9 million non-controlling interest associated with BrandCo’s 45% ownership interest in the Iconix Australia joint venture on the date of consolidation. As of December 31, 2019, the redeemable non-controlling interest for Iconix Australia was For the second half of FY 2018, post-acquisition, the Company recognized approximately $0.8 million, in revenue from such assets. In addition, the Company’s selling, general and administrative expenses increased by $0.2 million for the second half of FY 2018, and net income attributable to non-controlling interest increased by $0.3 million for the second half of FY 2018, as a result of consolidating Iconix Australia on the Company’s consolidated statement of operations. Additionally, pursuant to the Amended Agreement, the specified put and call rights held by BrandCo and the Company, respectively, relating to BrandCo’s ownership interest in the joint venture, were amended and restated as follows: Two-Year Put/Call Option: At any time after December 20, 2020, BrandCo may deliver a put notice to the Company and the Company may deliver a call notice to BrandCo, in each case, for the Company’s purchase of all units in the joint venture held by BrandCo. Upon the exercise of such put/call, the purchase price for BrandCo’s units in the joint venture will be an amount equal to (i) the percentage interest represented by BrandCo’s units, multiplied by (ii) 5, multiplied by (iii) RR, where RR is equal to: A + (A x (100% + CAGR)) 2 A = trailing 12 months royalty revenue; and CAGR = 36 month compound annual rate Equity Method Investments In the fourth quarter of December 31, 2019, the Company reviewed the fair values of the underlying assets and liabilities of its equity method investments as compared to their book values. As a result, the Company recognized an investment impairment associated with its investment in MG Icon. See below in section “MG Icon” for further details. In the third quarter of FY 2019, the Company recognized an investment impairment of its investment in Marcy Media Holdings LLP. See below in section “Marcy Media Holdings LLP” for further details. The fair value of the Company’s other equity method investments were higher than their book value and thus no other impairment was recorded. The fair value of the Company’s equity method investments were higher than the book values and thus no impairment was recorded in FY 2018. The following joint ventures are recorded using the equity method of accounting: Iconix Southeast Asia Joint Venture In October 2013, the Company formed Iconix SE Asia Limited (“Iconix SE Asia”), a wholly owned subsidiary of the Company, and contributed substantially all rights to its wholly-owned and controlled brands in Indonesia, Thailand, Malaysia, Philippines, Singapore, Vietnam, Cambodia, Laos, Brunei, Myanmar, and East Timor (the “South East Asia Territory”). Shortly thereafter, GBG (f/k/a Li + Fung Asia Limited) purchased a 50% interest in Iconix SE Asia for approximately $12.0 million. GBG paid $7.5 million in cash upon the closing of the transaction and committed to pay an additional $4.5 million over the 24-month period following closing. In June 2014, the Company contributed substantially all rights to its wholly-owned and controlled brands in the Republic of Korea, and its Ecko, Zoo York, Ed Hardy and Sharper Image Brands in the European Union, and Turkey, in each case, to Iconix SE Asia. In return, GBG agreed to pay the Company $15.9 million, of which $4.0 million was paid in cash at clo |
Gains on Sale of Trademarks, ne
Gains on Sale of Trademarks, net | 12 Months Ended |
Dec. 31, 2019 | |
Investments Debt And Equity Securities [Abstract] | |
Gains on Sale of Trademarks, net | 5. Gains on Sale of Trademarks, net The following table details transactions comprising gains on sales of trademarks, net in the consolidated statement of operations: December 31, December 31, 2019 2018 Interest in Sharper Image trademark in Iconix Southeast Asia ( 2) — 236 Interest in Sharper Image trademark in Iconix Europe ( 2) — 352 Interest in Sharper Image trademark in Iconix MENA ( 2) — 250 Interest in Sharper Image trademark in Iconix Australia ( 2) — 125 Interest in Badgley Mischka trademark in Iconix Southeast Asia ( 1) — 478 Interest in Badgley Mischka trademark in Iconix Europe ( 1) — (244 ) Interest in Badgley Mischka trademark in Iconix MENA ( 1) — 71 Total net gains on sales of trademarks $ — $ 1,268 ( 1 ) In February 2016, the Company sold its rights to the Badgley Mischka intellectual property and related assets to Titan Industries, Inc. in partnership with the founders, Mark Badgley and James Mischka, and the apparel license MJCLK LLC for $13.8 million in cash. The Company recognized a gain of $11.6 million as a result of this transaction. The $11.6 million gain represented the sale of the Badgley Mischka intellectual property and related assets within the United States, Greater China, Israel and Latin America territories. The Badgley Mischka intellectual property and related assets within other foreign territories is owned by certain of the Company’s joint venture entities and required the Company to negotiate and finalize the sale of the intellectual property with its respective joint venture partners. In September 2017, the Company sold its interest in certain Badgley Mischka trademarks for shoes and handbags in Canada for $0.4 million in cash. The Company recognized a gain of $0.4 million as a result of this transaction. Additionally, in FY 2018, the Company recognized an additional combined gain of approximately $0.3 million upon final execution of the agreement for the sale of the Badgley Mischka intellectual property and related assets which were previously owned by the Iconix Southeast Asia, Iconix Europe and Iconix MENA joint ventures resulting in an aggregate gain on the sale of the brand of $12.3 million. ( 2 ) In December 2016, the Company sold the rights to the Sharper Image intellectual property and related assets to 360 Holdings, Inc. for $100.0 million in cash (of which $1.8 million is being held in escrow for the sale of the Sharper Image intellectual property in the Company’s international joint ventures). The Company recognized a gain of $28.1 million as a result of this transaction. The Sharper Image intellectual property and related assets within other foreign territories is owned by certain of the Company’s joint venture entities and required the Company to negotiate and finalize the sale of the intellectual property with its respective joint venture partners. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 6. Fair Value Measurements ASC Topic 820 “Fair Value Measurements”, establishes a framework for measuring fair value and requires expanded disclosures about fair value measurement. While ASC 820 does not require any new fair value measurements in its application to other accounting pronouncements, it does emphasize that a fair value measurement should be determined based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, ASC 820 established the following fair value hierarchy that distinguishes between (1) market participant assumptions developed based on market data obtained from sources independent of the reporting entity (observable inputs) and (2) the reporting entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs): Level 1: Observable inputs such as quoted prices for identical assets or liabilities in active markets Level 2: Other inputs that are observable directly or indirectly, such as quoted prices for similar assets or liabilities or market-corroborated inputs Level 3: Unobservable inputs for which there is little or no market data and which requires the owner of the assets or liabilities to develop its own assumptions about how market participants would price these assets or liabilities The valuation techniques that may be used to measure fair value are as follows: (A) Market approach—Uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities (B) Income approach—Uses valuation techniques to convert future amounts to a single present amount based on current market expectations about those future amounts, including present value techniques, option-pricing models and excess earnings method (C) Cost approach—Based on the amount that would currently be required to replace the service capacity of an asset (replacement cost) To determine the fair value of certain financial instruments, the Company relies on Level 2 inputs generated by market transactions of similar instruments where available, and Level 3 inputs using an income approach when Level 1 and Level 2 inputs are not available. The Company’s assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of financial assets and financial liabilities and their placement within the fair value hierarchy. Hedge Instruments From time to time, the Company will purchase hedge instruments to mitigate statement of operations risk and cash flow risk of revenue and receivables. As of December 31, 2019, the Company had no hedge instruments. Financial Instruments As of December 31, 2019 and December 31, 2018, the fair values of cash, receivables and accounts payable approximated their carrying values due to the short-term nature of these instruments. The fair value of notes receivable and note payable from and to our joint venture partners approximate their carrying values. The fair value of certain of our other equity investments is generally not readily determinable, and it is not practical to obtain the information needed to determine the value. For FY 2019, the Company recorded a $9.6 million (inclusive of $2.6 million of advances made to the entity) impairment charge to its equity investment in MG Icon based upon a decline in the fair value of the investment due to poor performance and an impairment of its investment in Marcy Media Holdings, LLC in the amount of $17.0 million based on the estimated value that would be realized on the disposition of our equity interest. December 31, 2019 December 31, 2018 Carrying Fair Value Carrying Fair Value Long-term debt, including current portion (1) $ 645,721 $ 556,187 $ 675,229 $ 582,370 (1) Carrying amounts include aggregate unamortized debt discount and debt issuance costs. Additionally, the fair value of the other equity investments acquired as part of the FY 2015 purchase of our joint venture partners’ interest in Iconix China which was sold in FY 2019 for $0.7 million (refer to Note 4 for further details) was $0 and $1.0 million as of December 31, 2019 and December 31, 2018, respectively, with the decrease in fair value of $0.3 million recorded in the Company’s consolidated statement of operations. Financial instruments expose the Company to counterparty credit risk for nonperformance and to market risk for changes in interest. The Company manages exposure to counterparty credit risk through specific minimum credit standards, diversification of counterparties and procedures to monitor the amount of credit exposure. The Company’s financial instrument counterparties are investment or commercial banks with significant experience with such instruments, as well as certain of our joint venture partners – see Note 4. Non-Financial Assets and Liabilities The Company accounts for non-recurring adjustments to the fair values of its non-financial assets and liabilities under ASC 820 using a market participant approach. The Company uses a discounted cash flow model with Level 3 inputs to measure the fair value of its non-financial assets and liabilities. The Company also adopted the provisions of ASC 820 as it relates to purchase accounting for its acquisitions. The Company has goodwill, which is tested for impairment at least annually, as required by ASC 350- “Intangibles- Goodwill and Other”, (“ASC 350”). Further, in accordance with ASC 350, the Company’s indefinite-lived trademarks are tested for impairment at least annually, on an individual basis as separate single units of accounting. Similarly, consistent with ASC 360- “Property, Plant and Equipment” (“ASC 360”), as it relates to accounting for the impairment or disposal of long-lived assets, the Company assesses whether or not there is impairment of the Company’s definite-lived trademarks. The Company recorded impairment charges on certain indefinite-lived and definite-lived assets during the fourth quarter of FY 2019 as well as the second quarter, third quarter and fourth quarter of FY 2018. Refer to Note 3 for further information. The Company recorded asset impairment charges of $1.8 million in FY 2019 related to the consolidation and partial sublease of its New York office space. |
Fair Value Option
Fair Value Option | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Option | 7. Fair Value Option During the first quarter of FY 2018, the Company elected to account for its 5.75% Convertible Notes under the fair value option. The fair value carrying amount and the contractual principal outstanding balance of the 5.75% Convertible Notes accounted for under the fair value option as of December 31, 2019 is $47.3 million and $94.4 million, respectively. The change of $3.9 million and $81.0 million in the fair value of the 5.75% Convertible Notes accounted for under the fair value option are included in the Company’s consolidated statement of operations for FY 2019 and FY 2018 respectively, within Other Income. The primary reason for electing the fair value option is for simplification and cost-benefit considerations of accounting for the 5.75% Convertible Notes (the hybrid financial instrument) at fair value in its entirety versus bifurcation of the embedded derivatives. The 5.75% Convertible Notes contain bifurcatable embedded derivatives and do not require settlement by physical delivery of non-financial assets. The significant inputs to the valuation of the 5.75% Convertible Notes at fair value are Level 1 inputs, as they are based on the quoted prices of the notes in the active market. |
Debt Arrangements
Debt Arrangements | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt Arrangements | 8. Debt Arrangements The Company’s net carrying amount of debt is comprised of the following: December 31, 2019 December 31, 2018 Senior Secured Notes $ 338,130 $ 365,481 Variable Funding Note, net of original issue discount 99,610 95,273 Senior Secured Term Loan, net of original issue discount 162,418 171,137 5.75% Convertible Notes (1) 47,277 48,076 Unamortized debt issuance costs (1,714 ) (4,738 ) Total debt 645,721 675,229 Less current maturities 61,976 54,263 Total long-term debt $ 583,745 $ 620,966 (1) Reflects the debt carrying amount, which is accounted for under the Fair Value Option in the consolidated balance sheet as of December 31, 2019 and December 31, 2018. The actual principal outstanding balance of the 5.75% Convertible Notes is $94.4 million and $109.7 million as of December 31, 2019 and December 31, 2018, respectively. Senior Secured Notes and Variable Funding Note On November 29, 2012, Icon Brand Holdings, Icon DE Intermediate Holdings LLC, Icon DE Holdings LLC and Icon NY Holdings LLC, each a limited-purpose, bankruptcy remote, wholly-owned direct or indirect subsidiary of the Company, (collectively, the “Co-Issuers”) issued $600.0 million aggregate principal amount of Series 2012-1 4.229% Senior Secured Notes, Class A-2 (the “2012 Senior Secured Notes”) in an offering exempt from registration under the Securities Act. Simultaneously with the issuance of the 2012 Senior Secured Notes, the Co-Issuers also entered into a revolving financing facility of Series 2012-1 Variable Funding Senior Notes, Class A-1 (the “Variable Funding Notes”), which allowed for the funding of up to $100 million of Variable Funding Notes and certain other credit instruments, including letters of credit. The Variable Funding Notes allow for drawings on a revolving basis. Drawings and certain additional terms related to the Variable Funding Notes are governed by the Class A-1 Note Purchase Agreement dated November 29, 2012 (the “Variable Funding Note Purchase Agreement”), among the Co-Issuers, Iconix, as manager, certain conduit investors, financial institutions and funding agents, and Barclays Bank PLC, as provider of letters of credit, as swingline lender and as administrative agent. The Variable Funding Notes are governed, in part, by the Variable Funding Note Purchase Agreement and by certain generally applicable terms contained in the Securitization Notes Indenture. Interest on the Variable Funding Notes is payable at per annum rates equal to the CP Rate, Base Rate or Eurodollar Rate, each as defined in the Variable Funding Note Purchase Agreement. In February 2015, the Company fully drew down the $100.0 million of available funding under the Variable Funding Notes, which remains outstanding as of December 31, 2019. On June 21, 2013, the Co-Issuers issued $275.0 million aggregate principal amount of Series 2013-1 4.352% Senior Secured Notes, Class A-2 (the “2013 Senior Secured Notes” and, together with the 2012 Senior Secured Notes, the “Senior Secured Notes”) in an offering exempt from registration under the Securities Act. The Senior Secured Notes and the Variable Funding Notes are referred to collectively as the “Securitization Notes.” The Securitization Notes were issued under a base indenture (the “Securitization Notes Base Indenture”) and related supplemental indentures (the “Securitization Notes Supplemental Indentures” and, collectively with the Securitization Notes Base Indenture, the “Securitization Notes Indenture”) among the Co-Issuers and Citibank, N.A., as trustee and securities intermediary. The Securitization Notes Indenture allows the Co-Issuers to issue additional series of notes in the future subject to certain conditions. On August 18, 2017, the Company entered into an amendment to the Securitization Notes Supplemental Indenture to, among other things, (i) extend the anticipated repayment date for the Variable Funding Notes from January 2018 to January 2020, (ii) decrease the L/C Commitment and the Swingline Commitment (as such terms are defined in the amendment) available under the Variable Funding Notes to $0 as of the closing date, (iii) replace Barclays Bank PLC with Guggenheim Securities Credit Partners, LLC, as provider of letters of credit, as swingline lender and as administrative agent under the purchase agreement and (iv) provide that, upon the disposition of intellectual property assets by the Co-Issuers as permitted by the Securitization Notes Base Indenture, (x) the holders of the Variable Funding Notes will receive a mandatory prepayment, pro rata based on the amount of Variable Funding Notes held by such holder, and (y) the maximum commitment will be permanently reduced by the amount of the mandatory prepayment. While the Securitization Notes are outstanding, payments of interest are required to be made on the 2012 Senior Secured Notes and the 2013 Senior Secured Notes, in each case, on a quarterly basis. Initially, principal payments in the amount of $10.5 million and $4.8 million were required to be made on the 2012 Senior Secured Notes and 2013 Senior Secured Notes, respectively, on a quarterly basis. The amount of quarterly principal payments has since changed in subsequent periods due to the prepayments made under the Securitization Notes Indenture. See below for further discussion. The legal final maturity date of the Securitization Notes is in January of 2043. As the Co-Issuers have not repaid or refinanced the Securitization Notes prior to January 2020 (the “anticipated repayment date”), additional interest will accrue on amounts outstanding under the Securitization Notes at a rate equal to (A) in respect of the Variable Funding Notes, 5% per annum, (B) in respect of the 2012 Senior Secured Notes and the 2013 Senior Secured Notes, the greater of (1) 5% per annum and (2) a per annum interest rate equal to the excess, if any, by which the sum of (x) the yield to maturity (adjusted to a quarterly bond-equivalent basis), on the anticipated repayment date of the United States treasury security having a term closest to 10 years plus (y) 5% per annum plus (z) with respect to the 2012 Senior Secured Notes, 3.4% per annum, or with respect to the 2013 Senior Secured Notes, 3.14% per annum, exceeds the original interest rate. Pursuant to the Securitization Notes Indenture, such additional interest is not due to be paid by the Company until January 2043 (the legal maturity date) and does not compound annually. The Securitization Notes rank pari passu Pursuant to the Securitization Notes Indenture, the Securitization Notes are the joint and several obligations of the Co-Issuers only. The Securitization Notes are secured under the Securitization Notes Indenture by a security interest in certain of the assets of the Co-Issuers (the “Securitized Assets”), which includes, among other things, (i) intellectual property assets, including the U.S. and Canadian registered and applied for trademarks for the following brands and other related IP assets: Candie’s, Bongo, Joe Boxer (excluding Canadian trademarks, none of which are owned by Iconix), Rampage, Mudd, London Fog (other than the trademark for outerwear products sold in the United States), Mossimo, Ocean Pacific and OP, Danskin and Danskin Now, Rocawear, Starter, Waverly, Fieldcrest, Royal Velvet, Cannon, and Charisma; (ii) the rights (including the rights to receive payments) and obligations under all license agreements for use of those trademarks in such territories; (iii) the following equity interests in the following joint ventures: an 85% interest in Hardy Way LLC which owns the Ed Hardy brand, a 50% interest in MG Icon LLC which owns the Material Girl and Truth or Dare brands, and a 100% interest in ZY Holdings LLC which owns the Zoo York brand; and (iv) certain cash accounts established under the Securitization Notes Indenture. The Securitized Assets do not include revenue generating assets of (x) the Iconix subsidiaries that own the Ecko Unltd trademarks, the Mark Ecko trademarks, the Artful Dodger trademarks, the Umbro trademarks, and the Lee Cooper trademarks, (y) the Iconix subsidiaries that own Iconix’s other brands outside of the United States and Canada or (z) the joint ventures in which Iconix and certain of its subsidiaries have investments and which own the Modern Amusement trademarks and the Buffalo trademarks, the Pony trademarks, and the Hydraulic trademarks. If the Company contributes an Additional IP Holder to Icon Brand Holdings LLC or Icon DE Intermediate Holdings LLC, that Additional IP Holder will enter into a guarantee and collateral agreement in a form provided for in the Securitization Notes Indenture pursuant to which such Additional IP Holder will guarantee the obligations of the Co-Issuers in respect of any Securitization Notes issued under the Securitization Notes Indenture and the other related documents and pledge substantially all of its assets to secure those guarantee obligations pursuant to a guarantee and collateral agreement. Neither the Company nor any subsidiary of the Company, other than the Securitization Entities, will guarantee or in any way be liable for the obligations of the Co-Issuers under the Securitization Notes Indenture or the Securitization Notes. The Securitization Notes are subject to a series of covenants and restrictions customary for transactions of this type, including (i) that the Co-Issuers maintain specified reserve accounts to be used to make required payments in respect of the Securitization Notes, (ii) provisions relating to optional and mandatory prepayments, including mandatory prepayments in the event of a change of control (as defined in the Securitization Notes Supplemental Indentures) and the related payment of specified amounts, including specified make-whole payments in the case of the Senior Secured Notes under certain circumstances, (iii) certain indemnification payments in the event, among other things, the transfers of the assets pledged as collateral for the Securitization Notes are in stated ways defective or ineffective and (iv) covenants relating to recordkeeping, access to information and similar matters. As of December 31, 2019, the Company is in compliance with all covenants under the Securitization Notes. The Company’s Securitization Notes include a financial test, known as the debt service coverage ratio (“DSCR”) that measures the amount of principal and interest required to be paid on the Co-Issuers’ debt to approximate cash flow available to pay such principal and interest. As a result of the decline in royalty collections during the twelve months ended March 31, 2019, the DSCR fell below 1.10x as of March 31, 2019. Beginning April 1, 2019, the Senior Secured Notes experienced a Rapid Amortization Event pursuant to the Securitization Indenture. Upon a Rapid Amortization Event, any residual amounts available will immediately be used to pay down the principal. The Securitization Notes are also subject to customary rapid amortization events provided for in the Securitization Notes Indenture, including events tied to (i) the failure to maintain a stated DSCR, (ii) certain manager termination events, (iii) the occurrence of an event of default and (iv) the failure to repay or refinance the Securitization Notes on the anticipated repayment date. If a rapid amortization event were to occur, including as a result of not paying or redeeming the Securitization Notes in full prior to the anticipated repayment date, the management fee payable to the Company would remain payable pursuant to the priority of payments set forth under the Securitization Indenture, but no residual amounts would be payable to the Company thereafter. As noted above, a Rapid Amortization Event occurred beginning April 1, 2019. As of December 31, 2019 and December 31, 2018, the total outstanding principal balance of the Securitization Notes was $438.1 million and $465.5 million, respectively, of which $42.7 million and $42.7 million, respectively is included in the current portion of long-term debt on the consolidated balance sheet. As of December 31, 2019 and December 31, 2018, $14.9 million and $15.2 million, respectively, is included in restricted cash on the consolidated balance sheet and represents short-term restricted cash consisting of collections on behalf of the Securitized Assets, restricted to the payment of principal, interest and other fees on a quarterly basis under the Senior Secured Notes. For FY 2019 and FY 2018, cash interest expense relating to the Securitization Notes was approximately $21.0 million and $22.2 million, respectively. For FY 2019 and FY 2018, the Company recorded an expense for the amortization of original issue discount and deferred financing costs related to the Variable Funding Notes of $5.1 million and $4.6 million, respectively. The effective interest rate on such notes is 10.87%. Senior Secured Term Loan On August 2, 2017, the Company entered into a credit agreement (as amended or otherwise modified, unless context provides otherwise the “Senior Secured Term Loan”), among IBG Borrower, the Company’s wholly-owned direct subsidiary, as borrower, the Company and certain wholly-owned subsidiaries of IBG Borrower, as guarantors (the “Guarantors”), Cortland Capital Market Services LLC, as administrative agent and collateral agent (“Cortland”) and the lenders party thereto from time to time, including Deutsche Bank AG, New York Branch. Pursuant to the Senior Secured Term Loan, the lenders provided to IBG Borrower a senior secured term loan (the “Senior Secured Term Loan”), scheduled to mature on August 2, 2022 in an aggregate principal amount of $300 million and bearing interest at LIBOR plus an applicable margin of 7% per annum (the “Interest Rate”). On August 2, 2017, the net cash proceeds of the Senior Secured Term Loan were deposited into an escrow account and subject to release to IBG Borrower from time to time, subject to the satisfaction of customary conditions precedent upon each withdrawal, to finance repurchases of, or at the maturity date thereof to repay in full, the 1.50% Convertible Notes (as defined below). The Company had the ability to make these repurchases in the open market or privately negotiated transactions, depending on prevailing market conditions and other factors. Prior to the First Amendment, b orrowings under the Senior Secured Term Loan were to amortize quarterly at 0.5% of principal, commencing on September 30, 2017. IBG Borrower was obligated to make mandatory prepayments annually from excess cash flow and periodically from net proceeds of certain asset dispositions and from net proceeds of certain indebtedness, if incurred (in each case, subject to certain exceptions and limitations provided for in the Senior Secured Term Loan). IBG Borrower’s obligations under the Senior Secured Term Loan are guaranteed jointly and severally by the Company and the other Guarantors pursuant to a separate facility guaranty. IBG Borrower’s and the Guarantors’ obligations under the Senior Secured Term Loan are secured by first priority liens on and security interests in substantially all assets of IBG Borrower, the Company and the other Guarantors and a pledge of substantially all equity interests of the Company’s subsidiaries (subject to certain limits including with respect to foreign subsidiaries) owned by the Company, IBG Borrower or any other Guarantor. However, the security interests will not cover certain intellectual property and licenses owned, directly or indirectly by the Company’s subsidiary Iconix Luxembourg Holdings SÀRL or those subject to the Company’s securitization facility. In addition, the pledges exclude certain equity interests of Marcy Media Holdings, LLC and the subsidiaries of Iconix China Holdings Limited. In connection with the Senior Secured Term Loan, IBG Borrower, the Company and the other Guarantors made customary representations and warranties and have agreed to adhere to certain customary affirmative covenants. Additionally, the Senior Secured Term Loan mandates that IBG Borrower, the Company and the other Guarantors enter into account control agreements on certain deposit accounts, maintain and allow appraisals of their intellectual property, perform under the terms of certain licenses and other agreements scheduled in the Senior Secured Term Loan and report significant changes to or terminations of licenses generating guaranteed minimum royalties of more than $0.5 million. Prior to the First Amendment (as discussed below), IBG Borrower was required to satisfy a minimum asset coverage ratio of 1.25:1.00 and maintain a leverage ratio of no greater than 4.50:1.00. Amendments to Senior Secured Term Loan First Amendment On October 27, 2017, the Company entered into the First Amendment to the Senior Secured Term Loan (the “First Amendment”) pursuant to which, among other things, the remaining escrow balance of approximately $231 million (after taking into account approximately $59.2 million that was used to buy back 1.50% Convertible Notes in open market purchases in the third quarter of 2017) was returned to the lenders. The First Amendment also provided for, among other things, (a) a reduction in the existing $300 million term loan to the then-current term loan balance of approximately $57.8 million, (b) a new senior secured delayed draw term loan facility in the aggregate amount of up to $165.7 million, consisting of (i) a $25 million First Delayed Draw Term Loan (the “First Delayed Draw Term Loan”), and (ii) a $140.7 million Second Delayed Draw Term Loan (the “Second Delayed Draw Term Loan” and, together, with the First Delayed Draw Term Loan, the “Delayed Draw Term Loan Facility”) for the purpose of repaying the 1.50% Convertible Notes; (c) an increase of the Total Leverage Ratio permitted under the Senior Secured Term Loan from 4.50:1.00 to 5.75:1.00; (d) a reduction in the debt service coverage ratio multiplier in the Company’s asset coverage ratio under the Senior Secured Term Loan; (e) an increase in the existing amortization rate from 2 percent per annum to 10 percent per annum commencing July 2019; and (f) amendments to the mandatory prepayment provisions to (i) permit the Company not to prepay borrowings under the Senior Secured Term Loan from the first $100 million of net proceeds resulting from Permitted Capital Raising Transactions (as defined in the Senior Secured Term Loan) effected prior to March 15, 2018, and (ii) eliminate the requirement that the Company pay a Prepayment Premium (as defined in the Senior Secured Term Loan) on any payments or prepayments made prior to December 31, 2018. Indebtedness issued under the Delayed Draw Term Loan Facility was issued with original issue discount. As a result of the First Amendment, on October 27, 2017, the Company repaid $231.0 million on the Senior Secured Term, Loan, which represented $240.7 million of outstanding principal balance. As this transaction was accounted for as a debt modification in accordance ASC 470-50-40, and based on the