Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Jan. 31, 2023 | Jun. 30, 2022 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Annual Report | true | ||
Document Fiscal Period Focus | FY | ||
Document Period End Date | Dec. 31, 2022 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2022 | ||
Document Transition Report | false | ||
Entity File Number | 001-16131 | ||
Entity Registrant Name | WORLD WRESTLING ENTERTAINMENT, INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 04-2693383 | ||
Entity Address, Address Line One | 1241 East Main Street | ||
Entity Address, City or Town | Stamford | ||
Entity Address, State or Province | CT | ||
Entity Address, Postal Zip Code | 06902 | ||
City Area Code | 203 | ||
Local Phone Number | 352-8600 | ||
Title of 12(b) Security | Class A Common Stock, par value $0.01 per share | ||
Trading Symbol | WWE | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 2,672,469,399 | ||
Documents Incorporated by Reference | Portions of the Registrant's definitive proxy statement for the 2023 Annual Meeting of Stockholders are incorporated by reference in Part III of this Form 10-K. | ||
Entity Central Index Key | 0001091907 | ||
Auditor Name | Deloitte & Touche LLP | ||
Auditor Location | Stamford, Connecticut | ||
Auditor Firm ID | 34 | ||
Class A Common Stock [Member] | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding (in Shares) | 43,347,119 | ||
Class B Common Stock [Member] | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding (in Shares) | 31,099,011 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Consolidated Statements Of Operations [Abstract] | |||
Net revenues | $ 1,291,523 | $ 1,095,174 | $ 974,207 |
Operating expenses | 730,624 | 608,174 | 549,480 |
Marketing and selling expenses | 78,939 | 69,242 | 71,385 |
General and administrative expenses | 161,448 | 120,840 | 102,182 |
Depreciation and amortization | 37,287 | 40,901 | 42,616 |
Operating income | 283,225 | 256,017 | 208,544 |
Interest expense | 21,156 | 33,610 | 35,601 |
Other income (expense), net | 2,312 | 7,455 | (1,834) |
Income before income taxes | 264,381 | 229,862 | 171,109 |
Provision for income taxes | 68,793 | 52,454 | 39,338 |
Net income | $ 195,588 | $ 177,408 | $ 131,771 |
Earnings per share: basic | $ 2.63 | $ 2.32 | $ 1.70 |
Earnings per share: diluted | $ 2.29 | $ 2.09 | $ 1.56 |
Weighted average common shares outstanding: | |||
Basic | 74,459 | 76,324 | 77,564 |
Diluted | 88,163 | 84,943 | 84,219 |
Dividends declared per common share (Class A and B) | $ 0.48 | $ 0.48 | $ 0.48 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Consolidated Statements Of Comprehensive Income [Abstract] | |||
Net income | $ 195,588 | $ 177,408 | $ 131,771 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustments | (137) | (180) | 107 |
Unrealized holding (losses) gains on available-for-sale debt securities (net of tax (benefit) expense of $(670), $(122) and $4, respectively) | (2,121) | (385) | 14 |
Total other comprehensive (loss) income | (2,258) | (565) | 121 |
Comprehensive income | $ 193,330 | $ 176,843 | $ 131,892 |
Consolidated Statements Of Co_2
Consolidated Statements Of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Consolidated Statements Of Comprehensive Income [Abstract] | |||
Unrealized holding (losses) gains on available-for-sale debt securities, tax (benefit) expense | $ (670) | $ (122) | $ 4 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 220,230 | $ 134,828 |
Short-term investments, net | 258,487 | 280,957 |
Accounts receivable (net of allowance for doubtful accounts and returns of $5,055 and $5,155, respectively) | 112,362 | 171,196 |
Inventory | 2,915 | 8,033 |
Prepaid expenses and other current assets | 33,154 | 32,242 |
Total current assets | 627,148 | 627,256 |
Property and equipment, net | 329,141 | 172,677 |
Finance lease right-of-use assets, net | 296,643 | 313,360 |
Operating lease right-of-use assets, net | 16,278 | 8,973 |
Content production assets, net | 16,518 | 13,781 |
Investment securities | 11,797 | 11,618 |
Deferred income tax assets, net | 45,619 | 13,100 |
Other assets, net | 12,425 | 43,302 |
Total assets | 1,355,569 | 1,204,067 |
Current liabilities: | ||
Current portion of long-term debt | 449 | 430 |
Finance lease liabilities | 11,677 | 12,190 |
Operating lease liabilities | 3,604 | 4,755 |
Convertible debt | 214,100 | 201,093 |
Accounts payable and accrued expenses | 122,856 | 122,716 |
Deferred revenues | 79,750 | 74,633 |
Total current liabilities | 432,436 | 415,817 |
Long-term debt | 20,848 | 21,284 |
Finance lease liabilities | 364,900 | 374,681 |
Operating lease liabilities | 13,145 | 5,063 |
Other non-current liabilities | 6,989 | 12,562 |
Total liabilities | 838,318 | 829,407 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Additional paid-in capital | 424,010 | 422,884 |
Accumulated other comprehensive income | 162 | 2,420 |
Retained Earnings (accumulated deficit) | 92,335 | (51,393) |
Total stockholders' equity | 517,251 | 374,660 |
Total liabilities and stockholders' equity | 1,355,569 | 1,204,067 |
Class A Common Stock [Member] | ||
Stockholders' equity: | ||
Common stock | 433 | 438 |
Class B Common Stock [Member] | ||
Stockholders' equity: | ||
Common stock | $ 311 | $ 311 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Accounts receivable, allowance for doubtful accounts and returns | $ 5,055 | $ 5,155 |
Class A Common Stock [Member] | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 180,000,000 | 180,000,000 |
Common stock, shares issued | 43,317,422 | 43,732,977 |
Common stock, shares outstanding | 43,317,422 | 43,732,977 |
Class B Common Stock [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] Class A Common Stock [Member] | Common Stock [Member] Class B Common Stock [Member] | Additional Paid-In Capital [Member] | Accumulated Other Comprehensive Income [Member] | Accumulated Deficit [Member] | Class A Common Stock [Member] | Class B Common Stock [Member] | Total |
Balance, Shares at Dec. 31, 2019 | 46,181,000 | 31,099,000 | ||||||
Balance at Dec. 31, 2019 | $ 462 | $ 311 | $ 415,953 | $ 2,864 | $ (150,264) | $ 269,326 | ||
Net income | 131,771 | 131,771 | ||||||
Other comprehensive income (loss) | 121 | $ 121 | ||||||
Repurchase and retirements of common stock, Shares | 0 | |||||||
Stock issuances and other, net, Shares | 514,000 | |||||||
Stock issuances and other, net | $ 5 | 3,825 | $ 3,830 | |||||
Taxes paid related to net settlement upon vesting of equity awards | (11,082) | (11,082) | ||||||
Cash dividends declared | (37,834) | (37,249) | ||||||
Cash dividends declared | 585 | |||||||
Stock-based compensation | 27,277 | 27,277 | ||||||
Balance, Shares at Dec. 31, 2020 | 46,695,000 | 31,099,000 | ||||||
Balance at Dec. 31, 2020 | $ 467 | $ 311 | 436,558 | 2,985 | (56,327) | 383,994 | ||
Net income | 177,408 | 177,408 | ||||||
Other comprehensive income (loss) | (565) | $ (565) | ||||||
Repurchase and retirements of common stock, Shares | (3,251,000) | (3,251,313) | ||||||
Repurchase and retirements of common stock | $ (32) | (29,923) | (135,675) | $ (165,630) | ||||
Stock issuances and other, net, Shares | 289,000 | |||||||
Stock issuances and other, net | $ 3 | 4,170 | 4,173 | |||||
Taxes paid related to net settlement upon vesting of equity awards | (5,640) | (5,640) | ||||||
Cash dividends declared | (36,799) | (36,413) | ||||||
Cash dividends declared | 386 | |||||||
Stock-based compensation | 17,333 | 17,333 | ||||||
Balance, Shares at Dec. 31, 2021 | 43,733,000 | 31,099,000 | 43,732,977 | 31,099,011 | ||||
Balance (ASU 2020-06 [Member]) at Dec. 31, 2021 | (26,383) | 17,609 | (8,774) | |||||
Balance at Dec. 31, 2021 | $ 438 | $ 311 | 422,884 | 2,420 | (51,393) | 374,660 | ||
Net income | 195,588 | 195,588 | ||||||
Other comprehensive income (loss) | (2,258) | $ (2,258) | ||||||
Repurchase and retirements of common stock, Shares | (695,000) | (694,857) | ||||||
Repurchase and retirements of common stock | $ (7) | (6,439) | (33,560) | $ (40,006) | ||||
Stock issuances and other, net, Shares | 279,000 | |||||||
Stock issuances and other, net | $ 2 | 5,181 | 5,183 | |||||
Taxes paid related to net settlement upon vesting of equity awards | (8,863) | (8,863) | ||||||
Cash dividends declared | (35,909) | (35,689) | ||||||
Cash dividends declared | (220) | |||||||
Stock-based compensation | 37,410 | 37,410 | ||||||
Balance, Shares at Dec. 31, 2022 | 43,317,000 | 31,099,000 | 43,317,422 | 31,099,011 | ||||
Balance at Dec. 31, 2022 | $ 433 | $ 311 | $ 424,010 | $ 162 | $ 92,335 | $ 517,251 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
OPERATING ACTIVITIES: | |||
Net income | $ 195,588 | $ 177,408 | $ 131,771 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Amortization and impairments of content production assets | 33,015 | 19,714 | 26,309 |
Depreciation and amortization | 46,448 | 48,785 | 48,533 |
Other amortization | 13,018 | 18,849 | 17,998 |
Loss on equity investments, net | 16 | 808 | 5,720 |
Stock-based compensation | 34,944 | 19,086 | 27,989 |
Benefit from deferred income taxes | (28,648) | (2,993) | (3,015) |
Other non-cash adjustments | 11,183 | (3,302) | 22,398 |
Cash provided by (used in) changes in operating assets and liabilities: | |||
Accounts receivable | 54,025 | (116,300) | 70,037 |
Inventory | 5,628 | 1,160 | (1,287) |
Prepaid expenses and other assets | (3,740) | 3,011 | (12,171) |
Content production assets | (35,752) | (17,738) | (25,645) |
Accounts payable, accrued expenses and other liabilities | (5,182) | 22,719 | 5,088 |
Deferred income | 5,089 | 11,718 | 6,149 |
Net cash provided by operating activities | 325,632 | 182,925 | 319,874 |
INVESTING ACTIVITIES: | |||
Purchases of property and equipment and other assets | (199,892) | (39,231) | (27,662) |
Purchases of short-term investments | (245,964) | (374,502) | (153,904) |
Proceeds from sales and maturities of short-term investments | 263,789 | 222,060 | 182,316 |
Purchase of investment securities | (195) | (1,470) | (589) |
Proceeds from sale of investment securities | 11,715 | ||
Other | 4,329 | ||
Net cash (used in) provided by investing activities | (177,933) | (193,143) | 11,876 |
FINANCING ACTIVITIES: | |||
Repayment of debt | (417) | (100,398) | (103,599) |
Repayment of finance leases | (14,051) | (11,948) | (10,795) |
Dividends paid | (35,689) | (36,413) | (37,249) |
Proceeds from borrowings under credit facility | 200,000 | ||
Proceeds from tenant improvement allowances | 34,246 | ||
Taxes paid related to net settlement upon vesting of equity awards | (8,863) | (5,640) | (11,082) |
Proceeds from issuance of stock and other | 2,483 | 2,973 | 2,630 |
Repurchase and retirement of common stock | (40,006) | (165,630) | |
Net cash (used in) provided by financing activities | (62,297) | (317,056) | 39,905 |
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | 85,402 | (327,274) | 371,655 |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 134,828 | 462,102 | 90,447 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 220,230 | 134,828 | 462,102 |
SUPPLEMENTAL CASH FLOW INFORMATION: | |||
Cash paid for income taxes, net of refunds | 90,029 | 55,500 | 45,586 |
Cash paid for interest | 9,597 | 9,927 | 12,262 |
NON-CASH INVESTING AND FINANCING TRANSACTIONS: | |||
Purchases of property and equipment recorded in accounts payable and accrued expenses (See Note 10) | 18,567 | 22,207 | 4,365 |
Principal stockholder contributions (See Note 17) | $ 2,700 | 1,200 | $ 1,200 |
Infrastructure improvement incentives (See Note 14) | $ 4,329 |
Basis Of Presentation And Busin
Basis Of Presentation And Business Description | 12 Months Ended |
Dec. 31, 2022 | |
Basis Of Presentation And Business Description [Abstract] | |
Basis Of Presentation And Business Description | 1. Basis of Presentation and Business Description The accompanying Consolidated Financial Statements include the accounts of WWE. “WWE” refers to World Wrestling Entertainment, Inc. and its subsidiaries, unless the context otherwise requires. References to “we,” “us,” “our” and the “Company” refer to WWE. Certain prior period amounts have been reclassified for consistency with the current year presentation. These reclassifications had no effect on the reported results of operations. We are an integrated media and entertainment company, principally engaged in the production and distribution of unique and creative content through various channels, including content rights agreements for our flagship programs, Raw and SmackDown , and our premium over-the-top network (“WWE Network”), premium live event programming, monetization across social media outlets, live events, licensing of various WWE themed products, and the sale of merchandise at our live events. 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 broadcast and pay television, streaming, as well as digital and social media. Across these platforms, revenues principally consist of content rights fees associated with the distribution of our programming content, 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, as well as revenues from events for which we receive a fixed fee and the sale of travel packages associated with the Company’s global live events. As a result of the global spread of the coronavirus pandemic (“COVID-19”), these revenues had been greatly limited from March 2020 through the first half of 2021. In July 2021, we resumed our domestic and international live event touring schedules. 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. Beginning July 2022, we launched an exclusive, multi-year partnership with Fanatics to create a new, enhanced experience for WWE fans globally, and transitioned our digital retail platform to Fanatics. Note on the COVID-19 Pandemic The global spread of COVID-19 and the various attempts to contain it resulted in restrictions, postponements and cancellations of various sports and other events and required us to cancel, postpone or relocate certain of our live events since March 2020. While restrictions have lessened and we have resumed our domestic and international live event touring schedules, COVID-19 and its variants continue to create significant uncertainty and the full extent of the impact will depend on numerous evolving factors that we can neither predict nor control, including the pandemic’s duration and severity and the governmental, business and individual responses to it. We will continue to actively monitor the issues raised by the COVID-19 pandemic and may take further actions that alter our business operations that are required by applicable governmental authorities and/or that we determine to be in the best interests of our employees, talent, customers, partners and stockholders. Any of the foregoing could have a material negative effect on our business and results of operations. |
Summary Of Significant Accounti
Summary Of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Summary Of Significant Accounting Policies [Abstract] | |
Summary Of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Use of Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires our management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Basis of Consolidation — The Consolidated Financial Statements include the accounts of WWE and all of its domestic and foreign subsidiaries. Included in Corporate are intersegment eliminations recorded in consolidation. All intercompany accounts and transactions have been eliminated in consolidation. Cash and Cash Equivalents — Cash and cash equivalents include cash on deposit in overnight deposit accounts, investments in Treasury bills and investments in money market accounts with original maturities of three months or less at the time of purchase. Short-term Investments, Net — Our short-term investments consist of U.S. Treasury securities, corporate bonds and government agency bonds. We classify and account for these debt securities as available-for-sale debt securities and carry these securities at fair value. We report the unrealized gains and losses, net of tax, as other comprehensive income (loss) in stockholders’ equity, with the exception, if applicable, of unrealized losses due to loss of credit worthiness or unrealized gains due to recovery of credit worthiness, which are recorded to other income, net on the Consolidated Statements of Operations. Realized gains and losses on investments are included in earnings and are derived using the specific identification method for determining the cost of securities sold. Accounts Receivable, Net — Accounts receivable relate principally to amounts due to us from distributors of our content, as well as from licensees that produce consumer products containing our intellectual property and/or trademarks. We estimate the collectability of our receivables and establish allowances for the amount of accounts receivable that we estimate to be uncollectible. We base these allowances on our historical collection experience, the length of time our accounts receivable are outstanding, the financial condition of individual customers and current economic conditions that may affect a customer’s ability to pay. An individual balance is charged to the allowance when all collection efforts have been exhausted and it is deemed likely to be uncollectible, taking into consideration the financial condition of the customer and other factors. Inventory — As of December 31, 2022, our inventory primarily consists of merchandise sold at live events. As of December 31, 2021, our inventory consisted of merchandise sold on our websites and on distribution platforms, including Amazon, and merchandise sold at live events. Substantially all of our inventory is comprised of finished goods. Inventory is stated at the lower of cost or net realizable value. The valuation of our inventories requires management to make market estimates assessing the quantities and the prices at which we believe the inventory can be sold. Property and Equipment, Net — Property and equipment are carried at historical cost net of benefits associated with tax incentives less accumulated depreciation and amortization. Depreciation and amortization is computed on a straight-line basis over the estimated useful lives of the assets or, when applicable, the life of the lease, whichever is shorter. Vehicles and equipment are depreciated based on estimated useful lives varying from three years to five years . Buildings and related improvements are depreciated based on estimated useful lives varying from five years to thirty-nine years . Our corporate aircraft is depreciated over ten years on a straight-line basis less an estimated residual value. Leases — The Company determines if a contract contains a lease at the inception of the arrangement. The Company has elected the short-term lease exemption, whereby leases with initial terms of one year or less are not capitalized and instead expensed generally on a straight-line basis over the lease term. The depreciable life of the underlying leased assets are generally limited to the expected lease term inclusive of any optional lease terms where we conclude at the inception of the lease that we are reasonably certain of exercising those renewal options. The Company also elected to not separate lease components from non-lease components across all lease categories. Instead, each separate lease component and non-lease component are accounted for as a single lease component. The Company is primarily a lessee with a lease portfolio comprised mainly of real estate and equipment leases. Operating and finance lease assets are included on our Consolidated Balance Sheets in non-current assets as an operating or finance right-of-use asset. Operating and finance lease liabilities are included on our Consolidated Balance Sheets in non-current liabilities for the portion that is due on a long-term basis and in current liabilities for portion that is due within 12 months of the financial statement date. The right-of-use assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Right-of-use assets and lease liabilities are recognized at the commencement date of the lease based on the present value of lease payments over the lease term using an appropriate discount rate. Since the implicit rate is not readily available for our leases, we use our incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The right-of-use asset also may include any initial direct costs paid and is reduced by any lease incentives provided by the lessor. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for fixed lease payments is recognized on a straight-line basis over the lease term for our operating leases and for our finance leases, we record interest expense on the lease liability and straight-line amortization of the right-of-use asset over the lease term. Lease expense for variable lease payments is recognized as incurred. Content Production Assets, Net — The Company is primarily a content producer with content production assets consisting of non-live event episodic television series, feature films and original programming content for WWE Network. The non-live event episodic television series are predominantly monetized on their own through individual television distribution arrangements. 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 original WWE Network programming content are predominantly monetized as a film group through the collection of licensing fees from distribution partners or through the collection of monthly subscription fees from 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 non-live event episodic television series are expensed upon delivery of the completed programming content to the individual television distributors. 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. Our programming content distributed on the WWE Network is expensed based upon delivery to distribution partners or based on viewership consumption patterns if on the subscription-based WWE Network. 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. Valuation of Long-Lived Assets — We periodically evaluate the carrying amount of long-lived assets for impairment when events and circumstances warrant such a review. Investment Securities — Equity investments that are marketable and have a readily determinable fair value are carried at fair value with changes in the fair value recorded through income and reflected in Other income (expense), net on the Consolidated Statements of Operations. For nonmarketable equity securities (those without a readily determinable fair value), the Company elected to apply the practicality exception to apply fair value measurement, under which such securities will be measured at cost, less impairment, plus or minus observable price changes for identical or similar securities of the same issuer with such changes recorded in Other income, net on the Consolidated Statements of Operations. For equity investments where the Company does not control the investee, and where it is not the primary beneficiary of a variable interest entity but can exert significant influence over the financial and operating policies of the investee, the Company applies the equity method of accounting. Under the equity method of accounting, the Company’s share of the investee’s underlying net income or loss is recorded as investment income or loss within Other income, net on the Consolidated Statements of Operations, and is also included, net of cash dividends received, in Equity in earnings of affiliate, net of dividends received, on the Consolidated Statements of Cash Flows. Dividend distributions received from the investee reduces the Company’s carrying value of the investee and the cost basis if deemed a return of capital. Nonmarketable equity securities and equity method investments are also subject to periodic impairment evaluations, and when factors indicate that a significant decrease in value has occurred. Factors considered in making such assessments may include near-term prospects of the investees, subsequent rounds of financing activities of the investees, and the investees’ capital structure as well as other economic variables, which reflect assumptions market participants may use in pricing these assets. If an equity method investment is deemed to have experienced an other-than-temporary decline below its carrying amount, we reduce the carrying amount of the equity method investment to its quoted or estimated fair value, as applicable, and establish a new carrying amount for the investment. For nonmarketable equity securities that are accounted for under the measurement alternative to fair value, the Company applies the impairment model that does not require the Company to consider whether the impairment is other-than-temporary. We record these impairment charges on our equity investments in Other income, net on the Consolidated Statements of Operations. Income Taxes — Deferred tax liabilities and assets are recognized for the expected future tax consequences of events that have been reflected in the Consolidated Financial Statements. Amounts are determined based on the differences between the book and tax bases of particular assets and liabilities and operating loss carry forwards, using tax rates in effect for the years in which the differences are expected to reverse. A valuation allowance is provided to offset deferred tax assets if, based upon the available evidence, it is more-likely-than-not that some or all of the deferred tax assets will not be realized. In evaluating our ability to recover our deferred tax assets within the jurisdiction from which they arise, we consider all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax-planning strategies, and results of recent operations. If we determine that we would be able to realize our deferred tax assets in the future in excess of their net recorded amount, we would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. Conversely, if we determine we might not be able to realize our deferred tax assets, we would record a valuation allowance which would result in a charge to the provision for income taxes. We use a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate tax positions taken or expected to be taken in a tax return by assessing whether they are more likely than not sustainable, based solely on their technical merits, upon examination, and including resolution of any related appeals or litigation process. The second step is to measure the associated tax benefit of each position, as the largest amount that we believe is more likely than not realizable. Differences between the amount of tax benefits taken or expected to be taken in our income tax returns and the amount of tax benefits recognized in our financial statements represent our unrecognized income tax benefits, which we record as a liability. Our policy is to include interest and penalties related to unrecognized income tax benefits as a component of income tax expense. Revenue Recognition — Revenues are generally recognized when control of the promised goods or services is transferred to our customers, either at a point in time or over time, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. Most of our contracts have one performance obligation and all consideration is allocated to that performance obligation. In contracts that have multiple performance obligations, we allocate the transaction price to each identified performance obligation based upon their relative standalone selling price. The standalone selling prices are determined using observable standalone selling prices when available as well as estimates of standalone selling prices using adjusted market assessment and expected cost plus margin approaches to estimate the price for individual components. Variable consideration can result from variability in price or quantity, or both. The components of our transaction price generally do not include material amounts of variable consideration. The variable consideration related to the transaction price contained in our contracts relates 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. In contracts that include a minimum guarantee, we recognize revenue over time when we estimate that the minimum guarantee will not be exceeded through the associated sales or usage-based royalties. For transaction prices related to these future obligations that may contain material amounts of variable consideration related to quantities in a contract, we estimate the quantities each reporting period. 