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Segment Information
 6 Months Ended
Jun. 30, 2024
Segment Information [Abstract]  
Segment Information
11.Segment information

 

The Company has five operating segments, Falcon’s Creative Group, PDP, Sierra Parima, Destinations Operations and Falcon’s Beyond Brands, all of which are reportable segments. The Company’s Chief Operating Decision Makers are its Executive Chairman and Chief Executive Officer, who review financial information for purposes of making operating decisions, assessing financial performance, and allocating resources. Operating segments are organized based on product lines and, for our location-based entertainment, by geography. Results of operating segments include costs directly attributable to the segment including project costs, payroll and payroll-related expenses and overhead directly related to the business segment operations. Unallocated corporate expenses which include payroll and related benefits for executive, accounting, finance, marketing, human resources, legal and information technology support services, audit, tax corporate legal expenses are presented as Unallocated corporate overhead as a reconciling item between total income (losses) from reportable segments and the Company’s unaudited condensed consolidated financial statement results.

 

Falcon’s Creative Group provides master planning, media, interactive and audio production, project management, experiential technology and attraction hardware development services and attraction hardware sales on a work-for-hire model. Pursuant to the Subscription Agreement, Falcon’s Creative Group is now deconsolidated effective July 27, 2023, and accounted for as an equity method investment in the Company’s unaudited condensed consolidated financial statements. The operating segment still remains a reportable segment for the Company.

 

The Company’s equity method investments, PDP and Sierra Parima (before Katmandu Park DR was closed to visitors on March 7, 2024), develop, own and operate hotels, theme parks and retail, dining and entertainment venues. Destinations Operations provides development and management services for themed entertainment to PDP, Sierra Parima and new development opportunities, including our investment in Karnival. The Company collectively refers to the Destination Operations, PDP and Sierra Parima as Falcon’s Beyond Destinations.

 

Reportable segments’ measure of profit and loss is earnings before interest, taxes, foreign exchange gain (loss), impairments, depreciation and amortization and change in fair values in warrant and earnout liabilities. See Note 7 – Related party transactions for transactions between the Company’s wholly-owned businesses and equity method investments.

 

   Three months ended June 30, 2024 
   Falcon’s   Falcon’s Beyond Destinations   Falcons       Unallocated     
   Creative
Group		   Destination
Operations		   PDP   Beyond
Brands		   Intersegment
eliminations		   corporate
overhead		   Total 
Revenue  $
   $101   $
-
   $
-
   $
         -
   $1,697   $1,798 
Share of gain or (loss) from equity method investments    988    76    656    
-
    
-
    
-
    1,720 
Segment income (loss) from operations   988    (339)   656    (794)   
-
    (2,309)   (1,798)
Depreciation and amortization expense                                 (2)
Interest expense                                 (438)
Interest income                                 3 
Change in fair value of warrant liabilities                                 (2,599)
Change in fair value of earnout liabilities                                 13,006 
Foreign exchange transaction loss                                 (144)
Net income                                $8,028 

 

   Three months ended June 30, 2023 
   Falcon’s   Falcon’s Beyond Destinations   Falcons       Unallocated     
   Creative Group   Destination Operations   PDP   Sierra Parima   Beyond Brands   Intersegment eliminations   corporate overhead   Total 
                                 
Revenue  $5,245   $106   $
     —
   $
—
   $4   $(33)  $
—
   $5,322 
Share of gain or (loss) from equity method investments   
—
    126    284    (1,264)   
—
    (2)   
—
    (856)
Segment income (loss)   (315)   (251)   284    (1,264)   (1,223)   (16)   (5,480)   (8,265)
Depreciation and amortization expense                                      (174)
Interest expense                                      (295)
Interest income                                      45 
Foreign exchange transaction loss                                      (129)
Income tax benefit                                      16 
Net loss                                     $(8,802)

   Six months ended June 30, 2024 
   Falcon’s   Falcon’s Beyond Destinations   Falcons       Unallocated     
   Creative Group   Destination Operations   PDP   Beyond Brands   Intersegment eliminations   corporate overhead   Total 
Revenue  $
-
   $99   $   $   $               $3,215   $3,314 
Share of gain from equity method investments   1,521    163    1,190                   2,874 
Segment income (loss) from operations   1,521    (753)   1,190    (1,457)        (6,457)   (5,956)
Depreciation and amortization expense                                 (3)
Loss on sale of assets                                 (2)
Interest expense                                 (707)
Interest income                                 6 
Change in fair value of warrant liabilities                                 (2,391)
Change in fair value of earnout liabilities                                 131,621 
Foreign exchange transaction loss                                 (517)
Income tax benefit                                 1 
Net income                                $122,052 

 

   Six months ended June 30, 2023 
   Falcon’s   Falcon’s Beyond Destinations   Falcons       Unallocated     
   Creative Group   Destination Operations   PDP   Sierra Parima   Beyond Brands   Intersegment eliminations   corporate overhead   Total 
                                 
Revenue  $13,247   $106   $
        —
   $
—
   $1,481   $(318)  $
—
   $14,516 
Share of gain or (loss) from equity method investments        128    375    (2,636)        (2)        (2,135)
Segment income (loss)   (728)   (798)   375    (2,636)   (1,094)   (242)   (11,981)   (17,104)
Depreciation and amortization expense                                      (1,516)
Interest expense                                      (566)
Other income                                      45 
Foreign exchange transaction gain                                      470 
Income tax benefit                                      19 
Net loss                                     $(18,652)