Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | Apr. 21, 2020 | |
Class of Stock [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2020 | |
Current Fiscal Year End Date | --12-31 | |
Document Transition Report | false | |
Entity File Number | 001-16131 | |
Entity Registrant Name | WORLD WRESTLING ENTERTAINMENT, INC | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 04-2693383 | |
Entity Address, Address Line One | 1241 East Main Street | |
Entity Address, City or Town | Stamford | |
Entity Address, State or Province | CT | |
Entity Address, Postal Zip Code | 06902 | |
City Area Code | 203 | |
Local Phone Number | 352-8600 | |
Title of 12(b) Security | Class A Common Stock, par value $0.01 per share | |
Trading Symbol | WWE | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001091907 | |
Amendment Flag | false | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2020 | |
Common Class A [Member] | ||
Class of Stock [Line Items] | ||
Entity Common Stock, Shares Outstanding (in Shares) | 46,316,133 | |
Common Class B [Member] | ||
Class of Stock [Line Items] | ||
Entity Common Stock, Shares Outstanding (in Shares) | 31,099,011 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Consolidated Statements Of Operations [Abstract] | |||
Net revenues | $ 291,009 | $ 182,448 | |
Operating expenses | 175,389 | 135,450 | |
Marketing and selling expenses | 22,677 | 23,144 | |
General and administrative expenses | 28,750 | 24,293 | |
Depreciation and amortization | [1] | 10,900 | 6,420 |
Operating income (loss) | 53,293 | (6,859) | |
Interest expense | 8,151 | 6,339 | |
Other (expense) income, net | (10,420) | 1,849 | |
Income (loss) before income taxes | 34,722 | (11,349) | |
Provision for (benefit from) income taxes | 8,549 | (2,953) | |
Net income (loss) | $ 26,173 | $ (8,396) | |
Earnings (loss) per share: basic | $ 0.34 | $ (0.11) | |
Earnings (loss) per share: diluted | $ 0.31 | $ (0.11) | |
Weighted average common shares outstanding: | |||
Basic | 77,336 | 78,040 | |
Diluted | 85,100 | 78,040 | |
Dividends declared per common share (Class A and B) | $ 0.12 | $ 0.12 | |
[1] | Depreciation and amortization for the three months ended March 31, 2020 includes $ 2,266 of amortization related to the right-of-use asset for the Company’s new global headquarters lease, which commenced on July 1, 2019 and is accounted for as a finance lease. |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Consolidated Statements Of Comprehensive Income [Abstract] | ||
Net income (loss) | $ 26,173 | $ (8,396) |
Other comprehensive (loss) income: | ||
Foreign currency translation adjustments | (426) | 33 |
Unrealized holding gains (losses) on available-for-sale debt securities (net of tax (benefit) expense of $(506) and $230, respectively) | (1,602) | 727 |
Total other comprehensive (loss) income | (2,028) | 760 |
Comprehensive income (loss) | $ 24,145 | $ (7,636) |
Consolidated Statements Of Co_2
Consolidated Statements Of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Consolidated Statements Of Comprehensive Income [Abstract] | ||
Unrealized holding gains (losses) on available-for-sale debt securities, tax expense (benefit) | $ (506) | $ 230 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 158,520 | $ 90,447 |
Short-term investments, net | 132,999 | 160,034 |
Accounts receivable (net of allowance for doubtful accounts and returns of $1,115 and $818, respectively) | 136,315 | 124,771 |
Inventory | 8,259 | 8,252 |
Prepaid expenses and other current assets | 25,759 | 20,806 |
Total current assets | 461,852 | 404,310 |
PROPERTY AND EQUIPMENT, NET | 172,891 | 174,752 |
FINANCE LEASE RIGHT-OF-USE ASSETS, NET | 318,227 | 289,932 |
OPERATING LEASE RIGHT-OF-USE ASSETS, NET | 15,685 | 20,811 |
CONTENT PRODUCTION ASSETS, NET | 17,495 | 20,045 |
INVESTMENT SECURITIES | 16,374 | 28,106 |
DEFERRED INCOME TAX ASSETS, NET | 8,057 | 7,217 |
OTHER ASSETS, NET | 47,065 | 47,060 |
TOTAL ASSETS | 1,057,646 | 992,233 |
CURRENT LIABILITIES: | ||
Current portion of long-term debt | 2,416 | 3,613 |
Finance lease liabilities | 9,344 | 7,945 |
Operating lease liabilities | 3,623 | 6,586 |
Convertible debt | 190,158 | 188,667 |
Accounts payable and accrued expenses | 84,294 | 80,592 |
Deferred income | 62,406 | 56,941 |
Total current liabilities | 352,241 | 344,344 |
LONG-TERM DEBT | 22,000 | 22,098 |
FINANCE LEASE LIABILITIES | 368,696 | 335,465 |
OPERATING LEASE LIABILITIES | 12,177 | 14,571 |
OTHER NON-CURRENT LIABILITIES | 445 | 429 |
Total liabilities | 755,559 | 716,907 |
COMMITMENTS AND CONTINGENCIES | ||
STOCKHOLDERS’ EQUITY: | ||
Additional paid-in-capital | 417,257 | 405,353 |
Accumulated other comprehensive income | 836 | 2,864 |
Accumulated deficit | (116,780) | (133,664) |
Total stockholders' equity | 302,087 | 275,326 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | 1,057,646 | 992,233 |
Common Class A [Member] | ||
STOCKHOLDERS’ EQUITY: | ||
Common stock | 463 | 462 |
Common Class B [Member] | ||
STOCKHOLDERS’ EQUITY: | ||
Common stock | $ 311 | $ 311 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Accounts receivable, allowance for doubtful accounts and returns | $ 1,115 | $ 818 |
Common Class A [Member] | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 180,000,000 | 180,000,000 |
Common stock, shares issued | 46,311,161 | 46,181,320 |
Common stock, shares outstanding | 46,311,161 | 46,181,320 |
Common Class B [Member] | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 60,000,000 | 60,000,000 |
Common stock, shares issued | 31,099,011 | 31,099,011 |
Common stock, shares outstanding | 31,099,011 | 31,099,011 |
Consolidated Statements Of Stoc
Consolidated Statements Of Stockholders' Equity - USD ($) $ in Thousands | Common Stock [Member]Common Class A [Member] | Common Stock [Member]Common Class B [Member] | Additional Paid-In Capital [Member] | Accumulated Other Comprehensive Income [Member] | Accumulated Deficit [Member] | Common Class A [Member] | Common Class B [Member] | Total |
Balance, Shares at Dec. 31, 2018 | 43,721,000 | 34,303,000 | ||||||
Balance at Dec. 31, 2018 | $ 437 | $ 343 | $ 415,281 | $ 1,502 | $ (101,326) | $ 316,237 | ||
Net income (loss) | (8,396) | (8,396) | ||||||
Other comprehensive income (loss) | 760 | 760 | ||||||
Stock issuances, net, Shares | 18,000 | |||||||
Stock issuances, net | 1,157 | 1,157 | ||||||
Taxes paid related to net settlement upon vesting of equity awards | (51) | (51) | ||||||
Cash dividends declared | 2 | (9,368) | (9,366) | |||||
Stock-based compensation | 12,828 | 12,828 | ||||||
Balance, Shares at Mar. 31, 2019 | 43,739,000 | 34,303,000 | ||||||
Balance at Mar. 31, 2019 | $ 437 | $ 343 | 429,217 | 2,262 | (119,090) | 313,169 | ||
Balance, Shares at Dec. 31, 2019 | 46,181,000 | 31,099,000 | 46,181,320 | 31,099,011 | ||||
Balance at Dec. 31, 2019 | $ 462 | $ 311 | 405,353 | 2,864 | (133,664) | 275,326 | ||
Net income (loss) | 26,173 | 26,173 | ||||||
Other comprehensive income (loss) | (2,028) | (2,028) | ||||||
Stock issuances, net, Shares | 130,000 | |||||||
Stock issuances, net | $ 1 | 1,411 | 1,412 | |||||
Taxes paid related to net settlement upon vesting of equity awards | (2,572) | (2,572) | ||||||
Cash dividends declared | (9,289) | (9,289) | ||||||
Stock-based compensation | 13,065 | 13,065 | ||||||
Balance, Shares at Mar. 31, 2020 | 46,311,000 | 31,099,000 | 46,311,161 | 31,099,011 | ||||
Balance at Mar. 31, 2020 | $ 463 | $ 311 | $ 417,257 | $ 836 | $ (116,780) | $ 302,087 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
OPERATING ACTIVITIES: | ||
Net income (loss) | $ 26,173 | $ (8,396) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Amortization and impairments of content production assets | 8,911 | 8,952 |
Depreciation and amortization | 12,093 | 8,003 |
Other amortization | 4,268 | 3,496 |
Loss on equity investments | 11,718 | 194 |
Services provided in exchange for equity instruments | (231) | (760) |
Stock-based compensation | 13,065 | 12,828 |
Benefit from deferred income taxes | (840) | (780) |
Other non-cash adjustments | 4,767 | 1,035 |
Cash (used in)/provided by changes in operating assets and liabilities: | ||
Accounts receivable | (21,372) | 23,989 |
Inventory | (503) | (1,018) |
Prepaid expenses and other assets | 6,696 | (9,425) |
Content production assets | (9,277) | (4,836) |
Accounts payable, accrued expenses and other liabilities | 4,760 | (38,757) |
Deferred income | 5,668 | 12,224 |
Net cash provided by operating activities | 65,896 | 6,749 |
INVESTING ACTIVITIES: | ||
Purchases of property and equipment and other assets | (8,318) | (16,831) |
Purchases of short-term investments | (8,685) | (13,398) |
Proceeds from sales and maturities of short-term investments | 33,535 | 20,478 |
Purchase of investment securities | (120) | |
Net cash provided by (used in) investing activities | 16,532 | (9,871) |
FINANCING ACTIVITIES: | ||
Repayment of long-term debt | (1,295) | (1,268) |
Repayment of finance leases | (2,611) | (2,043) |
Dividends paid | (9,289) | (9,366) |
Taxes paid related to net settlement upon vesting of equity awards | (2,572) | (51) |
Proceeds from issuance of stock | 1,412 | 1,157 |
Net cash used in financing activities | (14,355) | (11,571) |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 68,073 | (14,693) |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 90,447 | 167,457 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 158,520 | 152,764 |
NON-CASH INVESTING AND FINANCING TRANSACTIONS: | ||
Purchases of property and equipment recorded in accounts payable and accrued expenses (See Note 12) | $ 4,531 | $ 10,325 |
Basis Of Presentation And Busin
Basis Of Presentation And Business Description | 3 Months Ended |
Mar. 31, 2020 | |
Basis Of Presentation And Business Description [Abstract] | |
Basis Of Presentation And Business Description | 1. B asis of Presentation and Business Description The accompanying consolidated financial statements include the accounts of WWE. “WWE” refers to World Wrestling Entertainment, Inc. and its subsidiaries, unless the context otherwise requires. References to “we,” “us,” “our” and the “Company” refer to WWE. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires our management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. The accompanying consolidated financial statements are unaudited. All adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation of financial position, results of operations, and cash flows at the dates and for the periods presented have been included. The results of operations of any interim period are not necessarily indicative of the results of operations for the full year. All intercompany balances are eliminated in consolidation. Certain information and note disclosures normally included in annual financial statements have been condensed or omitted from these interim financial statements; these financial statements should be read in conjunction with the financial statements and notes thereto included in our Form 10-K for the year ended December 31, 2019. We are an integrated media and entertainment company, principally engaged in the production and distribution of wrestling entertainment content through various channels, including our premium over-the-top subscription network (“WWE Network”), content rights agreements, pay-per-view event programming, filmed entertainment, live events, licensing of various WWE themed products, and the sale of consumer products featuring our brands. Our operations are organized around the following principal activities: Media : The Media segment reflects the production and monetization of long-form and short-form video content across various platforms, including WWE Network, broadcast and pay television, digital and social media, as well as filmed entertainment. Across these platforms, revenues principally consist of content rights fees, subscriptions to WWE Network, and advertising and sponsorships. Live Events : Live events provide ongoing content for our media platforms. Live Event segment revenues consist primarily of ticket sales, including primary and secondary distribution, revenues from events for which we receive a fixed fee, as well as the sale of travel packages associated with the Company’s global live events. Consumer Products : The Consumer Products segment engages in the merchandising of WWE branded products, such as video games, toys and apparel, through licensing arrangements and direct-to-consumer sales. Revenues principally consist of royalties and licensee fees related to WWE branded products, and sales of merchandise distributed at our live events and through eCommerce platforms. |
Significant Accounting Policies
Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2020 | |
Significant Accounting Policies [Abstract] | |
Significant Accounting Policies | 2. Significant Accounting Policies Our significant accounting policies are detailed in Note 2, Summary of Significant Accounting Policies , in the Notes to Consolidated Financial Statements within our Annual Report on Form 10-K for the year ended December 31, 2019. During the first quarter of 2020, the Company adopted new accounting guidance related to improvements to the accounting for film costs. Refer to Note 9, Content Production Assets, Net , for a description of the updated accounting policy. Additionally, the Company adopted new accounting guidance related to the measurement of credit losses for certain financial instruments. Refer to Note 10, Investment Securities and Short-Term Investments , for details on the adoption. Additional details related to these adoptions are described further below in Recent Accounting Pronouncements . Operating Expenses Operating expenses consist of our production costs associated with developing our content, costs associated with operating our WWE Network, venue rental and related costs associated with the staging of our live events, compensation costs for our talent, and material and related costs associated with our consumer product merchandise sales. In addition, operating expenses include certain business operating support function costs, including our talent development, data analytics, data engineering, business strategy and real estate and facilities functions, as these activities directly support the operations of our segments. Included within Operating expenses are the following: Three Months Ended March 31, 2020 2019 Amortization and impairment of content production assets $ 8,911 $ 8,952 Depreciation and amortization of WWE Network content delivery and technology assets 1,125 1,582 Amortization of right-of-use assets - finance leases of equipment 2,559 1,996 Depreciation on equipment used directly in revenue generating activities 136 — Total depreciation and amortization included in operating expenses $ 12,731 $ 12,530 Costs to produce our live event programming are expensed when the event is first broadcast, and are not included in the amortization table noted above. Recent Accounting Pronouncements In March 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2019-02, “ Improvements to Accounting for Costs of Films and License Agreements for Program Materials ”, in order to align the accounting for production costs of an episodic television series with the accounting for production costs of films by removing the content distinction for capitalization. The amendments also require that an entity reassess estimates of the use of a film in a film group and account for any changes prospectively. In addition, the amendments require that an entity test films and license agreements for program material for impairment at a film group level when the film or license agreements are predominantly monetized with other films and license agreements. The Company evaluated its portfolio of content assets in order to determine the predominant monetization strategies which now dictates the appropriate impairment model to apply. In general, the Company’s content assets related to original programming content airing on the WWE Network are predominantly monetized as a film group through monthly subscription fees collected from WWE Network subscribers, while the Company’s other content assets comprised largely of feature films and episodic television series which are licensed or sold to distributers are predominantly monetized individually through the underlying rights fees collected under the distribution arrangements. The Company previously provided separate captions within noncurrent assets on the face of the consolidated balance sheet for episodic television production assets and feature film production assets. With the adoption of the amendments, the Company now presents both episodic television and feature film production assets under one combined caption, Content production assets, net, within the noncurrent assets section of the consolidated balance sheet. To conform to the current period presentation, the Content productions assets, net balance of $ 20,045 as of December 31, 2019 is comprised of $ 15,873 of feature film production assets and $ 4,172 of television production assets. ASU 2019-02 is effective for fiscal years beginning after December 15, 2019. The Company adopted the amendments on January 1, 2020 with no material impact to our consolidated financial statements upon adoption. Refer to Note 9, Content Production Assets, Net , for further details. In November 2018, the FASB issued ASU No. 2018-18, “ Collaborative Arrangements (Topic 808) – Clarifying the Interaction between Topic 808 and Topic 606 .” The amendments in this ASU clarifies that certain transactions between collaborative arrangement participants should be accounted for as revenue under Topic 606, Revenue from Contracts with Customers, when the collaborative arrangement participant is a customer in the context of a unit of account and precludes recognizing as revenue consideration received from a collaborative arrangement participant if the participant is not a customer. The new guidance is effective for fiscal years beginning after December 15, 2019. The Company adopted the amendment on January 1, 2020 with no impact on our consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-15, “ Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract .” The new guidance aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The accounting for the service element of a hosting arrangement that is a service contract is not affected by the amendments in this update. The new guidance is effective for fiscal years beginning after December 15, 2019. The Company adopted the amendments on January 1, 2020 and applied the amendments prospectively to all implementation costs incurred after the date of adoption. In August 2018, the FASB issued ASU No. 2018-13, “ Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement ”, which modifies the disclosure requirements on fair value measurements. The new guidance is effective for fiscal years beginning after December 15, 2019. Upon the effective date, certain provisions are to be applied prospectively, while others are to be applied retrospectively to all periods presented. The amendments eliminated certain disclosure requirements such as the elimination of disclosing the valuation process for Level 3 fair value measurements. Other amendments in the update did not largely impact the Company. The Company adopted the amendments on January 1, 2020 with no impact on our consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, “ Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ” (“ASU 2016-13”), which requires an entity to assess impairment of its financial instruments based on its estimate of expected credit losses. Since the issuance of ASU 2016-13, the FASB released several amendments to improve and clarify the implementation guidance. The provisions of ASU 2016-13 and the related amendments are effective for fiscal years beginning after December 15, 2019. Entities are required to apply these changes through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. The Company evaluated its financial instruments and determined that its trade accounts receivables are subject to the new current expected credit loss model and the Company’s available-for-sale debt securities are subject to the new modified credit impairment guidance. Based upon the application of the new current expected credit loss model on our opening balance of accounts receivable as of January 1, 2020, we determined that no material incremental credit loss reserve is needed and accordingly did not record a cumulative effect adjustment. As of the adoption date on January 1, 2020, the Company applied the new credit impairment guidance for available-for-sale debt securities on a prospective basis. Refer to Note 10, Investment Securities and Short-Term Investments , for further information on our available-for-sale debt securities. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2020 | |
