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10-K
ICONIX BRAND GROUP, INC. filed this Form 10-K on 03/28/2019
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The following table presents financial results of the Entertainment segment for FY 2017 which were shown as income from discontinued operations, net of income taxes, in our consolidated statement of operations:

 

 

 

Year Ended

December 31,

 

 

 

2017

 

Licensing revenue

 

$

53,129

 

Selling, general and administrative expenses

 

 

34,542

 

Depreciation and amortization

 

 

303

 

Trademark impairment

 

 

 

Operating income

 

 

18,284

 

Other expenses (income):

 

 

 

 

Interest expense

 

 

12,973

 

Interest income

 

 

(180

)

Loss on extinguishment of debt

 

 

31,554

 

Foreign currency translation loss (gain)

 

 

169

 

Other expenses – net

 

 

44,516

 

(Loss) Income from operations of discontinued

   operations before income taxes

 

 

(26,232

)

Gain (loss) on sale of Entertainment segment

 

 

104,099

 

Provision for income taxes

 

 

28,899

 

Net income from discontinued operations

 

 

48,968

 

Less: Net income attributable to non-controlling

   interest from discontinued operations

 

 

2,943

 

Income from discontinued operations, net of

   income taxes

 

$

46,025

 

 

The cash proceeds from the sale of the Company’s Entertainment segment were utilized by the Company to make mandatory principal prepayments on both its Senior Secured Notes and 2016 Senior Secured Term Loan (each as defined below) (as well as a corresponding prepayment premium).  As a result, and in accordance with ASC 205-20-45-6, for FY 2017, the Company has allocated additional interest expense of $12.9 million (which includes $1.7 million of amortization of the original issue discount on the 2016 Senior Secured Term Loan) from continuing operations to discontinued operations.  In FY 2017, given the mandatory principal prepayment of $152.2 million on the Senior Secured Notes paid in July 2017 as a result of the sale of the Company’s Entertainment segment, the Company allocated the associated prepayment penalty of $0.3 million as well as the write-off of the pro-rata portion of deferred financing costs of $2.0 million related to the Senior Secured Notes from continuing operations to discontinued operations on the Company’s consolidated statement of operations.  In FY 2017, the Company has allocated the prepayment premium of $15.2 million related to the 2016 Senior Secured Term Loan as well as the write-off of the pro-rata portion of deferred financing costs and original issue discount of $9.4 million and $4.7 million, respectively, from continuing operations to discontinued operations on the Company’s consolidated statement of operations.  Refer to Note 9 for further details.

 

 

The following table presents cash flow of the Entertainment segment during FY 2017:

 

 

 

Year Ended

December 31,

 

 

 

2017

 

Net cash (used in) provided by discontinued operating activities

 

$

(10,780

)

Net cash used in discontinued investing activities

 

$

(84

)

Net cash used in discontinued financing activities

 

$

(23,873

)

 

 

75


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