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, including our weekly flagship programs as well as premium live event and original programming, (ii) subscriptions to WWE Network, (iii) advertising and sponsorship sales, (iv) live event ticket sales, (v) consumer product licensing royalties from the sale by third-party licensees of WWE branded merchandise, (vi) direct-to-consumer sales of merchandise at our live event venues, and (vii) sales of our merchandise through eCommerce platforms. The below describes our revenue recognition policies in further detail for each major revenue source of the Company. Content rights fees: Rights fees received from distributors of our content, including our weekly flagship programs, Raw and SmackDown , as well as premium live event and original programming, both domestically and internationally, are recorded when the content (functional intellectual property) has been delivered and control has been transferred to the distributor and the license period has begun. Any advance payments received from the distributors are deferred upon collection and recognized into revenue as content is delivered. Our content rights distribution agreements are generally between one year and five years in length and frequently provide for contractual increases over their terms. WWE Network Subscriptions: Revenues from the sale of subscriptions to WWE Network are recognized ratably over each paid monthly membership period. Deferred revenues consist of subscription fees billed to members that have not been recognized and gift memberships that have not been redeemed. Advertising and sponsorships: Through our sponsorship packages, we offer advertisers a full range of our promotional vehicles, including online and print advertising, on-air announcements and special appearances by our Superstars. We allocate the transaction price to all performance obligations contained within a sponsorship and advertising arrangement based upon their relative standalone selling price. Standalone selling prices are determined generally based on a rate card used to determine pricing for individual components. Revenues are recognized as each performance obligation is satisfied, which generally occurs when the sponsorship and advertising is aired, exhibited, performed or played on the applicable WWE platform. We are generally the principal in our advertising and sponsorship arrangements because we control the advertising and sponsorship inventory before it is transferred to our customers. Our control is evidenced by our sole ability to monetize the advertising and sponsorship inventory and being primarily responsible to our customers. Live event ticket sales: Revenues from our live event ticket sales are recognized upon the occurrence of the related live event. Consumer product licensing royalties: Licensing revenues consist principally of royalties or license fees related to various WWE themed products, such as video games, toys and apparel, which are created using WWE brands and marks (symbolic intellectual property). Revenues from our licensed products are recognized in the period of the underlying product sales based on estimates from licensees and adjustments to the estimated amounts are recorded when final statements are received. The estimates are derived from the best available recent information from our licensees of underlying sales performance and represent the most likely amount of revenues expected. Any upfront license fees or minimum guarantees received from the licensee are deferred upon collection and recognized into revenue over the contract term as the amounts are earned. In contracts that include a minimum guarantee, we recognize revenue over time when we estimate that the minimum guarantee will not be exceeded through the associated sales or usage-based royalties. Direct-to-consumer venue merchandise sales: Direct-to-consumer merchandise sales consist of sales of merchandise at our live events. Revenues are recognized at the point of sale, as control is transferred to the customer. eCommerce sales: Beginning July 2022, eCommerce revenues consist principally of royalties or license fees related to various WWE themed merchandise (symbolic intellectual property). Any upfront license fees or minimum guarantees received from the licensee are deferred upon collection and recognized into revenue over the contract term as the amounts are earned. In contracts that include a minimum guarantee, we recognize revenue over time when we estimate that the minimum guarantee will not be exceeded through the associated sales or usage-based royalties. When we estimate that the minimum guarantee will be exceeded through the associated sales or usage-based royalties, revenues are recognized in the period of the underlying sales based on estimates from licensees and adjustments to the estimated amounts are recorded when final statements are received. The estimates are derived from the best available recent information from our licensees of underlying sales performance and represent the most likely amount of revenues expected. Prior to July 2022, eCommerce revenues consisted of direct-to-consumer sales of merchandise on our websites and on other distribution platforms, including Amazon. Revenues associated with direct-to-consumer sales are recognized at a point in time, as control is transferred to the customer upon shipment. Operating Expenses — Operating expenses consist of our production costs associated with developing our content, 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, and costs associated with operating WWE Network. In addition, operating expenses include the operating costs associated with talent development, data analytics, data engineering, business strategy and real estate and facilities functions. Included within operating expenses are the following depreciation and amortization expenses: Amortization and impairment of feature film production assets: We amortize feature film production assets based on the estimated future cash flows. Unamortized feature film production assets are evaluated for impairment each reporting period. Amortization and impairment of television production assets: Television production assets consist primarily of non-live event episodic television series we have produced for distribution through a variety of platforms, including on WWE Network. Costs to produce episodic programming for television or distribution on WWE Network are amortized in the proportion that revenues bear to management's estimates of the ultimate revenue expected to be recognized from exploitation, exhibition or sale. Unamortized television production assets are evaluated for impairment each reporting period. Program amortization for WWE Network is included in operating expenses as a component of amortization of television production assets. For episodic programming debuting and currently expected to air exclusively on WWE Network, the cost of the programming is expensed upon delivery of the content to distribution partners or the initial release on the subscription-based WWE Network, as the vast majority of viewership occurs in close proximity to the initial release. Depreciation and amortization of costs related to content delivery and technology assets utilized for WWE Network: These costs are depreciated or amortized on a straight-line basis over the shorter of the expected useful life or the term of the respective assets. Amortization of right-of-use assets on finance leases of equipment: The amortization expense associated with the right-of-use assets pertain predominantly to equipment utilized to produce and distribute our live event programming and are therefore included in operating expenses. Depreciation on equipment used directly in revenue generating activities: We capitalize equipment consisting primarily of television set components and related equipment that is utilized as part of our programming content. These assets are depreciated over their respective estimated useful lives. The following table presents the depreciation and amortization expense amounts included within Operating expenses for the periods presented: Year Ended December 31, 2022 2021 2020 Amortization and impairment of content production assets $ 33,015 $ 19,714 $ 26,309 Depreciation and amortization of WWE Network content delivery and technology assets 8,534 7,530 5,632 Amortization of right-of-use assets - finance leases of equipment 9,076 9,149 11,070 Depreciation on equipment used directly to support operations 788 630 561 Total depreciation and amortization included in operating expenses $ 51,413 $ 37,023 $ 43,572 Costs to produce our live event programming are expensed when the event is first broadcast, and are not included in the depreciation and amortization table noted above. These costs include production-related costs, such as lighting, pyrotechnics and staging, associated with our weekly, in-ring televised programming as well as our premium live events, which are included as a component of our Media segment Operating expenses. We also incur event-related costs, such as venue rental, security and travel, associated with our premium live events as well as our televised and non-televised events, which are included as a component of our Live Events segment Operating expenses. Talent-related costs primarily associated with our premium live events and televised programming are included within our Media segment, while talent-related costs associated with our non-televised events are included within our Live Events segment. Marketing and Selling Expenses – Marketing and selling expenses consist of costs associated with the promotion and marketing of our services and products. These expenses include advertising and promotional costs, and the costs associated with our sales and marketing functions, creative services functions and our international offices. General and Administrative Expenses – General and administrative expenses are unallocated and include costs associated with our corporate administrative functions, including finance, investor relations, community relations, corporate communications, information technology, legal, facilities, human resources and our Board of Directors. We record all Company-wide severance expenses as unallocated corporate general and administrative expenses. Content Production Incentives — The Company has access to various governmental programs that are designed to promote content production within the United States and certain international jurisdictions. Tax incentives earned with respect to expenditures on qualifying film production activities are included as an offset to Content production assets, net within our Consolidated Balance Sheets. Tax incentives earned with respect to expenditures on qualifying capital projects are included as an offset to Property and equipment, net within our Consolidated Balance Sheets. Tax incentives earned with respect to expenditures on qualifying television and other production activities are recorded as an offset to production expenses within Operating expenses within our Consolidated Statements of Operations. The Company recognizes these benefits when we have reasonable assurance regarding the realizable amount of the tax credits. The realizable amount is recorded within Accounts receivable, net within our Consolidated Balance Sheets until the Company receives the funds from the respective governmental jurisdiction. As there is no authoritative guidance under U.S. GAAP on accounting for government assistance to for profit business entities, the Company accounts for these content production incentives by analogy to International Accounting Standard ("IAS") 20, Accounting for Government Grants and Disclosure of Government Assistance . Advertising Expense — Advertising costs are expensed as incurred, except for costs related to the development of a major commercial or media campaign, which are expensed in the period in which the commercial or campaign is first presented. For the years ended December 31, 2022, 2021 and 2020, we recorded advertising expenses of $ 10,778 , $ 9,219 and $ 13,539 , respectively. Foreign Currency Translation — For the translation of the financial statements of our foreign subsidiaries whose functional currencies are non-U.S. Dollars, assets and liabilities are translated at the year-end exchange rate, and income statement accounts are translated at monthly average exchange rates for the year. The resulting translation adjustments are recorded in accumulated other comprehensive income, a component of stockholders’ equity, and also in comprehensive income. Foreign currency transactions are recorded at the exchange rate prevailing at the transaction date, with any gains and/or losses recorded within Other income (expense), net within our Consolidated Statements of Operations. Stock-Based Compensation — Equity awards are granted to directors, officers and employees of the Company. Stock-based compensation costs associated with our restricted stock units ("RSUs") are determined using the fair market value of the Company's common stock on the date of the grant. These costs are recognized over the requisite service period using the graded vesting method, net of estimated forfeitures. RSUs have a service requirement typically over a 3.5 year vesting schedule and vest in equal annual installments. Unvested RSUs accrue dividend equivalents at the same rate as are paid on our shares of Class A common stock. The dividend equivalents are subject to the same vesting schedule as the underlying RSUs. Stock-based compensation costs associated with our performance stock units ("PSUs") are initially determined using the fair market value of the Company's common stock on the date the awards are approved by our Compensation and Human Capital Committee (service inception date). The vesting of these PSUs are subject to certain performance conditions and a service requirement of typically 3.5 years. Until such time as the performance conditions are met, stock compensation costs associated with these PSUs are re-measured each reporting period based upon the fair market value of the Company's common stock and the estimated performance attainment on the reporting date. The ultimate number of PSUs that are issued to an employee is the result of the actual performance of the Company at the end of the performance period compared to the performance conditions. Stock compensation costs for our PSUs are recognized over the requisite service period using the graded vesting method, net of estimated forfeitures. Unvested PSUs accrue dividend equivalents once the performance conditions are met at the same rate as are paid on our shares of Class A common stock. The dividend equivalents are subject to the same vesting schedule as the underlying PSUs. During the third quarter of 2022, the Compensation and Human Capital Committee approved the grant of PSUs to certain executives for an aggregate value of $ 18,000 . These awards were granted in October 2022 and vary from the typical PSU grants in that the awards have performance con |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 3. Earnings Per Share For purposes of calculating basic and diluted earnings per share, we used the following weighted average common shares outstanding (in thousands): Year Ended December 31, 2022 2021 2020 Net income for basic earnings per share $ 195,588 $ 177,408 $ 131,771 Effect of potentially dilutive shares: Interest expense related to the Convertible Notes (1) 6,063 — — Net income for diluted earnings per share $ 201,651 $ 177,408 $ 131,771 Weighted average basic common shares outstanding 74,459 76,324 77,564 Dilutive effect of restricted and performance stock units 664 447 492 Dilutive effect of convertible debt instruments 13,036 8,166 6,160 Dilutive effect of employee share purchase plan 4 6 3 Weighted average dilutive common shares outstanding 88,163 84,943 84,219 Earnings per share: Basic $ 2.63 $ 2.32 $ 1.70 Diluted $ 2.29 $ 2.09 $ 1.56 Anti-dilutive shares (excluded from per-share calculations): Net shares received on purchased call of convertible debt hedge 5,330 4,641 3,762 Outstanding restricted and performance stock units — — — (1) The Company adopted ASU 2020-06 effective January 1, 2022 under the modified retrospective approach. As such, for purposes of calculating net income for diluted earnings per share, we have not made any adjustments for the years ended December 31, 2021 and 2020. 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 Warrants transactions as described further in Note 11, Convertible Debt . The collective impact of the Convertible Note Hedge and Warrants effectively eliminates any economic dilution that may occur from the actual conversion of the Convertible Notes between the conversion price of $ 24.91 per share and the strike price of the Warrants of $ 31.89 per share. The adoption of ASU 2020-06, as described in Note 2, Summary of Significant Accounting Policies – Recent Accounting Pronouncements , did not impact the accounting for the Convertible Note Hedge and Warrants (i.e., continue to remain classified in equity), as well as the treatment for diluted earnings per share calculation purposes as it relates to the Convertible Note Hedge and Warrants. We adopted ASU 2020-06 on January 1, 2022 under the modified retrospective method and applied the new guidance to our Convertible Notes outstanding as of January 1, 2022. We have not changed previously disclosed amounts or provided additional disclosures for comparative periods. ASU 2020-06 requires the if-converted method to be applied for all convertible instruments when calculating diluted earnings per share. Under the if-converted method, diluted earnings per share will be calculated assuming that all the Convertible Notes were converted solely into shares of common stock at the beginning of the reporting period, unless the result would be anti-dilutive. Prior to actual conversion, for purposes of calculating diluted earnings per share, the denominator also includes the additional shares issued related to the Warrants using the treasury stock method to the extent the average price of our common stock exceeds the strike price of the Warrants of $ 31.89 per share. In addition, 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. The dilution from the Convertible Notes had a $ 0.39 impact on diluted earnings per share for the year ended December 31, 2022, which was calculated using the if-converted method. The dilution from the Convertible Notes had a $ 0.22 and $ 0.13 impact on diluted earnings per share for the years ended December 31, 2021 and 2020, respectively, which were calculated under the treasury stock method. |
Revenues
Revenues | 12 Months Ended |
Dec. 31, 2022 | |
Revenues [Abstract] | |
Revenues | 4. Revenues See Note 2, Summary of Significant Accounting Policies – Revenue Recognition for information on our revenue recognition accounting policies. Disaggregated Revenues The following table presents our revenues disaggregated by primary revenue sources. Sales and usage-based taxes are excluded from revenues. Year Ended December 31, 2022 2021 2020 Net revenues: Media Segment : Network (including pay-per-view) (1) $ 222,017 $ 224,967 $ 192,361 Core content rights fees (2) 596,814 566,249 531,640 Advertising and sponsorships (3) 66,538 71,495 65,333 Other (4) 148,508 73,501 78,882 Total Media Segment net revenues 1,033,877 936,212 868,216 Live Events Segment : North American ticket sales 97,907 46,301 15,206 International ticket sales 12,113 4,639 210 Advertising and sponsorships (5) 4,738 896 354 Other (6) 8,325 5,967 4,151 Total Live Events Segment net revenues 123,083 57,803 19,921 Consumer Products Segment : Consumer product licensing 77,532 51,982 41,675 eCommerce 33,263 39,085 41,196 Venue merchandise 23,768 10,092 3,199 Total Consumer Products Segment net revenues 134,563 101,159 86,070 Total net revenues $ 1,291,523 $ 1,095,174 $ 974,207 (1) Network revenues consist primarily of license fees associated with the domestic distribution of WWE Network content to NBCU (effective March 18, 2021), as well as subscription fees from customers of WWE Network and license fees associated with our international licensed partner agreements. Network revenues for the year ended December 31, 2021 include the upfront revenue recognition related to the delivery of certain WWE Network intellectual property rights. (2) Core content rights fees consist primarily of licensing revenues from the distribution of our flagship programs, Raw and SmackDown , as well as our NXT programming, through global broadcast, pay television and digital platforms. (3) Advertising and sponsorships revenues within our Media segment consist primarily of advertising revenues from the Company’s content on third-party social media platforms and sponsorship fees from sponsors who promote their products utilizing the Company’s media platforms, including promotion on the Company’s digital websites and on-air promotional media spots. (4) 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 content in international markets, scripted, reality and other programming. (5) Advertising and sponsorships revenues within our Live Events segment primarily consist of fees from advertisers and sponsors who promote their products utilizing the Company’s live events (i.e., presenting sponsor of fan engagement events and advertising signage at the event). (6) Other revenues within our Live Events segment primarily consists of the sale of travel packages associated with the Company’s global live events, as well as revenues from events for which the Company receives a fixed fee . WWE Network subscriptions revenues for international subscribers, and domestic subscribers through March 17, 2021 (prior to transition of WWE Network content domestically to NBCU), are recorded over time during the subscription term, and our consumer product licensing revenues are recorded over time during the licensing period. Other revenue streams identified in the table above are generally recognized at a point-in-time when the performance obligations are satisfied. Payment Terms and Other Our revenues do not include material amounts of variable consideration, other than the sale or usage-based royalties earned related to our consumer product licensing and certain other content rights contracts. Our payment terms vary by the type of products or services offered and may be subject to contractual payment terms, which may include advance payment requirements. The time between invoicing and when payment is due is not significant, generally within 30 to 60 days. We have elected the practical expedient to not adjust the total consideration within a contract to reflect a financing component when the duration of the financing is one year or less. Our contracts do not generally include a significant financing component. Our contracts with customers do not generally result in significant obligations associated with returns, refunds or warranties. Remaining Performance Obligations As of December 31, 2022, for contracts greater than one year, the aggregate amount of the transaction price allocated to remaining performance obligations is approximately $ 2,740,000 , comprised of our multi-year content distribution, consumer product licensing and sponsorship contracts. We will recognize fees related to our multi-year content distribution contracts as content is delivered to the distributors during the periods 2023 through 2028. 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 2023 through 2031. For our multi-year sponsorship arrangements, we will recognize sponsorship revenues as the sponsorship obligations are satisfied during the periods 2023 through 2028. The transaction prices 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. For transaction prices related to these future obligations that may contain material amounts of variable consideration related to quantities in a contract, we estimate the quantities each reporting period. 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. The Company does not have any material 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 revenues 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 revenues (i.e. contract liabilities) as of December 31, 2022 and 2021 were $ 79,750 and $ 74,661 , respectively, and are included within Deferred revenues and Other non-current liabilities on our Consolidated Balance Sheets. The net increase in the deferred revenue balance for the year ended December 31, 2022 of $ 5,089 is primarily driven by advances received in 2022, partially offset by revenue recognized in 2022 as a result of satisfying our performance obligations. Revenue recognized during the year ended December 31, 2022 and 2021 that was included in the respective deferred revenue balance at the beginning of each period was $ 68,756 and $ 60,922 , respectively. 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 on our Consolidated Statements of Operations. Capitalized commission fees of $ 525 and $ 625 at December 31, 2022 and 2021, respectively, relate primarily to incremental costs of obtaining our long-term content distribution arrangements and these costs are being amortized over the duration of the underlying content agreements on a straight-line basis to Marketing and selling expenses. During each of the years ended December 31, 2022, 2021 and 2020, the amount of amortization was $ 100 , and there was no impairment in relation to the costs capitalized. |
Investment Securities And Short
Investment Securities And Short-Term Investments | 12 Months Ended |
Dec. 31, 2022 | |
Investment Securities And Short-Term Investments [Abstract] | |
Investment Securities And Short-Term Investments | 5. Investment Securities and Short-Term Investments Investment Securities Included within Investment Securities are the following: As of December 31, 2022 2021 Nonmarketable equity investments without readily determinable fair values $ 11,797 $ 11,618 Total investment securities $ 11,797 $ 11,618 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. The following table summarizes the impairments and observable price change event adjustments recorded on our nonmarketable equity investments without readily determinable fair values for the periods presented: Year Ended December 31, 2022 2021 2020 Impairments (1) $ — $ — $ ( 2,715 ) Observable price change upward adjustments — — — Observable price change downward adjustments ( 16 ) — ( 29 ) Total income (loss) from adjustments to nonmarketable equity investments $ ( 16 ) $ — $ ( 2,744 ) (1) During the year ended December 31, 2020, the Company recorded an impairment charge on our investment in a themed attraction touring company for the excess of the carrying value over its estimated fair value resulting from significant adverse changes in the economic and market conditions caused by COVID-19. These charges are reflected in Other income (expense), net on our Consolidated Statements of Operations. Short-Term Investments Our short-term investments consist of available-for-sale debt securities which are measured at fair value and consist of the following: December 31, 2022 December 31, 2021 Gross Unrealized Gross Unrealized Amortized Fair Amortized Fair Cost Gain (Loss) Value Cost Gain (Loss) Value U.S. Treasury securities $ 94,287 $ — $ ( 1,095 ) $ 93,192 $ 90,278 $ — $ ( 57 ) $ 90,221 Corporate bonds 117,947 1 ( 1,435 ) 116,513 147,102 1 ( 269 ) 146,834 Government agency bonds 49,494 12 ( 724 ) 48,782 44,026 1 ( 125 ) 43,902 Total $ 261,728 $ 13 $ ( 3,254 ) $ 258,487 $ 281,406 $ 2 $ ( 451 ) $ 280,957 The Company evaluates its individual available-for-sale debt securities that are in an unrealized loss position each reporting period and determines 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 December 31, 2022 and 2021, the aggregate total amount of unrealized losses (that is, the amount by which amortized cost basis exceeds fair value) was insignificant. We did not record an allowance for credit losses on these securities. Accordingly, during the years ended December 31, 2022 and 2021, 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 on the Consolidated Statements of Comprehensive Income. Unrealized gains are also reflected, net of tax, as other comprehensive income (loss) on the Consolidated Statements of Comprehensive Income. Our U.S. Treasury securities, corporate bonds and government agency bonds are included in Short-term investments, net on our Consolidated Balance Sheets. Realized gains and losses on investments are included in earnings and are derived using the specific identification method for determining the cost of securities sold. As of December 31, 2022, contractual maturities of these securities are as follows: Maturities U.S. Treasury securities 1 month - 1 year Corporate bonds 1 month - 2 years Government agency bonds 4 months - 1 year During the years ended December 31, 2022, 2021 and 2020, we recognized $ 4,157 , $ 395 and $ 1,819 , respectively, of interest income on our short-term investments. Interest income is reflected as a component of Other income (expense), net on our Consolidated Statements of Operations. The following table summarizes the short-term investment activity: Year Ended December 31, 2022 2021 2020 Proceeds from sale of short-term investments $ — $ 27,911 $ 22,613 Proceeds from maturities and calls of short-term investments $ 263,789 $ 194,149 $ 159,703 Purchases of short-term investments $ 245,964 $ 374,502 $ 153,904 Gross realized (losses) gains on sale of short-term investments $ — $ ( 2 ) $ 64 |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Measurement [Abstract] | |