Segment Information [Abstract] | |
Segment Information | 3. Segment Information The Company currently classifies its operations into three reportable segments: Media, Live Events and Consumer Products. Segment information is prepared on the same basis that our chief operating decision maker manages the segments, evaluates financial results, and makes key operating decisions. Certain business support functions including sales and marketing, our international offices and talent development are allocated to the three reportable segments based primarily on a percentage of revenue contribution. The remaining unallocated corporate expenses largely relate to corporate functions such as finance, legal, human resources, facilities and information technology. The Company does not allocate these costs to its business segments, as they do not directly relate to revenue generating activities. These unallocated corporate expenses will be shown, as applicable, as a reconciling item in tables where segment and consolidated results are both shown. Revenues from transactions between our operating segments are not material. The Company presents Adjusted OIBDA as the primary measure of segment profit (loss). The Company defines Adjusted OIBDA as operating income before depreciation and amortization, excluding stock-based compensation, certain impairment charges and other non-recurring material items. Adjusted OIBDA includes depreciation and amortization expenses directly related to our revenue generating activities, including content production asset amortization, depreciation and amortization of costs related to content delivery and technology assets utilized for our WWE Network, as well as amortization of right-of-use assets related to finance leases of equipment used to produce and broadcast our live events. The Company believes the presentation of Adjusted OIBDA is relevant and useful for investors because it allows investors to view our segment performance in the same manner as the primary method used by management to evaluate segment performance and make decisions about allocating resources. Additionally, we believe that Adjusted OIBDA is a primary measure used by media investors, analysts and peers for comparative purposes. We do not disclose assets by segment information. We do not provide assets by segment information to our chief operating decision maker, as that information is not typically used in the determination of resource allocation and assessing business performance of each reportable segment. The following tables present summarized financial information for each of the Company's reportable segments: Three Months Ended March 31, 2020 2019 Net revenues: Media $ 256,558 $ 135,447 Live Events 17,529 26,239 Consumer Products 16,922 20,762 Total net revenues $ 291,009 $ 182,448 Adjusted OIBDA: Media $ 102,636 $ 28,500 Live Events ( 2,643 ) 794 Consumer Products 3,845 6,020 Corporate ( 26,580 ) ( 22,925 ) Total Adjusted OIBDA $ 77,258 $ 12,389 Reconciliation of Total Operating Income (Loss) to Total Adjusted OIBDA Three Months Ended March 31, 2020 2019 Total operating income (loss) $ 53,293 $ ( 6,859 ) Depreciation and amortization (1) 10,900 6,420 Stock-based compensation 13,065 12,828 Other adjustments — — Total Adjusted OIBDA $ 77,258 $ 12,389 (1) Depreciation and amortization for the three months ended March 31, 2020 includes $ 2,266 of amortization related to the right-of-use asset for the Company’s new global headquarters lease, which commenced on July 1, 2019 and is accounted for as a finance lease. |
Revenues
Revenues | 3 Months Ended |
Mar. 31, 2020 | |
Revenues [Abstract] | |
Revenues | 4. Revenues Revenues are generally recognized when control of the promised goods or services is transferred to our customers either at a point in time or over time, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. Most of our contracts have one performance obligation and all consideration is allocated to that performance obligation. Our revenues do not include material amounts of variable consideration. The variable consideration contained in our contracts relate primarily to sales or usage-based royalties earned on consumer product licensing contracts. The variability related to these sales or usage-based royalties will be resolved in the periods when the licensee generates sales related to the intellectual property license. As it relates to our Consumer Products segment, the Company accounts for shipping and handling activities as fulfillment activities. We derive our revenues principally from the following sources: (i) content rights fees associated with the distribution of WWE’s media content, (ii) subscriptions to WWE Network, (iii) fees for viewing our pay-per-view programming, (iv) feature film distribution, (v) advertising and sponsorship sales, (vi) live event ticket sales, (vii) consumer product licensing royalties from the sale by third-party licensees of WWE branded merchandise, (viii) direct-to-consumer sales of merchandise at our live event venues, and (ix) direct-to-consumer sales of our merchandise through eCommerce platforms. Disaggregated Revenues The following table presents our revenues disaggregated by primary revenue sources. Sales and usage-based taxes are excluded from revenues. Three Months Ended March 31, 2020 2019 Net revenues: Media Segment : Network (including pay-per-view) $ 43,535 $ 47,013 Core content rights fees (1) 133,197 68,096 Advertising and sponsorships 17,348 10,873 Other (2) 62,478 9,465 Total Media Segment net revenues 256,558 135,447 Live Events Segment : North American ticket sales 15,206 24,160 International ticket sales 210 193 Advertising and sponsorships 66 405 Other (3) 2,047 1,481 Total Live Events Segment net revenues 17,529 26,239 Consumer Products Segment : Consumer product licensing 7,719 9,428 eCommerce 6,008 6,577 Venue merchandise 3,195 4,757 Total Consumer Products Segment net revenues 16,922 20,762 Total net revenues $ 291,009 $ 182,448 (1) Core content rights fees consist primarily of licensing revenues earned from the distribution of our flagship programs, RAW and SmackDown , as well as our NXT programming, through global broadcast, pay television and digital platforms. (2) Other revenues within our Media segment reflect revenues earned from the distribution of other WWE content, including, but not limited to, certain live in-ring programming in international markets, scripted, reality and other programming, as well as theatrical and direct-to-home video releases. (3) Other revenues within our Live Events segment primarily consists of the sale of travel packages associated with the Company’s global live events and commissions earned through secondary ticketing, as well as revenues from events for which the Company receives a fixed fee. Except for our WWE Network subscriptions revenues, which are recorded over time during the subscription term and our consumer product licensing revenues which are recorded over time during the licensing period, our other revenue streams identified in the table above are generally recognized at a point-in-time when the performance obligations are satisfied. Payment Terms and Other Our revenues do not include material amounts of variable consideration, other than the sale or usage-based royalties earned related to our consumer product licensing and certain other content rights contracts. Our payment terms vary by the type of products or services offered, and may be subject to contractual payment terms, which may include advance payment requirements. The time between invoicing and when payment is due is not significant, generally within 30 to 60 days. We have elected the practical expedient to not adjust the total consideration within a contract to reflect a financing component when the duration of the financing is one year or less. Our contracts do not generally include a significant financing component. Our contracts with customers do not generally result in significant obligations associated with returns, refunds or warranties. Remaining Performance Obligations As of March 31, 2020, for contracts greater than one year, the aggregate amount of the transaction price allocated to remaining performance obligations is $ 3,565,491 , comprised of our multi-year content distribution, consumer product licensing and sponsorship contracts. We will recognize rights fees related to our multi-year content distribution contracts as content is delivered to the distributors during the periods 2020 through 2027. We will recognize the revenues associated with the minimum guarantees on our multi-year consumer product licensing arrangements by the end of the licensing periods, which range from 2020 through 2025. For our multi-year sponsorship arrangements, we will recognize sponsorship revenues as the sponsorship obligations are satisfied during the periods 2020 through 2027. The transaction price related to these future obligations do not include any variable consideration, which generally consists of sales or usage-based royalties earned on consumer product licensing and certain other content rights contracts. The variability related to these sales or usage-based royalties will be resolved in the periods when the licensee generates sales related to the intellectual property license. Contract Assets and Contract Liabilities (Deferred Revenues) A contract asset results when goods or services have been transferred to the customer, but payment is contingent upon a future event, other than the passage of time (i.e. type of unbilled receivable). The Company does not have any material unbilled receivables, therefore, does not have any contract assets, only accounts receivable as disclosed on our Consolidated Balance Sheets. We record deferred revenues (also referred to as contract liabilities under ASC Topic 606) when cash payments are received or due in advance of our performance. Our deferred revenue balance primarily relates to advance payments received related to our content distribution rights agreements, our consumer product licensing agreements, and our sponsorship and advertising arrangements. The Company’s deferred revenue (i.e. contract liabilities) as of March 31, 2020 and December 31, 2019 was $ 62,462 and $ 57,025 , respectively, and are included within Deferred income and Other non-current liabilities on our Consolidated Balance Sheets. The net increase in the deferred revenue balance for the three months ended March 31, 2020 of $ 5,437 is primarily driven by licensing advances received, partially offset by revenue recognized during the period as a result of satisfying our performance obligations. Contract Costs (Costs of Obtaining a Contract) Except for certain multi-year television content arrangements, we generally expense sales commissions when incurred because the amortization period would have been one year or less. These costs are recorded within Marketing and selling expenses within our Consolidated Statements of Operations. Capitalized commission fees of $ 800 and $ 825 at March 31, 2020 and December 31, 2019, respectively, relate primarily to incremental costs of obtaining our long-term television content arrangements and these costs are being amortized over the duration of the underlying content agreements on a straight-line basis to marketing and selling expense. During the three months ended March 31, 2020 and 2019, the amount of amortization was $ 25 and $ 345 , respectively, and there was no impairment in relation to the costs capitalized. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 3 Months Ended |
Mar. 31, 2020 | |
Earnings (Loss) Per Share [Abstract] | |
Earnings (Loss) Per Share | 5. Earnings (Loss) Per Share For purposes of calculating basic and diluted earnings (loss) per share, we used the following weighted average common shares outstanding (in thousands): Three Months Ended March 31, 2020 2019 Net income (loss) $ 26,173 $ ( 8,396 ) Weighted average basic common shares outstanding 77,336 78,040 Dilutive effect of restricted and performance stock units (1) 638 — Dilutive effect of convertible debt instruments (1) 7,116 — Dilutive effect of employee share purchase plan (1) 10 — Weighted average dilutive common shares outstanding 85,100 78,040 Earnings (loss) per share: Basic $ 0.34 $ ( 0.11 ) Diluted $ 0.31 $ ( 0.11 ) Anti-dilutive shares (excluded from per-share calculations): Shares issued under Convertible Notes and Warrants — 11,429 Net shares received on purchased call of convertible debt hedge ( 4,181 ) ( 6,072 ) Outstanding restricted and performance stock units — 1,798 (1) Due to a net loss during the three months ended March 31, 2019, zero incremental shares are included because the effect would be antidilutive. Effect of Convertible Notes and Related Convertible Note Hedge and Warrants In connection with the issuance of the Convertible Notes, the Company entered into Convertible Note Hedge and Warrant transactions as described further in Note 13, Convertible Debt . The collective impact of the Convertible Note Hedge and Warrants effectively eliminates any economic dilution that may occur from the actual conversion of the Convertible Notes between the conversion price of $ 24.91 per share and the strike price of the Warrants of $ 31.89 per share. For reporting periods with net income, the denominator of our diluted earnings per share calculation includes the effect of additional shares issued using the treasury stock method since the average price of our common stock exceeded the conversion price of the Convertible Notes of $ 24.91 per share. In addition, the denominator also includes the additional shares issued related to the Warrants using the treasury stock method since the average price of our common stock exceeded the strike price of the Warrants of $ 31.89 per share. The dilution from the Convertible Notes had a $ 0.03 impact on diluted earnings per share for the three months ended March 31, 2020. Due to a net loss during the three months ended March 31, 2019, there was no impact on diluted earnings per share as the effect would have been antidilutive. Prior to actual conversion, the Convertible Note Hedges are not considered for purposes of the calculation of diluted earnings per share, as their effect would be anti-dilutive. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2020 | |
Stock-Based Compensation [Abstract] | |
