10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

____________________

FORM 10-Q

____________________

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2017
or
☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ______ to ______

Commission file number 001-16131

WORLD WRESTLING ENTERTAINMENT, INC.

(Exact name of Registrant as specified in its charter)

Delaware	04-2693383
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

1241 East Main Street

Stamford, CT 06902

(203) 352-8600

(Address, including zip code, and telephone number, including area code,

of Registrant’s principal executive offices)

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.   Yes ☒   No ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).   Yes ☒   No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer  ☐ Accelerated filer  ☒ Non-accelerated filer  ☐ Smaller reporting company  ☐ Emerginggrowth company  ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).   Yes ☐   No ☒

At July 25, 2017 the number of shares outstanding of the Registrant’s Class A common stock, par value $.01 per share, was 39,152,845 and the number of shares outstanding of the Registrant’s Class B common stock, par value $.01 per share, was 37,949,438.

TABLE OF CONTENTS

	Page #
Part I – FINANCIAL INFORMATION
Item 1. Consolidated Financial Statements (unaudited)	2
Consolidated Statements of Operations for the three and six months ended June 30, 2017 and 2016	2
Consolidated Statements of Comprehensive Income for the three and six months ended June 30,  2017 and 2016	3
Consolidated Balance Sheets as of June 30, 2017 and December 31, 2016	4
Consolidated Statement of Stockholders’ Equity as of June 30,  2017	5
Consolidated Statements of Cash Flows for the six months ended June 30,  2017 and 2016	6
Notes to Consolidated Financial Statements	7
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	26
Item 3. Quantitative and Qualitative Disclosures about Market Risk	46
Item 4. Controls and Procedures	46
Part II – OTHER INFORMATION
Item 1. Legal Proceedings	46
Item 1A. Risk Factors	48
Item 6. Exhibits	48
Signatures	49

WORLD WRESTLING ENTERTAINMENT, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

(Unaudited)

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2017		2016		2017		2016
Net revenues	$	214,586	$	198,994	$	403,030	$	370,094
Cost of revenues		136,387		132,020		245,540		225,354
Selling, general and administrative expenses		61,127		59,435		129,561		109,610
Depreciation and amortization		6,377		5,966		13,245		11,553
Operating income		10,695		1,573		14,684		23,577
Interest expense		3,639		601		7,165		1,194
Investment income, net		736		643		1,597		1,253
Other (expense) income, net		(17)		(588)		47		(1,244)
Income before income taxes		7,775		1,027		9,163		22,392
Provision for income taxes		2,690		165		3,190		7,645
Net income	$	5,085	$	862	$	5,973	$	14,747
Earnings per share: basic	$	0.07	$	0.01	$	0.08	$	0.19
Earnings per share: diluted	$	0.06	$	0.01	$	0.08	$	0.19
Weighted average common shares outstanding:
Basic		76,455		75,952		76,448		75,945
Diluted		78,563		77,429		78,374		77,304
Dividends declared per common share (Class A and B)	$	0.12	$	0.12	$	0.24	$	0.24

See accompanying notes to consolidated financial statements.

2

WORLD WRESTLING ENTERTAINMENT, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In thousands)

(Unaudited)

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2017		2016		2017		2016
Net income	$	5,085	$	862	$	5,973	$	14,747
Other comprehensive income (loss):
Foreign currency translation adjustments		32		(118)		77		(105)
Unrealized holding (losses) gains on available-for-sale securities (net of tax (benefit) expense of ($15) and $38, and ($37) and $168, respectively)		(25)		61		(61)		274
Total other comprehensive income (loss)		7		(57)		16		169
Comprehensive income	$	5,092	$	805	$	5,989	$	14,916

See accompanying notes to consolidated financial statements.

3

WORLD WRESTLING ENTERTAINMENT, INC.

CONSOLIDATED BALANCE SHEETS

(In thousands, except sharedata)

(Unaudited)

	As of
	June 30,		December 31,
	2017		2016
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	132,815	$	211,976
Short-term investments, net		129,448		55,164
Accounts receivable (net of allowance for doubtful accounts and returns    of $8,332 and $8,259, respectively)		55,548		53,155
Inventory		8,375		6,531
Prepaid expenses and other current assets		27,665		22,480
Total current assets		353,851		349,306
PROPERTY AND EQUIPMENT, NET		131,552		132,631
FEATURE FILM PRODUCTION ASSETS, NET		29,117		27,137
TELEVISION PRODUCTION ASSETS, NET		9,408		12,508
INVESTMENT SECURITIES		25,087		24,957
NON-CURRENT DEFERRED INCOME TAX ASSETS		32,568		32,556
OTHER ASSETS, NET		17,753		21,808
TOTAL ASSETS	$	599,336	$	600,903
LIABILITIES AND STOCKHOLDERS’ EQUITY
CURRENT LIABILITIES:
Current portion of long-term debt	$	7,230	$	6,121
Accounts payable and accrued expenses		60,396		70,360
Deferred income		57,749		56,653
Total current liabilities		125,375		133,134
LONG-TERM DEBT		33,290		35,596
CONVERTIBLE DEBT		175,429		161,008
NON-CURRENT INCOME TAX LIABILITIES		618		725
NON-CURRENT DEFERRED INCOME		22,303		30,697
Total liabilities		357,015		361,160
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS’ EQUITY:
Class A common stock: ($.01 par value; 180,000,000 shares authorized;    38,507,281 and 38,455,266 shares issued and outstanding as of June 30, 2017 and December 31, 2016, respectively)		385		385
Class B convertible common stock: ($.01 par value; 60,000,000 shares authorized;    37,949,438 and 37,949,438 shares issued and outstanding as of    June 30, 2017 and December 31, 2016, respectively)		379		379
Additional paid-in capital		418,331		403,387
Accumulated other comprehensive income		2,911		2,895
Accumulated deficit		(179,685)		(167,303)
Total stockholders’ equity		242,321		239,743
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	599,336	$	600,903

See accompanying notes to consolidated financial statements.

4

WORLD WRESTLING ENTERTAINMENT, INC.

CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(In thousands)

(Unaudited)

									Accumulated
	Common Stock						Additional		Other
	Class A			Class B			Paid - in		Comprehensive		Accumulated
	Shares	Amount		Shares	Amount		Capital		Income		Deficit		Total
Balance, December 31, 2016	38,455	$	385	37,949	$	379	$	403,387	$	2,895	$	(167,303)	$	239,743
Net income	—		—	—		—		—		—		5,973		5,973
Other comprehensive income	—		—	—		—		—		16		—		16
Stock issuances, net	52		—	—		—		767		—		—		767
Debt discount on convertible debt, net (See Note 13)	—		—	—		—		2,487		—		—		2,487
Purchase of convertible note hedge (See Note 13)	—		—	—		—		(2,558)		—		—		(2,558)
Proceeds from issuance of warrants (See Note 13)	—		—	—		—		1,460		—		—		1,460
Cash dividends declared	—		—	—		—		6		—		(18,355)		(18,349)
Stock-based compensation	—		—	—		—		12,782		—		—		12,782
Balance, June 30, 2017	38,507	$	385	37,949	$	379	$	418,331	$	2,911	$	(179,685)	$	242,321

See accompanying notes to consolidated financial statements.

5

WORLD WRESTLING ENTERTAINMENT, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

	Six Months Ended
	June 30,
	2017		2016
OPERATING ACTIVITIES:
Net income	$	5,973	$	14,747
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization and impairments of feature film production assets		5,803		2,701
Amortization of television production assets		10,721		17,569
Depreciation and amortization		16,605		13,932
Services provided in exchange for equity instruments		(1,394)		(1,705)
Equity in earnings of affiliate, net of dividends received		23		(90)
Other amortization		3,161		1,154
Stock-based compensation		12,782		9,589
Provision for (recovery from) doubtful accounts		272		(167)
(Benefit from) provision for deferred income taxes		(12)		2,138
Other non-cash adjustments		121		278
Cash (used in)/provided by changes in operating assets and liabilities:
Accounts receivable		(2,588)		3,225
Inventory		(1,844)		(1,207)
Prepaid expenses and other assets		(5,432)		(11,996)
Feature film production assets		(7,783)		(5,023)
Television production assets		(7,621)		(15,122)
Accounts payable, accrued expenses and other liabilities		(9,087)		(10,414)
Deferred income		(5,904)		(16,830)
Net cash provided by operating activities		13,796		2,779
INVESTING ACTIVITIES:
Purchases of property and equipment and other assets		(12,462)		(15,533)
Purchases of short-term investments		(88,696)		—
Proceeds from sales and maturities of investments		13,660		400
Purchase of investment securities		(116)		(1,250)
Net cash used in investing activities		(87,614)		(16,383)
FINANCING ACTIVITIES:
Repayment of long-term debt		(2,580)		(2,208)
Dividends paid		(18,349)		(18,229)
Proceeds from borrowings under credit facilities		1,383		11,583
Proceeds from borrowings on convertible notes, net of issuance costs		14,534		—
Proceeds from issuance of warrants		1,460		—
Purchase of convertible note hedge		(2,558)		—
Taxes paid related to net settlement upon vesting of equity awards		(56)		(47)
Proceeds from issuance of stock		823		673
Excess tax benefits from stock-based payment arrangements		—		6
Net cash used in financing activities		(5,343)		(8,222)
NET DECREASE IN CASH AND CASH EQUIVALENTS		(79,161)		(21,826)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD		211,976		38,019
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	132,815	$	16,193
NON-CASH INVESTING AND FINANCING TRANSACTIONS:
Non-cash purchase of property and equipment	$	1,993	$	768

See accompanying notes to consolidated financial statements.

6

WORLD WRESTLING ENTERTAINMENT, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(In thousands, except share data)

(Unaudited)

1. Basis of Presentation and Business Description

The accompanying consolidated financial statements include the accounts of WWE.  “WWE” refers to World Wrestling Entertainment, Inc. and its subsidiaries, unless the context otherwise requires.  References to “we,” “us,” “our” and the “Company” refer to WWE. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires our management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period.  Actual results could differ from those estimates.

The accompanying consolidated financial statements are unaudited. All adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation of financial position, results of operations, and cash flows at the dates and for the periods presented have been included.  The results of operations of any interim period are not necessarily indicative of the results of operations for the full year. All intercompany balances are eliminated in consolidation.

Certain information and note disclosures normally included in annual financial statements have been condensed or omitted from these interim financial statements; these financial statements should be read in conjunction with the financial statements and notes thereto included in our Form 10-K for the year ended December 31, 2016.  Certain reclassifications have been made to the Consolidated Statement of Cash Flows in the prior year to conform to the current year presentation pursuant to our adoption of a new accounting standard as of January 1, 2017 related to share-based payment award accounting simplifications. See Note 2, Significant Accounting Policies, for further details.

We are an integrated media and entertainment company, principally engaged in the production and distribution of content through various channels, including our premium over-the-top WWE Network, television rights agreements, pay-per-view event programming, live events, feature films, licensing of various WWE themed products, and the sale of consumer products featuring our brands.  Our operations are organized around the following four principal activities:

Media Division:

Network

· Revenues consist principally of subscriptions to WWE Network, fees for viewing our pay-per-view programming, and advertising fees.

Television

· Revenues consist principally of television rights fees and advertising.

Home Entertainment

· Revenues consist principally of sales of WWE produced content via home entertainment platforms, including DVD, Blu-Ray, and subscription and transactional on-demand outlets.

Digital Media

· Revenues consist principally of advertising sales on our websites and third party websites including YouTube, and sales of various broadband and mobile content.

Live Events:

· Revenues consist principally of ticket sales and travel packages for live events.

Consumer Products Division:

Licensing

· Revenues consist principally of royalties or license fees related to various WWE themed products such as video games, toys, and apparel.

Venue Merchandise

· Revenues consist of sales of merchandise at our live events.

7

WORLD WRESTLING ENTERTAINMENT, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(In thousands, except share data)

(Unaudited)

WWEShop

· Revenues consist of sales of merchandise on our websites, including through our WWEShop Internet storefront and on distribution platforms, including Amazon.

WWE Studios:

· Revenues consist of amounts earned from investing in, producing, and/or distributing filmed entertainment.

2. Significant Accounting Policies

There have been no significant changes to our accounting policies that were previously disclosed in our Annual Report on Form 10-K for our fiscal year ended December 31, 2016, or in the methodology used in formulating these significant judgments and estimates that affect the application of these policies.

Cost of Revenues

Included within Costs of revenues are the following:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2017		2016		2017		2016
Amortization and impairment of feature film assets	$	3,072	$	1,595	$	5,803	$	2,701
Amortization of television production assets		5,105		9,438		10,721		17,569
Amortization of WWE Network content delivery and technology assets		1,691		1,230		3,355		2,379
Total amortization and impairment included in cost of revenues	$	9,868	$	12,263	$	19,879	$	22,649

Costs to produce our live event programming are expensed when the event is first broadcast, and are not included in the amortization table noted above.

Recent Accounting Pronouncements

In May 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2017-09, “Compensation – Stock Compensation (Topic 718) Scope of Modification Accounting.” The ASU provides guidance on the various types of changes which would trigger modification accounting for share-based payment awards. In summary, an entity would not apply modification accounting if the fair value, vesting conditions, and classification of the awards are the same immediately before and after the modification. The guidance is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods, which for the Company will be effective for the fiscal year beginning January 1, 2018. Early adoption is permitted, including adoption in any interim period for which financial statements have not yet been issued. The amendments are to be applied prospectively to an award modified on or after the adoption date, consequently the impact will be dependent on whether the Company modifies any of its share-based payment awards and the nature of such modifications

In January 2017, the FASB issued ASU No. 2017-01, “Business Combinations (Topic 805) Clarifying the Definition of a Business”. The amendments in this ASU clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The definition of a business affects many areas of accounting including acquisitions, disposals, goodwill, and consolidation. The guidance is effective for annual periods beginning after December 15, 2017, which for the Company will be effective for the fiscal year beginning January 1, 2018.  The Company does not expect that the adoption of this new standard will have a material impact on our consolidated financial statements.

In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments,” which addresses eight specific cash flow issues and is intended to reduce diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows.  The guidance is effective for interim and annual periods beginning after December 15, 2017, which for the Company will be effective for the fiscal year beginning January 1, 2018, with early adoption permitted.  The amendments in the ASU should be applied using a retrospective transition method to each period presented. The Company is currently evaluating the impact of this new standard and does not expect it to have a material impact on our consolidated financial statements.

8

WORLD WRESTLING ENTERTAINMENT, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(In thousands, except share data)

(Unaudited)

In March 2016, the FASB issued ASU No. 2016-09, "Compensation-Stock Compensation (Topic 718) Improvements to Employee Share-Based Payment Accounting." This update simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. The update contains various amendments, each requiring a specific method of adoption, and designates whether each amendment should be adopted using a retrospective, modified retrospective, or prospective transition method. The new guidance was adopted on January 1, 2017. The impact of adoption of the update is summarized below: 

· All excess tax benefits and deficiencies that result from the difference between the deduction for tax purposes and the compensation cost recognized for financial reporting purposes related to our share-based payment awards will be recognized as income tax benefit or expense in the income statement instead of as an adjustment to additional paid-in capital.  In addition, excess tax benefits are no longer included in the calculation of diluted shares outstanding for purposes computing diluted earnings per share under the treasury stock method. The transition guidance related to these changes has been adopted by the Company on a prospective basis.

· An entity is now required to recognize excess tax benefits regardless of whether the benefit reduces taxes payable in the current period. Under the required modified retrospective transition, the Company had no cumulative-effect adjustment to retained earnings at January 1, 2017, as the Company had no previously unrecognized excess tax benefits.

· Excess tax benefits will be classified along with other income tax cash flows as an operating activity on the statement of cash flows. Prior to the update, excess tax benefits were separated from other income tax cash flows and classified as a financing activity. In fiscal year 2016 and 2015, excess tax benefits of $893 and $431, respectively, were recorded as part of financing cash inflows. The Company adopted these changes on a prospective basis.

· Cash paid by an employer when directly withholding shares for tax-withholding purposes upon vesting of a share-based payment award are now classified as a financing activity on the statement of cash flows rather than as operating cash outflows. This amendment has been adopted by the Company on a retrospective basis. As a result of the retrospective adoption of this amendment, cash outflows of $47 was reclassified in the accompanying Consolidated Statements of Cash Flows from "Changes in accounts payable, accrued expenses and other liabilities" to "Taxes paid related to net settlement upon vesting of equity awards " for the six months ended June 30, 2016.  

· The threshold to qualify for equity classification of a share-based payment award would now permit withholding up to a maximum individual statutory tax rate in the applicable jurisdictions. The Company had no share-based payment awards receiving liability treatment under the prior rules. Therefore, the change from minimum up to a maximum statutory rate on tax withholdings had no impact on our consolidated financial statements and no cumulative effect adjustment was required.

· The Company has elected to continue its current policy of estimating forfeitures rather than recognizing forfeitures when they occur. 

In March 2016, the FASB issued ASU No. 2016-07, “Investments – Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting”. The amendments eliminate the requirement to retroactively adopt the equity method of accounting when a change in ownership occurs. The amendments require that the equity method investor add the cost of acquiring the additional interest in the investee to the current basis of the investment and adopt the equity method of accounting as of the date the investment becomes qualified for equity method accounting. Therefore, upon qualifying for the equity method of accounting, no retroactive adjustment of the investment is required. This new guidance was adopted on January 1, 2017 with no material impact on our consolidated financial statements.

In February 2016, the FASB issued ASU No. 2016-02 “Leases (Topic 842),” which will supersede the existing guidance for lease accounting. This new standard will require lessees to recognize leases on their balance sheets, and leaves lessor accounting largely unchanged. The new standard requires a dual approach for lessee accounting under which a lessee would account for leases as finance leases or operating leases. Both finance leases and operating leases will result in the lessee recognizing a right-of-use asset and a corresponding lease liability. For finance leases, the lessee would recognize interest expense and amortization of the right-of-use asset, and for operating leases, the lessee would recognize a straight-line total lease expense. The new guidance is effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years, which for the Company will be effective for the fiscal year beginning January 1, 2019, with early adoption permitted.  An entity will be required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. We are currently evaluating the impact of the adoption of this new standard on our consolidated financial statements.

9

WORLD WRESTLING ENTERTAINMENT, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(In thousands, except share data)

(Unaudited)

In January 2016, the FASB issued ASU No. 2016-01, “Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities,” which requires that most equity investments be measured at fair value, with subsequent changes in fair value recognized in net income (other than those accounted for under equity method of accounting). Under the new guidance, entities will no longer be able to recognize unrealized holding gains and losses on equity securities classified today as available-for-sale in other comprehensive income, and they will no longer be able to use the cost method of accounting for equity securities that do not have readily determinable fair values. However, entities will be able to elect to record equity investments without readily determinable fair values at cost, less impairment, and plus or minus subsequent adjustments for observable price changes. The guidance for classifying and measuring investments in debt securities and loans is not impacted. The new guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017, which for the Company is effective for the fiscal year beginning January 1, 2018, with early adoption permitted. The Company does not expect that the adoption of this new standard will have a material impact on our consolidated financial statements.

In July 2015, the FASB issued ASU No. 2015-11, “Simplifying the Measurement of Inventory,” which requires all inventory to be measured at the lower of cost and net realizable value, except for inventory that is accounted for using the LIFO or the retail inventory method, which will be measured under existing accounting standards. The new guidance must be applied on a prospective basis and was adopted on January 1, 2017 with no material impact on our consolidated financial statements.

In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers (Topic 606)." This standard will supersede the revenue recognition requirements in ASC 605, "Revenue Recognition," and most industry-specific guidance. The standard requires an entity to recognize revenue in an amount that reflects the consideration to which the entity expects to receive in exchange for goods or services. In addition, during 2016, the FASB has issued ASU No. 2016-08, “Principal versus Agent Considerations,” ASU No. 2016-10, “Identifying Performance Obligations and Licensing,” ASU No. 2016-12, “Narrow Scope Improvements and Practical Expedients,” and ASU No. 2016-20, “Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers,” all of which clarify certain implementation guidance in ASU No. 2014-09.  This standard along with the subsequent clarifications issued are effective for annual reporting periods beginning after December 15, 2017, and interim periods within those fiscal years, making it effective for our fiscal year beginning January 1, 2018. Early adoption is permitted to the original effective date for annual reporting periods beginning after December 15, 2016. The standard allows an entity to either apply the requirements retrospectively to all prior periods presented, or apply the requirements in the year of adoption, through a cumulative adjustment. While we are currently evaluating the impact of adoption of this new standard and clarifying guidance on our consolidated financial statements, we believe the most significant impact will be an acceleration in the timing of revenue recognition in our licensing and WWE Studios businesses. We currently record revenues from our licensed products and WWE Studios film distribution revenues after receiving statements from the licensee and/or film distributor. Under the new revenue recognition rules, revenues will be recorded based on best estimates available in the period of sales or usage.We do not expect the impact of this change to be material on a full-year basis, but will likely impact the revenues recorded in a specific quarter as compared to previously reported periods.  Based on the limited expected impacts from the standard, we intend to adopt the standard and the related modifications on January 1, 2018, using the modified retrospective approach.  Under this approach, the cumulative effect of initially applying the guidance will be reflected as an adjustment to beginning retained earnings.

3. Segment Information

The Company currently classifies its operations into ten reportable segments.  The ten reportable segments of the Company include the following: Network (which includes our pay-per-view business), Television, Home Entertainment and Digital Media, which are individual segments that comprise the Media Division; Live Events; Licensing, Venue Merchandise and WWEShop, which are individual segments that comprise the Consumer Products Division; WWE Studios, and Corporate and Other (as defined below).

The Company presents OIBDA as the primary measure of segment profit (loss).  The Company defines OIBDA as operating income before depreciation and amortization, excluding feature film and television production asset amortization and impairments, as well as the amortization of costs related to content delivery and technology assets utilized for our WWE Network.  The Company believes the presentation of OIBDA is relevant and useful for investors because it allows investors to view our segment performance in the same manner as the primary method used by management to evaluate segment performance and make decisions about allocating resources.  Additionally, we believe that OIBDA provides a meaningful representation of operating cash flows within our segments.