Company’s accounting policy for debt modifications, the Company wrote-off a pro-rata portion of the original issue discount and deferred financing costs of $9.3 million and $5.4 million, respectively, which were both recorded to interest expense on the Company’s consolidated statement of operations for FY 2017. As a result of this transaction, the Company’s outstanding principal balance of the Senior Secured Term Loan was reduced to $57.8 million at that time and the Company recorded a gain on modification of debt of $8.8 million (which is net of $0.8 million of additional deferred financing costs associated with the First Amendment), which has been recorded in interest expense on the Company’s consolidated statement of operations for FY 2017. On November 2, 2017, the Company drew down the full amount of $25.0 million on the First Delayed Draw Term Loan, of which the Company received $24.0 million in cash, net of the $1.0 million of original issue discount. Second Amendment Given that the Company was unable to timely file its quarterly financial statements for the quarter ended September 30, 2017 with the SEC by November 14, 2017 and became in default under the terms of the Senior Secured Term Loan, as amended, o Second Amendment to the Senior Secured Term Loan. Pursuant to the Second Amendment, Third Amendment On February 12, 2018, the Company, through IBG Borrower, entered into the Third Amendment to the Senior Secured Term Loan. The Third Amendment provides for, among other things, amendments to certain restrictive covenants and other terms set forth in the Senior Secured Term Loan, as amended, to permit (i) IBG Borrower to enter into the 5.75% Notes Indenture (as defined below) and a related intercreditor agreement that was executed and (ii) the Note Exchange (as defined below). Fourth Amendment The Company, through IBG Borrower, entered into the Fourth Amendment to the Senior Secured Term Loan as of March 12, 2018. The Fourth Amendment provided, among other things, that the funding date for the Second Delayed Draw Term Loan would be March 14, 2018 instead of March 15, 2018. The conditions to the availability of the Second Delayed Draw Term Loan were satisfied as of March 14, 2018 due, in part, to the transactions contemplated by the Note Exchange, and the Company was able to draw on the Second Delayed Draw Term Loan. The Senior Secured Term Loan, as amended, contains customary negative covenants and events of default. The Senior Secured Term Loan limits the ability of IBG Borrower, the Company and the other Guarantors, with respect to themselves, their subsidiaries and certain joint ventures, from, among other things, incurring and prepaying certain indebtedness, granting liens on certain assets, consummating certain types of acquisitions, making fundamental changes (including mergers and consolidations), engaging in substantially different lines of business than those in which they are currently engaged, making restricted payments and amending or terminating certain licenses scheduled in the Senior Secured Term Loan. Such restrictions, failure to comply with which may result in an event of default under the terms of the Senior Secured Term Loan, are subject to certain customary and specifically negotiated exceptions, as set forth in the Senior Secured Term Loan. If an event of default occurs, in addition to the Interest Rate increasing by an additional 3% per annum, Cortland shall, at the request of lenders holding more than 50% of the then-outstanding principal of the Senior Secured Term Loan, declare payable all unpaid principal and accrued interest and take action to enforce payment in favor of the lenders. An event of default includes, among other events: a change of control by which a person or group becomes the beneficial owner of 35% of the voting stock of the Company or IBG Borrower; the failure to extend of the Series 2012-1 Class A-1 Senior Notes Renewal Date (as defined in the Senior Secured Term Loan); the failure of any of Icon Brand Holdings LLC, Icon NY Holdings LLC, Icon DE Intermediate Holdings LLC, Icon DE Holdings LLC and their respective subsidiaries (the “Securitization Entities”) to perform certain covenants; and the entry into amendments to the securitization facility that would be materially adverse to the lenders or Cortland without consent. Subject to the terms of the Senior Secured Term Loan, both voluntary and certain mandatory prepayments will trigger a premium of 5% of the aggregate principal amount during the first year of the loan and a premium of 3% of the aggregate principal amount during the second year of the loan, with no premiums payable in subsequent periods. As of December 31, 2019 and December 31, 2018, the outstanding principal balance of the Senior Secured Term Loan was $162.4 million (which is net of $13.2 million of original issue discount) and $171.1 million (which is net of $18.3 million of original issue discount), respectively, of which $19.3 million and $11.6 million is recorded in current portion of long term debt on the Company’s consolidated balance sheet, respectively. The Company recorded cash interest expense of approximately $18.0 million relating to the Senior Secured Term Loan in FY 2019 as compared to $17.2 million for FY 2018 (which included a commitment fee). The Company recorded an expense for the amortization of original issue discount and deferred financing fees of approximately $5.5 million relating to the Senior Secured Term Loan, included in interest expense on the consolidated statement of operations, during FY 2019 as compared to $4.4 million during FY 2018. The effective interest rate on the Senior Secured Term Loan is 13.3%. 5.75% Convertible Notes On February 22, 2018, the Company consummated an exchange (the “Note Exchange”) of approximately $125 million previously outstanding 1.50% Convertible Senior Subordinated Notes due 2018 (the “1.50% Convertible Notes”), pursuant to which it issued approximately $125 million of new 5.75% Convertible Notes due 2023 (the 5.75% Convertible Notes”). The 5.75% Convertible Notes were issued pursuant to an indenture, dated February 22, 2018, by and among the Company, each of the guarantors thereto and The Bank of New York Mellon Trust Company, N.A., as trustee and collateral agent (the “Indenture”). The 5.75% Convertible Notes mature on August 15, 2023. Interest on the 5.75% Convertible Notes may be paid in cash, shares of the Company’s common stock, or a combination of both, at the Company’s election. If the Company elects to pay all or a portion of an interest payment in shares of common stock, the number of shares of common stock payable will be equal to the applicable interest payment divided by the average of the 10 individual volume-weighted average prices for the 10-trading day period ending on and including the trading day immediately preceding the relevant interest payment date. The 5.75% Convertible Notes are (i) secured by a second lien on the same assets that secure the obligations of IBG Borrower under the Senior Secured Term Loan and (ii) guaranteed by IBG Borrower and same guarantors as those under the Senior Secured Term Loan, other than the Company. Subject to certain conditions and limitations, the Company may cause all or part of the 5.75% Convertible Notes to be automatically converted into common stock of the Company. The 5.75% Convertible Notes are convertible into shares of the Company’s common stock based on a conversion rate of 52.1919 shares of the Company’s common stock, per $1,000 principal amount of the 5.75% Convertible Notes (which is equal to an initial conversion price of approximately $19.16 per share), subject to adjustment from time to time pursuant to the 5.75% Convertible Note Indenture. Holders converting their 5.75% Convertible Notes (including in connection with a mandatory conversion) shall also be entitled to receive a payment from the Company equal to the Conversion Make-Whole Payment (as defined in the Indenture) if such conversion occurs after a regular record date and on or before the next succeeding interest payment date, through and including the maturity date (determined as if such conversion did not occur). If the Company elects to pay all or a portion of a Conversion Make-Whole Payment in shares of common stock, the number of shares of common stock payable will be equal to the applicable Conversion Make-Whole Payment divided by the average of the 10 individual volume-weighted average prices for the 10-trading day period immediately preceding the applicable conversion date. Subject to certain limitations pursuant to the Senior Secured Term Loan, from and after the February 22, 2019, the Company may redeem for cash all or part of the 5.75% Convertible Notes at any time by providing at least 30 days’ prior written notice to holders of the 5.75% Convertible Notes. If the Company undergoes a fundamental change (which would occur if the Company experiences a change of control) prior to maturity, each holder will have the right at its option, but subject in all respects to the terms of the Intercreditor Agreement and the Senior Secured Term Loan, to require the Company to repurchase for cash all or a portion of such holder’s 5.75% Convertible Notes at a fundamental change purchase price equal to 100% of the principal amount of the 5.75% Convertible Notes to be repurchased, together with interest accrued and unpaid to, but excluding, the fundamental change purchase date. The Company is subject to certain restrictive covenants pursuant to the 5.75% Convertible Note Indenture, including limitations on (i) liens, (ii) indebtedness, (iii) asset sales, (iv) restricted payments and investments, (v) prepayments of indebtedness and (vi) transactions with affiliates. During 2019, certain noteholders converted an aggregate outstanding principal balance of $15.3 million of their 5.75% Convertible Notes into approximately 0.8 million shares of the Company’s common stock. Pursuant to the Indenture, the Company also made Conversion Make-Whole Payments of approximately 2.9 million shares of the Company’s common stock to those converting noteholders. As a result of the difference in the fair market value versus the carrying value of the 5.75% Convertible Notes that were converted during FY 2019, an aggregate $1.3 million was recorded as Other income in the Company’s consolidated statement of operations for FY 2019. The Company has elected to account for the 5.75% Convertible Notes based on the Fair Value Option accounting as outlined in ASC 825. Refer to Note 7 for further details. As of December 31, 2019, while the debt balance recorded at fair value on the Company’s consolidated balance sheet is $47.3 million, the actual outstanding principal balance of the 5.75% Convertible Notes is $94.4 million. The Company recorded interest expense of approximately $5.7 million relating to the 5.75% Convertible Notes during the FY 2019 as compared to $5.5 for FY 2018. The Company paid its first interest payment which was due on August 15, 2018 through the issuance of approximately 0.6 million shares of the Company’s common stock. 1.50% Convertible Notes On March 18, 2013, the Company completed the issuance of $400.0 million principal amount of the Company’s 1.50% Convertible Notes issued pursuant to that certain Indenture, dated as of March 15, 2013, by and between the Company and The Bank of New York Mellon Trust Company, N.A., as trustee (the “1.50% Notes Indenture”), in a private offering to certain institutional investors with net proceeds of approximately $390.6 million. During FY 2016, the Company repurchased $104.9 million par value of the 1.50% Convertible Notes with a combination of $36.7 million in cash (including interest and trading fees) and the issuance of approximately 0.7 million shares of the Company’s common stock. During FY 2017, the Company repurchased $58.9 million par value of the 1.50% Convertible Notes for $59.3 million in cash (including interest and trading fees). On February 22, 2018, the Company completed the Note Exchange. On March 15, 2018, the Company repaid the remaining outstanding principal balance of $111.2 million of the 1.50% Convertible Notes with the proceeds of the Second Delayed Draw Term Loan of $110 million plus cash on hand, and no further 1.50% Convertible Notes remained outstanding. The exchange of the 1.50% Convertible Notes for the 5.75% Convertible Notes was accounted for as a debt extinguishment in accordance with ASC 470 and resulted in the Company recording a gain on extinguishment of debt of $4.5 million, which is recorded in the Company’s consolidated statement of operations for the FY 2018. In accordance with ASC 470, as the terms of the 5.75% Convertible Notes and the Second Delayed Draw Term Loan were readily determinable and the 5.75% Convertible Notes and the Second Delayed Draw Term Loan were scheduled to mature on August 15, 2023 and August 2, 2022, respectively. For FY 2018, the Company recorded additional non-cash interest expense of approximately $1.7 million, representing the difference between the stated interest rate on the 1.50% Convertible Notes and the rate for a similar instrument that does not have a conversion feature. For FY 2018, the Company recorded cash interest expense relating to the 1.50% Convertible Notes of approximately $0.6 million. Debt Maturities As of December 31, 2019, the Company’s debt maturities on a calendar year basis are as follows: Total 2020 2021 2022 2023 2024 Thereafter Senior Secured Notes $ 338,130 $ 42,693 $ 42,693 $ 42,693 $ 42,693 $ 42,693 $ 124,665 Variable Funding Notes (1) $ 99,610 — — — — — 99,610 |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Stockholders' Equity | 9. Stockholders’ Equity 2016 Omnibus Incentive Plan On November 4, 2016, the Company’s stockholders approved the Company’s 2016 Omnibus Incentive Plan (“2016 Plan”). The 2016 Plan replaced and superseded the Company’s Amended and Restated 2009 Equity Incentive Plan. Under the 2016 Plan, all employees, directors, officers, consultants and advisors of the Company, including those of the Company’s subsidiaries, are eligible to be granted common stock, options or other stock-based awards. At inception, there were approximately 0.2 million shares of the Company’s common stock available for issuance under the 2016 Plan. The 2016 Plan was amended at the 2017 Annual Meeting of Stockholders to increase the number of shares available under the plan by 0.19 million shares. Shares Reserved for Issuance As of December 31, 2019, there were less than 0.1 million common shares available for issuance under the 2016 Plan. Amendment of Certification of Incorporation At the Special Meeting of Stockholders of the Company held on April 26, 2018, the Company’s stockholders approved an amendment to the Company’s Certificate of Incorporation to increase the number of authorized shares of its common stock, $.001 par value per share, from 150 million to 260 million. Reverse Stock Split On March 14, 2019, the Company effected a Reverse Stock Split of its common stock. No fractional shares were issued in connection with the Reverse Stock Split. Stockholders who otherwise would have been entitled to receive fractional shares of common stock had their holdings rounded up to the next whole share. Unless the context otherwise requires, all share and per share amounts in this annual report on Form 10-K have been adjusted to reflect the Reverse Stock Split. Stock Options There were no grants of stock options and no compensation expense related to stock option grants during FY 2019 or FY 2018, as all prior awards have been fully expensed. During FY 2019 and FY 2018, there were no exercised stock options. Additionally, during FY 2019, the remaining 1,500 stock options previously granted with a weighted average exercise price of $171.60 expired. Restricted stock Compensation cost for restricted stock is measured as the excess, if any, of the quoted market price of the Company’s stock at the date the common stock is issued over the amount the employee must pay to acquire the stock (which is generally zero). Compensation cost is recognized over the period between the issue date and the date any restrictions lapse, with compensation cost recognized on a straight-line basis over the requisite service period. The restrictions do not affect voting and dividend rights. The following tables summarize information about unvested restricted stock transactions: FY 2019 FY 2018 Shares Weighted Average Grant Date Fair Value Shares Weighted Average Grant Date Fair Value Non-vested, January 1, 239,077 $ 2.68 54,490 $ 76.49 Granted 329,145 1.70 319,378 2.20 Vested (241,082 ) 2.26 (109,872 ) 21.40 Forfeited/Canceled (296 ) 75.20 (24,919 ) 76.00 Non-vested, December 31, 326,844 $ 1.94 239,077 $ 2.68 The Company has awarded time-based restricted shares of common stock to certain employees. The awards have restriction periods tied to employment and vest over a maximum period of approximately 3 years. The cost of the time-based restricted stock awards, which is the fair market value on the date of grant net of estimated forfeitures, is expensed ratably over the vesting period. During FY 2019 and FY 2018, the Company awarded approximately 0.3 million and 0.3 million restricted shares, respectively, with a fair market value of approximately $0.6 million and $0.7 million, respectively. Compensation expense related to restricted stock grants for FY 2019 and FY 2018 was approximately $0.8 million and $1.3 million, respectively. An additional amount of $0.4 million of compensation expense related to restricted stock grants (inclusive of the restricted stock grants awarded as part of the long-term incentive plan discussed below) is expected to be expensed evenly over a periods of approximately twelve to twenty seven months. During FY 2019 and FY 2018, the Company repurchased shares valued at $0.2 million and $0.2 million, respectively, of its common stock in connection with net share settlement of restricted stock grants. Retention Stock On January 7, 2016, the Company awarded to certain employees a retention stock grant of approximately 1.3 million shares with a then current value of approximately $7.5 million. The awards cliff vest in three years based on the Company’s total shareholder return measured against a peer group, as described in the Company’s Form 10-K/A filed on April 29, 2016. The grant date fair value of the awards issued on January 7, 2016 was $42.50. As of December 31, 2018, pursuant to the terms of the awards and based upon the Company’s performance over the vesting period, no shares were issued upon expiration of the grant. Mr. John Haugh, the Company’s former Chief Executive Officer, was issued an employment inducement award pursuant to his employment agreement. The terms of the Employment Inducement Award are similar to the retention stock awards provided to all other employees, as described above. The grant date fair value of Mr. Haugh’s award issued on February 23, 2016 was $57.50. As of June 15, 2018, Mr. Haugh, was no longer an employee of the Company or a member of the Company’s board of directors. As of Mr. Haugh’s termination date, the retention stock awards were not earning out, and therefore, the vesting of shares associated with Mr. Haugh’s awards resulted in zero shares issuable. On October 15, 2018, the Company hired Robert C. Galvin as its Chief Executive Officer and President and he was appointed to the Company’s board of directors. Mr. Galvin was issued an Employment Inducement Award pursuant to his employment agreement. The terms of the Employment Inducement Award are similar to the retention stock awards provided to other employees as described above. The grant date fair value of Mr. Galvin’s award issued on October 15, 2018 was $0.18 and was based on the following range of assumptions for the Company and the peer group (the grant date fair value and stock price valuation assumptions in the table below have not been updated to reflect the Reverse Stock Split): October 15, 2018 Valuation Assumptions: Beginning average stock price (20 trading days prior to October 15, 2018) $0.27 - $86.49 Valuation date stock price (closing values on October 15, 2018) $0.22 - $80.27 Risk free interest rate 2.92 % Expected dividend yield used when simulating the total shareholder return 0.00 % Expected dividend yield used when simulating the Company's stock price 0.00 % Stock price volatility (based on historical stock price over the last 3.00 years) 20.88% - 108.81% Correlation coefficients -0.02 -0.48 Compensation related to the retention stock awards was an expense of approximately $0.2 million and an expense of approximately $0.3 million for FY 2019 and FY 2018, respectively. An additional amount of $0.2 million of compensation expense related to retention stock awards is expected to be expensed over a period of approximately 1.8 years. Long-Term Incentive Compensation On March 31, 2016, the Company approved a new plan for long-term incentive compensation (the “2016 LTIP”) for key employees and granted equity awards under the 2016 LTIP in the aggregate amount of approximately 0.7 million shares at a weighted average share price of $73.10 with a then current value of approximately $5.2 million. The awards granted were a combination of restricted stock units (“RSUs”) and target level performance stock units (“PSUs”). Pursuant to the terms of the awards and based upon the Company’s performance over the vesting period, less than 0.1 million were issued upon expiration of the grant on March 31, 2019. On March 7, 2017, the Company approved a new plan for long-term incentive compensation (the “2017 LTIP”) for certain employees and granted equity awards under the 2017 LTIP in the aggregate amount of approximately 0.1 million shares at a weighted average share price of $75.20 with a then current value of $6.6 million. The awards granted were a combination of RSUs and target level PSUs. The material terms of the PSUs and RSUs are substantially similar to those set forth in the 2016 LTIP. Specifically, the RSUs vest one third annually on each of March 30, 2018, March 30, 2019 and March 30, 2020. The PSUs vest based on performance metrics approved by the Compensation Committee, which, for the performance period commencing January 1, 2017 and ending on December 31, 2019, are based on the Company’s achievement of an aggregated adjusted operating income performance target as set forth in the applicable award agreements, and continued employment through December 31, 2019. In FY 2019, less than 0.1 million shares were forfeited in respect of the 2017 LTIP. The Company does not expect any of the 2017 LTIP shares to achieve target performance and vest. The weighted average remaining contractual term (in years) of the PSUs is less than one year. On March 15, 2018, the Company approved a new plan for long-term incentive compensation (the “2018 LTIP”) for certain employees which consisted of (i) equity awards in the aggregate amount of approximately 0.2 million shares at a weighted average share price of $13.80 with a then current value of $3.1 million and (ii) cash awards in the aggregate amount of approximately $3.1 million (the “Cash Grant”). The Cash Grants comprising the 2018 LTIP vest in 48 equal semi-monthly installments on the 15 th Compensation recognized related to the PSUs granted as part of the long-term incentive plans was an expense of less than $0.1 million as compared to a compensation benefit of $3.9 million in FY 2019 and FY 2018, respectively. The compensation benefit recognized during FY 2018 is as a result of the Company revising its future forecasted earnings associated with the Sears bankruptcy filing, which in accordance with ASC 718, required the Company to reverse compensation expense recognized in prior periods as the PSUs were no longer projected to earn-out on the vesting date for the 2017 LTIP, as well as the reversal of compensation expense during the year due to the departure of certain named executive officers. An additional amount of $0.2 million of compensation expense related to the PSUs granted as part of the various LTIPs is expected to be expensed over a period of less than one year. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | 10. Earnings (Loss) Per Share Basic earnings (loss) per share includes no dilution and is computed by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings (loss) per share reflect, in periods in which they have a dilutive effect, the effect of restricted stock-based awards, common shares issuable upon exercise of stock options and shares underlying convertible notes potentially issuable upon conversion. The difference between basic and diluted weighted-average common shares results from the assumption that all dilutive stock options outstanding were exercised, and all convertible notes have been converted into common stock. As of December 31, 2019, of the total potentially dilutive shares related to restricted stock-based awards and stock options, less than 0.1 million were anti-dilutive, compared to approximately 0.2 million that were anti-dilutive as of December 31, 2018. Additionally, as of December 31, 2019, of total potentially dilutive shares related to potential conversion of the Company’s 5.75% Convertible Notes, all of the shares (or approximately 33.7 million) were anti-dilutive, compared to approximately 8.1 million as of December 31, 2018. As of December 31, 2019, of the performance related restricted stock-based awards issued in connection with the Company’s named executive officers, approximately 0.3 million shares were anti-dilutive compared to none that were anti-dilutive as of December 31, 2018. A reconciliation of weighted average shares used in calculating basic and diluted earnings per share follows: FY 2019 FY 2018 Basic 10,559 6,734 Effect of assumed vesting of restricted stock — — Effect of convertible notes subject to conversion — — Diluted 10,559 6,734 As a result of the Company being in a net loss position during FY 2019 and FY 2018, dilution from the exercise of vesting of restricted stock has been excluded in the diluted earnings per share calculation. In accordance with ASC 480, the Company considers its redeemable non-controlling interest in its computation of both basic and diluted earnings per share. In addition, in accordance with ASC 260, the Company considers its 5.75% Convertible Notes in its computation of diluted earnings per share. For FY 2019 and FY 2018, adjustments to the Company’s redeemable non-controlling interest and effects of the potential conversion of the 5.75% Convertible Notes had impacts on the Company’s earnings per share calculations as follows: Year Ended Year Ended December 31, 2019 December 31, 2018 For earnings (loss) per share - basic: Net loss attributable to Iconix Brand Group, Inc. $ (111,513 ) $ (100,521 ) Accretion of redeemable non-controlling interest — — Net income (loss) attributable to Iconix Brand Group, Inc. after accretion of redeemable non- controlling interest for basic earnings (loss) per share $ (111,513 ) $ (100,521 ) For earnings (loss) per share - diluted: Net loss attributable to Iconix Brand Group, Inc. $ (111,513 ) $ (100,521 ) Effect of potential conversion of 5.75% Convertible Notes (1) — — Accretion of redeemable non-controlling interest — — Net loss attributable to Iconix Brand Group, Inc. after the effect of potential conversion of 5.75% Convertible Notes for diluted earnings (loss) per share $ (111,513 ) $ (100,521 ) Earnings (loss) per share: Basic $ (10.56 ) $ (14.93 ) Diluted $ (10.56 ) $ (14.93 ) Weighted average number of common shares outstanding: Basic 10,559 6,734 Diluted 10,559 6,734 (1) |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Contingencies | 11. Contingencies In May 2016, Supply Company, LLC, (“Supply”), a former licensee of the Ed Hardy trademark, commenced an action against the Company and its affiliate, Hardy Way, LLC, (“Hardy Way” and together with the Company, the “Iconix Defendants”) seeking damages of $50 million, including punitive damages, attorneys’ fees and costs (the “Supply Litigation”). Supply alleges that Hardy Way breached the parties’ license agreement by failing to reimburse Supply for markdown reimbursement requests that Supply received from a certain retailer. Supply also alleges that the Company is liable for fraud because it made purported misstatements about the Company’s financials and the viability of the Ed Hardy trademark in order to induce Supply to enter into the license agreement and to induce Supply to enter into a separate agreement with a certain retailer. The Iconix Defendants are vigorously defending against the claims in the Supply Litigation, and have filed a motion to dismiss the Complaint, which is awaiting Court decision. In addition, Hardy Way commenced an action against Kevin Yap (“Yap”), the principal of Supply, to enforce the terms of his guarantee of Supply’s obligations under the Supply-Hardy Way license agreement for the Ed Hardy trademark (the “Yap Litigation”). In response, Yap filed counterclaims against Hardy Way asserting two declaratory judgment claims seeking similar damages as in the Supply Litigation, including the reimbursement of Supply for losses allegedly suffered because of the markdown reimbursement requests, as well as rescission of the Supply-Hardy Way license agreement, other damages and attorneys’ fees and costs. Hardy Way is vigorously defending against the counterclaims in the Yap Litigation, and has filed a pre-discovery motion for summary judgment on its affirmative claim and to dismiss Yap’s counterclaims, which is awaiting Court decision. At this time, the Company is unable to estimate the ultimate outcomes of the Supply Litigation or the Yap Litigation. Two shareholder derivative complaints captioned James v. Cuneo et al, Docket No. 1:16-cv-02212 and Ruthazer v. Cuneo et al, Docket No. 1:16-cv-04208 have been consolidated in the United States District Court for the Southern District of New York, and three shareholder derivative complaints captioned De Filippis v. Cuneo et al. Index No. 650711/2016, Gold v. Cole et al, Index No. 53724/2016 and Rosenfeld v. Cuneo et al., Index No. 510427/2016 have been consolidated in the Supreme Court of the State of New York, New York County. The complaints name the Company as a nominal defendant and assert claims for breach of fiduciary duty, insider trading and unjust enrichment against certain of the Company's current and former directors and officers arising out of the Company's restatement of financial reports and certain employee departures. At this time, the Company is unable to estimate the ultimate outcome of these matters. As previously disclosed, on September 16, 2019, the Company entered into a Stipulation of Settlement (the “Stipulation”) with the lead plaintiff in the securities class action lawsuit pending against it in the United States District Court for the Southern District of New York, In re Iconix Brand Group, Inc., et al., Docket No. 1:15-cv-04860 (the “Class Action”). The settlement releases all claims asserted against the Company and the other named defendants party to the Stipulation in the Class Action without any liability or wrongdoing attributed to them. The proposed settlement provides for a total settlement payment of $6.0 million, inclusive of administrative fees and fees for lead plaintiff’s counsel. All of the settlement amount was paid directly by the Company’s directors and officers liability insurance provider. On January 23, 2020, the settlement received court approval, which remains subject to customary appeal rights by interested parties. As previously disclosed, the Company received a formal order of investigation from the SEC staff in December 2015 and was contacted by the U.S. Attorney’s office for the Southern District of New York (the “SDNY”) in December 2018 regarding the same matters underlying the SEC’s investigation (together, the SDNY and SEC investigations, the “Government Investigations”). The Company has cooperated fully with the SEC and SDNY regarding this matter. As previously disclosed, on December 5, 2019, the Company reached an agreement with the SEC to resolve the SEC portion of the Investigation. As part of the settlement, which was approved by the U.S. District Court for the Southern District of New York (“SDNY”), the Company agreed to pay a civil penalty of $5.5 million. On the same day, the U.S. Attorney for the SDNY unsealed charges against the Company’s former Chairman and Chief Executive Officer, as well as its former Chief Operating Officer (who subsequently plead guilty). The criminal trial of the Company’s former Chairman and Chief Executive Officer in respect of this matter is set to begin on May 11, 2020. From time to time, the Company is also made a party to litigation incurred in the normal course of business. In addition, in connection with litigation commenced against licensees for non-payment of royalties, certain licensees have asserted unsubstantiated counterclaims against the Company. While any litigation has an element of uncertainty, the Company believes that the final outcome of any of these routine matters will not, individually or in the aggregate, have a material effect on the Company’s financial position or future liquidity. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 12. Related Party Transactions The Company has entered into certain license agreements in which the core licensee is also one of our joint venture partners. In the case of Sports Direct International plc (“Sports Direct”), the Company maintains license agreements with Sports Direct, but in addition, during FY 2018, the Company entered into a cooperation agreement with Sports Direct that allowed Sports Direct to appoint two members to the Company’s Board of Directors. The cooperation agreement expired pursuant to its terms during the first quarter of 2019. As of December 31, 2019 and December 31, 2018, the Company recognized the following royalty revenue amounts: FY 2019 FY 2018 Joint Venture Partner Global Brands Group Asia Limited (1) $ — $ 19,544 MHMC (2) 7 2,927 Albion Equity Partners LLC / GL Damek 2,350 2,644 Rise Partners, LLC / Top On International Group Limited — 977 Sports Direct International plc 1,188 915 Anthony L&S — 623 M.G.S. Sports Trading Limited 440 610 Pac Brands USA, Inc. 363 246 $ 4,348 $ 28,486 (1) Prior to 2019, Global Brand Group Asia Limited maintained the Buffalo and Zoo York license agreements. However, in October 2018, Centric Brands Inc. acquired a significant portion of Global Brands Group Asia Limited’s North American licensing business. The Company’s license agreement for the Buffalo and Zoo York brands in the United States are now maintained with Centric Brands Inc. which is not a related party or affiliated entity to the Company . (2) As detailed in Note 4, as of July 2019, MHMC is no longer a related party . |