Stock-Based Compensation | 6. Stock-based Compensation Our 2016 Omnibus Incentive Plan (the “2016 Plan”) provides for the grant of incentive or non-qualified stock options, stock appreciation rights, restricted stock, restricted stock units, other stock-based awards and performance awards to eligible participants as determined by the Compensation Committee of the Board of Directors. Awards may be granted as incentives and rewards to encourage officers, employees, consultants, advisors and independent contractors of the Company and its affiliates and to non-employee directors of the Company to participate in our long-term success. Stock-based compensation costs, which includes costs related to RSUs, PSUs, PSU-TSRs, the Company's qualified employee stock purchase plan and shares issued to the Company’s Board of Directors, totaled $ 13,065 and $ 12,828 for the three months ended March 31, 2020 and 2019, respectively. During the first quarter of 2020, certain executives of the Company who received PSUs and PSU-TSRs departed the Company, and therefore forfeited their respective shares. The Company estimates forfeitures on our stock-based compensation awards based on historical trends when recognizing compensation expense and adjust the estimate of forfeitures when they are expected to differ or as forfeitures occur. The units associated with these awards are included in the respective tables below. Restricted Stock Units The Company grants restricted stock units ("RSUs") to officers and employees under the 2016 Plan. Stock-based compensation costs associated with our RSUs are determined using the fair market value of the Company’s common stock on the date of the grant. These costs are recognized over the requisite service period using the graded vesting method, net of estimated forfeitures. RSUs have a service requirement typically over a 3.5 years vesting schedule and vest in equal annual installments. We estimate forfeitures based on historical trends when recognizing compensation expense and adjust the estimate of forfeitures when they are expected to differ or as forfeitures occur. Unvested RSUs accrue dividend equivalents at the same rate as are paid on our shares of Class A common stock. The dividend equivalents are subject to the same vesting schedule as the underlying RSUs. During the first quarter of 2020, the Compensation Committee approved the grant of RSUs to eligible employees for an aggregate value of $ 7,758 . These awards vary from the typical RSU grant in that the awards vested immediately upon grant. The units associated with these awards are included in the table below. The following table summarizes the RSU activity during the three months ended March 31, 2020: Units Weighted- Average Grant-Date Fair Value Unvested at January 1, 2020 272,407 $ 45.41 Granted 303,385 $ 50.21 Vested ( 154,585 ) $ 50.25 Forfeited ( 5,973 ) $ 47.48 Dividend equivalents 1,444 $ 47.08 Unvested at March 31, 2020 416,678 $ 47.09 Performance Stock Units The Company grants performance stock units (“PSUs”) to officers and employees under the 2016 Plan. Stock-based compensation costs associated with our PSUs are initially determined using the fair market value of the Company’s common stock on the date the awards are approved by our Compensation Committee (service inception date). The vesting of these PSUs are subject to certain performance conditions and a service requirement of typically 3.5 years. Until the performance conditions are met, stock compensation costs associated with these PSUs are re-measured each reporting period based upon the fair market value of the Company's common stock and the estimated performance attainment on the reporting date. The ultimate number of PSUs that are issued to an employee is the result of the actual performance of the Company at the end of the performance period compared to the performance conditions. Stock compensation costs for our PSUs are recognized over the requisite service period using the graded vesting method, net of estimated forfeitures. We estimate forfeitures based on historical trends when recognizing compensation expense and adjust the estimate of forfeitures when they are expected to differ or as forfeitures occur. Unvested PSUs accrue dividend equivalents once the performance conditions are met at the same rate as are paid on our shares of Class A common stock. The dividend equivalents are subject to the same vesting schedule as the underlying PSUs. The following table summarizes the PSU activity during the three months ended March 31, 2020: Units Weighted- Average Grant-Date Fair Value Unvested at January 1, 2020 721,398 $ 67.97 Granted 249,564 $ 33.93 Achievement adjustment ( 40,509 ) $ 44.50 Forfeited ( 96,545 ) $ 62.82 Dividend equivalents 2,039 $ 65.24 Unvested at March 31, 2020 835,947 $ 55.89 During the year ended December 31, 2019, we granted 155,872 PSUs, which were subject to performance conditions. During the first quarter of 2020, it was determined that the performance conditions related to these PSUs were partially met, which resulted in an achievement adjustment decrease of 40,509 PSUs in 2020 relating to the initial 2019 PSU grant. Performance Stock Units with a Market Condition Tied to Relative Total Shareholder Return In March 2018, the Compensation Committee approved certain agreements to grant PSUs with a market condition (“PSU-TSRs”) where vesting is conditioned upon the total shareholder return performance of the Company’s stock relative to the performance of a peer group over five distinct performance periods from 2018 through 2024. Each fixed performance period begins in March 2018, but has an increasing performance period duration. The five distinct performance periods end in March from 2020 to 2024, with the awards for each performance period vesting in July of each year. The payout for each performance period can vest at between 50 % and 175 % of the target award based on the percentile ranking of WWE’s total shareholder return performance with vesting capped at 100 % if WWE’s absolute total shareholder return is negative. The grant date fair value of the award was calculated using a Monte-Carlo simulation model which factors in the number of awards to be earned based on the achievement of the market condition. This model simulates the various stock price movements of the Company and peer group companies using certain assumptions, including the stock price of WWE and those of the peer group, stock price volatility, the risk-free interest rate, correlation coefficients, and expected dividend yield. The grant date fair value of the award is being amortized as compensation cost over the requisite service period using the graded vesting method. The following table summarizes the PSU-TSR activity during the three months ended March 31, 2020: Units Weighted- Average Grant-Date Fair Value Unvested at January 1, 2020 340,971 $ 47.42 Granted — $ — Achievement adjustment 7,672 $ 47.30 Vested — $ — Forfeited ( 272,777 ) $ 47.96 Unvested at March 31, 2020 75,866 $ 47.30 During the first quarter of 2020, it was determined that the percentile ranking of WWE’s total shareholder return performance related to the first performance period were met, which resulted in an achievement adjustment increase of 7,672 PSU-TSRs in 2020 relating to the initial 2018 PSU-TSR grant. |
Property And Equipment
Property And Equipment | 3 Months Ended |
Mar. 31, 2020 | |
Property And Equipment [Abstract] | |
Property And Equipment | 7. Property and Equipment Property and equipment consisted of the following: As of March 31, December 31, 2020 2019 Land, buildings and improvements $ 164,304 $ 163,202 Equipment 149,094 139,137 Corporate aircraft 32,249 32,249 Vehicles 1,030 1,030 Projects in progress 13,511 16,931 360,188 352,549 Less: accumulated depreciation and amortization ( 187,297 ) ( 177,797 ) Total $ 172,891 $ 174,752 Depreciation expense for property and equipment totaled $ 9,566 and $ 6,173 for the three months ended March 31, 2020 and 2019, respectively. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Leases | 8. Leases Information about the Nature of WWE’s Lease Portfolio As of March 31, 2020, the Company’s lease portfolio consists of operating and finance real estate leases for its sales offices, performance centers, warehouses and corporate related facilities. In addition, we have various live event production service arrangements that contain operating and finance equipment leases. With the exception of our new global headquarters lease that commenced on July 1, 2019 with an 18 -month free rent period followed by an initial base term of 15 years with options to renew, our other real estate leases have remaining lease terms of approximately one year to eight years , some of which may also include options to extend the leases. Our equipment leases, which are included as part of various operating service arrangements, generally have remaining lease terms of approximately one year to seven years . Generally, no covenants are imposed by our lease agreements. Key Estimates and Judgments Key estimates and judgments made in applying the lease accounting rules include how the Company determines (i) the discount rate it uses to discount the unpaid lease payments to present value, (ii) lease term and (iii) lease payments. ASC 842 requires a lessee to discount its unpaid lease payments using the interest rate implicit in the lease or, if that rate cannot be readily determined, its incremental borrowing rate. Generally, the Company cannot readily determine the interest rate implicit in the lease and therefore uses the incremental borrowing rate for its leases. The incremental borrowing rate reflects the rate of interest that the Company would pay on a collateralized basis to borrow an amount equal to the lease payments under similar terms. The incremental borrowing rates were generally determined by estimating the appropriate collateralized borrowing rates to be used for our leases and considered certain factors including, the lease term, economic environment and the assumed credit rating profile of the Company. The lease term for all of the Company’s lease arrangements include the noncancelable period of the lease plus, if applicable, any additional periods covered by an option to extend the lease that is reasonably certain to be exercised by the Company. Quantitative Disclosures Related to Leases The following table provides quantitative disclosure about the Company’s operating and financing leases for the periods presented: Three Months Ended March 31, March 31, 2020 2019 Lease costs Finance lease costs: Amortization of right-of-use assets $ 4,825 $ 1,996 Interest on lease liabilities 4,428 1,377 Operating lease costs 1,588 2,467 Other short-term and variable lease costs 454 536 Sublease income (1) ( 16 ) ( 16 ) Total lease costs $ 11,279 $ 6,360 Other information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from finance leases $ 241 $ 185 Operating cash flows from operating leases $ 1,379 $ 2,208 Finance cash flows from finance leases $ 2,611 $ 2,043 Right-of-use assets obtained in exchange for new finance lease liabilities $ 33,120 $ — Right-of-use assets obtained in exchange for new operating lease liabilities $ 1,348 $ — As of March 31, 2020 2019 Weighted-average remaining lease term - finance leases 28.7 years 4.7 years Weighted-average remaining lease term - operating leases 4.9 years 5.3 years Weighted-average discount rate - finance leases 4.8 % 4.5 % Weighted-average discount rate - operating leases 4.3 % 4.6 % (1) Sublease income excludes rental income from owned properties. Maturity of lease liabilities as of March 31, 2020 were as follows: Operating Finance Leases Leases 2020 $ 3,205 $ 8,634 2021 4,103 26,677 2022 3,752 26,387 2023 2,203 26,481 2024 1,736 26,240 Thereafter 2,649 642,771 Total lease payment 17,648 757,190 Less: imputed interest ( 1,848 ) ( 379,150 ) Total future minimum lease payments $ 15,800 $ 378,040 |
Content Production Assets, Net
Content Production Assets, Net | 3 Months Ended |
Mar. 31, 2020 | |
Content Production Assets, Net [Abstract] | |
Content Production Assets, Net | 9. Content Production Assets, Net Accounting Policy on Content Production Assets The Company is primarily a content producer with content production assets consisting of feature films, non-live event episodic television series, and original programming content for our WWE Network. Feature film titles are predominantly monetized on their own through exploitation and exhibition through individual film distribution arrangements or by sale to a third party. The non-live event episodic television series are predominantly monetized on their own through individual television distribution arrangements. The original WWE Network programming content are predominantly monetized as a film group through the collection of monthly subscription fees from the WWE Network. Amounts capitalized for content production assets typically include development costs, production costs, production overhead, and employee salaries and are net of any film production incentives associated with our feature films. Content production assets related to our feature films are amortized in the proportion that revenues bear to management’s estimates of the ultimate revenue expected to be recognized from exploitation, exhibition or sale. Content production assets related to non-live event episodic television series are expensed upon delivery of the completed programming content to the individual television distributors. Our programming content distributed on our subscription-based WWE Network is expensed based upon viewership consumption patterns. Unamortized content production costs are evaluated for impairment whenever events or changes in circumstances indicate that the fair value of a film predominantly monetized on its own or a film group may be less than its unamortized costs. As it relates to our unamortized feature film production assets, if estimates for a feature film’s ultimate revenues and/or costs are revised and indicate a significant decline in a film’s profitability or if events or circumstances change that indicate we should assess whether the fair value of a film is less than its unamortized film costs, we calculate the film's estimated fair value using a discounted cash flows model. If fair value is less than the unamortized cost, the film is written down to fair value. Our estimate of ultimate revenues for feature films includes revenues from all sources for ten years from the date of a film’s initial release. We estimate the ultimate revenues based on industry and Company specific trends, the historical performance of similar films, the star power of the lead actors, and the genre of the film. Prior to the release of a feature film and throughout its life, we revise our estimates of revenues based on expected future results, actual results and other known factors affecting the various distribution markets. As it relates to our unamortized non-live event episodic television series content assets, if conditions indicate a potential impairment, and the estimated future cash flows using a discounted cash flow model are not sufficient to recover the unamortized asset, the asset is written down to fair value. As it relates to our unamortized original WWE Network programming content assets, which are predominantly monetized as film group, we review in aggregate at a group level when an event or change in circumstances indicates a change in the expected usefulness of the content or that the fair value may be less than unamortized cost. In addition, if we determine that a program will not likely air, we expense the remaining unamortized asset. Other Content Production Asset Information Content production assets consisted of the following: Predominantly Monetized Individually Predominantly Monetized as a Film Group As of As of March 31, December 31, March 31, December 31, 2020 2019 2020 2019 In release $ 7,645 $ 8,735 $ 525 $ 580 Completed but not released 2,176 8 307 163 In production 6,166 9,978 283 378 In development 393 203 — — Total $ 16,380 $ 18,924 $ 1,115 $ 1,121 As of March 31, 2020, all of the “completed but not released” content assets that are monetized individually are estimated to be amortized over the next 12 months and approximately 71 % of the “in release” content assets monetized individually are estimated to be amortized over the next three years. As of March 31, 2020, all of the “completed but not released” content assets and “in release” content assets monetized as a film group are estimated to be amortized over the next 12 months. Amortization and impairment of content production assets consisted of the following: Three Months Ended March 31, 2020 2019 Content production amortization expense - assets monetized individually $ 7,464 $ 7,507 Content production amortization expense - assets monetized as a film group 1,287 1,231 Content production impairment charges (1) 160 198 Content production development write-offs (2) — 16 Total amortization and impairment of content production assets $ 8,911 $ 8,952 (1) Unamortized content production assets are evaluated for impairment whenever events or changes in circumstances indicate that the fair value of a film predominantly monetized on its own or a film group may be less than its unamortized costs. If conditions indicate a potential impairment, and the estimated future cash flows are not sufficient to recover the unamortized asset, the asset is written down to fair value. In addition, if we determine that content will not likely air, we will expense the remaining unamortized asset. (2) Capitalized script development costs are evaluated at each reporting period for impairment and to determine if a project is deemed to be abandoned. Amortization and impairment expenses related to content production assets are included in the Company’s Media segment, and as a component of Operating expenses on the Consolidated Statements of Operations. Costs to produce our live event programming are expensed immediately when the event is first broadcast and are not included in the content asset amortization amounts above. |
Investment Securities And Short
Investment Securities And Short-Term Investments | 3 Months Ended |
Mar. 31, 2020 | |
Investment Securities And Short-Term Investments [Abstract] | |
Investment Securities And Short-Term Investments | 10. Investment Securities and Short-Term Investments Investment Securities Included within Investment Securities are the following: As of March 31, December 31, 2020 2019 Equity method investments $ 5,500 $ 14,342 Nonmarketable equity investments without readily determinable fair values 10,644 13,359 Marketable equity investments with readily determinable fair values 230 405 Total investment securities $ 16,374 $ 28,106 Equity Method Investments Our equity method investments relate primarily to an investment in an apparel and lifestyle brand. To the extent the investees record income or losses, the Company records our share proportionate to our ownership percentage, and any dividends received reduce the carrying value amount of the investments. Net equity method earnings from our equity method investments are included as a component of Other (expense) income, net on the Consolidated Statements of Operations. Net dividends received from our equity method investments are reflected on the Consolidated Statements of Cash Flows within Net cash provided by operating activities. We evaluate our equity method investments for impairment when events indicate that the fair value of the investments may be below the carrying value. When such a condition is deemed to be other than temporary, the carrying value of the investment is written down to its fair value. During the first quarter of 2020, the Company recorded an impairment charge of $ 8,828 on our equity method investments for the excess of the carrying value over its estimated fair value as a result of our impairment evaluation. We determined fair value using a discounted cash flow model using recent forecasts from the investee, which indicated a decline in the value of the investment. The decline in value is due to the significant adverse impact on retail market conditions caused by COVID-19 combined with lower sales forecasts. This impairment charge is included as a component of Other (expense) income, net in the Consolidated Statements of Operations. The Company did no t record any impairment charges related to our equity method investments during the three months ended March 31, 2019. The following table presents the net equity method earnings from our equity method investments and net dividends received from our equity method investments for the periods presented: Three Months Ended March 31, 2020 2019 Net equity method earnings $ 183 $ 232 Net dividends received ( 197 ) ( 161 ) Equity in earnings of affiliate, net of dividends received $ ( 14 ) $ 71 Nonmarketable Equity Investments Without Readily Determinable Fair Values We evaluate our nonmarketable equity investments without readily determinable fair values for impairment if factors indicate that a significant decrease in value has occurred. The Company has elected to use the measurement alternative to fair