Fair Value Measurement | 6. Fair Value Measurement Fair value is determined based on the exchange price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. The accounting guidance establishes a three-level hierarchy that ranks the quality and reliability of information used in developing fair value estimates. The hierarchy gives the highest priority to quoted prices in active markets and the lowest priority to unobservable data. In cases where two or more levels of inputs are used to determine fair value, a financial instrument's level is determined based on the lowest level input that is considered significant to the fair value measurement in its entirety. The three levels of the fair value hierarchy are summarized as follows: Level 1- Observable inputs such as quoted prices in active markets for identical assets or liabilities; Level 2- Inputs other than quoted prices in active markets for similar assets and liabilities that are directly or indirectly observable; or Level 3- Unobservable inputs, such as discounted cash flow models or valuations, in which little or no market data exists. Certain financial instruments are carried at cost on the Consolidated Balance Sheets, which approximates fair value due to their short-term, highly liquid nature. The carrying amounts of cash and cash equivalents, money market accounts, accounts receivable and accounts payable approximate fair value because of the short-term nature of such instruments. We have classified our investments in U.S. Treasury securities, corporate bonds 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 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 and government agency bond investments. The Company did no t 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. For our equity investments without readily determinable fair values, 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. See Note 5, Investment Securities and Short-Term Investments , for details on impairments and observable pricing event adjustments related to our investment securities. 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. During the years ended December 31, 2022, 2021 and 2020, we recorded non-cash abandonment charges of $ 240 , $ 175 and $ 1,783 , respectively, to write off the carrying value of certain assets included within property and equipment that we deemed will no longer be used by the Company and had no further alternative use. These charges are included as a component of Operating expenses on our Consolidated Statements of Operations. Apart from these charges, the Company did no t record any other impairment charges on long lived property and equipment during the years ended December 31, 2022, 2021 and 2020. The Company classifies these assets as Level 3 within the fair value hierarchy due to significant unobservable inputs. During the year ended December 31, 2022, the Company did no t record any impairment charges related to content production assets. During the years ended December 31, 2021 and 2020, the Company recorded impairment charges of $ 313 and $ 3,171 on content production assets based upon fair value measurements of $ 528 , and $ 3,276 , respectively. See Note 9, Content Production Assets , for further discussion. The Company classifies these fair values as Level 3 within the fair value hierarchy due to significant unobservable inputs. The Company utilizes a discounted cash flows model to determine the fair value of content production assets where indicators of impairment exist. The fair value of the Company's debt, consisting of a mortgage loan assumed in connection with a building purchase, is estimated based upon quoted price estimates for similar debt arrangements. At December 31, 2022, the face amount of the mortgage loan approximates its fair value. The convertible debt is not marked to fair value at the end of each reporting period, but instead is reported at amortized cost. As of December 31, 2022, the fair value of the Company’s convertible debt was $ 605,494 based on external pricing data, including quoted market prices of these instruments among other factors, and was classified as a Level 2 measurement within the fair value hierarchy. As of December 31, 2021, the fair value of the debt component of the Company’s convertible debt was $ 210,076 . The calculation as of December 31, 2021 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. |
Property And Equipment
Property And Equipment | 12 Months Ended |
Dec. 31, 2022 | |
Property And Equipment [Abstract] | |
Property And Equipment | 7. Property and Equipment Property and equipment consist of the following: As of December 31, 2022 2021 Land, buildings and improvements $ 158,806 $ 154,826 Equipment 166,249 148,193 Corporate aircraft 32,249 32,249 Vehicles 993 993 Projects in progress 216,710 49,660 575,007 385,921 Less accumulated depreciation and amortization ( 245,866 ) ( 213,244 ) Total $ 329,141 $ 172,677 Depreciation expense for property and equipment totaled $ 35,807 , $ 38,609 and $ 38,411 for the years ended December 31, 2022, 2021 and 2020, respectively. The Company capitalizes interest during the construction period for significant long-term projects in progress. During the year ended December 31, 2022, the Company capitalized $ 4,051 of interest associated with its projects in progress. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases | 8. Leases Information about the Nature of WWE’s Lease Portfolio As of December 31, 2022, 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 headquarter 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 nine 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. As it relates to the Company’s new global headquarter lease, in November 2020 the landlord granted a rent deferral of $ 6,590 for a portion of the rental payments due during 2021. The rent deferral amount will be payable over a five year period from 2022 through 2026. The FASB has provided relief under ASC 842, “ Leases ,” related to the COVID-19 pandemic. Under this relief, companies can make an accounting policy election on how to treat lease concessions resulting directly from COVID-19, provided that the modified lease contract results in total cash flows that are substantially the same or less than the cash flows in the original lease contract. The Company has elected to account for the rent deferral resulting directly from COVID-19 as though the enforceable rights and obligations to the deferral existed in the original lease contract at lease inception, and will not account for the concession as a lease modification. In lieu of applying lease modification accounting, the Company will account for the rent deferral by accruing an accounts payable during the rent concession periods in 2021 and relieve the payable during 2022 through 2026 when the deferred rents are due. The amount of this deferral, including interest, was $ 5,566 as of December 31, 2022, with $ 4,277 included as a component of Other non-current liabilities and $ 1,289 included as a component of Accounts payable and accrued expenses on our Consolidated Balance Sheet. The amount of this deferral, including interest, was $ 6,793 as of December 31, 2021, with $ 5,567 included as a component of Other non-current liabilities and $ 1,226 included as a component of Accounts payable and accrued expenses on our Consolidated Balance Sheet. On October 26, 2021, the Company amended its Stamford headquarter lease to reduce the leased space by approximately 33,000 rentable square feet. The lease reduction will result in rental savings of approximately $ 31,000 over the remainder of the initial 15 -year base term. The lease amendment requires a partial termination fee of $ 3,875 to be paid through June 30, 2023. No other material changes were made to the existing lease terms. The lease amendment was accounted for as a lease modification, which resulted in upward remeasurements of the right-of-use asset and lease liability of $ 16,639 and $ 9,919 , respectively. As a result, the Company recognized a gain on the partial termination of $ 6,720 , which is included as a component of Other income (expense), net within our Statement of Operations for the year ended December 31, 2021. Additionally, as it relates to the Company’s new global headquarter lease, upon execution of the original lease agreement and subsequent amendments, the landlord granted a tenant improvement allowance of $ 38,051 to reimburse the Company for the costs of preparing the new headquarter space for the Company’s initial occupancy. This tenant improvement allowance is eligible to be applied against costs related to the completion, construction and installation, as well as architectural, engineering, cabling, furniture and equipment in connection with any and all alterations to the new headquarter space necessary for the Company to conduct its business. As of December 31, 2022, the Company has received reimbursement for $ 34,246 of this allowance, and has a remaining allowance of $ 3,805 , which is included as a component of Prepaid expenses and other current assets on our Consolidated Balance Sheet. Key Estimates and Judgments Key estimates and judgments made in applying the lease accounting rules include how the Company determines (i) the discount rate it uses to discount the unpaid lease payments to present value, (ii) lease term and (iii) lease payments. ASC 842 requires a lessee to discount its unpaid lease payments using the interest rate implicit in the lease or, if that rate cannot be readily determined, its incremental borrowing rate. Generally, the Company cannot readily determine the interest rate implicit in the lease and therefore uses the incremental borrowing rate for its leases. The incremental borrowing rate reflects the rate of interest that the Company would pay on a collateralized basis to borrow an amount equal to the lease payments under similar terms. The incremental borrowing rates were generally determined by estimating the appropriate collateralized borrowing rates to be used for our leases and considered certain factors, including the lease term, economic environment, and the assumed credit rating profile of the Company. The lease term for all of the Company’s lease arrangements include the noncancelable period of the lease plus, if applicable, any additional periods covered by an option to extend the lease that is reasonably certain to be exercised by the Company. Quantitative Disclosures Related to Leases The following table provides quantitative disclosure about the Company’s operating and financing leases for the periods presented: For the year ended December 31, 2022 2021 2020 Lease costs Finance lease costs: Amortization of right-of-use assets $ 18,863 $ 18,360 $ 20,172 Interest on lease liabilities 15,085 18,299 18,359 Operating lease costs 4,867 6,185 5,695 Other short-term and variable lease costs 2,234 1,805 1,678 Sublease income (1) ( 35 ) ( 69 ) ( 16 ) Total lease costs $ 41,014 $ 44,580 $ 45,888 Other information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from finance leases $ 15,086 $ 11,506 $ 1,244 Operating cash flows from operating leases $ 3,912 $ 5,548 $ 4,850 Finance cash flows from finance leases $ 14,051 $ 11,948 $ 10,795 Right-of-use assets obtained in exchange for new finance lease liabilities $ 22 $ 174 $ 40,212 Right-of-use assets obtained in exchange for new operating lease liabilities $ 13,227 $ 3,457 $ 2,518 As of December 31, 2022 2021 2020 Weighted-average remaining lease term - finance leases 26.4 years 27.0 years 28.8 years Weighted-average remaining lease term - operating leases 6.5 years 3.0 years 4.3 years Weighted-average discount rate - finance leases 4.0 % 4.0 % 4.8 % Weighted-average discount rate - operating leases 3.4 % 3.5 % 4.3 % (1) Sublease income excludes rental income from owned properties. Maturity of lease liabilities as of December 31, 2022 were as follows: Operating Finance Leases Leases 2023 $ 4,137 $ 26,328 2024 2,656 24,855 2025 2,500 21,711 2026 2,321 22,070 2027 2,218 19,512 Thereafter 5,023 519,000 Total lease payment 18,855 633,476 Less: imputed interest ( 2,106 ) ( 256,899 ) Total future minimum lease payments $ 16,749 $ 376,577 |
Content Production Assets, Net
Content Production Assets, Net | 12 Months Ended |
Dec. 31, 2022 | |
Content Production Assets, Net [Abstract] | |
Content Production Assets, Net | 9. Content Production Assets, Net See Note 2, Summary of Significant Accounting Policies – Content Production Assets, Net for information on our content production accounting policies. Content production assets consisted of the following: Predominantly Monetized Individually Predominantly Monetized as a Film Group As of December 31, As of December 31, 2022 2021 2022 2021 In release $ 3,090 $ 3,291 $ 7 $ 139 In production 13,122 9,581 289 627 In development 10 143 — — Total $ 16,222 $ 13,015 $ 296 $ 766 As of December 31, 2022, approximately 80 % of the “in release” content assets monetized individually are estimated to be amortized over the next three years. As of December 31, 2022, all of the “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: Year Ended December 31, 2022 2021 2020 Content production amortization expense - assets monetized individually $ 28,921 $ 13,720 $ 17,676 Content production amortization expense - assets monetized as a film group 3,934 5,316 5,333 Content production impairment charges (1) — 313 3,171 Content production development write-offs (2) 160 365 129 Total amortization and impairment of content production assets $ 33,015 $ 19,714 $ 26,309 (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 as part of 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. |
Accounts Payable And Accrued Ex
Accounts Payable And Accrued Expenses | 12 Months Ended |
Dec. 31, 2022 | |
Accounts Payable And Accrued Expenses [Abstract] | |
Accounts Payable And Accrued Expenses | 10. Accounts Payable and Accrued Expenses Accounts payable and accrued expenses consisted of the following: As of December 31, 2022 2021 Trade related $ 9,816 $ 11,150 Staff related (1) 13,828 15,558 Management incentive compensation 31,204 30,604 Talent related 6,274 4,428 Accrued WWE Network related expenses 3,331 10,950 Accrued event and television production 11,599 9,687 Accrued legal and professional (2) 14,980 7,706 Accrued purchases of property and equipment 18,567 22,207 Accrued income taxes (3) 1,415 — Accrued other 11,842 10,426 Total $ 122,856 $ 122,716 (1) Staff related as of December 31, 2022 includes $ 2,756 of severance costs associated with the investigation by the Special Committee of independent members of the Company’s Board of Directors. (2) Accrued legal and professional as of December 31, 2022 includes $ 1,992 of costs associated with the investigation by the Special Committee of independent members of the Company’s Board of Directors. Additionally, accrued legal and professional as of December 31, 2022 and 2021 include certain amounts of $ 9,125 and $ 2,200 , respectively, to be paid by the Company’s controlling stockholder (see Note 16 for further information). As disclosed in the 2021 Form 10-K/A, the Company determined that certain payments that Mr. McMahon, the Company’s then-Chief Executive Officer, who initially resigned from all positions held with the Company on July 22, 2022 but remains a stockholder with a controlling interest and, as of January 9, 2023 serves as Executive Chairman of the Board of Directors, agreed to make during the period of 2006 through 2022 (including amounts paid and payable in the future) were not appropriately recorded as expenses in the Company’s Consolidated Financial Statements. As a result, the previously reported Consolidated Balance Sheet of the Company as of December 31, 2021 was revised in the 2021 Form 10-K/A to correct these immaterial accounting errors by increasing the Company’s previously reported Accounts payable and accrued expenses by $ 2,200 . (3) At December 31, 2021, income taxes had a refundable balance of $ 7,156 and was included in Prepaid expenses and other current assets on our Consolidated Balance Sheets. Accrued other includes accruals for our international and licensing business activities, as well as other miscellaneous accruals, none of which categories individually exceeds 5 % of current liabilities. |
Convertible Debt
Convertible Debt | 12 Months Ended |
Dec. 31, 2022 | |
Convertible Debt [Abstract] | |
Convertible Debt | 11. Convertible Debt In December 2016 and January 2017, we issued $ 215,000 aggregate principal amount of 3.375 % convertible senior notes (the “Convertible Notes”). The Convertible Notes are due December 15, 2023 , unless earlier repurchased by us or converted. Interest is payable semi-annually in arrears on June 15 and December 15 of each year, beginning on June 15, 2017. The Convertible Notes are governed by an Indenture between us, as issuer, and U.S. Bank, National Association, as trustee. The Convertible Notes will be our general unsecured obligations and will rank senior in right of payment to any of our indebtedness that is expressly subordinated in right of payment to the Convertible Notes; equal in right of payment to any of our unsecured indebtedness that is not so subordinated; effectively junior in right of payment to any of our secured indebtedness to the extent of the value of the assets securing such indebtedness; and structurally junior to all indebtedness and other liabilities (including trade payables) of our subsidiaries. In the event of our bankruptcy, liquidation, reorganization or other winding up, our assets that secure secured debt will be available to pay obligations on the Convertible Notes only after all indebtedness under such secured debt has been repaid in full from such assets. Upon conversion of the Convertible Notes, we will pay or deliver, as the case may be, cash, shares of our Class A common stock or a combination of cash and shares of Class A common stock, at our election, at a conversion rate of approximately 40.1405 shares of common stock per $1 principal amount of the Convertible Notes, which corresponds to an initial conversion price of approximately $ 24.91 per share of Class A common stock. At any time, prior to the close on the business day immediately preceding June 15, 2023 , the Convertible Notes will be convertible under the following circumstances: a) During any calendar quarter beginning after the calendar quarter ending on December 31, 2016 (and only during such calendar quarter), if the last reported sale price of our Class A common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on the last trading day of the immediately preceding quarter is greater than or equal to 130 % of the conversion price on each applicable trading day; b) During the 5 business day period after any 10 consecutive trading day period (the “measurement period”) in which the trading price per $ 1 principal amount of Convertible Notes for each trading day of the measurement period was less than 98 % of the product of the last reported sale price of our Class A common stock and the conversion rate on each such trading day; c) Upon the occurrence of specified corporate events; or d) On or after June 15, 2023 until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert all or any portion of their Convertible Notes, in multiples of $1 principal amount, at the option of the holder regardless of the foregoing circumstances. Pursuant to item (a) noted above, the Convertible Notes have been convertible since April 1, 2018, and holders of the Convertible Notes have the right to convert their notes at any time through at least March 31, 2023. As of December 31, 2022, since the Convertible Notes mature on December 15, 2023 and are convertible at the option of the holders, the Convertible Notes are reflected within current liabilities on our Consolidated Balance Sheets. As of December 31, 2022, no actual conversions have occurred to date. See Note 3, Earnings Per Share , for a description of the dilutive nature of the Convertible Notes. In accounting for the issuance of the Convertible Notes, prior to the adoption of ASU 2020-06 on January 1, 2022, we allocated the gross proceeds of the Convertible Notes between the liability and equity components under the cash conversion feature model under prior accounting rules in US GAAP (ASC 470-20). The carrying amount of the liability component was calculated by measuring the fair value of a similar debt instrument without the associated convertible feature. The carrying amount of the equity component, representing the conversion option, was $ 36,657 and was determined by deducting the fair value of the liability component from the $ 215,000 par value of the Convertible Notes. The equity component was not re-measured as long as it continued to meet the conditions for equity classification. The excess of the principal amount of the liability component over its carrying amount (i.e., the debt discount) was amortized to interest expense using the effective interest method with an effective interest rate of 6.4 % per annum. Upon adoption of ASU 2020-06 on January 1, 2022, we reversed the separation of the debt and equity components and accounted for the Convertible Notes wholly as debt. We also reversed the amortization of the debt discount, with a cumulative effect adjustment to retained earnings (accumulated deficit) on the adoption date. Prior to the adoption of ASU 2020-06, debt issuance costs attributable to the liability component of $ 5,454 was being amortized to interest expense using the effective interest method and debt issuance costs attributable to the equity component of $ 1,110 were netted with the $ 36,657 equity component in stockholders’ equity. Upon adoption of ASU 2020-06 on January 1, 2022, we reversed the $ 1,110 of debt issuance costs attributable to the equity component and will account for the entire amount as debt issuance costs that will be amortized as interest expense using the effective interest method, with a cumulative effect adjustment to retained earnings (accumulated deficit) on the adoption date. Refer to Note 2, Summary of Significant Accounting Policies – Recent Accounting Pronouncements , for further information regarding the adoption of ASU 2020-06. The Convertible Notes consisted of the following components: As of December 31, 2022 2021 Debt component : Principal $ 215,000 $ 215,000 Less: Unamortized debt discount (1) — ( 11,968 ) Less: Unamortized debt issuance costs (2) ( 900 ) ( 1,939 ) Net carrying amount $ 214,100 $ 201,093 Equity component (3) $ — $ 35,547 (1) The debt discount associated with the Convertible Notes was derecognized upon adoption of ASU 2020-06 on January 1, 2022. (2) Unamortized debt issuance costs as of December 31, 2022 reflects the adoption impact from ASU 2020-06 described above. (3) The equity component of the Convertible Notes, net of deferred income taxes, was derecognized upon adoption of ASU 2020-06 on January 1, 2022. The following table sets forth total interest expense recognized related to the Convertible Notes: For the year ended December 31, 2022 2021 2020 3.375 % contractual coupon $ 7,256 $ 7,256 $ 7,256 Amortization of debt discount (1) — 5,557 5,213 Amortization of debt issuance costs 939 852 803 Interest expense $ 8,195 $ 13,665 $ 13,272 (1) The Company adopted ASU 2020-06 on January 1, 2022 using the modified retrospective method. Prior year reported amounts were not revised and are presented in accordance with accounting rules prior to the adoption of ASU 2020-06. 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 represented a premium of approximately 60.0 % over the last reported sale price of our Class A common stock of $ 19.93 on December 12, 2016 (initial issuance date of the Convertible Notes). The Warrants transactions have been accounted for as part of Additional paid-in capital. |
Long-Term Debt And Credit Facil
Long-Term Debt And Credit Facility | 12 Months Ended |
Dec. 31, 2022 | |
Long-Term Debt And Credit Facility [Abstract] | |
Long-Term Debt And Credit Facility | 12. Long-Term Debt and Credit Facility Long-Term Debt I ncluded within Long-Term Debt are the following: As of December 31, December 31, 2022 2021 Current portion of long-term debt : Mortgage $ 449 $ 430 Total current portion of long-term debt 449 430 Long-term debt : Mortgage $ 20,848 $ 21,284 Total long-term debt 20,848 21,284 Total $ 21,297 $ 21,714 Revolving Credit Facility In May 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 December 31, 2022, the LIBOR-based rate plus margin was 5.77 %, and the Company is required to pay a commitment fee calculated at a rate per annum of 0.15 % 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 December 31, 2022, the Company was in compliance with the terms of the Revolving Credit Facility and had available debt capacity under the Revolving Credit Facility of $ 200,000 . As of December 31, 2022 and 2021, there were no amounts outstanding under the Revolving Credit Facility. Mortgage In September 2016, the Company acquired real property and assumed future obligations under a loan agreement, dated June 8, 2015, in the principal amount of $ 23,000 , which loan is secured by a mortgage on the property. The loan bears interest at the rate of 4.50 % per annum and required monthly interest only payments of $ 86 until June 2018 and interest and principal payments of $ 117 per month thereafter, with a balloon payment 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. As of December 31, 2022, the scheduled principal repayments under our mortgage obligation for the remaining term of the mortgage are as follows: December 31, 2023 $ 449 December 31, 2024 470 December 31, 2025 20,378 $ 21,297 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Taxes [Abstract] | |
Income Taxes | 13. Income Taxes For the years ended December 31, 2022, 2021 and 2020, the effective tax rate was 26.0 %, 22.8 % and 23.0 %, respectively. The components of our tax provision are as follows: Year Ended December 31, 2022 2021 2020 Current taxes: Federal $ 61,587 $ 40,389 $ 9,386 State and local 16,684 7,985 8,843 Foreign 19,170 7,126 23,945 Deferred taxes: Federal ( 27,021 ) ( 2,499 ) ( 1,391 ) State and local ( 1,657 ) ( 528 ) ( 1,445 ) Foreign 30 ( 19 ) — Total income tax expense $ 68,793 $ 52,454 $ 39,338 Within the current foreign tax provision for the years ended December 31, 2022, 2021 and 2020 is $ 33,797 , $ 6,840 and $ 24,106 , respectively, of foreign withholding taxes paid on amounts received during the corresponding tax year. Components of income before income taxes are as follows: Year Ended December 31, 2022 2021 2020 United States $ 263,415 $ 228,578 $ 170,668 Foreign 966 1,284 441 Total income before income taxes $ 264,381 $ 229,862 $ 171,109 The following sets forth the difference between the provision for income taxes computed at the U.S. federal statutory income tax rate of 21 % and that reported for financial statement purposes: Year Ended December 31, 2022 2021 2020 Statutory U.S. federal tax $ 55,520 $ 48,271 $ 35,930 State and local taxes, net of federal tax benefit 10,199 5,890 5,061 Foreign rate differential ( 43 ) ( 5 ) 38 Nondeductible executive compensation 6,351 3,159 2,427 Unrecognized tax benefits 12 ( 56 ) ( 127 ) Meals and entertainment 3 2 119 Employee Stock Purchase Plan 161 122 53 Foreign-derived intangible income (FDII) ( 7,322 ) ( 5,628 ) ( 4,892 ) Withholding tax (non-creditable) 2,525 — — Global intangible low-taxed income (GILTI) 216 231 175 Excess tax benefits related to the vesting of share-based compensation ( 430 ) 524 388 Other 1,601 ( 56 ) 166 Provision for income taxes $ 68,793 $ 52,454 $ 39,338 The tax effects of temporary differences and net operating losses that give rise to significant portions of the deferred tax assets and deferred tax liabilities consisted of the following: As of December 31, 2022 2021 Deferred tax assets: Accounts receivable $ 1,163 $ 1,150 Inventory 211 384 Deferred income 8,460 7,815 Stock compensation 3,107 3,323 Net operating loss carryforward 1,050 1,118 Foreign tax credits 19,170 — Investments 1,444 121 Intangible assets 1,730 1,700 Capitalized content production costs 1,827 2,164 Accrued liabilities and reserves 1,840 1,737 Lease obligations 22,338 10,719 Federal benefit related to uncertain tax positions 19 23 Deferred tax assets, gross 62,359 30,254 Valuation allowance ( 1,050 ) ( 1,118 ) Deferred tax assets, net 61,309 29,136 Deferred tax liabilities: Property and equipment depreciation ( 10,948 ) ( 12,514 ) Right-of-use assets ( 3,695 ) ( 1,778 ) Investments ( 1,047 ) ( 1,744 ) Deferred tax liabilities ( 15,690 ) ( 16,036 ) Total deferred tax assets, net $ 45,619 $ 13,100 The temporary differences listed above represent differences between the tax basis of assets or liabilities and amounts reported in the consolidated financial statements that will result in taxable or deductible amounts in future years when the reported amounts of the assets or liabilities are recovered or settled. As of December 31, 2022 and 2021, we had $ 45,619 and $ 13,100 , respectively, of deferred tax assets, net, included on our Consolidated Balance Sheets. The increase in our net deferred tax asset balance was primarily driven by increased foreign tax credit carryforwards as a result of taxes being paid or withheld in foreign jurisdictions, coupled with a reduction in tax liabilities due to receipts of tenant improvement allowances. These foreign tax credits can be carried back one year, and if not utilized will expire in 2032. On August 16, 2022, the U.S. government enacted the Inflation Reduction Act (“The Act”). The Act introduced new provisions including a 15 % corporate alternative minimum tax for certain large corporations. The Company does not believe it will be subject to such tax in the near future. The Act also imposes a 1 % excise tax on certain stock repurchases made by publicly traded companies after December 31, 2022. The total taxable value of shares repurchased will be reduced by the fair market value of any newly issued shares during the taxable year. While additional guidance has not been issued, we are currently evaluating the applicability and the effect of the new law to our future cash flows and, based on our preliminary assessment, we do not expect a material impact on our Consolidated Financial Statements. The Company received tax deductions from the vesting of restricted stock units and performance stock units of $ 9,983 , $ 11,234 and $ 27,349 in 2022, 2021 and 2020, respectively. During the year ended December 31, 2022, we recognized $ 430 of excess tax benefits related to the Company’s share-based compensation awards at vesting. During the years ended December 31, 2021 and 2020, we recognized $ 524 and $ 388 of excess tax expenses, respectively, related to the Company’s share-based compensation awards at vesting. Income tax effects of vested awards are included within the provision for income taxes on the Consolidated Statements of Operations. The tax benefits and expenses recorded are driven by the change in the Company’s stock price between the original grant date of the awards and their subsequent vesting date. The corresponding offset of these tax benefits and expenses is included as a component of Prepaid expenses and other current assets on the Consolidated Balance Sheets. As of December 31, 2022 and 2021, we had valuation allowances of $ 1,050 and $ 1,118 , respectively, to reduce our deferred tax assets to an amount more likely than not to be recovered. This valuation allowance relates to foreign deferred tax assets on net operating losses in foreign jurisdictions where we have ceased operations. These net operating losses can be carried forward indefinitely. The Company considers all available evidence, both positive and negative, to determine whether, based on the weight of that evidence, a valuation allowance is required to reduce the net deferred tax assets to the amount that is more likely than not to be realized in future periods. The Company believes that based on past performance, expected future taxable income and prudent and feasible tax planning strategies, it is more likely than not that the net deferred tax assets will be realized. Changes in these factors may cause us to increase our valuation allowance on deferred tax assets, which would impact our income tax expense in the period we determine that these factors have changed. We are subject to periodic audits of our various tax returns by government agencies which could result in possible tax liabilities. Although the outcome of these matters cannot currently be determined, we believe the outcome of these audits will not have a material effect on our financial statements. Unrecognized Tax Benefits For the year ended December 31, 2022, we recognized $ 29 of previously unrecognized tax benefits. This primarily relates to the statute of limitations expiring in certain state and local jurisdictions. Included in the amount recognized was $ 39 of potential interest and penalties related to uncertain tax positions. For the year ended December 31, 2021, we recognized $ 70 of previously unrecognized tax benefits relating to the statute of limitations expiring in certain state and local jurisdictions. Included in the amount recognized was $ 34 of potential interest and penalties related to uncertain tax positions. The recognition of these amounts contributed to our effective tax rate of 26.0 % for the year ended December 31, 2022 as compared to 22.8 % for the year ended December 31, 2021. At December 31, 2022 and 2021, we had $ 86 and $ 68 of unrecognized tax benefits, respectively, which, if recognized, would affect our effective tax rate, and is classified in Other non-current liabilities. Unrecognized tax benefit activity is as follows: Year Ended December 31, 2022 2021 Beginning Balance- January 1 $ 68 $ 130 Increase to unrecognized tax benefits recorded for positions taken during the current year 10 8 Increase to unrecognized tax benefits recorded for positions taken during a prior period 37 — Decrease to unrecognized tax benefits resulting from a lapse of the applicable statute of limitations ( 29 ) ( 70 ) Ending Balance- December 31 $ 86 $ 68 As of December 31, 2022 and 2021, we had $ 25 of accrued interest and $ 14 of accrued penalties, and $ 23 of accrued interest and $ 11 of accrued penalties, respectively, related to uncertain tax positions classified in Other non-current liabilities. Based upon the expiration of statutes of limitations and possible settlements in several jurisdictions, we believe it is reasonably possible that the total amount of previously unrecognized tax benefits may decrease by $ 29 within 12 months after December 31, 2022. We file income tax returns in the United States and various state, local, and foreign jurisdictions. During 2022 and 2021, the Company settled audits with various taxing jurisdictions. We are generally subject to examination by the IRS for years ending on or after December 31, 2017. We are also subject to examination by various state and local jurisdictions for years ending on or after December 31, 2017. |