Operating Leases
Operating Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Operating Leases | 13. Operating Leases The Company is a lessee in several noncancelable operating leases, primarily for its corporate office, additional office space and certain office equipment. Beginning January 1, 2019, the Company accounts for leases in accordance with ASC Topic 842, Leases For operating leases, the ROU asset is initially measured at the initial measurement amount of the lease liability, plus initial direct costs, plus (minus) any prepaid (accrued) lease payments, less the lease incentive received. For operating leases, the ROU asset is subsequently measured at cost, less accumulated amortization, less any accumulated impairment losses. Lease expense is recognized on a straight-line basis over the lease term. Variable lease payments associated with the Company’s leases are recognized in the period in which the obligation for those payments is incurred. Variable lease payments are presented as operating expense in the Company’s consolidated statement of operations in the same line item as the expense arising from fixed lease payments. Operating lease ROU assets are presented as Right-of-use-assets within Other assets on the consolidated balance sheet. The current portion of operating lease liabilities is included in other liabilities-current and the long-term portion is included in Other liabilities on the consolidated balance sheet. The Company has elected not to recognize ROU assets and lease liabilities for short-term leases that have a lease term of 12 months or less. The Company recognizes the lease payments associated with its short-term leases of office space and office equipment as an expense on a straight-line basis over the lease term. The Company’s leases may include non-lease components such as common area maintenance. The Company has elected the practical expedient to account for the lease and non-lease components as a single lease component, therefore, for all of our operating leases, the lease payments used to measure the lease liability include all of the fixed consideration in the contract. The Company’s operating leases expire over the next five years. The Company’s operating leases may contain renewal options however, because the Company is not reasonably certain to exercise these renewal options, the options are not included in the lease term and associated potential option payments are excluded from lease payments. Payments due under the lease contracts include fixed payments and in certain of the Company’s leases, variable payments. Variable lease payments consist of the Company’s proportionate share of the building’s property taxes, insurance, electricity and other common area maintenance costs. For the twelve months ended December 31, components of lease cost were as follows: FY 2019 Operating lease cost $ 2,215 Short-term lease cost 537 Variable lease cost 396 $ 3,148 For FY 2018, minimum rental payments under operating leases are recognized on a straight-line basis over the term of the lease including any periods of free rent. Rental expense for operating leases during FY 2018 was approximately $4.0 million As of December 31, 2019, the operating lease ROU assets and operating lease liabilities were $6.3 million and $8.8 million, respectively. For FY 2019, cash paid for lease liabilities for operating leases was $2.6 million. Additionally, for FY 2019, the Company recorded $0.1 million of ROU assets and $0.1 million of operating lease obligations for new leases. There were no ROU assets exchanged and no operating lease obligations assumed during the year. In FY 2019, there were no reductions to ROU assets resulting from reductions to lease obligations. In FY 2019, the Company recorded a $0.5 million impairment charge to its ROU assets and a $1.3 million impairment to Leasehold Improvements related to the partial sublet of its New York office space. Because we generally do not have access to the rate implicit in the lease, the Company utilizes our incremental borrowing rate as the discount rate. As of December 31, 2019, the weighted average remaining operating lease term is 4.17 years and the weighted average discount rate for the operating leases is 8.61%. Maturities of lease liabilities under non-cancellable leases as of December 31, 2019 are as follows: Operating Leases 2020 $ 2,610 2021 2,461 2022 2,168 2023 2,109 Thereafter 1,079 Total undiscounted lease payments $ 10,427 Less: Imputed interest 1,594 Total lease liabilities $ 8,833 Future net minimum lease payments under non-cancelable operating lease agreements as of December 31, 2018 under the previous lease accounting standard were as follows: Operating Leases 2019 $ 2,650 2020 2,726 2021 2,583 2022 2,191 2023 2,109 Thereafter 1,078 Totals $ 13,337 |
Benefit and Incentive Compensat
Benefit and Incentive Compensation Plans and Other | 12 Months Ended |
Dec. 31, 2019 | |
Postemployment Benefits [Abstract] | |
Benefit and Incentive Compensation Plans and Other | 14. Benefit and Incentive Compensation Plans and Other The Company sponsors a 401(k) Savings Plan (the “Savings Plan”) that covers all eligible full-time employees. Participants may elect to make pretax contributions subject to applicable limits. At its discretion, the Company may contribute additional amounts to the Savings Plan. During FY 2019 and FY 2018, the Company made contributions to the Savings Plan of approximately $0.2million and $0.1 million, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 15. Income Taxes The Company accounts for income taxes in accordance with ASC Topic 740. Under ASC Topic 740, deferred tax assets and liabilities are determined based on differences between the financial reporting and tax basis of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. A valuation allowance is established when necessary to reduce deferred tax assets to the amount expected to be realized. In determining the need for a valuation allowance, management reviews both positive and negative evidence pursuant to the requirements of ASC Topic 740, including current and historical results of operations, future income projections and the overall prospects of the Company’s business. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some or all the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent on the generation of future taxable income in the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. Based on these items and the cumulative pretax losses (primarily resulting from asset impairment expenses), management has determined that enough uncertainty exists relative to the realization of the deferred income tax asset balances to warrant the application of a full valuation allowance for all taxing jurisdictions as of December 31, 2019 . In addition, the Company has deferred tax liabilities related to indefinite lived intangibles on the balance sheet in an amount of approximately $4.5 million, which cannot be considered to be a source of taxable income to offset deferred tax assets. At December 31, 2019, the Company has approximately $172.7 million in federal net operating loss carryforwards (NOLs), approximately $19.0 million of which will expire in FY 2037 if unused. The Company also has foreign tax credit carryforwards of approximately $5.3 million, which will expire in 2023 and 2024. The Company also has approximately $36.5 million apportioned state and local NOLs that will begin to expire in 2034 if not used. Our use of our NOL carryforwards are limited under Section 382 of the Internal Revenue Code, as we have had a change in ownership of more than 50% of our capital stock over a three-year period as measured under Section 382 of the Internal Revenue Code. These complex changes of ownership rules generally focus on ownership changes involving shareholders owning directly or indirectly 5% or more of our stock, including certain public “groups” of shareholders as set forth under Section 382 of the Internal Revenue Code, including those arising from new stock issuances and other equity transactions. The Company’s consolidated effective tax rate was -8.6% and -7.9% for the year ended December 31, 2019 and December 31, 2018, respectively. The effective tax rate for the FY 2019 remains consistent as compared to the FY 2018 primarily due to foreign tax withholding tax incurred on foreign sourced revenue, which are remains consistent year over year. Management believes that an adequate provision has been made for any adjustments that may result from tax examinations; however, the outcome of tax audits cannot be predicted with certainty. If any issues addressed in the Company's tax audits are resolved in a manner not consistent with management's expectations, the Company could be required to adjust its provision for income tax in the period such resolution occurs. Pre-tax book loss for FY 2019 and FY 2018 were as follows: FY 2019 FY 2018 Domestic $ (129,740 ) $ (119,031 ) Foreign 35,907 35,900 Total pre-tax loss $ (93,833 ) $ (83,131 ) The income tax provision (benefit) for federal, and state and local income taxes in the consolidated statement of operations consists of the following: Year Ended December 31, 2019 Year Ended December 31, 2018 Current: Federal $ (1,012 ) $ (609 ) State and local (10 ) (61 ) Foreign 9,185 9,212 Total current $ 8,163 $ 8,542 Deferred: Federal 23 (4,950 ) State and local (103 ) (1,967 ) Foreign — 4,913 Total deferred (80 ) (2,004 ) Total Provision $ 8,083 $ 6,538 As of December 31, 2019, the Company is not indefinitely reinvested in any foreign earnings. The significant components of net deferred tax assets and liabilities of the Company consist of the following: December 31, 2019 2018 State net operating loss carryforwards $ 4,064 $ 2,498 U.S. Federal net operating loss carryforwards 36,306 15,864 Receivable reserves 280 4,827 Interest expense limitation 16,779 5,975 Intangibles 96,177 107,035 Equity compensation 1,838 1,764 Foreign Tax Credit 5,252 5,252 Other 9,293 8,907 Total deferred tax assets 169,989 152,122 Valuation allowance (143,368 ) (115,483 ) Net deferred tax assets $ 26,621 $ 36,639 Depreciation (284 ) (369 ) Convertible notes (6,451 ) (10,519 ) Investment in joint ventures (24,350 ) (30,317 ) Total deferred tax liabilities (31,085 ) (41,205 ) Total net deferred tax liabilities $ (4,464 ) $ (4,566 ) Balance Sheet detail on total net deferred tax assets (liabilities): Non-current portion of net deferred tax assets $ — $ — Non-current portion of net deferred tax liabilities $ (4,464 ) $ (4,566 ) The following is a rate reconciliation between the amount of income tax provision (benefit) at the Federal rate of 21% and provision (benefit) from taxes on loss before income taxes for FY 2019 and FY 2018, respectively: Year ended December, 31 2019 2018 Income tax benefit computed at the federal rate of 21% $ (19,705 ) $ (17,457 ) Increase (reduction) in income taxes resulting from: State and local income taxes (benefit), net of federal income tax (115 ) (1,998 ) Non-controlling interest (2,552 ) (2,720 ) Unrecognized tax benefits — (31 ) Valuation allowance 21,756 22,752 Interest on income tax receivable (1,253 ) — Non-deductible executive compensation 150 868 Foreign Earnings (rate differential) 8,300 13,405 US Tax Reform / rate reduction 23 (5,562 ) Other, net 1,479 (2,719 ) Total $ 8,083 $ 6,538 With the exception of the Buffalo brand joint venture, Diamond Icon Joint Venture and Iconix Middle East joint venture, the Company is not responsible for the income taxes related to the non-controlling interest’s share of the joint venture’s earnings. Therefore, the tax liability associated with the non-controlling interest share of the joint venture’s earnings is not reported in the Company’s income tax expense, despite the joint venture’s entire income being consolidated in the Company’s reported income before income tax expense. As such, the joint venture’s earnings have the effect of lowering our effective tax rate. This effect is more pronounced in periods in which joint venture earnings are higher relative to our other earnings. Since the Buffalo brand joint venture is a taxable entity in Canada, and the Diamond Icon joint venture and Iconix Middle East joint venture are taxable entities in the United Kingdom, the Company is required to report its tax liability, including taxes attributable to the non-controlling interest, in its statement of operations. All other consolidated joint ventures are partnerships and treated as pass-through entities not subject to taxation in their local tax jurisdiction, and therefore the Company includes only the tax attributable to its proportionate share of income from the joint venture in income tax expense. The Company files income tax returns in the U.S. federal and various state and local jurisdictions. For federal income tax purposes, during 2019, the Internal Revenue Service concluded an audit of the 2014 federal tax return, which resulted in a tax benefit of $1.3 million related to interest on a refund claim which was issued upon conclusion of the examination. During 2019, the State of California concluded its audit covering 2013 through 2014. There was no tax charge related to this examination. During 2018, the Company concluded its New York State audit covering 2011 through 2014. There was no tax charge related to this examination during the year as the $0.5 million due was recorded in prior years. The Company also files returns in numerous foreign jurisdictions that have varied years remaining open for examination, but generally the statute of limitations is three to four years from when the return is filed. At December 31, 2019 and December 31, 2018, the total unrecognized tax benefit was approximately $0 million and $0 million, respectively. A reconciliation of the beginning and ending amount of gross unrecognized tax benefits, excluding interest and penalties, is as follows: 2019 2018 Uncertain tax positions at January 1 $ — $ 354 Additions for current year tax positions — — Additions for prior year tax positions — — Reductions for prior year tax positions — (15 ) Settlements — (339 ) Uncertain tax positions at December 31 $ — $ - Approximately $0 million of unrecognized tax benefits at December 31, 2019 would affect the Company's effective tax rate if recognized. The Company believes it is reasonably possible that there will be no reduction of unrecognized tax benefits in the next 12 months as a result of settlements with taxing authorities and or statute of limitations expirations. The Company is continuing its practice of recognizing interest and penalties to income tax matters in income tax expense. There were no interest or penalties accrued related to uncertain tax positions in any of these periods. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income | 16. Accumulated Other Comprehensive Income The following table sets forth the activity in accumulated other comprehensive income for the years ended December 31, 2019 and December 31, 2018: Foreign currency translation adjustments Unrealized losses of available for sale securities Total Balance at December 31, 2018 $ (53,068 ) $ — $ (53,068 ) Foreign currency translation adjustment (1,575 ) — (1,575 ) Current period other comprehensive income (1,575 ) — (1,575 ) Balance at December 31, 2019 $ (54,643 ) $ — $ (54,643 ) Foreign currency translation adjustments Unrealized losses of available for sale securities Total Balance at December 31, 2017 $ (48,103 ) $ (3,177 ) $ (51,280 ) Foreign currency translation adjustment (4,965 ) — (4,965 ) Cumulative adjustment for adoption of ASU 2016-01 3,177 3,177 Current period other comprehensive income (4,965 ) 3,177 (1,788 ) Balance at December 31, 2018 $ (53,068 ) $ — $ (53,068 ) |
Segment and Geographic Data
Segment and Geographic Data | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment and Geographic Data | 17. Segment and Geographic Data The Company identifies its operating segments for which separate financial information is available and for which segment results are evaluated regularly by the Chief Executive Officer, the Company’s Chief Operating Decision Maker (“CODM”), in deciding how to allocate resources and in assessing performance. The Company discloses the following operating segments: women’s, men’s, home, and international. Since the Company does not track, manage and analyze its assets by segments, no disclosure of segmented assets is reported. The reportable operating segments described below represent the Company’s activities for which separate financial information is available and which is utilized on a regular basis by the Company’s CODM to evaluate performance and allocate resources. In identifying the Company’s operating segments, the Company considers its management structure and the economic characteristics, customers, sales growth potential and long-term profitability of its operating segments. As such, the Company configured its operations into the following four operating segments: • Women’s segment – consists of the Company’s women’s brands in the United States. • Men’s segment – consists of the Company’s men’s brands in the United States. • Home segment – consists of the Company’s home brands in the United States. • International segment – consists of the Company’s men’s, women’s and home brands in international markets. Items not allocated to any segment are allocated to the Corporate level. Corporate, for segment reporting purposes, includes compensation, benefits and occupancy costs for corporate employees, as well as other corporate-related expenses such as: audit, legal, and information technology used in managing our business. The Company’s Chief Executive Officer has been identified as the CODM. The Company’s measure of segment profitability is licensing revenue and operating income. The accounting policies of the Company’s operating segments are the same as those described in Note 1 – Summary of Significant Accounting Policies The geographic regions consist of the United States and Other (which principally represent Latin America and Europe). Revenues attributable to each region are based on the location in which licensees are located and where they principally do business. Refer to Note 2 for further details. Reportable data for the Company’s operating segments were as follows: FY 2019 FY 2018 Licensing revenue: Women’s $ 37,491 $ 57,401 Men’s 36,793 39,073 Home 14,753 24,568 International 59,947 66,647 $ 148,984 $ 187,689 Operating income (loss): Women’s $ (961 ) $ (128,050 ) Men’s 24,878 11,754 Home (4,932 ) 17,221 International 23,487 27,447 Corporate (73,252 ) (47,409 ) $ (30,780 ) $ (119,037 ) |
Other Assets- Current and Long-
Other Assets- Current and Long-Term | 12 Months Ended |
Dec. 31, 2019 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Other Assets- Current and Long -Term | 18. Other Assets- Current and Long-Term Other Assets – Current December 31, 2019 December 31, 2018 Other assets- current consisted of the following: US federal tax receivable $ 1,115 $ 16,757 Insurance receivable (1) 15,000 — Prepaid expenses 1,207 2,451 Prepaid taxes 1,119 1,755 Prepaid advertising 275 1,100 Prepaid insurance 2,042 1,446 Other current assets 596 645 Due from related parties 86 3,903 $ 21,440 $ 28,057 (1) As of December 31, 2019, the Company recorded an asset of approximately $15.0 million related to insurance claims of which $3.8 million was received in Q1 2020 and $6.3 million will be released from escrow and paid to claimants in 2020. The Company believes the remainder is probable of recovery from various insurance carriers. These claims pertain to expenses incurred related to certain litigation claims against the Company and related expenses that are discussed throughout Note 11. Other Assets – Long Term December 31, December 31, 2019 2018 Other noncurrent assets consisted of the following: Prepaid interest 4,868 5,496 Deposits 707 483 Due from related parties 1,205 — $ 6,780 $ 5,979 |
Other Liabilities - Current
Other Liabilities - Current | 12 Months Ended |
Dec. 31, 2019 | |
Other Liabilities Disclosure [Abstract] | |
Other Liabilities - Current | 19. Other Liabilities – Current Other current liabilities of $13.8 million as of December 31, 2019 related to amounts due to certain joint ventures that are not consolidated with the Company, as well as the current portion of operating lease liabilities as compared to other current liabilities of $9.8 million as of December 31, 2018, which related to amounts due to certain joint ventures that are not consolidated with the Company. |
Foreign Currency Translation
Foreign Currency Translation | 12 Months Ended |
Dec. 31, 2019 | |
Foreign Currency [Abstract] | |
Foreign Currency Translation | 20. Foreign Currency Translation The functional currency of Iconix Luxembourg and Red Diamond Holdings, which are wholly owned subsidiaries of the Company, located in Luxembourg, is the Euro. However, the companies have certain dollar denominated assets, in particular cash and notes receivable, that are maintained in U.S. Dollars, which are required to be revalued each quarter. Due to fluctuations in currency in FY 2019 and FY 2018, the Company recorded a $0.9 million currency translation loss and a $1.2 million currency translation loss, respectively, that is included in the consolidated statements of operations. Comprehensive income includes certain gains and losses that, under U.S. GAAP, are excluded from net income as such amounts are recorded directly as an adjustment to stockholders’ equity. Our comprehensive income is primarily comprised of net income and foreign currency translation gain or loss. During FY 2019 and FY 2018, the Company recognized as a component of our comprehensive income (loss), a foreign currency translation loss of $1.6 million and a foreign currency translation loss of $5.0 million, respectively, due to changes in foreign exchange rates. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | 21. Subsequent Events The legal final maturity date of the Securitization Notes is in January of 2043. As the Company did not repay or refinance the Securitization Notes prior to January 2020 (the “anticipated repayment date”), additional interest will accrue on amounts outstanding under the Securitization Notes. This additional interest is not required to be paid until 2043 and does not compound annually. Beginning in January 2020, the Company will not be required to make $42.7 million of contractual principal payments referred to in Note 8 of the consolidated financial statements. Future principal payments will be formulaically based on a percentage of receipts of royalty revenue. In March 2020, the World Health Organization recognized the novel strain of coronavirus, COVID-19, as a pandemic. This coronavirus outbreak has severely restricted the level of economic activity around the world. In response to this coronavirus outbreak, the governments of many countries, states, cities and other geographic regions have taken preventative or protective actions, such as imposing restrictions on travel and business operations and advising or requiring individuals to limit or forego their time outside of their homes. Temporary closures of businesses have been ordered and numerous other businesses have temporarily closed voluntarily. The Company cannot reasonably estimate the negative impact to the Company's business, revenues, financial condition or results of operations. On March 30, 2020, the Company entered into the fifth amendment and waiver to the Senior Secured Term Loan (the “Fifth Amendment”). The Fifth Amendment, among other things, (i) waived an event of default under the Senior Secured Term Loan due to the Company’s receipt of a going concern qualified audit opinion and (ii) modified the asset sale prepayment obligation to obligate the Company to pay 75% of the net proceeds from one or more asset sales in any fiscal year to the extent the aggregate amount of asset sale net proceeds exceed $5.0 million. |
Other Matters
Other Matters | 12 Months Ended |
Dec. 31, 2019 | |
Other Matters Disclosure [Abstract] | |
Other Matters | 22. Other Matters During FY 2019 and FY 2018, the Company included in its selling, general and administrative expenses approximately $19.6 million and $9.0 million, respectively, of charges for professional fees associated with the continuing correspondence with the Staff of the SEC, the SEC investigation and the class action and derivative litigations. As of June 15, 2018, Mr. Haugh, the Company’s former Chief Executive Officer and President, was no longer an employee of the Company or member of the Company’s board of directors. Included in the charges related to professional fees discussed above is $2.1 million recorded in FY 2018 associated with his severance and other benefits. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries, and, in accordance with U.S. GAAP and accounting for variable interest entities (where the Company is the primary beneficiary) and majority owned subsidiaries, the Company consolidates fourteen joint ventures (Hardy Way, Icon Modern Amusement, Alberta ULC, Iconix Europe, Hydraulic IP Holdings, US PONY Holdings, Diamond Icon, Iconix Israel, Iconix Middle East, Umbro China, Danskin China, Starter China, Lee Cooper China and Iconix Australia; see Note 4 for explanation). All significant intercompany transactions and balances have been eliminated in consolidation. These consolidated financial statements are prepared on a going concern basis that contemplates the realization of cash flows from assets and discharge of liabilities, in each case, in the ordinary course of business consistent with the Company’s prior periods. In accordance with Accounting Standards Codification (“ASC”) 810—Consolidation (“ASC 810”), the Company evaluates the following criteria to determine the accounting for its joint ventures: 1) consideration of whether the joint venture is a variable interest entity which includes reviewing the corporate structure of the joint venture, the voting rights, and the contributions of the Company and the joint venture partner to the joint venture, 2) if the joint venture is a VIE, whether or not the Company is the primary beneficiary, a determination based upon a variety of factors, including: i) the presence of installment payments, which constitutes a de facto agency relationship between the Company and the joint venture partner, and ii) an evaluation of whether the Company or the joint venture partner is more closely associated with the joint venture. If the Company determines that the entity is a variable interest entity and the Company is the primary beneficiary, then the joint venture is consolidated. For those entities that are not considered variable interest entities, or are considered variable interest entities but the Company is not the primary beneficiary, the Company uses the equity method as set forth in ASC 323—Investments (“ASC 323”), to account for those investments and joint ventures which are not required to be consolidated under US GAAP. Refer to Note 4 for further details. |
Liquidity | Liquidity These consolidated financial statements are prepared on a going concern basis, which contemplates the realization of assets and liquidation of liabilities, in each case, in the ordinary course of business consistent with the Company’s prior periods. The Company has experienced substantial and recurring losses from operations, which losses have caused an accumulated deficit of $429.1 million as of December 31, 2019. Net losses incurred for the years ended December 31, 2019 and 2018 amounted to approximately $(101.9) million and $(89.7) million, respectively. While the Company had positive cash flows from operations in recent periods, the potential adverse impact of the novel coronavirus on its operating results, liquidity and financial condition raises substantial doubt the Company can continue as an ongoing business for the next twelve months. In view of these matters, continuation as a going concern is dependent upon the continued operations of the Company, which, in turn, is dependent upon the Company’s ability to meet its financial requirements, raise additional capital, and successfully carry out its future operations. The financial statements do not include any adjustments to the amount and classification of assets and liabilities that may be necessary, should the Company not continue as a going concern. |
Reverse Stock Split | Reverse Stock Split On March 14, 2019, the Company effected a 1-for-10 reverse stock split (the “Reverse Stock Split”) of its common stock. Unless the context otherwise requires, all share and per share amounts in this annual report on Form 10-K have been adjusted to reflect the Reverse Stock Split. |
Business Combinations, Joint Ventures and Investments | Business Combinations, Joint Ventures and Investments The purchase method of accounting requires that the total purchase price of an acquisition be allocated to the assets acquired and liabilities assumed based on their fair values on the date of the business acquisition. The results of operations from the acquired businesses are included in the accompanying consolidated statements of operations from the acquisition date. Any excess of the purchase price over the estimated fair values of the net assets acquired is recorded as goodwill. Since January 1, 2018, the Company established the following joint ventures to develop and market the Company’s brands in specific markets: Date Created Investment / Joint Venture Iconix’s Investment March 2018 Starter China 100% (1) June 2018 Lee Cooper China 100% (2) (1) In March 2018, the Company formed the Starter China Limited as a wholly owned subsidiary to hold the Starter trademarks and related assets in respect of the Greater China territory. The Company entered into an agreement with Photosynthesis Holdings, Co. Ltd. (“PHL”) who will purchase no less than a 50% interest and up to a total of 60% interest in Starter China Limited. The purchase of the equity interest is expected to occur over a three-year period commencing on January 16, 2022. Refer to Note 4 for further details. As of December 31, 2019, the Company’s ownership interest in Starter China Limited was 100%. (2) In June 2018, the Company formed the Lee Cooper China Limited as a wholly-owned subsidiary to hold the Lee Cooper trademarks and related assets in respect of the Greater China territory. The Company entered into an agreement with POS Lee Cooper HK Co. Ltd. (“PLC”) who will purchase no less than a 50% interest and up to a total of 60% interest in Lee Cooper China Limited. The purchase of the equity interest is expected to occur over a two-year period commencing on January 15, 2024. Refer to Note 4 for further details. As of December 31, 2019, the Company’s ownership interest in Lee Cooper China Limited was 100%. For further information on the Company’s accounting for joint ventures and investments, see Note 4. |