value that will allow these investments to be recorded at cost, less impairment, and adjusted for subsequent observable price changes. During the first quarter of 2020, the Company recorded an impairment charge of $ 2,715 on our investment in a themed attraction touring company for the excess of the carrying value over its estimated fair value as a result of our impairment evaluation. This evaluation indicated a decline in the value of the investment due largely to significant adverse changes in the economic and market conditions caused by COVID-19. This impairment charge is included as a component of Other (expense) income, net in the Consolidated Statements of Operations. The Company did not record any impairment charges on these investments during the three months ended March 31, 2019. In addition, there were no observable price change events that were completed during the three months ended March 31, 2020 and 2019. Marketable Equity Investments With Readily Determinable Fair Values As of March 31, 2020, our investment portfolio includes one investment in a marketable equity security of a publicly traded company. The Company accounts for the equity investment in the common stock of Phunware Inc. (“Phunware”), a software application developer, as a marketable equity investment with readily determinable fair values based on quoted prices on the NASDAQ. During the three months ended March 31, 2020 and 2019, the Company recorded an unrealized holding loss of $ 175 and $ 194 , respectively, based on the closing price of the investee company as of the last trading day of the period, which is included as a component of Other (expense) income, net in the Consolidated Statements of Operations. Short-Term Investments Short-term investments consist of available-for-sale debt securities which are measured at fair value and consisted of the following: As of March 31, 2020 As of December 31, 2019 Gross Unrealized Gross Unrealized Amortized Fair Amortized Fair Cost Gain (Loss) Value Cost Gain (Loss) Value U.S. Treasury securities $ 25,944 $ 150 $ — $ 26,094 $ 32,124 $ 27 $ ( 13 ) $ 32,138 Corporate bonds 101,411 9 ( 2,328 ) 99,092 120,012 89 ( 74 ) 120,027 Municipal bonds — — — — 2,165 — — 2,165 Government agency bonds 7,713 100 — 7,813 5,693 11 — 5,704 Total $ 135,068 $ 259 $ ( 2,328 ) $ 132,999 $ 159,994 $ 127 $ ( 87 ) $ 160,034 The Company adopted ASU No. 2016-13, “ Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ” on January 1, 2020 and applied the new modified credit impairment guidance related to available-for-sale debt securities prospectively. Under the new guidance, at each reporting date, entities must evaluate their individual available-for-sale debt securities that are in an unrealized loss position and determine whether the decline in fair value below the amortized cost basis results from a credit loss or other factors. The amount of the decline related to credit losses are recorded as a credit loss expense in earnings with a corresponding allowance for credit losses and the amount of the decline not related to credit losses are recorded through other comprehensive income, net of tax. As of March 31, 2020, our corporate bond portfolio reported unrealized losses of $ 2,328 . Based on our evaluations, we determined that a credit loss allowance is not required since the decline was not related to underlying credit issues of the counterparties. The counterparties to these investments have high credit quality with investment grade ratings of at least A- or above, along with a history of no defaults. No single investment in the corporate bond portfolio had an individually material unrealized loss, and the total amount of unrealized losses as of March 31, 2020 was only 2.3 % of the total amortized costs basis of the corporate bond portfolio, and therefore did not materially exceed total fair value. In addition, the contractual terms of our corporate bonds do not permit the issuers to settle the securities at a price less than the amortized costs bases of the investments (i.e. at a minimum the principal amount invested is recovered at maturity). Furthermore, the Company generally does not intend to sell these investments and it is not more likely than not that the Company will be required to sell these investments before recovery of their amortized cost bases. Accordingly, during the three months ended March 31, 2020, the entire amount of the decline in fair value below the amortized cost basis was recorded as an unrealized loss, net of tax, in other comprehensive loss in the Consolidated Statements of Comprehensive Income. Unrealized gains are also reflected, net of tax, as other comprehensive income (loss) in the Consolidated Statements of Comprehensive Income. Our U.S. Treasury securities, corporate bonds, municipal bonds and government agency bonds are included in Short-term investments, net on our Consolidated Balance Sheets. Realized gains and losses on investments are included in earnings and are derived using the specific identification method for determining the cost of securities sold. As of March 31, 2020, contractual remaining maturities of these securities are as follows: Maturities U.S. Treasury securities 1 month - 1 year Corporate bonds 1 month - 3 years Municipal bonds N/A Government agency bonds 9 months - 1 year During the three months ended March 31, 2020 and 2019, we recognized $ 921 and $ 1,450 , respectively, of interest income on our short-term investments. Interest income is reflected as a component of Other income, net within our Consolidated Statements of Operations. The following table summarizes the short-term investment activity: Three Months Ended March 31, 2020 2019 Proceeds from sales and maturities of short-term investments $ 33,535 $ 20,478 Purchases of short-term investments $ 8,685 $ 13,398 |
Fair Value Measurement
Fair Value Measurement | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Measurement [Abstract] | |
Fair Value Measurement | 11. Fair Value Measurement Fair value is determined based on the exchange price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. The accounting guidance establishes a three-level hierarchy that ranks the quality and reliability of information used in developing fair value estimates. The hierarchy gives the highest priority to quoted prices in active markets and the lowest priority to unobservable data. In cases where two or more levels of inputs are used to determine fair value, a financial instrument's level is determined based on the lowest level input that is considered significant to the fair value measurement in its entirety. The three input levels of the fair value hierarchy are summarized as follows: Level 1- Observable inputs such as quoted prices in active markets for identical assets or liabilities; Level 2- Inputs other than quoted prices in active markets for similar assets and liabilities that are directly or indirectly observable; or Level 3- Unobservable inputs, such as discounted cash flow models or valuations, in which little or no market data exists. Certain financial instruments are carried at cost on the Consolidated Balance Sheets, which approximates fair value due to their short-term, highly liquid nature. The carrying amounts of cash and cash equivalents, money market accounts, accounts receivable, and accounts payable approximate fair value because of the short-term nature of such instruments. We have classified our investment in U.S. Treasury securities, corporate bonds, municipal bonds and government agency bonds, which collectively are investments in available-for-sale debt securities, within Level 2, as their valuation requires quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and/or model-based valuation techniques for which all significant inputs are observable in the market or can be corroborated by observable market data. The U.S. Treasury securities, corporate bonds, municipal bonds and government agency bonds are valued based on model-driven valuations. A third-party service provider assists the Company with compiling market prices from a variety of industry standard data sources, security master files from large financial institutions and other third-party sources that are used to value our corporate bond, U.S. Treasury securities, municipal bond and government agency bond investments. The Company did not have any transfers between Level 1, Level 2, and Level 3 fair value investments during the periods presented. The fair value measurements of our equity investments without readily determinable fair values and our equity method investments are classified within Level 3 as significant unobservable inputs are used as part of the determination of fair value. Significant unobservable inputs may include variables such as near-term prospects of the investees, recent financing activities of the investees, and the investees' capital structure, as well as other economic variables, which reflect assumptions market participants would use in pricing these assets. The Company has elected to use the measurement alternative to fair value that will allow these investments to be recorded at cost, less impairment, and adjusted for subsequent observable price changes. During the three months ended March 31, 2020, the Company recorded impairment charges of $ 8,828 and $ 2,715 on our equity method investments and nonmarketable equity investments, respectively, as a result of our impairment evaluations. Refer to Note 10, Investment Securities and Short-Term Investments , for further discussion. The Company's long-lived property and equipment and content production assets are required to be measured at fair value on a non-recurring basis if it is determined that indicators of impairment exist. These assets are recorded at fair value only when an impairment is recognized. The Company did no t record any impairment charges on long lived property and equipment during the three months ended March 31, 2020 and 2019. The Company classifies these assets as Level 3 within the fair value hierarchy due to significant unobservable inputs. During the three months ended March 31, 2020 and 2019, the Company recorded impairment charges of $ 160 and $ 198 on content production assets based upon fair value measurements of $ 0 in both periods. Refer to Note 9, Content Production Assets, Net , for further discussion. The Company classifies these assets as Level 3 within the fair value hierarchy due to significant unobservable inputs. The Company utilizes a discounted cash flows model to determine the fair value of content production assets where indicators of impairment exist. The fair value of the Company’s long-term debt, consisting of a mortgage loan assumed in connection with a building purchase and a promissory note secured by the Company's Corporate Jet, is estimated based upon quoted price estimates for similar debt arrangements. At March 31, 2020, the face amount of the mortgage loan and promissory note approximates their fair value. The convertible debt is not marked to fair value at the end of each reporting period, but instead is reported at amortized cost. As of March 31, 2020 and December 31, 2019, the calculation of the fair value of the debt component of the Company’s convertible debt required the use of Level 3 inputs, and was determined by calculating the fair value of similar debt without the associated conversion feature based on market conditions at that time: March 31, 2020 December 31, 2019 Fair Value Carrying Value (1) Fair Value Carrying Value (1) Convertible senior notes $ 187,955 $ 193,534 $ 207,338 $ 192,262 (1) The carrying value of the convertible debt instrument presented in the table above represents the face value of the convertible note less unamortized debt discount. |
Accounts Payable And Accrued Ex
Accounts Payable And Accrued Expenses | 3 Months Ended |
Mar. 31, 2020 | |
Accounts Payable And Accrued Expenses [Abstract] | |
Accounts Payable And Accrued Expenses | 12. Accounts Payable and Accrued Expenses Accounts payable and accrued expenses consisted of the following: As of March 31, December 31, 2020 2019 Trade related $ 9,918 $ 9,282 Staff related 10,186 8,651 Management incentive compensation 6,167 6,481 Talent related 6,134 8,184 Accrued WWE Network related expenses 6,795 5,510 Accrued event and television production 18,417 16,627 Accrued legal and professional 5,741 5,716 Accrued purchases of property and equipment 4,531 4,997 Accrued film liability 6,647 5,986 Accrued other 9,758 9,158 Total $ 84,294 $ 80,592 Accrued other includes accruals for our international and licensing business activities, as well as other miscellaneous accruals, none of which categories individually exceeds 5 % of current liabilities. |
Convertible Debt
Convertible Debt | 3 Months Ended |
Mar. 31, 2020 | |
Convertible Debt [Abstract] | |
Convertible Debt | 13. Convertible Debt In December 2016 and January 2017, we issued $ 215,000 aggregate principal amount of 3.375 % convertible senior notes due 2023 (the “Convertible Notes”). The Convertible Notes are due December 15, 2023 , unless earlier repurchased by us or converted. Interest is payable semi-annually in arrears on June 15 and December 15 of each year, beginning on June 15, 2017. The Convertible Notes are governed by an Indenture between us, as issuer, and U.S. Bank, National Association, as trustee. The Convertible Notes will be our general unsecured obligations and will rank senior in right of payment to any of our indebtedness that is expressly subordinated in right of payment to the Convertible Notes; equal in right of payment to any of our unsecured indebtedness that is not so subordinated; effectively junior in right of payment to any of our secured indebtedness to the extent of the value of the assets securing such indebtedness; and structurally junior to all indebtedness and other liabilities (including trade payables) of our subsidiaries. In the event of our bankruptcy, liquidation, reorganization or other winding up, our assets that secure secured debt will be available to pay obligations on the Convertible Notes only after all indebtedness under such secured debt has been repaid in full from such assets. Upon conversion of the Convertible Notes, we will pay or deliver, as the case may be, cash, shares of our Class A common stock or a combination of cash and shares of Class A common stock, at our election, at a conversion rate of approximately 40.1405 shares of common stock per $1 principal amount of the Convertible Notes, which corresponds to an initial conversion price of approximately $ 24.91 per share of our Class A common stock. At any time, prior to the close on the business day immediately preceding June 15, 2023, the Convertible Notes will be convertible under the following circumstances: a) During any calendar quarter beginning after the calendar quarter ending on December 31, 2016 (and only during such calendar quarter), if the last reported sale price of our Class A common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on the last trading day of the immediately preceding quarter is greater than or equal to 130 % of the conversion price on each applicable trading day; b) During the 5 business day period after any 10 consecutive trading day period (the “measurement period”) in which the trading price per $1 principal amount of Convertible Notes for each trading day of the measurement period was less than 98 % of the product of the last reported sale price of our Class A common stock and the conversion rate on each such trading day; c) Upon the occurrence of specified corporate events; or d) On or after June 15, 2023 until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert all or any portion of their Convertible Notes, in multiples of $1 principal amount, at the option of the holder regardless of the foregoing circumstances. Pursuance to item (a) noted above, the Convertible Notes have been convertible since April 1, 2018, and holders of the Convertible Notes have the right to convert their notes at any time through at least June 30, 2020. As of March 31, 2020, since the Convertible Notes are convertible at the option of the holders, the Convertible Notes are reflected in current liabilities on our Consolidated Balance Sheet. As of March 31, 2020, no actual conversions have occurred to date. See Note 5, Earnings (Loss) Per Share , for a description of the dilutive nature of the Convertible Notes. As a result of our cash conversion option, we separately accounted for the value of the embedded conversion option as a debt discount at its issuance date estimated fair value. The debt discount is amortized as additional non-cash interest expense over the term of the Convertible Notes using the effective interest method. The equity component is not remeasured as long as it continues to meet the conditions for equity classification. In accounting for the transaction costs related to the Note issuances, we allocated the total amount of offering costs incurred to the debt and equity components based on their relative values. Offering costs attributable to the debt component are amortized as non-cash interest expense over the term of the Convertible Notes. Offering costs attributable to the equity component were netted with the equity component in stockholders' equity. The Convertible Notes consisted of the following components: As of March 31, December 31, 2020 2019 Debt component : Principal $ 215,000 $ 215,000 Less: Unamortized debt discount ( 21,466 ) ( 22,738 ) Less: Unamortized debt issuance costs ( 3,376 ) ( 3,595 ) Net carrying amount $ 190,158 $ 188,667 Equity component (1) $ 35,547 $ 35,547 (1) Recorded in the Consolidated Balance Sheets within additional paid-in capital. The following table sets forth total interest expense recognized related to the Convertible Notes: Three Months Ended March 31, 2020 2019 3.375 % contractual coupon $ 1,814 $ 1,814 Amortization of debt discount 1,272 1,193 Amortization of debt issuance costs 219 165 Additional interest on Convertible Notes (1) — 1,370 Interest expense $ 3,305 $ 4,542 (1) During the three months ended March 31, 2019, additional nonrecurring interest expense was incurred pursuant to the notes’ indenture related to the removal of the restrictive legend and assignment of the unrestricted CUSIP on the Convertible Notes. Convertible Note Hedge In connection with the pricing of the Convertible Notes in December 2016 and January 2017, we entered into convertible note hedge transactions with respect to our Class A common stock (the “Note Hedge”). The Note Hedge transactions cover approximately 8.63 million shares of our Class A common stock and are exercisable upon conversion of the Convertible Notes. The Note Hedge will expire on December 15, 2023, unless earlier terminated. The Note Hedge transactions have been accounted for as part of additional paid-in capital. Warrant Transactions In connection with entering into the Note Hedge transactions described above, we also concurrently entered into separate warrant transactions (the “Warrants”), to sell warrants to acquire approximately 8.63 million shares of our Class A common stock in connection with the Note Hedge transactions at an initial strike price of approximately $ 31.89 per share, which represents a premium of approximately 60.0 % over the last reported sale price of our Class A common stock of $ 19.93 on December 12, 2016 (initial issuance date of the Convertible Notes). The Warrants transactions have been accounted for as part of additional paid-in capital. |