We record certain costs within our Corporate and Other segment since the costs benefit the Company as a whole and are not directly attributable to our other reportable segments. These costs are presented into two categories, Corporate Support and Business Support. Corporate Support expenses primarily include our corporate general and administrative functions. Business Support expenses

10

WORLD WRESTLING ENTERTAINMENT, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(In thousands, except share data)

(Unaudited)

include our sales and marketing functions, our international offices, talent development costs, including costs associated with our WWE Performance Center, and our business strategy and data analytics functions.

We do not disclose assets by segment information. In general, assets of the Company are leveraged across its reportable segments and we do not provide assets by segment information to our chief operating decision maker, as that information is not typically used in the determination of resource allocation and assessing business performance of each reportable segment.

The following tables present summarized financial information for each of the Company's reportable segments:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2017		2016		2017		2016
Net revenues:
Network	$	54,903	$	51,750	$	101,373	$	92,081
Television		66,181		56,043		130,197		116,762
Home Entertainment		3,000		3,155		5,432		6,424
Digital Media		8,047		6,489		13,782		11,886
Live Events		52,837		51,912		84,933		77,246
Licensing		9,391		8,916		29,488		29,958
Venue Merchandise		6,795		8,770		13,883		14,210
WWEShop		8,387		7,491		16,308		14,298
WWE Studios		3,550		3,289		4,832		5,232
Corporate & Other		1,495		1,179		2,802		1,997
Total net revenues	$	214,586	$	198,994	$	403,030	$	370,094
OIBDA:
Network	$	2,997	$	(5,656)	$	17,283	$	10,104
Television		31,824		27,204		62,658		55,511
Home Entertainment		910		964		1,732		2,508
Digital Media		1,491		183		986		71
Live Events		21,606		23,425		29,727		29,510
Licensing		4,456		3,953		17,850		18,224
Venue Merchandise		2,516		3,627		5,104		5,692
WWEShop		2,140		1,571		4,034		2,972
WWE Studios		(717)		439		(3,645)		2
Corporate & Other		(50,151)		(48,171)		(107,800)		(89,464)
Total OIBDA	$	17,072	$	7,539	$	27,929	$	35,130

Reconciliation of Total Operating Incometo Total OIBDA

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2017		2016		2017		2016
Total operating income	$	10,695	$	1,573	$	14,684	$	23,577
Depreciation and amortization		6,377		5,966		13,245		11,553
Total OIBDA	$	17,072	$	7,539	$	27,929	$	35,130

11

WORLD WRESTLING ENTERTAINMENT, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(In thousands, except share data)

(Unaudited)

Geographic Information

Net revenues by major geographic region are based upon the geographic location of where our content is distributed. The information below summarizes net revenues to unaffiliated customers by geographic area:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2017		2016		2017		2016
North America	$	159,409	$	149,761	$	305,632	$	279,781
Europe/Middle East/Africa		36,620		36,142		63,205		63,748
Asia Pacific		15,542		11,245		28,516		22,834
Latin America		3,015		1,846		5,677		3,731
Total net revenues	$	214,586	$	198,994	$	403,030	$	370,094

Revenues generated from the United Kingdom, our largest international market, totaled $23,032and$24,000, and $38,712 and $40,876for the three and six months ended June 30, 2017 and 2016, respectively.  The Company’s property and equipment was almost entirely located in the United States at June 30, 2017 and 2016.

4. Earnings Per Share

For purposes of calculating basic and diluted earnings per share, we used the following weighted average common shares outstanding (in thousands):

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2017		2016		2017		2016
Net income	$	5,085	$	862	$	5,973	$	14,747
Weighted average basic common shares outstanding		76,455		75,952		76,448		75,945
Dilutive effect of restricted and performance stock units		2,105		1,474		1,920		1,354
Dilutive effect of employee share purchase plan		3		3		6		5
Weighted average dilutive common shares outstanding		78,563		77,429		78,374		77,304
Earnings per share:
Basic	$	0.07	$	0.01	$	0.08	$	0.19
Diluted	$	0.06	$	0.01	$	0.08	$	0.19
Anti-dilutive outstanding restricted and performance stock units (excluded from per-share calculations)		—		—		2		—

The convertible notes due 2023 had no impact on diluted earnings per share during the three and six months ended June 30, 2017 since the average price of our common stock did not exceed the conversion price of $24.91 per share.

5. Stock-based Compensation

Our 2016  Omnibus Incentive Plan (the “2016 Plan”) provides for equity-based incentive awards as determined by the Compensation Committee of the Board of Directors as incentives and rewards to encourage officers, employees, consultants and advisors of the Company and its affiliates and to non-employee directors of the Company to participate in our long-term success.

Restricted Stock Units

The Company grants restricted stock units ("RSUs") to officers and employees under the 2016 Plan. Stock-based compensation costs associated with our RSUs are determined using the fair market value of the Company’s common stock on the date of the grant. 

12

WORLD WRESTLING ENTERTAINMENT, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(In thousands, except share data)

(Unaudited)

These costs are recognized over the requisite service period using the graded vesting method, net of estimated forfeitures.  RSUs have a service requirement typically over a three and one half year vesting schedule and vest in equal annual installments.  We estimate forfeitures based on historical trends when recognizing compensation expense and adjust the estimate of forfeitures when they are expected to differ or as forfeitures occur. Unvested RSUs accrue dividend equivalents at the same rate as are paid on our shares of Class A common stock.  The dividend equivalents are subject to the same vesting schedule as the underlying RSUs.

The following table summarizes the RSU activity during the six months ended June 30, 2017:

	Units	Weighted- Average Grant-Date Fair Value
Unvested at January 1, 2017	356,761	$	16.68
Granted	311,223	$	19.46
Vested	(7,098)	$	19.02
Forfeited	(28,041)	$	17.18
Dividend equivalents	7,207	$	18.01
Unvested at June 30, 2017	640,052	$	18.00

Performance Stock Units

The Company grants performance stock units (“PSUs”) to officers and employees under the 2016 Plan. Stock-based compensation costs associated with our PSUsare initially determined using the fair market value of the Company’s common stock on the date the awards are approved by our Compensation Committee (service inception date). The vesting of these PSUs are subject to certain performance conditions and a service requirement of typically three and one half years. Until such time as the performance conditions are met, stock compensation costs associated with these PSUs are re-measured each reporting period based upon the fair market value of the Company's common stock and the estimated performance attainment on the reporting date. The ultimate number of PSUs that are issued to an employee is the result of the actual performance of the Company at the end of the performance period compared to the performance conditions.  Stock compensation costs for our PSUs are recognized over the requisite service period using the graded vesting method, net of estimated forfeitures. We estimate forfeitures based on historical trends when recognizing compensation expense and adjust the estimate of forfeitures when they are expected to differ or as forfeitures occur.  Unvested PSUs accrue dividend equivalents once the performance conditions are met at the same rate as are paid on our shares of Class A common stock.  The dividend equivalents are subject to the same vesting schedule as the underlying PSUs.

The following table summarizes the PSU activity during the six months ended June 30, 2017:

	Units	Weighted- Average Grant-Date Fair Value
Unvested at January 1, 2017	2,161,311	$	16.39
Granted	550,460	$	20.37
Achievement adjustment	282,662	$	20.96
Forfeited	(33,686)	$	19.50
Dividend equivalents	27,364	$	17.87
Unvested at June 30, 2017	2,988,111	$	18.32

During thesix months ended June 30, 2017,  we granted 550,460 PSUs which are subject to certain performance conditions.

During the year ended December 31, 2016, we granted 956,730 PSUs,  which were subject to performance conditions.  During the first quarter of2017,  it was determined that the performance conditions related to these PSUs were exceeded, which resulted in an increase of 282,662 PSUs in 2017 relating to the initial 2016 PSU grant.

13

WORLD WRESTLING ENTERTAINMENT, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(In thousands, except share data)

(Unaudited)

Stock-based compensation costs, which includes costs related to RSUs, PSUs and the Company's qualified employee stock purchase plan, totaled $6,167 and $6,429, and $12,782 and $9,589for the three and six months ended June 30, 2017 and 2016, respectively.

6. Property and Equipment

Property and equipment consisted of the following:

	As of
	June 30,		December 31,
	2017		2016
Land, buildings and improvements	$	131,383	$	130,330
Equipment		101,038		136,114
Corporate aircraft		31,277		31,277
Vehicles		244		244
		263,942		297,965
Less: accumulated depreciation and amortization		(132,390)		(165,334)
Total	$	131,552	$	132,631

Depreciation expense for property and equipment totaled $5,937 and$5,655, and $12,366 and $10,936for the three and six months ended June 30, 2017 and 2016, respectively.

During the second quarter of 2017, the Company removed fully depreciated assets, primarily television production equipment, that were no longer in use and reduced property and equipment cost by $43,297, with a corresponding reduction to accumulated depreciation.This adjustment did not have an impact on our consolidated financial statements.

7. Feature Film Production Assets, Net

Feature film production assets consisted of the following:

	As of
	June 30,		December 31,
	2017		2016
In release	$	17,721	$	13,892
Completed but not released		3,518		8,881
In production		6,748		3,387
In development		1,130		977
Total	$	29,117	$	27,137

Approximately 31% of “In release” film production assets are estimated to be amortized over the next 12 months, and approximately 69% of “In release” film production assets are estimated to be amortized over the next three years. We anticipate amortizing approximately80% of our "In release" film production assets within four years as we receive revenues associated with television distribution of our licensed films. During thethree and six months ended June 30, 2017 and 2016, we amortized $1,988 and $1,595, and $2,641 and $2,701, respectively, of feature film production assets.

During the six months ended June 30, 2017, we released  two feature films via theatrical distribution, The Resurrection of Gavin Stone and Sleight, and three films direct to DVD, Surf’s Up 2: WaveMania,  The Jetsons & WWE: Robo-WrestleMania! and The Marine 5: Battleground.These five films comprised $6,628 of our “In release” feature film assets as of June 30, 2017.

We currently have three films designated as “Completed but not released” and have two films “In production.” We also have capitalized certain script development costs and pre-production costs for various other film projects designated as “In development.”  Capitalized script development costs are evaluated at each reporting period for impairment and to determine if a project is deemed to be abandoned. We did not record any impairment charges related to abandoned projects during the periods presented.

14

WORLD WRESTLING ENTERTAINMENT, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(In thousands, except share data)

(Unaudited)

Unamortized feature film production assets are evaluated for impairment each reporting period. We review and revise estimates of ultimate revenue and participation costs at each reporting period to reflect the most current information available. If estimates for a film’s ultimate revenue and/or costs are revised and indicate a significant decline in a film’s profitability or if events or circumstances change that indicate we should assess whether the fair value of a film is less than its unamortized film costs, we calculate the film's estimated fair value using a discounted cash flows model. If fair value is less than unamortized cost, the film asset is written down to fair value.

We recorded impairment charges of $1,084and $3,162related to our feature filmsduring thethree and six months ended June 30, 2017, respectively. These impairment charges represent the excess of the recorded net carrying value over the estimated fair value. We did not record any impairment charges during the three and six months ended June 30, 2016 related to our feature films.

8. Television Production Assets, Net

Television production assets consisted of the following:

	As of
	June 30,		December 31,
	2017		2016
In release	$	3,633	$	12,198
In production		5,775		310
Total	$	9,408	$	12,508

Television production assets consist primarily of non-live event episodic television series we have produced for distribution through a variety of platforms including on our WWE Network. Amounts capitalized include development costs, production costs, production overhead and employee salaries. Costs to produce episodic programming for television or distribution on WWE Network are amortized in the proportion that revenues bear to management's estimates of the ultimate revenue expected to be recognized from exploitation, exhibition or sale.

Amortization of television production assets consisted of the following:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2017		2016		2017		2016
WWE Network programming	$	510	$	7,396	$	3,119	$	8,729
Television programming		4,595		2,042		7,602		8,840
Total	$	5,105	$	9,438	$	10,721	$	17,569

Costs to produce our live event programming are expensed when the event is first broadcast, and are not included in the capitalized costs or amortization tables noted above.

Unamortized television production assets are evaluated for impairment each reporting period. If conditions indicate a potential impairment, and the estimated future cash flows are not sufficient to recover the unamortized asset, the asset is written down to fair value. In addition, if we determine that a program will not likely air, we will expense the remaining unamortized asset. During the three and six months ended June 30, 2017 and 2016, we did not record any impairments related to our television production assets.

15

WORLD WRESTLING ENTERTAINMENT, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(In thousands, except share data)

(Unaudited)

9. Investment Securities and Short-Term Investments

Investment Securities

Included within Investment Securities are the following:

	As of
	June 30,		December 31,
	2017		2016
Equity method investment	$	14,584	$	14,592
Cost method investments		10,503		10,365
Total investment securities	$	25,087	$	24,957

Equity Method Investment

In March 2015, WWE and Authentic Brands Group (“ABG”) formed a joint venture to re-launch an apparel and lifestyle brand, Tapout (the "Brand"). ABG agreed to contribute certain intangible assets for the Brand, licensing contracts, systems, and other administrative functions to Tapout.  The Company agreed to contribute promotional and marketing services related to the venture for a period of at least five years in exchange for a 50% interest in the profits and losses and voting interest in Tapout. The Company valued its initial investment of$13,800based on the fair value of the existing licensing contracts contributed by ABG.  To the extent that Tapout records income or losses, we record our share proportionate to our ownership percentage, and any dividends received reduce the carrying amount of the investment. Net equity method earnings from Tapout are included as a component of Investment income, net on the Consolidated Statements of Operations. Net dividends received from Tapout are reflected on the Consolidated Statements of Cash Flows as a component of Equity in earnings of affiliate, net of dividends received. The Company did not record any impairment charges related to our investment in Tapout during thethree and six months ended June 30, 2017 and 2016

The following table presents the net equity method earnings from Tapout and net dividends received from Tapout for the periods presented:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2017		2016		2017		2016
Net equity method earnings from Tapout	$	190	$	415	$	645	$	837
Net dividends received from Tapout		(315)		(453)		(668)		(747)
Equity in earnings of affiliate, net of dividends received	$	(125)	$	(38)	$	(23)	$	90

As promotional services are provided to Tapout, we record revenue and reduce the existing service obligation. During the three and six months ended June 30, 2017 and 2016, we recorded revenues of$672 and$947, and $1,394 and$1,705, respectively, related to our fulfillment of our promotional services obligation to Tapout. The remaining service obligation as of June 30, 2017 was $7,083, and was included in Deferred Income and Non-Current Deferred Income for $2,760 and $4,323, respectively.

Our known maximum exposure to loss approximates the remaining service obligation to Tapout, which was $7,083 as of June 30, 2017. Creditors of Tapout do not have recourse against the general credit of the Company.

Cost Method Investments

The increase in the cost method investment balance since December 31, 2016 was primarily due to the addition of a new cost method investment to our portfolio. We evaluate our cost method investments for impairment if factors indicate that a significant decrease in value has occurred.  The Company did not record any impairment charges on our cost method investments during the three and six months ended June 30, 2017 and 2016.

16

WORLD WRESTLING ENTERTAINMENT, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(In thousands, except share data)

(Unaudited)

Short-Term Investments

Short-term investments measured at fair value consisted of the following:

	As of June 30, 2017								As of December 31, 2016
			Gross Unrealized								Gross Unrealized
	Amortized						Fair		Amortized						Fair
	Cost		Gain		(Loss)		Value		Cost		Gain		(Loss)		Value
Corporate bonds	$	50,259	$	3	$	(90)	$	50,172	$	40,183	$	9	$	(58)	$	40,134
U.S. Treasury securities		47,901		13		(78)		47,836		—		—		—		—
Municipal bonds		19,459		15		(13)		19,461		15,075		—		(45)		15,030
Government agency bonds		12,020		—		(41)		11,979		—		—		—		—
Total	$	129,639	$	31	$	(222)	$	129,448	$	55,258	$	9	$	(103)	$	55,164

We classify the investments listed in the above table as available-for-sale securities.  Such investments consist primarily of corporate bonds, U.S. Treasury securities, municipal bonds, including pre-refunded municipal bonds, and government agency bonds.  These investments are stated at fair value as required by the applicable accounting guidance. Unrealized gains and losses on such securities are reflected, net of tax, as other comprehensive income (loss) in the Consolidated Statements of Comprehensive Income (Loss).

Our corporate bonds, U.S. Treasury securities, municipal bonds and government agency bonds are included in Short-term investments, net on our Consolidated Balance Sheets. Realized gains and losses on investments are included in earnings and are derived using the specific identification method for determining the cost of securities sold. As of June 30, 2017, contractual maturities of these short-term investments are as follows:

	Maturities
Corporate bonds	3 months - 3 years
U.S. Treasury securities	3 months - 3 years
Municipal bonds	1 month - 3 years
Government agency bonds	8 months - 5 years

The following table summarizes the short-term investment activity:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2017		2016		2017		2016
Proceeds from sales and maturities of short-term investments	$	2,640	$	400	$	13,660	$	400
Purchases of short-term investments	$	27,411	$	—	$	88,696	$	—

10. Fair Value Measurement

Fair value is determined based on the exchange price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. Fair value is a market-based measurement based on assumptions that market participants would use to price the asset or liability. Accordingly, the framework considers markets or observable inputs as the preferred source of value followed by assumptions based on hypothetical transactions, in the absence of market inputs.  The fair value should be calculated based on assumptions that market participants would use in pricing the asset or liability, not on assumptions specific to the entity.  In addition, the fair value of assets and liabilities should include consideration of non-performance risk, including the Company's own credit risk.

Additionally, the accounting guidance establishes a three-level hierarchy that ranks the quality and reliability of information used in developing fair value estimates.  The hierarchy gives the highest priority to quoted prices in active markets and the lowest priority to unobservable data.  In cases where two or more levels of inputs are used to determine fair value, a financial instrument's level is determined based on the lowest level input that is considered significant to the fair value measurement in its entirety. The three input levels of the fair value hierarchy are summarized as follows:

17

WORLD WRESTLING ENTERTAINMENT, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(In thousands, except share data)

(Unaudited)

Level 1-	Observable inputs such as quoted prices in active markets for identical assets or liabilities;
Level 2-	Inputs other than quoted prices in active markets for similar assets and liabilities that are directly or indirectly observable; or
Level 3-	Unobservable inputs, such as discounted cash flow models or valuations, in which little or no market data exists.

The following assets are required to be measured at fair value on a recurring basis and the classification within the hierarchy was as follows:

	Fair Value at June 30, 2017								Fair Value at December 31, 2016
	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
Corporate bonds	$	50,172	$	—	$	50,172	$	—	$	40,134	$	—	$	40,134	$	—
U.S. Treasury securities		47,836		—		47,836		—		—		—		—		—
Municipal bonds		19,461		—		19,461		—		15,030		—		15,030		—
Government agency bonds		11,979		—		11,979		—		—		—		—		—
Total	$	129,448	$	—	$	129,448	$	—	$	55,164	$	—	$	55,164	$	—

Certain financial instruments are carried at cost on the Consolidated Balance Sheets, which approximates fair value due to their short-term, highly liquid nature. The carrying amounts of cash and cash equivalents, money market accounts, accounts receivable, and accounts payable approximate fair value because of the short-term nature of such instruments. The carrying amount of debt outstanding pursuant to our Film Credit Facility approximates fair value as interest rates on these instruments approximate current market rates.

We have classified our investment in corporate bonds, U.S. Treasury securities, municipal bonds and government agency bonds within Level 2, as their valuation requires quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and/or model-based valuation techniques for which all significant inputs are observable in the market or can be corroborated by observable market data. The corporate bonds, U.S. Treasury securities, municipal bonds and government agency bonds are valued based on model-driven valuations. A third party service provider assists the Company with compiling market prices from a variety of industry standard data sources, security master files from large financial institutions and other third-party sources that are used to value our corporate bond, U.S. Treasury securities, municipal bond and government agency bond investments. The Company did not have any transfers between Level 1, Level 2, and Level 3 fair value investments during the periods presented.

The fair value measurements of our cost method investments are classified within Level 3 as significant unobservable inputs are used to measure the fair value of these assets due to the absence of quoted market prices and inherent lack of liquidity. Significant unobservable inputs include variables such as near-term prospects of the investees, recent financing activities of the investees, and the investees' capital structure, as well as other economic variables, which reflect assumptions market participants would use in pricing these assets. Our investments are recorded at fair value only if an impairment charge is recognized. The Company did not record any impairment charges on these assets during the three and six months ended June 30, 2017 and 2016. 

The Company's long lived property and equipment, feature film and television production assets are required to be measured at fair value on a non-recurring basis if it is determined that indicators of impairment exist. These assets are recorded at fair value only when an impairment is recognized. The Company did not record any impairment charges on long lived property and equipment and television production assets during the three and six months ended June 30, 2017 and 2016. The Company classifies these assets as Level 3 within the fair value hierarchy due to significant unobservable inputs.

During thesix months ended June 30, 2017, the Company recorded impairment charges of $3,162on feature film production assets based upon fair value measurements of $2,697. See Note 7, Feature Film Production Assets, Net, for further discussion.We did not record any impairment charges on these assets during the three and six months ended June 30, 2016.  The Company classifies these assets as Level 3 within the fair value hierarchy due to significant unobservable inputs.The Company utilizes a discounted cash flows model to determine the fair value of these impaired films where indicators of impairment exist. The significant unobservable inputs to this model are the Company’s expected cash flows for the film, including projected home video sales, pay and free TV sales and international sales, and a discount rate of 13% that we estimate market participants would seek for bearing the risk associated with such assets. The Company utilizes an independent third party valuation specialist who assists us in gathering the necessary inputs used in our model.