Use of Estimates | Use of Estimates The preparation of the consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The Company reviews all significant estimates affecting the financial statements on a recurring basis and records the effect of any adjustments when necessary. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consist of actual cash as well as cash equivalents, defined as short-term, highly liquid financial instruments with insignificant interest rate risk that are readily convertible to cash and have maturities of three months or less from the date of purchase. In addition, as of December 31, 2019, approximately $19.0 million, or 27 %, of our total cash (including restricted cash) was held in foreign subsidiaries. During the second fiscal quarter of 2018, the Company elected to treat its Luxembourg top tier subsidiary (“Luxco”) as a disregarded entity for US tax purposes. All the operations under Luxco were previously treated as disregarded for US tax purposes. As of the election date, all the foreign operations under Luxco will be treated as a branch for US tax purposes and subject to US taxation. As such, the Company will no longer have any earnings in foreign subsidiaries that are not currently subject to taxation for US purposes. Before the election, the Company indefinitely reinvested all earnings of its foreign subsidiaries. |
Restricted Cash | Restricted Cash Restricted cash consists of actual cash deposits held in accounts primarily for debt service, as well as cash equivalents, defined as short-term, highly liquid financial instruments with insignificant interest rate risk that are readily convertible to cash and have maturities of three months or less from the date of purchase, the restrictions on all of which lapse every three months or less. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments which potentially subject the Company to concentration of credit risk consist principally of short-term cash investments and accounts receivable. The Company places its cash in investment-grade, short-term instruments with high quality financial institutions. The Company performs ongoing credit evaluations of its customers’ financial condition and, generally, requires no collateral from its customers. The allowance for non-collection of accounts receivable is based upon the expected collectability of all accounts receivable. Two customers each accounted for 12 % and 11% respectively of the Company’s total revenue for the year ended December 31, 2019 (“FY 2019”) as compared to one customer accounting for 16% of the Company’s total revenue for the year ended December 31, 2018 (“FY 2018”). |
Accounts Receivable | Accounts Receivable Accounts receivable are reported at amounts the Company expects to be collected, net of provision for doubtful accounts, based on the Company’s ongoing discussions with its licensees, and its evaluation of each licensee’s payment history and account aging. As of December 31, 2019 and 2018, the Company’s provision for doubtful accounts was $14.3 million and $20.1 million, respectively. One customer accounted for 16% of the Company’s accounts receivable as of December 31, 2019 as compared with one customer accounting for 12% of the Company’s accounts receivable as of December 31, 2018. |
Derivatives | Derivatives The Company’s objective for holding any derivative financial instruments is to manage interest rate risks, and in the case of our 1.50% Convertible Notes, dilution risk. The Company does not use financial instruments for trading or other speculative purposes. From time to time the Company uses derivative financial instruments to hedge the variability of anticipated cash flows of a forecasted transaction (a “cash flow hedge”). The Company had no such derivative instruments in FY 2019 or FY 2018. |
Restricted Stock | Restricted Stock Compensation cost for restricted stock is measured using the quoted market price of the Company’s common stock at the date the common stock is granted. For restricted stock where restrictions lapse with the passage of time (“time-based restricted stock”), compensation cost is recognized over the period between the issue date and the date that restrictions lapse. Time-based restricted stock is included in total common shares outstanding upon the lapse of any restrictions. Time-based restricted stock is included in total diluted shares outstanding which is calculated utilizing the treasury stock method. For restricted stock where restrictions are based on performance measures (“performance-based restricted stock”), restrictions lapse when those performance measures have been deemed earned. Performance-based restricted stock is included in total common shares outstanding upon the lapse of any restrictions. Performance-based restricted stock is included in total diluted shares outstanding when the performance measures have been deemed earned but not issued. For restricted stock, which is measured based on market conditions, the Company values the stock utilizing a Monte Carlo simulation factoring key assumptions such as the stock price at the beginning and end of the period, risk free interest rate, expected dividend yield when simulating total shareholder return, expected dividend yield when simulating the Company’s stock price, stock price volatility and correlation coefficients. Restricted stock based on market conditions is included in total common shares outstanding upon the achievement of the performance metrics. Restricted stock based on market conditions is included in total diluted shares outstanding when the performance metrics have been deemed earned but not issued. |
Treasury Stock | Treasury Stock Treasury stock is recorded at acquisition cost. Gains and losses on disposition are recorded as increases or decreases to additional paid-in capital with losses in excess of previously recorded gains charged directly to retained earnings. |
Deferred Financing Costs | Deferred Financing Costs The Company incurred costs (primarily professional fees and placement agent fees) in connection with borrowings under senior secured notes, the Senior Secured Term Loan and the 2016 Senior Secured Term Loan. These costs have been deferred and are being amortized using the effective interest method over the life of the related debt. |
Property, Equipment, Depreciation and Amortization | Property, Equipment, Depreciation and Amortization Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are determined by the straight-line method over the estimated useful lives of the respective assets ranging from three to seven years. Leasehold improvements are amortized by the straight-line method over the initial term of the related lease or estimated useful life, whichever is less. |
Operating Leases | Operating Leases We determine if an arrangement contains a lease at inception. An arrangement contains a lease if it implicitly or explicitly identifies an asset to be used and conveys the right to control the use of the identified asset in exchange for consideration. As a lessee, we include operating leases in Right-of-use (“ROU”) -assets within non-current assets, Other liabilities – Current, and Other liabilities in our consolidated balance sheet. ROU 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. Operating lease ROU assets and liabilities are recognized upon commencement of the lease based on the present value of the lease payments over the lease term. As most of our leases do not provide an implicit interest rate, we generally use our incremental borrowing rate based on the estimated rate of interest for fully amortizing borrowings over a similar term of the lease payments at commencement date to determine the present value of lease payments. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Expenses associated with operating leases are included in “Selling, general and administrative” within our Consolidated Statement of operations. Leases with a lease term of 12 months or less are not capitalized |
Long-Lived Assets | Long-Lived Assets If circumstances mandate, the Company evaluates the recoverability of its long-lived assets, other than goodwill and other indefinite life intangibles (discussed below), by comparing estimated future undiscounted cash flows with the assets’ carrying value to determine whether a write-down to market value, based on discounted cash flow, is necessary. Assumptions used in our fair value estimates are as follow: (i) discount rates; (ii) royalty rates; (iii) projected average revenue growth rates; and (iv) projected long-term growth rates. The testing also factors in economic conditions and expectations of management and may change in the future based on period-specific facts and circumstances. During FY 2019, the Company recorded an impairment charge in the amount of $17.0 million based on the estimated value that would be realized on the disposition of the Company’s equity interest in Marcy Media Holdings, LLC, and an $9.6 million (inclusive of $2.6 million of write off of advances made to the entity) impairment to its investment in MG Icon based on the poor performance. In |
Goodwill and Trademarks | Goodwill and Trademarks Goodwill represents the excess of purchase price over the fair value of net assets acquired in business combinations accounted for under the purchase method of accounting. On an annual basis and as needed, the Company tests goodwill and indefinite life trademarks for impairment utilizing discounted cash flow models. Other intangibles with determinable lives, including certain trademarks, license agreements and non-compete agreements, are evaluated for the possibility of impairment when certain indicators are present, and are otherwise amortized on a straight-line basis over the estimated useful lives of the assets (currently ranging from 1 to 15 years). Assumptions used in our fair value estimates are as follow: (i) discount rates; (ii) royalty rates; (iii) projected average revenue growth rates; and (iv) projected long-term growth rates. The testing also factors in economic conditions and expectations of management and may change in the future based on period-specific facts and circumstances. In the second quarter of 2018, the Company recognized a non-cash impairment charge for goodwill of $37.8 million and none for FY 2019. In the FY 2019 and FY 2018, the Company recognized non-cash impairment charge for trademarks of $65.6 million and $136.4 million, respectively. Refer to Note 3 for further details. |
Non-controlling Interests / Redeemable Non-controlling Interests | Non-controlling Interests / Redeemable Non-controlling Interests Certain of the Company’s consolidated joint ventures have put options which, if exercised by the Company’s joint venture partner, would require the Company to purchase all or a portion of the joint venture partner’s equity interest in the joint venture. The Company has determined that these put options are not derivatives under the guidelines prescribed in Accounting Standards Codification (“ASC”) 815. As such, and in accordance with ASC 480-10-S99, as the potential exercise of the put options is outside the control of the Company, the Company has recorded the portion of the non-controlling interest’s equity that may be put to the Company in mezzanine equity in the Company’s consolidated balance sheets as “redeemable non-controlling interest”. The initial value of the redeemable non-controlling interest represents the fair value of the put option at inception. This amount recorded at inception is accreted, over a period determined by when the put option becomes exercisable, to what the Company would be obligated to pay to the non-controlling interest holder if the put option was exercised. This accretion is recorded as a credit to redeemable non-controlling interest and a debit to retained earnings resulting in an impact to the consolidated balance sheet only. For each reporting period, the Company revisits the estimates used to determine the redemption value of the put option when it becomes exercisable and may adjust the remaining put option value and associated accretion accordingly through redeemable non-controlling interest and retained earnings, as necessary. The terms of each of the outstanding put options are included in the individual discussions of each joint venture, as applicable. For the Company’s consolidated joint ventures that do not have put options, the non-controlling interest is recorded within equity on the Company’s consolidated balance sheet. The Company may enter into joint venture agreements with joint venture partners in which the Company allows the joint venture partner to pay a portion of the purchase price in cash at the time of the formation of the joint venture with the remaining cash consideration paid over a specified period of time following the closing of such transaction. The Company records the amounts due from such joint venture partners as (a) a reduction of Non-controlling Interests, net of installment payments, or (b) if installment payments result from the issuance of shares classified as mezzanine equity, as a reduction in Redeemable Non-controlling Interests, net of installment payments (i.e. mezzanine equity), as applicable, in the Company’s consolidated balance sheet in accordance with ASC 505-10-45, “Classification of a Receivable from a Shareholder.” The Company accretes the present value discount on these installment payments through interest income on its consolidated statements of operations. |
Revenue Recognition | Revenue Recognition The Company enters into various license agreements that provide revenues based on minimum royalties and advertising/ marketing fees and additional revenues based on a percentage of defined sales. Minimum royalty and advertising/ marketing revenue is recognized on a straight-line basis over the full contract term. Minimum royalties that escalate on an annual basis over the contract term are recognized on a straight-line basis over the full contract term. Royalties exceeding the defined minimum amounts in a specific contract year (sales-based royalties), as defined in each license agreement, are recognized only in the subsequent periods to when the minimum guarantee for the contract year has been achieved and when the later of the following events occur: (i) the subsequent sale occurs, or (ii) the performance obligation to which some or all of the sales-based royalty has been allocated has been satisfied (or partially satisfied). |
Foreign Currency | Foreign Currency The Company’s consolidated joint ventures’ functional currency is U.S. dollars. The functional currencies of the Company’s international subsidiaries are the local currencies of the countries in which the subsidiaries are located. Foreign currency denominated assets and liabilities are translated into U.S. dollars using the exchange rates in effect at the consolidated balance sheet date. Results of operations and cash flows are translated using the average exchange rates throughout the period. The effect of exchange rate fluctuations on translation of assets and liabilities is included as a component of shareholders’ equity in accumulated other comprehensive income (loss). |
Taxes on Income | Taxes on Income The Company uses the asset and liability approach of accounting for income taxes and provides deferred income taxes for temporary differences that will result in taxable or deductible amounts in future years based on the reporting of certain costs in different periods for financial statement and income tax purposes. Valuation allowances are recorded when uncertainty regarding their realizability exists. |
Earnings (Loss) Per Share | Earnings (Loss) Per Share Basic earnings (loss) per share includes no dilution and is computed by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflect, in periods in which they have a dilutive effect, the effect of common shares issuable upon exercise of stock options, vesting of restricted stock, and potential conversion of our convertible debt. The difference between reported basic and diluted weighted-average common shares results from the assumption that all dilutive stock options, convertible debt and restricted stock outstanding were exercised into common stock. We may be required to calculate basic earnings (loss) per share using the two-class method as a result of the Company’s redeemable non-controlling interests. To the extent that the redemption value increases and exceeds the then-current fair value of a redeemable non-controlling interest, net (loss) income attributable to Iconix Brand Group, Inc. (used to calculate earnings (loss) per share) could be negatively impacted by that increase, subject to certain limitations. The partial or full recovery of any reductions to net (loss) attributable to Iconix Brand Group, Inc. (used to calculate earnings (loss) per share) is limited to any cumulative prior-period reductions. Refer to Note 10 for further details. |
Advertising Campaign Costs | Advertising Campaign Costs Advertising costs such as print and online media are expensed when the advertisement first occurs. Advertising expenses for FY 2019 and FY 2018 amounted to $13.7 million, and $25.7 million, respectively. The Company also incurs co-operative advertising costs that represent reimbursements to certain licensees for shared marketing expenses related to the sale of its products. In accordance with ASC 606, these reimbursements are recorded as a reduction to licensing revenue. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Comprehensive income (loss) includes certain gains and losses that, under U.S. GAAP, are excluded from net income (loss) as such amounts are recorded directly as an adjustment to stockholders’ equity. The Company’s comprehensive income (loss) is primarily comprised of net income (loss), and foreign currency translation and changes in fair value of available for sale securities (prior to the Company’s adoption of ASU 2016-01 in FY 2018). |
New Accounting Standards | New Accounting Standards In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). The new standard establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. Additionally, FASB issued ASU No. 2018-11, Leases (Topic 842): Targeted Improvements, which allows companies to adopt Topic 842 without revising comparative period reporting or disclosures. ASU 2016-02 and ASU 2018-11 are effective for the Company and the Company adopted the new standard on January 1, 2019. The Company adopted ASU 2016-02 using the optional transition approach as of the effective date. As a result, the Company was not required to adjust its comparative period financial information for effects of the standard or make the new required lease disclosures for periods before the date of adoption (i.e. January 1, 2019). The Company has elected to adopt the package of transition practical expedients and therefore, has not reassessed (1) whether existing or expired contracts contain a lease, (2) lease classification of existing or expired leases or (3) the accounting for initial direct costs that were previously capitalized. The Company did not elect the practical expedient to use hindsight for leases existing at the adoption date. The adoption of ASU 2016-02 had a material impact to the Company’s consolidated balance sheet but did not materially impact the consolidated statement of operations. The most significant changes to the consolidated balance sheet relate to the recognition of new ROU assets and lease liabilities for operating leases. The adoption of ASU 2016-02 also had no material impact on operating, investing or financing cash flows in the consolidated statement of cash flows. Refer to Note 13 for further details. As a result of adopting ASU 2016-02, the Company recognized operating lease liabilities of $10.4 million (of which $1.7 million was current and $8.7 million was noncurrent) with corresponding ROU assets of $8.0 million as of January 1, 2019. In February 2017, the FASB issued ASU 2017-04, “Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment”, which simplifies the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test and eliminated the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment. The ASU is effective for public business entities for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. This ASU should be applied prospectively. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company adopted the new standard on January 1, 2020. The new standard will not have a material impact to the Company’s financial statements. |
Presentation of FY 2018 Data | Presentation of FY 2018 Data Certain reclassifications, which were immaterial, have been made to conform prior year data to the current presentation. During FY 2019, the Company also made a reclassification between redeemable noncontrolling interest and noncontrolling interest. During FY 2019, the Company determined that the impact of the accretion of redeemable noncontrolling interest to the Company’s earnings per share calculation had been incorrectly recorded in the Company’s consolidated statement of operations for FY 2018. Basic and diluted earnings per share for FY 2018 have been corrected in this Form 10-K. Management evaluated the materiality of this error from a quantitative and qualitative perspective and concluded that the adjustments to earnings per share were not material to the Company’s presentation and disclosures, and had no material impact on the Company’s financial position, results of operations and cash flows. Accordingly, no amendments to previously filed reports are deemed necessary. After taking into effect this adjustment for the year ended December 31, 2018, basic earnings and diluted loss per share is $14.93 and was previously presented as a basic and diluted loss per share of $15.73. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Joint Ventures to Develop and Market Company's Brands | Since January 1, 2018, the Company established the following joint ventures to develop and market the Company’s brands in specific markets: Date Created Investment / Joint Venture Iconix’s Investment March 2018 Starter China 100% (1) June 2018 Lee Cooper China 100% (2) (1) In March 2018, the Company formed the Starter China Limited as a wholly owned subsidiary to hold the Starter trademarks and related assets in respect of the Greater China territory. The Company entered into an agreement with Photosynthesis Holdings, Co. Ltd. (“PHL”) who will purchase no less than a 50% interest and up to a total of 60% interest in Starter China Limited. The purchase of the equity interest is expected to occur over a three-year period commencing on January 16, 2022. Refer to Note 4 for further details. As of December 31, 2019, the Company’s ownership interest in Starter China Limited was 100%. (2) In June 2018, the Company formed the Lee Cooper China Limited as a wholly-owned subsidiary to hold the Lee Cooper trademarks and related assets in respect of the Greater China territory. The Company entered into an agreement with POS Lee Cooper HK Co. Ltd. (“PLC”) who will purchase no less than a 50% interest and up to a total of 60% interest in Lee Cooper China Limited. The purchase of the equity interest is expected to occur over a two-year period commencing on January 15, 2024. Refer to Note 4 for further details. As of December 31, 2019, the Company’s ownership interest in Lee Cooper China Limited was 100%. |
Schedule of Earnings Per Share Calculation, Error Corrections and Prior Period Adjustments | Previously presented Year Ended Year Ended December 31, 2018 December 31, 2018 For earnings (loss) per share - basic: Net loss attributable to Iconix Brand Group, Inc. $ (100,521 ) $ (100,521 ) Accretion of redeemable non-controlling interest (5,432 ) — Net income (loss) attributable to Iconix Brand Group, Inc. after accretion of redeemable non- controlling interest for basic earnings (loss) per share $ (105,953 ) $ (100,521 ) For earnings (loss) per share - diluted: Net loss attributable to Iconix Brand Group, Inc. $ (100,521 ) $ (100,521 ) Effect of potential conversion of 5.75% Convertible Notes (1) — — Accretion of redeemable non-controlling interest (5,432 ) — Net loss attributable to Iconix Brand Group, Inc. after the effect of potential conversion of 5.75% Convertible Notes for diluted earnings (loss) per share $ (105,953 ) $ (100,521 ) Earnings (loss) per share: Basic $ (15.73 ) $ (14.93 ) Diluted $ (15.73 ) $ (14.93 ) Weighted average number of common shares outstanding: Basic 6,734 6,734 Diluted 6,734 6,734 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
ASC 606 | |
Summary of Revenues Disaggregated by License Type, Revenue Source and Geography | The following table presents our revenues disaggregated by license type: Year Ended December 31, 2019 2018 Licensing revenue by license type: Direct-to-retail license $ 42,818 $ 71,609 Wholesale licenses 105,059 112,769 Other licenses (1) 1,107 3,311 $ 148,984 $ 187,689 (1) Included in Other licenses for FY 2019 is $0.9 million of revenue associated with the Umbro business purchases discussed above as compared to $2.9 million for FY 2018. The following table represents our revenues disaggregated by geography: Year Ended December 31, 2019 2018 Total licensing revenue by geographic region: United States $ 88,444 $ 120,397 Other (1) 60,540 67,292 $ 148,984 $ 187,689 (1) No single country represented 10% of the Company’s revenues in the periods presented. |
Goodwill and Trademarks and O_2
Goodwill and Trademarks and Other Intangibles, net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Changes in Carrying Amount of Goodwill by Segment | Goodwill by reportable operating segment and in total, and changes in the carrying amounts, as of the dates indicated are as follows: Women's Men's Home International Consolidated Net goodwill at January 1, 2018 $ 37,812 $ — $ — $ 26,070 $ 63,882 Acquisition of 5% interest in Iconix Australia — — — 29 29 Impairment (37,812 ) — — (37,812 ) Net goodwill at December 31, 2018 $ $ — $ — $ 26,099 $ 26,099 Impairment — — — — — Net goodwill at December 31, 2019 $ — $ — $ — $ 26,099 $ 26,099 |
Trademarks and Other Intangibles, net | Trademarks and other intangibles, net consist of the following: December 31, 2019 December 31, 2018 Estimated Lives in Years Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Indefinite-lived trademarks and copyrights Indefinite $ 274,080 $ — $ 337,631 $ — Definite-lived trademarks 10-15 8,958 8,958 8,958 8,958 Licensing contracts 1-9 978 974 978 909 $ 284,016 $ 9,932 $ 347,567 $ 9,867 Trademarks and other intangibles, net $ 274,084 $ 337,700 |
Consolidated Entities, Joint _2
Consolidated Entities, Joint Ventures and Investments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Investments In And Advances To Affiliates Schedule Of Investments [Abstract] | |
Summary of Estimated Fair Value of Assets Acquired Less Liabilities Assumed | The estimated fair value of the assets acquired, less liabilities assumed, were allocated in July 2018 as follows: Fair value of 50% interest in Iconix Australia $ 6,507 Book value of Company equity investment prior to purchase of additional 5% interest (1,904 ) Gain on re-measurement of initial equity investment 8,410 $ 13,013 Trademarks 12,349 Cash 44 Accounts receivable 360 Intercompany receivables, net 368 Accounts payable and accrued expenses (85 ) Deferred revenue (52 ) Goodwill 29 $ 13,013 |
Equity Method Investments | Investments in Iconix China Through our ownership Brands Placed Entity Ownership by Iconix China Carrying Value As of December 31, 2019 Candie’s Candies Shanghai Fashion Co., Ltd. 20 % $ 10,100 Marc Ecko Shanghai MuXiang Apparel & Accessory Co. Limited 15 % 2,270 Material Girl Ningbo Material Girl Fashion Co., Ltd. (1) 0 % — Ecko Unltd Ai Xi Enterprise (Shanghai) Co. Limited 20 % 10,216 $ 22,586 (1) In March 2019, the Company sold its 20% interest in Ningbo Material Girl Fashion Co. Ltd. (“Material Girl China”) to Ningbo Peacebird Fashion & Accessories Co. Ltd. for $3.0 million in cash. Pursuant to the agreement, the sale price was reduced by an initial cash investment of $0.2 million, as well as $0.6 million of brand management expenses incurred since the inception of the Material Girl China entity, resulting in total net proceeds of $2.2 million. Additionally, Purim LLC, our MG Icon partner, is entitled to 33.3% of the net proceeds (or approximately $0.7 million) resulting in the Company’s portion of the net proceeds from the transaction to be approximately $1.5 million. As a result of this transaction, the Company recognized a gain of $0.2 million, which has been recorded within Other Income in the Company’s consolidated statement of operations during FY 2019. |
Gains on Sale of Trademarks, _2
Gains on Sale of Trademarks, net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Investments Debt And Equity Securities [Abstract] | |
Schedule of Gains on Sale of Trademarks, net | The following table details transactions comprising gains on sales of trademarks, net in the consolidated statement of operations: December 31, December 31, 2019 2018 Interest in Sharper Image trademark in Iconix Southeast Asia ( 2) — 236 Interest in Sharper Image trademark in Iconix Europe ( 2) — 352 Interest in Sharper Image trademark in Iconix MENA ( 2) — 250 Interest in Sharper Image trademark in Iconix Australia ( 2) — 125 Interest in Badgley Mischka trademark in Iconix Southeast Asia ( 1) — 478 Interest in Badgley Mischka trademark in Iconix Europe ( 1) — (244 ) Interest in Badgley Mischka trademark in Iconix MENA ( 1) — 71 Total net gains on sales of trademarks $ — $ 1,268 ( 1 ) In February 2016, the Company sold its rights to the Badgley Mischka intellectual property and related assets to Titan Industries, Inc. in partnership with the founders, Mark Badgley and James Mischka, and the apparel license MJCLK LLC for $13.8 million in cash. The Company recognized a gain of $11.6 million as a result of this transaction. The $11.6 million gain represented the sale of the Badgley Mischka intellectual property and related assets within the United States, Greater China, Israel and Latin America territories. The Badgley Mischka intellectual property and related assets within other foreign territories is owned by certain of the Company’s joint venture entities and required the Company to negotiate and finalize the sale of the intellectual property with its respective joint venture partners. In September 2017, the Company sold its interest in certain Badgley Mischka trademarks for shoes and handbags in Canada for $0.4 million in cash. The Company recognized a gain of $0.4 million as a result of this transaction. Additionally, in FY 2018, the Company recognized an additional combined gain of approximately $0.3 million upon final execution of the agreement for the sale of the Badgley Mischka intellectual property and related assets which were previously owned by the Iconix Southeast Asia, Iconix Europe and Iconix MENA joint ventures resulting in an aggregate gain on the sale of the brand of $12.3 million. ( 2 ) In December 2016, the Company sold the rights to the Sharper Image intellectual property and related assets to 360 Holdings, Inc. for $100.0 million in cash (of which $1.8 million is being held in escrow for the sale of the Sharper Image intellectual property in the Company’s international joint ventures). The Company recognized a gain of $28.1 million as a result of this transaction. The Sharper Image intellectual property and related assets within other foreign territories is owned by certain of the Company’s joint venture entities and required the Company to negotiate and finalize the sale of the intellectual property with its respective joint venture partners. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Estimated Fair Values of Other Financial Instruments | The estimated fair values of other financial instruments subject to fair value disclosures, determined based on Level One inputs, including broker quotes or quoted market prices or rates for the same or similar instruments and the related carrying amounts, are as follows: December 31, 2019 December 31, 2018 Carrying Fair Value Carrying Fair Value Long-term debt, including current portion (1) $ 645,721 $ 556,187 $ 675,229 $ 582,370 (1) Carrying amounts include aggregate unamortized debt discount and debt issuance costs. |
Debt Arrangements (Tables)
Debt Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Net Carrying Amount of Debt | The Company’s net carrying amount of debt is comprised of the following: December 31, 2019 December 31, 2018 Senior Secured Notes $ 338,130 $ 365,481 Variable Funding Note, net of original issue discount 99,610 95,273 Senior Secured Term Loan, net of original issue discount 162,418 171,137 5.75% Convertible Notes (1) 47,277 48,076 Unamortized debt issuance costs (1,714 ) (4,738 ) Total debt 645,721 675,229 Less current maturities 61,976 54,263 Total long-term debt $ 583,745 $ 620,966 (1) Reflects the debt carrying amount, which is accounted for under the Fair Value Option in the consolidated balance sheet as of December 31, 2019 and December 31, 2018. The actual principal outstanding balance of the 5.75% Convertible Notes is $94.4 million and $109.7 million as of December 31, 2019 and December 31, 2018, respectively. |