Long-Term Debt And Credit Facil
Long-Term Debt And Credit Facility | 3 Months Ended |
Mar. 31, 2020 | |
Long-Term Debt And Credit Facility [Abstract] | |
Long-Term Debt And Credit Facility | 14. Long-Term Debt and Credit Facility Long-Term Debt Included within Long-Term Debt are the following: As of March 31, December 31, 2020 2019 Current portion of long-term debt : Aircraft financing $ 2,017 $ 3,218 Mortgage 399 395 Total current portion of long-term debt $ 2,416 $ 3,613 Long-term debt : Mortgage $ 22,000 $ 22,098 Total long-term debt $ 22,000 $ 22,098 Total $ 24,416 $ 25,711 Mortgage In September 2016, the Company acquired real property and assumed future obligations under a loan agreement, dated June 8, 2015, in the principal amount of $ 23,000 , which loan is secured by a mortgage on the property. The loan bears interest at the rate of 4.50 % per annum and requires monthly interest only payments of $ 86 until June 2018 and interest and principal payments of $ 117 per month thereafter, with a balloon payment upon maturity on July 5, 2025 . There is a significant yield maintenance premium for prepayments. Pursuant to the loan agreement, since the assets of WWE Real Estate, a subsidiary of the Company, represent collateral for the underlying mortgage, these assets will not be available to satisfy debts and obligations due to any other creditors of the Company. Aircraft Financing In August 2013, the Company entered into a $ 31,568 promissory note (the “Aircraft Note”) with Citizens Asset Finance, Inc., for the purchase of a 2007 Bombardier Global 5000 aircraft and refurbishments. In August 2017, the Aircraft Note was assigned to Fifth Third Equipment Finance Company. The Aircraft Note bears interest at a rate of 2.18 % per annum, is payable in monthly installments of $ 406 , inclusive of interest, and has a final maturity of August 7, 2020 . The Aircraft Note is secured by a first priority perfected security interest in the purchased aircraft. Credit Facility Revolving Credit Facility On May 24, 2019, the Company entered into an amended and restated $ 200,000 senior unsecured revolving credit facility with a syndicated group of banks, with JPMorgan Chase Bank, N.A. acting as Administrative Agent (the “Revolving Credit Facility”). The Revolving Credit Facility has a maturity date of May 24, 2024 . Applicable interest rates for the borrowings under the Revolving Credit Facility are based on the Company's current consolidated leverage ratio. As of March 31, 2020, the LIBOR-based rate plus margin was 2.70 %. The Company is required to pay a commitment fee calculated at a rate per annum of 0.175 % on the average daily unused portion of the Revolving Credit Facility. Under the terms of the Revolving Credit Facility, the Company is subject to certain financial covenants and restrictions, including restrictions on our ability to pay dividends and limitations with respect to our indebtedness, liens, mergers and acquisitions, dispositions of assets, investments, capital expenditures and transactions with affiliates. As of March 31, 2020, the Company was in compliance with the Revolving Credit Facility and had available debt capacity under the terms of the Revolving Credit Facility of $ 200,000 . As of March 31, 2020 and December 31, 2019, there were no amounts outstanding under the Revolving Credit Facility. Refer to Note 21, Subsequent Events , for information on borrowings made under the Revolving Credit Facility subsequent to the end of the quarter but before the interim unaudited financial statements were issued. |
Concentration Of Credit Risk
Concentration Of Credit Risk | 3 Months Ended |
Mar. 31, 2020 | |
Concentration Of Credit Risk [Abstract] | |
Concentration Of Credit Risk | 15. Concentration of Credit Risk We continually monitor our position with, and the credit quality of, the financial institutions that are counterparties to our financial instruments. Our accounts receivable relates principally to a limited number of distributors, including our WWE Network, television, pay-per-view distributors, and licensees. We closely monitor the status of receivables with these customers and maintain allowances for anticipated losses as deemed appropriate. We believe credit risk with respect to accounts receivable is limited due to the generally high credit quality of the Company’s major customers. At March 31, 2020, our two largest receivable balances from customers were 45 % and 15 % of our gross accounts receivable. At December 31, 2019, our largest receivable balance from customers was 49 % of our gross accounts receivable. No other customers individually exceeded 10% of our gross accounts receivable balance. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2020 | |
Income Taxes [Abstract] | |
Income Taxes | 16. Income Taxes As of March 31, 2020 and December 31, 2019, we had $ 8,057 and $ 7,217 , respectively, of deferred tax assets, net, included in our Consolidated Balance Sheets. The Company considers all available evidence, both positive and negative, to determine whether, based on the weight of that evidence, a valuation allowance is required to reduce the net deferred tax assets to the amount that is more likely than not to be realized in future periods. The Company believes that based on past performance, expected future taxable income and prudent and feasible tax planning strategies, it is more likely than not that the net deferred tax assets will be realized. Changes in these factors may cause us to increase our valuation allowance on deferred tax assets, which would impact our income tax expense in the period we determine that these factors have changed. |
Content Production Incentives
Content Production Incentives | 3 Months Ended |
Mar. 31, 2020 | |
Content Production Incentives [Abstract] | |
Content Production Incentives | 17. Content Production Incentives The Company has access to various governmental programs that are designed to promote content production within the United States of America and certain international jurisdictions. Incentives earned with respect to expenditures on qualifying film production activities and capital projects are recorded as an offset to the related asset balances. Incentives earned with respect to television and other production activities are recorded as an offset to production expenses. The Company recognizes these benefits when we have reasonable assurance regarding the realizable amount of the incentives. The Company did no t record any content production incentives during the three months ended March 31, 2020. We recorded $ 279 of content production incentives during the three months ended March 31, 2019. |
Commitments And Contingencies
Commitments And Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
Commitments And Contingencies [Abstract] | |
Commitments And Contingencies | 18. Commitments and Contingencies Our future commitments related to our operating and finance leases are separately disclosed in Note 8, Leases . Legal Proceedings On October 23, 2014, a lawsuit was filed in the U. S. District Court for the District of Oregon, entitled William Albert Haynes III, on behalf of himself and others similarly situated, v. World Wrestling Entertainment, Inc. This complaint was amended on January 30, 2015 and alleged that the Company ignored, downplayed, and/or failed to disclose the risks associated with traumatic brain injuries suffered by WWE’s performers and seeks class action status. On March 31, 2015, the Company filed a motion to dismiss the first amended class action complaint in its entirety or, if not dismissed, to transfer the lawsuit to the U.S. District Court for the District of Connecticut. Without addressing the merits of the Company's motion to dismiss, the Court transferred the case to Connecticut on June 25, 2015. The plaintiffs filed an objection to such transfer, which was denied on July 27, 2015. On January 16, 2015, a second lawsuit was filed in the U.S. District Court for the Eastern District of Pennsylvania, entitled Evan Singleton and Vito LoGrasso, individually and on behalf of all others similarly situated, v. World Wrestling Entertainment, Inc. , alleging many of the same allegations as Haynes . On February 27, 2015, the Company moved to transfer venue to the U.S. District Court for the District of Connecticut due to forum-selection clauses in the contracts between WWE and the plaintiffs and that motion was granted on March 23, 2015. The plaintiffs filed an amended complaint on May 22, 2015 and, following a scheduling conference in which the court ordered the plaintiffs to cure various pleading deficiencies, the plaintiffs filed a second amended complaint on June 15, 2015. On June 29, 2015, WWE moved to dismiss the second amended complaint in its entirety. On April 9, 2015, a third lawsuit was filed in the U. S. District Court for the Central District of California, entitled Russ McCullough, a/k/a “Big Russ McCullough,” Ryan Sakoda, and Matthew R. Wiese a/k/a “Luther Reigns,” individually and on behalf of all others similarly situated, v. World Wrestling Entertainment, Inc. , asserting similar allegations to Haynes . The Company again moved to transfer the lawsuit to Connecticut due to forum-selection clauses in the contracts between WWE and the plaintiffs, which the California court granted on July 10, 2015. On September 21, 2015, the plaintiffs amended this complaint, and, on November 16, 2015, the Company moved to dismiss the amended complaint. Each of these suits sought unspecified actual, compensatory and punitive damages and injunctive relief, including ordering medical monitoring. The Haynes and McCullough cases purport to be class actions. On February 18, 2015, a lawsuit was filed in Tennessee state court and subsequently removed to the U.S. District Court for the Western District of Tennessee, entitled Cassandra Frazier, individually and as next of kin to her deceased husband, Nelson Lee Frazier, Jr., and as personal representative of the Estate of Nelson Lee Frazier, Jr. Deceased, v. World Wrestling Entertainment, Inc. A similar suit was filed in the U. S. District Court for the Northern District of Texas entitled Michelle James, as mother and next friend of Matthew Osborne, minor child, and Teagan Osborne, a minor child v. World Wrestling Entertainment, Inc. These lawsuits contain many of the same allegations as the other lawsuits alleging traumatic brain injuries and further allege that the injuries contributed to these former talents’ deaths. WWE moved to transfer the Frazier and Osborne lawsuits to the U.S. District Court for the District of Connecticut based on forum-selection clauses in the decedents’ contracts with WWE, which motions were granted by the respective courts. On November 23, 2015, amended complaints were filed in Frazier and Osborne , which the Company moved to dismiss on December 16, 2015 and December 21, 2015, respectively. On November 10, 2016, the Court granted the Company’s motions to dismiss the Frazier and Osborne lawsuits in their entirety. On June 29, 2015, the Company filed a declaratory judgment action in the U. S. District Court for the District of Connecticut entitled World Wrestling Entertainment, Inc. v. Robert Windham, Thomas Billington, James Ware, Oreal Perras and various John and Jane Does seeking a declaration against these former performers that their threatened claims related to alleged traumatic brain injuries and/or other tort claims are time-barred. On September 21, 2015, the defendants filed a motion to dismiss this complaint, which the Company opposed. The Court previously ordered a stay of discovery in all cases pending decisions on the motions to dismiss. On January 15, 2016, the Court partially lifted the stay and permitted discovery only on three issues in the case involving Singleton and LoGrasso. Such discovery was completed by June 1, 2016. On March 21, 2016, the Court issued a memorandum of decision granting in part and denying in part the Company’s motions to dismiss the Haynes, Singleton/LoGrasso, and McCullough lawsuits. The Court granted the Company’s motions to dismiss the Haynes and McCullough lawsuits in their entirety and granted the Company’s motion to dismiss all claims in the Singleton/LoGrasso lawsuit except for the claim of fraud by omission. On March 22, 2016, the Court issued an order dismissing the Windham lawsuit based on the Court’s memorandum of decision on the motions to dismiss. On April 4, 2016, the Company filed a motion for reconsideration with respect to the Court’s decision not to dismiss the fraud by omission claim in the Singleton/LoGrasso lawsuit and, on April 5, 2016, the Company filed a motion for reconsideration with respect to the Court dismissal of the Windham lawsuit. On July 21, 2016, the Court denied the Company’s motion in the Singleton/LoGrasso lawsuit and granted in part the Company’s motion in the Windham lawsuit. On April 20, 2016, the plaintiffs filed notices of appeal of the Haynes and McCullough lawsuits. On April 27, 2016, the Company moved to dismiss the appeals for lack of appellate jurisdiction, which motions were granted, and the appeals were dismissed with leave to appeal upon the resolution of all of the consolidated cases. The Company filed a motion for summary judgment on the sole remaining claim in the Singleton/LoGrasso lawsuit, which was granted on March 28, 2018. The Company also filed a motion for judgment on the pleadings against the Windham defendants. Lastly, on July 18, 2016, a lawsuit was filed in the U.S. District Court for the District of Connecticut, entitled Joseph M. Laurinaitis, et al. vs. World Wrestling Entertainment, Inc. and Vincent K. McMahon, individually and as the trustee of certain trusts . This lawsuit contains many of the same allegations as the other lawsuits alleging traumatic brain injuries and further alleges, among other things, that the plaintiffs were misclassified as independent contractors rather than employees denying them, among other things, rights and benefits under the Occupational Safety and Health Act (OSHA), the National Labor Relations Act (NLRA), the Family and Medical Leave Act (FMLA), federal tax law, and various state Worker’s Compensation laws. This lawsuit also alleges that the booking contracts and other agreements between the plaintiffs and the Company are unconscionable and should be declared void, entitling the plaintiffs to certain damages relating to the Company’s use of their intellectual property. The lawsuit alleges claims for violation of RICO, unjust enrichment, and an accounting against Mr. McMahon. The Company and Mr. McMahon moved to dismiss this complaint on October 19, 2016. On November 9, 2016, the Laurinaitis plaintiffs filed an amended complaint. On December 23, 2016, the Company and Mr. McMahon moved to dismiss the amended complaint. On September 29, 2017, the Court issued an order on the motion to dismiss pending in the Laurinaitis case and on the motion for judgment on the pleadings pending in the Windham case. The Court reserved judgment on the pending motions and ordered that within thirty-five (35) days of the date of the order the Laurinaitis plaintiffs and the Windham defendants file amended pleadings that comply with the Federal Rules of Civil Procedure. The Court further ordered that each of the Laurinaitis plaintiffs and the Windham defendants submit to the Court for in camera review affidavits signed and sworn under penalty of perjury setting forth facts within each plaintiff’s or declaratory judgment-defendant’s personal knowledge that form the factual basis of their claim or defense. On November 3, 2017, the Laurinaitis plaintiffs filed a second amended complaint. The Company and Mr. McMahon believe that the second amended complaint failed to comply with the Court’s September 29, 2017 order and otherwise remained legally defective for all of the reasons set forth in their motion to dismiss the amended complaint. Also on November 3, 2017, the Windham defendants filed a second answer. On November 17, 2017, the Company and Mr. McMahon filed a response that, among other things, urged the Court to grant the motion for judgment on the pleadings against the Windham defendants and dismiss the Laurinaitis plaintiffs’ complaint with prejudice and award sanctions against the Laurinaitis plaintiffs’ counsel because the amended pleadings failed to comply with the Court’s September 29, 2017 order and the Federal Rules of Civil Procedure. On September 17, 2018, the Court granted the motion to dismiss filed by the Company and Mr. McMahon in the Laurinaitis case in its entirety, awarded sanctions against the Laurinaitis plaintiffs’ counsel, and granted the Company’s motion for judgment on the pleadings against the Windham defendants. The plaintiffs have attempted to appeal these decisions. On November 16, 2018, the Company moved to dismiss all of the appeals, except for the appeal of the dismissal of the Laurinaitis case, for being filed untimely. On April 4, 2019, the Second Circuit issued an order referring the Company’s motions to dismiss to the panel that will determine the merits of the appeals. The plaintiffs-appellants’ opening brief was filed on July 8, 2019. The Company and Mr. McMahon filed their appellees’ brief on October 7, 2019. The plaintiffs-appellants filed a reply brief on October 28, 2019. On April 8, 2020, the Second Circuit scheduled oral argument for June 5, 2020. The Company believes all claims and threatened claims against the Company in these various lawsuits were prompted by the same plaintiffs’ lawyer and that all are without merit. The Company intends to continue to defend itself against the attempt to appeal these decisions vigorously. On March 6, 2020, the Company along with its Chairman and CEO, Vince McMahon, and former-WWE officers and directors, Michelle Wilson and George Barrios (collectively, the “Individual Defendants”), were sued in the U.S. District Court for the Southern District of New York in a case captioned City of Warren Police and Fire Retirement System, individually and on behalf of all others similarly situated, v. World Wrestling Entertainment, Inc., Vincent K. McMahon, George A. Barrios, and Michelle D. Wilson , No. 1:20-cv-02031-JSR. The complaint alleges that the Company and the Individual Defendants made materially false and misleading statements in violation of the Securities Exchange Act of 1934 regarding WWE’s strategic relationship with the Kingdom of Saudi Arabia. Specifically, the complaint alleges that various public statements made by the Company and the Individual Defendants were false and misleading because they failed to disclose certain adverse facts regarding WWE’s strategic relationship with Saudi Arabia that supposedly was known by them and, as a result, the plaintiff class allegedly purchased WWE stock at artificially inflated prices. On March 12, 2020 a nearly-identical lawsuit was filed in the U.S. District Court for the Southern District of New York captioned Paul Szaniawski, individually and on behalf of all others similarly situated, v. World Wrestling Entertainment, Inc., Vincent K. McMahon, George A. Barrios, and Michelle D. Wilson , No. 1:20-cv-02223-JSR. This lawsuit was filed as related to the City of Warren case and has been assigned to the same judge handling the City of Warren case. On April 2, 2020, the parties held an initial conference with the Court at which the Court set a case management schedule with respect to (i) selection of lead plaintiff/counsel; (ii) filing of a consolidated amended complaint; and (iii) motion to dismiss briefing. Pursuant to the case management schedule, the Company’s motion to dismiss will be due on June 19, 2020. WWE believes that the lawsuits are meritless and intends to move to dismiss them. In addition to the foregoing, from time to time we become a party to other lawsuits and claims. By its nature, the outcome of litigation is not known, but the Company does not currently expect this ordinary course litigation to have a material adverse effect on our financial condition, results of operations or liquidity. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2020 | |