18

WORLD WRESTLING ENTERTAINMENT, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(In thousands, except share data)

(Unaudited)

The fair value of the Company’s long-term debt, consisting of a mortgage loan assumed in connection with a building purchase and a promissory note secured by the Company's Corporate Jet, is estimated based upon quoted price estimates for similar debt arrangements. At June 30, 2017, the face amount of the mortgage loan and promissory note approximates their fair value.

As of June 30, 2017 and December 31, 2016, the calculation of the fair value of the debt component of the Company’s convertible debt required the use of Level 3 inputs, and was determined by calculating the fair value of similar debt without the associated conversion feature, using a borrowing rate of approximately 6.40%:

	June 30, 2017				December 31, 2016
	Fair Value		Carrying Value (1)		Fair Value		Carrying Value (1)
Convertible senior notes	$	181,454	$	180,597	$	166,702	$	166,050

(1) The carrying value of the convertible debt instrument presented in the table above represents the face value of the convertible note less unamortized debt discount.

11. Accounts Payable and Accrued Expenses

Accounts payable and accrued expenses consisted of the following:

	As of
	June 30,		December 31,
	2017		2016
Trade related	$	8,673	$	10,118
Staff related		8,908		7,494
Management incentive compensation		9,737		21,542
Talent related		5,748		6,969
Accrued WWE Network related expenses		2,565		2,120
Accrued event and television production		6,773		7,031
Accrued legal and professional		5,423		1,952
Accrued purchases of property and equipment		1,993		2,940
Accrued other		10,576		10,194
Total	$	60,396	$	70,360

Accrued other includes accruals for our international and licensing business activities, as well as other miscellaneous accruals, none of which categories individually exceeds 5% of current liabilities. The decrease in accrued expenses is primarily due to the payout of the Company’s fiscal 2016 bonus, partially offset by an increase in accrued legal and professional fees primarily related to non-recurring legal matters and other contractual obligations.

19

WORLD WRESTLING ENTERTAINMENT, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(In thousands, except share data)

(Unaudited)

12.  Long-Term Debt and Credit Facilities

Long-Term Debt

Included within Long-Term Debt are the following:

	As of
	June 30,		December 31,
	2017		2016
Current portion of long-term debt:
Film Credit Facility	$	2,642	$	1,583
Aircraft financing		4,588		4,538
Total current portion of long-term debt		7,230		6,121
Long-term debt:
Aircraft financing	$	10,290	$	12,596
Mortgage		23,000		23,000
Total long-term debt		33,290		35,596
Total	$	40,520	$	41,717

Mortgage

In September 2016, the Company acquired real property and assumed future obligations under a loan agreement, dated June 8, 2015, in the principal amount of $23,000, which loan is secured by a mortgage on the property. The loan bears interest at the rate of 4.50% per annum and requires monthly interest only payments of $86 until June 2018 and interest and principal payments of $117 per month thereafter, with a balloon payment on maturity in July 2025. There is a significant yield maintenance premium for prepayments. Pursuant to the loan agreement, since the assets of WWE Real Estate, a subsidiary of the Company, represent collateral for the underlying mortgage, these assets will not be available to satisfy debts and obligations due to any other creditors of the Company.

Aircraft Financing

In August 2013, the Company entered into a $31,568 promissory note (the “Aircraft Note”) with Citizens Asset Finance, Inc., for the purchase of a 2007 Bombardier Global 5000 aircraft and refurbishments.  The Aircraft Note bears interest at a rate of 2.18% per annum, is payable in monthly installments of $406, inclusive of interest, and has a final maturity of August 7, 2020.  The Aircraft Note is secured by a first priority perfected security interest in the purchased aircraft.

Credit Facilities

Revolving Credit Facility

In December 2016, in connection with the issuance of the Notes, as defined below, we entered into an amended and restated $100,000 senior unsecured revolving credit facility with a syndicated group of banks, with JPMorgan Chase Bank, N.A. acting as Administrative Agent (the “Revolving Credit Facility”). The Revolving Credit Facility has a maturity date ofJuly 29, 2021.  Applicable interest rates for the borrowings under the Revolving Credit Facility are based on the Company's current consolidated leverage ratio.  As of June 30, 2017, the LIBOR-based rate plus margin was 2.55%. The Company is required to pay a commitment fee calculated at a rate per annum of 0.30% on the average daily unused portion of the Revolving Credit Facility. Under the terms of the Revolving Credit Facility, the Company is subject to certain financial covenants and restrictions, including restrictions on our ability to pay dividends and limitations with respect to our indebtedness, liens, mergers and acquisitions, dispositions of assets, investments, capital expenditures and transactions with affiliates.

As of June 30, 2017, the Company was in compliance with the Revolving Credit Facility, and had available debt capacity under the terms of the Revolving Credit Facility of $100,000. As of June 30, 2017 and December 31, 2016, there were no amounts outstanding under the Revolving Credit Facility.

20

WORLD WRESTLING ENTERTAINMENT, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(In thousands, except share data)

(Unaudited)

Film Credit Facility

In May 2015, two domestic subsidiaries of the Company, WWE Studios Finance Corporation and WWE Studios Finance Holding Corporation (collectively, the “Loan Parties”) entered into a $35,000 secured asset based revolving credit agreement, as amended, with Bank of America, N.A., as Administrative Agent and lender (the “Film Credit Facility”).  Funds under the Film Credit Facility can be used for, among other things, development of films and television projects. Under the Film Credit Facility, the WWE Studios Finance Corporationis allowed to borrow amounts of up to an aggregate of $35,000 based on a borrowing base formula.  As of June 30, 2017, borrowings of $2,642remain outstandingunder the Film Credit Facility. The Company has the intent and ability to repay the amounts outstanding under the Film Credit Facility within one year, and as such, the outstanding balance as of June 30, 2017 has been classified as a current portion of long-debt within our Consolidated Balance Sheets. The Film Credit Facility has a five-year term, and it is secured by substantially all the assets of the Loan Parties. The applicable interest rate for borrowings under the Film Credit Facility is a LIBOR-based rate plus 2.50% on LIBOR-based borrowings or an alternate base rate plus 1.50% for alternate base rate borrowings, in all cases subject to adjustment downward based on the status of film projects.  As of June 30, 2017, the LIBOR-based rate plus margin was 3.80%. The Loan Parties are required to pay certain fees, including a commitment fee, calculated at a rate per annum of 0.50% on the average daily unutilized portion of the Film Credit Facility.  Under the terms of the Film Credit Facility, the Loan Parties are subject to certain financial covenants and restrictions, including limitations with respect to indebtedness, liens, mergers and acquisitions, dispositions of assets, investments, capital expenditures, and transactions with affiliates.  As of June 30, 2017, the Company was in compliance with the Film Credit Facility,  and had $7,265of available capacity under the terms of the Film Credit Facility.

13. Convertible Debt

In December 2016, we issued$200,000 aggregate principal amount of 3.375% convertible senior notes due 2023and subsequently in January 2017, we issued an additional$15,000 aggregate principal amount of such convertible notes through the partial exercise of an over-allotment option (collectively, the “Notes”).  The sale of the Notes in December 2016 and January 2017 resulted in $193,899and $14,534 in net proceeds, respectively, to WWE after deducting the initial purchasers’ discount and the estimated offering expenses. We used $36,658 of the net proceeds from the sale of the Notes to pay the cost of the convertible bond hedges, as described below, after such cost was partially offset by the proceeds to us from the sale of warrants in the warrant transactions, as described below.The remaining proceeds will be used to support the execution of our long-term growth strategy and for general corporate purposes.

The Notes are governed by an Indenture between us, as issuer, and U.S. Bank, National Association, as trustee. The Notes will pay interest semi-annually in arrears on June 15 and December 15 of each year.

Upon conversion of the Notes, we will pay or deliver, as the case may be, cash, shares of our Class A common stock or a combination of cash and shares of Class A common stock, at our election, at a conversion rate of approximately 40.1405 shares of common stock per $1 principal amount of the Notes, which corresponds to an initial conversion price of approximately $24.91 per share of our Class A common stock.  At any time, prior to the close of business on the business day immediately preceding June 15, 2023, the Notes will be convertible under the following circumstances:

a) During any calendar quarter beginning after the calendar quarter ending on December 31, 2016 (and only during such calendar quarter), if the last reported sale price of our Class A common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on the last trading day of the immediately preceding quarter is greater than or equal to 130% of the conversion price on each applicable trading day;

b) During the 5 business day period after any 10 consecutive trading day period (the “measurement period”) in which the trading price per $1 principal amount of Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of our Class A common stock and the conversion rate on each such trading day;

c) Upon the occurrence of specified corporate events; or

d) On or after June 15, 2023 until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert all or any portion of their Notes, in multiples of $1 principal amount, at the option of the holder regardless of the foregoing circumstances.

As of June 30, 2017, the Notes are not yet convertible.

21

WORLD WRESTLING ENTERTAINMENT, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(In thousands, except share data)

(Unaudited)

As a result of our cash conversion option, we separately accounted for the value of the embedded conversion option as a debt discount.  The value of the embedded conversion option was determined based on the estimated fair value of the debt without the conversion feature, which was determined using an expected present value technique (income approach) to estimate the fair value of similar nonconvertible debt; the debt discount is being amortized as additional non-cash interest expense over the term of the Notes using the effective interest method with an effective interest rate of 6.40% per annum. The equity component is not remeasured as long as it continues to meet the conditions for equity classification. In accounting for the transaction costs related to the Note issuances, we allocated the total amount of offering costs incurred to the debt and equity components based on their relative values. Offering costs attributable to the debt component, totaling $5,454, are being amortized as non-cash interest expense over the term of the Notes, and offering costs attributable to the equity component, totaling $1,110, were netted with the equity component in stockholders' equity.

The Notes consisted of the following components:

	As of
	June 30,		December 31,
	2017		2016
Debt component:
Principal	$	215,000	$	200,000
Less: Unamortized debt discount		(34,403)		(33,950)
Less: Unamortized debt issuance costs		(5,168)		(5,042)
Net carrying amount	$	175,429	$	161,008
Equity component (1)	$	35,547	$	33,060

(1) Recorded in the Consolidated Balance Sheets within additional paid-in capital, net of the $1,110 issuance costs in equity.

The following table sets forth total interest expense recognized related to the Notes:

	Three Months Ended		Six Months Ended
	June 30,		June 30,
	2017		2017
3.375% contractual coupon	$	1,814	$	3,604
Amortization of debt discount		1,068		2,104
Amortization of debt issuance costs		137		269
Interest expense	$	3,019	$	5,977

Convertible Note Hedge

In connection with the pricing of the Notes, and in order to reduce the potential dilution to our common stock and/or offset cash payments due upon conversion of the Notes, in December 2016 and January 2017, we entered into convertible note hedge transactions with respect to our Class A common stock (the “Note Hedge”) with three separate counterparties. The Note Hedge transactions in December 2016 and January 2017 resulted in an aggregate payment to the Note Hedge counterparties of $34,100and $2,558, respectively.  The Note Hedge transactions cover approximately 8.03 million shares of our Class A common stock related to the December 2016 issuance and 602,107 shares of our Class A common stock related to the January 2017 issuance, and are exercisable upon conversion of the Notes.  The Note Hedge will expire on December 15, 2023, unless earlier terminated. The Note Hedge transactions have been accounted for as part of additional paid-in capital.

Warrant Transactions

In connection with entering into the Note Hedge transactions described above, we also concurrently entered into separate warrant transactions (the “Warrants”), to sell warrants to acquire approximately 8.03 million shares of our Class A common stock in connection with the Note Hedge transaction in December 2016 and 602,107 shares of our Class A common stock in connection with the Note Hedge transaction in January 2017, both at an initial strike price of approximately $31.89 per share, which represents a premium of approximately 60.0% over the last reported sale price of our Class A common stock of $19.93 on December 12, 2016 (initial issuance date of the Notes).  The Warrant transactions in December 2016 and January 2017 resulted in aggregate proceeds received of $19,460and $1,460, respectively, from the sale of the Warrants to the counterparties. The Warrants transactions have been accounted for as part of additional paid-in capital.

22

WORLD WRESTLING ENTERTAINMENT, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(In thousands, except share data)

(Unaudited)

14. Concentration of Credit Risk

We continually monitor our position with, and the credit quality of, the financial institutions that are counterparties to our financial instruments. Our accounts receivable relate principally to a limited number of distributors, including our WWE Network, television, pay-per-view, and home video distributors, and licensees that produce consumer products containing our intellectual property. We closely monitor the status of receivables with these customers and maintain allowances for anticipated losses as deemed appropriate. At June 30, 2017, our three largest receivable balances from customers were 19%,  17% and 12%ofour gross accounts receivable. At December 31, 2016,  our two largest receivable balances from customers 17%and 15%of our gross accounts receivable. No other customers individually exceeded 10% of our gross accounts receivable balance.

15. Income Taxes

As of June 30, 2017, we had $32,568ofdeferred tax assets, net, included in non-current income tax assets in our Consolidated Balance Sheets.  As of December 31, 2016, we had $32,556 of deferred tax assets, net, included in non-current income tax assets in our Consolidated Balance Sheets.

The Company considers all available evidence, both positive and negative, to determine whether, based on the weight of that evidence, a valuation allowance is required to reduce the net deferred tax assets to the amount that is more likely than not to be realized in future periods. The Company believes that based on past performance, expected future taxable income and prudent and feasible tax planning strategies, it is more likely than not that the net deferred tax assets will be realized. Changes in these factors may cause us to increase our valuation allowance on deferred tax assets, which would impact our income tax expense in the period we determine that these factors have changed.

16. Film and Television Production Incentives

The Company has access to various governmental programs that are designed to promote film and television production within the United States of America and certain international jurisdictions.  Incentives earned with respect to expenditures on qualifying film production activities and capital projects are recorded as an offset to the related asset balances. Incentives earned with respect to television and other production activities are recorded as an offset to production expenses. The Company recognizes these benefits when we have reasonable assurance regarding the realizable amount of the incentives.  

We recorded the following incentives during the three and six months ended June 30, 2017 and 2016:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2017		2016		2017		2016
Television production incentives	$	—	$	—	$	—	$	2,530
Feature film production incentives		23		588		483		1,412
Total	$	23	$	588	$	483	$	3,942

17. Commitments and Contingencies

Legal Proceedings

On October 23, 2014, a lawsuit was filed in the U. S. District Court for the District of Oregon, entitled William Albert Haynes III, on behalf of himself and others similarly situated, v. World Wrestling Entertainment, Inc.  This complaint was amended on January 30, 2015 and alleges that the Company ignored, downplayed, and/or failed to disclose the risks associated with traumatic brain injuries suffered by WWE’s performers and seeks class action status.  On March 31, 2015, the Company filed a motion to dismiss the first amended class action complaint in its entirety or, if not dismissed, to transfer the lawsuit to the U.S. District Court for the District of Connecticut.  Without addressing the merits of the Company's motion to dismiss, the Court transferred the case to Connecticut on June 25, 2015.  The plaintiffs filed an objection to such transfer, which was denied on July 27, 2015.  On January 16, 2015, a second lawsuit was filed in the U. S. District Court for the Eastern District of Pennsylvania, entitled Evan Singleton and Vito LoGrasso, individually and on behalf of all others similarly situated, v. World Wrestling Entertainment, Inc., alleging many of the same

23

WORLD WRESTLING ENTERTAINMENT, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(In thousands, except share data)

(Unaudited)

allegations as Haynes.  On February 27, 2015, the Company moved to transfer venue to the U.S. District Court for the District of Connecticut due to forum-selection clauses in the contracts between WWE and the plaintiffs and that motion was granted on March 23, 2015.  The plaintiffs filed an amended complaint on May 22, 2015 and, following a scheduling conference in which the court ordered the plaintiffs to cure various pleading deficiencies, the plaintiffs filed a second amended complaint on June 15, 2015.  On June 29, 2015, WWE moved to dismiss the second amended complaint in its entirety.   On April 9, 2015, a third lawsuit was filed in the U. S. District Court for the Central District of California, entitled Russ McCullough, a/k/a “Big Russ McCullough,” Ryan Sakoda, and Matthew R. Wiese a/k/a “Luther Reigns,” individually and on behalf of all others similarly situated, v. World Wrestling Entertainment, Inc., asserting similar allegations to Haynes.  The Company again moved to transfer the lawsuit to Connecticut due to forum-selection clauses in the contracts between WWE and the plaintiffs, which the California court granted on July 10, 2015.  On September 21, 2015, the plaintiffs amended this complaint and, on November 16, 2015, the Company moved to dismiss the amended complaint.  Each of these suits seeks unspecified actual, compensatory and punitive damages and injunctive relief, including ordering medical monitoring.  The Haynes and McCullough cases purport to be class actions.  On February 18, 2015, a lawsuit was filed in Tennessee state court and subsequently removed to the U.S. District Court for the Western District of Tennessee, entitled Cassandra Frazier, individually and as next of kin to her deceased husband, Nelson Lee Frazier, Jr., and as personal representative of the Estate of Nelson Lee Frazier, Jr. Deceased, v. World Wrestling Entertainment, Inc.  A similar suit was filed in the U. S. District Court for the Northern District of Texas entitled Michelle James, as mother and next friend of Matthew Osborne, minor child, and Teagan Osborne, a minor child v. World Wrestling Entertainment, Inc. These lawsuits contain many of the same allegations as the other lawsuits alleging traumatic brain injuries and further allege that the injuries contributed to these former talents’ deaths.  WWE moved to transfer the Frazier and Osborne lawsuits to the U.S. District Court for the District of Connecticut based on forum-selection clauses in the decedents’ contracts with WWE, which motions were granted by the respective courts.  On November 23, 2015, amended complaints were filed in Frazier and Osborne, which the Company moved to dismiss on December 16, 2015 and December 21, 2015, respectively. On November 10, 2016, the Court granted the Company’s motions to dismiss the Frazier and Osborne lawsuits in their entirety. On June 29, 2015, the Company filed a declaratory judgment action in the U. S. District Court for the District of Connecticut entitled World Wrestling Entertainment, Inc. v. Robert Windham, Thomas Billington, James Ware, Oreal Perras and various John and Jane Does seeking a declaration against these former performers that their threatened claims related to alleged traumatic brain injuries and/or other tort claims are time-barred.  On September 21, 2015, the defendants filed a motion to dismiss this complaint, which the Company opposed.  The Court previously ordered a stay of discovery in all cases pending decisions on the motions to dismiss.  On January 15, 2016, the Court partially lifted the stay and permitted discovery only on three issues in the case involving Singleton and LoGrasso. Such discovery was completed by June 1, 2016. On March 21, 2016, the Court issued a memorandum of decision granting in part and denying in part the Company’s motions to dismiss the Haynes, Singleton/LoGrasso, and McCullough lawsuits.  The Court granted the Company’s motions to dismiss the Haynes and McCullough lawsuits in their entirety and granted the Company’s motion to dismiss all claims in the Singleton/LoGrasso lawsuit except for the claim of fraud by omission.  On March 22, 2016, the Court issued an order dismissing the Windham lawsuit based on the Court’s memorandum of decision on the motions to dismiss. On April 4, 2016, the Company filed a motion for reconsideration with respect to the Court’s decision not to dismiss the fraud by omission claim in the Singleton/LoGrasso lawsuit and, on April 5, 2016, the Company filed a motion for reconsideration with respect to the Court dismissal of the Windham lawsuit.  On July 21, 2016, the Court denied the Company’s motion in the Singleton/LoGrasso lawsuit and granted in part the Company’s motion in the Windham lawsuit. On April 20, 2016, the plaintiffs filed notices of appeal of the Haynes and McCullough lawsuits.  On April 27, 2016, the Company moved to dismiss the appeals for lack of appellate jurisdiction, which motions were granted and the appeals were dismissed with leave to appeal upon the resolution of all of the consolidated cases.  The Company has filed a motion for summary judgment on the sole remaining claim in the Singleton/LoGrasso lawsuit. Lastly, on July 18, 2016, a lawsuit was filed in the U.S. District Court for the District of Connecticut, entitled Joseph M. Laurinaitis, et al. vs. World Wrestling Entertainment, Inc. and Vincent K. McMahon, individually and as the trustee of certain trusts.  This lawsuit contains many of the same allegations as the other lawsuits alleging traumatic brain injuries and further alleges, among other things, that the plaintiffs were misclassified as independent contractors rather than employees denying them, among other things, rights and benefits under the Occupational Safety and Health Act (OSHA), the National Labor Relations Act (NLRA), the Family and Medical Leave Act (FMLA), federal tax law, and various state Worker’s Compensation laws. This lawsuit also alleges that the booking contracts and other agreements between the plaintiffs and the Company are unconscionable and should be declared void, entitling the plaintiffs to certain damages relating to the Company’s use of their intellectual property. The lawsuit alleges claims for violation of RICO, unjust enrichment, and an accounting against Mr. McMahon.  The Company and Mr. McMahon moved to dismiss this complaint on October 19, 2016.  On November 9, 2016, the Laurinaitis plaintiffs filed an amended complaint.  On December 23, 2016, the Company and Mr. McMahon moved to dismiss the amended complaint. The Company believes all claims and threatened claims against the Company in these various lawsuits are being prompted by the same plaintiffs’ lawyer and are without merit.  The Company intends to continue to defend itself against these lawsuits vigorously. 