Content Production Incentives
Content Production Incentives | 12 Months Ended |
Dec. 31, 2022 | |
Content Production Incentives [Abstract] | |
Content Production Incentives | 14. 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. These programs primarily consist of nonrefundable tax credits issued by a jurisdiction on an annual basis for qualifying expenses incurred during the year in the production of certain entertainment content created in whole or in part within the jurisdiction. See Note 2, Summary of Significant Accounting Policies – Content Production Incentives for information on our accounting policies associated with these incentives. We recorded the following incentives during the years ended December 31, 2022, 2021 and 2020: Year Ended December 31, 2022 2021 2020 Television production incentives (1) $ 13,796 $ 13,845 $ 18,367 Feature film production incentives (2) — — — Infrastructure improvement incentives on qualifying capital projects (3) — 4,329 — Total $ 13,796 $ 18,174 $ 18,367 (1) Tax incentives earned with respect to expenditures on qualifying television and other production activities are recorded as an offset to production expenses within Operating expenses within our Consolidated Statements of Operations. (2) Tax incentives earned with respect to expenditures on qualifying film production activities are included as an offset to Content production assets, net within our Consolidated Balance Sheets. (3) Tax incentives earned with respect to expenditures on qualifying capital projects are included as an offset to Property and equipment, net within our Consolidated Balance Sheets. During the year ended December 31, 2021, $ 3,290 of the total incentive was recorded as a reduction in property and equipment, net with the remainder recorded as a reduction to depreciation expense . |
Commitments And Contingencies
Commitments And Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments And Contingencies [Abstract] | |
Commitments And Contingencies | 15. Commitments and Contingencies We have certain commitments, including various service contracts with certain vendors and various talent. Our future commitments related to our operating and finance leases are separately disclosed in Note 8, Leases . Future minimum payments as of December 31, 2022 under the agreements described above were as follows: Service Contracts and Talent Commitments 2023 $ 54,224 2024 26,603 2025 15,859 2026 10,645 2027 250 Thereafter 1,250 Total $ 108,831 Legal Proceedings On January 11, 2022, a complaint was filed against the Company by MLW Media LLC (“MLW”) entitled MLW Media LLC v. World Wrestling Entertainment, Inc. , No. 5:22-cv-00179-EJD (N.D. Cal.) alleging that the Company supposedly interfered with MLW’s contractual relationship with Tubi, a streaming service owned by Fox Corp., and MLW’s prospective economic advantage with respect to its relationship with VICE TV, and supposedly engaged in unfair business practices in violation of the Sherman Antitrust Act and California law. Such supposedly unfair business practices are alleged to include cutting off competitors’ access to viewers and licensing opportunities, interfering with contracts, poaching talent, eliminating price competition, and misappropriating and attempting to misappropriate confidential information of its competitors. On March 15, 2022, the Company moved to dismiss all claims asserted in the compliant and that motion is fully briefed and under consideration by the court. The Company believes that all claims in the lawsuit are without merit and intends to defend itself vigorously against them. As previously disclosed, a Special Committee of independent members of the Company’s Board of Directors (the “Special Committee”) was formed to investigate alleged misconduct by the Company’s then-Chief Executive Officer, Vincent K. McMahon. Mr. McMahon initially resigned from all positions held with the Company on July 22, 2022 but remains a stockholder with a controlling interest and, as of January 9, 2023 serves as Executive Chairman of the Board of Directors. Although t he Special Committee investigation is complete, the Company has received, and may receive in the future, regulatory, investigative and enforcement inquiries, subpoenas, demands and/or other claims and complaints arising from, related to, or in connection with these matters. On January 13, 2023, two purported stockholders of the Company, Carol Casale and Chrystal Lavalle, filed a derivative complaint in the Delaware Court of Chancery entitled Carol Casale v. Vincent K. McMahon , No. 2023-0039-JTL purportedly on behalf of the Company, against Mr. McMahon. The plaintiffs allege that Mr. McMahon breached his fiduciary duties by engaging in alleged misconduct (including the alleged misconduct investigated by the Special Committee), by purportedly failing to disclose that alleged misconduct to the Board of Directors and allegedly frustrating the Board’s investigation thereof, and by later re-appointing himself to the Board via written consent. The plaintiffs seek damages, declaratory relief, their costs and expenses, and other unspecified relief. In addition to the foregoing, from time to time we become a party to other lawsuits and claims. By its nature, the outcome of litigation is not known, but the Company does not currently expect this ordinary course litigation to have a material adverse effect on our financial condition, results of operations or liquidity. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 16. Related Party Transactions Vincent K. McMahon, who, as of January 9, 2023, serves as Executive Chairman of the Board of Directors, controls a substantial majority of the voting power of the issued and outstanding shares of our common stock (“Mr. McMahon”). Through the beneficial ownership of a substantial majority of our Class B common stock, Mr. McMahon can effectively exercise control over our affairs. On June 17, 2022, the Company and its Board of Directors announced that the Special Committee was formed to investigate alleged misconduct by Mr. McMahon and another executive, who is also no longer with the Company. The findings of the Special Committee investigation identified agreements executed by Mr. McMahon which were previously unknown to the Company. On July 25, 2022, the Company announced that it had determined that certain payments that Mr. McMahon agreed to make during the period from 2006 through 2022 (including amounts paid and payable in the future totaling $ 14,600 ), were not appropriately recorded as expenses in the Company’s Consolidated Financial Statements during the periods in which the expenses became probable and estimable. The Company subsequently identified two additional payments totaling $ 5,000 , unrelated to the alleged misconduct by Mr. McMahon that led to the Special Committee investigation, that Mr. McMahon made in 2007 and 2009 that were not appropriately recorded as expenses in the Company’s Consolidated Financial Statements during the periods in which the expenses became probable and estimable. Together, these previously unrecorded expenses total $ 19,600 (the “Previously Unrecorded Expenses”). In accordance with the SEC’s Staff Accounting Bulletin Topic 5T, Miscellaneous Accounting, Accounting for Expenses or Liabilities Paid by Principal Stockholders (“Topic 5T”), the Company concluded that the Previously Recorded Expenses should have been recognized by the Company as expenses in each of the periods in which they became probable and estimable. As disclosed in the Company’s 2021 Form 10-K/A and Form 10-Q/A filed August 16, 2022 for the three months ended March 31, 2022, the Company has revised its previously reported Consolidated Financial Statements to correct these immaterial accounting errors resulting from the Previously Unrecorded Expenses. All payments underlying the Previously Unrecorded Expenses were or will be paid by Mr. McMahon personally. The Special Committee investigation is complete and the Special Committee has been disbanded. Management is working with the Board of Directors to implement the recommendations of the Special Committee related to the investigation. Subsequent to our restatement for the Previously Unrecorded Expenses, the Company was informed of certain additional claims, which have been settled by Mr. McMahon. When the amounts became probable and estimable in the fourth quarter of 2022, including consideration of events that occurred subsequent to December 31, 2022, the Company recorded an additional $ 7,425 of expenses. Mr. McMahon has or will make all related payments personally. During the year ended December 31, 2021, the Company recorded $ 3,000 , the portion of the Previously Unrecorded Expenses that became probable and estimable during that period. These costs are included within General and administrative expenses on our Consolidated Statements of Operations. During the years ended December 31, 2022, 2021 and 2020, Mr. McMahon made payments of $ 2,200 , $ 1,200 and $ 1,200 , respectively, associated with the Previously Unrecorded Expenses. These payments are considered capital contributions and are included as a component of Stock issuances and other, net on our Consolidated Statements of Stockholders’ Equity. As of December 31, 2022 and 2021, total liabilities of $ 11,825 and $ 6,600 , respectively, were included on our Consolidated Balance Sheets related to the future payments owed under these agreements by Mr. McMahon. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2022 | |
Stockholders' Equity [Abstract] | |
Stockholders' Equity | 17. Stockholders’ Equity Stock Repurchase Program In February 2019, the Company’s Board of Directors authorized a stock repurchase program of up to $ 500,000 of our common stock. Repurchases may be made from time to time at management’s discretion subject to certain pre-approved parameters and in accordance with all applicable securities and other laws and regulations. The stock repurchase program does not obligate the Company to repurchase any minimum dollar amount or number of shares and may be modified, suspended or discontinued at any time. The Company suspended the stock repurchase program during the second quarter of 2022 and has not yet resumed the program. During the year ended December 31, 2022, and prior to the suspension of the program during the second quarter of 2022, the Company repurchased 694,857 shares of common stock in the open market at an average price of $ 57.57 for an aggregate amount of $ 40,006 . During the year ended December 31, 2021, the Company repurchased 3,251,313 shares of common stock in the open market at an average price of $ 50.94 for an aggregate amount of $ 165,630 . The Company did no t repurchase any shares of common stock in the open market during the year ended December 31, 2020. All share repurchases have been retired. As of December 31, 2022, $ 210,924 of common stock remained under the original stock repurchase program authorization. Class B Convertible Common Stock Our Class B common stock is fully convertible into Class A common stock, on a one for one basis, at any time at the option of the holder. The two classes are entitled to equal per share dividends and distributions and vote together as a class with each share of Class B entitled to ten votes and each share of Class A entitled to one vote, except when separate class voting is required by applicable law. If, at any time, any shares of Class B common stock are beneficially owned by any person other than Vincent McMahon, Linda McMahon, any descendant of either of them, any entity which is wholly owned and is controlled by any combination of such persons or any trust, all the beneficiaries of which are any combination of such persons, each of those shares will automatically convert into shares of Class A common stock. Through his beneficial ownership of a substantial majority of our Class B common stock, our controlling stockholder, Vincent McMahon, can effectively exercise control over our affairs, and his interests could conflict with the holders of our Class A common stock. Dividends We declared and paid quarterly dividends of $ 0.12 per share, totaling $ 35,689 , $ 36,413 , and $ 37,249 on all Class A and Class B shares for the years ended December 31, 2022, 2021 and 2020, respectively. Stock issuances and other, net During the years ended December 31, 2022, 2021 and 2020, Stock issuances and other, net in our Consolidated Statements of Stockholders’ Equity include non-cash capital contributions of $ 2,700 , $ 1,200 and $ 1,200 , respectively, from our controlling stockholder. These non-cash capital contributions represent amounts paid personally by Mr. McMahon, our controlling stockholder, to certain counterparties. See Note 16, Related Parties , for additional information. Included in the amount of non-cash capital contributions for the year ended December 31, 2022 is an immaterial out-of-period correction of previously omitted non-cash capital contributions that were identified during the second quarter of 2022. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2022 | |
Stock-Based Compensation [Abstract] | |
Stock-Based Compensation | 18. 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 and Human Capital Committee of the Board of Directors. Awards may be granted as incentives and rewards to encourage officers, employees, consultants, advisors and independent contractors of the Company and its affiliates and to non-employee directors of the Company to participate in our long-term success. As of December 31, 2022, there were approximately 2.9 million shares available for future grants under the 2016 Plan. It is our policy to issue new shares to satisfy option exercises and the vesting of RSUs, PSUs and PSU-TSRs. Stock-based compensation costs related to RSUs, PSUs and PSU-TSRs totaled $ 33,166 , $ 17,503 and $ 26,737 for the years ended December 31, 2022, 2021 and 2020, respectively. Restricted Stock Units The Company grants RSUs to officers and employees under the 2016 Plan. Stock-based compensation costs associated with our RSUs are determined using the fair market value of the Company's common stock on the date of the grant. These costs are recognized over the requisite service period using the graded vesting method, net of estimated forfeitures. RSUs have a service requirement typically over a 3.5 year vesting schedule and vest in equal annual installments. We estimate forfeitures based on historical trends when recognizing compensation expense and adjust the estimates 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 second quarter of 2022, the Compensation and Human Capital Committee approved the grant of RSUs to an executive management member for an aggregate value of $ 10,000 . This award varies from the typical RSU grant in that the award vests in five annual tranches of 20 %. The units associated with these awards are included in the table below. The following tables summarize the RSU activity for the year ended December 31, 2022: Units Weighted- Average Grant-Date Fair Value Unvested at January 1, 2022 300,003 $ 55.03 Granted 367,887 $ 55.38 Vested ( 143,532 ) $ 57.45 Forfeited ( 60,247 ) $ 53.00 Dividend equivalents 3,687 $ 54.54 Unvested at December 31, 2022 467,798 $ 54.76 Year Ended December 31, 2022 2021 2020 Tax benefits realized $ 5,561 $ 6,310 $ 14,319 Weighted-average grant-date fair value of RSUs granted 20,373 15,061 16,106 Fair value of RSUs vested 8,245 7,101 13,434 As of December 31, 2022, total unrecognized stock-based compensation expense related to unvested RSUs net of estimated forfeitures was $ 14,777 before income taxes and is expected to be recognized over a weighted-average period of approximately 1.9 years. Performance Stock Units The Company grants PSUs to officers and employees under the 2016 Plan. Stock-based compensation costs associated with our PSUs are initially determined using the fair market value of the Company's common stock on the date the awards are approved by our Compensation and Human Capital Committee (service inception date). The vesting of these PSUs is 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 estimates 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. During the third quarter of 2022, the Compensation and Human Capital Committee approved the grant of PSUs to certain executives for an aggregate value of $ 18,000 . These awards were granted in October 2022 and vary from the typical PSU grants in that the awards have performance conditions tied to results through September 2025. These awards will vest in 2025 and are accounted for as equity awards since the target shares were known at inception. The units associated with these awards are included in the table below. During the third quarter of 2020, the Compensation and Human Capital Committee approved an agreement to grant PSUs to an executive management member for an aggregate value of $ 15,000 . During the first quarter of 2022, this agreement was amended to increase the aggregate value to $ 22,500 . The award vests in two tranches of 27 %, and 73 %, during the years 2022 and 2025, respectively. The first award tranche of $ 6,000 has performance conditions tied to results through September 2022, and the second award of $ 16,500 has performance conditions tied to results through September 2025. The Company began expensing the second award of $ 16,500 concurrent with the first award beginning on the service inception date in August 2020. The Company accounted for the first award, which vested in November 2022, as an equity award since the target shares were known at inception. The second award was initially classified as a liability award until it was reclassified as an equity award in November 2022 when the number of shares was determined upon settlement of the first award. As of September 30, 2022 and December 31, 2021, the liability portion of the award was $ 6,928 and $ 2,466 , respectively, which was included in Other non-current liabilities on the Consolidated Balance Sheet. Following the reclassification of the award as an equity award in November 2022, this amount is now included as a component of Additional paid-in capital on the Consolidated Balance Sheet as of December 31, 2022. The units associated with these awards are included in the table below. The following tables summarize the PSU activity for the year ended December 31, 2022: Units Weighted- Average Grant-Date Fair Value Unvested at January 1, 2022 433,267 $ 50.14 Granted 1,077,784 $ 68.52 Achievement adjustment ( 21,875 ) $ 64.40 Vested ( 172,961 ) $ 53.76 Forfeited ( 303,232 ) $ 66.99 Dividend equivalents 2,102 $ 49.00 Unvested at December 31, 2022 1,015,085 $ 65.04 Year Ended December 31, 2022 2021 2020 Tax benefits realized $ 4,422 $ 4,824 $ 13,030 Weighted-average grant-date fair value of PSUs granted 73,850 15,035 19,592 Fair value of PSUs vested 9,298 13,021 20,830 During the year ended December 31, 2021, we granted 304,726 PSUs, which were subject to performance conditions related to the 2021 fiscal year. During the first quarter of 2022, it was determined that the performance conditions related to these PSUs were exceeded, which resulted in an achievement adjustment increase of 83,250 PSUs in 2022 relating to the initial 2021 PSU grant. During the year ended December 31, 2020, we granted 133,069 PSUs, which were subject to certain performance conditions tied to results through September 2022. During the fourth quarter of 2022, it was determined that the performance conditions related to these PSUs were partially met, which resulted in an achievement adjustment decrease of 105,125 PSUs in 2022 relating to the initial 2020 PSU grant. As of December 31, 2022, total unrecognized stock-based compensation expense related to unvested PSUs, net of estimated forfeitures, was $ 45,048 before income taxes, and is expected to be recognized over a weighted-average period of approximately 2.4 years. Performance Stock Units with a Market Condition Tied to Relative Total Shareholder Return In March 2018, the Compensation and Human Capital Committee approved certain agreements to grant PSU-TSRs with a market condition where vesting is conditioned upon the total shareholder return performance of the Company’s stock relative to the performance of a peer group over five distinct performance periods from 2018 through 2024. The five distinct performance periods end in March from 2020 to 2024, with the awards from 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 tables summarize the PSU-TSR activity for the year ended December 31, 2022: Units Weighted- Average Grant-Date Fair Value Unvested at January 1, 2022 47,736 $ 47.28 Granted — $ — Achievement adjustment 10,229 $ 47.30 Vested ( 23,912 ) $ 47.45 Forfeited — $ — Dividend equivalents 45 $ 47.30 Unvested at December 31, 2022 34,098 $ 47.30 Year Ended December 31, 2022 2021 2020 Tax benefits realized $ — $ — — Weighted-average grant-date fair value of PSU-TSRs granted — — — Fair value of PSU-TSRs vested 1,135 732 830 During the first quarter of 2022, it was determined that the percentile ranking of WWE’s total shareholder return performance related to the third performance period associated with these PSU-TSRs was met, which resulted in an achievement adjustment increase of 10,229 PSU-TSRs in 2022 relating to the initial 2018 PSU-TSR grant. As of December 31, 2022, total unrecognized stock-based compensation expense related to unvested PSU-TSRs, net of estimated forfeitures, was $ 308 before income taxes, and is expected to be recognized over a weighted-average period of approximately 1.3 years. Employee Stock Purchase Plan We provide a stock purchase plan for our employees. Under the plan, all eligible regular full-time employees may contribute up to 10 % of their base compensation (subject to certain dollar limits) to the semi-annual purchase of shares of our common stock. The purchase price is 85 % of the fair market value at certain plan-defined dates. As this plan is defined as compensatory, a charge is recorded to General and administrative expenses for the difference between the fair market value and the discounted price. During 2022, 2021 and 2020, employees purchased 56,706 , 59,685 and 57,020 shares of our common stock which resulted in an expense of $ 925 , $ 598 , and $ 473 , respectively. As of December 31, 2022, approximately 1.3 million shares of the Company's common stock are available for issuance under the 2012 Employee Stock Purchase Plan. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2022 | |
Employee Benefit Plans [Abstract] | |
Employee Benefit Plans | 19. Employee Benefit Plans We sponsor a 401(k) defined contribution plan covering substantially all employees. Under this plan, participants are allowed to make contributions based on a percentage of their salary, subject to a statutorily prescribed annual limit. We make matching contributions of 50 % of each participant’s contributions, up to 6 % of eligible compensation. We may also make additional discretionary contributions to the 401(k) plan. Our expense for matching contributions to the 401(k) plan was $ 3,130 , $ 3,119 and $ 2,968 for the years ended December 31, 2022, 2021 and 2020, respectively. The Company did no t make any discretionary contributions for the years ended December 31, 2022, 2021 or 2020. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2022 | |
Segment Information [Abstract] | |
Segment Information | 20. 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, our Chief Executive Officer, manages the business, evaluates financial results, and makes key operating decisions. Unallocated corporate general and administrative expenses largely relate to corporate functions such as finance, investor relations, community relations, corporate communications, information technology, legal, facilities, human resources and our Board of Directors . These unallocated corporate general and administrative expenses will be shown, as applicable, as a reconciling item in tables where segment and consolidated results are both shown. 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 items that management deems would impact the comparability of results between periods. Adjusted OIBDA includes depreciation and amortization expenses directly related to supporting the operations of our segments, including content production asset amortization, depreciation and amortization of costs related to content delivery and technology assets utilized for 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: Year Ended December 31, 2022 2021 2020 Net revenues: Media $ 1,033,877 $ 936,212 $ 868,216 Live Events 123,083 57,803 19,921 Consumer Products 134,563 101,159 86,070 Total net revenues $ 1,291,523 $ 1,095,174 $ 974,207 Depreciation and amortization: Media $ 14,766 $ 13,427 $ 15,119 Live Events 41 43 23 Consumer Products 245 178 8 Corporate 22,235 27,253 27,466 Total depreciation and amortization $ 37,287 $ 40,901 $ 42,616 Adjusted OIBDA: Media $ 428,695 $ 390,506 $ 367,818 Live Events 27,163 7,652 ( 17,655 ) Consumer Products 56,643 35,530 26,638 Corporate ( 127,921 ) ( 109,577 ) ( 90,613 ) Total Adjusted OIBDA $ 384,580 $ 324,111 $ 286,188 Reconciliation of Total Operating Income to Total Adjusted OIBDA Year Ended December 31, 2022 2021 2020 Total operating income $ 283,225 $ 256,017 $ 208,544 Depreciation and amortization 37,287 40,901 42,616 Stock-based compensation 34,944 19,086 27,989 Other adjustments (1) 29,124 8,107 7,039 Total Adjusted OIBDA $ 384,580 $ 324,111 $ 286,188 (1) Other adjustments for the year ended December 31, 2022 include $ 21,699 of professional fees and severance expenses associated with the investigation by the Special Committee of independent members of the Company’s Board of Directors, as well as $ 7,425 of expenses related to certain payments to be made by the Company’s controlling stockholder. Other adjustments for the year ended December 31, 2021 include severance expenses primarily associated with the combination of WWE’s television, digital and studios teams into one organization. Other adjustments for the year ended December 31, 2020 include severance expenses associated with a reduction in our workforce as a result of COVID-19. Geographic Information Net revenues by major geographic region are based upon the geographic location of where our content is distributed. The information below summarizes net revenues to unaffiliated customers by geographic area: Year Ended December 31, 2022 2021 2020 North America $ 1,000,381 $ 873,686 $ 764,938 Europe/Middle East/Africa 216,646 147,978 135,876 Asia Pacific 62,089 61,852 62,327 Latin America 12,407 11,658 11,066 Total net revenues $ 1,291,523 $ 1,095,174 $ 974,207 The Company's property and equipment was almost entirely located in the United States at December 31, 2022 and 2021. During the year ended December 31, 2022, there were three customers with revenues individually in excess of 10% of total consolidated net revenues. Net revenues for these customers were approximately $ 455,000 , $ 205,000 and $ 110,000 in 2022. During the years ended December 31, 2021 and 2020, there were two customers with revenues individually in excess of 10% of total consolidated net revenues. Net revenues for these customers were approximately $ 412,000 and $ 200,000 in 2021, and approximately $ 270,000 and $ 183,000 in 2020. These revenues are primarily reflected in our Media segment. |