Stockholders' Equity [Abstract] | |
Stockholders' Equity | 19. Stockholders’ Equity On February 7, 2019, the Company’s Board of Directors authorized a stock repurchase program of up to $ 500,000 of our common stock. Repurchases may be made from time to time at management’s discretion subject to certain pre-approved parameters and in accordance with all applicable securities and other laws and regulations. The stock repurchase program does not obligate the Company to repurchase any minimum dollar amount or number of shares and may be modified, suspended or discontinued at any time. The Company did no t repurchase any shares of common stock in the open market during the three months ended March 31, 2020 and 2019. As of March 31, 2020, $ 416,559 of common stock may be repurchased under the stock repurchase program announced on February 7, 2019. |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Mar. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 20. Related Party Transactions As previously disclosed, in April 2018, the Company entered into a support services agreement to provide Alpha Entertainment, LLC (“Alpha”), an entity controlled by Vincent K. McMahon, with certain administrative support services with such services billed to Alpha on a cost-plus margin basis. During the three months ended March 31, 2020 and 2019, the Company billed Alpha $ 818 and $ 1,317 , respectively, for services rendered under the support services agreement. As of March 31, 2020 and December 31, 2019, the Company had $ 594 and $ 236 , respectively, of current receivables for amounts billed to Alpha. On March 12, 2020, as a result of COVID-19, the “XFL,” a professional football league owned by Alpha, announced the cancellation of the remainder of its inaugural season. On April 13, 2020, Alpha filed for Chapter 11 bankruptcy. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | 21. Subsequent Events On March 11, 2020, the World Health Organization characterized the outbreak of the coronavirus disease, known as COVID-19, as a global pandemic and recommended containment and mitigation measures. The full impact of the COVID-19 outbreak continues to evolve subsequent to the quarter ended March 31, 2020 and as of the date these unaudited consolidated financial statements are issued. The full magnitude that the pandemic will have on the Company’s financial condition, liquidity and future results of operations is uncertain and will depend on future developments, including the duration and spread of the outbreak and the length of government-mandated stay-at-home orders, all of which are highly uncertain and cannot be predicted at this time. The spread of this virus has caused business disruption to the Company, including postponements and cancellations of various events and likely will require us to cancel, postpone or relocate certain of our upcoming events. As part of the Company’s contingency planning efforts related to the pandemic, on April 15, 2020, the Company announced that it has implemented various short-term cost reductions and cash flow improvement actions, including reducing executive and board member compensation, decreasing operating expenses, cutting talent expenses, third party staffing and consulting, and deferring spend on the build out of the Company’s new headquarters for at least six months. Given the uncertainty of the situation, the Company also identified headcount reductions and made the decision to furlough a portion of its workforce. In addition, as a precautionary measure to further strengthen liquidity, on April 16, 2020, the Company borrowed $ 200,000 under its Revolving Credit Facility, increasing the Company’s total liquidity when combined with our existing cash and short-term investments. |
Significant Accounting Polici_2
Significant Accounting Policies (Policy) | 3 Months Ended |
Mar. 31, 2020 | |
Significant Accounting Policies [Abstract] | |
Operating Expenses | Operating Expenses Operating expenses consist of our production costs associated with developing our content, costs associated with operating our WWE Network, venue rental and related costs associated with the staging of our live events, compensation costs for our talent, and material and related costs associated with our consumer product merchandise sales. In addition, operating expenses include certain business operating support function costs, including our talent development, data analytics, data engineering, business strategy and real estate and facilities functions, as these activities directly support the operations of our segments. Included within Operating expenses are the following: Three Months Ended March 31, 2020 2019 Amortization and impairment of content production assets $ 8,911 $ 8,952 Depreciation and amortization of WWE Network content delivery and technology assets 1,125 1,582 Amortization of right-of-use assets - finance leases of equipment 2,559 1,996 Depreciation on equipment used directly in revenue generating activities 136 — Total depreciation and amortization included in operating expenses $ 12,731 $ 12,530 Costs to produce our live event programming are expensed when the event is first broadcast, and are not included in the amortization table noted above. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In March 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2019-02, “ Improvements to Accounting for Costs of Films and License Agreements for Program Materials ”, in order to align the accounting for production costs of an episodic television series with the accounting for production costs of films by removing the content distinction for capitalization. The amendments also require that an entity reassess estimates of the use of a film in a film group and account for any changes prospectively. In addition, the amendments require that an entity test films and license agreements for program material for impairment at a film group level when the film or license agreements are predominantly monetized with other films and license agreements. The Company evaluated its portfolio of content assets in order to determine the predominant monetization strategies which now dictates the appropriate impairment model to apply. In general, the Company’s content assets related to original programming content airing on the WWE Network are predominantly monetized as a film group through monthly subscription fees collected from WWE Network subscribers, while the Company’s other content assets comprised largely of feature films and episodic television series which are licensed or sold to distributers are predominantly monetized individually through the underlying rights fees collected under the distribution arrangements. The Company previously provided separate captions within noncurrent assets on the face of the consolidated balance sheet for episodic television production assets and feature film production assets. With the adoption of the amendments, the Company now presents both episodic television and feature film production assets under one combined caption, Content production assets, net, within the noncurrent assets section of the consolidated balance sheet. To conform to the current period presentation, the Content productions assets, net balance of $ 20,045 as of December 31, 2019 is comprised of $ 15,873 of feature film production assets and $ 4,172 of television production assets. ASU 2019-02 is effective for fiscal years beginning after December 15, 2019. The Company adopted the amendments on January 1, 2020 with no material impact to our consolidated financial statements upon adoption. Refer to Note 9, Content Production Assets, Net , for further details. In November 2018, the FASB issued ASU No. 2018-18, “ Collaborative Arrangements (Topic 808) – Clarifying the Interaction between Topic 808 and Topic 606 .” The amendments in this ASU clarifies that certain transactions between collaborative arrangement participants should be accounted for as revenue under Topic 606, Revenue from Contracts with Customers, when the collaborative arrangement participant is a customer in the context of a unit of account and precludes recognizing as revenue consideration received from a collaborative arrangement participant if the participant is not a customer. The new guidance is effective for fiscal years beginning after December 15, 2019. The Company adopted the amendment on January 1, 2020 with no impact on our consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-15, “ Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract .” The new guidance aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The accounting for the service element of a hosting arrangement that is a service contract is not affected by the amendments in this update. The new guidance is effective for fiscal years beginning after December 15, 2019. The Company adopted the amendments on January 1, 2020 and applied the amendments prospectively to all implementation costs incurred after the date of adoption. In August 2018, the FASB issued ASU No. 2018-13, “ Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement ”, which modifies the disclosure requirements on fair value measurements. The new guidance is effective for fiscal years beginning after December 15, 2019. Upon the effective date, certain provisions are to be applied prospectively, while others are to be applied retrospectively to all periods presented. The amendments eliminated certain disclosure requirements such as the elimination of disclosing the valuation process for Level 3 fair value measurements. Other amendments in the update did not largely impact the Company. The Company adopted the amendments on January 1, 2020 with no impact on our consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, “ Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ” (“ASU 2016-13”), which requires an entity to assess impairment of its financial instruments based on its estimate of expected credit losses. Since the issuance of ASU 2016-13, the FASB released several amendments to improve and clarify the implementation guidance. The provisions of ASU 2016-13 and the related amendments are effective for fiscal years beginning after December 15, 2019. Entities are required to apply these changes through a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. The Company evaluated its financial instruments and determined that its trade accounts receivables are subject to the new current expected credit loss model and the Company’s available-for-sale debt securities are subject to the new modified credit impairment guidance. Based upon the application of the new current expected credit loss model on our opening balance of accounts receivable as of January 1, 2020, we determined that no material incremental credit loss reserve is needed and accordingly did not record a cumulative effect adjustment. As of the adoption date on January 1, 2020, the Company applied the new credit impairment guidance for available-for-sale debt securities on a prospective basis. Refer to Note 10, Investment Securities and Short-Term Investments , for further information on our available-for-sale debt securities. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Significant Accounting Policies [Abstract] | |
Schedule Of Operating Expenses | Three Months Ended March 31, 2020 2019 Amortization and impairment of content production assets $ 8,911 $ 8,952 Depreciation and amortization of WWE Network content delivery and technology assets 1,125 1,582 Amortization of right-of-use assets - finance leases of equipment 2,559 1,996 Depreciation on equipment used directly in revenue generating activities 136 — Total depreciation and amortization included in operating expenses $ 12,731 $ 12,530 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Segment Information [Abstract] | |
Summary Of Financial Information For Reportable Segments | Three Months Ended March 31, 2020 2019 Net revenues: Media $ 256,558 $ 135,447 Live Events 17,529 26,239 Consumer Products 16,922 20,762 Total net revenues $ 291,009 $ 182,448 Adjusted OIBDA: Media $ 102,636 $ 28,500 Live Events ( 2,643 ) 794 Consumer Products 3,845 6,020 Corporate ( 26,580 ) ( 22,925 ) Total Adjusted OIBDA $ 77,258 $ 12,389 |
Reconciliation Of Total Operating Income To Total Adjusted OIBDA | Three Months Ended March 31, 2020 2019 Total operating income (loss) $ 53,293 $ ( 6,859 ) Depreciation and amortization (1) 10,900 6,420 Stock-based compensation 13,065 12,828 Other adjustments — — Total Adjusted OIBDA $ 77,258 $ 12,389 (1) Depreciation and amortization for the three months ended March 31, 2020 includes $ 2,266 of amortization related to the right-of-use asset for the Company’s new global headquarters lease, which commenced on July 1, 2019 and is accounted for as a finance lease. |
Revenues (Tables)
Revenues (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Revenues [Abstract] | |
Schedule Of Revenues Disaggregated By Source | Three Months Ended March 31, 2020 2019 Net revenues: Media Segment : Network (including pay-per-view) $ 43,535 $ 47,013 Core content rights fees (1) 133,197 68,096 Advertising and sponsorships 17,348 10,873 Other (2) 62,478 9,465 Total Media Segment net revenues 256,558 135,447 Live Events Segment : North American ticket sales 15,206 24,160 International ticket sales 210 193 Advertising and sponsorships 66 405 Other (3) 2,047 1,481 Total Live Events Segment net revenues 17,529 26,239 Consumer Products Segment : Consumer product licensing 7,719 9,428 eCommerce 6,008 6,577 Venue merchandise 3,195 4,757 Total Consumer Products Segment net revenues 16,922 20,762 Total net revenues $ 291,009 $ 182,448 (1) Core content rights fees consist primarily of licensing revenues earned from the distribution of our flagship programs, RAW and SmackDown , as well as our NXT programming, through global broadcast, pay television and digital platforms. (2) Other revenues within our Media segment reflect revenues earned from the distribution of other WWE content, including, but not limited to, certain live in-ring programming in international markets, scripted, reality and other programming, as well as theatrical and direct-to-home video releases. (3) Other revenues within our Live Events segment primarily consists of the sale of travel packages associated with the Company’s global live events and commissions earned through secondary ticketing, as well as revenues from events for which the Company receives a fixed fee. |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings (Loss) Per Share [Abstract] | |
Schedule Of Basic And Diluted Earnings Per Share | Three Months Ended March 31, 2020 2019 Net income (loss) $ 26,173 $ ( 8,396 ) Weighted average basic common shares outstanding 77,336 78,040 Dilutive effect of restricted and performance stock units (1) 638 — Dilutive effect of convertible debt instruments (1) 7,116 — Dilutive effect of employee share purchase plan (1) 10 — Weighted average dilutive common shares outstanding 85,100 78,040 Earnings (loss) per share: Basic $ 0.34 $ ( 0.11 ) Diluted $ 0.31 $ ( 0.11 ) Anti-dilutive shares (excluded from per-share calculations): Shares issued under Convertible Notes and Warrants — 11,429 Net shares received on purchased call of convertible debt hedge ( 4,181 ) ( 6,072 ) Outstanding restricted and performance stock units — 1,798 (1) Due to a net loss during the three months ended March 31, 2019, zero incremental shares are included because the effect would be antidilutive. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary Of RSU Activity | Units Weighted- Average Grant-Date Fair Value Unvested at January 1, 2020 272,407 $ 45.41 Granted 303,385 $ 50.21 Vested ( 154,585 ) $ 50.25 Forfeited ( 5,973 ) $ 47.48 Dividend equivalents 1,444 $ 47.08 Unvested at March 31, 2020 416,678 $ 47.09 |
Summary Of PSU Activity | Units Weighted- Average Grant-Date Fair Value Unvested at January 1, 2020 721,398 $ 67.97 Granted 249,564 $ 33.93 Achievement adjustment ( 40,509 ) $ 44.50 Forfeited ( 96,545 ) $ 62.82 Dividend equivalents 2,039 $ 65.24 Unvested at March 31, 2020 835,947 $ 55.89 |
Performance Stock Units, Market Condition [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary Of PSU Activity | Units Weighted- Average Grant-Date Fair Value Unvested at January 1, 2020 340,971 $ 47.42 Granted — $ — Achievement adjustment 7,672 $ 47.30 Vested — $ — Forfeited ( 272,777 ) $ 47.96 Unvested at March 31, 2020 75,866 $ 47.30 |
Property And Equipment (Tables)
Property And Equipment (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Property And Equipment [Abstract] | |