On August 9, 2016, a lawsuit was filed in the U.S. District Court for the District of Connecticut entitled Marcus Bagwell, individually and on behalf of all others similarly situated v. World Wrestling Entertainment, Inc.  The lawsuit alleges claims for breach of contract, breach of fiduciary duty, unjust enrichment and violations of the Connecticut Unfair Trade Practices Act, C.G.S. §42-110a,

24

WORLD WRESTLING ENTERTAINMENT, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(In thousands, except share data)

(Unaudited)

et seq., principally arising from WWE’s alleged failure to pay royalties for streaming video on WWE Network. On September 7, 2016, a motion for leave to amend was filed along with a proposed amended complaint that, among other things, sought to add Scott Levy as an individual plaintiff and WCW, Inc. as a defendant.  On November 4, 2016, the Court granted plaintiffs’ motion for leave to amend and plaintiffs filed their amended complaint on November 7, 2016. On December 2, 2016, the Company moved to dismiss the amended complaint. On May 5, 2017, the Court granted in part and denied in part the Company’s motion to dismiss. The Court dismissed plaintiff’s declaratory judgment, unjust enrichment and successor liability claims, as well as all claims asserted against WCW, Inc. The Court also granted plaintiffs leave to file a second amended complaint, which plaintiffs filed on May 19, 2017. Plaintiffs then sought leave to file a third amended complain to correct certain errors by plaintiffs’ counsel, which the Court granted and plaintiffs filed their third amended complaint on June 15, 2017. The third amended complaint continues to assert claims for breach of contract, breach of fiduciary duty, and violations of the Connecticut Unfair Trade Practices Act, C.G.S.§42-110a, et seq. against WWE. The Company believes all claims against the Company in this lawsuit are without merit and intends to continue to defend itself vigorously.

In addition to the foregoing, from time to time we become a party to other lawsuits and claims. By its nature, the outcome of litigation is not known, but the Company does not currently expect this ordinary course litigation to have a material adverse effect on our financial condition, results of operations or liquidity.

25

Item 2.  Management’s Discussion and Analysis of Financial Condition and Results of Operations

You should read the following discussion in conjunction with the consolidated financial statements and related notes included elsewhere in this report.

Our operations are organized around the following four principal activities:

Media Division:

Network

· Revenues consist principally of subscriptions to WWE Network, fees for viewing our pay-per-view programming, and advertising fees.

Television

· Revenues consist principally of television rights fees and advertising.

Home Entertainment

· Revenues consist principally of sales of WWE produced content via home entertainment platforms, including DVD, Blu-Ray, and subscription and transactional on-demand outlets.

Digital Media

· Revenues consist principally of advertising sales on our websites and third party websites including YouTube, and sales of various broadband and mobile content.

Live Events:

· Revenues consist principally of ticket sales and travel packages for live events.

Consumer Products Division:

Licensing

· Revenues consist principally of royalties or license fees related to various WWE themed products such as video games, toys and apparel.

Venue Merchandise

· Revenues consist of sales of merchandise at our live events.

WWEShop

· Revenues consist of sales of merchandise on our websites, including through our WWEShop Internet storefront and on distribution platforms, including Amazon.

WWE Studios:

· Revenues consist of amounts earned from investing in, producing, and/or distributing filmed entertainment.

Corporate & Other:

· Revenues consist of amounts earned from talent appearances.  Expenses are presented into two categories comprised of Corporate Support and Business Support. Corporate Support expenses primarily include our corporate general and administrative functions. Business Support expenses include our sales and marketing functions, include our international offices, and talent development function, including the costs associated with our WWE Performance Center, as well as business strategy and data analytics support.

26

Results of Operations

The Company presents OIBDA as the primary measure of segment profit (loss). As a means to summarize the OIBDA measure, we also present total consolidated OIBDA, divisional OIBDA for certain groupings of our segments (discussed further below) and OIBDA as a percentage of revenues. The Company defines OIBDA as operating income before depreciation and amortization (excluding feature film and television production asset amortization and impairments, as well as the amortization of costs related to content delivery and technology assets utilized for our WWE Network). The Company believes the presentation of OIBDA is relevant and useful for investors because it allows investors to view our segment performance in the same manner as the primary method used by management to evaluate segment performance and make decisions about allocating resources.  Additionally, we believe that OIBDA provides a meaningful representation of operating cash flows within our segments.

OIBDA is a non-GAAP financial measure and may be different than similarly-titled non-GAAP financial measures used by other companies. A limitation of OIBDA is that it excludes depreciation and amortization, which represents the periodic charge for certain fixed assets and intangible assets used in generating revenues for our business. OIBDA should not be regarded as an alternative to operating income or net income as an indicator of operating performance, or to the statement of cash flows as a measure of liquidity, nor should it be considered in isolation or as a substitute for financial measures prepared in accordance with GAAP.  We believe that operating income is the most directly comparable GAAP financial measure to OIBDA. See Note 3, Segment Information, in the accompanying consolidated financial statements for a reconciliation of OIBDA to operating income for the periods presented.

We record certain costs within our Corporate and Other segment since the costs benefit the Company as a whole and are not directly attributable to our other reportable segments. These costs are presented into two categories, Corporate Support and Business Support.  Corporate Support expenses primarily include our corporate general and administrative functions.  Business Support expenses include our sales and marketing functions, our international offices, talent development costs, including costs associated with our WWE Performance Center, and our business strategy and data analytics functions. Revenues from transactions between our operating segments are not material.

While the reporting of our financial results is done at a segment level, we provide divisional sub-totals for revenues and OIBDA for our Media and Consumer Products Divisions. The Media Division is comprised of our Network, Television, Home Entertainment and Digital Media segments and represents the monetization of WWE content assets across various distribution channels. The Consumer Products Division is comprised of our Licensing, Venue Merchandise and WWEShop segments, which derive their revenues from the monetization of our intellectual property through royalties, license fees and the sale of WWE branded merchandise. We believe the divisional construct is relevant as we continually evaluate the best manner to exploit our content and intellectual property through various channels in a rapidly changing media landscape.

27

Three MonthsEnded June 30, 2017 compared to Three MonthsEnded June 30, 2016

(dollars in millions)

Summary

The following tables present our consolidated results followed by our OIBDA results:

	Three Months Ended
	June 30,				Increase
	2017		2016		(decrease)
Net revenues
Media Division:
Network	$	54.9	$	51.8	6	%
Television		66.2		56.1	18	%
Home Entertainment		3.0		3.1	(3)	%
Digital Media		8.1		6.5	25	%
Total Media Division		132.2		117.5	13	%
Live Events		52.8		51.9	2	%
Consumer Products Division:
Licensing		9.4		9.0	4	%
Venue Merchandise		6.8		8.7	(22)	%
WWEShop		8.4		7.5	12	%
Total Consumer Products Division		24.6		25.2	(2)	%
WWE Studios		3.5		3.2	9	%
Corporate & Other		1.5		1.2	25	%
Total net revenues (1)		214.6		199.0	8	%
Cost of revenues
Media Division:
Network		47.6		53.6	(11)	%
Television		34.2		27.7	23	%
Home Entertainment		1.6		1.7	(6)	%
Digital Media		2.9		2.8	4	%
Total Media Division		86.3		85.8	1	%
Live Events		30.5		27.7	10	%
Consumer Products Division:
Licensing		2.6		2.6	—	%
Venue Merchandise		3.8		4.7	(19)	%
WWEShop		5.7		5.2	10	%
Total Consumer Products Division		12.1		12.5	(3)	%
WWE Studios		3.3		1.8	83	%
Corporate & Other		4.2		4.2	—	%
Total cost of revenues (2)		136.4		132.0	3	%
Selling, general and administrative expenses
Corporate & Other (3)		47.5		45.1	5	%
All other segments		13.7		14.4	(5)	%
Total selling, general and administrative expenses		61.2		59.5	3	%
Depreciation and amortization		6.3		6.0	5	%
Operating income		10.7		1.5	613	%
Interest expense (4)		3.7		0.6	517	%
Investment and other income, net		0.8		—	100	%
Income before income taxes		7.8		0.9	767	%
Provision for income taxes		2.7		0.1	2,600	%
Net income	$	5.1	$	0.8	538	%

28

(1) Our consolidated net revenues increased by $15.6 million, or 8%, in the current year quarter as compared to the prior year quarter. This increase was primarily driven by $5.2 million in incremental revenues associated with the contractual escalation of our distribution agreements and $3.2million of increased subscription revenues related to the growth of our WWE Network and $2.8 million due to the impact of our licensed reality based television series.  For further analysis, refer to Management’s Discussion and Analysis of our business segments.

(2) Our consolidated cost of revenues increased by $4.4 million, or 3%, in the current year quarter as compared to the prior year quarter. The $2.8 million increase in cost of revenues in the Live Events segment was driven by an increased number of events.  In the current year quarter, we incurred $2.6 million of additional production related costs in our Television segment due to theimpact of our licensed reality based television series.  We also recorded $1.1 million in film impairment charges due to revised ultimate profit expectations for several of our feature films. These increases were offset by a $6.4 million reduction in programming costs in our Network segment. For further analysis, refer to Management’s Discussion and Analysis of our business segments.

(3) Refer to the Corporate & Other section within MD&A for a detailed analysis of the changes.

(4) Interest expense increased by $3.1 million in the current year quarter as compared to the prior year quarter, as the convertible notes and assumed mortgage were entered into during the second half of 2016.

	Three Months Ended
	June 30,				Increase
	2017		2016		(decrease)
OIBDA
Media Division:
Network	$	3.0	$	(5.7)	153	%
Television		31.8		27.2	17	%
Home Entertainment		0.9		1.0	(10)	%
Digital Media		1.5		0.2	650	%
Total Media Division		37.2		22.7	64	%
Live Events		21.6		23.4	(8)	%
Consumer Products Division:
Licensing		4.5		3.9	15	%
Venue Merchandise		2.5		3.7	(32)	%
WWEShop		2.1		1.6	31	%
Total Consumer Products Division		9.1		9.2	(1)	%
WWE Studios		(0.7)		0.4	(275)	%
Corporate & Other		(50.2)		(48.2)	4	%
Total OIBDA	$	17.0	$	7.5	127	%

	Three Months Ended
	June 30,
	2017				2016
Reconciliation of Operating Income to OIBDA			% of Rev				% of Rev
Media Division:
Operating income	$	34.3	16	%	$	19.9	10	%
Depreciation and amortization		2.9	1	%		2.8	1	%
Media Division OIBDA	$	37.2	17	%	$	22.7	11	%
Consumer Products Division:
Operating income	$	9.1	4	%	$	9.2	5	%
Depreciation and amortization		—	—	%		—	—	%
Consumer Products Division OIBDA	$	9.1	4	%	$	9.2	5	%
Consolidated:
Operating income	$	10.7	5	%	$	1.5	1	%
Depreciation and amortization		6.3	3	%		6.0	3	%
Total OIBDA	$	17.0	8	%	$	7.5	4	%

29

Media Division

The following tables present the performance results and key drivers for our segments within our Media division (dollars in millions, except where noted):

	Three Months Ended
	June 30,				Increase
	2017		2016		(decrease)
Revenues-Media Division
Network	$	54.9	$	51.8	6	%
Subscriptions	$	49.1	$	45.9	7	%
Pay-per-view	$	5.8	$	5.9	(2)	%
Monthly subscription price (dollars) (1)	$	9.99	$	9.99	—	%
Number of paid subscribers at period end		1,567,900		1,510,600	4	%
Domestic		1,157,800		1,129,900	2	%
International(2)		410,100		380,700	8	%
Number of average paid subscribers		1,634,400		1,517,400	8	%
Television	$	66.2	$	56.1	18	%
Home Entertainment	$	3.0	$	3.1	(3)	%
Gross units shipped		319,400		417,200	(23)	%
Digital Media	$	8.1	$	6.5	25	%
Total	$	132.2	$	117.5	13	%

(1) This is our pricing for our domestic subscribers.  In certain international territories, subscribers can access WWE Network by other means and/or subscription pricing may vary.

(2) Metrics reflect subscribers who are direct customers of WWE Network and estimated subscribers under licensed partner agreements, which have different economic terms for WWE Network.

	Three Months Ended
	June 30,								Increase
	2017				2016				(decrease)
OIBDA - Media Division			% of Rev				% of Rev
Network	$	3.0	5	%	$	(5.7)	(11)	%	153	%
Television	$	31.8	48	%	$	27.2	48	%	17	%
Home Entertainment	$	0.9	30	%	$	1.0	32	%	(10)	%
Digital Media	$	1.5	19	%	$	0.2	3	%	650	%

Network revenues, which include revenues generated by WWE Network and pay-per-view, increased by $3.1 million, or 6%, in the current year quarter as compared to the prior year quarter.  WWE Network subscription revenues increased by $3.2 million, or 7%, in the current year quarter as compared to the prior year quarter, driven primarily by the increase in paid subscribers. During the quarter ended June 30, 2017, WWE Network had an average of 1,634,400 paid subscribers, compared to an average of 1,517,400 subscribers in the prior year quarter. During the quarter, there were 598,200 gross additions to WWE Network’s subscriber base, offset by churn of 603,800 subscribers.  Gross additions include unique new subscribers and win-backs (subscribers that previously churned out and subsequently renewed their subscription).  The subscription pricing of WWE Network at June 30, 2017 is $9.99 per month with no minimum commitment. Pay-per-view revenues decreased slightly in the current year quarter as compared to the prior year quarter. This decline was primarily attributable to the continued growth and expansion of WWE Network, partially offset by one additional event. The increase in Network OIBDA as a percentage of revenues in the current year quarter as compared to the prior year quarter was due to lower programming related costs of $6.4 million driven by the timing of original content, including Camp WWE and Swerved Season 2, which premiered in the prior year quarter.

Television revenues, which include revenues generated from television rights fees and advertising, increased by  $10.1 million, or 18%, in the current year quarter as compared to the prior year quarter. This increase was the result of contractual increasesof $5.2 million associated with distribution agreements and the impact of our licensed reality based series, Total Divas.There were six new episodes of this seriesin the current year quarter as compared to three episodes in the prior year quarter, which resulted in an increase in revenues of $2.8million.Television OIBDA as a percentage of revenues was essentially unchanged in the current year quarter as compared to the prior year quarter, as increased revenues were offset by $2.6 million of additional production costs related to our licensed reality based series, and costs associated with the use of additional production elements on our weekly live episodic shows, Raw and Smackdown Live.

30

Home Entertainment revenues, which include revenues generated from the sale of WWE produced content via home entertainment platforms such as DVD and Blu-Ray discs and digital downloads, decreased slightly in the current year quarter compared to the prior year quarter. The decrease was driven primarily by a 23% decline in units shipped, mostly offset by lower DVD and Blu-Ray returns of $0.8 million and the impact of a 4% increase in the average price per unit sold.  Home Entertainment OIBDA as a percentage of revenues was essentially unchanged in the current year quarter as compared to the prior year quarter.

Digital Media revenues increased by $1.6 million, or 25%, in the current year quarter as compared to the prior year quarter, primarily due to increased advertising revenues.  The increase in Digital Media OIBDA as a percentage of revenues in the current year quarter as compared to the prior year quarter was primarily driven by the impact of the increase in revenues.

Live Events

The following tables present the performance results and key drivers for our Live Events segment (dollars in millions, except where noted):

	Three Months Ended
	June 30,				Increase
	2017		2016		(decrease)
Revenues- Live Events
Live events	$	50.1	$	49.3	2	%
North America	$	37.3	$	38.3	(3)	%
International	$	12.8	$	11.0	16	%
Total live event attendance (1)		586,300		562,200	4	%
Number of North American events (1)		66		62	6	%
Average North American attendance (1)		6,400		6,600	(3)	%
Average North American ticket price (dollars) (1)	$	77.60	$	81.66	(5)	%
Number of international events (1)		26		19	37	%
Average international attendance (1)		6,300		8,000	(21)	%
Average international ticket price (dollars) (1)	$	72.75	$	64.98	12	%
Travel packages	$	2.7	$	2.6	4	%
Total	$	52.8	$	51.9	2	%

(1) Metrics above exclude the events for our NXT brand. This is an emerging brand that typically conducts their events in smaller venues with lower ticket prices. We conducted 51 NXT events with paid attendance of 52,100 and average ticket prices of $43.54 in the current year quarter as compared to 53 events with paid attendance of 56,200 and average ticket prices of $25.26 in the prior year quarter.

	Three Months Ended
	June 30,						Increase
	2017			2016			(decrease)
OIBDA-Live Events
Live events	$	20.0		$	21.9		(9)	%
Travel packages		1.6			1.5		7	%
Total	$	21.6		$	23.4		(8)	%
OIBDA as a percentage of revenues		41	%		45	%

Live Events revenues, which include revenues from ticket sales and travel packages, increased by$0.9 million, or 2%,in the current year quarter as compared to the prior year quarter.  Revenues from our North America live events business decreased by $0.9 million, or 2%,  primarilydue to a decline of $2.2 million resulting from lowerWrestleManiaticket sales due to a reduction in stadium capacity in the current year, partially offset by increased revenues of $1.0 million due to the impact of four additional events.Revenues from our international live events business increased by $1.8 million, or 16%, primarily due to higher average ticket prices due to changes in the mix of territories, which increased revenues by $1.3 million, and $0.8 million due to holding sevenadditional events.  The decrease in Live Events OIBDA as a percentage of revenuesin the current year quarter as compared to the prior year quarter was driven by lower ticket revenue fromWrestleManiaand increased costs driven by the mix of territories in which we performed.

31

Consumer Products Division

The following tables present the performance results and key drivers for our Consumer Products division (dollars in millions, except where noted):

	Three Months Ended
	June 30,				Increase
	2017		2016		(decrease)
Revenues-Consumer Products Division
Licensing	$	9.4	$	9.0	4	%
Venue Merchandise		6.8		8.7	(22)	%
Domestic per capita spending (dollars)	$	10.34	$	13.29	(22)	%
WWEShop		8.4		7.5	12	%
Average WWEShop revenues per order (dollars)	$	45.98	$	44.40	4	%
Total	$	24.6	$	25.2	(2)	%

	Three Months Ended
	June 30,								Increase
	2017				2016				(decrease)
OIBDA - Consumer Products Division			% of Rev				% of Rev
Licensing	$	4.5	48	%	$	3.9	43	%	15	%
Venue Merchandise	$	2.5	37	%	$	3.7	43	%	(32)	%
WWEShop	$	2.1	25	%	$	1.6	21	%	31	%

Licensing revenues increased by $0.4 million, or 4%, in the current year quarter as compared to the prior year quarter, primarily driven by higher sales of the Company’s mobile video game, WWE SuperCard.The increase in Licensing OIBDA as a percentage of revenues in the current year quarter as compared to the prior year quarter was driven by lower promotional costs.

Venue Merchandise revenues decreased by $1.9 million, or 22%, in the current year quarter as compared to the prior year quarter,  primarily due to a  decline of $1.6 million resulting from a smaller WrestleMania venue in the current year.  The decrease in Venue Merchandise OIBDA as a percentage of revenues in the current year quarter as compared to the prior year quarter was driven by product mix and lower revenuesat WrestleMania.

WWEShop revenues increased by $0.9 million, or 12%, in the current year quarter compared to the prior year quarter, due to a 6% increase in the volume of online merchandise orders to 178,400 orders. Orders increased primarily due to the impact of additional distribution channels,  including in international territories, continued marketing efforts and a broader assortment of products offered.  Also contributing to this increase in revenues was a 4%increase in the average revenue per order to $45.98 in the current year quarter. The increase in WWEShop OIBDA as a percentage of revenues in the current year quarter as compared tothe prior year quarter was due to leveraging our fixed costs and changes in product mix.

WWE Studios

WWE Studios revenues increased by $0.3 million, or 9%, in the current year quarter as compared to the prior year quarter.The change in film revenue is reflective of both the timing of our film releases and the performance of released films.We releasedtwofilms,  The Marine 5: Battleground and Sleight in the current year quarter as compared to one feature film in the prior year quarter. As we typically participate in a film’s results subsequent to our distributor’s recoupment of costs, there is a lag between a film’s release and its impact on revenue. WWE Studios OIBDA decreased by $1.1 million in the current year quarter as compared to the prior year quarter, primarily driven by the impairment charges recorded during the current year, as discussed below.

At June 30, 2017, the Company had $29.1 million (net of accumulated amortization and impairment charges) of Feature Film Production Assets capitalized on its Consolidated Balance Sheet, of which $17.7 million is for films in-release, $6.7 million is for films in production, and the remaining $4.7 million is for films that are completed, pending release, or developmental projects. We review and revise estimates of ultimate revenue and participation costs at the end of each reporting quarter to reflect the most current information available. If estimates for a film’s ultimate revenue and/or costs are revised and indicate a significant decline in a film’s profitability, or if events or circumstances change that would indicate we should assess whether the fair value of a film is less than its unamortized film costs, we calculate the film's estimated fair value using a discounted cash flows model. If fair value is less than unamortized cost, the film asset is written down to fair value.  We recorded impairment charges of $1.1 million during the three months ended June 30, 2017.  We did not record any impairment charges related to our feature films in the prior year quarter.

32

Corporate and Other

We record certain costs within our Corporate and Other segment since the costs benefit the Company as a whole and are not directly attributable to our other reportable segments.  These costs are categorized and presented into two categories, Corporate Support and Business Support.  Corporate Support expenses primarily include our corporate general and administrative functions.  Business Support expenses include our sales and marketing functions, our international sales offices, talent development costs, including costs associated with our WWE Performance Center, and our business strategy and data analytics functions.  These costs benefit the Company as a whole and are therefore not allocated to individual businesses. The presentation of Corporate and Other expenses in these two categories provides further details on the primary composition of our Selling, general and administrative expenses as presented in our Consolidated Statements of Operations as the majority of Selling, general and administrative expenses are comprised of expenses from our Corporate and Other segment. 