Concentration Of Credit Risk
Concentration Of Credit Risk | 12 Months Ended |
Dec. 31, 2022 | |
Concentration Of Credit Risk [Abstract] | |
Concentration Of Credit Risk | 21. 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 WWE Network, television, and premium live event 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 December 31, 2022, our largest receivable balance from customers was 19 % of our gross accounts receivable. At December 31, 2021, our two largest receivable balances from customers were 38 % and 26 % of our gross accounts receivable. No other customers individually exceeded 10% of our gross accounts receivable balance. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | 22. Subsequent Events On January 5, 2023, Vincent K. McMahon, our controlling stockholder, executed and delivered a written consent taking certain actions by consent without a stockholder meeting in accordance with Delaware law resulting in, among other things, the election of Mr. McMahon, Michelle D. Wilson and George A. Barrios to the Board of Directors and certain amendments to the Company’s bylaws (the “January 5th Amendments”). On January 6, 2023, the Company announced that Ignace Lahoud and Man Jit Singh resigned from the Board of Directors, effective January 6, 2023. On January 9, 2023, the Board of Directors elected Mr. McMahon as Executive Chairman of the Board of Directors. On January 10, 2023, Stephanie McMahon informed the Company that she has resigned from her role as Co-CEO and as a member of the Board of Directors. As a result of Ms. McMahon’s resignation, Nick Khan assumed the role of sole Chief Executive Officer of the Company. Mr. Khan also remains a member of the Board of Directors. Mr. McMahon subsequently informed the Company of his view that there was substantial alignment among the Board of Directors and management concerning the decision to conduct a review of strategic alternatives amid the Company’s upcoming media rights cycle. In light of the foregoing, on January 16, 2023, Mr. McMahon, in his capacity as controlling stockholder of the Company, executed and delivered a written consent taking certain actions by consent without a stockholder meeting in accordance with Delaware law to substantially repeal the January 5th Amendments other than the provision relating to exclusive forum for certain shareholder lawsuits. On January 6, 2023, the Company announced that its management and Board of Directors are engaged in a review of strategic alternatives to maximize value for all WWE stockholders and other stakeholders. The Company is actively working with its outside financial and legal advisors in this strategic review process. There can be no assurances given regarding the outcome or timing of the strategic alternatives review process. |
Valuation And Qualifying Accoun
Valuation And Qualifying Accounts | 12 Months Ended |
Dec. 31, 2022 | |
Valuation And Qualifying Accounts [Abstract] | |
Valuation And Qualifying Accounts | W ORLD WRESTLING ENTERTAINMENT, INC. SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS (in thousands) Charges to Balance at Expense/ Beginning Against Deductions/ Balance at Description of Year Revenues Adjustments * End of Year For the Year Ended December 31, 2022 Allowance for credit losses $ 4,841 $ 343 $ ( 331 ) $ 4,853 Home video allowance for returns 307 — ( 110 ) 197 Allowance for WWE Network refunds and chargebacks 7 46 ( 48 ) 5 For the Year Ended December 31, 2021 Allowance for credit losses $ 3,660 $ 1,260 $ ( 79 ) $ 4,841 Home video allowance for returns 350 — ( 43 ) 307 Allowance for WWE Network refunds and chargebacks 40 158 ( 191 ) 7 For the Year Ended December 31, 2020 Allowance for credit losses $ 419 $ 3,572 $ ( 331 ) $ 3,660 Home video allowance for returns 349 — 1 350 Allowance for WWE Network refunds and chargebacks 50 452 ( 462 ) 40 * Includes deductions which are comprised primarily of write-offs of specific bad debts and returns of products, as well as certain adjustments to the allowance account, including reserves for amounts due from customers that have not been recognized as revenue. |
Summary Of Significant Accoun_2
Summary Of Significant Accounting Policies (Policy) | 12 Months Ended |
Dec. 31, 2022 | |
Summary Of Significant Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates — The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires our management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. |
Basis of Consolidation | Basis of Consolidation — The Consolidated Financial Statements include the accounts of WWE and all of its domestic and foreign subsidiaries. Included in Corporate are intersegment eliminations recorded in consolidation. All intercompany accounts and transactions have been eliminated in consolidation. |
Cash and Cash Equivalents | Cash and Cash Equivalents — Cash and cash equivalents include cash on deposit in overnight deposit accounts, investments in Treasury bills and investments in money market accounts with original maturities of three months or less at the time of purchase. |
Short-term Investments, Net | Short-term Investments, Net — Our short-term investments consist of U.S. Treasury securities, corporate bonds and government agency bonds. We classify and account for these debt securities as available-for-sale debt securities and carry these securities at fair value. We report the unrealized gains and losses, net of tax, as other comprehensive income (loss) in stockholders’ equity, with the exception, if applicable, of unrealized losses due to loss of credit worthiness or unrealized gains due to recovery of credit worthiness, which are recorded to other income, net on the Consolidated Statements of Operations. Realized gains and losses on investments are included in earnings and are derived using the specific identification method for determining the cost of securities sold. |
Accounts Receivable, Net | Accounts Receivable, Net — Accounts receivable relate principally to amounts due to us from distributors of our content, as well as from licensees that produce consumer products containing our intellectual property and/or trademarks. We estimate the collectability of our receivables and establish allowances for the amount of accounts receivable that we estimate to be uncollectible. We base these allowances on our historical collection experience, the length of time our accounts receivable are outstanding, the financial condition of individual customers and current economic conditions that may affect a customer’s ability to pay. An individual balance is charged to the allowance when all collection efforts have been exhausted and it is deemed likely to be uncollectible, taking into consideration the financial condition of the customer and other factors. |
Inventory | Inventory — As of December 31, 2022, our inventory primarily consists of merchandise sold at live events. As of December 31, 2021, our inventory consisted of merchandise sold on our websites and on distribution platforms, including Amazon, and merchandise sold at live events. Substantially all of our inventory is comprised of finished goods. Inventory is stated at the lower of cost or net realizable value. The valuation of our inventories requires management to make market estimates assessing the quantities and the prices at which we believe the inventory can be sold. |
Property and Equipment, Net | Property and Equipment, Net — Property and equipment are carried at historical cost net of benefits associated with tax incentives less accumulated depreciation and amortization. Depreciation and amortization is computed on a straight-line basis over the estimated useful lives of the assets or, when applicable, the life of the lease, whichever is shorter. Vehicles and equipment are depreciated based on estimated useful lives varying from three years to five years . Buildings and related improvements are depreciated based on estimated useful lives varying from five years to thirty-nine years . Our corporate aircraft is depreciated over ten years on a straight-line basis less an estimated residual value. |
Leases | Leases — The Company determines if a contract contains a lease at the inception of the arrangement. The Company has elected the short-term lease exemption, whereby leases with initial terms of one year or less are not capitalized and instead expensed generally on a straight-line basis over the lease term. The depreciable life of the underlying leased assets are generally limited to the expected lease term inclusive of any optional lease terms where we conclude at the inception of the lease that we are reasonably certain of exercising those renewal options. The Company also elected to not separate lease components from non-lease components across all lease categories. Instead, each separate lease component and non-lease component are accounted for as a single lease component. The Company is primarily a lessee with a lease portfolio comprised mainly of real estate and equipment leases. Operating and finance lease assets are included on our Consolidated Balance Sheets in non-current assets as an operating or finance right-of-use asset. Operating and finance lease liabilities are included on our Consolidated Balance Sheets in non-current liabilities for the portion that is due on a long-term basis and in current liabilities for portion that is due within 12 months of the financial statement date. The right-of-use assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Right-of-use assets and lease liabilities are recognized at the commencement date of the lease based on the present value of lease payments over the lease term using an appropriate discount rate. Since the implicit rate is not readily available for our leases, we use our incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. The right-of-use asset also may include any initial direct costs paid and is reduced by any lease incentives provided by the lessor. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for fixed lease payments is recognized on a straight-line basis over the lease term for our operating leases and for our finance leases, we record interest expense on the lease liability and straight-line amortization of the right-of-use asset over the lease term. Lease expense for variable lease payments is recognized as incurred. |
Content Production Assets, Net | Content Production Assets, Net — The Company is primarily a content producer with content production assets consisting of non-live event episodic television series, feature films and original programming content for WWE Network. The non-live event episodic television series are predominantly monetized on their own through individual television distribution arrangements. 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 original WWE Network programming content are predominantly monetized as a film group through the collection of licensing fees from distribution partners or through the collection of monthly subscription fees from 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 non-live event episodic television series are expensed upon delivery of the completed programming content to the individual television distributors. 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. Our programming content distributed on the WWE Network is expensed based upon delivery to distribution partners or based on viewership consumption patterns if on the subscription-based WWE Network. 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. |
Valuation of Long-Lived Assets | Valuation of Long-Lived Assets — We periodically evaluate the carrying amount of long-lived assets for impairment when events and circumstances warrant such a review. |
Investment Securities | Investment Securities — Equity investments that are marketable and have a readily determinable fair value are carried at fair value with changes in the fair value recorded through income and reflected in Other income (expense), net on the Consolidated Statements of Operations. For nonmarketable equity securities (those without a readily determinable fair value), the Company elected to apply the practicality exception to apply fair value measurement, under which such securities will be measured at cost, less impairment, plus or minus observable price changes for identical or similar securities of the same issuer with such changes recorded in Other income, net on the Consolidated Statements of Operations. For equity investments where the Company does not control the investee, and where it is not the primary beneficiary of a variable interest entity but can exert significant influence over the financial and operating policies of the investee, the Company applies the equity method of accounting. Under the equity method of accounting, the Company’s share of the investee’s underlying net income or loss is recorded as investment income or loss within Other income, net on the Consolidated Statements of Operations, and is also included, net of cash dividends received, in Equity in earnings of affiliate, net of dividends received, on the Consolidated Statements of Cash Flows. Dividend distributions received from the investee reduces the Company’s carrying value of the investee and the cost basis if deemed a return of capital. Nonmarketable equity securities and equity method investments are also subject to periodic impairment evaluations, and when factors indicate that a significant decrease in value has occurred. Factors considered in making such assessments may include near-term prospects of the investees, subsequent rounds of financing activities of the investees, and the investees’ capital structure as well as other economic variables, which reflect assumptions market participants may use in pricing these assets. If an equity method investment is deemed to have experienced an other-than-temporary decline below its carrying amount, we reduce the carrying amount of the equity method investment to its quoted or estimated fair value, as applicable, and establish a new carrying amount for the investment. For nonmarketable equity securities that are accounted for under the measurement alternative to fair value, the Company applies the impairment model that does not require the Company to consider whether the impairment is other-than-temporary. We record these impairment charges on our equity investments in Other income, net on the Consolidated Statements of Operations. |
Income Taxes | Income Taxes — Deferred tax liabilities and assets are recognized for the expected future tax consequences of events that have been reflected in the Consolidated Financial Statements. Amounts are determined based on the differences between the book and tax bases of particular assets and liabilities and operating loss carry forwards, using tax rates in effect for the years in which the differences are expected to reverse. A valuation allowance is provided to offset deferred tax assets if, based upon the available evidence, it is more-likely-than-not that some or all of the deferred tax assets will not be realized. In evaluating our ability to recover our deferred tax assets within the jurisdiction from which they arise, we consider all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax-planning strategies, and results of recent operations. If we determine that we would be able to realize our deferred tax assets in the future in excess of their net recorded amount, we would make an adjustment to the deferred tax asset valuation allowance, which would reduce the provision for income taxes. Conversely, if we determine we might not be able to realize our deferred tax assets, we would record a valuation allowance which would result in a charge to the provision for income taxes. We use a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate tax positions taken or expected to be taken in a tax return by assessing whether they are more likely than not sustainable, based solely on their technical merits, upon examination, and including resolution of any related appeals or litigation process. The second step is to measure the associated tax benefit of each position, as the largest amount that we believe is more likely than not realizable. Differences between the amount of tax benefits taken or expected to be taken in our income tax returns and the amount of tax benefits recognized in our financial statements represent our unrecognized income tax benefits, which we record as a liability. Our policy is to include interest and penalties related to unrecognized income tax benefits as a component of income tax expense. |
Revenue Recognition | Revenue Recognition — Revenues are generally recognized when control of the promised goods or services is transferred to our customers, either at a point in time or over time, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. Most of our contracts have one performance obligation and all consideration is allocated to that performance obligation. In contracts that have multiple performance obligations, we allocate the transaction price to each identified performance obligation based upon their relative standalone selling price. The standalone selling prices are determined using observable standalone selling prices when available as well as estimates of standalone selling prices using adjusted market assessment and expected cost plus margin approaches to estimate the price for individual components. Variable consideration can result from variability in price or quantity, or both. The components of our transaction price generally do not include material amounts of variable consideration. The variable consideration related to the transaction price contained in our contracts relates 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. In contracts that include a minimum guarantee, we recognize revenue over time when we estimate that the minimum guarantee will not be exceeded through the associated sales or usage-based royalties. For transaction prices related to these future obligations that may contain material amounts of variable consideration related to quantities in a contract, we estimate the quantities each reporting period. 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, including our weekly flagship programs as well as premium live event and original programming, (ii) subscriptions to WWE Network, (iii) advertising and sponsorship sales, (iv) live event ticket sales, (v) consumer product licensing royalties from the sale by third-party licensees of WWE branded merchandise, (vi) direct-to-consumer sales of merchandise at our live event venues, and (vii) sales of our merchandise through eCommerce platforms. The below describes our revenue recognition policies in further detail for each major revenue source of the Company. Content rights fees: Rights fees received from distributors of our content, including our weekly flagship programs, Raw and SmackDown , as well as premium live event and original programming, both domestically and internationally, are recorded when the content (functional intellectual property) has been delivered and control has been transferred to the distributor and the license period has begun. Any advance payments received from the distributors are deferred upon collection and recognized into revenue as content is delivered. Our content rights distribution agreements are generally between one year and five years in length and frequently provide for contractual increases over their terms. WWE Network Subscriptions: Revenues from the sale of subscriptions to WWE Network are recognized ratably over each paid monthly membership period. Deferred revenues consist of subscription fees billed to members that have not been recognized and gift memberships that have not been redeemed. Advertising and sponsorships: Through our sponsorship packages, we offer advertisers a full range of our promotional vehicles, including online and print advertising, on-air announcements and special appearances by our Superstars. We allocate the transaction price to all performance obligations contained within a sponsorship and advertising arrangement based upon their relative standalone selling price. Standalone selling prices are determined generally based on a rate card used to determine pricing for individual components. Revenues are recognized as each performance obligation is satisfied, which generally occurs when the sponsorship and advertising is aired, exhibited, performed or played on the applicable WWE platform. We are generally the principal in our advertising and sponsorship arrangements because we control the advertising and sponsorship inventory before it is transferred to our customers. Our control is evidenced by our sole ability to monetize the advertising and sponsorship inventory and being primarily responsible to our customers. Live event ticket sales: Revenues from our live event ticket sales are recognized upon the occurrence of the related live event. Consumer product licensing royalties: Licensing revenues consist principally of royalties or license fees related to various WWE themed products, such as video games, toys and apparel, which are created using WWE brands and marks (symbolic intellectual property). Revenues from our licensed products are recognized in the period of the underlying product sales based on estimates from licensees and adjustments to the estimated amounts are recorded when final statements are received. The estimates are derived from the best available recent information from our licensees of underlying sales performance and represent the most likely amount of revenues expected. Any upfront license fees or minimum guarantees received from the licensee are deferred upon collection and recognized into revenue over the contract term as the amounts are earned. In contracts that include a minimum guarantee, we recognize revenue over time when we estimate that the minimum guarantee will not be exceeded through the associated sales or usage-based royalties. Direct-to-consumer venue merchandise sales: Direct-to-consumer merchandise sales consist of sales of merchandise at our live events. Revenues are recognized at the point of sale, as control is transferred to the customer. eCommerce sales: Beginning July 2022, eCommerce revenues consist principally of royalties or license fees related to various WWE themed merchandise (symbolic intellectual property). Any upfront license fees or minimum guarantees received from the licensee are deferred upon collection and recognized into revenue over the contract term as the amounts are earned. In contracts that include a minimum guarantee, we recognize revenue over time when we estimate that the minimum guarantee will not be exceeded through the associated sales or usage-based royalties. When we estimate that the minimum guarantee will be exceeded through the associated sales or usage-based royalties, revenues are recognized in the period of the underlying sales based on estimates from licensees and adjustments to the estimated amounts are recorded when final statements are received. The estimates are derived from the best available recent information from our licensees of underlying sales performance and represent the most likely amount of revenues expected. Prior to July 2022, eCommerce revenues consisted of direct-to-consumer sales of merchandise on our websites and on other distribution platforms, including Amazon. Revenues associated with direct-to-consumer sales are recognized at a point in time, as control is transferred to the customer upon shipment. |
Operating Expenses | Operating Expenses — Operating expenses consist of our production costs associated with developing our content, 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, and costs associated with operating WWE Network. In addition, operating expenses include the operating costs associated with talent development, data analytics, data engineering, business strategy and real estate and facilities functions. Included within operating expenses are the following depreciation and amortization expenses: Amortization and impairment of feature film production assets: We amortize feature film production assets based on the estimated future cash flows. Unamortized feature film production assets are evaluated for impairment each reporting period. Amortization and impairment of television production assets: Television production assets consist primarily of non-live event episodic television series we have produced for distribution through a variety of platforms, including on WWE Network. Costs to produce episodic programming for television or distribution on WWE Network are amortized in the proportion that revenues bear to management's estimates of the ultimate revenue expected to be recognized from exploitation, exhibition or sale. Unamortized television production assets are evaluated for impairment each reporting period. Program amortization for WWE Network is included in operating expenses as a component of amortization of television production assets. For episodic programming debuting and currently expected to air exclusively on WWE Network, the cost of the programming is expensed upon delivery of the content to distribution partners or the initial release on the subscription-based WWE Network, as the vast majority of viewership occurs in close proximity to the initial release. Depreciation and amortization of costs related to content delivery and technology assets utilized for WWE Network: These costs are depreciated or amortized on a straight-line basis over the shorter of the expected useful life or the term of the respective assets. Amortization of right-of-use assets on finance leases of equipment: The amortization expense associated with the right-of-use assets pertain predominantly to equipment utilized to produce and distribute our live event programming and are therefore included in operating expenses. Depreciation on equipment used directly in revenue generating activities: We capitalize equipment consisting primarily of television set components and related equipment that is utilized as part of our programming content. These assets are depreciated over their respective estimated useful lives. The following table presents the depreciation and amortization expense amounts included within Operating expenses for the periods presented: Year Ended December 31, 2022 2021 2020 Amortization and impairment of content production assets $ 33,015 $ 19,714 $ 26,309 Depreciation and amortization of WWE Network content delivery and technology assets 8,534 7,530 5,632 Amortization of right-of-use assets - finance leases of equipment 9,076 9,149 11,070 Depreciation on equipment used directly to support operations 788 630 561 Total depreciation and amortization included in operating expenses $ 51,413 $ 37,023 $ 43,572 Costs to produce our live event programming are expensed when the event is first broadcast, and are not included in the depreciation and amortization table noted above. These costs include production-related costs, such as lighting, pyrotechnics and staging, associated with our weekly, in-ring televised programming as well as our premium live events, which are included as a component of our Media segment Operating expenses. We also incur event-related costs, such as venue rental, security and travel, associated with our premium live events as well as our televised and non-televised events, which are included as a component of our Live Events segment Operating expenses. Talent-related costs primarily associated with our premium live events and televised programming are included within our Media segment, while talent-related costs associated with our non-televised events are included within our Live Events segment. |
Marketing and Selling Expenses | Marketing and Selling Expenses – Marketing and selling expenses consist of costs associated with the promotion and marketing of our services and products. These expenses include advertising and promotional costs, and the costs associated with our sales and marketing functions, creative services functions and our international offices. |
General and Administrative Expenses | General and Administrative Expenses – General and administrative expenses are unallocated and include costs associated with our corporate administrative functions, including finance, investor relations, community relations, corporate communications, information technology, legal, facilities, human resources and our Board of Directors. We record all Company-wide severance expenses as unallocated corporate general and administrative expenses. |
Content Production Incentives | Content Production Incentives — The Company has access to various governmental programs that are designed to promote content production within the United States and certain international jurisdictions. Tax incentives earned with respect to expenditures on qualifying film production activities are included as an offset to Content production assets, net within our Consolidated Balance Sheets. Tax incentives earned with respect to expenditures on qualifying capital projects are included as an offset to Property and equipment, net within our Consolidated Balance Sheets. Tax incentives earned with respect to expenditures on qualifying television and other production activities are recorded as an offset to production expenses within Operating expenses within our Consolidated Statements of Operations. The Company recognizes these benefits when we have reasonable assurance regarding the realizable amount of the tax credits. The realizable amount is recorded within Accounts receivable, net within our Consolidated Balance Sheets until the Company receives the funds from the respective governmental jurisdiction. As there is no authoritative guidance under U.S. GAAP on accounting for government assistance to for profit business entities, the Company accounts for these content production incentives by analogy to International Accounting Standard ("IAS") 20, Accounting for Government Grants and Disclosure of Government Assistance . |