Schedule Of Property And Equipment | As of March 31, December 31, 2020 2019 Land, buildings and improvements $ 164,304 $ 163,202 Equipment 149,094 139,137 Corporate aircraft 32,249 32,249 Vehicles 1,030 1,030 Projects in progress 13,511 16,931 360,188 352,549 Less: accumulated depreciation and amortization ( 187,297 ) ( 177,797 ) Total $ 172,891 $ 174,752 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Quantitative Information About Leases | Three Months Ended March 31, March 31, 2020 2019 Lease costs Finance lease costs: Amortization of right-of-use assets $ 4,825 $ 1,996 Interest on lease liabilities 4,428 1,377 Operating lease costs 1,588 2,467 Other short-term and variable lease costs 454 536 Sublease income (1) ( 16 ) ( 16 ) Total lease costs $ 11,279 $ 6,360 Other information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from finance leases $ 241 $ 185 Operating cash flows from operating leases $ 1,379 $ 2,208 Finance cash flows from finance leases $ 2,611 $ 2,043 Right-of-use assets obtained in exchange for new finance lease liabilities $ 33,120 $ — Right-of-use assets obtained in exchange for new operating lease liabilities $ 1,348 $ — As of March 31, 2020 2019 Weighted-average remaining lease term - finance leases 28.7 years 4.7 years Weighted-average remaining lease term - operating leases 4.9 years 5.3 years Weighted-average discount rate - finance leases 4.8 % 4.5 % Weighted-average discount rate - operating leases 4.3 % 4.6 % (1) Sublease income excludes rental income from owned properties. |
Maturity Of Lease Liabilities | Operating Finance Leases Leases 2020 $ 3,205 $ 8,634 2021 4,103 26,677 2022 3,752 26,387 2023 2,203 26,481 2024 1,736 26,240 Thereafter 2,649 642,771 Total lease payment 17,648 757,190 Less: imputed interest ( 1,848 ) ( 379,150 ) Total future minimum lease payments $ 15,800 $ 378,040 |
Content Production Assets, Net
Content Production Assets, Net (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Content Production Assets, Net [Abstract] | |
Schedule Of Content Production Assets | Predominantly Monetized Individually Predominantly Monetized as a Film Group As of As of March 31, December 31, March 31, December 31, 2020 2019 2020 2019 In release $ 7,645 $ 8,735 $ 525 $ 580 Completed but not released 2,176 8 307 163 In production 6,166 9,978 283 378 In development 393 203 — — Total $ 16,380 $ 18,924 $ 1,115 $ 1,121 |
Schedule Of Amortization And Impairment Of Content Production Assets | Three Months Ended March 31, 2020 2019 Content production amortization expense - assets monetized individually $ 7,464 $ 7,507 Content production amortization expense - assets monetized as a film group 1,287 1,231 Content production impairment charges (1) 160 198 Content production development write-offs (2) — 16 Total amortization and impairment of content production assets $ 8,911 $ 8,952 (1) Unamortized content production assets are evaluated for impairment whenever events or changes in circumstances indicate that the fair value of a film predominantly monetized on its own or a film group may be less than its unamortized costs. If conditions indicate a potential impairment, and the estimated future cash flows are not sufficient to recover the unamortized asset, the asset is written down to fair value. In addition, if we determine that content will not likely air, we will expense the remaining unamortized asset. (2) Capitalized script development costs are evaluated at each reporting period for impairment and to determine if a project is deemed to be abandoned. |
Investment Securities And Sho_2
Investment Securities And Short-Term Investments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Investment Securities And Short-Term Investments [Abstract] | |
Schedule Of Investment Securities | As of March 31, December 31, 2020 2019 Equity method investments $ 5,500 $ 14,342 Nonmarketable equity investments without readily determinable fair values 10,644 13,359 Marketable equity investments with readily determinable fair values 230 405 Total investment securities $ 16,374 $ 28,106 |
Schedule Of Tapout Investment | Three Months Ended March 31, 2020 2019 Net equity method earnings $ 183 $ 232 Net dividends received ( 197 ) ( 161 ) Equity in earnings of affiliate, net of dividends received $ ( 14 ) $ 71 |
Schedule Of Short-Term Investments Measured At Fair Value | As of March 31, 2020 As of December 31, 2019 Gross Unrealized Gross Unrealized Amortized Fair Amortized Fair Cost Gain (Loss) Value Cost Gain (Loss) Value U.S. Treasury securities $ 25,944 $ 150 $ — $ 26,094 $ 32,124 $ 27 $ ( 13 ) $ 32,138 Corporate bonds 101,411 9 ( 2,328 ) 99,092 120,012 89 ( 74 ) 120,027 Municipal bonds — — — — 2,165 — — 2,165 Government agency bonds 7,713 100 — 7,813 5,693 11 — 5,704 Total $ 135,068 $ 259 $ ( 2,328 ) $ 132,999 $ 159,994 $ 127 $ ( 87 ) $ 160,034 |
Schedule Of Contractual Maturities Of Short-Term Investment Bonds | Maturities U.S. Treasury securities 1 month - 1 year Corporate bonds 1 month - 3 years Municipal bonds N/A Government agency bonds 9 months - 1 year |
Summary Of Short-Term Investment Activity | Three Months Ended March 31, 2020 2019 Proceeds from sales and maturities of short-term investments $ 33,535 $ 20,478 Purchases of short-term investments $ 8,685 $ 13,398 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Measurement [Abstract] | |
Schedule Of Fair Value Of Debt Instruments | March 31, 2020 December 31, 2019 Fair Value Carrying Value (1) Fair Value Carrying Value (1) Convertible senior notes $ 187,955 $ 193,534 $ 207,338 $ 192,262 (1) The carrying value of the convertible debt instrument presented in the table above represents the face value of the convertible note less unamortized debt discount. |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Expenses (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Accounts Payable And Accrued Expenses [Abstract] | |
Schedule Of Accounts Payable And Accrued Expenses | As of March 31, December 31, 2020 2019 Trade related $ 9,918 $ 9,282 Staff related 10,186 8,651 Management incentive compensation 6,167 6,481 Talent related 6,134 8,184 Accrued WWE Network related expenses 6,795 5,510 Accrued event and television production 18,417 16,627 Accrued legal and professional 5,741 5,716 Accrued purchases of property and equipment 4,531 4,997 Accrued film liability 6,647 5,986 Accrued other 9,758 9,158 Total $ 84,294 $ 80,592 |
Convertible Debt (Tables)
Convertible Debt (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Convertible Debt [Abstract] | |
Schedule Of Convertible Notes | As of March 31, December 31, 2020 2019 Debt component : Principal $ 215,000 $ 215,000 Less: Unamortized debt discount ( 21,466 ) ( 22,738 ) Less: Unamortized debt issuance costs ( 3,376 ) ( 3,595 ) Net carrying amount $ 190,158 $ 188,667 Equity component (1) $ 35,547 $ 35,547 (1) Recorded in the Consolidated Balance Sheets within additional paid-in capital. |
Schedule Of Interest Expense Recognized | Three Months Ended March 31, 2020 2019 3.375 % contractual coupon $ 1,814 $ 1,814 Amortization of debt discount 1,272 1,193 Amortization of debt issuance costs 219 165 Additional interest on Convertible Notes (1) — 1,370 Interest expense $ 3,305 $ 4,542 (1) During the three months ended March 31, 2019, additional nonrecurring interest expense was incurred pursuant to the notes’ indenture related to the removal of the restrictive legend and assignment of the unrestricted CUSIP on the Convertible Notes. |
Long-Term Debt And Credit Fac_2
Long-Term Debt And Credit Facility (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Long-Term Debt And Credit Facility [Abstract] | |
Schedule Of Debt | As of March 31, December 31, 2020 2019 Current portion of long-term debt : Aircraft financing $ 2,017 $ 3,218 Mortgage 399 395 Total current portion of long-term debt $ 2,416 $ 3,613 Long-term debt : Mortgage $ 22,000 $ 22,098 Total long-term debt $ 22,000 $ 22,098 Total $ 24,416 $ 25,711 |
Significant Accounting Polici_4
Significant Accounting Policies (Narrative) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Significant Accounting Policies [Abstract] | ||
Content production assets, net | $ 17,495 | $ 20,045 |
Feature film production assets | 15,873 | |
Television production assets | $ 4,172 |
Significant Accounting Polici_5
Significant Accounting Policies (Schedule Of Operating Expenses) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Operating Expenses [Line Items] | ||
Amortization and impairment of content production assets | $ 8,911 | $ 8,952 |
Amortization of WWE Network content delivery and technology assets | 1,125 | 1,582 |
Amortization of right-of-use assets - finance leases of equipment | 4,825 | 1,996 |
Depreciation on equipment used directly in revenue generating activities | 136 | |
Total depreciation and amortization included in operating expenses | 12,731 | 12,530 |
Equipment [Member] | ||
Operating Expenses [Line Items] | ||
Amortization of right-of-use assets - finance leases of equipment | $ 2,559 | $ 1,996 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2020segment | |
Segment Information [Abstract] | |
Number of reportable segments | 3 |
Segment Information (Summary of
Segment Information (Summary of Financial Information For Reportable Segments) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Segment Reporting Information [Line Items] | ||
Total net revenues | $ 291,009 | $ 182,448 |
Total Adjusted OIBDA | 77,258 | 12,389 |
Media [Member] | ||
Segment Reporting Information [Line Items] | ||
Total net revenues | 256,558 | 135,447 |
Total Adjusted OIBDA | 102,636 | 28,500 |
Live Events [Member] | ||
Segment Reporting Information [Line Items] | ||
Total net revenues | 17,529 | 26,239 |
Total Adjusted OIBDA | (2,643) | 794 |
Consumer Products [Member] | ||
Segment Reporting Information [Line Items] | ||
Total net revenues | 16,922 | 20,762 |
Total Adjusted OIBDA | 3,845 | 6,020 |
Corporate [Member] | ||
Segment Reporting Information [Line Items] | ||
Total Adjusted OIBDA | $ (26,580) | $ (22,925) |
Segment Information (Reconcilia
Segment Information (Reconciliation Of Total Operating (Loss) Income To Total Adjusted OIBDA) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Segment Reporting Information [Line Items] | |||
Operating income (loss) | $ 53,293 | $ (6,859) | |
Depreciation and amortization | [1] | 10,900 | 6,420 |
Stock-based compensation | 13,065 | 12,828 | |
Other adjustments | |||
Total Adjusted OIBDA | 77,258 | $ 12,389 | |
Global Headquarters [Member] | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization | $ 2,266 | ||
[1] | Depreciation and amortization for the three months ended March 31, 2020 includes $ 2,266 of amortization related to the right-of-use asset for the Company’s new global headquarters lease, which commenced on July 1, 2019 and is accounted for as a finance lease. |
Revenues (Narrative) (Details)
Revenues (Narrative) (Details) | 3 Months Ended | ||
Mar. 31, 2020USD ($)item | Mar. 31, 2019USD ($) | Dec. 31, 2019USD ($) | |
Disaggregation of Revenue [Line Items] | |||
Number of performance obligations | item | 1 | ||
Net revenues | $ 291,009,000 | $ 182,448,000 | |
Operating expenses | 175,389,000 | 135,450,000 | |
Operating income | 53,293,000 | (6,859,000) | |
Remaining performance obligations | 3,565,491,000 | ||
Contract liabilities | 62,462,000 | $ 57,025,000 | |
Increase in deferred revenue | 5,437,000 | ||
Capitalized contract cost | 800,000 | $ 825,000 | |
Capitalized cost amortization | 25,000 | 345,000 | |
Capitalized cost, impairment | $ 0 | $ 0 | |
Minimum [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Payment term | 30 days | ||
Maximum [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Payment term | 60 days |
Revenues (Schedule Of Revenues
Revenues (Schedule Of Revenues Disaggregated By Source) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Disaggregation of Revenue [Line Items] | |||
Net revenues | $ 291,009 | $ 182,448 | |
Media [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 256,558 | 135,447 | |
Media [Member] | Network (Including Pay-Per-View) [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 43,535 | 47,013 | |
Media [Member] | Core Content Rights Fees [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | [1] | 133,197 | 68,096 |
Media [Member] | Advertising And Sponsorships [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 17,348 | 10,873 | |
Media [Member] | Other Media [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | [2] | 62,478 | 9,465 |
Live Events [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 17,529 | 26,239 | |
Live Events [Member] | Ticket Sales [Member] | North America [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 15,206 | 24,160 | |
Live Events [Member] | Ticket Sales [Member] | International [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 210 | 193 | |
Live Events [Member] | Advertising And Sponsorships [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 66 | 405 | |
Live Events [Member] | Other Live Events [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | [3] | 2,047 | 1,481 |
Consumer Products [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 16,922 | 20,762 | |
Consumer Products [Member] | Consumer Product Licensing [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 7,719 | 9,428 | |
Consumer Products [Member] | eCommerce [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | 6,008 | 6,577 | |
Consumer Products [Member] | Venue Merchandise [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net revenues | $ 3,195 | $ 4,757 | |
[1] | Core content rights fees consist primarily of licensing revenues earned from the distribution of our flagship programs, RAW and SmackDown , as well as our NXT programming, through global broadcast, pay television and digital platforms. | ||
[2] | Other revenues within our Media segment reflect revenues earned from the distribution of other WWE content, including, but not limited to, certain live in-ring programming in international markets, scripted, reality and other programming, as well as theatrical and direct-to-home video releases. | ||
[3] | Other revenues within our Live Events segment primarily consists of the sale of travel packages associated with the Company’s global live events and commissions earned through secondary ticketing, as well as revenues from events for which the Company receives a fixed fee. |
Earnings (Loss) Per Share (Narr
Earnings (Loss) Per Share (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2020$ / shares | |
Debt Instrument [Line Items] | |
Impact on diluted EPS | $ 0.03 |
3.375% Convertible Notes [Member] | |
Debt Instrument [Line Items] | |
Conversion price | 24.91 |
Warrant strike price | $ 31.89 |
Earnings (Loss) Per Share (Sche
Earnings (Loss) Per Share (Schedule Of Basic And Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Net income (loss) | $ 26,173 | $ (8,396) | |
Weighted average basic common shares outstanding | 77,336,000 | 78,040,000 | |
Dilutive effect of restricted and performance stock units | 638,000 | [1] | 0 |
Dilutive effect of convertible debt instruments | 7,116,000 | [1] | 0 |
Dilutive effect of employee share purchase plan | 10,000 | [1] | 0 |
Weighted average dilutive common shares outstanding | 85,100,000 | 78,040,000 | |
Basic | $ 0.34 | $ (0.11) | |
Diluted | $ 0.31 | $ (0.11) | |
Convertible Notes And Warrants [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive shares (excluded from per-share calculations) | 11,429,000 | ||
Net Shares Received On Purchased Call Of Convertible Debt Hedge [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive shares (excluded from per-share calculations) | 4,181,000 | 6,072,000 | |
Outstanding Restricted And Performance Stock Units [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive shares (excluded from per-share calculations) | 1,798,000 | ||
[1] | Due to a net loss during the three months ended March 31, 2019, zero incremental shares are included because the effect would be antidilutive. |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020USD ($)itemshares | Mar. 31, 2019USD ($) | Dec. 31, 2019shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ | $ 13,065 | $ 12,828 | |
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares authorized | 7,758,000 | ||
Requisite service period | 3 years 6 months | ||
Awards granted | 303,385 | ||
Performance Stock Units (PSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Requisite service period | 3 years 6 months | ||
Awards granted | 249,564 | 155,872 | |
Increase (decrease) in units | (40,509) | ||
Performance Stock Units, Market Condition [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance issuance as percent or original grant, in the event of negative shareholder return | 100.00% | ||
Number of tranches | item | 5 | ||
Awards granted | |||
Increase (decrease) in units | 7,672 | ||
Performance Stock Units, Market Condition [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance issuance as percent or original grant | 50.00% | ||
Performance Stock Units, Market Condition [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance issuance as percent or original grant | 175.00% |
Stock-Based Compensation (Summa
Stock-Based Compensation (Summary Of RSU Activity) (Details) - Restricted Stock Units (RSUs) [Member] | 3 Months Ended |
Mar. 31, 2020$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Units, Unvested at January 1, 2020 | shares | 272,407 |
Units, Granted | shares | 303,385 |
Units, Vested | shares | (154,585) |
Units, Forfeited | shares | (5,973) |
Units, Dividend equivalents | shares | 1,444 |
Units, Unvested at March 31, 2020 | shares | 416,678 |
Weighted-Average Grant-Date Fair Value, Unvested at January 1, 2020 | $ / shares | $ 45.41 |
Weighted-Average Grant-Date Fair Value, Granted | $ / shares | 50.21 |
Weighted-Average Grant-Date Fair Value, Vested | $ / shares | 50.25 |
Weighted-Average Grant-Date Fair Value, Forfeited | $ / shares | 47.48 |
Weighted-Average Grant-Date Fair Value, Dividend equivalents | $ / shares | 47.08 |
Weighted-Average Grant-Date Fair Value, Unvested at March 31, 2020 | $ / shares | $ 47.09 |
Stock-Based Compensation (Sum_2
Stock-Based Compensation (Summary Of PSU Activity) (Details) - Performance Stock Units (PSUs) [Member] - $ / shares | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Units, Unvested at January 1, 2020 | 721,398 | |
Units, Granted | 249,564 | 155,872 |
Units, Achievement adjustment | (40,509) | |
Units, Forfeited | (96,545) | |
Units, Dividend equivalents | 2,039 | |
Units, Unvested at March 31, 2020 | 835,947 | 721,398 |
Weighted-Average Grant-Date Fair Value, Unvested at January 1, 2020 | $ 67.97 | |
Weighted-Average Grant-Date Fair Value, Granted | 33.93 | |
Weighted-Average Grant-Date Fair Value, Achievement adjustment | 44.50 | |
Weighted-Average Grant-Date Fair Value, Forfeited | 62.82 | |
Weighted-Average Grant-Date Fair Value, Dividend equivalents | 65.24 | |
Weighted-Average Grant-Date Fair Value, Unvested at March 31, 2020 | $ 55.89 | $ 67.97 |