Company's Debt Maturities on Calendar Year Basis | As of December 31, 2019, the Company’s debt maturities on a calendar year basis are as follows: Total 2020 2021 2022 2023 2024 Thereafter Senior Secured Notes $ 338,130 $ 42,693 $ 42,693 $ 42,693 $ 42,693 $ 42,693 $ 124,665 Variable Funding Notes (1) $ 99,610 — — — — — 99,610 Senior Secured Term Loan (2) $ 162,418 19,284 19,284 19,284 104,566 — — 5.75% Convertible Notes (3) $ 47,277 — — — 47,277 — — Total $ 647,435 $ 61,977 $ 61,977 $ 61,977 $ 194,536 $ 42,693 $ 224,275 (1) Reflects the net debt carrying amount, effected by the outstanding balance of the original issue discount, in the consolidated balance sheet as of December 31, 2019. The actual principal outstanding balance of the Variable Funding Notes is $100.0 million as of December 31, 2019. (2) Reflects the net debt carrying amount, effected by the outstanding balance of the original issue discount, in the consolidated balance sheet as of December 31, 2019. The actual principal outstanding balance of the Senior Secured Term Loan is $175.6 million as of December 31, 2019. (3) Reflects the debt carrying amount which is accounted for under the Fair Value Option in the consolidated balance sheet as of December 31, 2019. The actual principal outstanding balance of the 5.75% Convertible Notes is $94.4 million as of December 31, 2019. |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Summary of Unvested Restricted Stock | The following tables summarize information about unvested restricted stock transactions: FY 2019 FY 2018 Shares Weighted Average Grant Date Fair Value Shares Weighted Average Grant Date Fair Value Non-vested, January 1, 239,077 $ 2.68 54,490 $ 76.49 Granted 329,145 1.70 319,378 2.20 Vested (241,082 ) 2.26 (109,872 ) 21.40 Forfeited/Canceled (296 ) 75.20 (24,919 ) 76.00 Non-vested, December 31, 326,844 $ 1.94 239,077 $ 2.68 |
Summary of Grant Date Fair Value and Stock Price of Awards Issued Based on Valuation Assumptions | On October 15, 2018, the Company hired Robert C. Galvin as its Chief Executive Officer and President and he was appointed to the Company’s board of directors. Mr. Galvin was issued an Employment Inducement Award pursuant to his employment agreement. The terms of the Employment Inducement Award are similar to the retention stock awards provided to other employees as described above. The grant date fair value of Mr. Galvin’s award issued on October 15, 2018 was $0.18 and was based on the following range of assumptions for the Company and the peer group (the grant date fair value and stock price valuation assumptions in the table below have not been updated to reflect the Reverse Stock Split): October 15, 2018 Valuation Assumptions: Beginning average stock price (20 trading days prior to October 15, 2018) $0.27 - $86.49 Valuation date stock price (closing values on October 15, 2018) $0.22 - $80.27 Risk free interest rate 2.92 % Expected dividend yield used when simulating the total shareholder return 0.00 % Expected dividend yield used when simulating the Company's stock price 0.00 % Stock price volatility (based on historical stock price over the last 3.00 years) 20.88% - 108.81% Correlation coefficients -0.02 -0.48 |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Reconciliation of Weighted Average Shares Used in Calculating Basic and Diluted Earnings Per Share | A reconciliation of weighted average shares used in calculating basic and diluted earnings per share follows: FY 2019 FY 2018 Basic 10,559 6,734 Effect of assumed vesting of restricted stock — — Effect of convertible notes subject to conversion — — Diluted 10,559 6,734 |
Schedule of Impact on Earnings Per Share Calculation | For FY 2019 and FY 2018, adjustments to the Company’s redeemable non-controlling interest and effects of the potential conversion of the 5.75% Convertible Notes had impacts on the Company’s earnings per share calculations as follows: Year Ended Year Ended December 31, 2019 December 31, 2018 For earnings (loss) per share - basic: Net loss attributable to Iconix Brand Group, Inc. $ (111,513 ) $ (100,521 ) Accretion of redeemable non-controlling interest — — Net income (loss) attributable to Iconix Brand Group, Inc. after accretion of redeemable non- controlling interest for basic earnings (loss) per share $ (111,513 ) $ (100,521 ) For earnings (loss) per share - diluted: Net loss attributable to Iconix Brand Group, Inc. $ (111,513 ) $ (100,521 ) Effect of potential conversion of 5.75% Convertible Notes (1) — — Accretion of redeemable non-controlling interest — — Net loss attributable to Iconix Brand Group, Inc. after the effect of potential conversion of 5.75% Convertible Notes for diluted earnings (loss) per share $ (111,513 ) $ (100,521 ) Earnings (loss) per share: Basic $ (10.56 ) $ (14.93 ) Diluted $ (10.56 ) $ (14.93 ) Weighted average number of common shares outstanding: Basic 10,559 6,734 Diluted 10,559 6,734 (1) |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Summary of Royalty Revenue Recognized | The Company has entered into certain license agreements in which the core licensee is also one of our joint venture partners. In the case of Sports Direct International plc (“Sports Direct”), the Company maintains license agreements with Sports Direct, but in addition, during FY 2018, the Company entered into a cooperation agreement with Sports Direct that allowed Sports Direct to appoint two members to the Company’s Board of Directors. The cooperation agreement expired pursuant to its terms during the first quarter of 2019. As of December 31, 2019 and December 31, 2018, the Company recognized the following royalty revenue amounts: FY 2019 FY 2018 Joint Venture Partner Global Brands Group Asia Limited (1) $ — $ 19,544 MHMC (2) 7 2,927 Albion Equity Partners LLC / GL Damek 2,350 2,644 Rise Partners, LLC / Top On International Group Limited — 977 Sports Direct International plc 1,188 915 Anthony L&S — 623 M.G.S. Sports Trading Limited 440 610 Pac Brands USA, Inc. 363 246 $ 4,348 $ 28,486 (1) Prior to 2019, Global Brand Group Asia Limited maintained the Buffalo and Zoo York license agreements. However, in October 2018, Centric Brands Inc. acquired a significant portion of Global Brands Group Asia Limited’s North American licensing business. The Company’s license agreement for the Buffalo and Zoo York brands in the United States are now maintained with Centric Brands Inc. which is not a related party or affiliated entity to the Company . (2) As detailed in Note 4, as of July 2019, MHMC is no longer a related party . |
Operating Leases (Tables)
Operating Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Summary of Components of Lease Cost | For the twelve months ended December 31, components of lease cost were as follows: FY 2019 Operating lease cost $ 2,215 Short-term lease cost 537 Variable lease cost 396 $ 3,148 |
Schedule of Maturities of Lease Liabilities Under Non-cancellable Leases | Maturities of lease liabilities under non-cancellable leases as of December 31, 2019 are as follows: Operating Leases 2020 $ 2,610 2021 2,461 2022 2,168 2023 2,109 Thereafter 1,079 Total undiscounted lease payments $ 10,427 Less: Imputed interest 1,594 Total lease liabilities $ 8,833 |
Schedule of Future Net Minimum Lease Payments under Non-cancelable Operating Lease Agreements | Future net minimum lease payments under non-cancelable operating lease agreements as of December 31, 2018 under the previous lease accounting standard were as follows: Operating Leases 2019 $ 2,650 2020 2,726 2021 2,583 2022 2,191 2023 2,109 Thereafter 1,078 Totals $ 13,337 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Pre-Tax Book Loss | Pre-tax book loss for FY 2019 and FY 2018 were as follows: FY 2019 FY 2018 Domestic $ (129,740 ) $ (119,031 ) Foreign 35,907 35,900 Total pre-tax loss $ (93,833 ) $ (83,131 ) |
Income Tax Provision (Benefit) for Federal, and State and Local Income Taxes | The income tax provision (benefit) for federal, and state and local income taxes in the consolidated statement of operations consists of the following: Year Ended December 31, 2019 Year Ended December 31, 2018 Current: Federal $ (1,012 ) $ (609 ) State and local (10 ) (61 ) Foreign 9,185 9,212 Total current $ 8,163 $ 8,542 Deferred: Federal 23 (4,950 ) State and local (103 ) (1,967 ) Foreign — 4,913 Total deferred (80 ) (2,004 ) Total Provision $ 8,083 $ 6,538 |
Significant Components of Net Deferred Tax Assets and Liabilities | The significant components of net deferred tax assets and liabilities of the Company consist of the following: December 31, 2019 2018 State net operating loss carryforwards $ 4,064 $ 2,498 U.S. Federal net operating loss carryforwards 36,306 15,864 Receivable reserves 280 4,827 Interest expense limitation 16,779 5,975 Intangibles 96,177 107,035 Equity compensation 1,838 1,764 Foreign Tax Credit 5,252 5,252 Other 9,293 8,907 Total deferred tax assets 169,989 152,122 Valuation allowance (143,368 ) (115,483 ) Net deferred tax assets $ 26,621 $ 36,639 Depreciation (284 ) (369 ) Convertible notes (6,451 ) (10,519 ) Investment in joint ventures (24,350 ) (30,317 ) Total deferred tax liabilities (31,085 ) (41,205 ) Total net deferred tax liabilities $ (4,464 ) $ (4,566 ) Balance Sheet detail on total net deferred tax assets (liabilities): Non-current portion of net deferred tax assets $ — $ — Non-current portion of net deferred tax liabilities $ (4,464 ) $ (4,566 ) |
Rate Reconciliation Between Amount of Income Tax Provision (Benefit) at Federal Rate and Provision (Benefit) from Taxes on Loss Before Income Tax | The following is a rate reconciliation between the amount of income tax provision (benefit) at the Federal rate of 21% and provision (benefit) from taxes on loss before income taxes for FY 2019 and FY 2018, respectively: Year ended December, 31 2019 2018 Income tax benefit computed at the federal rate of 21% $ (19,705 ) $ (17,457 ) Increase (reduction) in income taxes resulting from: State and local income taxes (benefit), net of federal income tax (115 ) (1,998 ) Non-controlling interest (2,552 ) (2,720 ) Unrecognized tax benefits — (31 ) Valuation allowance 21,756 22,752 Interest on income tax receivable (1,253 ) — Non-deductible executive compensation 150 868 Foreign Earnings (rate differential) 8,300 13,405 US Tax Reform / rate reduction 23 (5,562 ) Other, net 1,479 (2,719 ) Total $ 8,083 $ 6,538 |
Reconciliation of Beginning and Ending Amount of Gross Unrecognized Tax Benefits Excluding Interest and Penalties | A reconciliation of the beginning and ending amount of gross unrecognized tax benefits, excluding interest and penalties, is as follows: 2019 2018 Uncertain tax positions at January 1 $ — $ 354 Additions for current year tax positions — — Additions for prior year tax positions — — Reductions for prior year tax positions — (15 ) Settlements — (339 ) Uncertain tax positions at December 31 $ — $ - |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income | The following table sets forth the activity in accumulated other comprehensive income for the years ended December 31, 2019 and December 31, 2018: Foreign currency translation adjustments Unrealized losses of available for sale securities Total Balance at December 31, 2018 $ (53,068 ) $ — $ (53,068 ) Foreign currency translation adjustment (1,575 ) — (1,575 ) Current period other comprehensive income (1,575 ) — (1,575 ) Balance at December 31, 2019 $ (54,643 ) $ — $ (54,643 ) Foreign currency translation adjustments Unrealized losses of available for sale securities Total Balance at December 31, 2017 $ (48,103 ) $ (3,177 ) $ (51,280 ) Foreign currency translation adjustment (4,965 ) — (4,965 ) Cumulative adjustment for adoption of ASU 2016-01 3,177 3,177 Current period other comprehensive income (4,965 ) 3,177 (1,788 ) Balance at December 31, 2018 $ (53,068 ) $ — $ (53,068 ) |
Segment and Geographic Data (Ta
Segment and Geographic Data (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Net Revenues by Type of License and Information by Geographic Region | Reportable data for the Company’s operating segments were as follows: FY 2019 FY 2018 Licensing revenue: Women’s $ 37,491 $ 57,401 Men’s 36,793 39,073 Home 14,753 24,568 International 59,947 66,647 $ 148,984 $ 187,689 Operating income (loss): Women’s $ (961 ) $ (128,050 ) Men’s 24,878 11,754 Home (4,932 ) 17,221 International 23,487 27,447 Corporate (73,252 ) (47,409 ) $ (30,780 ) $ (119,037 ) |
Other Assets- Current and Lon_2
Other Assets- Current and Long-Term (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Other Assets-Current and Long-Term | Other Assets – Current December 31, 2019 December 31, 2018 Other assets- current consisted of the following: US federal tax receivable $ 1,115 $ 16,757 Insurance receivable (1) 15,000 — Prepaid expenses 1,207 2,451 Prepaid taxes 1,119 1,755 Prepaid advertising 275 1,100 Prepaid insurance 2,042 1,446 Other current assets 596 645 Due from related parties 86 3,903 $ 21,440 $ 28,057 (1) As of December 31, 2019, the Company recorded an asset of approximately $15.0 million related to insurance claims of which $3.8 million was received in Q1 2020 and $6.3 million will be released from escrow and paid to claimants in 2020. The Company believes the remainder is probable of recovery from various insurance carriers. These claims pertain to expenses incurred related to certain litigation claims against the Company and related expenses that are discussed throughout Note 11. Other Assets – Long Term December 31, December 31, 2019 2018 Other noncurrent assets consisted of the following: Prepaid interest 4,868 5,496 Deposits 707 483 Due from related parties 1,205 — $ 6,780 $ 5,979 |
The Company - Additional Inform
The Company - Additional Information (Detail) | Dec. 31, 2019 |
Iconix China | |
Significant Accounting Policies [Line Items] | |
Company ownership interest | 100.00% |
Umbro China Limited | |
Significant Accounting Policies [Line Items] | |
Company ownership interest | 100.00% |
Iconix Latin America | |
Significant Accounting Policies [Line Items] | |
Company ownership interest | 100.00% |
Iconix Canada | |
Significant Accounting Policies [Line Items] | |
Company ownership interest | 100.00% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) | Mar. 14, 2019 | Dec. 31, 2019USD ($)Entity | Dec. 31, 2018USD ($) | Jun. 30, 2018USD ($) | Dec. 31, 2019USD ($)Entity$ / shares | Dec. 31, 2018USD ($)$ / shares | Jan. 01, 2019USD ($) | Sep. 30, 2017 |
Significant Accounting Policies [Line Items] | ||||||||
Number of consolidated joint ventures | Entity | 14 | 14 | ||||||
Accumulated deficit | $ (429,117,000) | $ (312,796,000) | $ (429,117,000) | $ (312,796,000) | ||||
Net loss | (111,513,000) | (100,521,000) | ||||||
Stock split, conversion ratio | 0.10 | |||||||
Reverse stock split | 1-for-10 reverse stock split | |||||||
Earnings in foreign subsidiaries | 0 | 0 | ||||||
Allowance for doubtful accounts | $ 14,300,000 | 20,100,000 | $ 14,300,000 | 20,100,000 | ||||
Debt instrument, interest rate, stated percentage | 5.75% | 5.75% | ||||||
Derivative instruments, fair value | $ 0 | 0 | $ 0 | 0 | ||||
Impairment of equity method investment | 26,613,000 | 2,500,000 | ||||||
Impairment of long-lived assets | 0 | 0 | ||||||
Impairment of goodwill | 0 | $ 0 | $ 37,800,000 | 0 | 37,812,000 | |||
Impairment of intangible assets, indefinite-lived | 65,587,000 | 136,417,000 | ||||||
Advertising expenses | 13,700,000 | $ 25,700,000 | ||||||
Operating lease liabilities | 8,833,000 | 8,833,000 | ||||||
Right-of-use-asset | 6,254,000 | $ 6,254,000 | ||||||
Earnings (loss) per share, Basic | $ / shares | $ (10.56) | $ (14.93) | ||||||
Earnings (loss) per share, Diluted | $ / shares | $ (10.56) | (14.93) | ||||||
Previously Reported | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Earnings (loss) per share, Basic | $ / shares | (15.73) | |||||||
Earnings (loss) per share, Diluted | $ / shares | $ (15.73) | |||||||
ASU 2016-02 | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Operating lease liabilities | $ 10,400,000 | |||||||
Operating lease liabilities, current | 1,700,000 | |||||||
Operating lease liabilities, noncurrent | 8,700,000 | |||||||
Right-of-use-asset | $ 8,000,000 | |||||||
Marcy Media Holdings, LLC | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Impairment of equity method investment | $ 17,000,000 | |||||||
Marcy Media Holdings, LLC | Carter Parties Settlement | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Impairment of equity method investment | 17,000,000 | |||||||
MG Icon | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Impairment of equity method investment | $ 9,600,000 | 9,600,000 | ||||||
Write off of advances made to the entity | $ 2,600,000 | |||||||
Minimum | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Property, plant and equipment, useful life | 3 years | |||||||
Finite-lived intangible assets, useful life | 1 year | |||||||
Maximum | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Property, plant and equipment, useful life | 7 years | |||||||
Finite-lived intangible assets, useful life | 15 years | |||||||
Convertible Notes | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Debt instrument, interest rate, stated percentage | 1.50% | 1.50% | 1.50% | |||||
Sales Revenue, Services, Net | Customer One | Customer Concentration Risk | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Concentration risk, percentage | 12.00% | 16.00% | ||||||
Sales Revenue, Services, Net | Customer Two | Customer Concentration Risk | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Concentration risk, percentage | 11.00% | |||||||
Accounts Receivable | Customer One | Customer Concentration Risk | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Concentration risk, percentage | 16.00% | 12.00% | ||||||
Subsidiaries | Non U.S | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Cash including restricted cash | $ 19,000,000 | $ 19,000,000 | ||||||
Percentage of cash including restricted cash held in foreign subsidiaries | 27.00% | 27.00% | ||||||
Earnings in foreign subsidiaries | $ 0 | $ 0 | ||||||
Novel Corona Virus Adverse Impact | ||||||||
Significant Accounting Policies [Line Items] | ||||||||
Accumulated deficit | $ (429,100,000) | (429,100,000) | ||||||
Net loss | $ (101,900,000) | $ (89,700,000) |
Joint Ventures to Develop and M
Joint Ventures to Develop and Market Company's Brands (Detail) | 12 Months Ended | |
Dec. 31, 2019 | ||
Starter China | ||
Schedule Of Investments [Line Items] | ||
Date Created | 2018-03 | |
Investment / Joint Venture | Starter China | |
Company ownership interest | 100.00% | [1] |
Lee Cooper China | ||
Schedule Of Investments [Line Items] | ||
Date Created | 2018-06 | |
Investment / Joint Venture | Lee Cooper China | |
Company ownership interest | 100.00% | [2] |
[1] | In March 2018, the Company formed the Starter China Limited as a wholly owned subsidiary to hold the Starter trademarks and related assets in respect of the Greater China territory. The Company entered into an agreement with Photosynthesis Holdings, Co. Ltd. (“PHL”) who will purchase no less than a 50% interest and up to a total of 60% interest in Starter China Limited. The purchase of the equity interest is expected to occur over a three-year period commencing on January 16, 2022. Refer to Note 4 for further details. As of December 31, 2019, the Company’s ownership interest in Starter China Limited was 100%. | |
[2] | In June 2018, the Company formed the Lee Cooper China Limited as a wholly-owned subsidiary to hold the Lee Cooper trademarks and related assets in respect of the Greater China territory. The Company entered into an agreement with POS Lee Cooper HK Co. Ltd. (“PLC”) who will purchase no less than a 50% interest and up to a total of 60% interest in Lee Cooper China Limited. The purchase of the equity interest is expected to occur over a two-year period commencing on January 15, 2024. Refer to Note 4 for further details. As of December 31, 2019, the Company’s ownership interest in Lee Cooper China Limited was 100%. |
Joint Ventures to Develop and_2
Joint Ventures to Develop and Market Company's Brands (Parenthetical) (Detail) | Mar. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2019 | |
Starter China Limited | ||||
Schedule Of Investments [Line Items] | ||||
Company’s ownership interest | [1] | 100.00% | ||
Starter China Limited | Photosynthesis Holdings, Co. Ltd | ||||
Schedule Of Investments [Line Items] | ||||
Business acquisition completion period | 3 years | |||
Equity interest acquisition commencement date | Jan. 16, 2022 | |||
Starter China Limited | Photosynthesis Holdings, Co. Ltd | Maximum | ||||
Schedule Of Investments [Line Items] | ||||
Percentage of ownership interest sold | 60.00% | |||
Starter China Limited | Photosynthesis Holdings, Co. Ltd | Minimum | ||||
Schedule Of Investments [Line Items] | ||||
Percentage of ownership interest sold | 50.00% | |||
Lee Cooper HK Co. Ltd | ||||
Schedule Of Investments [Line Items] | ||||
Company’s ownership interest | [2] | 100.00% | ||
Lee Cooper HK Co. Ltd | POS Lee Cooper HK Co. Ltd | ||||
Schedule Of Investments [Line Items] | ||||
Business acquisition completion period | 2 years | |||
Equity interest acquisition commencement date | Jan. 15, 2024 | |||
Lee Cooper HK Co. Ltd | POS Lee Cooper HK Co. Ltd | Maximum | ||||
Schedule Of Investments [Line Items] | ||||
Percentage of ownership interest sold | 60.00% | |||
Lee Cooper HK Co. Ltd | POS Lee Cooper HK Co. Ltd | Minimum | ||||
Schedule Of Investments [Line Items] | ||||
Percentage of ownership interest sold | 50.00% | |||
[1] | In March 2018, the Company formed the Starter China Limited as a wholly owned subsidiary to hold the Starter trademarks and related assets in respect of the Greater China territory. The Company entered into an agreement with Photosynthesis Holdings, Co. Ltd. (“PHL”) who will purchase no less than a 50% interest and up to a total of 60% interest in Starter China Limited. The purchase of the equity interest is expected to occur over a three-year period commencing on January 16, 2022. Refer to Note 4 for further details. As of December 31, 2019, the Company’s ownership interest in Starter China Limited was 100%. | |||
[2] | In June 2018, the Company formed the Lee Cooper China Limited as a wholly-owned subsidiary to hold the Lee Cooper trademarks and related assets in respect of the Greater China territory. The Company entered into an agreement with POS Lee Cooper HK Co. Ltd. (“PLC”) who will purchase no less than a 50% interest and up to a total of 60% interest in Lee Cooper China Limited. The purchase of the equity interest is expected to occur over a two-year period commencing on January 15, 2024. Refer to Note 4 for further details. As of December 31, 2019, the Company’s ownership interest in Lee Cooper China Limited was 100%. |
Schedule of Earnings Per Share
Schedule of Earnings Per Share Calculation, Error Corrections and Prior Period Adjustments (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
For earnings (loss) per share - basic: | ||
Net loss attributable to Iconix Brand Group, Inc. | $ (111,513) | $ (100,521) |
Net income (loss) attributable to Iconix Brand Group, Inc. after accretion of redeemable non- controlling interest for basic earnings (loss) per share | (111,513) | (100,521) |
For earnings (loss) per share - diluted: | ||
Net loss attributable to Iconix Brand Group, Inc. | (111,513) | (100,521) |
Net loss attributable to Iconix Brand Group, Inc. after the effect of potential conversion of 5.75% Convertible Notes for diluted earnings (loss) per share | $ (111,513) | $ (100,521) |
Basic | $ (10.56) | $ (14.93) |
Diluted | $ (10.56) | $ (14.93) |
Weighted average number of common shares outstanding: | ||
Basic | 10,559 | 6,734 |
Diluted | 10,559 | 6,734 |
Previously Presented | ||
For earnings (loss) per share - basic: | ||
Net loss attributable to Iconix Brand Group, Inc. | $ (100,521) | |
Accretion of redeemable non-controlling interest | (5,432) | |
Net income (loss) attributable to Iconix Brand Group, Inc. after accretion of redeemable non- controlling interest for basic earnings (loss) per share | (105,953) | |
For earnings (loss) per share - diluted: | ||
Net loss attributable to Iconix Brand Group, Inc. | (100,521) | |
Accretion of redeemable non-controlling interest | (5,432) | |
Net loss attributable to Iconix Brand Group, Inc. after the effect of potential conversion of 5.75% Convertible Notes for diluted earnings (loss) per share | $ (105,953) | |
Basic | $ (15.73) | |
Diluted | $ (15.73) | |
Weighted average number of common shares outstanding: | ||
Basic | 6,734 | |
Diluted | 6,734 |
Schedule of Earnings Per Shar_2
Schedule of Earnings Per Share Calculation, Error Corrections and Prior Period Adjustments (Parenthetical) (Detail) | Dec. 31, 2019 | Dec. 31, 2018 | Feb. 22, 2018 | Sep. 30, 2017 |
Earnings Per Share Disclosure [Line Items] | ||||
Percentage of conversion of convertible notes | 5.75% | |||
5.75% Senior Subordinated Notes Due August 2023 | ||||
Earnings Per Share Disclosure [Line Items] | ||||
Percentage of conversion of convertible notes | 5.75% | 5.75% | ||
Convertible Notes | ||||
Earnings Per Share Disclosure [Line Items] | ||||
Percentage of conversion of convertible notes | 1.50% | 1.50% | ||
Convertible Notes | 5.75% Senior Subordinated Notes Due August 2023 | ||||
Earnings Per Share Disclosure [Line Items] | ||||
Percentage of conversion of convertible notes | 5.75% | 5.75% | 5.75% |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Jan. 01, 2020 | Jan. 01, 2018 | |
Disaggregation Of Revenue [Line Items] | ||||
Accumulated deficit | $ (429,117) | $ (312,796) | ||
Non-controlling interests | 26,521 | 26,999 | ||
Licensing revenue | $ 148,984 | $ 187,689 | ||
Type of Revenue [Extensible List] | us-gaap:LicenseMember | us-gaap:LicenseMember | ||
Contract assets, current | $ 9,448 | $ 4,802 | ||
Contract assets, long term | 11,807 | 14,560 | ||
Impairment loss of contract assets | 5,143 | 1,777 | ||
Subsequent Event | ||||
Disaggregation Of Revenue [Line Items] | ||||
Revenue, remaining performance obligation | $ 400,000 | |||
International | ||||
Disaggregation Of Revenue [Line Items] | ||||
Licensing revenue | $ 900 | $ 2,900 | ||
Type of Revenue [Extensible List] | us-gaap:LicenseMember | us-gaap:LicenseMember | ||
Cost of goods sold | $ 800 | $ 2,800 | ||
Type of Cost, Good or Service [Extensible List] | us-gaap:SellingGeneralAndAdministrativeExpensesMember | us-gaap:SellingGeneralAndAdministrativeExpensesMember | ||
ASC 606 | ||||
Disaggregation Of Revenue [Line Items] | ||||
Deferred revenue | $ 4,200 | |||
ASC 606 | Other Assets | ||||
Disaggregation Of Revenue [Line Items] | ||||
Contract assets term | 1 year | |||
ASC 606 | Other Assets – Current | ||||
Disaggregation Of Revenue [Line Items] | ||||
Contract assets, current | $ 9,400 | $ 4,800 | ||
ASC 606 | Other Assets Noncurrent | ||||
Disaggregation Of Revenue [Line Items] | ||||
Contract assets, long term | $ 11,800 | 14,600 | ||
ASC 606 | Impact of changes in accounting policies, Effect of Change Increase/(Decrease) | ||||
Disaggregation Of Revenue [Line Items] | ||||
Accumulated deficit | $ 16,500 | |||
Non-controlling interests | $ 1,200 | |||
Licensing revenue | $ 3,900 |
Revenue Recognition - Summary o
Revenue Recognition - Summary of Revenues Disaggregated by License Type (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Disaggregation Of Revenue [Line Items] | |||
Type of Revenue [Extensible List] | us-gaap:LicenseMember | us-gaap:LicenseMember | |
Total revenue | $ 148,984 | $ 187,689 | |
Direct To Retail License | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | 42,818 | 71,609 | |
Wholesale License | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | 105,059 | 112,769 | |
Other Licenses | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | [1] | $ 1,107 | $ 3,311 |
[1] | Included in Other licenses for FY 2019 is $0.9 million of revenue associated with the Umbro business purchases discussed above as compared to $2.9 million for FY 2018. |
Revenue Recognition - Summary_2
Revenue Recognition - Summary of Revenues Disaggregated by License Type (Parenthetical) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | $ 148,984 | $ 187,689 | |
Other Licenses | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | [1] | 1,107 | 3,311 |
Other Licenses | Umbro Business | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | $ 900 | $ 2,900 | |
[1] | Included in Other licenses for FY 2019 is $0.9 million of revenue associated with the Umbro business purchases discussed above as compared to $2.9 million for FY 2018. |
Revenue Recognition - Summary_3
Revenue Recognition - Summary of Revenues Disaggregated by Geography (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | $ 148,984 | $ 187,689 | |
UNITED STATES | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | 88,444 | 120,397 | |
Other | |||
Disaggregation Of Revenue [Line Items] | |||
Total revenue | [1] | $ 60,540 | $ 67,292 |
[1] | No single country represented 10% of the Company’s revenues in the periods presented. |
Revenue Recognition - Additio_2
Revenue Recognition - Additional Information (Detail1) | Dec. 31, 2019USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-01-01 | |
Disaggregation Of Revenue [Line Items] | |
Revenue, remaining performance obligation | $ 87,700 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-01-01 | |
Disaggregation Of Revenue [Line Items] | |
Revenue, remaining performance obligation | $ 69,800 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-01-01 | |
Disaggregation Of Revenue [Line Items] | |
Revenue, remaining performance obligation | $ 58,800 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-01-01 | |
Disaggregation Of Revenue [Line Items] | |
Revenue, remaining performance obligation | $ 50,400 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2024-01-01 | |
Disaggregation Of Revenue [Line Items] | |
Revenue, remaining performance obligation | $ 36,600 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2025-01-01 | |
Disaggregation Of Revenue [Line Items] | |
Revenue, remaining performance obligation | $ 96,700 |
Revenue, remaining performance obligation, expected timing of satisfaction, period |
Changes in Carrying Amount of G
Changes in Carrying Amount of Goodwill by Segment (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill [Line Items] | |||||
Net goodwill | $ 26,099,000 | $ 63,882,000 | |||
Impairment | $ 0 | $ 0 | $ (37,800,000) | 0 | (37,812,000) |
Net goodwill | 26,099,000 | 26,099,000 | 26,099,000 | 26,099,000 | |
Iconix Australia | |||||
Goodwill [Line Items] | |||||
Acquisition of 5% interest in Iconix Australia | 29,000 | ||||
Women's | |||||
Goodwill [Line Items] | |||||
Net goodwill | 37,812,000 | ||||
Impairment | $ (37,800,000) | (37,812,000) | |||
International | |||||
Goodwill [Line Items] | |||||
Net goodwill | 26,099,000 | 26,070,000 | |||
Net goodwill | $ 26,099,000 | $ 26,099,000 | $ 26,099,000 | 26,099,000 | |
International | Iconix Australia | |||||
Goodwill [Line Items] | |||||
Acquisition of 5% interest in Iconix Australia | $ 29,000 |
Changes in Carrying Amount of_2
Changes in Carrying Amount of Goodwill by Segment (Parenthetical) (Detail) - Iconix Australia | Dec. 31, 2018 | Jul. 31, 2018 |
Goodwill [Line Items] | ||
Percentage of ownership interest acquired | 5.00% | 5.00% |
International | ||
Goodwill [Line Items] | ||
Percentage of ownership interest acquired | 5.00% |
Goodwill and Trademarks and O_3
Goodwill and Trademarks and Other Intangibles, net - Additional Information (Detail) | Oct. 15, 2018USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Dec. 31, 2019USD ($)Segment | Dec. 31, 2018USD ($) | Jul. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Intangible Assets By Major Class [Line Items] | |||||||||
Goodwill | $ 26,099,000 | $ 26,099,000 | $ 26,099,000 | $ 26,099,000 | $ 63,882,000 | ||||
Number of reportable segments | Segment | 4 | ||||||||
Impairment of goodwill | 0 | 0 | $ 37,800,000 | $ 0 | 37,812,000 | ||||
Impairment of intangible assets, indefinite-lived | 65,587,000 | 136,417,000 | |||||||
Trademarks and other intangibles, net | 274,084,000 | 337,700,000 | 274,084,000 | 337,700,000 | |||||
Amortization expense for intangible assets | 65,000 | 258,000 | |||||||
Projects amortization expenses, 2022 | 0 | 0 | |||||||
Projects amortization expenses, 2023 | 0 | 0 | |||||||
Projects amortization expenses, 2024 | 0 | 0 | |||||||
Trademarks | |||||||||
Intangible Assets By Major Class [Line Items] | |||||||||
Impairment of the definite-lived trademarks | 0 | 0 | |||||||
Trademarks | |||||||||
Intangible Assets By Major Class [Line Items] | |||||||||
Trademarks and other intangibles, net | 12,300,000 | 12,300,000 | |||||||
Operating Segments | Trademarks | |||||||||
Intangible Assets By Major Class [Line Items] | |||||||||