Advertising Expense | Advertising Expense — Advertising costs are expensed as incurred, except for costs related to the development of a major commercial or media campaign, which are expensed in the period in which the commercial or campaign is first presented. For the years ended December 31, 2022, 2021 and 2020, we recorded advertising expenses of $ 10,778 , $ 9,219 and $ 13,539 , respectively. |
Foreign Currency Translation | Foreign Currency Translation — For the translation of the financial statements of our foreign subsidiaries whose functional currencies are non-U.S. Dollars, assets and liabilities are translated at the year-end exchange rate, and income statement accounts are translated at monthly average exchange rates for the year. The resulting translation adjustments are recorded in accumulated other comprehensive income, a component of stockholders’ equity, and also in comprehensive income. Foreign currency transactions are recorded at the exchange rate prevailing at the transaction date, with any gains and/or losses recorded within Other income (expense), net within our Consolidated Statements of Operations. |
Stock-Based Compensation | Stock-Based Compensation — Equity awards are granted to directors, officers and employees of the Company. Stock-based compensation costs associated with our restricted stock units ("RSUs") are determined using the fair market value of the Company's common stock on the date of the grant. These costs are recognized over the requisite service period using the graded vesting method, net of estimated forfeitures. RSUs have a service requirement typically over a 3.5 year vesting schedule and vest in equal annual installments. Unvested RSUs accrue dividend equivalents at the same rate as are paid on our shares of Class A common stock. The dividend equivalents are subject to the same vesting schedule as the underlying RSUs. Stock-based compensation costs associated with our performance stock units ("PSUs") are initially determined using the fair market value of the Company's common stock on the date the awards are approved by our Compensation and Human Capital Committee (service inception date). The vesting of these PSUs are subject to certain performance conditions and a service requirement of typically 3.5 years. Until such time as the performance conditions are met, stock compensation costs associated with these PSUs are re-measured each reporting period based upon the fair market value of the Company's common stock and the estimated performance attainment on the reporting date. The ultimate number of PSUs that are issued to an employee is the result of the actual performance of the Company at the end of the performance period compared to the performance conditions. Stock compensation costs for our PSUs are recognized over the requisite service period using the graded vesting method, net of estimated forfeitures. Unvested PSUs accrue dividend equivalents once the performance conditions are met at the same rate as are paid on our shares of Class A common stock. The dividend equivalents are subject to the same vesting schedule as the underlying PSUs. During the third quarter of 2022, the Compensation and Human Capital Committee approved the grant of PSUs to certain executives for an aggregate value of $ 18,000 . These awards were granted in October 2022 and vary from the typical PSU grants in that the awards have performance conditions tied to results through September 2025. These awards will vest in 2025 and are accounted for as equity awards since the target shares were known at inception. During the third quarter of 2020, the Compensation and Human Capital Committee approved an agreement to grant PSUs to an executive management member for an aggregate value of $ 15,000 . During the first quarter of 2022, this agreement was amended to increase the aggregate value to $ 22,500 . The award vests in two tranches of 27 %, and 73 %, during the years 2022 and 2025, respectively. The first award tranche of $ 6,000 has performance conditions tied to results through September 2022, and the second award of $ 16,500 has performance conditions tied to results through September 2025. The Company began expensing the second award of $ 16,500 concurrent with the first award beginning on the service inception date in August 2020. The Company accounted for the first award, which vested in November 2022, as an equity award since the target shares were known at inception. The second award was initially classified as a liability award until it was reclassified as an equity award in November 2022 when the number of shares was determined upon settlement of the first award. We estimate forfeitures based on historical trends when recognizing compensation expense and adjust the estimates when they are expected to differ or as forfeitures occur. |
Earnings Per Share (EPS) | Earnings Per Share (EPS) — Basic EPS is calculated by dividing net income by the weighted average common shares outstanding during the period. The Company adopted ASU 2020-06 on January 1, 2022. ASU 2020-06 requires the if-converted method to be applied for all convertible instruments when calculating diluted EPS. Diluted EPS is calculated by dividing net income, adjusted for the effect of potentially dilutive shares, by the weighted average common shares outstanding during the period plus dilutive potential common shares which are calculated using the if-converted method. Under the if-converted method, potential common shares are excluded from the computation of EPS in periods in which they have an anti-dilutive effect. Net income per share of Class A and Class B common stock is computed in accordance with a two-class method of earnings allocation. As such, any undistributed earnings for each period are allocated to each class of common stock based on the proportionate share of cash dividends that each class is entitled to receive. During 2022, 2021 and 2020, the dividends declared and paid per share of Class A and Class B common stock were the same. |
Treasury Stock Retirement | Treasury Stock Retirement — The Company accounts for treasury stock transactions using the cost method. All share repurchases to date have been retired by the Company. When the Company retires its own common stock, the excess of the repurchase price of the common stock over the par value of the common stock is allocated between additional paid-in capital and retained earnings. The portion allocated to additional paid-in capital is determined by applying a percentage, determined by dividing the number of shares to be retired by the number of shares issued and outstanding as of the retirement date, to the balance of additional paid-in capital as of the retirement date. Direct costs incurred to repurchase the common stock are not material and are expensed in the period incurred. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In November 2021, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2021-10, Disclosures by Business Entities about Government Assistance (“ASU 2021-10”). ASU 2021-10 added a new Topic, ASC 832, Government Assistance , to the FASB’s Codification, which requires certain annual disclosures about transactions with a government that are accounted for by applying a grant or contribution accounting model. While the adoption of this guidance does not have an impact on the Company's consolidated balance sheets or statements of operations, the guidance requires additional annual disclosures in the Company's annual financial statements. The Company is applying the amendments in ASU 2021-10 prospectively as of January 1, 2022, and has included the annual disclosures required by the ASU within our significant accounting policies, as described above, as well as within Note 14, Content Production Incentives . In August 2020, the FASB issued ASU No. 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (“ASU 2020-06”). The new guidance eliminates two of the three models in ASC 470-20, Debt with Conversion and Other Options , that require separating embedded conversion features from convertible instruments. Specifically, the ASU removes the separation models for convertible debt with a cash conversion feature or convertible instruments with a beneficial conversion feature. The Company's existing 3.375 % convertible senior notes due December 2023 ("Convertible Notes") are currently accounted for under the cash conversion feature model, which is one of the models being eliminated. As a result, after adopting the new guidance, the Company will no longer separately present in equity an embedded conversion feature of such debt. Instead, the Company will account for a convertible debt instrument wholly as debt unless (i) a convertible debt instrument contains features that require bifurcation as a derivative or (ii) a convertible debt instrument was issued at a substantial premium. Additionally, the ASU revises the scope exception from derivative accounting in ASC 815-40 for freestanding financial instruments (e.g., warrants) and embedded features (e.g., conversion features) that are both indexed to the issuer’s own stock and classified in stockholders’ equity, by removing certain criteria required for equity classification. The new guidance also requires the use of the if-converted method when calculating diluted earnings per share (“EPS”) for convertible instruments and the treasury stock method should no longer be used. Under the new guidance, convertible instruments that may be settled in cash or shares (e.g., the Company’s Convertible Notes) are to be included in the calculation of diluted EPS if the effect is dilutive, with no option for rebutting the presumption of share settlement based on stated policy or past experience. The ASU is effective for fiscal years beginning after December 15, 2021 (fiscal year 2022 for the Company) and can be adopted on either a fully retrospective or modified retrospective basis. The Company adopted the ASU effective January 1, 2022 under the modified retrospective approach. The cumulative effect of the change was recognized as an adjustment to the opening balance of retained earnings (accumulated deficit) at the date of adoption. The comparative information has not been restated and continues to be presented according to accounting standards in effect for those periods. As a result of the adoption beginning on January 1, 2022, the Company’s Convertible Notes are no longer bifurcated into a separate liability and equity component in the consolidated balance sheet. Rather, the Convertible Notes are presented as a single liability at amortized cost, net of unamortized debt issuance costs, on the consolidated balance sheet. Upon adoption of the ASU, the Company recorded a net increase of $ 12,068 to the Convertible Notes liability component, a $ 26,383 net decrease to the equity component (additional paid-in capital) and a net increase of $ 17,609 to retained earnings (accumulated deficit) for the cumulative effect of the adoption. The Company also recorded a net increase of $ 3,294 to deferred income tax assets. The adjustments were calculated based on the carrying amount of the Convertible Notes as if it had always been treated as a liability only. Furthermore, included in the above adjustments, are adjustments to the debt issuance costs contra-liability and equity (additional paid-in capital) components under the same premise (i.e., as if the total amount of debt issuance costs had always been treated as a contra-liability only). Lastly, the Company derecognized deferred income taxes associated with the Convertible Notes debt discount and adjusted deferred income taxes relative to unamortized debt issuance costs associated with the Convertible Notes. The Company also expects lower interest expense related to the Convertible Notes that will be recognized in future periods subsequent to adoption as a result of accounting for the Convertible Notes as a single liability measured at amortized cost. The following table summarizes the impact of the adoption of ASU 2020-06 on the Company’s opening consolidated balance sheet on January 1, 2022: December 31, 2021 ASU 2020-06 January 1, 2022 As Reported Adoption Impact As Adjusted Consolidated Balance Sheet line item : Deferred income tax assets, net $ 13,100 $ 3,294 $ 16,394 Convertible debt (1) $ 201,093 $ 12,068 $ 213,161 Additional paid-in-capital (conversion feature, net of tax) $ 422,884 $ ( 26,383 ) $ 396,501 Accumulated deficit (cumulative effect adjustment, net of tax) $ ( 51,393 ) $ 17,609 $ ( 33,784 ) (1) Prior to adoption, the carrying value of the Convertible Debt represents the principal amount less the unamortized debt discount and unamortized debt issuance costs. After adoption, the carrying value of the Convertible Debt represents the principal amount less the unamortized debt issuance costs. |
Summary Of Significant Accoun_3
Summary Of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Summary Of Significant Accounting Policies [Abstract] | |
Schedule Of Operating Expenses | Year Ended December 31, 2022 2021 2020 Amortization and impairment of content production assets $ 33,015 $ 19,714 $ 26,309 Depreciation and amortization of WWE Network content delivery and technology assets 8,534 7,530 5,632 Amortization of right-of-use assets - finance leases of equipment 9,076 9,149 11,070 Depreciation on equipment used directly to support operations 788 630 561 Total depreciation and amortization included in operating expenses $ 51,413 $ 37,023 $ 43,572 |
Schedule Of Impact On Adoption Of ASU 2020-06 On Opening Consolidated Balance Sheet | December 31, 2021 ASU 2020-06 January 1, 2022 As Reported Adoption Impact As Adjusted Consolidated Balance Sheet line item : Deferred income tax assets, net $ 13,100 $ 3,294 $ 16,394 Convertible debt (1) $ 201,093 $ 12,068 $ 213,161 Additional paid-in-capital (conversion feature, net of tax) $ 422,884 $ ( 26,383 ) $ 396,501 Accumulated deficit (cumulative effect adjustment, net of tax) $ ( 51,393 ) $ 17,609 $ ( 33,784 ) (1) Prior to adoption, the carrying value of the Convertible Debt represents the principal amount less the unamortized debt discount and unamortized debt issuance costs. After adoption, the carrying value of the Convertible Debt represents the principal amount less the unamortized debt issuance costs. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule Of Basic And Diluted Earnings Per Share | Year Ended December 31, 2022 2021 2020 Net income for basic earnings per share $ 195,588 $ 177,408 $ 131,771 Effect of potentially dilutive shares: Interest expense related to the Convertible Notes (1) 6,063 — — Net income for diluted earnings per share $ 201,651 $ 177,408 $ 131,771 Weighted average basic common shares outstanding 74,459 76,324 77,564 Dilutive effect of restricted and performance stock units 664 447 492 Dilutive effect of convertible debt instruments 13,036 8,166 6,160 Dilutive effect of employee share purchase plan 4 6 3 Weighted average dilutive common shares outstanding 88,163 84,943 84,219 Earnings per share: Basic $ 2.63 $ 2.32 $ 1.70 Diluted $ 2.29 $ 2.09 $ 1.56 Anti-dilutive shares (excluded from per-share calculations): Net shares received on purchased call of convertible debt hedge 5,330 4,641 3,762 Outstanding restricted and performance stock units — — — (1) The Company adopted ASU 2020-06 effective January 1, 2022 under the modified retrospective approach. As such, for purposes of calculating net income for diluted earnings per share, we have not made any adjustments for the years ended December 31, 2021 and 2020. |
Revenues (Tables)
Revenues (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Revenues [Abstract] | |
Schedule Of Revenues Disaggregated By Source | Year Ended December 31, 2022 2021 2020 Net revenues: Media Segment : Network (including pay-per-view) (1) $ 222,017 $ 224,967 $ 192,361 Core content rights fees (2) 596,814 566,249 531,640 Advertising and sponsorships (3) 66,538 71,495 65,333 Other (4) 148,508 73,501 78,882 Total Media Segment net revenues 1,033,877 936,212 868,216 Live Events Segment : North American ticket sales 97,907 46,301 15,206 International ticket sales 12,113 4,639 210 Advertising and sponsorships (5) 4,738 896 354 Other (6) 8,325 5,967 4,151 Total Live Events Segment net revenues 123,083 57,803 19,921 Consumer Products Segment : Consumer product licensing 77,532 51,982 41,675 eCommerce 33,263 39,085 41,196 Venue merchandise 23,768 10,092 3,199 Total Consumer Products Segment net revenues 134,563 101,159 86,070 Total net revenues $ 1,291,523 $ 1,095,174 $ 974,207 (1) Network revenues consist primarily of license fees associated with the domestic distribution of WWE Network content to NBCU (effective March 18, 2021), as well as subscription fees from customers of WWE Network and license fees associated with our international licensed partner agreements. Network revenues for the year ended December 31, 2021 include the upfront revenue recognition related to the delivery of certain WWE Network intellectual property rights. (2) Core content rights fees consist primarily of licensing revenues from the distribution of our flagship programs, Raw and SmackDown , as well as our NXT programming, through global broadcast, pay television and digital platforms. (3) Advertising and sponsorships revenues within our Media segment consist primarily of advertising revenues from the Company’s content on third-party social media platforms and sponsorship fees from sponsors who promote their products utilizing the Company’s media platforms, including promotion on the Company’s digital websites and on-air promotional media spots. (4) 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 content in international markets, scripted, reality and other programming. (5) Advertising and sponsorships revenues within our Live Events segment primarily consist of fees from advertisers and sponsors who promote their products utilizing the Company’s live events (i.e., presenting sponsor of fan engagement events and advertising signage at the event). (6) Other revenues within our Live Events segment primarily consists of the sale of travel packages associated with the Company’s global live events, as well as revenues from events for which the Company receives a fixed fee . |
Investment Securities And Sho_2
Investment Securities And Short-Term Investments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Investment Securities And Short-Term Investments [Abstract] | |
Schedule Of Investment Securities | As of December 31, 2022 2021 Nonmarketable equity investments without readily determinable fair values $ 11,797 $ 11,618 Total investment securities $ 11,797 $ 11,618 |
Schedule Of Equity Instruments Without Readily Determinable Fair Value | Year Ended December 31, 2022 2021 2020 Impairments (1) $ — $ — $ ( 2,715 ) Observable price change upward adjustments — — — Observable price change downward adjustments ( 16 ) — ( 29 ) Total income (loss) from adjustments to nonmarketable equity investments $ ( 16 ) $ — $ ( 2,744 ) (1) During the year ended December 31, 2020, the Company recorded an impairment charge on our investment in a themed attraction touring company for the excess of the carrying value over its estimated fair value resulting from significant adverse changes in the economic and market conditions caused by COVID-19. These charges are reflected in Other income (expense), net on our Consolidated Statements of Operations. |
Schedule Of Short-Term Investments Measured At Fair Value | December 31, 2022 December 31, 2021 Gross Unrealized Gross Unrealized Amortized Fair Amortized Fair Cost Gain (Loss) Value Cost Gain (Loss) Value U.S. Treasury securities $ 94,287 $ — $ ( 1,095 ) $ 93,192 $ 90,278 $ — $ ( 57 ) $ 90,221 Corporate bonds 117,947 1 ( 1,435 ) 116,513 147,102 1 ( 269 ) 146,834 Government agency bonds 49,494 12 ( 724 ) 48,782 44,026 1 ( 125 ) 43,902 Total $ 261,728 $ 13 $ ( 3,254 ) $ 258,487 $ 281,406 $ 2 $ ( 451 ) $ 280,957 |
Schedule Of Contractual Maturities Of Short-Term Investment Bonds | Maturities U.S. Treasury securities 1 month - 1 year Corporate bonds 1 month - 2 years Government agency bonds 4 months - 1 year |
Summary Of Short-Term Investment Activity | Year Ended December 31, 2022 2021 2020 Proceeds from sale of short-term investments $ — $ 27,911 $ 22,613 Proceeds from maturities and calls of short-term investments $ 263,789 $ 194,149 $ 159,703 Purchases of short-term investments $ 245,964 $ 374,502 $ 153,904 Gross realized (losses) gains on sale of short-term investments $ — $ ( 2 ) $ 64 |
Property And Equipment (Tables)
Property And Equipment (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property And Equipment [Abstract] | |
Schedule Of Property And Equipment | As of December 31, 2022 2021 Land, buildings and improvements $ 158,806 $ 154,826 Equipment 166,249 148,193 Corporate aircraft 32,249 32,249 Vehicles 993 993 Projects in progress 216,710 49,660 575,007 385,921 Less accumulated depreciation and amortization ( 245,866 ) ( 213,244 ) Total $ 329,141 $ 172,677 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Quantitative Information About Leases | For the year ended December 31, 2022 2021 2020 Lease costs Finance lease costs: Amortization of right-of-use assets $ 18,863 $ 18,360 $ 20,172 Interest on lease liabilities 15,085 18,299 18,359 Operating lease costs 4,867 6,185 5,695 Other short-term and variable lease costs 2,234 1,805 1,678 Sublease income (1) ( 35 ) ( 69 ) ( 16 ) Total lease costs $ 41,014 $ 44,580 $ 45,888 Other information Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from finance leases $ 15,086 $ 11,506 $ 1,244 Operating cash flows from operating leases $ 3,912 $ 5,548 $ 4,850 Finance cash flows from finance leases $ 14,051 $ 11,948 $ 10,795 Right-of-use assets obtained in exchange for new finance lease liabilities $ 22 $ 174 $ 40,212 Right-of-use assets obtained in exchange for new operating lease liabilities $ 13,227 $ 3,457 $ 2,518 As of December 31, 2022 2021 2020 Weighted-average remaining lease term - finance leases 26.4 years 27.0 years 28.8 years Weighted-average remaining lease term - operating leases 6.5 years 3.0 years 4.3 years Weighted-average discount rate - finance leases 4.0 % 4.0 % 4.8 % Weighted-average discount rate - operating leases 3.4 % 3.5 % 4.3 % (1) Sublease income excludes rental income from owned properties. |
Maturity Of Lease Liabilities | Operating Finance Leases Leases 2023 $ 4,137 $ 26,328 2024 2,656 24,855 2025 2,500 21,711 2026 2,321 22,070 2027 2,218 19,512 Thereafter 5,023 519,000 Total lease payment 18,855 633,476 Less: imputed interest ( 2,106 ) ( 256,899 ) Total future minimum lease payments $ 16,749 $ 376,577 |
Content Production Assets, Net
Content Production Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Content Production Assets, Net [Abstract] | |
Schedule Of Content Production Assets | Predominantly Monetized Individually Predominantly Monetized as a Film Group As of December 31, As of December 31, 2022 2021 2022 2021 In release $ 3,090 $ 3,291 $ 7 $ 139 In production 13,122 9,581 289 627 In development 10 143 — — Total $ 16,222 $ 13,015 $ 296 $ 766 |
Schedule Of Amortization And Impairment Of Content Production Assets | Year Ended December 31, 2022 2021 2020 Content production amortization expense - assets monetized individually $ 28,921 $ 13,720 $ 17,676 Content production amortization expense - assets monetized as a film group 3,934 5,316 5,333 Content production impairment charges (1) — 313 3,171 Content production development write-offs (2) 160 365 129 Total amortization and impairment of content production assets $ 33,015 $ 19,714 $ 26,309 (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 as part of 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. |
Accounts Payable And Accrued _2
Accounts Payable And Accrued Expenses (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounts Payable And Accrued Expenses [Abstract] | |
Schedule Of Accounts Payable And Accrued Expenses | As of December 31, 2022 2021 Trade related $ 9,816 $ 11,150 Staff related (1) 13,828 15,558 Management incentive compensation 31,204 30,604 Talent related 6,274 4,428 Accrued WWE Network related expenses 3,331 10,950 Accrued event and television production 11,599 9,687 Accrued legal and professional (2) 14,980 7,706 Accrued purchases of property and equipment 18,567 22,207 Accrued income taxes (3) 1,415 — Accrued other 11,842 10,426 Total $ 122,856 $ 122,716 (1) Staff related as of December 31, 2022 includes $ 2,756 of severance costs associated with the investigation by the Special Committee of independent members of the Company’s Board of Directors. (2) Accrued legal and professional as of December 31, 2022 includes $ 1,992 of costs associated with the investigation by the Special Committee of independent members of the Company’s Board of Directors. Additionally, accrued legal and professional as of December 31, 2022 and 2021 include certain amounts of $ 9,125 and $ 2,200 , respectively, to be paid by the Company’s controlling stockholder (see Note 16 for further information). As disclosed in the 2021 Form 10-K/A, the Company determined that certain payments that Mr. McMahon, the Company’s then-Chief Executive Officer, who initially resigned from all positions held with the Company on July 22, 2022 but remains a stockholder with a controlling interest and, as of January 9, 2023 serves as Executive Chairman of the Board of Directors, agreed to make during the period of 2006 through 2022 (including amounts paid and payable in the future) were not appropriately recorded as expenses in the Company’s Consolidated Financial Statements. As a result, the previously reported Consolidated Balance Sheet of the Company as of December 31, 2021 was revised in the 2021 Form 10-K/A to correct these immaterial accounting errors by increasing the Company’s previously reported Accounts payable and accrued expenses by $ 2,200 . (3) At December 31, 2021, income taxes had a refundable balance of $ 7,156 and was included in Prepaid expenses and other current assets on our Consolidated Balance Sheets. |
Convertible Debt (Tables)
Convertible Debt (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Convertible Debt [Abstract] | |
Schedule Of Convertible Notes | As of December 31, 2022 2021 Debt component : Principal $ 215,000 $ 215,000 Less: Unamortized debt discount (1) — ( 11,968 ) Less: Unamortized debt issuance costs (2) ( 900 ) ( 1,939 ) Net carrying amount $ 214,100 $ 201,093 Equity component (3) $ — $ 35,547 (1) The debt discount associated with the Convertible Notes was derecognized upon adoption of ASU 2020-06 on January 1, 2022. (2) Unamortized debt issuance costs as of December 31, 2022 reflects the adoption impact from ASU 2020-06 described above. (3) The equity component of the Convertible Notes, net of deferred income taxes, was derecognized upon adoption of ASU 2020-06 on January 1, 2022. |
Schedule Of Interest Expense Recognized | For the year ended December 31, 2022 2021 2020 3.375 % contractual coupon $ 7,256 $ 7,256 $ 7,256 Amortization of debt discount (1) — 5,557 5,213 Amortization of debt issuance costs 939 852 803 Interest expense $ 8,195 $ 13,665 $ 13,272 (1) The Company adopted ASU 2020-06 on January 1, 2022 using the modified retrospective method. Prior year reported amounts were not revised and are presented in accordance with accounting rules prior to the adoption of ASU 2020-06. |
Long-Term Debt And Credit Fac_2
Long-Term Debt And Credit Facility (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Instrument [Line Items] | |
Schedule Of Debt | As of December 31, December 31, 2022 2021 Current portion of long-term debt : Mortgage $ 449 $ 430 Total current portion of long-term debt 449 430 Long-term debt : Mortgage $ 20,848 $ 21,284 Total long-term debt 20,848 21,284 Total $ 21,297 $ 21,714 |
Mortgage [Member] | |
Debt Instrument [Line Items] | |
Schedule of Principal Repayments Under Note Obligation | December 31, 2023 $ 449 December 31, 2024 470 December 31, 2025 20,378 $ 21,297 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Taxes [Abstract] | |
Schedule of Components of Tax Provision | Year Ended December 31, 2022 2021 2020 Current taxes: Federal $ 61,587 $ 40,389 $ 9,386 State and local 16,684 7,985 8,843 Foreign 19,170 7,126 23,945 Deferred taxes: Federal ( 27,021 ) ( 2,499 ) ( 1,391 ) State and local ( 1,657 ) ( 528 ) ( 1,445 ) Foreign 30 ( 19 ) — Total income tax expense $ 68,793 $ 52,454 $ 39,338 |
Schedule of Components of (Loss) Income Before Income Taxes | Year Ended December 31, 2022 2021 2020 United States $ 263,415 $ 228,578 $ 170,668 Foreign 966 1,284 441 Total income before income taxes $ 264,381 $ 229,862 $ 171,109 |
Schedule of Effective Income Tax Rate Reconciliation | Year Ended December 31, 2022 2021 2020 Statutory U.S. federal tax $ 55,520 $ 48,271 $ 35,930 State and local taxes, net of federal tax benefit 10,199 5,890 5,061 Foreign rate differential ( 43 ) ( 5 ) 38 Nondeductible executive compensation 6,351 3,159 2,427 Unrecognized tax benefits 12 ( 56 ) ( 127 ) Meals and entertainment 3 2 119 Employee Stock Purchase Plan 161 122 53 Foreign-derived intangible income (FDII) ( 7,322 ) ( 5,628 ) ( 4,892 ) Withholding tax (non-creditable) 2,525 — — Global intangible low-taxed income (GILTI) 216 231 175 Excess tax benefits related to the vesting of share-based compensation ( 430 ) 524 388 Other 1,601 ( 56 ) 166 Provision for income taxes $ 68,793 $ 52,454 $ 39,338 |
Schedule of Deferred Tax Assets and Deferred Tax Liabilities | As of December 31, 2022 2021 Deferred tax assets: Accounts receivable $ 1,163 $ 1,150 Inventory 211 384 Deferred income 8,460 7,815 Stock compensation 3,107 3,323 Net operating loss carryforward 1,050 1,118 Foreign tax credits 19,170 — Investments 1,444 121 Intangible assets 1,730 1,700 Capitalized content production costs 1,827 2,164 Accrued liabilities and reserves 1,840 1,737 Lease obligations 22,338 10,719 Federal benefit related to uncertain tax positions 19 23 Deferred tax assets, gross 62,359 30,254 Valuation allowance ( 1,050 ) ( 1,118 ) Deferred tax assets, net 61,309 29,136 Deferred tax liabilities: Property and equipment depreciation ( 10,948 ) ( 12,514 ) Right-of-use assets ( 3,695 ) ( 1,778 ) Investments ( 1,047 ) ( 1,744 ) Deferred tax liabilities ( 15,690 ) ( 16,036 ) Total deferred tax assets, net $ 45,619 $ 13,100 |
