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Revenue Recognition | 9 Months Ended
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Sep. 30, 2023
Revenue from Contract with Customer [Abstract] |
Revenue Recognition | Revenue Recognition Contract Balances Our contract assets relate to our 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 $10.4 million and $16.2 million as of September 30, 2023 and December 31, 2022, respectively. Contract liabilities were $17.6 million and $31.9 million as of September 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 nine months ended September 30, 2023 primarily relate to (i) $31.5 million of revenues recognized that were included in gross contract liabilities at December 31, 2022, (ii) a $2.7 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) a $11.4 million write-down of contract liabilities due to impairment of a trademark licensing agreement, (iv) $25.1 million of contract assets reclassified into accounts receivable as the result of rights to consideration becoming unconditional, and (v) a $6.6 million decrease in contract assets primarily due to impairment of certain trademark licensing contracts and certain contract modifications and terminations. Contract assets were $16.7 million and $17.4 million as of September 30, 2022 and December 31, 2021, respectively. Accounts receivable as of September 30, 2022 and December 31, 2021 were $12.1 million and $13.3 million, respectively, which excludes assets held for sale of $0.5 million and $0.8 million, respectively. Contract liabilities were $33.5 million and $52.5 million as of September 30, 2022 and December 31, 2021, respectively, which excludes $0.8 million and $1.1 million of contract liabilities included in liabilities held for sale in the condensed consolidated balance sheets as of September 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 nine months ended September 30, 2022 primarily relate to (i) $41.0 million of revenues recognized that were included in gross contract liabilities at December 31, 2021, (ii) a $2.6 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) $18.5 million of contract assets reclassified into accounts receivable as a result of rights to consideration becoming unconditional, and (iv) a $1.3 million decrease in contract assets due to certain trademark licensing contract modifications and terminations. Future Performance Obligations In the third quarter of 2023, we further updated the revenue recognition for certain of our licensees pursuant to their contract modifications and expected collectability, which resulted in impairment charges of $0.4 million and a write-down of corresponding contract liabilities of $8.3 million. For the nine months ended September 30, 2023, impairments of assets attributable to licensing contracts were $8.5 million, and a write-down of corresponding contract liabilities of $11.4 million. The decrease in revenue from such licensees was $4.0 million and $10.7 million during the three and nine months ended September 30, 2023, respectively, compared to the comparable prior year periods. Due to challenging economic conditions in China, collections from certain Chinese licensees there have slowed significantly. Future contract modifications and collectability issues could further impact the revenue recognized against our ongoing contract assets. As of September 30, 2023, unrecognized revenue attributable to unsatisfied and partially unsatisfied performance obligations under our long-term contracts was $176.4 million, of which $169.6 million relates to Trademark Licensing, with $146.2 million attributable to long-term licenses with Chinese licensees, $5.2 million relates to Digital Subscriptions and Products, and $1.6 million relates to other obligations. In October 2023, we terminated licensing agreements with certain Chinese licensees, which comprised $142.7 million of the unrecognized Trademark Licensing revenue under our long-term contracts as of September 30, 2023. Revenue recognized in connection with the contracts that were subsequently terminated was $6.1 million and $19.9 million during the three and nine months ended September 30, 2023, respectively. Unrecognized revenue of our Trademark Licensing revenue stream, excluding revenue from licensing agreements terminated in October 2023 as discussed in Note 1, Basis of Presentation, is expected to be recognized over the next seven years, of which 91% is expected to be recognized in the first five years. Unrecognized revenue of the Digital Subscriptions and Products revenue stream is expected to be recognized over the next five years, of which 42% is expected to 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 September 30, 2023 |  | Nine Months Ended September 30, 2023
| Licensing |  | Direct-to-Consumer |  | Digital Subscriptions and Content |  | Other |  | Total |  | Licensing |  | Direct-to-Consumer |  | Digital Subscriptions and Content |  | Other |  | Total
Trademark licensing | $ | 10,931 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 10,931 |  |  | $ | 30,913 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 30,913 |
Digital subscriptions and products | — |  |  | — |  |  | 3,359 |  |  | — |  |  | 3,359 |  |  | — |  |  | — |  |  | 9,145 |  |  | 4 |  |  | 9,149 |
TV and cable programming | — |  |  | — |  |  | 1,847 |  |  | — |  |  | 1,847 |  |  | — |  |  | — |  |  | 5,911 |  |  | — |  |  | 5,911 |
Consumer products | — |  |  | 17,145 |  |  | — |  |  | — |  |  | 17,145 |  |  | — |  |  | 57,613 |  |  | — |  |  | — |  |  | 57,613 |
Total revenues | $ | 10,931 |  |  | $ | 17,145 |  |  | $ | 5,206 |  |  | $ | — |  |  | $ | 33,282 |  |  | $ | 30,913 |  |  | $ | 57,613 |  |  | $ | 15,056 |  |  | $ | 4 |  |  | $ | 103,586 |
| Three Months Ended September 30, 2022 |  | Nine Months Ended September 30, 2022
| Licensing |  | Direct-to-Consumer |  | Digital Subscriptions and Content |  | Other |  | Total |  | Licensing |  | Direct-to-Consumer |  | Digital Subscriptions and Content |  | Other |  | Total
Trademark licensing | $ | 14,908 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 14,908 |  |  | $ | 45,345 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 45,345 |
Magazine, digital subscriptions and products | — |  |  | — |  |  | 2,403 |  |  | 42 |  |  | 2,445 |  |  | — |  |  | — |  |  | 7,050 |  |  | 720 |  |  | 7,770 |
TV and cable programming | — |  |  | — |  |  | 2,263 |  |  | — |  |  | 2,263 |  |  | — |  |  | — |  |  | 7,050 |  |  | — |  |  | 7,050 |
Consumer products | — |  |  | 26,090 |  |  | — |  |  | — |  |  | 26,090 |  |  | — |  |  | 80,482 |  |  | — |  |  | — |  |  | 80,482 |
Total revenues | $ | 14,908 |  |  | $ | 26,090 |  |  | $ | 4,666 |  |  | $ | 42 |  |  | $ | 45,706 |  |  | $ | 45,345 |  |  | $ | 80,482 |  |  | $ | 14,100 |  |  | $ | 720 |  |  | $ | 140,647 |
The following table disaggregates revenue by point-in-time versus over time (in thousands), excluding revenues from discontinued operations:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2023 |  | 2022 |  | 2023 |  | 2022
Point in time | $ | 18,306 |  |  | $ | 26,108 |  |  | $ | 60,450 |  |  | $ | 80,639 |
Over time | 14,976 |  |  | 19,598 |  |  | 43,136 |  |  | 60,008 |
Total revenues | $ | 33,282 |  |  | $ | 45,706 |  |  | $ | 103,586 |  |  | $ | 140,647 |

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- Definition The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 9 -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-9 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 10 -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-10 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-15 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-12 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 606 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Subparagraph (b)(2) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479806/606-10-50-13 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 606 -Publisher FASB -URI https://asc.fasb.org//606/tableOfContent + Details
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