Stock-Based Compensation (Sum_3
Stock-Based Compensation (Summary Of PSU-TSR Activity) (Details) - Performance Stock Units, Market Condition [Member] | 3 Months Ended |
Mar. 31, 2020$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Units, Unvested at January 1, 2020 | shares | 340,971 |
Units, Granted | shares | |
Units, Achievement adjustment | shares | 7,672 |
Units, Vested | shares | |
Units, Forfeited | shares | (272,777) |
Units, Unvested at March 31, 2020 | shares | 75,866 |
Weighted-Average Grant-Date Fair Value, Unvested at January 1, 2020 | $ / shares | $ 47.42 |
Weighted-Average Grant-Date Fair Value, Granted | $ / shares | |
Weighted-Average Grant-Date Fair Value, Achievement adjustment | $ / shares | 47.30 |
Weighted-Average Grant-Date Fair Value, Vested | $ / shares | |
Weighted-Average Grant-Date Fair Value, Forfeited | $ / shares | 47.96 |
Weighted-Average Grant-Date Fair Value, Unvested at March 31, 2020 | $ / shares | $ 47.30 |
Property And Equipment (Narrati
Property And Equipment (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Property And Equipment [Abstract] | ||
Depreciation expense | $ 9,566 | $ 6,173 |
Property And Equipment (Schedul
Property And Equipment (Schedule Of Property And Equipment) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Gross | $ 360,188 | $ 352,549 |
Less: accumulated depreciation and amortization | (187,297) | (177,797) |
Total | 172,891 | 174,752 |
Land, Buildings And Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross | 164,304 | 163,202 |
Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross | 149,094 | 139,137 |
Corporate Aircraft [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross | 32,249 | 32,249 |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross | 1,030 | 1,030 |
Projects In Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross | $ 13,511 | $ 16,931 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2020 | |
Lessee, Lease, Description [Line Items] | |
Term of free rent | 18 months |
Finance lease term | 15 years |
Minimum [Member] | Land, Buildings And Improvements [Member] | |
Lessee, Lease, Description [Line Items] | |
Remaining lease terms | 1 year |
Minimum [Member] | Equipment [Member] | |
Lessee, Lease, Description [Line Items] | |
Lease term | 1 year |
Maximum [Member] | Land, Buildings And Improvements [Member] | |
Lessee, Lease, Description [Line Items] | |
Remaining lease terms | 8 years |
Maximum [Member] | Equipment [Member] | |
Lessee, Lease, Description [Line Items] | |
Lease term | 7 years |
Leases (Quantitative Informatio
Leases (Quantitative Information About Leases) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Leases [Abstract] | |||
Amortization of right-of-use assets | $ 4,825 | $ 1,996 | |
Interest on lease liabilities | 4,428 | 1,377 | |
Operating lease costs | 1,588 | 2,467 | |
Other short-term and variable lease costs | 454 | 536 | |
Sublease income | [1] | (16) | (16) |
Total lease costs | 11,279 | 6,360 | |
Operating cash flows from finance leases | 241 | 185 | |
Operating cash flows from operating leases | 1,379 | 2,208 | |
Finance cash flows from finance leases | 2,611 | 2,043 | |
Right-of-use assets obtained in exchange for new finance lease liabilities | 33,120 | ||
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 1,348 | ||
Weighted-average remaining lease term - finance leases | 28 years 8 months 12 days | 4 years 8 months 12 days | |
Weighted-average remaining lease term - operating leases | 4 years 10 months 24 days | 5 years 3 months 18 days | |
Weighted-average discount rate - finance leases | 4.80% | 4.50% | |
Weighted-average discount rate - operating leases | 4.30% | 4.60% | |
[1] | Sublease income excludes rental income from owned properties. |
Leases (Maturity Of Lease Liabi
Leases (Maturity Of Lease Liabilities) (Details) $ in Thousands | Mar. 31, 2020USD ($) |
Operating Leases | |
2020 | $ 3,205 |
2021 | 4,103 |
2022 | 3,752 |
2023 | 2,203 |
2024 | 1,736 |
Thereafter | 2,649 |
Total lease payment | 17,648 |
Less: imputed interest | (1,848) |
Total future minimum lease payments | 15,800 |
Finance Leases | |
2020 | 8,634 |
2021 | 26,677 |
2022 | 26,387 |
2023 | 26,481 |
2024 | 26,240 |
Thereafter | 642,771 |
Total lease payment | 757,190 |
Less: imputed interest | (379,150) |
Total future minimum lease payments | $ 378,040 |
Content Production Assets, Ne_2
Content Production Assets, Net (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2020 | |
Content Production Assets, Net [Abstract] | |
Term used to estimate revenue | 10 years |
Content assets monetized individually over the next 3 years | 71.00% |
Content Production Assets, Ne_3
Content Production Assets, Net (Schedule Of Content Production Assets) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Film, Monetized on Its Own, Capitalized Cost [Abstract] | ||
In release | $ 7,645 | $ 8,735 |
Completed but not released | 2,176 | 8 |
In production | 6,166 | 9,978 |
In development | 393 | 203 |
Total | 16,380 | 18,924 |
Film, Monetized in Film Group, Capitalized Cost [Abstract] | ||
In release | 525 | 580 |
Completed but not released | 307 | 163 |
In production | 283 | 378 |
Total | $ 1,115 | $ 1,121 |
Content Production Assets, Ne_4
Content Production Assets, Net (Schedule Of Amortization And Impairment Of Content Production Assets) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Content Production Assets, Net [Abstract] | |||
Content production amortization expense - assets monetized individually | $ 7,464 | $ 7,507 | |
Content production amortization expense - assets monetized as a film group | 1,287 | 1,231 | |
Content production impairment charge | [1] | 160 | 198 |
Content production development write-offs | [2] | 16 | |
Total amortization and impairment of content production assets | $ 8,911 | $ 8,952 | |
[1] | Unamortized content production assets are evaluated for impairment whenever events or changes in circumstances indicate that the fair value of a film predominantly monetized on its own or a film group may be less than its unamortized costs. If conditions indicate a potential impairment, and the estimated future cash flows are not sufficient to recover the unamortized asset, the asset is written down to fair value. In addition, if we determine that content will not likely air, we will expense the remaining unamortized asset. | ||
[2] | Capitalized script development costs are evaluated at each reporting period for impairment and to determine if a project is deemed to be abandoned. |
Investment Securities And Sho_3
Investment Securities And Short-Term Investments (Narrative) (Details) | 3 Months Ended | ||
Mar. 31, 2020USD ($)security | Mar. 31, 2019USD ($) | Dec. 31, 2019USD ($) | |
Schedule of Investments [Line Items] | |||
Equity investment, impairment | $ 8,828,000 | ||
Loss on equity impairments | $ 2,715,000 | ||
Number of marketable equity security investments | security | 1 | ||
Unrealized holding loss | $ 175,000 | $ 194,000 | |
Short-term investments, interest income | 921,000 | 1,450,000 | |
Unrealized losses | $ 2,328,000 | $ 87,000 | |
Unrealized loss as a percentage of amortized cost | 2.30% | ||
Tapout [Member] | |||
Schedule of Investments [Line Items] | |||
Equity investment, impairment | $ 0 | $ 0 |
Investment Securities And Sho_4
Investment Securities And Short-Term Investments (Schedule Of Investment Securities ) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Investment Securities And Short-Term Investments [Abstract] | ||
Equity method investments | $ 5,500 | $ 14,342 |
Nonmarketable equity investments without readily determinable fair values | 10,644 | 13,359 |
Marketable equity investments with readily determinable fair values | 230 | 405 |
Total investment securities | $ 16,374 | $ 28,106 |
Investment Securities And Sho_5
Investment Securities And Short-Term Investments (Schedule Of Tapout Investment ) (Details) - Tapout [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Schedule of Investments [Line Items] | ||
Net equity method earnings from Tapout | $ 183 | $ 232 |
Net dividends received from Tapout | (197) | (161) |
Equity in earnings of affiliate, net of dividends received | $ (14) | $ 71 |
Investment Securities And Sho_6
Investment Securities And Short-Term Investments (Schedule Of Short-Term Investments Measured at Fair Value) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 135,068 | $ 159,994 |
Gross Unrealized Gain | 259 | 127 |
Gross Unrealized (Loss) | (2,328) | (87) |
Fair Value | 132,999 | 160,034 |
US Treasury Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 25,944 | 32,124 |
Gross Unrealized Gain | 150 | 27 |
Gross Unrealized (Loss) | (13) | |
Fair Value | 26,094 | 32,138 |
Corporate Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 101,411 | 120,012 |
Gross Unrealized Gain | 9 | 89 |
Gross Unrealized (Loss) | (2,328) | (74) |
Fair Value | 99,092 | 120,027 |
Municipal Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 2,165 | |
Fair Value | 2,165 | |
Government Agency Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 7,713 | 5,693 |
Gross Unrealized Gain | 100 | 11 |
Fair Value | $ 7,813 | $ 5,704 |
Investment Securities And Sho_7
Investment Securities And Short-Term Investments (Schedule Of Contractual Maturities Of Short-Term Investment Bonds) (Details) | 3 Months Ended |
Mar. 31, 2020 | |
US Treasury Securities [Member] | Minimum [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Contractual maturities of bonds | 1 month |
US Treasury Securities [Member] | Maximum [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Contractual maturities of bonds | 1 year |
Corporate Bonds [Member] | Minimum [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Contractual maturities of bonds | 1 month |
Corporate Bonds [Member] | Maximum [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Contractual maturities of bonds | 3 years |
Government Agency Bonds [Member] | Minimum [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Contractual maturities of bonds | 9 months |
Government Agency Bonds [Member] | Maximum [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Contractual maturities of bonds | 1 year |
Investment Securities And Sho_8
Investment Securities And Short-Term Investments (Summary Of Short-Term Investment Activity) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Investment Securities And Short-Term Investments [Abstract] | ||
Proceeds from sales and maturities of short-term investments | $ 33,535 | $ 20,478 |
Purchases of short-term investments | $ 8,685 | $ 13,398 |
Fair Value Measurement (Narrati
Fair Value Measurement (Narrative) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Feature Film Production Assets [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Asset impairment charges | $ 160,000 | $ 198,000 |
Fair value of assets | 0 | |
Long-Lived Property And Equipment [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Asset impairment charges | 0 | $ 0 |
Equity Method Investments [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Asset impairment charges | 8,828,000 | |
Equity Securities [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Asset impairment charges | $ 2,715,000 |
Fair Value Measurement (Schedul
Fair Value Measurement (Schedule Of Fair Value Of Debt Instruments) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | |
Fair Value [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Convertible senior notes | $ 187,955 | $ 207,338 | |
Carrying Value [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Convertible senior notes | [1] | $ 193,534 | $ 192,262 |
[1] | The carrying value of the convertible debt instrument presented in the table above represents the face value of the convertible note less unamortized debt discount. |
Accounts Payable And Accrued _3
Accounts Payable And Accrued Expenses (Narrative) (Details) | Mar. 31, 2020 |
Accounts Payable And Accrued Expenses [Abstract] | |
Individual accrual categories percentage of current liabilities | 5.00% |
Accounts Payable And Accrued _4
Accounts Payable And Accrued Expenses (Schedule Of Accounts Payable And Accrued Expenses) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Accounts Payable And Accrued Expenses [Abstract] | ||
Trade related | $ 9,918 | $ 9,282 |
Staff related | 10,186 | 8,651 |
Management incentive compensation | 6,167 | 6,481 |
Talent related | 6,134 | 8,184 |
Accrued WWE Network related expenses | 6,795 | 5,510 |
Accrued event and television production | 18,417 | 16,627 |
Accrued legal and professional | 5,741 | 5,716 |
Accrued purchases of property and equipment | 4,531 | 4,997 |
Accrued film liability | 6,647 | 5,986 |
Accrued other | 9,758 | 9,158 |
Total | $ 84,294 | $ 80,592 |
Convertible Debt (Narrative) (D
Convertible Debt (Narrative) (Details) $ / shares in Units, shares in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020item$ / shares | Dec. 31, 2016$ / sharesshares | Jan. 31, 2017USD ($) | |
Debt Instrument [Line Items] | |||
Percentage of warrant strike price in excess of stock price | 60.00% | ||
Share Price | $ / shares | $ 19.93 | ||
Initial Purchasers [Member] | |||
Debt Instrument [Line Items] | |||
Convertible note hedge, shares covered by hedge | shares | 8,630 | ||
Shares issuable under warrant agreement | shares | 8,630 | ||
3.375% Convertible Notes [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate | 3.375% | ||
Conversion ratio, shares | 40.1405 | ||
Conversion price | $ / shares | $ 24.91 | ||
Warrant strike price | $ / shares | $ 31.89 | ||
3.375% Convertible Notes [Member] | Initial Purchasers [Member] | |||
Debt Instrument [Line Items] | |||
Convertible debt authorized for issuance | $ | $ 215,000,000 | ||
Interest rate | 3.375% | ||
Maturity date | Dec. 15, 2023 | ||
3.375% Convertible Notes [Member] | Conversion Scenario 1 [Member] | |||
Debt Instrument [Line Items] | |||
Threshold within consecutive trading days | 20 | ||
Threshold of consecutive trading days | 30 | ||
3.375% Convertible Notes [Member] | Conversion Scenario 1 [Member] | Minimum [Member] | |||
Debt Instrument [Line Items] | |||
Stock price trigger percent | 130.00% | ||
3.375% Convertible Notes [Member] | Conversion Scenario 2 [Member] | |||
Debt Instrument [Line Items] | |||
Threshold within consecutive trading days | 5 | ||
Threshold of consecutive trading days | 10 | ||
Threshold percentage of stock price and conversion rate | 98.00% |
Convertible Debt (Schedule Of C
Convertible Debt (Schedule Of Convertible Notes) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | |||
Debt | $ 24,416 | $ 25,711 | |
3.375% Convertible Notes [Member] | |||
Debt Instrument [Line Items] | |||
Principal | 215,000 | 215,000 | |
Less: Unamortized debt discount | (21,466) | (22,738) | |
Less: Unamortized debt issuance costs | (3,376) | (3,595) | |
Debt | 190,158 | 188,667 | |
Equity component | [1] | $ 35,547 | $ 35,547 |
[1] | Recorded in the Consolidated Balance Sheets within additional paid-in capital. |
Convertible Debt (Schedule Of I
Convertible Debt (Schedule Of Interest Expense Recognized) (Details) - 3.375% Convertible Notes [Member] - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Debt Instrument [Line Items] | |||
3.375% contractual coupon | $ 1,814 | $ 1,814 | |
Amortization of debt discount | 1,272 | 1,193 | |
Amortization of debt issuance costs | 219 | 165 | |
Additional interest on Convertible Notes | [1] | 1,370 | |
Interest expense | $ 3,305 | $ 4,542 | |
Interest rate | 3.375% | ||
[1] | During the three months ended March 31, 2019, additional nonrecurring interest expense was incurred pursuant to the notes’ indenture related to the removal of the restrictive legend and assignment of the unrestricted CUSIP on the Convertible Notes. |
Long-Term Debt And Credit Fac_3
Long-Term Debt And Credit Facility (Narrative) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Mortgage [Member] | ||
Debt Instrument [Line Items] | ||
Principal amount | $ 23,000,000 | |
Interest rate | 4.50% | |
Monthly installments, interest only | $ 86,000 | |
Monthly installments, interest and principal | $ 117,000 | |
Maturity date | Jul. 5, 2025 | |
Aircraft Financing [Member] | ||
Debt Instrument [Line Items] | ||
Principal amount | $ 31,568,000 | |
Interest rate | 2.18% | |
Monthly installments, interest and principal | $ 406,000 | |
Maturity date | Aug. 7, 2020 | |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Credit Facility borrowing capacity | $ 200,000,000 | |
Credit Facility amount outstanding | $ 0 | $ 0 |
Credit Facility interest rate | 2.70% | |
Credit Facility unutilized commitment fee rate | 0.175% | |
Credit Facility available debt capacity | $ 200,000,000 | |
Credit Facility maturity date | May 24, 2024 |
Long-Term Debt And Credit Fac_4
Long-Term Debt And Credit Facility (Schedule Of Debt) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Current portion of long-term debt | $ 2,416 | $ 3,613 |
Long-term debt | 22,000 | 22,098 |
Debt | 24,416 | 25,711 |
Aircraft Financing [Member] | ||
Debt Instrument [Line Items] | ||
Current portion of long-term debt | 2,017 | 3,218 |
Mortgage [Member] | ||
Debt Instrument [Line Items] | ||
Current portion of long-term debt | 399 | 395 |
Long-term debt | $ 22,000 | $ 22,098 |
Concentration Of Credit Risk (N
Concentration Of Credit Risk (Narrative) (Details) - customer | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Concentration Risk [Line Items] | ||
Concentration risk, number of customers | 2 | |
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Customer One [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 45.00% | 49.00% |
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Customer Two [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 15.00% |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Income Taxes [Abstract] | ||
Deferred tax assets, net | $ 8,057 | $ 7,217 |
Content Production Incentives (
Content Production Incentives (Narrative) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Content Production Incentives [Abstract] | ||
Production incentive receivables | $ 0 | $ 279,000 |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($)shares | |
Stockholders' Equity [Abstract] | |
Authorized stock repurchase, amount | $ 500,000 |
Repurchase and retirement of common stock, Shares | shares | 0 |
Remaining authorized stock repurchase, amount | $ 416,559 |
Related Party Transactions (Nar
Related Party Transactions (Narrative) (Details) - Alpha Entertainment, LLC [Member] - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Related Party Transaction [Line Items] | |||
Related party billings | $ 818 | $ 1,317 | |
Related party accounts receivable | $ 594 | $ 236 |
Subsequent Events (Narrative) (
Subsequent Events (Narrative) (Details) | Apr. 16, 2020USD ($) |
Subsequent Event [Member] | |
Subsequent Event [Line Items] | |
Borrowings under Revolving Credit Facility | $ 200,000,000 |