The following table presents the financial results for our Corporate and Other segment (dollars in millions):

	For the three months ended June 30,
	2017									2016
	Corporate Support			Business Support			Total Corporate & Other			Corporate Support			Business Support			Total Corporate & Other			Increase (Decrease)
Corporate & Other revenue	$	—		$	1.5		$	1.5		$	—		$	1.2		$	1.2		25	%
Corporate & Other expenses:
Staff related	$	6.8		$	10.3		$	17.1		$	6.9		$	8.9		$	15.8		8	%
Management incentive compensation		3.0			4.4			7.4			3.6			4.2			7.8		(5)	%
Legal, accounting and other professional		4.7			2.6			7.3			5.1			2.0			7.1		3	%
Travel and entertainment expenses		(0.2)			2.0			1.8			(0.2)			1.5			1.3		38	%
Advertising, marketing and promotion		0.5			2.5			3.0			0.4			2.6			3.0		—	%
Corporate insurance		0.7			0.4			1.1			0.7			0.2			0.9		22	%
Bad debt expense		0.1			—			0.1			(0.1)			—			(0.1)		200	%
Talent related expenses (1)		—			6.1			6.1			—			5.6			5.6		9	%
Other expenses		4.5			3.3			7.8			4.7			3.3			8.0		(2)	%
Corporate & Other expenses	$	20.1		$	31.6		$	51.7		$	21.1		$	28.3		$	49.4		5	%
Corporate & Other as a percentage of net revenues		9	%		15	%		24	%		11	%		14	%		25	%
OIBDA - Corporate & Other	$	(20.1)		$	(30.1)		$	(50.2)		$	(21.1)		$	(27.1)		$	(48.2)		4	%

(1) Talent related expenses within Business Support include costs associated with our WWE Performance Center, talent appearances and certain talent support costs. Talent costs associated with specific revenue streams are excluded from the above amounts and included within applicable business segments.

Corporate and Other expenses increased by $2.3million, or 5%, in the current year quarter as compared to the prior year quarter. This increase is primarily due to higher staff related costs of $1.3 million due to increased headcount and talent related costs of $0.5 million in support of talent development.

Depreciation and Amortization

(dollars in millions)

	Three Months Ended
	June 30,				Increase
	2017		2016		(decrease)
Depreciation and amortization	$	6.3	$	6.0	5	%

Depreciation and amortization expense increased by$0.3 million, or 5%,in the current year quarter as compared to the prior year quarter, primarily driven by prior year capital expenditures.

33

Interest Expense

(dollars in millions)

	Three Months Ended
	June 30,				Increase
	2017		2016		(decrease)
Interest expense	$	3.7	$	0.6	517	%

Interest expense, which relates primarily to interest and amortization associated with our convertible notes, our debt facilities, assumed mortgage and aircraft financing, increased by $3.1 million in the current year quarter as compared to the prior year quarter, as the convertible notes and assumed mortgage were entered into during the second half of 2016. 

Investment and Other Income (Expense), Net

(dollars in millions)

	Three Months Ended
	June 30,				Increase
	2017		2016		(decrease)
Investment income, net	$	0.8	$	0.6	33	%
Other income (expense), net	$	—	$	(0.6)	100	%

Investment income, net during the three months ended June 30, 2017 and 2016includes $0.2 million and $0.4 million, respectively, of equity method earnings, representing our pro-rata portion from an equity method investment.  Investment income, net also includes income of $0.6 millionand $0.2 millionfrom our short term investment instruments during the three months ended June 30, 2017 and 2016,  respectively. Other income (expense), net is primarily comprised of rental income, offset by state excise taxes and realized foreign currency translation losses.

Income Taxes

(dollars in millions)

	Three Months Ended
	June 30,						Increase
	2017			2016			(decrease)
Provision for income taxes	$	2.7		$	0.1		2,600	%
Effective tax rate		35	%		16	%

The effective tax rate was 35% in the current year quarter as compared to 16% in the prior year quarter.

34

Six MonthsEnded June 30, 2017 compared to Six MonthsEnded June 30, 2016

(dollars in millions)

Summary

The following tables present our consolidated results followed by our OIBDA results:

	Six Months Ended
	June 30,				Increase
	2017		2016		(decrease)
Net revenues
Media Division:
Network	$	101.4	$	92.1	10	%
Television		130.2		116.8	11	%
Home Entertainment		5.4		6.4	(16)	%
Digital Media		13.8		11.9	16	%
Total Media Division		250.8		227.2	10	%
Live Events		84.9		77.2	10	%
Consumer Products Division:
Licensing		29.5		30.0	(2)	%
Venue Merchandise		13.9		14.2	(2)	%
WWEShop		16.3		14.3	14	%
Total Consumer Products Division		59.7		58.5	2	%
WWE Studios		4.8		5.2	(8)	%
Corporate & Other		2.8		2.0	40	%
Total net revenues (1)		403.0		370.1	9	%
Cost of revenues
Media Division:
Network		75.9		75.5	1	%
Television		66.7		59.6	12	%
Home Entertainment		2.8		3.1	(10)	%
Digital Media		5.6		5.3	6	%
Total Media Division		151.0		143.5	5	%
Live Events		53.4		46.0	16	%
Consumer Products Division:
Licensing		7.3		7.8	(6)	%
Venue Merchandise		7.9		7.7	3	%
WWEShop		11.0		10.1	9	%
Total Consumer Products Division		26.2		25.6	2	%
WWE Studios		6.0		2.9	107	%
Corporate & Other		8.9		7.4	20	%
Total cost of revenues (2)		245.5		225.4	9	%
Selling, general and administrative expenses
Corporate & Other (3)		101.7		84.1	21	%
All other segments		27.9		25.5	9	%
Total selling, general and administrative expenses		129.6		109.6	18	%
Depreciation and amortization		13.2		11.6	14	%
Operating income		14.7		23.5	(37)	%
Interest expense (4)		7.2		1.2	500	%
Investment and other income, net		1.7		—	100	%
Income before income taxes		9.2		22.3	(59)	%
Provision for income taxes		3.2		7.6	(58)	%
Net income	$	6.0	$	14.7	(59)	%

35

(1) Our consolidated net revenues increased by $32.9 million, or 9%, in the current year period as compared to the prior year period. This increase was primarily driven by $10.3 million in incremental revenues associated with the contractual escalation of our distribution agreements, $8.7 million of increased subscription revenues related to the growth of our WWE Network and the impact of 28 additional events, which contributed $7.7 million toour live events revenues. For further analysis, refer to Management’s Discussion and Analysis of our business segments.

(2) Our consolidated cost of revenues increased by $20.1 million, or 9%, in the current year period as compared to the prior year period. The $7.4 million increase in cost of revenues in the Live Events segment was driven by an increased number of events.  In the current year period, we incurred an additional  $7.0 million of costs in our Television segment, primarily associated with the use of additional production elements on our weekly live episodic shows. We also recorded $3.2 million in film impairment charges due to revised ultimate profit expectations for several of our feature films. For further analysis, refer to Management’s Discussion and Analysis of our business segments.

(3) Refer to the Corporate & Other section within MD&A for a detailed analysis of the changes.

(4) Interest expense increased by $6.0 million in the current year period as compared to the prior year period,  as the convertible notes and assumed mortgage were entered into during the second half of 2016.

	Six Months Ended
	June 30,				Increase
	2017		2016		(decrease)
OIBDA
Media Division:
Network	$	17.3	$	10.1	71	%
Television		62.6		55.5	13	%
Home Entertainment		1.7		2.5	(32)	%
Digital Media		1.0		0.1	900	%
Total Media Division		82.6		68.2	21	%
Live Events		29.7		29.5	1	%
Consumer Products Division:
Licensing		17.9		18.2	(2)	%
Venue Merchandise		5.1		5.7	(11)	%
WWEShop		4.0		3.0	33	%
Total Consumer Products Division		27.0		26.9	0	%
WWE Studios		(3.6)		—	(100)	%
Corporate & Other		(107.8)		(89.5)	20	%
Total OIBDA	$	27.9	$	35.1	(21)	%

	Six Months Ended
	June 30,
	2017				2016
Reconciliation of Operating Income to OIBDA			% of Rev				% of Rev
Media Division:
Operating income	$	76.6	19	%	$	62.8	17	%
Depreciation and amortization		6.0	1	%		5.4	1	%
Media Division OIBDA	$	82.6	20	%	$	68.2	18	%
Consumer Products Division:
Operating income	$	27.0	7	%	$	26.9	7	%
Depreciation and amortization		—	—	%		—	—	%
Consumer Products Division OIBDA	$	27.0	7	%	$	26.9	7	%
Consolidated:
Operating income	$	14.7	4	%	$	23.5	6	%
Depreciation and amortization		13.2	3	%		11.6	3	%
Total OIBDA	$	27.9	7	%	$	35.1	9	%

36

Media Division

The following tables present the performance results and key drivers for our segments within our Media division (dollars in millions, except where noted):

	Six Months Ended
	June 30,				Increase
	2017		2016		(decrease)
Revenues-Media Division
Network	$	101.4	$	92.1	10	%
Subscriptions	$	92.8	$	84.1	10	%
Pay-per-view	$	8.6	$	8.0	8	%
Monthly subscription price (dollars) (1)	$	9.99	$	9.99	—	%
Number of paid subscribers at period end		1,567,900		1,510,600	4	%
Domestic		1,157,800		1,129,900	2	%
International (2)		410,100		380,700	8	%
Number of average paid subscribers		1,562,700		1,403,400	11	%
Television	$	130.2	$	116.8	11	%
Home Entertainment	$	5.4	$	6.4	(16)	%
Gross units shipped		818,000		746,600	10	%
Digital Media	$	13.8	$	11.9	16	%
Total	$	250.8	$	227.2	10	%

(1) This is our pricing for our domestic subscribers.  In certain international territories, subscribers can access WWE Network by other means and/or subscription pricing may vary.

(2) Metrics reflect subscribers who are direct customers of WWE Network and estimated subscribers under licensed partner agreements, which have different economic terms for WWE Network.

	Six Months Ended
	June 30,								Increase
	2017				2016				(decrease)
OIBDA - Media Division			% of Rev				% of Rev
Network	$	17.3	17	%	$	10.1	11	%	71	%
Television	$	62.6	48	%	$	55.5	48	%	13	%
Home Entertainment	$	1.7	31	%	$	2.5	39	%	(32)	%
Digital Media	$	1.0	7	%	$	0.1	1	%	900	%

Network revenues, which include revenues generated by WWE Network and pay-per-view, increased by $9.3 million, or 10%, in the current year period as compared to the prior year period. WWE Network subscription revenues increased by $8.7 million, or 10%, in the current year period as compared to the prior year period, driven primarily by the increase in paid subscribers. During the six months ended June 30, 2017, WWE Network had an average of 1,562,700 paid subscribers, compared to an average of 1,403,400 subscribers in the prior year period. During the period, there were approximately 1,135,100 gross additions to WWE Network’s subscriber base, offset by churn of 970,200 subscribers.  Gross additions include unique new subscribers and win-backs (subscribers that previously churned out and subsequently renewed their subscription).  The subscription pricing of WWE Network at June 30, 2017 is $9.99 per month with no minimum commitment. Pay-per-view revenues increased by $0.6 million, or 8%, in the current year period as compared to the prior year period, primarily driven by two additionalevents.  The increase in Network OIBDA as a percentage of revenues in the current year period as compared to the prior year period was due to lower programming related costs of $2.0 million driven by the timing of original content, including Swerved Season 2 and Camp WWE, which premiered in the prior year period.

Television revenues, which include revenues generated from television rights fees and advertising, increased by $13.4 million, or 11%, in the current year period as compared to the prior year period. This increase was the result of contractual increases of $10.3 million associated with distribution agreements and $2.2 million from streaming content on certain platforms. These increaseswere partially offset by the impact of our licensed reality based series, Total Divas.There were ten new episodes of this seriesin the current year period as compared to 14 episodes in the prior year period, which resulted in a decrease in revenues of $1.7 million. Television OIBDA as a percentage of revenues was essentially unchanged in the current year period as compared to the prior year period,  as we incurred additional costs primarily associated with the use of additional production elements on our weekly live episodic shows, Raw and Smackdown Live.

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Home Entertainment revenues, which include revenues generated from the sale of WWE produced content via home entertainment platforms such as DVD and Blu-Ray discs and digital downloads, decreased by $1.0 million, or 16%, in the current year period compared to the prior year period. The decrease was driven primarily bythe impact of a 17% decline in the average price per unit sold. The decrease in Home Entertainment OIBDA as a percentage of revenues in the current year period as compared to the prior year period was primarily driven by decreased international sales, which have a higher margin than the domestic products.

Digital Media revenues increased by $1.9 million, or 16%, in the current year period as compared to the prior year period, primarily due to increased advertising revenues. The increase in Digital Media OIBDA as a percentage of revenues in the current year period as compared to the prior year period was primarily driven by increased revenues.

Live Events

The following tables present the performance results and key drivers for our Live Events segment (dollars in millions, except where noted):

	Six Months Ended
	June 30,				Increase
	2017		2016		(decrease)
Revenues- Live Events
Live events	$	82.0	$	74.6	10	%
North America	$	67.7	$	61.1	11	%
International	$	14.3	$	13.5	6	%
Total live event attendance (1)		1,146,000		1,044,900	10	%
Number of North American events (1)		157		134	17	%
Average North American attendance (1)		6,100		6,300	(3)	%
Average North American ticket price (dollars) (1)	$	62.71	$	64.19	(2)	%
Number of international events (1)		30		25	20	%
Average international attendance (1)		6,000		8,000	(25)	%
Average international ticket price (dollars) (1)	$	73.98	$	60.35	23	%
Travel packages	$	2.9	$	2.6	12	%
Total	$	84.9	$	77.2	10	%

(1) Metrics above exclude the events for our NXT brand. This is an emerging brand that typically conducts their events in smaller venues with lower ticket prices. We conducted 95 NXT events with paid attendance of 86,400 and average ticket prices of $40.03 in the current year period as compared to 100 events with paid attendance of 91,200and average ticket prices of $29.00 in the prior year period.

	Six Months Ended
	June 30,						Increase
	2017			2016			(decrease)
OIBDA-Live Events
Live events	$	28.0		$	28.0		—	%
Travel packages		1.7			1.5		13	%
Total	$	29.7		$	29.5		1	%
OIBDA as a percentage of revenues		35	%		38	%

Live Events revenues, which include revenues from ticket sales and travel packages, increased by $7.7 million, or 10%, in the current year period as compared to the prior year period. Revenues from our North America live events business increased by $6.6 million, or 11%, primarily due to increases of $7.7 million resulting from 23 additional events, partially offset by a decline of $1.6 million resulting from a smaller WrestleMania venue in the current year. Revenues from our international live events business increased by $0.8 million, or 6%, primarily due to $2.5 million of increased revenues due to higher average ticket prices and holding fiveadditional events, partially offset by lower average attendance, which decreased revenues by $1.1 million. The decrease in Live Events OIBDA as a percentage of revenues in the current year period as compared to the prior year period was driven by lower ticket revenue from WrestleMania and increased costs driven by the mix of territories in which we performed.

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Consumer Products Division

The following tables present the performance results and key drivers for our Consumer Products division (dollars in millions, except where noted):

	Six Months Ended
	June 30,				Increase
	2017		2016		(decrease)
Revenues-Consumer Products Division
Licensing	$	29.5	$	30.0	(2)	%
Venue Merchandise		13.9		14.2	(2)	%
Domestic per capita spending (dollars)	$	10.20	$	11.68	(13)	%
WWEShop		16.3		14.3	14	%
Average WWEShop revenues per order (dollars)	$	45.73	$	44.00	4	%
Total	$	59.7	$	58.5	2	%

	Six Months Ended
	June 30,								Increase
	2017				2016				(decrease)
OIBDA - Consumer Products Division			% of Rev				% of Rev
Licensing	$	17.9	61	%	$	18.2	61	%	(2)	%
Venue Merchandise	$	5.1	37	%	$	5.7	40	%	(11)	%
WWEShop	$	4.0	25	%	$	3.0	21	%	33	%

Licensing revenues decreased by $0.5 million, or 2%, in the current year period as compared to the prior year period, primarily driven by lower pricing of our franchise video game in international markets. Licensing OIBDA as a percentage of revenues was essentially unchanged in the current year period as compared to the prior year period.

Venue Merchandise revenues decreased by $0.3 million, or 2%, in the current year period as compared to the prior year period,  primarily due to a decline of $0.9 million resulting from a smaller WrestleMania venue in the current year.  The decrease in Venue Merchandise OIBDA as a percentage of revenues in the current year period as compared to the prior year period wasdriven by product mix and lower revenues at WrestleMania.

WWEShop revenues increased by $2.0 million, or 14%, in the current year period compared to the prior year period, due to an 8% increase in the volume of online merchandise orders to 351,200 orders. Orders increased primarily due to the impact of additional distribution channels, including in international territories, continued marketing efforts and a broader assortment of products offered. Also contributing to this increase in revenues was a 4% increase in the average revenue per order to $45.73 in the current year period. The increase in WWEShop OIBDA as a percentage of revenues in the current year period as compared to the prior year period was due to leveraging our fixed costs and changes in product mix.

WWE Studios

WWE Studios revenues decreased by $0.4 million, or 8%, in the current year period as compared to the prior year period.  The change in film revenue is reflective of both the timing of our film releases and the performance of released films. We released five films, Surf’s Up 2: WaveMania,  The Resurrection of Gavin Stone,  The Jetsons & WWE: Robo-WrestleMania!,  The Marine 5: Battleground and Sleightin the current year period as compared to one feature film in the prior year period. As we typically participate in a film’s results subsequent to our distributor’s recoupment of costs, there is a lag between a film’s release and its impact on revenue. WWE WWE Studios OIBDA decreased by $3.6 million in the current year period as compared to the prior year period, primarily driven by the impairment charges recorded during the current year, as discussed below.

At June 30, 2017, the Company had $29.1 million (net of accumulated amortization and impairment charges) of Feature Film Production Assets capitalized on its Consolidated Balance Sheet, of which $17.7 million is for films in-release, $6.7 million is for films in production, and the remaining $4.7 million is for films that are completed, pending release, or developmental projects. We review and revise estimates of ultimate revenue and participation costs at the end of each reporting quarter to reflect the most current information available. If estimates for a film’s ultimate revenue and/or costs are revised and indicate a significant decline in a film’s profitability, or if events or circumstances change that would indicate we should assess whether the fair value of a film is less than its unamortized film costs, we calculate the film's estimated fair value using a discounted cash flows model. If fair value is less than unamortized cost, the film asset is written down to fair value.  We recorded impairment charges of $3.2 million during the six months ended June 30, 2017. We did not record any impairment charges related to our feature films in the prior year period.

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Corporate and Other

We record certain costs within our Corporate and Other segment since the costs benefit the Company as a whole and are not directly attributable to our other reportable segments. These costs are categorized and presented into two categories, Corporate Support and Business Support.  Corporate Support expenses primarily include our corporate general and administrative functions.  Business Support expenses include our sales and marketing functions, our international sales offices, talent development costs, including costs associated with our WWE Performance Center, and our business strategy and data analytics functions. These costs benefit the Company as a whole and are therefore not allocated to individual businesses. The presentation of Corporate and Other expenses in these two categories provides further details on the primary composition of our Selling, general and administrative expenses as presented in our Consolidated Statements of Operations as the majority of Selling, general and administrative expenses are comprised of expenses from our Corporate and Other segment. 

The following table presents the financial results for our Corporate and Other segment (dollars in millions):

	For the six months ended June 30,
	2017									2016
	Corporate Support			Business Support			Total Corporate & Other			Corporate Support			Business Support			Total Corporate & Other			Increase (Decrease)
Corporate & Other revenue	$	—		$	2.8		$	2.8		$	—		$	2.0		$	2.0		40	%
Corporate & Other expenses:
Staff related	$	15.6		$	20.4		$	36.0		$	13.1		$	17.8		$	30.9		17	%
Management incentive compensation		5.8			8.5			14.3			5.6			6.8			12.4		15	%
Legal, accounting and other professional		14.4			6.1			20.5			9.4			4.6			14.0		46	%
Travel and entertainment expenses		0.1			3.6			3.7			0.1			2.8			2.9		28	%
Advertising, marketing and promotion		0.5			4.4			4.9			0.4			4.3			4.7		4	%
Corporate insurance		1.4			0.9			2.3			1.4			0.4			1.8		28	%
Bad debt expense		0.3			—			0.3			(0.2)			—			(0.2)		250	%
Talent related expenses (1)		—			12.6			12.6			—			10.0			10.0		26	%
Other expenses		10.0			6.0			16.0			8.8			6.2			15.0		7	%
Corporate & Other expenses	$	48.1		$	62.5		$	110.6		$	38.6		$	52.9		$	91.5		21	%
Corporate & Other as a percentage of net revenues		12	%		16	%		27	%		10	%		14	%		25	%
OIBDA - Corporate & Other	$	(48.1)		$	(59.7)		$	(107.8)		$	(38.6)		$	(50.9)		$	(89.5)		20	%

(1) Talent related expenses within Business Support include costs associated with our WWE Performance Center, talent appearances and certain talent support costs. Talent costs associated with specific revenue streams are excluded from the above amounts and included within applicable business segments.

Corporate and Other expenses increased by $19.1 million, or 21%, in the current year period as compared to the prior year period. This increase is primarily due to $5.6 million of expenses related to non-recurring legal matters and other contractual obligations,  higher staff related costs of $5.1 million due to increased headcount, talent related costs of $2.6 million in support of talent development, andincreased  management incentive compensation costs of $1.9 million, driven by higher stock compensation costs of $2.3 milliondue to a rise in the Company’s stock price.

Depreciation and Amortization

(dollars in millions)

	Six Months Ended
	June 30,				Increase
	2017		2016		(decrease)
Depreciation and amortization	$	13.2	$	11.6	14	%

Depreciation and amortization expense increased by $1.6 million, or 14%, in the current year period as compared to the prior year period, primarily driven by prior year capital expenditures.

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Interest Expense

(dollars in millions)

	Six Months Ended
	June 30,				Increase
	2017		2016		(decrease)
Interest expense	$	7.2	$	1.2	500	%

Interest expense, which relates primarily to interest and amortization associated with our convertible notes, our debt facilities, assumed mortgage and aircraft financing, increased by $6.0 million in the current year period as compared to the prior year period, as the convertible notes and assumed mortgage were entered into during the second half of 2016. 