Impairment of intangible assets, indefinite-lived | 58,700,000 | 65,600,000 | |||||||
Women's | |||||||||
Intangible Assets By Major Class [Line Items] | |||||||||
Goodwill | 37,812,000 | ||||||||
Impairment of goodwill | 37,800,000 | 37,812,000 | |||||||
Women's | Trademarks | |||||||||
Intangible Assets By Major Class [Line Items] | |||||||||
Impairment of intangible assets, indefinite-lived | $ 0 | 32,700,000 | $ 4,400,000 | $ 73,300,000 | |||||
Women's | Joe Boxer Trademark | |||||||||
Intangible Assets By Major Class [Line Items] | |||||||||
Impairment of intangible assets, indefinite-lived | 6,800,000 | ||||||||
Women's | Operating Segments | Trademarks | |||||||||
Intangible Assets By Major Class [Line Items] | |||||||||
Impairment of intangible assets, indefinite-lived | 55,100,000 | 35,300,000 | |||||||
Men's | Operating Segments | Trademarks | |||||||||
Intangible Assets By Major Class [Line Items] | |||||||||
Impairment of intangible assets, indefinite-lived | 100,000 | 800,000 | |||||||
Home | Trademarks | |||||||||
Intangible Assets By Major Class [Line Items] | |||||||||
Impairment of intangible assets, indefinite-lived | 2,700,000 | ||||||||
Home | Operating Segments | Trademarks | |||||||||
Intangible Assets By Major Class [Line Items] | |||||||||
Impairment of intangible assets, indefinite-lived | 2,700,000 | 17,800,000 | |||||||
International | |||||||||
Intangible Assets By Major Class [Line Items] | |||||||||
Goodwill | 26,099,000 | 26,099,000 | 26,099,000 | $ 26,099,000 | $ 26,070,000 | ||||
International | Operating Segments | Trademarks | |||||||||
Intangible Assets By Major Class [Line Items] | |||||||||
Impairment of intangible assets, indefinite-lived | $ 800,000 | 11,700,000 | |||||||
Iconix Australia | |||||||||
Intangible Assets By Major Class [Line Items] | |||||||||
Ownership interest acquired | 5.00% | 5.00% | 5.00% | ||||||
Goodwill | $ 29,000 | ||||||||
Iconix Australia | International | |||||||||
Intangible Assets By Major Class [Line Items] | |||||||||
Ownership interest acquired | 5.00% | 5.00% | |||||||
Maximum | |||||||||
Intangible Assets By Major Class [Line Items] | |||||||||
Projects amortization expenses, 2020 | 100,000 | 100,000 | |||||||
Projects amortization expenses, 2021 | $ 100,000 | $ 100,000 | |||||||
Maximum | Iconix Australia | |||||||||
Intangible Assets By Major Class [Line Items] | |||||||||
Goodwill | $ 100,000 |
Trademarks and Other Intangible
Trademarks and Other Intangibles, net (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Intangible Assets By Major Class [Line Items] | ||
Gross Carrying Amount | $ 284,016 | $ 347,567 |
Accumulated Amortization | 9,932 | 9,867 |
Net Carrying Amount | 274,084 | 337,700 |
Indefinite-lived trademarks and copyrights | ||
Intangible Assets By Major Class [Line Items] | ||
Indefinite-lived, Gross Carrying Amount | $ 274,080 | 337,631 |
Minimum | ||
Intangible Assets By Major Class [Line Items] | ||
Estimated Lives in Years | 1 year | |
Maximum | ||
Intangible Assets By Major Class [Line Items] | ||
Estimated Lives in Years | 15 years | |
Trademarks | ||
Intangible Assets By Major Class [Line Items] | ||
Finite Lived, Gross Carrying Amount | $ 8,958 | 8,958 |
Accumulated Amortization | $ 8,958 | 8,958 |
Trademarks | Minimum | ||
Intangible Assets By Major Class [Line Items] | ||
Estimated Lives in Years | 10 years | |
Trademarks | Maximum | ||
Intangible Assets By Major Class [Line Items] | ||
Estimated Lives in Years | 15 years | |
Licensing contracts | ||
Intangible Assets By Major Class [Line Items] | ||
Finite Lived, Gross Carrying Amount | $ 978 | 978 |
Accumulated Amortization | $ 974 | $ 909 |
Licensing contracts | Minimum | ||
Intangible Assets By Major Class [Line Items] | ||
Estimated Lives in Years | 1 year | |
Licensing contracts | Maximum | ||
Intangible Assets By Major Class [Line Items] | ||
Estimated Lives in Years | 9 years |
Consolidated Entities, Joint _3
Consolidated Entities, Joint Ventures and Investments - Additional Information (Detail) ₨ in Millions | Mar. 31, 2018 | Apr. 26, 2011USD ($) | Jul. 31, 2019USD ($) | Jul. 31, 2018USD ($) | Jun. 30, 2018 | Apr. 30, 2018 | Jul. 31, 2017USD ($) | Oct. 31, 2016USD ($) | Jul. 31, 2016USD ($) | Feb. 28, 2015USD ($) | Dec. 31, 2014USD ($) | Sep. 30, 2014USD ($) | Jun. 30, 2014USD ($) | Jan. 31, 2014USD ($) | Oct. 31, 2013USD ($) | Jul. 31, 2013USD ($) | Jun. 30, 2013USD ($) | Feb. 28, 2013USD ($) | Dec. 31, 2012USD ($) | Jun. 30, 2012USD ($) | Mar. 31, 2010USD ($) | May 31, 2009USD ($)shares | Dec. 31, 2019USD ($) | Sep. 30, 2019USD ($) | Mar. 31, 2018USD ($) | Sep. 30, 2017USD ($) | Dec. 31, 2018USD ($) | Jun. 30, 2018USD ($) | Dec. 31, 2019USD ($)Multiplier | Dec. 31, 2018USD ($)Multiplier | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Jan. 31, 2018USD ($) | Jun. 30, 2017USD ($) | Nov. 30, 2013USD ($) | Sep. 30, 2013USD ($) | Jun. 30, 2012INR (₨) | Dec. 31, 2009 | |
Schedule Of Investments [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Redeemable non-controlling interest | $ 34,461,000 | $ 34,137,000 | $ 34,461,000 | $ 34,137,000 | ||||||||||||||||||||||||||||||||||||||
Type of Revenue [Extensible List] | us-gaap:LicenseMember | us-gaap:LicenseMember | ||||||||||||||||||||||||||||||||||||||||
Additional equity interest acquisition date | 2017-02 | |||||||||||||||||||||||||||||||||||||||||
Investment impairment | $ 26,613,000 | $ 2,500,000 | ||||||||||||||||||||||||||||||||||||||||
Noncontrolling interest | 26,521,000 | 26,999,000 | 26,521,000 | 26,999,000 | ||||||||||||||||||||||||||||||||||||||
Revenue reorganized from accrued assets | 800,000 | |||||||||||||||||||||||||||||||||||||||||
Selling general and administrative expenses increased | 200,000 | |||||||||||||||||||||||||||||||||||||||||
Net income attributable to noncontrolling interest | $ 300,000 | |||||||||||||||||||||||||||||||||||||||||
Impairment of equity method investment | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||
Distributions from equity investments | 2,681,000 | 3,021,000 | ||||||||||||||||||||||||||||||||||||||||
Complex Media Inc. | ||||||||||||||||||||||||||||||||||||||||||
Schedule Of Investments [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Cash received from escrow | $ 1,000,000 | |||||||||||||||||||||||||||||||||||||||||
Gain on sale of investments | 1,000,000 | |||||||||||||||||||||||||||||||||||||||||
Lee Cooper And Umbro Brands | ||||||||||||||||||||||||||||||||||||||||||
Schedule Of Investments [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Business acquisition purchase price, cash paid | $ 3,500,000 | |||||||||||||||||||||||||||||||||||||||||
Percentage of interest sold in equity method investment | 70.00% | |||||||||||||||||||||||||||||||||||||||||
Business acquisition total purchase price | $ 24,700,000 | |||||||||||||||||||||||||||||||||||||||||
Company purchased the Umbro China and Lee Cooper brands | 24,700,000 | |||||||||||||||||||||||||||||||||||||||||
Note receivable | 9,400,000 | |||||||||||||||||||||||||||||||||||||||||
Business consideration payable | 2,100,000 | 2,100,000 | ||||||||||||||||||||||||||||||||||||||||
Adjustments to additional paid in capital of excess purchase price over non-controlling interest | 2,200,000 | |||||||||||||||||||||||||||||||||||||||||
Lee Cooper And Umbro Brands | Accounts Payable And Accrued Liabilities | ||||||||||||||||||||||||||||||||||||||||||
Schedule Of Investments [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | 5,200,000 | |||||||||||||||||||||||||||||||||||||||||
Lee Cooper And Umbro Brands | Other Noncurrent Liabilities | ||||||||||||||||||||||||||||||||||||||||||
Schedule Of Investments [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | 5,400,000 | |||||||||||||||||||||||||||||||||||||||||
Hong Kong MH Umbro International Co. Limited | ||||||||||||||||||||||||||||||||||||||||||
Schedule Of Investments [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Business acquisition purchase price, cash paid | $ 25,000,000 | |||||||||||||||||||||||||||||||||||||||||
Business acquisition completion period | 4 years | |||||||||||||||||||||||||||||||||||||||||
Equity ownership percentage | 50.00% | |||||||||||||||||||||||||||||||||||||||||
LiNing | ||||||||||||||||||||||||||||||||||||||||||
Schedule Of Investments [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Equity Interest Acquisition Commencement Date | Jun. 30, 2020 | |||||||||||||||||||||||||||||||||||||||||
Equity Interest Sale Cash Consideration On Commencement Date | $ 5,400,000 | |||||||||||||||||||||||||||||||||||||||||
Alberta ULC | ||||||||||||||||||||||||||||||||||||||||||
Schedule Of Investments [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Business acquisition purchase price, cash paid | $ 76,500,000 | |||||||||||||||||||||||||||||||||||||||||
Ownership interest acquired | 51.00% | |||||||||||||||||||||||||||||||||||||||||
Modern Amusement | ||||||||||||||||||||||||||||||||||||||||||
Schedule Of Investments [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Business acquisition purchase price, cash paid | $ 5,000,000 | |||||||||||||||||||||||||||||||||||||||||
Ownership interest acquired | 51.00% | |||||||||||||||||||||||||||||||||||||||||
Hardy Way | ||||||||||||||||||||||||||||||||||||||||||
Schedule Of Investments [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Business acquisition purchase price, cash paid | $ 9,000,000 | |||||||||||||||||||||||||||||||||||||||||
Ownership interest acquired | 85.00% | 50.00% | ||||||||||||||||||||||||||||||||||||||||
Business acquisition total purchase price | $ 62,000,000 | $ 17,000,000 | ||||||||||||||||||||||||||||||||||||||||
Business acquisition purchase price, common stock issued, shares | shares | 58,868 | |||||||||||||||||||||||||||||||||||||||||
Business acquisition purchase price, common stock issued, value | $ 8,000,000 | |||||||||||||||||||||||||||||||||||||||||
Hardy Way | Addition capital | ||||||||||||||||||||||||||||||||||||||||||
Schedule Of Investments [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Business acquisition purchase price, common stock issued, value | $ 1,000,000 | |||||||||||||||||||||||||||||||||||||||||
Umbro China Limited | Hong Kong MH Umbro International Co. Limited | ||||||||||||||||||||||||||||||||||||||||||
Schedule Of Investments [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Proceeds from sale of interest | $ 2,500,000 | |||||||||||||||||||||||||||||||||||||||||
Percentage of interest sold | 5.00% | |||||||||||||||||||||||||||||||||||||||||
Noncontrolling interest | 1,800,000 | 1,800,000 | ||||||||||||||||||||||||||||||||||||||||
Reliance Brands Limited | ||||||||||||||||||||||||||||||||||||||||||
Schedule Of Investments [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Additional amount agreed to be contributed as working capital | $ 500,000 | ₨ 25 | ||||||||||||||||||||||||||||||||||||||||
MG Icon | ||||||||||||||||||||||||||||||||||||||||||
Schedule Of Investments [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Ownership interest acquired | 50.00% | |||||||||||||||||||||||||||||||||||||||||
Payments to acquire ownership interest | $ 4,000,000 | |||||||||||||||||||||||||||||||||||||||||
Business acquisition total purchase price | 20,000,000 | |||||||||||||||||||||||||||||||||||||||||
Business consideration payable | $ 3,000,000 | |||||||||||||||||||||||||||||||||||||||||
Distributions from equity investments | $ 23,000,000 | |||||||||||||||||||||||||||||||||||||||||
Administrative Manager | ||||||||||||||||||||||||||||||||||||||||||
Schedule Of Investments [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Percentage of gross revenue paid monthly as services fee | 5.00% | |||||||||||||||||||||||||||||||||||||||||
Local Manager | ||||||||||||||||||||||||||||||||||||||||||
Schedule Of Investments [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Percentage of gross revenue paid monthly as services fee | 15.00% | |||||||||||||||||||||||||||||||||||||||||
Minimum | LiNing | ||||||||||||||||||||||||||||||||||||||||||
Schedule Of Investments [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Aggregate percentage of interest in newly registered company in Hong Kong | 30.00% | |||||||||||||||||||||||||||||||||||||||||
Minimum | MG Icon | ||||||||||||||||||||||||||||||||||||||||||
Schedule Of Investments [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Preferred profit distribution to the Company | $ 23,000,000 | |||||||||||||||||||||||||||||||||||||||||
Maximum | Hong Kong MH Umbro International Co. Limited | ||||||||||||||||||||||||||||||||||||||||||
Schedule Of Investments [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Aggregate percentage of interest in newly registered company in Hong Kong | 50.00% | |||||||||||||||||||||||||||||||||||||||||
Maximum | LiNing | ||||||||||||||||||||||||||||||||||||||||||
Schedule Of Investments [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Aggregate percentage of interest in newly registered company in Hong Kong | 50.00% | |||||||||||||||||||||||||||||||||||||||||
Aggregate Cash Consideration Payment Increase | $ 8,600,000 | |||||||||||||||||||||||||||||||||||||||||
Iconix Middle East | ||||||||||||||||||||||||||||||||||||||||||
Schedule Of Investments [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Percentage of interest sold in equity method investment | 50.00% | 50.00% | ||||||||||||||||||||||||||||||||||||||||
Agreed price for sale of interest in a subsidiary | $ 18,800,000 | $ 18,800,000 | ||||||||||||||||||||||||||||||||||||||||
Payment received upon sale interest in subsidiary | 6,300,000 | |||||||||||||||||||||||||||||||||||||||||
Receivable for investments sold | $ 12,500,000 | 12,500,000 | ||||||||||||||||||||||||||||||||||||||||
Committed amount receivable period | 24 months | |||||||||||||||||||||||||||||||||||||||||
Redeemable non-controlling interest | 20,800,000 | $ 20,800,000 | ||||||||||||||||||||||||||||||||||||||||
Agreement Percentage | 120.00% | 120.00% | ||||||||||||||||||||||||||||||||||||||||
Payment made to subsidiary for diligence and Market analysis | $ 3,100,000 | |||||||||||||||||||||||||||||||||||||||||
Percentage of additional equity interest to be acquired by exercising call right | 5.00% | |||||||||||||||||||||||||||||||||||||||||
Equity method investment cash Consideration | $ 1,800,000 | |||||||||||||||||||||||||||||||||||||||||
Increased ownership percentage | 55.00% | |||||||||||||||||||||||||||||||||||||||||
Iconix Middle East | Five-Year Put/Call Options | ||||||||||||||||||||||||||||||||||||||||||
Schedule Of Investments [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Put/Call option period | 6 months | |||||||||||||||||||||||||||||||||||||||||
Put/Call option commencement date | Mar. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||
Multiplier on put and call options | Multiplier | 5.5 | |||||||||||||||||||||||||||||||||||||||||
Iconix Middle East | Five-Year Put/Call Options | Minimum | ||||||||||||||||||||||||||||||||||||||||||
Schedule Of Investments [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Royalty revenue | $ 12,000,000 | |||||||||||||||||||||||||||||||||||||||||
Type of Revenue [Extensible List] | us-gaap:RoyaltyMember | |||||||||||||||||||||||||||||||||||||||||
Iconix Middle East | Eight-Year Put/Call Options | ||||||||||||||||||||||||||||||||||||||||||
Schedule Of Investments [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Put/Call option period | 6 months | |||||||||||||||||||||||||||||||||||||||||
Put/Call option commencement date | Dec. 19, 2022 | |||||||||||||||||||||||||||||||||||||||||
Multiplier on put and call options | Multiplier | 5.5 | |||||||||||||||||||||||||||||||||||||||||
Iconix Middle East | Eight-Year Put/Call Options | Minimum | ||||||||||||||||||||||||||||||||||||||||||
Schedule Of Investments [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Royalty revenue | $ 12,000,000 | |||||||||||||||||||||||||||||||||||||||||
Type of Revenue [Extensible List] | us-gaap:RoyaltyMember | |||||||||||||||||||||||||||||||||||||||||
Iconix Israel | ||||||||||||||||||||||||||||||||||||||||||
Schedule Of Investments [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Percentage of interest sold in equity method investment | 50.00% | |||||||||||||||||||||||||||||||||||||||||
Price for sale of interest in a subsidiary | $ 3,300,000 | |||||||||||||||||||||||||||||||||||||||||
Iconix Canada | ||||||||||||||||||||||||||||||||||||||||||
Schedule Of Investments [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Percentage of interest sold in equity method investment | 50.00% | |||||||||||||||||||||||||||||||||||||||||
Agreed price for sale of interest in a subsidiary | $ 17,800,000 | |||||||||||||||||||||||||||||||||||||||||
Payment received upon sale interest in subsidiary | 8,900,000 | |||||||||||||||||||||||||||||||||||||||||
Receivable for investments sold | $ 8,900,000 | |||||||||||||||||||||||||||||||||||||||||
Committed amount receivable period | 5 years | |||||||||||||||||||||||||||||||||||||||||
Iconix Europe | ||||||||||||||||||||||||||||||||||||||||||
Schedule Of Investments [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Ownership interest acquired | 1.00% | |||||||||||||||||||||||||||||||||||||||||
Percentage of interest sold in equity method investment | 50.00% | |||||||||||||||||||||||||||||||||||||||||
Payment received upon sale interest in subsidiary | $ 1,500,000 | $ 4,000,000 | ||||||||||||||||||||||||||||||||||||||||
Redeemable non-controlling interest | 8,700,000 | $ 8,700,000 | ||||||||||||||||||||||||||||||||||||||||
Agreement Percentage | 120.00% | |||||||||||||||||||||||||||||||||||||||||
Equity interest acquired | 51.00% | |||||||||||||||||||||||||||||||||||||||||
Business Combination, Bargain Purchase, Revenue Recognized, Amount | $ 1,500,000 | |||||||||||||||||||||||||||||||||||||||||
Preferred profit distribution to the Company | $ 3,000,000 | |||||||||||||||||||||||||||||||||||||||||
Iconix Europe | Five-Year Put/Call Options | ||||||||||||||||||||||||||||||||||||||||||
Schedule Of Investments [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Put/Call option period | 6 months | |||||||||||||||||||||||||||||||||||||||||
Put/Call option commencement date | Mar. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||
Multiplier on put and call options | Multiplier | 5.5 | |||||||||||||||||||||||||||||||||||||||||
Iconix Europe | Eight-Year Put/Call Options | ||||||||||||||||||||||||||||||||||||||||||
Schedule Of Investments [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Put/Call option period | 6 months | |||||||||||||||||||||||||||||||||||||||||
Put/Call option commencement date | Jan. 13, 2022 | |||||||||||||||||||||||||||||||||||||||||
Multiplier on put and call options | Multiplier | 5.5 | |||||||||||||||||||||||||||||||||||||||||
Iconix Australia | ||||||||||||||||||||||||||||||||||||||||||
Schedule Of Investments [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Percentage of interest sold in equity method investment | 50.00% | |||||||||||||||||||||||||||||||||||||||||
Price for sale of interest in a subsidiary | $ 7,200,000 | |||||||||||||||||||||||||||||||||||||||||
Gain on sale of interest in subsidiary | $ 4,100,000 | |||||||||||||||||||||||||||||||||||||||||
Iconix SE Asia, Ltd. | ||||||||||||||||||||||||||||||||||||||||||
Schedule Of Investments [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Percentage of interest sold in equity method investment | 50.00% | |||||||||||||||||||||||||||||||||||||||||
Agreed price for sale of interest in a subsidiary | $ 15,900,000 | |||||||||||||||||||||||||||||||||||||||||
Payment received upon sale interest in subsidiary | $ 4,000,000 | $ 7,500,000 | ||||||||||||||||||||||||||||||||||||||||
Receivable for investments sold | $ 4,500,000 | |||||||||||||||||||||||||||||||||||||||||
Committed amount receivable period | 24 months | |||||||||||||||||||||||||||||||||||||||||
Agreement Percentage | 120.00% | |||||||||||||||||||||||||||||||||||||||||
Price for sale of interest in a subsidiary | $ 12,000,000 | |||||||||||||||||||||||||||||||||||||||||
Marketing costs incurred | 5,400,000 | |||||||||||||||||||||||||||||||||||||||||
Fair value of options | 20,000,000 | $ 20,000,000 | ||||||||||||||||||||||||||||||||||||||||
Pre-tax gain on deconsolidation of entity | $ 3,800,000 | |||||||||||||||||||||||||||||||||||||||||
Iconix SE Asia, Ltd. | Level 3 | ||||||||||||||||||||||||||||||||||||||||||
Schedule Of Investments [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Equity-method investment at fair value | $ 17,400,000 | |||||||||||||||||||||||||||||||||||||||||
Iconix SE Asia, Ltd. | Lee Cooper And Umbro Brands | ||||||||||||||||||||||||||||||||||||||||||
Schedule Of Investments [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Agreed price for sale of interest in a subsidiary | $ 21,500,000 | |||||||||||||||||||||||||||||||||||||||||
Payment received upon sale interest in subsidiary | 4,300,000 | |||||||||||||||||||||||||||||||||||||||||
Guaranteed minimum distributions | $ 5,100,000 | |||||||||||||||||||||||||||||||||||||||||
Iconix SE Asia, Ltd. | Administrative Manager | ||||||||||||||||||||||||||||||||||||||||||
Schedule Of Investments [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Percentage of gross revenue paid monthly as services fee | 5.00% | |||||||||||||||||||||||||||||||||||||||||
Iconix SE Asia, Ltd. | Local Manager | ||||||||||||||||||||||||||||||||||||||||||
Schedule Of Investments [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Percentage of gross revenue paid monthly as services fee | 15.00% | |||||||||||||||||||||||||||||||||||||||||
Iconix SE Asia, Ltd. | Minimum | Guarantee of Business Revenue | ||||||||||||||||||||||||||||||||||||||||||
Schedule Of Investments [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Guaranteed minimum distributions | $ 2,500,000 | |||||||||||||||||||||||||||||||||||||||||
Iconix SE Asia, Ltd. | Five-Year Put/Call Options | ||||||||||||||||||||||||||||||||||||||||||
Schedule Of Investments [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Put/Call option period | 6 months | |||||||||||||||||||||||||||||||||||||||||
Put/Call option commencement date | Mar. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||
Iconix SE Asia, Ltd. | Five-Year Put/Call Options | Europe | ||||||||||||||||||||||||||||||||||||||||||
Schedule Of Investments [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Multiplier on put and call options | Multiplier | 5.5 | |||||||||||||||||||||||||||||||||||||||||
Iconix SE Asia, Ltd. | Five-Year Put/Call Options | Minimum | Europe | ||||||||||||||||||||||||||||||||||||||||||
Schedule Of Investments [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Agreed Value | $ 7,600,000 | $ 7,600,000 | ||||||||||||||||||||||||||||||||||||||||
Iconix SE Asia, Ltd. | Eight-Year Put/Call Options | ||||||||||||||||||||||||||||||||||||||||||
Schedule Of Investments [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Put/Call option period | 6 months | |||||||||||||||||||||||||||||||||||||||||
Put/Call option commencement date | Oct. 1, 2021 | |||||||||||||||||||||||||||||||||||||||||
Iconix SE Asia, Ltd. | Eight-Year Put/Call Options | Europe | ||||||||||||||||||||||||||||||||||||||||||
Schedule Of Investments [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Multiplier on put and call options | Multiplier | 5.5 | |||||||||||||||||||||||||||||||||||||||||
Iconix SE Asia, Ltd. | Eight-Year Put/Call Options | Minimum | Europe | ||||||||||||||||||||||||||||||||||||||||||
Schedule Of Investments [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Agreed Value | $ 7,600,000 | $ 7,600,000 | ||||||||||||||||||||||||||||||||||||||||
Global Brands Group Asia Limited | ||||||||||||||||||||||||||||||||||||||||||
Schedule Of Investments [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Ownership interest acquired | 50.00% | |||||||||||||||||||||||||||||||||||||||||
Iconix Lifestyle India Private Limited | ||||||||||||||||||||||||||||||||||||||||||
Schedule Of Investments [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Percentage of interest sold in equity method investment | 50.00% | 50.00% | ||||||||||||||||||||||||||||||||||||||||
Payment received upon sale interest in subsidiary | $ 2,000,000 | |||||||||||||||||||||||||||||||||||||||||
Receivable for investments sold | $ 4,000,000 | |||||||||||||||||||||||||||||||||||||||||
Committed amount receivable period | 48 months | |||||||||||||||||||||||||||||||||||||||||
Price for sale of interest in a subsidiary | $ 6,000,000 | |||||||||||||||||||||||||||||||||||||||||
Net gain recognized on sale of interest in subsidiary | $ 2,300,000 | |||||||||||||||||||||||||||||||||||||||||
Iconix Lifestyle India Private Limited | Note Receivable | ||||||||||||||||||||||||||||||||||||||||||
Schedule Of Investments [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Receivable for investments sold | 1,000,000 | 1,000,000 | ||||||||||||||||||||||||||||||||||||||||
MG Icon | ||||||||||||||||||||||||||||||||||||||||||
Schedule Of Investments [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Payments to acquire ownership interest | 2,600,000 | 2,600 | ||||||||||||||||||||||||||||||||||||||||
Investment impairment | $ 9,600,000 | $ 9,600,000 | ||||||||||||||||||||||||||||||||||||||||
Pony International, LLC. | ||||||||||||||||||||||||||||||||||||||||||
Schedule Of Investments [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Business acquisition purchase price, cash paid | $ 37,000,000 | |||||||||||||||||||||||||||||||||||||||||
Ownership interest acquired | 75.00% | |||||||||||||||||||||||||||||||||||||||||
Percentage of minority interest in subsidiary | 25.00% | |||||||||||||||||||||||||||||||||||||||||
Goodwill | $ 14,700,000 | |||||||||||||||||||||||||||||||||||||||||
Iconix Canada | ||||||||||||||||||||||||||||||||||||||||||
Schedule Of Investments [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Payment received upon sale interest in subsidiary | $ 2,900,000 | |||||||||||||||||||||||||||||||||||||||||
Percentage of purchase of ownership interest | 50.00% | |||||||||||||||||||||||||||||||||||||||||
Purchase of ownership interest | $ 19,000,000 | |||||||||||||||||||||||||||||||||||||||||
Percentage of net asset value | 50.00% | |||||||||||||||||||||||||||||||||||||||||
Net asset value | $ 2,200,000 | |||||||||||||||||||||||||||||||||||||||||
Payments to acquire ownership interest | 9,000,000 | |||||||||||||||||||||||||||||||||||||||||
Remaining payments to acquire ownership interest | $ 10,000,000 | |||||||||||||||||||||||||||||||||||||||||
Company ownership interest | 100.00% | |||||||||||||||||||||||||||||||||||||||||
Percentage of estimated net asset value paid | 50.00% | |||||||||||||||||||||||||||||||||||||||||
Buffalo Brand Joint Venture | ||||||||||||||||||||||||||||||||||||||||||
Schedule Of Investments [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Company ownership interest | 51.00% | |||||||||||||||||||||||||||||||||||||||||
Iconix Europe | ||||||||||||||||||||||||||||||||||||||||||
Schedule Of Investments [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Percentage of minority interest in subsidiary | 49.00% | |||||||||||||||||||||||||||||||||||||||||
Hydraulic IP Holdings | ||||||||||||||||||||||||||||||||||||||||||
Schedule Of Investments [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Business acquisition purchase price, cash paid | $ 6,000,000 | |||||||||||||||||||||||||||||||||||||||||
Ownership interest acquired | 51.00% | 51.00% | ||||||||||||||||||||||||||||||||||||||||
Top On International Group, LLC | ||||||||||||||||||||||||||||||||||||||||||
Schedule Of Investments [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Percentage of minority interest in subsidiary | 49.00% | 49.00% | ||||||||||||||||||||||||||||||||||||||||
Hydraulic IP Holdings LLC | Variable Interest Entity, Primary Beneficiary | ||||||||||||||||||||||||||||||||||||||||||
Schedule Of Investments [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Ownership interest acquired | 49.00% | |||||||||||||||||||||||||||||||||||||||||
Company ownership interest | 51.00% | |||||||||||||||||||||||||||||||||||||||||
Ownership interest | 100.00% | |||||||||||||||||||||||||||||||||||||||||
I Brands International L L C | ||||||||||||||||||||||||||||||||||||||||||
Schedule Of Investments [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Company ownership interest | 15.00% | 15.00% | ||||||||||||||||||||||||||||||||||||||||
Investment impairment | $ 2,500,000 | |||||||||||||||||||||||||||||||||||||||||
Buffalo International Unlimited Liability Corporation | ||||||||||||||||||||||||||||||||||||||||||
Schedule Of Investments [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Percentage of minority interest in subsidiary | 49.00% | |||||||||||||||||||||||||||||||||||||||||
Umbro China Limited | ||||||||||||||||||||||||||||||||||||||||||
Schedule Of Investments [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Company ownership interest | 100.00% | 100.00% | ||||||||||||||||||||||||||||||||||||||||
Umbro China Limited | Hong Kong MH Umbro International Co. Limited | ||||||||||||||||||||||||||||||||||||||||||
Schedule Of Investments [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Ownership interest acquired | 5.00% | |||||||||||||||||||||||||||||||||||||||||
Payments to acquire ownership interest | $ 1,300,000 | |||||||||||||||||||||||||||||||||||||||||
Starter China Limited | ||||||||||||||||||||||||||||||||||||||||||
Schedule Of Investments [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Company ownership interest | [1] | 100.00% | 100.00% | |||||||||||||||||||||||||||||||||||||||
Starter China Limited | Photosynthesis Holdings, Co. Ltd | ||||||||||||||||||||||||||||||||||||||||||
Schedule Of Investments [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Business acquisition completion period | 3 years | |||||||||||||||||||||||||||||||||||||||||
Equity Interest Acquisition Commencement Date | Jan. 16, 2022 | |||||||||||||||||||||||||||||||||||||||||
Additional percentage of ownership interest sold | 10.00% | 10.00% | ||||||||||||||||||||||||||||||||||||||||
Starter China Limited | Photosynthesis Holdings, Co. Ltd | Sale Agreement Over Three-Year Period from January 15, 2020 | ||||||||||||||||||||||||||||||||||||||||||
Schedule Of Investments [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Cash consideration from sale of equity interest | $ 20,000,000 | |||||||||||||||||||||||||||||||||||||||||
Starter China Limited | Photosynthesis Holdings, Co. Ltd | Sale Agreement Over Three-Year Period from January 16, 2022 | ||||||||||||||||||||||||||||||||||||||||||
Schedule Of Investments [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Cash consideration from sale of equity interest | $ 2,700,000 | |||||||||||||||||||||||||||||||||||||||||
Percentage of royalty received as consideration | 2.50% | |||||||||||||||||||||||||||||||||||||||||
Starter China Limited | Minimum | Photosynthesis Holdings, Co. Ltd | ||||||||||||||||||||||||||||||||||||||||||
Schedule Of Investments [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Percentage of minority interest in subsidiary | 50.00% | 50.00% | ||||||||||||||||||||||||||||||||||||||||
Starter China Limited | Maximum | Photosynthesis Holdings, Co. Ltd | ||||||||||||||||||||||||||||||||||||||||||
Schedule Of Investments [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Percentage of minority interest in subsidiary | 60.00% | 60.00% | ||||||||||||||||||||||||||||||||||||||||
Lee Cooper China | ||||||||||||||||||||||||||||||||||||||||||
Schedule Of Investments [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Company ownership interest | [2] | 100.00% | 100.00% | |||||||||||||||||||||||||||||||||||||||
Lee Cooper China | POS Lee Cooper HK Co. Ltd | ||||||||||||||||||||||||||||||||||||||||||
Schedule Of Investments [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Business acquisition completion period | 2 years | |||||||||||||||||||||||||||||||||||||||||
Equity Interest Acquisition Commencement Date | Jan. 15, 2024 | |||||||||||||||||||||||||||||||||||||||||
Additional percentage of ownership interest sold | 10.00% | 10.00% | ||||||||||||||||||||||||||||||||||||||||
Lee Cooper China | POS Lee Cooper HK Co. Ltd | Sale Agreement Over Four-Year Period from October 15, 2020 | ||||||||||||||||||||||||||||||||||||||||||
Schedule Of Investments [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Cash consideration from sale of equity interest | $ 8,200,000 | |||||||||||||||||||||||||||||||||||||||||
Lee Cooper China | POS Lee Cooper HK Co. Ltd | Sale Agreement Over Two-Year Period from January 15, 2024 | ||||||||||||||||||||||||||||||||||||||||||
Schedule Of Investments [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Cash consideration from sale of equity interest | $ 2,500,000 | |||||||||||||||||||||||||||||||||||||||||
Percentage of royalty received as consideration | 2.50% | |||||||||||||||||||||||||||||||||||||||||
