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Revenue Recognition
 6 Months Ended
Jun. 30, 2023
Revenue from Contract with Customer [Abstract]  
Revenue Recognition Revenue Recognition
Contract Balances
Our contract assets relate to the Trademark Licensing revenue stream where arrangements are typically long-term and non-cancelable. Contract assets are reclassified to accounts receivable when the right to bill becomes unconditional. Our contract liabilities consist of billings or payments received in advance of revenue recognition and are recognized as revenue when transfer of control to customers has occurred. Contract assets and contract liabilities are netted on a contract-by-contract basis. Contract assets were $10.5 million and $16.2 million as of June 30, 2023 and December 31, 2022, respectively. Contract liabilities were $34.8 million and $31.9 million as of June 30, 2023 and December 31, 2022, respectively, which excludes $0.3 million of contract liabilities included in liabilities held for sale in the condensed consolidated balance sheets as of December 31, 2022. The changes in such contract balances during the six months ended June 30, 2023 primarily relate to (i) $22.1 million of revenues recognized that were included in gross contract liabilities at December 31, 2022, (ii) a $2.3 million increase in contract liabilities due to cash received in advance or consideration to which we are entitled remaining in the net contract liability balance at period-end, (iii) $22.0 million of contract assets reclassified into accounts receivable as the result of rights to consideration becoming unconditional, and (iv) a $6.1 million decrease in contract assets primarily due to impairment of certain trademark licensing contracts and certain contract modifications and terminations.
Contract assets were $17.2 million and $17.4 million as of June 30, 2022 and December 31, 2021, respectively. Contract liabilities, excluding liabilities recorded as held for sale in the condensed consolidated balance sheets, were $51.9 million and $52.5 million as of June 30, 2022 and December 31, 2021, respectively. The changes in such contract balances, excluding changes recorded as discontinued operations in the condensed consolidated statements of operations, during the six months ended June 30, 2022 primarily relate to (i) $27.5 million of revenues recognized that were included in gross contract liabilities at December 31, 2021, (ii) a $2.0 million increase in contract liabilities due to cash received in advance or consideration to which we are entitled remaining in the net contract liability balance at period-end, and (iii) $24.3 million of contract assets reclassified into accounts receivable as a result of rights to consideration becoming unconditional.
Future Performance Obligations
In the second quarter of 2023, we reviewed the revenue recognition for certain of our licensees pursuant to their contract modifications and expected collectability, which resulted in the impairment of corresponding assets of $11.2 million, net of a $1.2 million reduction in related commission accrual. The decrease in revenue from such licensees was $3.1 million and $6.7 million during the three and six months ended June 30, 2023, respectively compared to the comparable prior year periods. Due to the impact of the weakening economy in China, collections have slowed, and we have been in discussions with our partners to renegotiate terms of certain agreements. Future contract modifications and collectability issues could impact the revenue recognized against our ongoing contract assets.
As of June 30, 2023, unrecognized revenue attributable to unsatisfied and partially unsatisfied performance obligations under our long-term contracts was $193.9 million, of which $187.0 million relates to Trademark Licensing, $5.3 million relates to Digital Subscriptions and Products, and $1.6 million relates to other obligations.
Unrecognized revenue of the Trademark Licensing revenue stream will be recognized over the next ten years, of which 75% will be recognized in the first five years. Unrecognized revenue of the Digital Subscriptions and Products revenue stream will be recognized over the next five years, of which 38% will be recognized in the first year. Unrecognized revenues under contracts disclosed above do not include contracts for which variable consideration is determined based on the customer’s subsequent sale or usage.
Disaggregation of Revenue
The following table disaggregates revenue by type (in thousands), excluding revenues from discontinued operations:
Three Months Ended June 30, 2023Six Months Ended June 30, 2023
LicensingDirect-to-ConsumerDigital Subscription and ContentOtherTotalLicensingDirect-to-ConsumerDigital Subscription and ContentOtherTotal
Trademark licensing$10,288 $— $— $— $10,288 $19,982 $— $— $— $19,982 
Digital subscriptions and products— — 3,097 1 3,098 — — 5,786 4 5,790 
TV and cable programming— — 2,015 — 2,015 — — 4,064 — 4,064 
Consumer products— 19,700 — — 19,700 — 40,468 — — 40,468 
Total revenues$10,288 $19,700 $5,112 $1 $35,101 $19,982 $40,468 $9,850 $4 $70,304 
Three Months Ended June 30, 2022Six Months Ended June 30, 2022
LicensingDirect-to-ConsumerDigital Subscription and ContentOtherTotalLicensingDirect-to-ConsumerDigital Subscription and ContentOtherTotal
Trademark licensing$15,876 $— $— $— $15,876 $30,437 $— $— $— $30,437 
Magazine, digital subscriptions and products— — 2,347 243 2,590 — — 4,647 678 5,325 
TV and cable programming— — 2,347 — 2,347 — — 4,787 — 4,787 
Consumer products— 27,068 — — 27,068 — 54,392 — — 54,392 
Total revenues$15,876 $27,068 $4,694 $243 $47,881 $30,437 $54,392 $9,434 $678 $94,941 
The following table disaggregates revenue by point-in-time versus over time (in thousands), excluding revenues from discontinued operations:
Three Months Ended June 30,Six Months Ended June 30,
2023202220232022
Point in time$20,801 $27,137 $42,144 $54,531 
Over time14,300 20,744 28,160 40,410 
Total revenues$35,101 $47,881 $70,304 $94,941