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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 our revenues disaggregated by license type:

 

 

 

Year Ended December 31,

 

 

 

2018

 

 

2017

 

Licensing revenue by license type:

 

 

 

 

 

 

 

 

Direct-to-retail license

 

$

71,609

 

 

$

120,555

 

Wholesale licenses

 

 

112,769

 

 

 

105,041

 

Other licenses(1)

 

 

3,311

 

 

 

237

 

 

 

$

187,689

 

 

$

225,833

 

(1)

Included in Other licenses for FY 2018 is $2.9 million of revenue associated with the Umbro business purchases discussed above as compared to $1.1 million for FY 2017.

The following table represents our revenues disaggregated by geography:

 

 

 

Year Ended December 31,

 

 

 

2018

 

 

2017

 

Total licensing revenue by geographic region:

 

 

 

 

 

 

 

 

United States

 

$

120,397

 

 

$

163,809

 

Other (1)

 

 

67,292

 

 

 

62,024

 

 

 

$

187,689

 

 

$

225,833

 

(1)

No single country represented 10% of the Company’s revenues in the periods presented.

Remaining Performance Obligation

We enter into long-term license agreements with our licensees across all operating segments.  Revenues are recognized on a straight line basis consistent with the nature, timing and extent of our services, which primarily relate to the ongoing brand management and maintenance of the intellectual property.  As of January 1, 2019, the Company and its joint ventures had a contractual right to receive over $408 million of aggregate minimum licensing revenue through the balance of all of their current licenses, excluding any renewals.

As of December 31, 2018, future minimum license revenue to be recognized is as follows: $102.2 million, $75.3 million, $55.8 million, $47.0 million, $42.3 million and $86.3 million for FY 2019, FY 2020, FY 2021, FY 2022, FY 2023 and thereafter, respectively.

Contract Balances

Timing of revenue recognition may differ from the timing of invoicing to licensees.  We record a receivable when amounts are contractually due or when revenue is recognized prior to invoicing.  Deferred revenue is recorded when amounts are contractually due prior to satisfying the performance obligations of the contracts.  For multi-year license agreements, as the performance obligation is providing the licensee with the right of access to the Company’s intellectual property for the contractual term, the Company uses a time-lapse measure of progress and straight lines the guaranteed minimum royalties over the contract term.

Contract Asset

We record contract assets when revenue is recognized in advance of cash payment being due from our licensees.  Contract assets due within one year of the most recent balance sheet date are recorded within Other assets – current and long term contract assets are recorded within Other assets on the Company’s consolidated balance sheet.  As of December 31, 2018, our contract assets – current and long term contract assets were $4.8 million and $14.6 million, respectively.  For the year ended December 31, 2018, the Company incurred an impairment loss of its contract assets of $1.8 million as a result of certain contract modifications.

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