Investment and Other Income (Expense), Net

(dollars in millions)

	Six Months Ended
	June 30,				Increase
	2017		2016		(decrease)
Investment income, net	$	1.7	$	1.2	42	%
Other income (expense), net	$	—	$	(1.2)	100	%

Investment income, net during the six months ended June 30, 2017 and 2016 includes $0.6 million and $0.8 million, respectively, of equity method earnings, representing our pro-rata portion from an equity method investment. Investment income, net also includes income of $1.0 million and $0.4 million from our short term investment instruments during the six months ended June 30, 2017 and 2016, respectively. Other income (expense), net  is primarily comprised of rental income, offset by state excise taxes and realized foreign currency translation losses.

Income Taxes

(dollars in millions)

	Six Months Ended
	June 30,						Increase
	2017			2016			(decrease)
Provision for income taxes	$	3.2		$	7.6		(58)	%
Effective tax rate		35	%		34	%

The effective tax rate was 35% in the current year period as compared to 34% in the prior year period.

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Liquidity and Capital Resources

We had cash and cash equivalents and short-term investments of $262.3 million and $267.1 million as of June 30, 2017 and December 31, 2016, respectively. Our short-term investments consist primarily of corporate bonds, U.S. Treasury securities, municipal bonds, including pre-refunded municipal bonds, and government agency bonds.  Our debt balance totaled $215.9 million and $202.7 million as of June 30, 2017 and December 31, 2016, respectively, and includes the carrying value of $175.4 million and $161.0 million related to our $215.0 million par value 3.375% convertible senior notes due 2023 as of June 30, 2017 and December 31, 2016, respectively.  

We believe that our existing cash and cash equivalents and investment balances and cash generated from operations will be sufficient to meet our operating requirements for at least the next twelve months, inclusive of dividend payments, debt service, film and television production activities and capital expenditures.

Borrowing Capacity

In December 2016, the Company entered into an amended and restated $100.0 million senior unsecured revolving credit facility with a syndicated group of banks, with JPMorgan Chase Bank, N.A. acting as Administrative Agent (the "Revolving Credit Facility"). The Revolving Credit Facility has a maturity date of July 29, 2021. As ofJune 30, 2017, the Company was in compliance with the provisions of our Revolving Credit Facility, there were no amounts outstanding under it, and the Company had available capacity under the terms of the facility of $100.0 million. 

As of June 30, 2017, the Company was also in compliance with the provisions of the $35.0 million secured asset based revolving credit facility, as amended, entered into in May 2015 by two of the Company’s subsidiaries (the "Film Credit Facility"),  with$2.6 million outstanding and $7.3 million of available capacity under the terms of the Film Credit Facility.

Debt Summary

In December 2016, the Company issued $200.0 million aggregate principal amount of 3.375% convertible senior notes (the "Notes") due December 15, 2023, and in January 2017, we issued an additional $15.0 million in aggregate principal amount of Notes after partial exercise of an over-allotment option.  The sale of the Notes in December and January resulted in $193.9 million and $14.5 million, respectively, in net proceeds to WWE after deducting the initial purchasers’ discount and estimated offering expenses.  Proceeds from the Notes were used, in part, to pay for the cost of a convertible note hedge of $34.1 million related to the December issuance and $2.6 million related to the January issuance, which were partially offset by proceeds received from the sale of warrants of $19.5 million and $1.5 million, related to the December and January issuances, respectively. See Note 13, Convertible Debt, in the Notes to Consolidated Financial Statements for further information. We intend to use the proceeds to support the execution of our long-term growth strategy and for general corporate purposes.

In September 2016, the Company acquired land and a building located in Stamford, Connecticut adjacent to our production facility. In connection with the acquisition, we assumed future obligations under a loan agreement, in the principal amount of $23.0 million, which loan is secured by a mortgage on the property.  Pursuant to the loan agreement, since the assets of WWE Real Estate, a subsidiary of the Company, represent collateral for the underlying mortgage, these assets will not be available to satisfy debts and obligations due to any other creditors of the Company.

In 2013, the Company entered into a $31.6 million promissory note (the “Aircraft Note”) with Citizens Asset Finance, Inc., for the purchase of a 2007 Bombardier Global 5000 aircraft and refurbishments. The Aircraft Note is secured by a first priority perfected security interest in the purchased aircraft. As of June 30, 2017 and December 31, 2016, the amounts outstanding under the Aircraft Note were $14.9 million and $17.1 million, respectively.

Cash Flows from Operating Activities

Cash generated from operating activities was $13.8 million in the six months ended June 30, 2017,  as compared to $2.8million for the corresponding period in the prior year, as lower operating results were partially driven by increased non-cash items, such as stock compensation, coupled with a net working capital benefit primarily driven by timing.

In the current year period,  wespent $7.8 million on feature film production activities, as compared to $5.0 million in the prior year period.  We received incentives of $0.4 million related to feature film production in the current year period, as compared to $0.6 million received in the prior year period.  We anticipate spending between $10 million and $20 million on feature film production activities during the remainder of the current year.

In the current year period, we received  $2.2million of non-film related incentives associated with television production activities, as compared to $7.3 million received in the prior year period.  We anticipate receiving approximately $5 million to $15 million of non-film related incentives during the remainder of the year.

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In the current year period,  we spent $7.6 million to produce non-live event programming for television, includingTotal Bellas Season 2 and Total Divas Season 7, and various programs for WWE Network, includingour UK Championship Tournament,  as compared to $15.1 million in the prior year period. We anticipate spending approximately $10 million to $20 million to produce additional non-live event content during the remainder of the current year.

Our accounts receivable represent a significant portion of our current assets and relate principally to a limited number of distributors and licensees that produce consumer products containing our intellectual property. At June 30, 2017, our three largest receivable balances from customers were 19%,  17%  and 12%ofour gross accounts receivable. Changes in the financial condition or operations of our distributors, customers or licensees may result in increased delayed payments or non-payments which would adversely impact our cash flows from operating activities and/or our results of operations.

Cash Flows from Investing Activities

Cash used in investing activities was $87.6 million in the six months ended June 30, 2017,  as compared to $16.4 million in the prior year period.  During the current year period, we purchased $88.7 million of short-term investments and received proceeds from the maturities of our investments of $13.7 million.  Capital expenditures in the current year perioddecreased $3.0 million as compared to the prior year period.  Capital expenditures for the remainder of the current year are estimated to range between $20 million and $30 million.

Cash Flows from Financing Activities

Cash used infinancing activities was $5.3 million for the six months ended June 30, 2017,as compared to$8.2 million for the prior year period.  During the current year period, we received $13.4 million in net proceeds related to the sale of the Notes, less associated bond hedge and warrant transactions. We also received proceeds of $1.4 million from borrowings under the credit facilities in the current year period as compared to $11.6 million in the prior year period.  The Company made dividend payments of$18.3 millionand $18.2 million during the three months ended June 30, 2017 and 2016, respectively.

Contractual Obligations

There have been no significant changes to our contractual obligations that were previously disclosed in our Report on Form 10-K for the fiscal year ended December 31, 2016.

Application of Critical Accounting Policies

There have been no significant changes to our accounting policies that were previously disclosed in our Report on Form 10-K for our fiscal year ended December 31, 2016 or in the methodology used in formulating these significant judgments and estimates that affect the application of these policies.

Recent Accounting Pronouncements

In May 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2017-09, “Compensation – Stock Compensation (Topic 718) Scope of Modification Accounting.” The ASU provides guidance on the various types of changes which would trigger modification accounting for share-based payment awards. In summary, an entity would not apply modification accounting if the fair value, vesting conditions, and classification of the awards are the same immediately before and after the modification. The guidance is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods, which for the Company will be effective for the fiscal year beginning January 1, 2018. Early adoption is permitted, including adoption in any interim period for which financial statements have not yet been issued. The amendments are to be applied prospectively to an award modified on or after the adoption date, consequently the impact will be dependent on whether the Company modifies any of its share-based payment awards and the nature of such modifications

In January 2017, the FASB issued ASU No. 2017-01, “Business Combinations (Topic 805) Clarifying the Definition of a Business”. The amendments in this ASU clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The definition of a business affects many areas of accounting including acquisitions, disposals, goodwill, and consolidation. The guidance is effective for annual periods beginning after December 15, 2017, which for the Company will be effective for the fiscal year beginning January 1, 2018.  The Company does not expect that the adoption of this new standard will have a material impact on our consolidated financial statements.

In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments,” which addresses eight specific cash flow issues and is intended to reduce diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows.  The guidance is effective for interim and annual periods beginning after December 15, 2017, which for the Company will be effective for the fiscal year beginning January 1, 2018, with early adoption permitted.  The amendments in the ASU should be applied using a retrospective transition method to each

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period presented. The Company is currently evaluating the impact of this new standard and does not expect it to have a material impact on our consolidated financial statements.

In March 2016, the FASB issued ASU No. 2016-09, "Compensation-Stock Compensation (Topic 718) Improvements to Employee Share-Based Payment Accounting." This update simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. The update contains various amendments, each requiring a specific method of adoption, and designates whether each amendment should be adopted using a retrospective, modified retrospective, or prospective transition method. The new guidance was adopted on January 1, 2017. The impact of adoption of the update is summarized below: 

· All excess tax benefits and deficiencies that result from the difference between the deduction for tax purposes and the compensation cost recognized for financial reporting purposes related to our share-based payment awards will be recognized as income tax benefit or expense in the income statement instead of as an adjustment to additional paid-in capital.  In addition, excess tax benefits are no longer included in the calculation of diluted shares outstanding for purposes computing diluted earnings per share under the treasury stock method. The transition guidance related to these changes has been adopted by the Company on a prospective basis.

· An entity is now required to recognize excess tax benefits regardless of whether the benefit reduces taxes payable in the current period. Under the required modified retrospective transition, the Company had no cumulative-effect adjustment to retained earnings at January 1, 2017, as the Company had no previously unrecognized excess tax benefits.

· Excess tax benefits will be classified along with other income tax cash flows as an operating activity on the statement of cash flows. Prior to the update, excess tax benefits were separated from other income tax cash flows and classified as a financing activity. In fiscal year 2016 and 2015, excess tax benefits of $893 and $431, respectively, were recorded as part of financing cash inflows. The Company adopted these changes on a prospective basis.

· Cash paid by an employer when directly withholding shares for tax-withholding purposes upon vesting of a share-based payment award are now classified as a financing activity on the statement of cash flows rather than as operating cash outflows. This amendment has been adopted by the Company on a retrospective basis. As a result of the retrospective adoption of this amendment, cash outflows of $47 was reclassified in the accompanying Consolidated Statements of Cash Flows from “Changes in accounts payable, accrued expenses and other liabilities” to “Taxes paid related to net settlement upon vesting of equity awards” for the six months ended June 30, 2016.  

· The threshold to qualify for equity classification of a share-based payment award would now permit withholding up to a maximum individual statutory tax rate in the applicable jurisdictions. The Company had no share-based payment awards receiving liability treatment under the prior rules. Therefore, the change from minimum up to a maximum statutory rate on tax withholdings had no impact on our consolidated financial statements and no cumulative effect adjustment was required.

· The Company has elected to continue its current policy of estimating forfeitures rather than recognizing forfeitures when they occur. 

In March 2016, the FASB issued ASU No. 2016-07, “Investments – Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting”. The amendments eliminate the requirement to retroactively adopt the equity method of accounting when a change in ownership occurs. The amendments require that the equity method investor add the cost of acquiring the additional interest in the investee to the current basis of the investment and adopt the equity method of accounting as of the date the investment becomes qualified for equity method accounting. Therefore, upon qualifying for the equity method of accounting, no retroactive adjustment of the investment is required. This new guidance was adopted on January 1, 2017 with no material impact on our consolidated financial statements.

In February 2016, the FASB issued ASU No. 2016-02 “Leases (Topic 842),” which will supersede the existing guidance for lease accounting. This new standard will require lessees to recognize leases on their balance sheets, and leaves lessor accounting largely unchanged. The new standard requires a dual approach for lessee accounting under which a lessee would account for leases as finance leases or operating leases. Both finance leases and operating leases will result in the lessee recognizing a right-of-use asset and a corresponding lease liability. For finance leases, the lessee would recognize interest expense and amortization of the right-of-use asset, and for operating leases, the lessee would recognize a straight-line total lease expense. The new guidance is effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years, which for the Company will be effective for the fiscal year beginning January 1, 2019, with early adoption permitted.  An entity will be required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. We are currently evaluating the impact of the adoption of this new standard on our consolidated financial statements.

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In January 2016, the FASB issued ASU No. 2016-01, “Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities,” which requires that most equity investments be measured at fair value, with subsequent changes in fair value recognized in net income (other than those accounted for under equity method of accounting). Under the new guidance, entities will no longer be able to recognize unrealized holding gains and losses on equity securities classified today as available-for-sale in other comprehensive income, and they will no longer be able to use the cost method of accounting for equity securities that do not have readily determinable fair values. However, entities will be able to elect to record equity investments without readily determinable fair values at cost, less impairment, and plus or minus subsequent adjustments for observable price changes. The guidance for classifying and measuring investments in debt securities and loans is not impacted. The new guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017, which for the Company is effective for the fiscal year beginning January 1, 2018, with early adoption permitted. The Company does not expect that the adoption of this new standard will have a material impact on our consolidated financial statements.

In July 2015, the FASB issued ASU No. 2015-11, “Simplifying the Measurement of Inventory,” which requires all inventory to be measured at the lower of cost and net realizable value, except for inventory that is accounted for using the LIFO or the retail inventory method, which will be measured under existing accounting standards. The new guidance must be applied on a prospective basis and was adopted on January 1, 2017 with no material impact on our consolidated financial statements.

In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers (Topic 606)." This standard will supersede the revenue recognition requirements in ASC 605, "Revenue Recognition," and most industry-specific guidance. The standard requires an entity to recognize revenue in an amount that reflects the consideration to which the entity expects to receive in exchange for goods or services. In addition, during 2016, the FASB has issued ASU No. 2016-08, “Principal versus Agent Considerations,” ASU No. 2016-10, “Identifying Performance Obligations and Licensing,” ASU No. 2016-12, “Narrow Scope Improvements and Practical Expedients,” and ASU No. 2016-20, “Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers,” all of which clarify certain implementation guidance in ASU No. 2014-09.  This standard along with the subsequent clarifications issued are effective for annual reporting periods beginning after December 15, 2017, and interim periods within those fiscal years, making it effective for our fiscal year beginning January 1, 2018. Early adoption is permitted to the original effective date for annual reporting periods beginning after December 15, 2016. The standard allows an entity to either apply the requirements retrospectively to all prior periods presented, or apply the requirements in the year of adoption, through a cumulative adjustment. While we are currently evaluating the impact of adoption of this new standard and clarifying guidance on our consolidated financial statements, we believe the most significant impact will be an acceleration in the timing of revenue recognition in our licensing and WWE Studios businesses. We currently record revenues from our licensed products and WWE Studios film distribution revenues after receiving statements from the licensee and/or film distributor. Under the new revenue recognition rules, revenues will be recorded based on best estimates available in the period of sales or usage.We do not expect the impact of this change to be material on a full-year basis, but will likely impact the revenues recorded in a specific quarter as compared to previously reported periods. Based on the limited expected impacts from the standard, we intend to adopt the standard and the related modifications on January 1, 2018, using the modified retrospective approach.  Under this approach, the cumulative effect of initially applying the guidance will be reflected as an adjustment to beginning retained earnings.

Cautionary Statement for Purposes of the “Safe Harbor” Provisions of the Private Securities Litigation Reform Act of 1995

The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for certain statements that are forward-looking and are not based on historical facts.  When used in this Form 10-Q and our other SEC filings, our press releases and comments made in earnings calls, investor presentations or otherwise to the public, the words “may,” “will,” “could,” “anticipate,” “plan,” “continue,” “project,” “intend,” “estimate,” “believe,” “expect” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such words.  These statements relate to our future plans, objectives, expectations and intentions and are not historical facts and accordingly involve known and unknown risks and uncertainties and other factors that may cause the actual results or the performance by us to be materially different from future results or performance expressed or implied by such forward-looking statements.  The following factors, among others, could cause actual results to differ materially from those contained in forward-looking statements made in this Form 10-Q and our other SEC filings, in press releases, earnings calls and other statements made by our authorized officers: (i) risks relating to WWE Network, including the risk that we are unable to attract, retain and renew subscribers; (ii) risks relating to entering, maintaining and renewing major distribution agreements; (iii) our need to continue to develop creative and entertaining programs and events; (iv) our need to retain or continue to recruit key performers; (v) the risk of a decline in the popularity of our brand of sports entertainment, including as a result of changes in the social and political climate;  (vi) the possible unexpected loss of the services of Vincent K. McMahon; (vii) possible adverse changes in the regulatory atmosphere and related private sector initiatives; (viii) the highly competitive, rapidly changing and increasingly fragmented nature of the markets in which we operate and/or our inability to compete effectively, especially against competitors with greater financial resources or marketplace presence; (ix) uncertainties associated with international markets; (x) our difficulty or inability to promote and conduct our live events and/or other businesses if we do not comply with applicable regulations; (xi) our dependence on our intellectual property rights, our need to protect those rights, and the risks of our infringement of others’ intellectual property rights; (xii) risks relating to the complexity of our rights agreements across distribution mechanisms and geographical areas; (xiii) the risk of substantial liability in the event of accidents or injuries occurring during our physically demanding events including, without limitation, claims relating to CTE;

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(xiv) exposure to risks relating to large public events as well as travel to and from such events; (xv) risks inherent in our feature film business; (xvi) a variety of risks as we expand into new or complementary businesses and/or make strategic investments and/or acquisitions; (xvii) risks related to our computer systems and online operations; (xviii) risks relating to privacy norms and regulations; (xix) risks relating to a possible decline in general economic conditions and disruption in financial markets; (xx) risks relating to our accounts receivable; (xxi) risks relating to our indebtedness;  (xxii) potential substantial liabilities if litigation is resolved unfavorably; (xxiii) our potential failure to meet market expectations for our financial performance; (xxiv) through his beneficial ownership of a substantial majority of our Class B common stock, our controlling stockholder, Vincent K. McMahon, exercises control over our affairs, and his interests may conflict with the holders of our Class A common stock; (xxv) a substantial number of shares are eligible for sale by Mr. McMahon and members of his family or trusts established for their benefit, and the sale, or the perception of possible sales, of those shares could lower our stock price; and (xxvi) risks related to the relatively small public “float” of our Class A common stock.  In addition, our dividend is dependent on a number of factors, including, among other things, our liquidity and historical and projected cash flow, strategic plan (including alternative uses of capital), our financial results and condition, contractual and legal restrictions on the payment of dividends (including under our revolving credit facility), general economic and competitive conditions and such other factors as our Board of Directors may consider relevant.  Forward-looking statements made by the Company speak only as of the date made, are subject to change without any obligation on the part of the Company to update or revise them, and undue reliance should not be placed on these statements.   For more information about risks and uncertainties associated with the Company's business, please refer to the "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" sections of this Form 10-Q and our other SEC filings, including, but not limited to, our annual report on Form 10-K.

Item  3.  Quantitative and Qualitative Disclosures about Market Risk

There have been no significant changes to our market risk factors that were previously disclosed in our Report on Form 10‑K for our fiscal year ended December 31, 2016.

Item  4.  Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Our management, with the participation of our Chairman of the Board and Chief Executive Officer and our Chief Financial Officer, evaluated our disclosure controls and procedures (as defined in Rule 13a-15(e) or Rule 15d-15(e) under the Securities Exchange Act of 1934, as amended).  Based on that evaluation, our Chairman of the Board and Chief Executive Officer and our Chief Financial Officer concluded that our disclosure controls and procedures were effective as of June 30, 2017.

Our management, including our Chairman of the Board and Chief Executive Officer and Chief Financial Officer, does not expect that our disclosure controls and procedures or our internal controls will prevent all error and all fraud. A control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system’s objectives will be met.  Further, because of inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been detected.