Schedule of Unrecognized Tax Benefit Activity | Year Ended December 31, 2022 2021 Beginning Balance- January 1 $ 68 $ 130 Increase to unrecognized tax benefits recorded for positions taken during the current year 10 8 Increase to unrecognized tax benefits recorded for positions taken during a prior period 37 — Decrease to unrecognized tax benefits resulting from a lapse of the applicable statute of limitations ( 29 ) ( 70 ) Ending Balance- December 31 $ 86 $ 68 |
Content Production Incentives (
Content Production Incentives (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Content Production Incentives [Abstract] | |
Schedule Of Content Production Incentives | Year Ended December 31, 2022 2021 2020 Television production incentives (1) $ 13,796 $ 13,845 $ 18,367 Feature film production incentives (2) — — — Infrastructure improvement incentives on qualifying capital projects (3) — 4,329 — Total $ 13,796 $ 18,174 $ 18,367 (1) Tax incentives earned with respect to expenditures on qualifying television and other production activities are recorded as an offset to production expenses within Operating expenses within our Consolidated Statements of Operations. (2) Tax incentives earned with respect to expenditures on qualifying film production activities are included as an offset to Content production assets, net within our Consolidated Balance Sheets. (3) Tax incentives earned with respect to expenditures on qualifying capital projects are included as an offset to Property and equipment, net within our Consolidated Balance Sheets. During the year ended December 31, 2021, $ 3,290 of the total incentive was recorded as a reduction in property and equipment, net with the remainder recorded as a reduction to depreciation expense . |
Commitments And Contingencies (
Commitments And Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Commitments And Contingencies [Abstract] | |
Schedule of Future Minimum Payments Under Agreements | Service Contracts and Talent Commitments 2023 $ 54,224 2024 26,603 2025 15,859 2026 10,645 2027 250 Thereafter 1,250 Total $ 108,831 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022 300,003 $ 55.03 Granted 367,887 $ 55.38 Vested ( 143,532 ) $ 57.45 Forfeited ( 60,247 ) $ 53.00 Dividend equivalents 3,687 $ 54.54 Unvested at December 31, 2022 467,798 $ 54.76 |
Summary Of PSU Activity | Units Weighted- Average Grant-Date Fair Value Unvested at January 1, 2022 433,267 $ 50.14 Granted 1,077,784 $ 68.52 Achievement adjustment ( 21,875 ) $ 64.40 Vested ( 172,961 ) $ 53.76 Forfeited ( 303,232 ) $ 66.99 Dividend equivalents 2,102 $ 49.00 Unvested at December 31, 2022 1,015,085 $ 65.04 |
Restricted Stock Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule Of Stock-Based Compensation Expense | Year Ended December 31, 2022 2021 2020 Tax benefits realized $ 5,561 $ 6,310 $ 14,319 Weighted-average grant-date fair value of RSUs granted 20,373 15,061 16,106 Fair value of RSUs vested 8,245 7,101 13,434 |
Performance Stock Units (PSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule Of Stock-Based Compensation Expense | Year Ended December 31, 2022 2021 2020 Tax benefits realized $ 4,422 $ 4,824 $ 13,030 Weighted-average grant-date fair value of PSUs granted 73,850 15,035 19,592 Fair value of PSUs vested 9,298 13,021 20,830 |
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, 2022 47,736 $ 47.28 Granted — $ — Achievement adjustment 10,229 $ 47.30 Vested ( 23,912 ) $ 47.45 Forfeited — $ — Dividend equivalents 45 $ 47.30 Unvested at December 31, 2022 34,098 $ 47.30 |
Schedule Of Stock-Based Compensation Expense | Year Ended December 31, 2022 2021 2020 Tax benefits realized $ — $ — — Weighted-average grant-date fair value of PSU-TSRs granted — — — Fair value of PSU-TSRs vested 1,135 732 830 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Information [Abstract] | |
Summary Of Financial Information For Reportable Segments | Year Ended December 31, 2022 2021 2020 Net revenues: Media $ 1,033,877 $ 936,212 $ 868,216 Live Events 123,083 57,803 19,921 Consumer Products 134,563 101,159 86,070 Total net revenues $ 1,291,523 $ 1,095,174 $ 974,207 Depreciation and amortization: Media $ 14,766 $ 13,427 $ 15,119 Live Events 41 43 23 Consumer Products 245 178 8 Corporate 22,235 27,253 27,466 Total depreciation and amortization $ 37,287 $ 40,901 $ 42,616 Adjusted OIBDA: Media $ 428,695 $ 390,506 $ 367,818 Live Events 27,163 7,652 ( 17,655 ) Consumer Products 56,643 35,530 26,638 Corporate ( 127,921 ) ( 109,577 ) ( 90,613 ) Total Adjusted OIBDA $ 384,580 $ 324,111 $ 286,188 |
Reconciliation Of Total Operating Income To Total OIBDA | Year Ended December 31, 2022 2021 2020 Total operating income $ 283,225 $ 256,017 $ 208,544 Depreciation and amortization 37,287 40,901 42,616 Stock-based compensation 34,944 19,086 27,989 Other adjustments (1) 29,124 8,107 7,039 Total Adjusted OIBDA $ 384,580 $ 324,111 $ 286,188 (1) Other adjustments for the year ended December 31, 2022 include $ 21,699 of professional fees and severance expenses associated with the investigation by the Special Committee of independent members of the Company’s Board of Directors, as well as $ 7,425 of expenses related to certain payments to be made by the Company’s controlling stockholder. Other adjustments for the year ended December 31, 2021 include severance expenses primarily associated with the combination of WWE’s television, digital and studios teams into one organization. Other adjustments for the year ended December 31, 2020 include severance expenses associated with a reduction in our workforce as a result of COVID-19. |
Schedule Of Net Revenues By Major Geographic Region | Year Ended December 31, 2022 2021 2020 North America $ 1,000,381 $ 873,686 $ 764,938 Europe/Middle East/Africa 216,646 147,978 135,876 Asia Pacific 62,089 61,852 62,327 Latin America 12,407 11,658 11,066 Total net revenues $ 1,291,523 $ 1,095,174 $ 974,207 |
Summary Of Significant Accoun_4
Summary Of Significant Accounting Policies (Narrative) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||
Mar. 31, 2022 USD ($) | Sep. 30, 2020 USD ($) item | Dec. 31, 2022 USD ($) item | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Sep. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) | |||
Significant Accounting Policies [Line Items] | |||||||||
Advertising expenses | $ 10,778 | $ 9,219 | $ 13,539 | ||||||
Additional paid-in-capital (conversion feature, net of tax) | 424,010 | 422,884 | |||||||
Accumulated deficit (cumulative effect adjustment, net of tax) | (92,335) | 51,393 | |||||||
Deferred income tax assets, net | $ 45,619 | 13,100 | |||||||
Corporate Aircraft [Member] | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Estimated useful lives | 10 years | ||||||||
Minimum [Member] | Vehicles And Equipment [Member] | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Estimated useful lives | 3 years | ||||||||
Minimum [Member] | Buildings And Related Improvements [Member] | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Estimated useful lives | 5 years | ||||||||
Maximum [Member] | Vehicles And Equipment [Member] | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Estimated useful lives | 5 years | ||||||||
Maximum [Member] | Buildings And Related Improvements [Member] | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Estimated useful lives | 39 years | ||||||||
Restricted Stock Units (RSUs) [Member] | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Requisite service period | 3 years 6 months | ||||||||
Aggregate value | $ 10,000 | ||||||||
Number of tranches | item | 5 | ||||||||
Restricted Stock Units (RSUs) [Member] | Five Annual Tranches [Member] | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Vesting per tranche | 20% | ||||||||
Performance Stock Units (PSUs) [Member] | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Requisite service period | 3 years 6 months | ||||||||
Aggregate value | $ 18,000 | ||||||||
Performance Stock Units (PSUs) [Member] | Executive Officers [Member] | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Number of tranches | item | 2 | ||||||||
Authorized award | $ 22,500 | $ 15,000 | |||||||
Performance Stock Units (PSUs) [Member] | Executive Officers [Member] | First Tranche [Member] | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Authorized award | $ 6,000 | ||||||||
Vesting per tranche | 27% | 27% | |||||||
Award per tranche | $ 6,000 | ||||||||
Performance Stock Units (PSUs) [Member] | Executive Officers [Member] | Second Tranche [Member] | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Authorized award | $ 16,500 | ||||||||
Vesting per tranche | 73% | 73% | |||||||
Award per tranche | $ 16,500 | ||||||||
Content Rights Fees [Member] | Minimum [Member] | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Revenue recognition, contract term | 1 year | ||||||||
Content Rights Fees [Member] | Maximum [Member] | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Revenue recognition, contract term | 5 years | ||||||||
3.375% Convertible Notes [Member] | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Convertible debt | $ 214,100 | 201,093 | |||||||
Interest rate | 3.375% | ||||||||
Convertible Notes [Member] | ASU 2020-06 [Member] | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Convertible debt | [1] | 213,161 | |||||||
Additional paid-in-capital (conversion feature, net of tax) | 396,501 | ||||||||
Accumulated deficit (cumulative effect adjustment, net of tax) | $ 17,609 | (33,784) | |||||||
Deferred income tax assets, net | 16,394 | ||||||||
Adoption Impact [Member] | Convertible Notes [Member] | ASU 2020-06 [Member] | |||||||||
Significant Accounting Policies [Line Items] | |||||||||
Convertible debt | 12,068 | 12,068 | [1] | ||||||
Additional paid-in-capital (conversion feature, net of tax) | 26,383 | (26,383) | |||||||
Accumulated deficit (cumulative effect adjustment, net of tax) | 17,609 | ||||||||
Deferred income tax assets, net | $ 3,294 | $ 3,294 | |||||||
[1] Prior to adoption, the carrying value of the Convertible Debt represents the principal amount less the unamortized debt discount and unamortized debt issuance costs. After adoption, the carrying value of the Convertible Debt represents the principal amount less the unamortized debt issuance costs. |
Summary Of Significant Accoun_5
Summary Of Significant Accounting Policies (Schedule Of Operating Expenses) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Operating Expenses [Line Items] | |||
Amortization and impairment of content production assets | $ 33,015 | $ 19,714 | $ 26,309 |
Depreciation and amortization of WWE Network content delivery and technology assets | 8,534 | 7,530 | 5,632 |
Amortization of right-of-use assets - finance leases of equipment | 18,863 | 18,360 | 20,172 |
Depreciation on equipment used directly to support operations | 788 | 630 | 561 |
Total depreciation and amortization included in operating expenses | 51,413 | 37,023 | 43,572 |
Equipment [Member] | |||
Operating Expenses [Line Items] | |||
Amortization of right-of-use assets - finance leases of equipment | $ 9,076 | $ 9,149 | $ 11,070 |
Summary Of Significant Accoun_6
Summary Of Significant Accounting Policies (Schedule Of Impact On Adoption Of ASU 2020-06 On Opening Consolidated Balance Sheet) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Deferred income tax assets, net | $ 45,619 | $ 13,100 | ||
Additional paid-in-capital (conversion feature, net of tax) | 424,010 | 422,884 | ||
Accumulated deficit (cumulative effect adjustment, net of tax) | (92,335) | 51,393 | ||
ASU 2020-06 [Member] | Convertible Notes [Member] | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Deferred income tax assets, net | 16,394 | |||
Convertible debt | [1] | 213,161 | ||
Additional paid-in-capital (conversion feature, net of tax) | 396,501 | |||
Accumulated deficit (cumulative effect adjustment, net of tax) | 17,609 | (33,784) | ||
ASU 2020-06 [Member] | Convertible Notes [Member] | As Reported [Member] | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Deferred income tax assets, net | 13,100 | |||
Convertible debt | [1] | 201,093 | ||
Additional paid-in-capital (conversion feature, net of tax) | 422,884 | |||
Accumulated deficit (cumulative effect adjustment, net of tax) | (51,393) | |||
ASU 2020-06 [Member] | Convertible Notes [Member] | Adoption Impact [Member] | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Deferred income tax assets, net | 3,294 | 3,294 | ||
Convertible debt | 12,068 | 12,068 | [1] | |
Additional paid-in-capital (conversion feature, net of tax) | $ 26,383 | (26,383) | ||
Accumulated deficit (cumulative effect adjustment, net of tax) | $ 17,609 | |||
[1] Prior to adoption, the carrying value of the Convertible Debt represents the principal amount less the unamortized debt discount and unamortized debt issuance costs. After adoption, the carrying value of the Convertible Debt represents the principal amount less the unamortized debt issuance costs. |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) - $ / shares | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 12, 2016 | |
Debt Instrument [Line Items] | ||||
Warrant strike price | $ 31.89 | |||
3.375% Convertible Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Conversion price | $ 24.91 | |||
Warrant strike price | 31.89 | |||
Impact on diluted EPS | $ 0.39 | $ 0.22 | $ 0.13 |
Earnings Per Share (Schedule Of
Earnings Per Share (Schedule Of Basic And Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Net income for basic earnings per share | $ 195,588 | $ 177,408 | $ 131,771 | |
Interest expense related to the Convertible Notes | [1] | 6,063 | ||
Net income for diluted earnings per share | $ 201,651 | $ 177,408 | $ 131,771 | |
Weighted average basic common shares outstanding | 74,459 | 76,324 | 77,564 | |
Dilutive effect of restricted and performance stock units | 664 | 447 | 492 | |
Dilutive effect of convertible debt instruments | 13,036 | 8,166 | 6,160 | |
Dilutive effect of employee share purchase plan | 4 | 6 | 3 | |
Weighted average dilutive common shares outstanding | 88,163 | 84,943 | 84,219 | |
Basic | $ 2.63 | $ 2.32 | $ 1.70 | |
Diluted | $ 2.29 | $ 2.09 | $ 1.56 | |
Net Shares Received On Purchased Call Of Convertible Debt Hedge [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive shares (excluded from per-share calculations) | 5,330 | 4,641 | 3,762 | |
[1] The Company adopted ASU 2020-06 effective January 1, 2022 under the modified retrospective approach. As such, for purposes of calculating net income for diluted earnings per share, we have not made any adjustments for the years ended December 31, 2021 and 2020. |
Revenues (Narrative) (Details)
Revenues (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] (Deprecated 2022) | |||
Remaining performance obligations | $ 2,740,000,000 | ||
Contract liabilities | 79,750,000 | $ 74,661,000 | |
Increase in deferred revenue | 5,089,000 | ||
Revenue recognized | 68,756,000 | 60,922,000 | |
Capitalized contract cost | 525,000 | 625,000 | |
Capitalized cost amortization | 100,000 | 100,000 | $ 100,000 |
Capitalized cost, impairment | $ 0 | $ 0 | $ 0 |
Minimum [Member] | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] (Deprecated 2022) | |||
Payment term | 30 days | ||
Maximum [Member] | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] (Deprecated 2022) | |||
Payment term | 60 days |
Revenues (Schedule Of Revenues
Revenues (Schedule Of Revenues Disaggregated By Source) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net revenues | $ 1,291,523 | $ 1,095,174 | $ 974,207 | |
Media [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net revenues | 1,033,877 | 936,212 | 868,216 | |
Media [Member] | Network (Including Pay-Per-View) [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net revenues | [1] | 222,017 | 224,967 | 192,361 |
Media [Member] | Core Content Rights Fees [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net revenues | [2] | 596,814 | 566,249 | 531,640 |
Media [Member] | Advertising And Sponsorships [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net revenues | [3] | 66,538 | 71,495 | 65,333 |
Media [Member] | Other Media [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net revenues | [4] | 148,508 | 73,501 | 78,882 |
Live Events [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net revenues | 123,083 | 57,803 | 19,921 | |
Live Events [Member] | Ticket Sales [Member] | North America [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net revenues | 97,907 | 46,301 | 15,206 | |
Live Events [Member] | Ticket Sales [Member] | International [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net revenues | 12,113 | 4,639 | 210 | |
Live Events [Member] | Advertising And Sponsorships [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net revenues | [5] | 4,738 | 896 | 354 |
Live Events [Member] | Other Live Events [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net revenues | [6] | 8,325 | 5,967 | 4,151 |
Consumer Products [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net revenues | 134,563 | 101,159 | 86,070 | |
Consumer Products [Member] | Consumer Product Licensing [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net revenues | 77,532 | 51,982 | 41,675 | |
Consumer Products [Member] | eCommerce [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net revenues | 33,263 | 39,085 | 41,196 | |
Consumer Products [Member] | Venue Merchandise [Member] | ||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||
Net revenues | $ 23,768 | $ 10,092 | $ 3,199 | |
[1] Network revenues consist primarily of license fees associated with the domestic distribution of WWE Network content to NBCU (effective March 18, 2021), as well as subscription fees from customers of WWE Network and license fees associated with our international licensed partner agreements. Network revenues for the year ended December 31, 2021 include the upfront revenue recognition related to the delivery of certain WWE Network intellectual property rights. Core content rights fees consist primarily of licensing revenues from the distribution of our flagship programs, Raw and SmackDown , as well as our NXT programming, through global broadcast, pay television and digital platforms. Advertising and sponsorships revenues within our Media segment consist primarily of advertising revenues from the Company’s content on third-party social media platforms and sponsorship fees from sponsors who promote their products utilizing the Company’s media platforms, including promotion on the Company’s digital websites and on-air promotional media spots. 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 content in international markets, scripted, reality and other programming. Advertising and sponsorships revenues within our Live Events segment primarily consist of fees from advertisers and sponsors who promote their products utilizing the Company’s live events (i.e., presenting sponsor of fan engagement events and advertising signage at the event). Other revenues within our Live Events segment primarily consists of the sale of travel packages associated with the Company’s global live events, as well as revenues from events for which the Company receives a fixed fee . |
Investment Securities And Sho_3
Investment Securities And Short-Term Investments (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Investment Securities And Short-Term Investments [Abstract] | |||
Short-term investments, interest income | $ 4,157 | $ 395 | $ 1,819 |
Investment Securities And Sho_4
Investment Securities And Short-Term Investments (Schedule Of Investment Securities ) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Investment Securities And Short-Term Investments [Abstract] | ||
Nonmarketable equity investments without readily determinable fair values | $ 11,797 | $ 11,618 |
Total investment securities | $ 11,797 | $ 11,618 |
Investment Securities And Sho_5
Investment Securities And Short-Term Investments (Schedule Of Equity Instruments Without Readily Determinable Fair Value) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Investment Securities And Short-Term Investments [Abstract] | ||||
Impairments | [1] | $ (2,715) | ||
Observable price change upward adjustments | ||||
Observable price change downward adjustments | $ (16) | (29) | ||
Total income (loss) from adjustments to nonmarketable equity investments | $ (16) | $ (2,744) | ||
[1] During the year ended December 31, 2020, the Company recorded an impairment charge on our investment in a themed attraction touring company for the excess of the carrying value over its estimated fair value resulting from significant adverse changes in the economic and market conditions caused by COVID-19. These charges are reflected in Other income (expense), net on our Consolidated Statements of Operations. |
Investment Securities And Sho_6
Investment Securities And Short-Term Investments (Schedule Of Short-Term Investments Measured At Fair Value) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 261,728 | $ 281,406 |
Gross Unrealized Gain | 13 | 2 |
Gross Unrealized (Loss) | (3,254) | (451) |
Fair Value | 258,487 | 280,957 |
US Treasury Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 94,287 | 90,278 |
Gross Unrealized (Loss) | (1,095) | (57) |
Fair Value | 93,192 | 90,221 |
Corporate Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 117,947 | 147,102 |
Gross Unrealized Gain | 1 | 1 |
Gross Unrealized (Loss) | (1,435) | (269) |
Fair Value | 116,513 | 146,834 |
Government Agency Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 49,494 | 44,026 |
Gross Unrealized Gain | 12 | 1 |
Gross Unrealized (Loss) | (724) | (125) |
Fair Value | $ 48,782 | $ 43,902 |
Investment Securities And Sho_7
Investment Securities And Short-Term Investments (Schedule Of Contractual Maturities Of Short-Term Investment Bonds) (Details) | 12 Months Ended |
Dec. 31, 2022 | |
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 | 2 years |
Government Agency Bonds [Member] | Minimum [Member] | |
Schedule of Available-for-sale Securities [Line Items] | |
Contractual maturities of bonds | 4 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 | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Investment Securities And Short-Term Investments [Abstract] | |||
Proceeds from sale of short-term investments | $ 27,911 | $ 22,613 | |
Proceeds from maturities and calls of short-term investments | $ 263,789 | 194,149 | 159,703 |
Purchases of short-term investments | $ 245,964 | 374,502 | 153,904 |
Gross realized (losses) gains on sale of short-term investments | $ (2) | $ 64 |
Fair Value Measurement (Narrati
Fair Value Measurement (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Fair Value, Assets, Level 1, Level 2 and Level 3 Transfers, Amount | $ 0 | $ 0 | $ 0 |
Loss on an abandoned project | 240,000 | 175,000 | 1,783,000 |
3.375% Convertible Notes [Member] | Level 2 [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Convertible senior notes | 605,494,000 | 210,076,000 | |
Feature Film Production Assets [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Asset impairment charges | 0 | 313,000 | 3,171,000 |
Fair value of assets | 528,000 | 3,276,000 | |
Long-Lived Property And Equipment [Member] | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Asset impairment charges | $ 0 | $ 0 | $ 0 |
Property And Equipment (Narrati
Property And Equipment (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property And Equipment [Abstract] | |||
Depreciation expense | $ 35,807 | $ 38,609 | $ 38,411 |
Capitalized interest of projects in progress | $ 4,051 |
Property And Equipment (Schedul
Property And Equipment (Schedule Of Property And Equipment) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Gross | $ 575,007 | $ 385,921 |
Less: accumulated depreciation and amortization | (245,866) | (213,244) |
Total | 329,141 | 172,677 |
Land, Buildings And Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross | 158,806 | 154,826 |
Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross | 166,249 | 148,193 |
Corporate Aircraft [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross | 32,249 | 32,249 |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross | 993 | 993 |
Projects In Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross | $ 216,710 | $ 49,660 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) ft² in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Oct. 26, 2021 USD ($) ft² | Nov. 30, 2020 USD ($) | |
Lessee, Lease, Description [Line Items] | ||||
Term of free rent | 18 months | |||
Finance lease term | 15 years | 15 years | ||
Operating lease right-of-use assets | $ 16,278 | $ 8,973 | $ 16,639 | |
Operating lease liability | 16,749 | $ 9,919 | ||
Deferred rent, including interest | $ 5,566 | 6,793 | $ 6,590 | |
Deferred rent repayment term | 5 years | |||
Rentable square feet | ft² | 33 | |||
Rental savings from lease reduction over the remainder of the initial 15-year base term | $ 31,000 | |||
Partial termination fee | $ 6,720 | $ 3,875 | ||
Tenant improvement allowance | 38,051 | |||
Tenant improvement reimbursement received | 34,246 | |||
Lease tenant improvement allowance remaining | $ 3,805 | |||
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 | 9 years | |||
Maximum [Member] | Equipment [Member] | ||||
Lessee, Lease, Description [Line Items] | ||||
Lease term | 7 years | |||
Other Noncurrent Liabilities [Member] | ||||
Lessee, Lease, Description [Line Items] | ||||
Deferred rent, including interest | $ 4,277 | 5,567 | ||
Accounts Payable And Accrued Liabilities [Member] | ||||
Lessee, Lease, Description [Line Items] | ||||
Deferred rent, including interest | $ 1,289 | $ 1,226 |
Leases (Quantitative Informatio
Leases (Quantitative Information About Leases) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Leases [Abstract] | ||||
Amortization of right-of-use assets | $ 18,863 | $ 18,360 | $ 20,172 | |
Interest on lease liabilities | 15,085 | 18,299 | 18,359 | |
Operating lease costs | 4,867 | 6,185 | 5,695 | |
Other short-term and variable lease costs | 2,234 | 1,805 | 1,678 | |
Sublease income | [1] | (35) | (69) | (16) |
Total lease costs | 41,014 | 44,580 | 45,888 | |
Operating cash flows from finance leases | 15,086 | 11,506 | 1,244 | |
Operating cash flows from operating leases | 3,912 | 5,548 | 4,850 | |
Finance cash flows from finance leases | 14,051 | 11,948 | 10,795 | |
Right-of-use assets obtained in exchange for new finance lease liabilities | 22 | 174 | 40,212 | |
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 13,227 | $ 3,457 | $ 2,518 | |
Weighted-average remaining lease term - finance leases | 26 years 4 months 24 days | 27 years | 28 years 9 months 18 days | |
Weighted-average remaining lease term - operating leases | 6 years 6 months | 3 years | 4 years 3 months 18 days | |
Weighted-average discount rate - finance leases | 4% | 4% | 4.80% | |
Weighted-average discount rate - operating leases | 3.40% | 3.50% | 4.30% | |
[1] Sublease income excludes rental income from owned properties. |
Leases (Maturity Of Lease Liabi
Leases (Maturity Of Lease Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Oct. 26, 2021 |
Operating Leases | ||
2023 | $ 4,137 | |
2024 | 2,656 | |
2025 | 2,500 | |
2026 | 2,321 | |
2027 | 2,218 | |
Thereafter | 5,023 | |
Total lease payment | 18,855 | |
Less: imputed interest | (2,106) | |
Total future minimum lease payments | 16,749 | $ 9,919 |
Finance Leases | ||
2023 | 26,328 | |
2024 | 24,855 | |
2025 | 21,711 | |
2026 | 22,070 | |
2027 | 19,512 | |
Thereafter | 519,000 | |
Total lease payment | 633,476 | |
Less: imputed interest | (256,899) | |
Total future minimum lease payments | $ 376,577 |
Content Production Assets, Ne_2
Content Production Assets, Net (Narrative) (Details) | Dec. 31, 2022 |
Content Production Assets, Net [Abstract] | |
Content assets monetized individually over the next year | 80% |
Content Production Assets, Ne_3
Content Production Assets, Net (Schedule Of Content Production Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Predominantly Monetized Individually | ||
In release | $ 3,090 | $ 3,291 |
In production | 13,122 | 9,581 |
In development | 10 | 143 |
Total | 16,222 | 13,015 |
Predominantly Monetized as a Film Group | ||
In release | 7 | 139 |
In production | 289 | 627 |
Total | $ 296 | $ 766 |
Content Production Assets, Ne_4
Content Production Assets, Net (Schedule Of Amortization And Impairment Of Content Production Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Content Production Assets, Net [Abstract] | ||||
Content production amortization expense - assets monetized individually | $ 28,921 | $ 13,720 | $ 17,676 | |
Film, Monetized on Its Own, Amortization Expense, Statement of Income or Comprehensive Income [Extensible Enumeration] | Operating costs and expenses | |||
Content production amortization expense - assets monetized as a film group | $ 3,934 | 5,316 | 5,333 | |
Film, Monetized in Film Group, Amortization Expense, Statement of Income or Comprehensive Income [Extensible Enumeration] | Operating costs and expenses | |||
Content production impairment charges | [1] | 313 | 3,171 | |
Film, Monetized on Its Own, and Film Group, Impairment, Statement of Income or Comprehensive Income [Extensible Enumeration] | Operating costs and expenses | |||
Content production development write-offs | [2] | $ 160 | 365 | 129 |
Total amortization and impairment of content production assets | $ 33,015 | $ 19,714 | $ 26,309 | |
[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 as part of 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. Capitalized script development costs are evaluated at each reporting period for impairment and to determine if a project is deemed to be abandoned. |