Lee Cooper China | Minimum | POS Lee Cooper HK Co. Ltd | ||||||||||||||||||||||||||||||||||||||||||
Schedule Of Investments [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Percentage of minority interest in subsidiary | 50.00% | 50.00% | ||||||||||||||||||||||||||||||||||||||||
Lee Cooper China | Maximum | POS Lee Cooper HK Co. Ltd | ||||||||||||||||||||||||||||||||||||||||||
Schedule Of Investments [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Percentage of minority interest in subsidiary | 60.00% | 60.00% | ||||||||||||||||||||||||||||||||||||||||
Iconix Australia | ||||||||||||||||||||||||||||||||||||||||||
Schedule Of Investments [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Business acquisition purchase price, cash paid | $ 700,000 | |||||||||||||||||||||||||||||||||||||||||
Ownership interest acquired | 5.00% | 5.00% | 5.00% | |||||||||||||||||||||||||||||||||||||||
Percentage of minority interest in subsidiary | 45.00% | |||||||||||||||||||||||||||||||||||||||||
Redeemable non-controlling interest | $ 5,000,000 | $ 5,000,000 | ||||||||||||||||||||||||||||||||||||||||
Company ownership interest | 55.00% | |||||||||||||||||||||||||||||||||||||||||
Ownership interest | 50.00% | |||||||||||||||||||||||||||||||||||||||||
Business acquisition total purchase price | $ 13,013,000 | |||||||||||||||||||||||||||||||||||||||||
Cash payment for acquisition of assets | $ 5,900,000 | |||||||||||||||||||||||||||||||||||||||||
Iconix China | ||||||||||||||||||||||||||||||||||||||||||
Schedule Of Investments [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Company ownership interest | 100.00% | 100.00% | ||||||||||||||||||||||||||||||||||||||||
Additional amount agreed to be contributed as working capital | $ 2,000,000 | ₨ 100 | ||||||||||||||||||||||||||||||||||||||||
Marcy Media Holdings | ||||||||||||||||||||||||||||||||||||||||||
Schedule Of Investments [Line Items] | ||||||||||||||||||||||||||||||||||||||||||
Percentage of minority interest in subsidiary | 5.00% | |||||||||||||||||||||||||||||||||||||||||
Payment received upon sale interest in subsidiary | $ 15,000,000 | |||||||||||||||||||||||||||||||||||||||||
Cash payment for acquisition of assets | $ 32,000,000 | |||||||||||||||||||||||||||||||||||||||||
Write-off of receivable due from Iconix India joint venture partner | $ 17,000,000 | |||||||||||||||||||||||||||||||||||||||||
[1] | In March 2018, the Company formed the Starter China Limited as a wholly owned subsidiary to hold the Starter trademarks and related assets in respect of the Greater China territory. The Company entered into an agreement with Photosynthesis Holdings, Co. Ltd. (“PHL”) who will purchase no less than a 50% interest and up to a total of 60% interest in Starter China Limited. The purchase of the equity interest is expected to occur over a three-year period commencing on January 16, 2022. Refer to Note 4 for further details. As of December 31, 2019, the Company’s ownership interest in Starter China Limited was 100%. | |||||||||||||||||||||||||||||||||||||||||
[2] | In June 2018, the Company formed the Lee Cooper China Limited as a wholly-owned subsidiary to hold the Lee Cooper trademarks and related assets in respect of the Greater China territory. The Company entered into an agreement with POS Lee Cooper HK Co. Ltd. (“PLC”) who will purchase no less than a 50% interest and up to a total of 60% interest in Lee Cooper China Limited. The purchase of the equity interest is expected to occur over a two-year period commencing on January 15, 2024. Refer to Note 4 for further details. As of December 31, 2019, the Company’s ownership interest in Lee Cooper China Limited was 100%. |
Consolidated Entities, Joint _4
Consolidated Entities, Joint Ventures and Investments - Summary of Estimated Fair Value of Assets Acquired Less Liabilities Assumed (Detail) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Jul. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2017 | |
Business Acquisition [Line Items] | ||||
Gain on re-measurement of initial equity investment | $ 8,410 | |||
Goodwill | $ 26,099 | $ 26,099 | $ 63,882 | |
Iconix Australia | ||||
Business Acquisition [Line Items] | ||||
Fair value of 50% interest in Iconix Australia | $ 6,507 | |||
Book value of Company equity investment prior to purchase of additional 5% interest | (1,904) | |||
Gain on re-measurement of initial equity investment | 8,410 | |||
Total consideration paid | 13,013 | |||
Trademarks | 12,349 | |||
Cash | 44 | |||
Accounts receivable | 360 | |||
Intercompany receivables, net | 368 | |||
Accounts payable and accrued expenses | (85) | |||
Deferred revenue | (52) | |||
Goodwill | 29 | |||
Net assets acquired | $ 13,013 |
Consolidated Entities, Joint _5
Consolidated Entities, Joint Ventures and Investments - Summary of Estimated Fair Value of Assets Acquired Less Liabilities Assumed (Parenthetical) (Detail) - Iconix Australia | 1 Months Ended | |
Jul. 31, 2018 | Dec. 31, 2018 | |
Business Acquisition [Line Items] | ||
Ownership interest | 50.00% | |
Ownership interest acquired | 5.00% | 5.00% |
Consolidated Entities, Joint _6
Consolidated Entities, Joint Ventures and Investments - Equity Method Investments (Detail) - Iconix China $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Schedule Of Equity Method Investments [Line Items] | |
Value of Investment | $ 22,586 |
Candies Shanghai Fashion Co., Ltd. | |
Schedule Of Equity Method Investments [Line Items] | |
Brands Placed | Candie’s |
Ownership by Iconix China | 20.00% |
Value of Investment | $ 10,100 |
Shanghai MuXiang Apparel & Accessory Co. Limited | |
Schedule Of Equity Method Investments [Line Items] | |
Brands Placed | Marc Ecko |
Ownership by Iconix China | 15.00% |
Value of Investment | $ 2,270 |
Ningbo Material Girl Fashion Co., Ltd | |
Schedule Of Equity Method Investments [Line Items] | |
Brands Placed | Material Girl |
Ownership by Iconix China | 0.00% |
Ai Xi Enterprise (Shanghai) Co. Limited | |
Schedule Of Equity Method Investments [Line Items] | |
Brands Placed | Ecko Unltd |
Ownership by Iconix China | 20.00% |
Value of Investment | $ 10,216 |
Consolidated Entities, Joint _7
Consolidated Entities, Joint Ventures and Investments - Equity Method Investments (Parenthetical) (Detail) - Ningbo Material Girl Fashion Co., Ltd - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2019 | |
Ningbo Peacebird Fashion & Accessories Co. Ltd. | ||
Schedule Of Equity Method Investments [Line Items] | ||
Percentage of equity ownership interest sold | 20.00% | |
Sale of ownership interest | $ 3 | |
Sale price reduction by initial cash investments | 0.2 | |
Brand management expenses incurred | 0.6 | |
Payment received upon sale interest in subsidiary | $ 2.2 | |
Purim LLC. | ||
Schedule Of Equity Method Investments [Line Items] | ||
Percentage of equity ownership interest sold | 33.30% | |
Sale of ownership interest | $ 0.7 | |
Payment received upon sale interest in subsidiary | $ 1.5 | |
Gain on sale of equity investments | $ 0.2 |
Schedule of Gains on Sale of Tr
Schedule of Gains on Sale of Trademarks, net (Detail) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018USD ($) | ||
Schedule Of Gain Loss On Investments Including Marketable Securities And Investments Held At Cost Income Statement Reported Amounts Summary [Line Items] | ||
Total net gains (losses) on sales of trademarks | $ 1,268 | |
Sharper Image Trademark | Iconix Southeast Asia | ||
Schedule Of Gain Loss On Investments Including Marketable Securities And Investments Held At Cost Income Statement Reported Amounts Summary [Line Items] | ||
Total net gains (losses) on sales of trademarks | 236 | [1] |
Sharper Image Trademark | Iconix Europe LLC | ||
Schedule Of Gain Loss On Investments Including Marketable Securities And Investments Held At Cost Income Statement Reported Amounts Summary [Line Items] | ||
Total net gains (losses) on sales of trademarks | 352 | [1] |
Sharper Image Trademark | Iconix MENA | ||
Schedule Of Gain Loss On Investments Including Marketable Securities And Investments Held At Cost Income Statement Reported Amounts Summary [Line Items] | ||
Total net gains (losses) on sales of trademarks | 250 | [1] |
Sharper Image Trademark | Iconix Australia | ||
Schedule Of Gain Loss On Investments Including Marketable Securities And Investments Held At Cost Income Statement Reported Amounts Summary [Line Items] | ||
Total net gains (losses) on sales of trademarks | 125 | [1] |
Badgley Mischka Trademark | Iconix Southeast Asia | ||
Schedule Of Gain Loss On Investments Including Marketable Securities And Investments Held At Cost Income Statement Reported Amounts Summary [Line Items] | ||
Total net gains (losses) on sales of trademarks | 478 | [2] |
Badgley Mischka Trademark | Iconix Europe LLC | ||
Schedule Of Gain Loss On Investments Including Marketable Securities And Investments Held At Cost Income Statement Reported Amounts Summary [Line Items] | ||
Total net gains (losses) on sales of trademarks | (244) | [2] |
Badgley Mischka Trademark | Iconix MENA | ||
Schedule Of Gain Loss On Investments Including Marketable Securities And Investments Held At Cost Income Statement Reported Amounts Summary [Line Items] | ||
Total net gains (losses) on sales of trademarks | $ 71 | [2] |
[1] | In December 2016, the Company sold the rights to the Sharper Image intellectual property and related assets to 360 Holdings, Inc. for $100.0 million in cash (of which $1.8 million is being held in escrow for the sale of the Sharper Image intellectual property in the Company’s international joint ventures). The Company recognized a gain of $28.1 million as a result of this transaction. The Sharper Image intellectual property and related assets within other foreign territories is owned by certain of the Company’s joint venture entities and required the Company to negotiate and finalize the sale of the intellectual property with its respective joint venture partners. In September 2017, the Company sold its interest in the Sharper Image trademark in Canada for $0.5 million in cash. The Company recognized a gain of $0.5 million as a result of this transaction. In FY 2018, the Company recognized an additional combined gain of approximately $1.0 million upon final execution of the agreement for the sale of the Sharper Image intellectual property and related assets which were previously owned by the Iconix Southeast Asia, Iconix Europe, Iconix MENA, and Iconix Australia joint ventures resulting in an aggregate gain on the sale of the brand of $29.6 million. | |
[2] | In February 2016, the Company sold its rights to the Badgley Mischka intellectual property and related assets to Titan Industries, Inc. in partnership with the founders, Mark Badgley and James Mischka, and the apparel license MJCLK LLC for $13.8 million in cash. The Company recognized a gain of $11.6 million as a result of this transaction. The $11.6 million gain represented the sale of the Badgley Mischka intellectual property and related assets within the United States, Greater China, Israel and Latin America territories. The Badgley Mischka intellectual property and related assets within other foreign territories is owned by certain of the Company’s joint venture entities and required the Company to negotiate and finalize the sale of the intellectual property with its respective joint venture partners. In September 2017, the Company sold its interest in certain Badgley Mischka trademarks for shoes and handbags in Canada for $0.4 million in cash. The Company recognized a gain of $0.4 million as a result of this transaction. Additionally, in FY 2018, the Company recognized an additional combined gain of approximately $0.3 million upon final execution of the agreement for the sale of the Badgley Mischka intellectual property and related assets which were previously owned by the Iconix Southeast Asia, Iconix Europe and Iconix MENA joint ventures resulting in an aggregate gain on the sale of the brand of $12.3 million. |
Gains on Sale of Trademarks, _3
Gains on Sale of Trademarks, net - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Sep. 30, 2017 | Dec. 31, 2016 | Feb. 29, 2016 | Dec. 31, 2018 | |
Schedule Of Gain Loss On Investments Including Marketable Securities And Investments Held At Cost Income Statement Reported Amounts Summary [Line Items] | ||||
Net gains (losses) on sale of trademarks | $ 1,268 | |||
Badgley Mischka Intellectual Property / MJCLK Apparel License | ||||
Schedule Of Gain Loss On Investments Including Marketable Securities And Investments Held At Cost Income Statement Reported Amounts Summary [Line Items] | ||||
Proceeds from sale of rights | $ 13,800 | |||
Badgley Mischka Intellectual Property / MJCLK Apparel License | UNITED STATES | ||||
Schedule Of Gain Loss On Investments Including Marketable Securities And Investments Held At Cost Income Statement Reported Amounts Summary [Line Items] | ||||
Net gains (losses) on sale of trademarks | $ 11,600 | |||
Interest in Badgley Mischka Canada trademark | ||||
Schedule Of Gain Loss On Investments Including Marketable Securities And Investments Held At Cost Income Statement Reported Amounts Summary [Line Items] | ||||
Net gains (losses) on sale of trademarks | $ 400 | |||
Proceeds from sale of interest | 400 | |||
Badgley Mischka Intellectual Property and Related Assets | ||||
Schedule Of Gain Loss On Investments Including Marketable Securities And Investments Held At Cost Income Statement Reported Amounts Summary [Line Items] | ||||
Net gains (losses) on sale of trademarks | 300 | |||
Badgley Mischka Intellectual Property and Related Assets | ||||
Schedule Of Gain Loss On Investments Including Marketable Securities And Investments Held At Cost Income Statement Reported Amounts Summary [Line Items] | ||||
Net gains (losses) on sale of trademarks | 12,300 | |||
Sharper Image intellectual property and related assets | ||||
Schedule Of Gain Loss On Investments Including Marketable Securities And Investments Held At Cost Income Statement Reported Amounts Summary [Line Items] | ||||
Proceeds from sale of rights | $ 100,000 | |||
Net gains (losses) on sale of trademarks | 28,100 | 29,600 | ||
Held in escrow for sale of property | $ 1,800 | |||
Interest in Sharper Image Canada trademark | ||||
Schedule Of Gain Loss On Investments Including Marketable Securities And Investments Held At Cost Income Statement Reported Amounts Summary [Line Items] | ||||
Net gains (losses) on sale of trademarks | 500 | |||
Proceeds from sale of interest | $ 500 | |||
Sharper Image intellectual property and related assets | ||||
Schedule Of Gain Loss On Investments Including Marketable Securities And Investments Held At Cost Income Statement Reported Amounts Summary [Line Items] | ||||
Net gains (losses) on sale of trademarks | $ 1,000 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Impaired Long Lived Assets Held And Used [Line Items] | |||
Impairment of long-lived assets | $ 0 | $ 0 | |
Impairment of equity method investment | 26,613,000 | 2,500,000 | |
Fair value of other equity investments | $ 0 | 0 | 1,000,000 |
Decrease in fair value of other equity investments | (300,000) | ||
Impairment loss of contract assets | 5,143,000 | $ 1,777,000 | |
MG Icon | |||
Impaired Long Lived Assets Held And Used [Line Items] | |||
Impairment of equity method investment | 9,600,000 | 9,600,000 | |
Payments to acquire ownership interest | $ 2,600,000 | 2,600 | |
Marcy Media Holdings | |||
Impaired Long Lived Assets Held And Used [Line Items] | |||
Impairment of equity method investment | 17,000,000 | ||
Iconix China | |||
Impaired Long Lived Assets Held And Used [Line Items] | |||
Proceeds from sale of joint venture partners' interest | 700,000 | ||
New York Office Space | |||
Impaired Long Lived Assets Held And Used [Line Items] | |||
Impairment loss of contract assets | $ 1,800,000 |
Estimated Fair Values of Other
Estimated Fair Values of Other Financial Instruments (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |||
Long-term debt, including current portion, Carrying Amount | [1] | $ 645,721 | $ 675,229 |
Long-term debt, including current portion, Fair Value | [1] | $ 556,187 | $ 582,370 |
[1] | Carrying amounts include aggregate unamortized debt discount and debt issuance costs. |
Fair Value Option - Additional
Fair Value Option - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Feb. 22, 2018 | Sep. 30, 2017 | ||
Fair Value Option Qualitative Disclosures Related To Election [Line Items] | |||||
Debt instrument, interest rate, stated percentage | 5.75% | ||||
Long term debt, fair value | $ 47,277 | $ 48,076 | |||
Principal outstanding balance | [1] | $ 645,721 | $ 675,229 | ||
5.75% Senior Subordinated Notes Due August 2023 | |||||
Fair Value Option Qualitative Disclosures Related To Election [Line Items] | |||||
Debt instrument, interest rate, stated percentage | 5.75% | 5.75% | |||
Convertible Notes | |||||
Fair Value Option Qualitative Disclosures Related To Election [Line Items] | |||||
Debt instrument, interest rate, stated percentage | 1.50% | 1.50% | |||
Convertible Notes | 5.75% Senior Subordinated Notes Due August 2023 | |||||
Fair Value Option Qualitative Disclosures Related To Election [Line Items] | |||||
Debt instrument, interest rate, stated percentage | 5.75% | 5.75% | 5.75% | ||
Long term debt, fair value | $ 47,300 | ||||
Principal outstanding balance | 94,400 | ||||
Change in fair value of convertible notes | $ 3,900 | $ 81,000 | |||
[1] | Carrying amounts include aggregate unamortized debt discount and debt issuance costs. |
Net Carrying Amount of Debt (De
Net Carrying Amount of Debt (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | ||
Debt Instrument [Line Items] | ||||
Total debt | $ 647,435 | |||
Unamortized debt issuance costs | (1,714) | $ (4,738) | ||
Total debt | [1] | 645,721 | 675,229 | |
Less current maturities | 61,976 | 54,263 | ||
Total long-term debt | 583,745 | 620,966 | ||
Senior Secured Notes | ||||
Debt Instrument [Line Items] | ||||
Total debt | 338,130 | 365,481 | ||
Less current maturities | 42,700 | 42,700 | ||
Variable Funding Notes | ||||
Debt Instrument [Line Items] | ||||
Total debt | 99,610 | [2] | 95,273 | |
Senior Secured Term Loan | ||||
Debt Instrument [Line Items] | ||||
Total debt | 162,418 | 171,137 | ||
Less current maturities | 19,300 | 11,600 | ||
Convertible Notes | 5.75% Senior Subordinated Notes Due August 2023 | ||||
Debt Instrument [Line Items] | ||||
Total debt | 47,277 | [3] | $ 48,076 | |
Total debt | $ 94,400 | |||
[1] | Carrying amounts include aggregate unamortized debt discount and debt issuance costs. | |||
[2] | Reflects the net debt carrying amount, effected by the outstanding balance of the original issue discount, in the consolidated balance sheet as of December 31, 2019. The actual principal outstanding balance of the Variable Funding Notes is $100.0 million as of December 31, 2019 | |||
[3] | Reflects the debt carrying amount which is accounted for under the Fair Value Option in the consolidated balance sheet as of December 31, 2019. The actual principal outstanding balance of the 5.75% Convertible Notes is $94.4 million as of December 31, 2019. |
Net Carrying Amount of Debt (Pa
Net Carrying Amount of Debt (Parenthetical) (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Feb. 22, 2018 | Oct. 27, 2017 | Sep. 30, 2017 |
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate, stated percentage | 5.75% | ||||
Principal amount of long term debt | $ 240.7 | ||||
5.75% Senior Subordinated Notes Due August 2023 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate, stated percentage | 5.75% | 5.75% | |||
Convertible Notes | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate, stated percentage | 1.50% | 1.50% | |||
Convertible Notes | 5.75% Senior Subordinated Notes Due August 2023 | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, interest rate, stated percentage | 5.75% | 5.75% | 5.75% | ||
Principal amount of long term debt | $ 94.4 | $ 109.7 | $ 125 |
Debt Arrangements - Additional
Debt Arrangements - Additional Information (Detail) | Mar. 15, 2018USD ($) | Mar. 14, 2018USD ($) | Feb. 22, 2018USD ($)d | Nov. 02, 2017USD ($) | Oct. 27, 2017USD ($) | Aug. 18, 2017USD ($) | Aug. 02, 2017USD ($) | Mar. 18, 2013USD ($) | Nov. 29, 2012USD ($) | Feb. 28, 2015USD ($) | Sep. 30, 2017USD ($) | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018USD ($)shares | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($)shares | Jul. 31, 2019 | Mar. 31, 2019 | Mar. 14, 2019USD ($) | Feb. 12, 2018 | Oct. 26, 2017USD ($) | Jun. 21, 2013USD ($) | |
Debt Instrument [Line Items] | ||||||||||||||||||||||
Principal amount of long term debt | $ 240,700,000 | |||||||||||||||||||||
Debt instrument, interest rate, stated percentage | 5.75% | |||||||||||||||||||||
Net proceeds received from issuance of debt | $ 95,700,000 | |||||||||||||||||||||
Debt service coverage ratio | 110.00% | |||||||||||||||||||||
Current portion of long-term debt | $ 61,976,000 | 54,263,000 | ||||||||||||||||||||
Restricted cash | 15,946,000 | 16,026,000 | ||||||||||||||||||||
Non cash additional interest expense on convertible notes | 9,439,000 | 9,833,000 | ||||||||||||||||||||
Leverage ratio | 450.00% | |||||||||||||||||||||
Net proceeds from Permitted Capital Raising Transactions | $ 100,000,000 | |||||||||||||||||||||
Repayment of remaining outstanding principal balance | 231,000,000 | |||||||||||||||||||||
Debt issue discount costs | 9,300,000 | |||||||||||||||||||||
Deferred financing costs | $ 5,400,000 | |||||||||||||||||||||
Gain (loss) on extinguishment of debt | 4,473,000 | |||||||||||||||||||||
Long term debt, fair value | 47,277,000 | 48,076,000 | ||||||||||||||||||||
Principal outstanding balance | [1] | $ 645,721,000 | $ 675,229,000 | |||||||||||||||||||
Common Stock | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Notes converted into common stock | shares | 3,727,000 | |||||||||||||||||||||
Maximum | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Leverage ratio | 575.00% | |||||||||||||||||||||
Aggregate amount of term loan facility | $ 165,700,000 | |||||||||||||||||||||
1.50% Senior Subordinated Notes Due March 15, 2018 | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Debt instrument, interest rate, stated percentage | 1.50% | |||||||||||||||||||||
5.75% Senior Subordinated Notes Due August 2023 | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Debt instrument, interest rate, stated percentage | 5.75% | 5.75% | ||||||||||||||||||||
5.75% Senior Subordinated Notes Due August 2023 | Common Stock | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Notes converted into common stock | shares | 1,411,000 | |||||||||||||||||||||
MG Icon | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Equity ownership percentage | 50.00% | |||||||||||||||||||||
Hardy Way, LLC | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Joint venture ownership percentage | 85.00% | |||||||||||||||||||||
Zoo York brand | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Ownership Percentage | 100.00% | |||||||||||||||||||||
IBG Borrower | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Termination of license generating with minimum royalty guarantees | $ 500,000 | |||||||||||||||||||||
IBG Borrower | Minimum | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Asset coverage ratio, minimum | 125.00% | |||||||||||||||||||||
IBG Borrower | Maximum | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Leverage ratio | 450.00% | |||||||||||||||||||||
2012 Senior Secured Notes | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Principal amount of long term debt | $ 600,000,000 | |||||||||||||||||||||
Debt instrument, interest rate, stated percentage | 4.229% | |||||||||||||||||||||
Debt instrument, quarterly payment | $ 10,500,000 | |||||||||||||||||||||
Debt instrument, frequency of payment | quarterly | |||||||||||||||||||||
Variable Funding Notes | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Principal amount of long term debt | 100,000,000 | $ 100,000,000 | ||||||||||||||||||||
Net proceeds received from issuance of debt | $ 100,000,000 | |||||||||||||||||||||
Line of credit, outstanding | 100,000,000 | |||||||||||||||||||||
Debt Instrument anticipated repayment year and month | 2020-01 | |||||||||||||||||||||
L/C commitment and the swingline commitment | $ 0 | |||||||||||||||||||||
Non cash additional interest expense on convertible notes | $ 5,100,000 | $ 4,600,000 | ||||||||||||||||||||
2013 Senior Secured Notes | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Principal amount of long term debt | $ 275,000,000 | |||||||||||||||||||||
Debt instrument, interest rate, stated percentage | 4.352% | |||||||||||||||||||||
Debt instrument, quarterly payment | $ 4,800,000 | |||||||||||||||||||||
Debt instrument, frequency of payment | quarterly | |||||||||||||||||||||
Senior Secured Notes | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Principal amount of long term debt | $ 438,100,000 | 465,500,000 | ||||||||||||||||||||
Debt Instrument anticipated repayment year and month | 2020-01 | |||||||||||||||||||||
Debt instrument, Maturity Date | 2043-01 | |||||||||||||||||||||
Debt instrument description of interest | As the Co-Issuers have not repaid or refinanced the Securitization Notes prior to January 2020 (the “anticipated repayment date”), additional interest will accrue on amounts outstanding under the Securitization Notes at a rate equal to (A) in respect of the Variable Funding Notes, 5% per annum, (B) in respect of the 2012 Senior Secured Notes and the 2013 Senior Secured Notes, the greater of (1) 5% per annum and (2) a per annum interest rate equal to the excess, if any, by which the sum of (x) the yield to maturity (adjusted to a quarterly bond-equivalent basis), on the anticipated repayment date of the United States treasury security having a term closest to 10 years plus (y) 5% per annum plus (z) with respect to the 2012 Senior Secured Notes, 3.4% per annum, or with respect to the 2013 Senior Secured Notes, 3.14% per annum, exceeds the original interest rate. | |||||||||||||||||||||
Additional interest rate | 5.00% | |||||||||||||||||||||
Anticipated repayment date | 10 years | |||||||||||||||||||||
Residual amount paid | $ 0 | |||||||||||||||||||||
Current portion of long-term debt | 42,700,000 | 42,700,000 | ||||||||||||||||||||
Restricted cash | 14,900,000 | 15,200,000 | ||||||||||||||||||||
Cash interest expense for convertible notes | $ 21,000,000 | $ 22,200,000 | ||||||||||||||||||||
Debt instrument, interest rate, effective percentage | 10.87% | 10.87% | ||||||||||||||||||||
2012 Senior Secured Notes | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Excess interest rate on original interest rate | 3.40% | |||||||||||||||||||||
2013 Senior Secured Notes | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Excess interest rate on original interest rate | 3.14% | |||||||||||||||||||||
Senior Secured Term Loan | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Principal amount of long term debt | 57,800,000 | $ 300,000,000 | $ 175,600,000 | $ 300,000,000 | ||||||||||||||||||
Current portion of long-term debt | 19,300,000 | $ 11,600,000 | ||||||||||||||||||||
Cash interest expense for convertible notes | 18,000,000 | 17,200,000 | ||||||||||||||||||||
Non cash additional interest expense on convertible notes | $ 5,500,000 | $ 4,400,000 | ||||||||||||||||||||
Debt instrument, interest rate, effective percentage | 13.30% | 13.30% | ||||||||||||||||||||
Maturity date of credit agreement | Aug. 2, 2022 | |||||||||||||||||||||
Margin applied to LIBOR | 7.00% | |||||||||||||||||||||
Percentage of principal debt quarterly amortization | 0.50% | |||||||||||||||||||||
Principal debt quarterly amortization commencement date | Sep. 30, 2017 | |||||||||||||||||||||
Debt issue discount costs | $ 13,200,000 | $ 18,300,000 | ||||||||||||||||||||
Deferred financing costs | 800,000 | |||||||||||||||||||||
Gain (loss) on extinguishment of debt | 8,800,000 | |||||||||||||||||||||
Interest rate increase additional per annum | 3.00% | |||||||||||||||||||||
Payment of unpaid principal and accrued interest of lenders | 50.00% | |||||||||||||||||||||
Principal amount of long term debt | $ 162,400,000 | 171,100,000 | ||||||||||||||||||||
Senior Secured Term Loan | IBG Borrower | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Equity ownership percentage | 35.00% | |||||||||||||||||||||
Premium percentage of aggregate principal amount first year loan | 5.00% | |||||||||||||||||||||
Premium percentage of aggregate principal amount second year loan | 3.00% | |||||||||||||||||||||
Convertible Notes | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Debt instrument, interest rate, stated percentage | 1.50% | 1.50% | ||||||||||||||||||||
Cash from escrow deposit returned to lenders | 231,000,000 | |||||||||||||||||||||
Payment from Escrow Account to acquire convertible notes | $ 59,200,000 | |||||||||||||||||||||
Convertible Notes | 1.50% Senior Subordinated Notes Due March 15, 2018 | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Principal amount of long term debt | $ 125,000,000 | $ 400,000,000 | ||||||||||||||||||||
Debt instrument, interest rate, stated percentage | 1.50% | 1.50% | 1.50% | 1.50% | ||||||||||||||||||
Net proceeds received from issuance of debt | $ 390,600,000 | |||||||||||||||||||||
Cash interest expense for convertible notes | 600,000 | |||||||||||||||||||||
Non cash additional interest expense on convertible notes | 1,700,000 | |||||||||||||||||||||
Repayment of remaining outstanding principal balance | $ 111,200,000 | |||||||||||||||||||||
Debt instrument, par value of notes repurchased | $ 58,900,000 | $ 104,900,000 | ||||||||||||||||||||
Debt instrument, cash paid to repurchase convertible notes | $ 59,300,000 | $ 36,700,000 | ||||||||||||||||||||
Convertible Notes | 1.50% Senior Subordinated Notes Due March 15, 2018 | Common Stock | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Debt instrument, shares issued to repurchase convertible notes | shares | 700,000 | |||||||||||||||||||||
Convertible Notes | 5.75% Senior Subordinated Notes Due August 2023 | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Principal amount of long term debt | $ 125,000,000 | $ 94,400,000 | $ 109,700,000 | |||||||||||||||||||
Debt instrument, interest rate, stated percentage | 5.75% | 5.75% | 5.75% | |||||||||||||||||||
Cash interest expense for convertible notes | $ 5,700,000 | $ 5,500,000 | ||||||||||||||||||||
Maturity date of credit agreement | Aug. 15, 2023 | Aug. 15, 2023 | ||||||||||||||||||||
Debt instrument, conversion rate | 52.1919 | |||||||||||||||||||||
Principal amount of each convertible note | $ 1,000 | |||||||||||||||||||||
Convertible notes, initial conversion price per share | $ / shares | $ 19.16 | |||||||||||||||||||||
Debt instrument convertible conversion price as percentage upon automatic conversion | 5.75% | |||||||||||||||||||||
Debt instrument convertible conversion price as percentage upon mandatory conversion | 5.75% | |||||||||||||||||||||
Debt instrument, convertible, threshold trading days | d | 10 | |||||||||||||||||||||
'Volume weighted average price description | If the Company elects to pay all or a portion of a Conversion Make-Whole Payment in shares of common stock, the number of shares of common stock payable will be equal to the applicable Conversion Make-Whole Payment divided by the average of the 10 individual volume-weighted average prices for the 10-trading day period immediately preceding the applicable conversion date. | |||||||||||||||||||||
Debt instrument, convertible, threshold consecutive trading days | d | 30 | |||||||||||||||||||||
Debt instrument, redemption price, percentage | 100.00% | |||||||||||||||||||||
Debt instrument, redemption, description | each holder will have the right at its option, but subject in all respects to the terms of the Intercreditor Agreement and the Senior Secured Term Loan, to require the Company to repurchase for cash all or a portion of such holder’s 5.75% Convertible Notes at a fundamental change purchase price equal to 100% of the principal amount of the 5.75% Convertible Notes to be repurchased, together with interest accrued and unpaid to, but excluding, the fundamental change purchase date. | |||||||||||||||||||||
Debt instrument, restrictive covenants | The Company is subject to certain restrictive covenants pursuant to the 5.75% Convertible Note Indenture, including limitations on (i) liens, (ii) indebtedness, (iii) asset sales, (iv) restricted payments and investments, (v) prepayments of indebtedness and (vi) transactions with affiliates. | |||||||||||||||||||||
Debt conversion original debt amount | $ 15,300,000 | |||||||||||||||||||||
Notes converted into common stock | shares | 800,000 | |||||||||||||||||||||
Stock issued pursuant to conversion settlement | shares | 2,900,000 | |||||||||||||||||||||
Long term debt, fair value | $ 47,300,000 | |||||||||||||||||||||
Principal outstanding balance | $ 94,400,000 | |||||||||||||||||||||