Changing in Internal Control Over Financial Reporting

There were no changes in our internal control over financial reporting that occurred during the quarter ended June 30, 2017, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II. OTHER INFORMATION

Item 1.  Legal Proceedings

On October 23, 2014, a lawsuit was filed in the U. S. District Court for the District of Oregon, entitled William Albert Haynes III, on behalf of himself and others similarly situated, v. World Wrestling Entertainment, Inc.  This complaint was amended on January 30, 2015 and alleges that the Company ignored, downplayed, and/or failed to disclose the risks associated with traumatic brain injuries suffered by WWE’s performers and seeks class action status.  On March 31, 2015, the Company filed a motion to dismiss the first amended class action complaint in its entirety or, if not dismissed, to transfer the lawsuit to the U.S. District Court for the District of Connecticut.  Without addressing the merits of the Company's motion to dismiss, the Court transferred the case to Connecticut on June 25, 2015.  The plaintiffs filed an objection to such transfer, which was denied on July 27, 2015.  On January 16, 2015, a second lawsuit was filed in the U. S. District Court for the Eastern District of Pennsylvania, entitled Evan Singleton and Vito LoGrasso, individually and on behalf of all others similarly situated, v. World Wrestling Entertainment, Inc., alleging many of the same allegations as Haynes.  On February 27, 2015, the Company moved to transfer venue to the U.S. District Court for the District of Connecticut due to forum-selection clauses in the contracts between WWE and the plaintiffs and that motion was granted on March 23, 2015.  The plaintiffs filed an amended complaint on May 22, 2015 and, following a scheduling conference in which the court

46

ordered the plaintiffs to cure various pleading deficiencies, the plaintiffs filed a second amended complaint on June 15, 2015.  On June 29, 2015, WWE moved to dismiss the second amended complaint in its entirety.   On April 9, 2015, a third lawsuit was filed in the U. S. District Court for the Central District of California, entitled Russ McCullough, a/k/a “Big Russ McCullough,” Ryan Sakoda, and Matthew R. Wiese a/k/a “Luther Reigns,” individually and on behalf of all others similarly situated, v. World Wrestling Entertainment, Inc., asserting similar allegations to Haynes.  The Company again moved to transfer the lawsuit to Connecticut due to forum-selection clauses in the contracts between WWE and the plaintiffs, which the California court granted on July 10, 2015.  On September 21, 2015, the plaintiffs amended this complaint and, on November 16, 2015, the Company moved to dismiss the amended complaint.  Each of these suits seeks unspecified actual, compensatory and punitive damages and injunctive relief, including ordering medical monitoring.  The Haynes and McCullough cases purport to be class actions.  On February 18, 2015, a lawsuit was filed in Tennessee state court and subsequently removed to the U.S. District Court for the Western District of Tennessee, entitled Cassandra Frazier, individually and as next of kin to her deceased husband, Nelson Lee Frazier, Jr., and as personal representative of the Estate of Nelson Lee Frazier, Jr. Deceased, v. World Wrestling Entertainment, Inc.  A similar suit was filed in the U. S. District Court for the Northern District of Texas entitled Michelle James, as mother and next friend of Matthew Osborne, minor child, and Teagan Osborne, a minor child v. World Wrestling Entertainment, Inc. These lawsuits contain many of the same allegations as the other lawsuits alleging traumatic brain injuries and further allege that the injuries contributed to these former talents’ deaths.  WWE moved to transfer the Frazier and Osborne lawsuits to the U.S. District Court for the District of Connecticut based on forum-selection clauses in the decedents’ contracts with WWE, which motions were granted by the respective courts.  On November 23, 2015, amended complaints were filed in Frazier and Osborne, which the Company moved to dismiss on December 16, 2015 and December 21, 2015, respectively. On November 10, 2016, the Court granted the Company’s motions to dismiss the Frazier and Osborne lawsuits in their entirety. On June 29, 2015, the Company filed a declaratory judgment action in the U. S. District Court for the District of Connecticut entitled World Wrestling Entertainment, Inc. v. Robert Windham, Thomas Billington, James Ware, Oreal Perras and various John and Jane Does seeking a declaration against these former performers that their threatened claims related to alleged traumatic brain injuries and/or other tort claims are time-barred.  On September 21, 2015, the defendants filed a motion to dismiss this complaint, which the Company opposed.  The Court previously ordered a stay of discovery in all cases pending decisions on the motions to dismiss.  On January 15, 2016, the Court partially lifted the stay and permitted discovery only on three issues in the case involving Singleton and LoGrasso. Such discovery was completed by June 1, 2016. On March 21, 2016, the Court issued a memorandum of decision granting in part and denying in part the Company’s motions to dismiss the Haynes, Singleton/LoGrasso, and McCullough lawsuits.  The Court granted the Company’s motions to dismiss the Haynes and McCullough lawsuits in their entirety and granted the Company’s motion to dismiss all claims in the Singleton/LoGrasso lawsuit except for the claim of fraud by omission.  On March 22, 2016, the Court issued an order dismissing the Windham lawsuit based on the Court’s memorandum of decision on the motions to dismiss. On April 4, 2016, the Company filed a motion for reconsideration with respect to the Court’s decision not to dismiss the fraud by omission claim in the Singleton/LoGrasso lawsuit and, on April 5, 2016, the Company filed a motion for reconsideration with respect to the Court dismissal of the Windham lawsuit.  On July 21, 2016, the Court denied the Company’s motion in the Singleton/LoGrasso lawsuit and granted in part the Company’s motion in the Windham lawsuit. On April 20, 2016, the plaintiffs filed notices of appeal of the Haynes and McCullough lawsuits.  On April 27, 2016, the Company moved to dismiss the appeals for lack of appellate jurisdiction, which motions were granted and the appeals were dismissed with leave to appeal upon the resolution of all of the consolidated cases.  The Company has filed a motion for summary judgment on the sole remaining claim in the Singleton/LoGrasso lawsuit. Lastly, on July 18, 2016, a lawsuit was filed in the U.S. District Court for the District of Connecticut, entitled Joseph M. Laurinaitis, et al. vs. World Wrestling Entertainment, Inc. and Vincent K. McMahon, individually and as the trustee of certain trusts.  This lawsuit contains many of the same allegations as the other lawsuits alleging traumatic brain injuries and further alleges, among other things, that the plaintiffs were misclassified as independent contractors rather than employees denying them, among other things, rights and benefits under the Occupational Safety and Health Act (OSHA), the National Labor Relations Act (NLRA), the Family and Medical Leave Act (FMLA), federal tax law, and various state Worker’s Compensation laws. This lawsuit also alleges that the booking contracts and other agreements between the plaintiffs and the Company are unconscionable and should be declared void, entitling the plaintiffs to certain damages relating to the Company’s use of their intellectual property. The lawsuit alleges claims for violation of RICO, unjust enrichment, and an accounting against Mr. McMahon.  The Company and Mr. McMahon moved to dismiss this complaint on October 19, 2016.  On November 9, 2016, the Laurinaitis plaintiffs filed an amended complaint.  On December 23, 2016, the Company and Mr. McMahon moved to dismiss the amended complaint. The Company believes all claims and threatened claims against the Company in these various lawsuits are being prompted by the same plaintiffs’ lawyer and are without merit.  The Company intends to continue to defend itself against these lawsuits vigorously. 

On August 9, 2016, a lawsuit was filed in the U.S. District Court for the District of Connecticut entitled Marcus Bagwell, individually and on behalf of all others similarly situated v. World Wrestling Entertainment, Inc.  The lawsuit alleges claims for breach of contract, breach of fiduciary duty, unjust enrichment and violations of the Connecticut Unfair Trade Practices Act, C.G.S. §42-110a, et seq., principally arising from WWE’s alleged failure to pay royalties for streaming video on WWE Network. On September 7, 2016, a motion for leave to amend was filed along with a proposed amended complaint that, among other things, sought to add Scott Levy as an individual plaintiff and WCW, Inc. as a defendant.  On November 4, 2016, the Court granted plaintiffs’ motion for leave to amend and plaintiffs filed their amended complaint on November 7, 2016. On December 2, 2016, the Company moved to dismiss the amended complaint. On May 5, 2017, the Court granted in part and denied in part the Company’s motion to dismiss. The Court dismissed plaintiff’s declaratory judgment, unjust enrichment and successor liability claims, as well as all claims asserted against WCW, Inc. The Court also granted plaintiffs leave to file a second amended complaint, which plaintiffs filed on May 19, 2017. Plaintiffs then sought leave to file a third amended complain to correct certain errors by plaintiffs’ counsel, which the Court granted and plaintiffs filed their

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third amended complaint on June 15, 2017. The third amended complaint continues to assert claims for breach of contract, breach of fiduciary duty, and violations of the Connecticut Unfair Trade Practices Act, C.G.S.§42-110a, et seq. against WWE. The Company believes all claims against the Company in this lawsuit are without merit and intends to continue to defend itself vigorously.

In addition to the foregoing, from time to time we become a party to other lawsuits and claims.  By its nature, the outcome of litigation is not known, but the Company does not currently expect this ordinary course litigation to have a material adverse effect on our financial condition, results of operations or liquidity.

Item 1A.  Risk Factors

We do not believe there have been any material changes to the risk factors previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2016.

Item  6.  Exhibits

(a) Exhibits:

Exhibit No.	Description of Exhibit
10.15F	Amendment No. 2 to the Credit, Security and Guaranty Agreement, dated April 30, 2017, entered into between WWE Studios Finance Corp. and Bank of America, N.A., as Administrative Agent (filed herewith).
31.1	Certification by Vincent K. McMahon pursuant to Section 302 of Sarbanes-Oxley Act of 2002 (filed herewith).
31.2	Certification by George A. Barrios pursuant to Section 302 of Sarbanes-Oxley Act of 2002 (filed herewith).
32.1	Certification by Vincent K. McMahon and George A. Barrios pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (filed herewith).
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document

* Indicates management contract or compensatory plan or arrangement.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereto duly authorized.

		World Wrestling Entertainment, Inc. (Registrant)
Dated:	July 27, 2017	By:	/s/ GEORGE A. BARRIOS
			George A. Barrios
			Chief Strategy and Financial Officer
			(principal financial officer and authorized
			signatory)

By:	/s/ MARK KOWAL
	Mark Kowal
	Chief Accounting Officer and
	Senior Vice President, Controller
	(principal accounting officer and authorized
	signatory)

49

EX-10.15F

AMENDMENT NO. 2TO THE CREDIT, SECURITY AND GUARANTY AGREEMENT

This Amendment No. 2 to the Credit, Security and Guaranty Agreement (“Amendment”), is being entered into as of April 30, 2017, among WWE Studios Finance Corp., a Delaware corporation (the “Borrower”), the Guarantors (as defined in the Credit Agreement), the Lenders (as defined in the Credit Agreement), and Bank of America, N.A., as Administrative Agent (as defined in the Credit Agreement) and L/C Issuer.

RECITALS

This Amendment is being entered into in reference to the following facts:

A.The Borrower, the Guarantors, the Lenders, the L/C Issuer and the Administrative Agent, entered into a Credit, Security and Guaranty Agreement, dated as of May 13, 2015 (as amended, supplemented or otherwise modified, renewed, restated or replaced from time to time, the “Credit Agreement”).  All terms used but not defined herein have the meanings assigned to them in the Credit Agreement.

B.The Borrower has requested that the Administrative Agent make certain changes to the Credit Agreement.

C.The Administrative Agent and the Lenders constituting the Required Lenders have agreed toamend the terms of the Credit Agreement as provided herein, in each case subject to the terms hereof.

NOW, THEREFORE, in consideration of the mutual covenants contained herein, the Borrower, the Guarantors, the Required Lenders and the Administrative Agent each hereby agree as follows.

ARTICLE 1 –AMENDMENTS

1.1 BH Agent.  Section 1.01 of the Credit Agreement is hereby amended by adding the following term “BH Agent” in alphabetical order therein:

“‘BH Agent’ means Bank of America, N.A., in its capacity as administrative agent under the BH Credit Agreement.”

1.2 BH Credit Agreement.  Section 1.01 of the Credit Agreement is hereby amended by adding the following term “BH Credit Agreement” in alphabetical order therein:

“‘BH Credit Agreement’ means the Credit, Security, Guaranty and Pledge Agreement, dated as of April 18, 2017, by and among, inter alios, BH Tilt and BH Agent, as amended, modified, supplemented or restated from time to time.”

1.3 BH Domestic Territory.  Section 1.01 of the Credit Agreement is hereby amended by adding the following term “BH Domestic Territory” in alphabetical order therein:

“‘BH Domestic Territory’ shall have the meaning given to the term “Domestic Territory” in the BH Credit Agreement.”

1.4 BH Intercreditor Agreement.  Section 1.01 of the Credit Agreement is hereby amended by adding the following term “BH Intercreditor Agreement” in alphabetical order therein:

“‘BH Intercreditor Agreement’  means each intercreditor or other agreement, among, inter alios, with respect to the applicable Covered Picture among,inter alios, the Administrative Agent, the BH Agent, Borrower and BH Tilt, as amended, modified, supplemented or restated from time to time.”

1.5 BH Tilt.  Section 1.01 of the Credit Agreement is hereby amended by adding the following term “BH Tilt” in alphabetical order therein:

“‘BH Tilt’ means Blumhouse Tilt, LLC, a Delaware limited liability company.”

1.6 Section 7.01(v).  Section 7.01(v) of the Credit Agreement is hereby amended and restated to read in its entirety as follows:

“(v)with respect to the Existing Pictures only, the Liens approved by the Administrative Agent; and”

1.7 Section 7.01(w).  Section 7.01 of the Credit Agreement is hereby amended by adding the following subsection (w) to the end thereof:

“(w) Liens granted to the BH Agent with respect to the rights in and to the BH Domestic Territory in any Picture under the BH Credit Agreement and any related security documents, agreements and filings, in each case, subject to the terms of the applicable BH Intercreditor Agreement.”

ARTICLE 2 –CONDITIONS

2.1 Conditions Precedent.  The effectiveness of this Amendment is subject to the satisfaction in full of each of the conditions precedent set forth in this Section 2.1:

(a) the Administrative Agent shall have received original counterparts of this Amendment executed by the Borrower, the Guarantors and the Lenders;

(b) after giving effect to this Amendment,no Event of Default or Default shall have occurred and be occurring;

(c) all fees and expenses then due and payable by any Credit Party to the Administrative Agent and/or the Lenders in connection with the transactions contemplated hereby, or as required by any fee letter in respect of the Credit Agreement, shall have been paid or shall be paid contemporaneously with the effectiveness of this Amendment; and

(d) the representations and warranties contained in Article 3 hereof being true and correct.

ARTICLE 3 –REPRESENTATIONS AND WARRANTIES

3.1 Credit Agreement Warranties.  Each Credit Party represents and warrants that after giving effect to this Amendment, the representations and warranties contained in Article V of the Credit Agreement (as the Credit Agreement is being modified pursuant to this Amendment), and in the other Loan Documents, or that are contained in any document furnished at any time under or in connection therewith, are true and correct in all material respects on and as of the date hereof as if such representations and warranties had been made on and as of the date hereof, except to the extent that such representations and warranties specifically refer to an earlier date, in which case such representations and warranties shall be true and correct in all material respects as of such earlier date with the same effect as if made on and as of such date. 

3.2 Credit Party Authority.  Each Credit Party represents and warrants that it has the company power and authority to execute this Amendment and that any company action requisite to its execution and performance of this Amendment has been undertaken on its part.

ARTICLE 4 –GENERAL PROVISIONS

4.1 Further Assurances.  At any time and from time to time, upon the Administrative Agent’s request and at the sole expense of the Credit Parties, each Credit Party will promptly and duly execute and deliver any and all further instruments and documents and take such further action as the Administrative Agent reasonably deems necessary to effect the purposes of this Amendment.

4.2 Loan Documents.   This Amendment constitutes a Loan Document under the terms of the Credit Agreement.

4.3 Full Force and Effect.  Except as expressly set forth herein, this Amendment does not constitute a waiver or a modification of any provision of the Credit Agreement or any other Loan Document or a waiver of any Event of Default under the Credit Agreement or any other Loan Document.  Except to the extent amended hereby, the Credit Agreement and the other Loan Documents shall continue in full force and effect in accordance with the provisions thereof on the date hereof and are hereby ratified and affirmed.  As used in the Credit Agreement, the terms “Credit Agreement,”“this Agreement,”“herein,”“hereafter,”“hereto,”“hereof” and words of similar import, shall, unless the context otherwise requires, mean the Credit Agreement as modified by this Amendment.

4.4 References.  This Amendment shall be limited precisely as written, and, except to the extent expressly set forth herein, shall not be deemed (a) to be a consent granted pursuant to, or a waiver or modification of, any other term or condition of the Credit Agreement, any other Loan Document or any of the instruments or agreements referred to therein or (b) to prejudice

any right or rights which the Administrative Agent or the Lenders may now have or have in the future under or in connection with the Credit Agreement, any other Loan Document or any of the instruments or agreements referred to therein.  Whenever the Credit Agreement is referred to in the Credit Agreement or any other Loan Document or any of the instruments, agreements or other documents or papers executed or delivered in connection therewith, such reference shall be deemed to mean the Credit Agreement as modified by this Amendment.

4.5 Choice of Law.  This amendment shall in all respects be construed in accordance with, and governed by, the laws of the state of New York which are applicable to contracts made and to be performed wholly within such state.

4.6 Counterparts.  This Amendment may be executed by facsimile or electronically by PDF or TIFF file and in any number of counterparts, each of which shall constitute an original, but all of which when taken together shall constitute but one instrument.

4.7 Headings.  The headings of this Amendment are for the purposes of reference only and shall not affect the construction of this Amendment.

4.8 Expenses.  The Borrower agrees to pay all out of pocket expenses incurred by the Administrative Agent in connection with the preparation, execution and delivery of this Amendment, including, but not limited to, the reasonable fees and disbursements of counsel for the Administrative Agent.

4.9 FATCA Status.  For purposes of determining withholding Taxes imposed under FATCA, from and after the effective date of this Amendment, the Borrower and the Administrative Agent shall treat (and the Lenders hereby authorize the Administrative Agent to treat) the Credit Agreement as not qualifying as a “grandfathered obligation” within the meaning of Treasury Regulation Section 1.1471-2(b)(2)(i).

4.10 Consent to Jurisdiction; Service of Process; Waiver of Jury Trial.  The jurisdiction, service of process and waiver of jury trial provisions set forth in Sections 13.14(b), (d) and (e) of the Credit Agreement are hereby incorporated by reference, mutatis mutandis.

[Signature Pages to Follow]

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed by their duly authorized signatories, all as of the date and year first above written.

	WWE STUDIOS FINANCE CORP.,
	as Borrower
By:	/s/ MARK KOWAL
	Mark Kowal
	Senior Vice President, Controller
	GUARANTORS:
	THE MARINE 5 FILMS INC.
By:	/s/ MARK KOWAL
	Mark Kowal
	Senior Vice President, Controller

	GOOD AND BAD COP, LLC
By:	/s/ MARK KOWAL
	Mark Kowal
	Senior Vice President, Controller

	TM5 FILMS, LLC
By:	/s/ MARK KOWAL
	Mark Kowal
	Senior Vice President, Controller

	FIGHTING FAMILY LTD.
By:	/s/ MARK KOWAL
	Mark Kowal
	Senior Vice President, Controller

	FWMF, LLC
By:	/s/ MARK KOWAL
	Mark Kowal
	Senior Vice President, Controller

	BANK OF AMERICA, N.A., as
	Administrative Agent
By:	/s/ RANDY HUA
	Randy Huau
	Senior Vice President

	BANK OF AMERICA, N.A., as a Lender
	and as L/C Issuer
By:	/s/ RANDY HUA
	Randy Huau
	Senior Vice President

EX-31.1

Exhibit 31.1

Certification required by Securities and Exchange Act of 1934 Rule13a-14 as adopted pursuant to Section302 of Sarbanes‑Oxley Act of 2002

I, Vincent K. McMahon, certify that:

1. I have reviewed this quarterly report on Form 10-Q of World Wrestling Entertainment, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated:	July 27,2017	By:	/s/VINCENTK.MCMAHON
			VincentK.McMahon
			ChairmanoftheBoardand
			ChiefExecutiveOfficer

EX-31.2

Exhibit 31.2

Certification required by Securities and Exchange Act of 1934 Rule 13a-14 as adopted pursuant to Section 302 of Sarbanes-Oxley Act of 2002

I, George A. Barrios, certify that:

1. I have reviewed this quarterly report on Form 10-Q of World Wrestling Entertainment, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated:	July 27,2017	By:	/s/GEORGEA.BARRIOS
			GeorgeA.Barrios
			ChiefStrategyandFinancialOfficer

EX-32.1

Exhibit 32.1

Certification of Chairman and CEO and CFO Pursuant to18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the quarterly report on Form 10-Q of World Wrestling Entertainment, Inc. (the “Company”) for the quarter ended June 30, 2017 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), Vincent K. McMahon as Chairman of the Board and Chief Executive Officer of the Company and George A. Barrios as Chief Strategy and Financial Officer of the Company, each hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of his or her knowledge:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 as amended; and

(2) The information contained in the report fairly presents, in all material aspects, the financial condition and results of operations of the Company.