Accounts Payable And Accrued _3
Accounts Payable And Accrued Expenses (Narrative) (Details) | Dec. 31, 2022 |
Maximum [Member] | |
Individual accrual categories percentage of current liabilities | 5% |
Accounts Payable And Accrued _4
Accounts Payable And Accrued Expenses (Schedule Of Accounts Payable And Accrued Expenses) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | |
Trade related | $ 9,816 | $ 11,150 | |
Staff related | [1] | 13,828 | 15,558 |
Management incentive compensation | 31,204 | 30,604 | |
Talent related | 6,274 | 4,428 | |
Accrued WWE Network related expenses | 3,331 | 10,950 | |
Accrued event and television production | 11,599 | 9,687 | |
Accrued legal and professional | [2] | 14,980 | 7,706 |
Accrued purchases of property and equipment | 18,567 | 22,207 | |
Accrued income taxes | [3] | 1,415 | |
Accrued other | 11,842 | 10,426 | |
Total | 122,856 | 122,716 | |
Severance costs associated with investigation by independent committee members of Company's Board of Directors | 2,756 | ||
Accrued legal settlements | 9,125 | 2,200 | |
Costs associated with investigation by independent committee members of Company's Board of Directors | $ 1,992 | ||
Income taxes refundable balance | 7,156 | ||
Adoption Impact [Member] | |||
Accrued legal and professional | $ 2,200 | ||
[1] Staff related as of December 31, 2022 includes $ 2,756 of severance costs associated with the investigation by the Special Committee of independent members of the Company’s Board of Directors. Accrued legal and professional as of December 31, 2022 includes $ 1,992 of costs associated with the investigation by the Special Committee of independent members of the Company’s Board of Directors. Additionally, accrued legal and professional as of December 31, 2022 and 2021 include certain amounts of $ 9,125 and $ 2,200 , respectively, to be paid by the Company’s controlling stockholder (see Note 16 for further information). As disclosed in the 2021 Form 10-K/A, the Company determined that certain payments that Mr. McMahon, the Company’s then-Chief Executive Officer, who initially resigned from all positions held with the Company on July 22, 2022 but remains a stockholder with a controlling interest and, as of January 9, 2023 serves as Executive Chairman of the Board of Directors, agreed to make during the period of 2006 through 2022 (including amounts paid and payable in the future) were not appropriately recorded as expenses in the Company’s Consolidated Financial Statements. As a result, the previously reported Consolidated Balance Sheet of the Company as of December 31, 2021 was revised in the 2021 Form 10-K/A to correct these immaterial accounting errors by increasing the Company’s previously reported Accounts payable and accrued expenses by $ 2,200 . At December 31, 2021, income taxes had a refundable balance of $ 7,156 and was included in Prepaid expenses and other current assets on our Consolidated Balance Sheets. |
Convertible Debt (Narrative) (D
Convertible Debt (Narrative) (Details) $ / shares in Units, shares in Thousands | 12 Months Ended | |||
Dec. 12, 2016 $ / shares shares | Dec. 31, 2022 USD ($) item $ / shares | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) shares | |
Debt Instrument [Line Items] | ||||
Convertible note hedge, shares covered by hedge | shares | 8,630 | |||
Shares issuable under warrant agreement | shares | 8,630 | |||
Warrant strike price | $ / shares | $ 31.89 | |||
Percentage of warrant strike price in excess of stock price | 60% | |||
Share Price | $ / shares | $ 19.93 | |||
Convertible Notes [Member] | ASU 2020-06 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, face amount | $ 36,657,000 | |||
Effective interest rate | 6.40% | |||
Amortization of debt issuance costs | $ 5,454,000 | |||
Long-term debt, convertible notes | 215,000,000 | |||
Common Stock [Member] | Convertible Notes [Member] | ASU 2020-06 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt issuance costs | 1,110,000 | |||
Accumulated Deficit [Member] | Convertible Notes [Member] | ASU 2020-06 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt issuance costs | 1,110,000 | |||
3.375% Convertible Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 3.375% | |||
Maturity date | Jun. 15, 2023 | |||
Amortization of debt issuance costs | $ 939,000 | 852,000 | $ 803,000 | |
Conversion ratio, shares | 40.1405 | |||
Conversion price | $ / shares | $ 24.91 | |||
Long-term debt, convertible notes | $ 215,000,000 | $ 215,000,000 | ||
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 | |||
Maturity date | Dec. 15, 2023 | |||
3.375% Convertible Notes [Member] | Conversion Scenario 1 [Member] | ||||
Debt Instrument [Line Items] | ||||
Threshold within consecutive trading days | item | 20 | |||
Threshold of consecutive trading days | item | 30 | |||
3.375% Convertible Notes [Member] | Conversion Scenario 1 [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Stock price trigger percent | 130% | |||
3.375% Convertible Notes [Member] | Conversion Scenario 2 [Member] | ||||
Debt Instrument [Line Items] | ||||
Threshold within consecutive trading days | item | 5 | |||
Threshold of consecutive trading days | item | 10 | |||
Threshold percentage of stock price and conversion rate | 98% | |||
Trading price per amount of convertible notes | item | 1 |
Convertible Debt (Schedule Of C
Convertible Debt (Schedule Of Convertible Notes) (Details) - 3.375% Convertible Notes [Member] - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | |||
Principal | $ 215,000 | $ 215,000 | |
Less: Unamortized debt discount | [1] | (11,968) | |
Less: Unamortized debt issuance costs | [2] | (900) | (1,939) |
Net carrying amount | $ 214,100 | 201,093 | |
Equity component | [3] | $ 35,547 | |
[1] The debt discount associated with the Convertible Notes was derecognized upon adoption of ASU 2020-06 on January 1, 2022. Unamortized debt issuance costs as of December 31, 2022 reflects the adoption impact from ASU 2020-06 described above. The equity component of the Convertible Notes, net of deferred income taxes, was derecognized upon adoption of ASU 2020-06 on January 1, 2022. |
Convertible Debt (Schedule Of I
Convertible Debt (Schedule Of Interest Expense Recognized) (Details) - 3.375% Convertible Notes [Member] - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Debt Instrument [Line Items] | ||||
3.375% contractual coupon | $ 7,256 | $ 7,256 | $ 7,256 | |
Amortization of debt discount | [1] | 5,557 | 5,213 | |
Amortization of debt issuance costs | 939 | 852 | 803 | |
Interest expense | $ 8,195 | $ 13,665 | $ 13,272 | |
Interest rate | 3.375% | |||
[1] The Company adopted ASU 2020-06 on January 1, 2022 using the modified retrospective method. Prior year reported amounts were not revised and are presented in accordance with accounting rules prior to the adoption of ASU 2020-06. |
Long-Term Debt And Credit Fac_3
Long-Term Debt And Credit Facility (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2020 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | |||
Proceeds from borrowings under the credit facility | $ 200,000,000 | ||
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. 05, 2025 | ||
Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Credit Facility borrowing capacity | $ 200,000,000 | ||
Credit Facility unutilized commitment fee rate | 0.15% | ||
Credit Facility available debt capacity | $ 200,000,000 | ||
Credit Facility amount outstanding | $ 0 | $ 0 | |
Revolving Credit Facility [Member] | LIBOR [Member] | |||
Debt Instrument [Line Items] | |||
Credit Facility interest rate | 5.77% | ||
Maximum [Member] | Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Credit Facility maturity date | May 24, 2024 |
Long-Term Debt And Credit Fac_4
Long-Term Debt And Credit Facility (Schedule Of Debt) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Current portion of long-term debt | $ 449 | $ 430 |
Long-term debt | 20,848 | 21,284 |
Debt | 21,297 | 21,714 |
Mortgage [Member] | ||
Debt Instrument [Line Items] | ||
Current portion of long-term debt | 449 | 430 |
Long-term debt | 20,848 | $ 21,284 |
Debt | $ 21,297 |
Long-Term Debt And Credit Fac_5
Long-Term Debt And Credit Facility (Schedule of Principal Repayments Under Note Obligation) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Debt | $ 21,297 | $ 21,714 |
Mortgage [Member] | ||
Debt Instrument [Line Items] | ||
December 31, 2023 | 449 | |
December 31, 2024 | 470 | |
December 31, 2025 | 20,378 | |
Debt | $ 21,297 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Aug. 16, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Taxes [Abstract] | ||||
Deferred tax assets, net | $ 45,619 | $ 13,100 | ||
U.S. federal statutory income tax rate | 21% | 21% | 21% | |
Effective income tax rate on (loss) income from continuing operations | 26% | 22.80% | 23% | |
Corporate alternative minimum tax for certain large corporations | 15% | |||
Excise tax on certain stock repurchases made by publicly traded companies | 1% | |||
Foreign withholding taxes paid on income | $ 33,797 | $ 6,840 | $ 24,106 | |
Tax benefit from share based compensation | 9,983 | 11,234 | 27,349 | |
Excess tax benefits related to the vesting of share-based compensation | (430) | 524 | 388 | |
Valuation allowances | 1,050 | 1,118 | ||
Previously unrecognized tax benefits recognized | 29 | 70 | ||
Potential interest and penalties related to uncertain tax positions | 39 | 34 | ||
Unrecognized tax benefits | 86 | 68 | $ 130 | |
Accrued interest | 25 | 23 | ||
Accrued penalties | 14 | $ 11 | ||
Estimated decrease of previously unrecognized tax benefits | $ (29) |
Income Taxes (Schedule Of Compo
Income Taxes (Schedule Of Components Of Tax Provision) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Taxes [Abstract] | |||
Current taxes: Federal | $ 61,587 | $ 40,389 | $ 9,386 |
Current taxes: State and local | 16,684 | 7,985 | 8,843 |
Current taxes: Foreign | 19,170 | 7,126 | 23,945 |
Deferred taxes: Federal | (27,021) | (2,499) | (1,391) |
Deferred taxes: State and local | (1,657) | (528) | (1,445) |
Deferred taxes: Foreign | 30 | (19) | |
Provision for income taxes | $ 68,793 | $ 52,454 | $ 39,338 |
Income Taxes (Schedule Of Com_2
Income Taxes (Schedule Of Components Of (Loss) Income Before Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Taxes [Abstract] | |||
United States | $ 263,415 | $ 228,578 | $ 170,668 |
Foreign | 966 | 1,284 | 441 |
Income before income taxes | $ 264,381 | $ 229,862 | $ 171,109 |
Income Taxes (Schedule Of Effec
Income Taxes (Schedule Of Effective Income Tax Rate Reconciliation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Taxes [Abstract] | |||
Statutory U.S. federal tax | $ 55,520 | $ 48,271 | $ 35,930 |
State and local taxes, net of federal tax benefit | 10,199 | 5,890 | 5,061 |
Foreign rate differential | (43) | (5) | 38 |
Nondeductible executive compensation | 6,351 | 3,159 | 2,427 |
Unrecognized tax benefits | 12 | (56) | (127) |
Meals and entertainment | 3 | 2 | 119 |
Employee Stock Purchase Plan | 161 | 122 | 53 |
Foreign-derived intangible income (FDII) | (7,322) | (5,628) | (4,892) |
Withholding tax (non-creditable) | 2,525 | ||
Global intangible low-taxed income (GILTI) | 216 | 231 | 175 |
Excess tax benefits related to the vesting of share-based compensation | (430) | 524 | 388 |
Other | 1,601 | (56) | 166 |
Provision for income taxes | $ 68,793 | $ 52,454 | $ 39,338 |
Income Taxes (Schedule Of Defer
Income Taxes (Schedule Of Deferred Tax Assets And Deferred Tax Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Income Taxes [Abstract] | ||
Accounts receivable | $ 1,163 | $ 1,150 |
Inventory | 211 | 384 |
Deferred income | 8,460 | 7,815 |
Stock compensation | 3,107 | 3,323 |
Net operating loss carryforward | 1,050 | 1,118 |
Foreign tax credits | 19,170 | |
Investments | 1,444 | 121 |
Intangible assets | 1,730 | 1,700 |
Capitalized content production costs | 1,827 | 2,164 |
Accrued liabilities and reserves | 1,840 | 1,737 |
Lease obligations | 22,338 | 10,719 |
Federal benefit related to uncertain tax positions | 19 | 23 |
Deferred tax assets, gross | 62,359 | 30,254 |
Valuation allowance | (1,050) | (1,118) |
Deferred tax assets, net | 61,309 | 29,136 |
Property and equipment depreciation | (10,948) | (12,514) |
Right-of-use assets | (3,695) | (1,778) |
Investments | (1,047) | (1,744) |
Deferred tax liabilities | (15,690) | (16,036) |
Total deferred tax assets, net | $ 45,619 | $ 13,100 |
Income Taxes (Schedule Of Unrec
Income Taxes (Schedule Of Unrecognized Tax Benefit Activity) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income Taxes [Abstract] | ||
Beginning Balance | $ 68 | $ 130 |
Increase to unrecognized tax benefits recorded for positions taken during the current year | 10 | 8 |
Increase to unrecognized tax benefits recorded for positions taken during a prior period | 37 | |
Decrease to unrecognized tax benefits resulting from a lapse of the applicable statute of limitations | (29) | (70) |
Ending Balance | $ 86 | $ 68 |
Content Production Incentives_2
Content Production Incentives (Schedule Of Content Production Incentives) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Content Production Incentives [Abstract] | ||||
Television production incentives | [1] | $ 13,796 | $ 13,845 | $ 18,367 |
Feature film production incentives | [2] | |||
Infrastructure improvement incentives on qualifying capital projects | [3] | 4,329 | ||
Total | $ 13,796 | 18,174 | $ 18,367 | |
Reduction in property and equipment | $ 3,290 | |||
[1] Tax incentives earned with respect to expenditures on qualifying television and other production activities are recorded as an offset to production expenses within Operating expenses within our Consolidated Statements of Operations. Tax incentives earned with respect to expenditures on qualifying film production activities are included as an offset to Content production assets, net within our Consolidated Balance Sheets. Tax incentives earned with respect to expenditures on qualifying capital projects are included as an offset to Property and equipment, net within our Consolidated Balance Sheets. During the year ended December 31, 2021, $ 3,290 of the total incentive was recorded as a reduction in property and equipment, net with the remainder recorded as a reduction to depreciation expense |
Commitments And Contingencies_2
Commitments And Contingencies (Schedule of Future Minimum Payments Under Agreements) (Details) - Service Contracts And Talent Commitments [Member] $ in Thousands | Dec. 31, 2022 USD ($) |
Other Commitments [Line Items] | |
2023 | $ 54,224 |
2024 | 26,603 |
2025 | 15,859 |
2026 | 10,645 |
2027 | 250 |
Thereafter | 1,250 |
Total | $ 108,831 |
Related Party Transactions (Nar
Related Party Transactions (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | 36 Months Ended | 204 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2009 | Dec. 31, 2022 | |
Related Party Transaction [Line Items] | |||||
Unrecorded expenses | $ 19,600 | ||||
Unrecorded expenses in period | $ 5,000 | 14,600 | |||
Unrecorded expenses liability | $ 11,825 | $ 6,600 | $ 11,825 | ||
Chief Executive Officer [Member] | |||||
Related Party Transaction [Line Items] | |||||
Unrecorded expenses in period | 2,200 | 1,200 | $ 1,200 | ||
Related party transactions, future payments | $ 7,425 | $ 3,000 |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) item $ / shares shares | Dec. 31, 2021 USD ($) $ / shares shares | Dec. 31, 2020 USD ($) $ / shares shares | |
Authorized stock repurchase, amount | $ 500,000 | ||
Repurchase and retirement of common stock, Shares | shares | 694,857 | 3,251,313 | 0 |
Average share price | $ / shares | $ 57.57 | $ 50.94 | |
Repurchase and retirement of common stock | $ 40,006 | $ 165,630 | |
Remaining authorized stock repurchase, amount | $ 210,924 | ||
Common stock conversion basis | 1 | ||
Quarterly dividends paid per share | $ / shares | $ 0.12 | $ 0.12 | $ 0.12 |
Class B Common Stock [Member] | |||
Number of votes | item | 10 | ||
Class A Common Stock [Member] | |||
Number of votes | item | 1 | ||
Chief Executive Officer [Member] | |||
Non-cash capital contributions included in stock issuances and other, net | $ 2,700 | $ 1,200 | $ 1,200 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Mar. 31, 2022 USD ($) | Sep. 30, 2020 USD ($) item | Dec. 31, 2022 USD ($) item shares | Dec. 31, 2021 USD ($) shares | Dec. 31, 2020 USD ($) shares | Sep. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares available for future grants | shares | 2,900,000 | ||||||
Stock-based compensation expense | $ 34,944 | $ 19,086 | $ 27,989 | ||||
Common stock reserved for issuance | shares | 1,300,000 | ||||||
Restricted Stock Units (RSUs) [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Requisite service period | 3 years 6 months | ||||||
Total unrecognized stock-based compensation expense | $ 14,777 | ||||||
Weighted-average period of recognition | 1 year 10 months 24 days | ||||||
Aggregate value | $ 10,000 | ||||||
Number of tranches | item | 5 | ||||||
Units outstanding | shares | 467,798 | 300,003 | |||||
Awards granted | shares | 367,887 | ||||||
Performance Stock Units (PSUs) [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Requisite service period | 3 years 6 months | ||||||
Total unrecognized stock-based compensation expense | $ 45,048 | ||||||
Weighted-average period of recognition | 2 years 4 months 24 days | ||||||
Aggregate value | $ 18,000 | ||||||
Units outstanding | shares | 1,015,085 | 433,267 | |||||
Awards granted | shares | 1,077,784 | 304,726 | 133,069 | ||||
Increase (decrease) in units | shares | (21,875) | ||||||
Performance Stock Units (PSUs) [Member] | Executive Officers [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Authorized award | $ 22,500 | $ 15,000 | |||||
Number of tranches | item | 2 | ||||||
Liability portion of award | $ 2,466 | $ 6,928 | |||||
Increase (decrease) in units | shares | (105,125) | ||||||
Performance Stock Units, Market Condition [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Total unrecognized stock-based compensation expense | $ 308 | ||||||
Weighted-average period of recognition | 1 year 3 months 18 days | ||||||
Performance issuance as percent or original grant, in the event of negative shareholder return | 100% | ||||||
Units outstanding | shares | 34,098 | 47,736 | |||||
Increase (decrease) in units | shares | 10,229 | ||||||
Number of performance periods | item | 5 | ||||||
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% | ||||||
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% | ||||||
RSUs, PSUs and PSU-TSRs [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock-based compensation expense | $ 33,166 | $ 17,503 | $ 26,737 | ||||
First Tranche [Member] | Performance Stock Units (PSUs) [Member] | Executive Officers [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Authorized award | $ 6,000 | ||||||
Vesting per tranche | 27% | 27% | |||||
Award per tranche | $ 6,000 | ||||||
Second Tranche [Member] | Performance Stock Units (PSUs) [Member] | Executive Officers [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Authorized award | $ 16,500 | ||||||
Vesting per tranche | 73% | 73% | |||||
Award per tranche | $ 16,500 | ||||||
Five Annual Tranches [Member] | Restricted Stock Units (RSUs) [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting per tranche | 20% | ||||||
2021 PSU Grant [Member] | Performance Stock Units (PSUs) [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Increase (decrease) in units | shares | (83,250) | ||||||
Employee Stock Purchase Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Employee base compensation contribution percentage | 10% | ||||||
Purchase price percentage of fair market value | 85% | ||||||
Shares of common stock purchased | shares | 56,706 | 59,685 | 57,020 | ||||
Stock-based compensation expense | $ 925 | $ 598 | $ 473 |
Stock-Based Compensation (Summa
Stock-Based Compensation (Summary Of RSU Activity) (Details) - Restricted Stock Units (RSUs) [Member] | 12 Months Ended |
Dec. 31, 2022 $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Units, Unvested at January 1, 2022 | shares | 300,003 |
Units, Granted | shares | 367,887 |
Units, Vested | shares | (143,532) |
Units, Forfeited | shares | (60,247) |
Units, Dividend equivalents | shares | 3,687 |
Units, Unvested at December 31, 2022 | shares | 467,798 |
Weighted-Average Grant-Date Fair Value, Unvested at January 1, 2022 | $ / shares | $ 55.03 |
Weighted-Average Grant-Date Fair Value, Granted | $ / shares | 55.38 |
Weighted-Average Grant-Date Fair Value, Vested | $ / shares | 57.45 |
Weighted-Average Grant-Date Fair Value, Forfeited | $ / shares | 53 |
Weighted-Average Grant-Date Fair Value, Dividend equivalents | $ / shares | 54.54 |
Weighted-Average Grant-Date Fair Value, Unvested at December 31, 2022 | $ / shares | $ 54.76 |
Stock-Based Compensation (Sched
Stock-Based Compensation (Schedule Of RSU Stock-Based Compensation Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Tax benefits realized | $ 9,983 | $ 11,234 | $ 27,349 |
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Tax benefits realized | 5,561 | 6,310 | 14,319 |
Weighted-average grant-date fair value of units granted | 20,373 | 15,061 | 16,106 |
Fair value of units vested | $ 8,245 | $ 7,101 | $ 13,434 |
Stock-Based Compensation (Sum_2
Stock-Based Compensation (Summary Of PSU Activity) (Details) - Performance Stock Units (PSUs) [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Units, Unvested at January 1, 2022 | 433,267 | ||
Units, Granted | 1,077,784 | 304,726 | 133,069 |
Units, Achievement adjustment | (21,875) | ||
Units, Vested | (172,961) | ||
Units, Forfeited | (303,232) | ||
Units, Dividend equivalents | 2,102 | ||
Units, Unvested at December 31, 2022 | 1,015,085 | 433,267 | |
Weighted-Average Grant-Date Fair Value, Unvested at January 1, 2022 | $ 50.14 | ||
Weighted-Average Grant-Date Fair Value, Granted | 68.52 | ||
Weighted-Average Grant-Date Fair Value, Achievement adjustment | 64.40 | ||
Weighted-Average Grant-Date Fair Value, Vested | 53.76 | ||
Weighted-Average Grant-Date Fair Value, Forfeited | 66.99 | ||
Weighted-Average Grant-Date Fair Value, Dividend equivalents | 49 | ||
Weighted-Average Grant-Date Fair Value, Unvested at December 31, 2022 | $ 65.04 | $ 50.14 |
Stock-Based Compensation (Sum_3
Stock-Based Compensation (Summary Of PSU-TSR Activity) (Details) - Performance Stock Units, Market Condition [Member] | 12 Months Ended |
Dec. 31, 2022 $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Units, Unvested at January 1, 2022 | shares | 47,736 |
Units, Achievement adjustment | shares | 10,229 |
Units, Vested | shares | (23,912) |
Units, Dividend equivalents | shares | 45 |
Units, Unvested at December 31, 2022 | shares | 34,098 |
Weighted-Average Grant-Date Fair Value, Unvested at January 1, 2022 | $ / shares | $ 47.28 |
Weighted-Average Grant-Date Fair Value, Achievement adjustment | $ / shares | 47.30 |
Weighted-Average Grant-Date Fair Value, Vested | $ / shares | 47.45 |
Weighted-Average Grant-Date Fair Value, Dividend equivalents | $ / shares | 47.30 |
Weighted-Average Grant-Date Fair Value, Unvested at December 31, 2022 | $ / shares | $ 47.30 |
Stock-Based Compensation (Sch_2
Stock-Based Compensation (Schedule Of PSU Stock-Based Compensation Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Tax benefits realized | $ 9,983 | $ 11,234 | $ 27,349 |
Performance Stock Units (PSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Tax benefits realized | 4,422 | 4,824 | 13,030 |
Weighted-average grant-date fair value of units granted | 73,850 | 15,035 | 19,592 |
Fair value of units vested | $ 9,298 | $ 13,021 | $ 20,830 |
Stock-Based Compensation (Sch_3
Stock-Based Compensation (Schedule Of PSU-TSR Stock-Based Compensation Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Tax benefits realized | $ 9,983 | $ 11,234 | $ 27,349 |
Performance Stock Units, Market Condition [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Tax benefits realized | |||
Fair value of units vested | $ 1,135 | $ 732 | $ 830 |
Employee Benefit Plans (Narrati
Employee Benefit Plans (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Employee Benefit Plans [Abstract] | |||
Matching contributions | 50% | ||
Percentage of eligible compensation | 6% | ||
Expense for matching contributions | $ 3,130,000 | $ 3,119,000 | $ 2,968,000 |
Discretionary contributions | $ 0 | $ 0 | $ 0 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) segment customer | Dec. 31, 2021 USD ($) customer | Dec. 31, 2020 USD ($) customer | |
Segment Reporting Information [Line Items] | |||
Number of reportable segments | segment | 3 | ||
Number of major customers | customer | 3 | 2 | 2 |
Net revenues | $ 1,291,523 | $ 1,095,174 | $ 974,207 |
Customer One [Member] | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 455,000 | 412,000 | 270,000 |
Customer Two [Member] | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 205,000 | $ 200,000 | $ 183,000 |
Customer Three [Member] | |||
Segment Reporting Information [Line Items] | |||
Net revenues | $ 110,000 |
Segment Information (Summary Of
Segment Information (Summary Of Financial Information For Reportable Segments) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||
Total net revenues | $ 1,291,523 | $ 1,095,174 | $ 974,207 |
Total depreciation and amortization | 37,287 | 40,901 | 42,616 |
Total Adjusted OIBDA | 384,580 | 324,111 | 286,188 |
Media [Member] | |||
Segment Reporting Information [Line Items] | |||
Total net revenues | 1,033,877 | 936,212 | 868,216 |
Total depreciation and amortization | 14,766 | 13,427 | 15,119 |
Total Adjusted OIBDA | 428,695 | 390,506 | 367,818 |
Live Events [Member] | |||
Segment Reporting Information [Line Items] | |||
Total net revenues | 123,083 | 57,803 | 19,921 |
Total depreciation and amortization | 41 | 43 | 23 |
Total Adjusted OIBDA | 27,163 | 7,652 | (17,655) |
Consumer Products [Member] | |||
Segment Reporting Information [Line Items] | |||
Total net revenues | 134,563 | 101,159 | 86,070 |
Total depreciation and amortization | 245 | 178 | 8 |
Total Adjusted OIBDA | 56,643 | 35,530 | 26,638 |
Corporate [Member] | |||
Segment Reporting Information [Line Items] | |||
Total depreciation and amortization | 22,235 | 27,253 | 27,466 |
Total Adjusted OIBDA | $ (127,921) | $ (109,577) | $ (90,613) |
Segment Information (Reconcilia
Segment Information (Reconciliation Of Total Operating Income To Total Adjusted OIBDA) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Segment Information [Abstract] | ||||
Operating income | $ 283,225 | $ 256,017 | $ 208,544 | |
Depreciation and amortization | 37,287 | 40,901 | 42,616 | |
Stock-based compensation | 34,944 | 19,086 | 27,989 | |
Other adjustments | [1] | 29,124 | 8,107 | 7,039 |
Total Adjusted OIBDA | 384,580 | $ 324,111 | $ 286,188 | |
Costs associated with investigation by independent committee members | 21,699 | |||
Expenses related to certain payments to be made by company controlling stockholder | $ 7,425 | |||
[1] Other adjustments for the year ended December 31, 2022 include $ 21,699 of professional fees and severance expenses associated with the investigation by the Special Committee of independent members of the Company’s Board of Directors, as well as $ 7,425 of expenses related to certain payments to be made by the Company’s controlling stockholder. Other adjustments for the year ended December 31, 2021 include severance expenses primarily associated with the combination of WWE’s television, digital and studios teams into one organization. Other adjustments for the year ended December 31, 2020 include severance expenses associated with a reduction in our workforce as a result of COVID-19. |
Segment Information (Schedule O
Segment Information (Schedule Of Net Revenues By Major Geographic Region) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||
Total net revenues | $ 1,291,523 | $ 1,095,174 | $ 974,207 |
North America [Member] | |||
Segment Reporting Information [Line Items] | |||
Total net revenues | 1,000,381 | 873,686 | 764,938 |
Europe/Middle East/Africa [Member] | |||
Segment Reporting Information [Line Items] | |||
Total net revenues | 216,646 | 147,978 | 135,876 |
Asia Pacific [Member] | |||
Segment Reporting Information [Line Items] | |||
Total net revenues | 62,089 | 61,852 | 62,327 |
Latin America [Member] | |||
Segment Reporting Information [Line Items] | |||
Total net revenues | $ 12,407 | $ 11,658 | $ 11,066 |
Concentration Of Credit Risk (N
Concentration Of Credit Risk (Narrative) (Details) - Customer Concentration Risk [Member] - Accounts Receivable [Member] - customer | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Concentration Risk [Line Items] | ||
Concentration risk, number of customers | 0 | 2 |
Customer One [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 19% | 38% |
Customer Two [Member] | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 26% |
Valuation And Qualifying Acco_2
Valuation And Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Allowance For Doubtful Accounts [Member] | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at Beginning of Year | $ 4,841 | $ 3,660 | $ 419 | |
Charges to Expense/Against Revenues | 343 | 1,260 | 3,572 | |
Deductions/Adjustments | [1] | (331) | (79) | (331) |
Balance at End of Year | 4,853 | 4,841 | 3,660 | |
Home Video Allowance For Returns [Member] | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at Beginning of Year | 307 | 350 | 349 | |
Deductions/Adjustments | [1] | (110) | (43) | 1 |
Balance at End of Year | 197 | 307 | 350 | |
Allowance For WWE Network Refunds And Chargebacks [Member] | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Balance at Beginning of Year | 7 | 40 | 50 | |
Charges to Expense/Against Revenues | 46 | 158 | 452 | |
Deductions/Adjustments | [1] | (48) | (191) | (462) |
Balance at End of Year | $ 5 | $ 7 | $ 40 | |
[1] Includes deductions which are comprised primarily of write-offs of specific bad debts and returns of products, as well as certain adjustments to the allowance account, including reserves for amounts due from customers that have not been recognized as revenue. |