Stock issued during period for payment of interest | shares | 600,000 | |||||||||||||||||||||
Convertible Notes | 5.75% Senior Subordinated Notes Due August 2023 | Fair Value Option | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Long term debt, fair value | $ 47,300,000 | |||||||||||||||||||||
Convertible Notes | 5.75% Senior Subordinated Notes Due August 2023 | Other Income | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Income on conversion of debt | $ 1,300,000 | |||||||||||||||||||||
First Delayed Draw Term Loan | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Aggregate amount of term loan facility | $ 25,000,000 | $ 25,000,000 | ||||||||||||||||||||
Debt issue discount costs | 1,000,000 | |||||||||||||||||||||
Aggregate amount of term loan received in cash | $ 24,000,000 | |||||||||||||||||||||
Second Delayed Draw Term Loan | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Maturity date of credit agreement | Aug. 2, 2022 | |||||||||||||||||||||
Aggregate amount of term loan facility | $ 140,700,000 | |||||||||||||||||||||
Second Delayed Draw Term Loan | 1.50% Senior Subordinated Notes Due March 15, 2018 | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Debt instrument, interest rate, stated percentage | 1.50% | |||||||||||||||||||||
Maturity date of credit agreement | Mar. 15, 2018 | |||||||||||||||||||||
Aggregate amount of term loan facility | $ 110,000,000 | |||||||||||||||||||||
Senior Secured Term Loan Due 2022 | Minimum | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Amortization rate per annum | 2.00% | |||||||||||||||||||||
Senior Secured Term Loan Due 2022 | Maximum | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Amortization rate per annum | 10.00% | |||||||||||||||||||||
5.75% Senior Subordinated Notes Due August 2023 | Maximum | ||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||
Debt instrument, interest rate, stated percentage | 5.75% | |||||||||||||||||||||
[1] | Carrying amounts include aggregate unamortized debt discount and debt issuance costs. |
Company's Debt Maturities on Ca
Company's Debt Maturities on Calendar Year Basis (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | ||
Debt Instrument [Line Items] | ||||
Total | $ 647,435 | |||
2020 | 61,977 | |||
2021 | 61,977 | |||
2022 | 61,977 | |||
2023 | 194,536 | |||
2024 | 42,693 | |||
Thereafter | 224,275 | |||
Senior Secured Notes | ||||
Debt Instrument [Line Items] | ||||
Total | 338,130 | $ 365,481 | ||
2020 | 42,693 | |||
2021 | 42,693 | |||
2022 | 42,693 | |||
2023 | 42,693 | |||
2024 | 42,693 | |||
Thereafter | 124,665 | |||
Convertible Notes | 5.75% Senior Subordinated Notes Due August 2023 | ||||
Debt Instrument [Line Items] | ||||
Total | 47,277 | [1] | 48,076 | |
2023 | [1] | 47,277 | ||
Variable Funding Notes | ||||
Debt Instrument [Line Items] | ||||
Total | 99,610 | [2] | $ 95,273 | |
Thereafter | [2] | 99,610 | ||
Senior Secured Term Loan | ||||
Debt Instrument [Line Items] | ||||
Total | [3] | 162,418 | ||
2020 | [3] | 19,284 | ||
2021 | [3] | 19,284 | ||
2022 | [3] | 19,284 | ||
2023 | [3] | $ 104,566 | ||
[1] | Reflects the debt carrying amount which is accounted for under the Fair Value Option in the consolidated balance sheet as of December 31, 2019. The actual principal outstanding balance of the 5.75% Convertible Notes is $94.4 million as of December 31, 2019. | |||
[2] | Reflects the net debt carrying amount, effected by the outstanding balance of the original issue discount, in the consolidated balance sheet as of December 31, 2019. The actual principal outstanding balance of the Variable Funding Notes is $100.0 million as of December 31, 2019 | |||
[3] | Reflects the net debt carrying amount, effected by the outstanding balance of the original issue discount, in the consolidated balance sheet as of December 31, 2019. The actual principal outstanding balance of the Senior Secured Term Loan is $175.6 million as of December 31, 2019. |
Company's Debt Maturities on _2
Company's Debt Maturities on Calendar Year Basis (Parenthetical) (Detail) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Feb. 22, 2018 | Oct. 27, 2017 | Oct. 26, 2017 | Sep. 30, 2017 | Aug. 02, 2017 | Nov. 29, 2012 |
Debt Instrument [Line Items] | ||||||||
Principal amount of long term debt | $ 240.7 | |||||||
Debt instrument, interest rate, stated percentage | 5.75% | |||||||
5.75% Senior Subordinated Notes Due August 2023 | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, interest rate, stated percentage | 5.75% | 5.75% | ||||||
Variable Funding Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal amount of long term debt | $ 100 | $ 100 | ||||||
Senior Secured Term Loan | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal amount of long term debt | $ 175.6 | $ 57.8 | $ 300 | $ 300 | ||||
Convertible Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument, interest rate, stated percentage | 1.50% | 1.50% | ||||||
Convertible Notes | 5.75% Senior Subordinated Notes Due August 2023 | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal amount of long term debt | $ 94.4 | $ 109.7 | $ 125 | |||||
Debt instrument, interest rate, stated percentage | 5.75% | 5.75% | 5.75% |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) | Mar. 31, 2019 | Mar. 14, 2019 | Oct. 15, 2018 | Jun. 15, 2018 | Mar. 15, 2018 | Oct. 31, 2017 | Mar. 07, 2017 | Mar. 31, 2016 | Feb. 23, 2016 | Jan. 07, 2016 | Dec. 31, 2019 | Dec. 31, 2018 | Apr. 26, 2018 | Apr. 25, 2018 | Nov. 04, 2016 | Apr. 26, 2016 |
Class Of Stock [Line Items] | ||||||||||||||||
Common stock, par value | $ 0.001 | $ 0.001 | $ 0.001 | |||||||||||||
Common stock, shares authorized | 260,000,000 | 260,000,000 | 260,000,000 | 150,000,000 | ||||||||||||
Reverse stock split, shares issued | 0 | |||||||||||||||
Stock options, exercised | 0 | 0 | ||||||||||||||
Stock options, expired | 1,500 | |||||||||||||||
Stock options expired, weighted average exercise price | $ 171.60 | |||||||||||||||
Value of common stock shares repurchased in connection with net share settlement of restricted stock grants | $ 189,000 | $ 223,000 | ||||||||||||||
Mr. Haugh | ||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||
Employment resigned date | Jun. 15, 2018 | |||||||||||||||
Stock Options | ||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||
Compensation expense (benefit) related to stock grants | $ 0 | $ 0 | ||||||||||||||
Stock options granted | 0 | 0 | ||||||||||||||
Restricted Stock | ||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||
Compensation expense (benefit) related to stock grants | $ 800,000 | $ 1,300,000 | ||||||||||||||
Share based compensation awards granted in period | 329,145 | 319,378 | ||||||||||||||
Share based compensation awards granted in period, fair market value | $ 600,000 | $ 700,000 | ||||||||||||||
Value of common stock shares repurchased in connection with net share settlement of restricted stock grants | $ 200,000 | $ 200,000 | ||||||||||||||
Granted | $ 1.70 | $ 2.20 | ||||||||||||||
Share based compensation awards forfeited in period | 296 | 24,919 | ||||||||||||||
Retention Stock | ||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||
Compensation expense (benefit) related to stock grants | $ 200,000 | $ 300,000 | ||||||||||||||
Share based compensation awards vesting period | 3 years | |||||||||||||||
Share based compensation awards granted in period | 7,500,000 | |||||||||||||||
Compensation cost not yet recognized, periods for recognition | 1 year 9 months 18 days | |||||||||||||||
Share based compensation awards granted in period, value | $ 1,300,000 | |||||||||||||||
Grant date fair value of award issued | $ 42.50 | |||||||||||||||
Share-based compensation award, shares issued upon expiration of grant | 0 | |||||||||||||||
Compensation cost not yet recognized | $ 200,000 | |||||||||||||||
Retention Stock | Mr. Haugh | ||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||
Share-based compensation award, vesting shares Issuable | 0 | |||||||||||||||
Employment Inducement Award | Mr. Haugh | ||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||
Grant date fair value of award issued | $ 0.18 | $ 57.50 | ||||||||||||||
Maximum | ||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||
Compensation expense (benefit) related to stock grants | $ 100,000 | |||||||||||||||
Maximum | Restricted Stock | ||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||
Share based compensation awards vesting period | 3 years | |||||||||||||||
Compensation cost not yet recognized, periods for recognition | 27 months | |||||||||||||||
Minimum | Restricted Stock | ||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||
Compensation cost not yet recognized, periods for recognition | 12 months | |||||||||||||||
2016 Omnibus Incentive Plan | ||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||
Common stock reserved for issuance | 200,000 | |||||||||||||||
Number of additional common stock shares approved for issuance under Incentive Plan | 190,000 | |||||||||||||||
2016 Omnibus Incentive Plan | Maximum | ||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||
Common stock reserved for issuance | 100,000 | |||||||||||||||
Long Term Incentive Compensation Plan | Restricted Stock | ||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||
Compensation cost not yet recognized | $ 400,000 | |||||||||||||||
2016 LTIP | ||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||
Share based compensation awards granted in period | 700,000 | |||||||||||||||
Share based compensation awards granted in period, value | $ 5,200,000 | |||||||||||||||
Granted | $ 73.10 | |||||||||||||||
2016 LTIP | Performance Shares | ||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||
Compensation expense (benefit) related to stock grants | $ (3,900,000) | |||||||||||||||
Compensation cost not yet recognized | $ 200,000 | |||||||||||||||
2016 LTIP | Maximum | ||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||
Share-based compensation award, shares issued upon expiration of grant | 100,000 | |||||||||||||||
2016 LTIP | Maximum | Performance Shares | ||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||
Compensation cost not yet recognized, periods for recognition | 1 year | |||||||||||||||
2017 LTIP | ||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||
Share based compensation awards granted in period | 0.1 | |||||||||||||||
Share based compensation awards granted in period, value | $ 6,600,000 | |||||||||||||||
Granted | $ 75.20 | |||||||||||||||
2017 LTIP | RSUs | ||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||
Share based compensation award, description of vesting rights | one third annually | |||||||||||||||
2017 LTIP | Performance Shares | ||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||
Share based compensation award, description of vesting rights | based on performance metrics approved by the Compensation Committee | |||||||||||||||
2017 LTIP | Maximum | ||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||
Share based compensation awards forfeited in period | 100,000 | |||||||||||||||
2017 LTIP | Maximum | Performance Shares | ||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||
Weighted average contractual term of awards outstanding and exercisable | 1 year | |||||||||||||||
2018 LTIP | ||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||
Share based compensation awards vesting period | 15 days | |||||||||||||||
Share based compensation awards granted in period | 200,000 | |||||||||||||||
Share based compensation awards granted in period, value | $ 3,100,000 | |||||||||||||||
Granted | $ 13.80 | |||||||||||||||
Share based compensation award, description of vesting rights | 48 equal semi-monthly installments | |||||||||||||||
Share based compensation awards forfeited in period | 200,000 | |||||||||||||||
Share based compensation cash awards, aggregate amount. | $ 3,100,000 | |||||||||||||||
2018 LTIP | Maximum | Performance Shares | ||||||||||||||||
Class Of Stock [Line Items] | ||||||||||||||||
Weighted average contractual term of awards outstanding and exercisable | 2 years |
Summary of Unvested Restricted
Summary of Unvested Restricted Stock (Detail) - Restricted Stock - $ / shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Shares | ||
Beginning balance | 239,077 | 54,490 |
Granted | 329,145 | 319,378 |
Vested | (241,082) | (109,872) |
Forfeited/Canceled | (296) | (24,919) |
Ending balance | 326,844 | 239,077 |
Weighted Average Grant Date Fair Value | ||
Beginning balance | $ 2.68 | $ 76.49 |
Granted | 1.70 | 2.20 |
Vested | 2.26 | 21.40 |
Forfeited/Canceled | 75.20 | 76 |
Ending balance | $ 1.94 | $ 2.68 |
Summary of Grant Date Fair Valu
Summary of Grant Date Fair Value and Stock Price of Awards Issued Based on Valuation Assumptions (Detail) - Robert C. Galvin | Oct. 15, 2018$ / shares |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Risk free interest rate | 2.92% |
Expected dividend yield used when simulating the total shareholder return | 0.00% |
Expected dividend yield used when simulating the Company's stock price | 0.00% |
Stock price volatility, minimum | 20.88% |
Stock price volatility, maximum | 108.81% |
Minimum | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Beginning average stock price | $ 0.27 |
Valuation date stock price | $ 0.22 |
Correlation coefficients | (0.02%) |
Maximum | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Beginning average stock price | $ 86.49 |
Valuation date stock price | $ 80.27 |
Correlation coefficients | 0.48% |
Earnings (Loss) Per Share - Add
Earnings (Loss) Per Share - Additional Information (Detail) - shares | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Feb. 22, 2018 | Sep. 30, 2017 | |
Earnings Per Share Disclosure [Line Items] | ||||
Anti-dilutive shares | 200,000 | |||
Percentage of conversion of convertible notes | 5.75% | |||
Performance Shares | ||||
Earnings Per Share Disclosure [Line Items] | ||||
Anti-dilutive shares | 300,000 | 0 | ||
Maximum | ||||
Earnings Per Share Disclosure [Line Items] | ||||
Anti-dilutive shares | 100,000 | |||
5.75% Senior Subordinated Notes Due August 2023 | ||||
Earnings Per Share Disclosure [Line Items] | ||||
Percentage of conversion of convertible notes | 5.75% | 5.75% | ||
Convertible Notes | ||||
Earnings Per Share Disclosure [Line Items] | ||||
Percentage of conversion of convertible notes | 1.50% | 1.50% | ||
Convertible Notes | 5.75% Senior Subordinated Notes Due August 2023 | ||||
Earnings Per Share Disclosure [Line Items] | ||||
Anti-dilutive shares | 33,700,000 | 8,100,000 | ||
Percentage of conversion of convertible notes | 5.75% | 5.75% | 5.75% |
Reconciliation of Weighted Aver
Reconciliation of Weighted Average Shares Used in Calculating Basic and Diluted Earnings Per Share (Detail) - shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings Per Share Disclosure [Line Items] | ||
Basic | 10,559 | 6,734 |
Diluted | 10,559 | 6,734 |
Schedule of Impact on Earnings
Schedule of Impact on Earnings Per Share Calculation (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
For earnings (loss) per share - basic: | ||
Net loss attributable to Iconix Brand Group, Inc. | $ (111,513) | $ (100,521) |
Net income (loss) attributable to Iconix Brand Group, Inc. after accretion of redeemable non- controlling interest for basic earnings (loss) per share | (111,513) | (100,521) |
For earnings (loss) per share - diluted: | ||
Net loss attributable to Iconix Brand Group, Inc. | (111,513) | (100,521) |
Net loss attributable to Iconix Brand Group, Inc. after the effect of potential conversion of 5.75% Convertible Notes for diluted earnings (loss) per share | $ (111,513) | $ (100,521) |
Basic | $ (10.56) | $ (14.93) |
Diluted | $ (10.56) | $ (14.93) |
Weighted average number of common shares outstanding: | ||
Basic | 10,559 | 6,734 |
Diluted | 10,559 | 6,734 |
Schedule of Impact on Earning_2
Schedule of Impact on Earnings Per Share Calculation (Parenthetical) (Detail) | Dec. 31, 2019 | Dec. 31, 2018 | Feb. 22, 2018 | Sep. 30, 2017 |
Earnings Per Share Disclosure [Line Items] | ||||
Percentage of conversion of convertible notes | 5.75% | |||
5.75% Senior Subordinated Notes Due August 2023 | ||||
Earnings Per Share Disclosure [Line Items] | ||||
Percentage of conversion of convertible notes | 5.75% | 5.75% | ||
Convertible Notes | ||||
Earnings Per Share Disclosure [Line Items] | ||||
Percentage of conversion of convertible notes | 1.50% | 1.50% | ||
Convertible Notes | 5.75% Senior Subordinated Notes Due August 2023 | ||||
Earnings Per Share Disclosure [Line Items] | ||||
Percentage of conversion of convertible notes | 5.75% | 5.75% | 5.75% |
Contingencies - Additional Info
Contingencies - Additional Information (Detail) $ in Millions | Dec. 05, 2019USD ($) | Sep. 16, 2019USD ($) | May 31, 2016USD ($)Claim |
Loss Contingencies [Line Items] | |||
Payments of civil penalty | $ 5.5 | ||
Supply Company, LLC | |||
Loss Contingencies [Line Items] | |||
Compensatory damages sought | $ 50 | ||
Kevin Yap | |||
Loss Contingencies [Line Items] | |||
Number of declaratory judgment claims | Claim | 2 | ||
Stipulation | |||
Loss Contingencies [Line Items] | |||
Proposed litigation settlement amount | $ 6 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2019Director | |
Board of Directors Chairman | |
Related Party Transaction [Line Items] | |
Number of board of directors | 2 |
Related Party Transactions - Su
Related Party Transactions - Summary of Royalty Revenue Recognized (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Related Party Transaction [Line Items] | |||
Royalty revenue | $ 148,984 | $ 187,689 | |
Royalty | |||
Related Party Transaction [Line Items] | |||
Royalty revenue | 4,348 | 28,486 | |
Royalty | Global Brands Group Asia Limited | |||
Related Party Transaction [Line Items] | |||
Royalty revenue | [1],[2] | 19,544 | |
Royalty | Rise Partners, LLC / Top On International Group Limited | |||
Related Party Transaction [Line Items] | |||
Royalty revenue | 977 | ||
Royalty | M.G.S. Sports Trading Limited | |||
Related Party Transaction [Line Items] | |||
Royalty revenue | 440 | 610 | |
Royalty | Sports Direct International plc | |||
Related Party Transaction [Line Items] | |||
Royalty revenue | 1,188 | 915 | |
Royalty | Pac Brands USA, Inc. | |||
Related Party Transaction [Line Items] | |||
Royalty revenue | 363 | 246 | |
Royalty | Albion Equity Partners LLC / GL Damek | |||
Related Party Transaction [Line Items] | |||
Royalty revenue | 2,350 | 2,644 | |
Royalty | Anthony L&S | |||
Related Party Transaction [Line Items] | |||
Royalty revenue | 623 | ||
Royalty | MHMC | |||
Related Party Transaction [Line Items] | |||
Royalty revenue | $ 7 | $ 2,927 | |
[1] | As detailed in Note 4, as of July 2019, MHMC is no longer a related party. | ||
[2] | Prior to 2019, Global Brand Group Asia Limited maintained the Buffalo and Zoo York license agreements. However, in October 2018, Centric Brands Inc. acquired a significant portion of Global Brands Group Asia Limited’s North American licensing business. The Company’s license agreement for the Buffalo and Zoo York brands in the United States are now maintained with Centric Brands Inc. which is not a related party or affiliated entity to the Company. |
Operating Leases - Additional I
Operating Leases - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Lessee Lease Description [Line Items] | ||
Operating lease term | 5 years | |
Rental expense for operating leases | $ 4,000,000 | |
Operating lease ROU assets | $ 6,254,000 | |
Operating lease liabilities | 8,833,000 | |
Cash paid for lease liabilities for operating leases | 2,600,000 | |
Right-of-use assets obtained in exchange for operating lease obligations | 0 | |
Operating lease obligations | 0 | |
Impairment charge | 500,000 | |
Impairment to leasehold improvements | $ 1,300,000 | |
Weighted average remaining operating lease term | 4 years 2 months 1 day | |
Weighted average discount rate | 8.61% | |
New Leases | ||
Lessee Lease Description [Line Items] | ||
Operating lease ROU assets | $ 100,000 | |
Operating lease liabilities | $ 100,000 |
Operating Leases - Summary of C
Operating Leases - Summary of Components of Lease Cost (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Lease Cost [Abstract] | |
Operating lease cost | $ 2,215 |
Short-term lease cost | 537 |
Variable lease cost | 396 |
Lease, Cost | $ 3,148 |
Operating Leases - Schedule of
Operating Leases - Schedule of Maturities of Lease Liabilities Under Non-cancellable Leases (Detail) $ in Thousands | Dec. 31, 2019USD ($) |
Operating Lease Liabilities Payments Due [Abstract] | |
2020 | $ 2,610 |
2021 | 2,461 |
2022 | 2,168 |
2023 | 2,109 |
Thereafter | 1,079 |
Total undiscounted lease payments | 10,427 |
Less: Imputed interest | 1,594 |
Operating lease liabilities | $ 8,833 |
Operating Leases - Schedule o_2
Operating Leases - Schedule of Future Net Minimum Lease Payments under Non-cancelable Operating Lease Agreements (Detail) $ in Thousands | Dec. 31, 2018USD ($) |
Operating Lease Liabilities Payments Due [Abstract] | |
2019 | $ 2,650 |
2020 | 2,726 |
2021 | 2,583 |
2022 | 2,191 |
2023 | 2,109 |
Thereafter | 1,078 |
Total undiscounted lease payments | $ 13,337 |
Benefit and Incentive Compens_2
Benefit and Incentive Compensation Plans and Other - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Contribution to Savings Plan | $ 0.2 | $ 0.1 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Taxes [Line Items] | |||
Deferred tax liabilities noncurrent | $ 4,464,000 | $ 4,566,000 | |
Foreign tax credit carry forwards | $ 5,300,000 | ||
Foreign tax credit carryforwards, expiration start year | 2023 | ||
Foreign tax credit carryforwards, expiration end year | 2024 | ||
Effective income tax rate from continuing operations | (8.60%) | (7.90%) | |
Indefinitely reinvested foreign earnings | $ 0 | ||
Income tax provision (benefit), federal rate | 21.00% | 21.00% | |
Unrecognized tax benefit | $ 0 | $ 0 | $ 354,000 |
Unrecognized tax benefit that would affect the effective tax rate if recognized | 0 | ||
Unrecognized tax benefit reduction due to settlements with taxing authorities and or statute of limitations expirations | 0 | ||
Unrecognized tax benefit, interest or penalties accrued | $ 0 | 0 | |
Internal Revenue Service (IRS) | |||
Income Taxes [Line Items] | |||
Minimum change in ownership percentage | 50.00% | ||
Measurement of change in ownership period | 3 years | ||
Minimum change in ownership percentage held by shareholders directly or indirectly | 5.00% | ||
Income tax expense (benefit) related to interest on liability (refund) claim | $ (1,300) | ||
California Franchise Tax Board | |||
Income Taxes [Line Items] | |||
Income tax examination resulted tax charge | 0 | ||
New York City Audit | |||
Income Taxes [Line Items] | |||
Income tax examination resulted tax charge | 0 | ||
New York City Audit | Tax Years 2011 Through 2014 | |||
Income Taxes [Line Items] | |||
Income tax examination resulted tax charge | $ 500,000 | ||
Federal | |||
Income Taxes [Line Items] | |||
Operating loss carry forwards | 172,700,000 | ||
Operating loss carry forwards, expiration amount | $ 19,000,000 | ||
Operating loss carry forwards, expiration year | 2037 | ||
State and Local Jurisdiction | |||
Income Taxes [Line Items] | |||
Operating loss carry forwards | $ 36,500,000 | ||
Operating loss carry forwards, expiration start year | 2034 | ||
Operating loss carry forwards, expiration end year | 2034 |
Pre-Tax Book Loss (Detail)
Pre-Tax Book Loss (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Pre-tax Income (Loss) [Line Items] | ||
Income (loss) before income taxes | $ (93,833) | $ (83,131) |
Domestic | ||
Pre-tax Income (Loss) [Line Items] | ||
Income (loss) before income taxes | (129,740) | (119,031) |
Foreign | ||
Pre-tax Income (Loss) [Line Items] | ||
Income (loss) before income taxes | $ 35,907 | $ 35,900 |
Income Tax Provision (Benefit)
Income Tax Provision (Benefit) for Federal, and State and Local Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Current: | ||
Current income tax expense, Federal | $ (1,012) | $ (609) |
Current income tax expense, State and local | (10) | (61) |
Current income tax expense, Foreign | 9,185 | 9,212 |
Total current | 8,163 | 8,542 |
Deferred: | ||
Deferred income tax expense, Federal | 23 | (4,950) |
Deferred income tax expense, State and local | (103) | (1,967) |
Deferred income tax expense, Foreign | 4,913 | |
Total deferred | (80) | (2,004) |
Total provision (benefit) | $ 8,083 | $ 6,538 |
Significant Components of Net D
Significant Components of Net Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Income Tax Disclosure [Abstract] | ||
State net operating loss carryforwards | $ 4,064 | $ 2,498 |
U.S. Federal net operating loss carryforwards | 36,306 | 15,864 |
Receivable reserves | 280 | 4,827 |
Interest expense limitation | 16,779 | 5,975 |
Intangibles | 96,177 | 107,035 |
Equity compensation | 1,838 | 1,764 |
Foreign Tax Credit | 5,252 | 5,252 |
Other | 9,293 | 8,907 |
Total deferred tax assets | 169,989 | 152,122 |
Valuation allowance | (143,368) | (115,483) |
Net deferred tax assets | 26,621 | 36,639 |
Depreciation | (284) | (369) |
Convertible notes | (6,451) | (10,519) |
Investment in joint ventures | (24,350) | (30,317) |
Total deferred tax liabilities | (31,085) | (41,205) |
Total net deferred tax (liabilities) | (4,464) | (4,566) |
Balance Sheet detail on total net deferred tax assets (liabilities): | ||
Non-current portion of net deferred tax liabilities | $ (4,464) | $ (4,566) |
Rate Reconciliation Between Amo
Rate Reconciliation Between Amount of Income Tax Provision (Benefit) at Federal Rate and Provision (Benefit) from Taxes on Loss Before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Income tax benefit computed at the federal rate of 21% | $ (19,705) | $ (17,457) |
Increase (reduction) in income taxes resulting from: | ||
State and local income taxes (benefit), net of federal income tax | (115) | (1,998) |
Non-controlling interest | (2,552) | (2,720) |
Unrecognized tax benefits | (31) | |
Valuation allowance | 21,756 | 22,752 |
Interest on income tax receivable | (1,253) | |
Non-deductible executive compensation | 150 | 868 |
Foreign Earnings (rate differential) | 8,300 | 13,405 |
US Tax Reform / rate reduction | 23 | (5,562) |
Other, net | 1,479 | (2,719) |
Total provision (benefit) | $ 8,083 | $ 6,538 |
Reconciliation of Beginning and
Reconciliation of Beginning and Ending Amount of Gross Unrecognized Tax Benefits Excluding Interest and Penalties (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Uncertain tax positions, Beginning balance | $ 0 | $ 354 |
Additions for current year tax positions | 0 | 0 |
Additions for prior year tax positions | 0 | 0 |
Reductions for prior year tax positions | 0 | (15) |
Settlements | 0 | (339) |
Uncertain tax positions, Ending balance | $ 0 | $ 0 |
Schedule of Accumulated Other C
Schedule of Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning Balance | $ (145,735) | $ (50,976) |
Foreign currency translation adjustment | (1,575) | (4,965) |
Current period other comprehensive income | (1,575) | (4,965) |
Ending Balance | (256,359) | (145,735) |
Foreign Currency Translation Adjustments | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning Balance | (53,068) | (48,103) |
Foreign currency translation adjustment | (1,575) | (4,965) |
Current period other comprehensive income | (1,575) | (4,965) |
Ending Balance | (54,643) | (53,068) |
Unrealized Losses of Available for Sale Securities | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning Balance | (3,177) | |
Current period other comprehensive income | 3,177 | |
Unrealized Losses of Available for Sale Securities | ASU 2016-01 | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Cumulative adjustment for adoption of ASU 2016-01 | 3,177 | |
AOCI Attributable to Parent | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Beginning Balance | (53,068) | (51,280) |
Foreign currency translation adjustment | (1,575) | (4,965) |
Current period other comprehensive income | (1,575) | (1,788) |
Ending Balance | $ (54,643) | (53,068) |
AOCI Attributable to Parent | ASU 2016-01 | ||
Accumulated Other Comprehensive Income Loss [Line Items] | ||
Cumulative adjustment for adoption of ASU 2016-01 | $ 3,177 |
Segment and Geographic Data - A
Segment and Geographic Data - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2019Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 4 |
Net Revenues by Type of License
Net Revenues by Type of License and Information by Geographic Region (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | ||
Licensing revenue | $ 148,984 | $ 187,689 |
Type of Revenue [Extensible List] | us-gaap:LicenseMember | us-gaap:LicenseMember |
Operating income (loss) | $ (30,780) | $ (119,037) |
International | ||
Segment Reporting Information [Line Items] | ||
Licensing revenue | $ 900 | $ 2,900 |
Type of Revenue [Extensible List] | us-gaap:LicenseMember | us-gaap:LicenseMember |
Operating Segments | Women's | ||
Segment Reporting Information [Line Items] | ||
Licensing revenue | $ 37,491 | $ 57,401 |
Operating income (loss) | (961) | (128,050) |
Operating Segments | Men's | ||
Segment Reporting Information [Line Items] | ||
Licensing revenue | 36,793 | 39,073 |
Operating income (loss) | 24,878 | 11,754 |
Operating Segments | Home | ||
Segment Reporting Information [Line Items] | ||
Licensing revenue | 14,753 | 24,568 |
Operating income (loss) | (4,932) | 17,221 |
Operating Segments | International | ||
Segment Reporting Information [Line Items] | ||
Licensing revenue | 59,947 | 66,647 |
Operating income (loss) | 23,487 | 27,447 |
Corporate | ||
Segment Reporting Information [Line Items] | ||
Operating income (loss) | $ (73,252) | $ (47,409) |
Other Assets - Current (Detail)
Other Assets - Current (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |||
US federal tax receivable | $ 1,115 | $ 16,757 | |
Insurance receivable | [1] | 15,000 | |
Prepaid expenses | 1,207 | 2,451 | |
Prepaid taxes | 1,119 | 1,755 | |
Prepaid advertising | 275 | 1,100 | |
Prepaid insurance | 2,042 | 1,446 | |
Other current assets | 596 | 645 | |
Due from related parties | 86 | 3,903 | |
Total | $ 21,440 | $ 28,057 | |
[1] | As of December 31, 2019, the Company recorded an asset of approximately $15.0 million related to insurance claims of which $3.8 million was received in Q1 2020 and $6.3 million will be released from escrow and paid to claimants in 2020. The Company believes the remainder is probable of recovery from various insurance carriers. These claims pertain to expenses incurred related to certain litigation claims against the Company and related expenses that are discussed throughout Note 11. |
Other Assets - Current (Parenth
Other Assets - Current (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Dec. 31, 2019 | ||
Prepaid Expenses And Other Current Assets [Line Items] | |||
Insurance receivable | [1] | $ 15,000 | |
Escrow deposit related to insurance settlement | $ 6,300 | ||
Scenario Forecast | |||
Prepaid Expenses And Other Current Assets [Line Items] | |||
Proceeds from insurance settlement | $ 3,800 | ||
[1] | As of December 31, 2019, the Company recorded an asset of approximately $15.0 million related to insurance claims of which $3.8 million was received in Q1 2020 and $6.3 million will be released from escrow and paid to claimants in 2020. The Company believes the remainder is probable of recovery from various insurance carriers. These claims pertain to expenses incurred related to certain litigation claims against the Company and related expenses that are discussed throughout Note 11. |
Other Assets - Long-Term (Detai
Other Assets - Long-Term (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | ||
Prepaid interest | $ 4,868 | $ 5,496 |
Deposits | 707 | 483 |
Due from related parties | 1,205 | |
Total | $ 6,780 | $ 5,979 |
Other Liabilities - Current - A
Other Liabilities - Current - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Other Liabilities Disclosure [Abstract] | ||
Other liabilities – current | $ 13,775 | $ 9,788 |
Foreign Currency Translation -
Foreign Currency Translation - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Foreign Currency [Abstract] | ||
Gain (loss) on foreign currency translation | $ (858) | $ (1,153) |
Foreign currency translation (loss) gain | $ (1,575) | $ (4,965) |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - Subsequent Event - USD ($) | Mar. 31, 2020 | Jan. 31, 2020 |
Subsequent Event [Line Items] | ||
Contractual principal payments | $ 42,700,000 | |
Asset sale prepayment obligation | 75.00% | |
Maximum | ||
Subsequent Event [Line Items] | ||
Aggregate amount of asset sale net proceeds | $ 5,000,000 |
Other Matters - Additional Info
Other Matters - Additional Information (Detail) - Selling, General and Administrative Expenses - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Other Matters [Line Items] | ||
Professional Fees | $ 19.6 | $ 9 |
Employee Severance And Other Benefits | ||
Other Matters [Line Items] | ||
Professional Fees | $ 2.1 |