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10-K
ICONIX BRAND GROUP, INC. filed this Form 10-K on 03/28/2019
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In July 2017, the Company received $2.7 million in cash of the total $3.7 million being held in escrow.  As a result, the Company has recognized a gain of $2.7 million recorded within Other Income on the Company’s FY 2017 consolidated statement of operations.  

In January 2018, the Company received the remaining $1.0 million in cash being held in escrow.  As a result, the Company has recognized a gain of $1.0 million recorded within Other Income on the Company’s consolidated statement of operations in FY 2018.

 

 

6. Gains on Sale of Trademarks, net

The following table details transactions comprising gains on sales of trademarks, net in the consolidated statement of operations:

 

 

 

December 31,

 

 

December 31,

 

 

 

2018

 

 

2017

 

Interest in Badgley Mischka Canada trademark(1)

 

$

 

 

$

375

 

Interest in Sharper Image Canada trademark(2)

 

 

 

 

 

500

 

Interest in Sharper Image trademark in Iconix Southeast Asia(2)

 

 

236

 

 

 

 

Interest in Sharper Image trademark in Iconix Europe(2)

 

 

352

 

 

 

 

Interest in Sharper Image trademark in Iconix MENA(2)

 

 

250

 

 

 

 

Interest in Sharper Image trademark in Iconix Australia(2)

 

 

125

 

 

 

 

Interest in Badgley Mischka trademark in Iconix Southeast Asia(1)

 

 

478

 

 

 

 

Interest in Badgley Mischka trademark in Iconix Europe(1)

 

 

(244

)

 

 

 

Interest in Badgley Mischka trademark in Iconix MENA(1)

 

 

71

 

 

 

 

Total net gains on sales of trademarks

 

$

1,268

 

 

$

875

 

 

(1)

In February 2016, the Company sold its rights to the Badgley Mischka intellectual property and related assets to Titan Industries, Inc. in partnership with the founders, Mark Badgley and James Mischka, and the apparel license MJCLK LLC for $13.8 million in cash.  The Company recognized a gain of $11.6 million as a result of this transaction.  The $11.6 million gain represented the sale of the Badgley Mischka intellectual property and related assets within the United States, Greater China, Israel and Latin America territories.  The Badgley Mischka intellectual property and related assets within other foreign territories is owned by certain of the Company’s joint venture entities and required the Company to negotiate and finalize the sale of the intellectual property with its respective joint venture partners.  In September 2017, the Company sold its interest in certain Badgley Mischka trademarks for shoes and handbags in Canada for $0.4 million in cash.  The Company recognized a gain of $0.4 million as a result of this transaction.  Additionally, in FY 2018, the Company recognized an additional combined gain of approximately $0.3 million upon final execution of the agreement for the sale of the Badgley Mischka intellectual property and related assets which were previously owned by the Iconix Southeast Asia, Iconix Europe and Iconix MENA joint ventures resulting in an aggregate gain on the sale of the brand of $12.3 million.

(2)

In December 2016, the Company sold the rights to the Sharper Image intellectual property and related assets to 360 Holdings, Inc. for $100.0 million in cash (of which $1.8 million is being held in escrow for the sale of the Sharper Image intellectual property in the Company’s international joint ventures).  The Company recognized a gain of $28.1 million as a result of this transaction.  The Sharper Image intellectual property and related assets within other foreign territories is owned by certain of the Company’s joint venture entities and required the Company to negotiate and finalize the sale of the intellectual property with its respective joint venture partners.  In September 2017, the Company sold its interest in the Sharper Image trademark in Canada for $0.5 million in cash.  The Company recognized a gain of $0.5 million as a result of this transaction.  In FY 2018, the Company recognized an additional combined gain of approximately $1.0 million upon final execution of the agreement for the sale of the Sharper Image intellectual property and related assets which were previously owned by the Iconix Southeast Asia, Iconix Europe, Iconix MENA, and Iconix Australia joint ventures resulting in an aggregate gain on the sale of the brand of $29.6 million.  

 

94


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