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10-K
ICONIX BRAND GROUP, INC. filed this Form 10-K on 03/28/2019
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two members to the Company’s Board of Directors.  As of December 31, 2018 and December 31, 2017, the Company recognized the following royalty revenue amounts:

 

 

 

FY 2018

 

 

FY 2017

 

Joint Venture Partner

 

 

 

 

 

 

 

 

Global Brands Group Asia Limited(1)(2)

 

$

19,544

 

 

$

18,011

 

MHMC

 

 

2,927

 

 

 

1,800

 

Albion Equity Partners LLC / GL Damek

 

 

2,644

 

 

 

2,264

 

Rise Partners, LLC / Top On International Group Limited

 

 

977

 

 

 

1,054

 

Sports Direct International plc

 

 

915

 

 

 

 

Anthony L&S

 

 

623

 

 

 

165

 

M.G.S. Sports Trading Limited

 

 

610

 

 

 

576

 

Pac Brands USA, Inc.

 

 

246

 

 

 

278

 

Buffalo International ULC

 

 

 

 

 

690

 

Roc Nation

 

 

 

 

 

 

 

 

$

28,486

 

 

$

24,838

 

 

(1)

Royalty revenue of less than $0.1 million for FY 2017, which is included in the amounts presented in the table above, relates to royalty revenue associated with Peanuts Worldwide and Strawberry Shortcake, which has been reclassified to income from discontinued operations on the Company’s consolidated statement of operations for all periods presented.  

Additionally, GBG also served as agent to Peanuts Worldwide for the Greater China Territory for Peanuts brands.  As of June 30, 2017, due to the completion of the sale of the Entertainment segment, GBG is no longer a related party in its capacity as agent of Peanuts Worldwide.  For FY 2017, Global Brands Group Asia Limited earned fees of approximately $0.7 million in its capacity as agent to Peanuts Worldwide which have been recorded within discontinued operations in the Company’s consolidated statement of operations.

(2)

Prior to February 2017, Buffalo International ULC maintained the Buffalo license agreement.  However, starting in February 2017, Buffalo International ULC effectively assigned the Buffalo license agreement to GBG.  The license revenue from the Buffalo license agreement represents approximately $18.4 million and $16.1 million of the total license revenue for GBG shown in the table above for FY 2018 and FY 2017, respectively.  

 

14. Operating Leases

Future net minimum lease payments under non-cancelable operating lease agreements as of December 31, 2018 are approximately as follows:

 

Year ending December 31,

 

 

 

 

2019

 

$

2,650

 

2020

 

 

2,726

 

2021

 

 

2,583

 

2022

 

 

2,191

 

2023

 

 

2,109

 

Thereafter

 

 

1,078

 

Totals

 

$

13,337

 

 

The leases require the Company to pay additional taxes on the properties, certain operating costs and contingent rents based on sales in excess of stated amounts.

Rent expense was approximately $4.0 million and $3.4 million for FY 2018 and FY 2017, respectively. Contingent rent amounts have been immaterial for all periods.

 

 

15. Benefit and Incentive Compensation Plans and Other

The Company sponsors a 401(k) Savings Plan (the “Savings Plan”) which covers all eligible full-time employees. Participants may elect to make pretax contributions subject to applicable limits. At its discretion, the Company may contribute additional amounts to the Savings Plan. During FY 2018 and FY 2017, the Company made contributions to the Savings Plan of approximately $0.1million and $0.2 million, respectively.

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