Dated:	July 27, 2017	By:	/s/ VINCENT K. MCMAHON
			Vincent K. McMahon
			Chairman of the Board and
			Chief Executive Officer
		By:	/s/ GEORGE A. BARRIOS
			George A. Barrios
			Chief Strategy and Financial Officer

XML

Document And Entity Information - shares	6 Months Ended
	Jun. 30, 2017	Jul. 25, 2017
Class of Stock [Line Items]
Entity Registrant Name	WORLD WRESTLING ENTERTAINMENTINC
Entity Central Index Key	0001091907
Entity Filer Category	Accelerated Filer
Trading Symbol	wwe
Amendment Flag	false
Document Type	10-Q
Document Fiscal Period Focus	Q2
Document Period End Date	Jun. 30, 2017
Document Fiscal Year Focus	2017
Current Fiscal Year End Date	--12-31
Common Class A [Member]
Class of Stock [Line Items]
Entity Common Stock, Shares Outstanding (in Shares)		39,152,845
Common Class B [Member]
Class of Stock [Line Items]
Entity Common Stock, Shares Outstanding (in Shares)		37,949,438

XML

Consolidated Statements Of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Consolidated Statements Of Operations [Abstract]
Net revenues	$ 214,586	$ 198,994	$ 403,030	$ 370,094
Cost of revenues	136,387	132,020	245,540	225,354
Selling, general and administrative expenses	61,127	59,435	129,561	109,610
Depreciation and amortization	6,377	5,966	13,245	11,553
Operating income	10,695	1,573	14,684	23,577
Interest expense	3,639	601	7,165	1,194
Investment income, net	736	643	1,597	1,253
Other (expense) income, net	(17)	(588)	47	(1,244)
Income before income taxes	7,775	1,027	9,163	22,392
Provision for income taxes	2,690	165	3,190	7,645
Net income	$ 5,085	$ 862	$ 5,973	$ 14,747
Earnings per share: basic	$ 0.07	$ 0.01	$ 0.08	$ 0.19
Earnings per share: diluted	$ 0.06	$ 0.01	$ 0.08	$ 0.19
Weighted average common shares outstanding:
Basic	76,455	75,952	76,448	75,945
Diluted	78,563	77,429	78,374	77,304
Dividends declared per common share (Class A and B)	$ 0.12	$ 0.12	$ 0.24	$ 0.24

XML

Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Consolidated Statements Of Comprehensive Income (Loss) [Abstract]
Net income	$ 5,085	$ 862	$ 5,973	$ 14,747
Other comprehensive income (loss):
Foreign currency translation adjustments	32	(118)	77	(105)
Unrealized holding (losses) gains on available-for-sale securities (net of tax (benefit) expense of ($15) and $38, and ($37) and $168, respectively)	(25)	61	(61)	274
Total other comprehensive income (loss)	7	(57)	16	169
Comprehensive income	$ 5,092	$ 805	$ 5,989	$ 14,916

XML

Consolidated Statements Of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2016
Consolidated Statements Of Comprehensive Income (Loss) [Abstract]
(Losses) gains on unrealized holding gains on available-for-sale securities, tax (benefit) expense	$ 38	$ 168

XML

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
CURRENT ASSETS:
Cash and cash equivalents	$ 132,815	$ 211,976
Short-term investments, net	129,448	55,164
Accounts receivable (net of allowance for doubtful accounts and returns f $8,332 and $8,259, respectively)	55,548	53,155
Inventory	8,375	6,531
Prepaid expenses and other current assets	27,665	22,480
Total current assets	353,851	349,306
PROPERTY AND EQUIPMENT, NET	131,552	132,631
FEATURE FILM PRODUCTION ASSETS, NET	29,117	27,137
TELEVISION PRODUCTION ASSETS, NET	9,408	12,508
INVESTMENT SECURITIES	25,087	24,957
NON-CURRENT DEFERRED INCOME TAX ASSETS	32,568	32,556
OTHER ASSETS, NET	17,753	21,808
TOTAL ASSETS	599,336	600,903
CURRENT LIABILITIES:
Current portion of long-term debt	7,230	6,121
Accounts payable and accrued expenses	60,396	70,360
Deferred income	57,749	56,653
Total current liabilities	125,375	133,134
LONG-TERM DEBT	33,290	35,596
CONVERTIBLE DEBT	175,429	161,008
NON-CURRENT INCOME TAX LIABILITIES	618	725
NON-CURRENT DEFERRED INCOME	22,303	30,697
Total liabilities	357,015	361,160
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS’ EQUITY:
Additional paid-in-capital	418,331	403,387
Accumulated other comprehensive income	2,911	2,895
Accumulated deficit	(179,685)	(167,303)
Total stockholders' equity	242,321	239,743
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	599,336	600,903
Common Class A [Member]
STOCKHOLDERS’ EQUITY:
Common stock	385	385
Common Class B [Member]
STOCKHOLDERS’ EQUITY:
Common stock	$ 379	$ 379

XML

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Accounts receivable, allowance for doubtful accounts and returns	$ 8,332	$ 8,259
Common Class A [Member]
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	180,000,000	180,000,000
Common stock, shares issued	38,507,281	38,455,266
Common stock, shares outstanding	38,507,281	38,455,266
Common Class B [Member]
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	60,000,000	60,000,000
Common stock, shares issued	37,949,438	37,949,438
Common stock, shares outstanding	37,949,438	37,949,438

XML

Consolidated Statements Of Stockholders' Equity - 6 months ended Jun. 30, 2017 - USD ($) $ in Thousands	Common Stock [Member] Common Class A [Member]	Common Stock [Member] Common Class B [Member]	Additional Paid-In Capital [Member]	Accumulated Other Comprehensive Income [Member]	Accumulated Deficit [Member]	Common Class A [Member]	Common Class B [Member]	Total
Balance, Shares at Dec. 31, 2016	38,455,000	37,949,000				38,455,266	37,949,438
Balance at Dec. 31, 2016	$ 385	$ 379	$ 403,387	$ 2,895	$ (167,303)			$ 239,743
Net income					5,973			5,973
Other comprehensive income				16				16
Stock issuances, net, Shares	52,000
Stock issuances, net			767					767
Debt discount on convertible debt, net (See Note 13)			2,487					2,487
Purchase of convertible note hedge (See Note 13)			(2,558)					(2,558)
Proceeds from issuance of warrants (See Note 13)			1,460					1,460
Cash dividends declared			6		(18,355)			(18,349)
Stock-based compensation			12,782					12,782
Balance, Shares at Jun. 30, 2017	38,507,000	37,949,000				38,507,281	37,949,438
Balance at Jun. 30, 2017	$ 385	$ 379	$ 418,331	$ 2,911	$ (179,685)			$ 242,321

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Consolidated Statements Of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
OPERATING ACTIVITIES:
Net income	$ 5,973	$ 14,747
Adjustments to reconcile net income to net cash provided by operating activities:
Amortization and impairments of feature film production assets	5,803	2,701
Amortization of television production assets	10,721	17,569
Depreciation and amortization	16,605	13,932
Services provided in exchange for equity instruments	(1,394)	(1,705)
Equity in earnings of affiliate, net of dividends received	23	(90)
Other amortization	3,161	1,154
Stock-based compensation	12,782	9,589
Provision for (recovery from) doubtful accounts	272	(167)
(Benefit from) provision for deferred income taxes	(12)	2,138
Other non-cash adjustments	121	278
Cash (used in)/provided by changes in operating assets and liabilities:
Accounts receivable	(2,588)	3,225
Inventory	(1,844)	(1,207)
Prepaid expenses and other assets	(5,432)	(11,996)
Feature film production assets	(7,783)	(5,023)
Television production assets	(7,621)	(15,122)
Accounts payable, accrued expenses and other liabilities	(9,087)	(10,414)
Deferred income	(5,904)	(16,830)
Net cash provided by operating activities	13,796	2,779
INVESTING ACTIVITIES:
Purchases of property and equipment and other assets	(12,462)	(15,533)
Purchases of short-term investments	(88,696)
Proceeds from sales and maturities of investments	13,660	400
Purchase of investment securities	(116)	(1,250)
Net cash used in investing activities	(87,614)	(16,383)
FINANCING ACTIVITIES:
Repayment of long-term debt	(2,580)	(2,208)
Dividends paid	(18,349)	(18,229)
Proceeds from borrowings under credit facilities	1,383	11,583
Proceeds from borrowings on convertible notes, net of issuance costs	14,534
Proceeds from issuance of warrants	1,460
Purchase of convertible note hedge	(2,558)
Taxes paid related to net settlement upon vesting of equity awards	(56)	(47)
Proceeds from issuance of stock	823	673
Excess tax benefits from stock-based payment arrangements		6
Net cash used in financing activities	(5,343)	(8,222)
NET DECREASE IN CASH AND CASH EQUIVALENTS	(79,161)	(21,826)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	211,976	38,019
CASH AND CASH EQUIVALENTS, END OF PERIOD	132,815	16,193
NON-CASH INVESTING AND FINANCING TRANSACTIONS:
Non-cash purchase of property and equipment	$ 1,993	$ 768

XML

Basis Of Presentation And Business Description

6 Months Ended

Jun. 30, 2017

Basis Of Presentation And Business Description [Abstract]

Basis Of Presentation And Business Description

1. Basis of Presentation and Business Description

The accompanying consolidated financial statements include the accounts of WWE.  “WWE” refers to World Wrestling Entertainment, Inc. and its subsidiaries, unless the context otherwise requires.  References to “we,” “us,” “our” and the “Company” refer to WWE. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires our management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period.  Actual results could differ from those estimates.

The accompanying consolidated financial statements are unaudited. All adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation of financial position, results of operations, and cash flows at the dates and for the periods presented have been included.  The results of operations of any interim period are not necessarily indicative of the results of operations for the full year. All intercompany balances are eliminated in consolidation.

Certain information and note disclosures normally included in annual financial statements have been condensed or omitted from these interim financial statements; these financial statements should be read in conjunction with the financial statements and notes thereto included in our Form 10-K for the year ended December 31, 2016.  Certain reclassifications have been made to the Consolidated Statement of Cash Flows in the prior year to conform to the current year presentation pursuant to our adoption of a new accounting standard as of January 1, 2017 related to share-based payment award accounting simplifications. See Note 2, Significant Accounting Policies, for further details.

We are an integrated media and entertainment company, principally engaged in the production and distribution of content through various channels, including our premium over-the-top WWE Network, television rights agreements, pay-per-view event programming, live events, feature films, licensing of various WWE themed products, and the sale of consumer products featuring our brands.  Our operations are organized around the following four principal activities:

Media Division:

Network

· Revenues consist principally of subscriptions to WWE Network, fees for viewing our pay-per-view programming, and advertising fees.

Television

· Revenues consist principally of television rights fees and advertising.

Home Entertainment

· Revenues consist principally of sales of WWE produced content via home entertainment platforms, including DVD, Blu-Ray, and subscription and transactional on-demand outlets.

Digital Media

· Revenues consist principally of advertising sales on our websites and third party websites including YouTube, and sales of various broadband and mobile content.

Live Events:

· Revenues consist principally of ticket sales and travel packages for live events.

Consumer Products Division:

Licensing

· Revenues consist principally of royalties or license fees related to various WWE themed products such as video games, toys, and apparel.

Venue Merchandise

· Revenues consist of sales of merchandise at our live events.

WWEShop

· Revenues consist of sales of merchandise on our websites, including through our WWEShop Internet storefront and on distribution platforms, including Amazon.

WWE Studios:

· Revenues consist of amounts earned from investing in, producing, and/or distributing filmed entertainment.

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Significant Accounting Policies

6 Months Ended

Jun. 30, 2017

Significant Accounting Policies [Abstract]

Significant Accounting Policies

2. Significant Accounting Policies

There have been no significant changes to our accounting policies that were previously disclosed in our Annual Report on Form 10-K for our fiscal year ended December 31, 2016, or in the methodology used in formulating these significant judgments and estimates that affect the application of these policies.

Cost of Revenues

Included within Costs of revenues are the following:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2017		2016		2017		2016
Amortization and impairment of feature film assets	$	3,072	$	1,595	$	5,803	$	2,701
Amortization of television production assets		5,105		9,438		10,721		17,569
Amortization of WWE Network content delivery and technology assets		1,691		1,230		3,355		2,379
Total amortization and impairment included in cost of revenues	$	9,868	$	12,263	$	19,879	$	22,649

Costs to produce our live event programming are expensed when the event is first broadcast, and are not included in the amortization table noted above.

Recent Accounting Pronouncements

In May 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2017-09, “Compensation – Stock Compensation (Topic 718) Scope of Modification Accounting.” The ASU provides guidance on the various types of changes which would trigger modification accounting for share-based payment awards. In summary, an entity would not apply modification accounting if the fair value, vesting conditions, and classification of the awards are the same immediately before and after the modification. The guidance is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods, which for the Company will be effective for the fiscal year beginning January 1, 2018. Early adoption is permitted, including adoption in any interim period for which financial statements have not yet been issued. The amendments are to be applied prospectively to an award modified on or after the adoption date, consequently the impact will be dependent on whether the Company modifies any of its share-based payment awards and the nature of such modifications

In January 2017, the FASB issued ASU No. 2017-01, “Business Combinations (Topic 805) Clarifying the Definition of a Business”. The amendments in this ASU clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The definition of a business affects many areas of accounting including acquisitions, disposals, goodwill, and consolidation. The guidance is effective for annual periods beginning after December 15, 2017, which for the Company will be effective for the fiscal year beginning January 1, 2018.  The Company does not expect that the adoption of this new standard will have a material impact on our consolidated financial statements.

In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments,” which addresses eight specific cash flow issues and is intended to reduce diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows.  The guidance is effective for interim and annual periods beginning after December 15, 2017, which for the Company will be effective for the fiscal year beginning January 1, 2018, with early adoption permitted.  The amendments in the ASU should be applied using a retrospective transition method to each period presented. The Company is currently evaluating the impact of this new standard and does not expect it to have a material impact on our consolidated financial statements.

In March 2016, the FASB issued ASU No. 2016-09, "Compensation-Stock Compensation (Topic 718) Improvements to Employee Share-Based Payment Accounting." This update simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. The update contains various amendments, each requiring a specific method of adoption, and designates whether each amendment should be adopted using a retrospective, modified retrospective, or prospective transition method. The new guidance was adopted on January 1, 2017. The impact of adoption of the update is summarized below: 

· All excess tax benefits and deficiencies that result from the difference between the deduction for tax purposes and the compensation cost recognized for financial reporting purposes related to our share-based payment awards will be recognized as income tax benefit or expense in the income statement instead of as an adjustment to additional paid-in capital.  In addition, excess tax benefits are no longer included in the calculation of diluted shares outstanding for purposes computing diluted earnings per share under the treasury stock method. The transition guidance related to these changes has been adopted by the Company on a prospective basis.

· An entity is now required to recognize excess tax benefits regardless of whether the benefit reduces taxes payable in the current period. Under the required modified retrospective transition, the Company had no cumulative-effect adjustment to retained earnings at January 1, 2017, as the Company had no previously unrecognized excess tax benefits.

· Excess tax benefits will be classified along with other income tax cash flows as an operating activity on the statement of cash flows. Prior to the update, excess tax benefits were separated from other income tax cash flows and classified as a financing activity. In fiscal year 2016 and 2015, excess tax benefits of $893 and $431, respectively, were recorded as part of financing cash inflows. The Company adopted these changes on a prospective basis.

· Cash paid by an employer when directly withholding shares for tax-withholding purposes upon vesting of a share-based payment award are now classified as a financing activity on the statement of cash flows rather than as operating cash outflows. This amendment has been adopted by the Company on a retrospective basis. As a result of the retrospective adoption of this amendment, cash outflows of $47 was reclassified in the accompanying Consolidated Statements of Cash Flows from "Changes in accounts payable, accrued expenses and other liabilities" to "Taxes paid related to net settlement upon vesting of equity awards " for the six months ended June 30, 2016.

· The threshold to qualify for equity classification of a share-based payment award would now permit withholding up to a maximum individual statutory tax rate in the applicable jurisdictions. The Company had no share-based payment awards receiving liability treatment under the prior rules. Therefore, the change from minimum up to a maximum statutory rate on tax withholdings had no impact on our consolidated financial statements and no cumulative effect adjustment was required.

· The Company has elected to continue its current policy of estimating forfeitures rather than recognizing forfeitures when they occur. 

In March 2016, the FASB issued ASU No. 2016-07, “Investments – Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting”. The amendments eliminate the requirement to retroactively adopt the equity method of accounting when a change in ownership occurs. The amendments require that the equity method investor add the cost of acquiring the additional interest in the investee to the current basis of the investment and adopt the equity method of accounting as of the date the investment becomes qualified for equity method accounting. Therefore, upon qualifying for the equity method of accounting, no retroactive adjustment of the investment is required. This new guidance was adopted on January 1, 2017 with no material impact on our consolidated financial statements.

In February 2016, the FASB issued ASU No. 2016-02 “Leases (Topic 842),” which will supersede the existing guidance for lease accounting. This new standard will require lessees to recognize leases on their balance sheets, and leaves lessor accounting largely unchanged. The new standard requires a dual approach for lessee accounting under which a lessee would account for leases as finance leases or operating leases. Both finance leases and operating leases will result in the lessee recognizing a right-of-use asset and a corresponding lease liability. For finance leases, the lessee would recognize interest expense and amortization of the right-of-use asset, and for operating leases, the lessee would recognize a straight-line total lease expense. The new guidance is effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years, which for the Company will be effective for the fiscal year beginning January 1, 2019, with early adoption permitted.  An entity will be required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. We are currently evaluating the impact of the adoption of this new standard on our consolidated financial statements.

In January 2016, the FASB issued ASU No. 2016-01, “Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities,” which requires that most equity investments be measured at fair value, with subsequent changes in fair value recognized in net income (other than those accounted for under equity method of accounting). Under the new guidance, entities will no longer be able to recognize unrealized holding gains and losses on equity securities classified today as available-for-sale in other comprehensive income, and they will no longer be able to use the cost method of accounting for equity securities that do not have readily determinable fair values. However, entities will be able to elect to record equity investments without readily determinable fair values at cost, less impairment, and plus or minus subsequent adjustments for observable price changes. The guidance for classifying and measuring investments in debt securities and loans is not impacted. The new guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017, which for the Company is effective for the fiscal year beginning January 1, 2018, with early adoption permitted. The Company does not expect that the adoption of this new standard will have a material impact on our consolidated financial statements.

In July 2015, the FASB issued ASU No. 2015-11, “Simplifying the Measurement of Inventory,” which requires all inventory to be measured at the lower of cost and net realizable value, except for inventory that is accounted for using the LIFO or the retail inventory method, which will be measured under existing accounting standards. The new guidance must be applied on a prospective basis and was adopted on January 1, 2017 with no material impact on our consolidated financial statements.

In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers (Topic 606)." This standard will supersede the revenue recognition requirements in ASC 605, "Revenue Recognition," and most industry-specific guidance. The standard requires an entity to recognize revenue in an amount that reflects the consideration to which the entity expects to receive in exchange for goods or services. In addition, during 2016, the FASB has issued ASU No. 2016-08, “Principal versus Agent Considerations,” ASU No. 2016-10, “Identifying Performance Obligations and Licensing,” ASU No. 2016-12, “Narrow Scope Improvements and Practical Expedients,” and ASU No. 2016-20, “Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers,” all of which clarify certain implementation guidance in ASU No. 2014-09.  This standard along with the subsequent clarifications issued are effective for annual reporting periods beginning after December 15, 2017, and interim periods within those fiscal years, making it effective for our fiscal year beginning January 1, 2018. Early adoption is permitted to the original effective date for annual reporting periods beginning after December 15, 2016. The standard allows an entity to either apply the requirements retrospectively to all prior periods presented, or apply the requirements in the year of adoption, through a cumulative adjustment. While we are currently evaluating the impact of adoption of this new standard and clarifying guidance on our consolidated financial statements, we believe the most significant impact will be an acceleration in the timing of revenue recognition in our licensing and WWE Studios businesses. We currently record revenues from our licensed products and WWE Studios film distribution revenues after receiving statements from the licensee and/or film distributor. Under the new revenue recognition rules, revenues will be recorded based on best estimates available in the period of sales or usage. We do not expect the impact of this change to be material on a full-year basis, but will likely impact the revenues recorded in a specific quarter as compared to previously reported periods. Based on the limited expected impacts from the standard, we intend to adopt the standard and the related modifications on January 1, 2018, using the modified retrospective approach.  Under this approach, the cumulative effect of initially applying the guidance will be reflected as an adjustment to beginning retained earnings.

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Segment Information

6 Months Ended

Jun. 30, 2017

Segment Information [Abstract]

Segment Information

3. Segment Information

The Company currently classifies its operations into ten reportable segments.  The ten reportable segments of the Company include the following: Network (which includes our pay-per-view business), Television, Home Entertainment and Digital Media, which are individual segments that comprise the Media Division; Live Events; Licensing, Venue Merchandise and WWEShop, which are individual segments that comprise the Consumer Products Division; WWE Studios, and Corporate and Other (as defined below).

The Company presents OIBDA as the primary measure of segment profit (loss).  The Company defines OIBDA as operating income before depreciation and amortization, excluding feature film and television production asset amortization and impairments, as well as the amortization of costs related to content delivery and technology assets utilized for our WWE Network.  The Company believes the presentation of OIBDA is relevant and useful for investors because it allows investors to view our segment performance in the same manner as the primary method used by management to evaluate segment performance and make decisions about allocating resources.  Additionally, we believe that OIBDA provides a meaningful representation of operating cash flows within our segments.

We record certain costs within our Corporate and Other segment since the costs benefit the Company as a whole and are not directly attributable to our other reportable segments. These costs are presented into two categories, Corporate Support and Business Support. Corporate Support expenses primarily include our corporate general and administrative functions. Business Support expenses include our sales and marketing functions, our international offices, talent development costs, including costs associated with our WWE Performance Center, and our business strategy and data analytics functions.

We do not disclose assets by segment information. In general, assets of the Company are leveraged across its reportable segments and we do not provide assets by segment information to our chief operating decision maker, as that information is not typically used in the determination of resource allocation and assessing business performance of each reportable segment.

The following tables present summarized financial information for each of the Company's reportable segments:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2017		2016		2017		2016
Net revenues:
Network	$	54,903	$	51,750	$	101,373	$	92,081
Television		66,181		56,043		130,197		116,762
Home Entertainment		3,000		3,155		5,432		6,424
Digital Media		8,047		6,489		13,782		11,886
Live Events		52,837		51,912		84,933		77,246
Licensing		9,391		8,916		29,488		29,958
Venue Merchandise		6,795		8,770		13,883		14,210
WWEShop		8,387		7,491		16,308		14,298
WWE Studios		3,550		3,289		4,832		5,232
Corporate & Other		1,495		1,179		2,802		1,997
Total net revenues	$	214,586	$	198,994	$	403,030	$	370,094
OIBDA:
Network	$	2,997	$	(5,656)	$	17,283	$	10,104
Television		31,824		27,204		62,658		55,511
Home Entertainment		910		964		1,732		2,508
Digital Media		1,491		183		986		71
Live Events		21,606		23,425		29,727		29,510
Licensing		4,456		3,953		17,850		18,224
Venue Merchandise		2,516		3,627		5,104		5,692
WWEShop		2,140		1,571		4,034		2,972
WWE Studios		(717)		439		(3,645)		2
Corporate & Other		(50,151)		(48,171)		(107,800)		(89,464)
Total OIBDA	$	17,072	$	7,539	$	27,929	$	35,130

Reconciliation of Total Operating Incometo Total OIBDA

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2017		2016		2017		2016
Total operating income	$	10,695	$	1,573	$	14,684	$	23,577
Depreciation and amortization		6,377		5,966		13,245		11,553
Total OIBDA	$	17,072	$	7,539	$	27,929	$	35,130

Geographic Information

Net revenues by major geographic region are based upon the geographic location of where our content is distributed. The information below summarizes net revenues to unaffiliated customers by geographic area:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2017		2016		2017		2016
North America	$	159,409	$	149,761	$	305,632	$	279,781
Europe/Middle East/Africa		36,620		36,142		63,205		63,748
Asia Pacific		15,542		11,245		28,516		22,834
Latin America		3,015		1,846		5,677		3,731
Total net revenues	$	214,586	$	198,994	$	403,030	$	370,094

Revenues generated from the United Kingdom, our largest international market, totaled $23,032and$24,000, and $38,712 and $40,876for the three and six months ended June 30, 2017 and 2016, respectively.  The Company’s property and equipment was almost entirely located in the United States at June 30, 2017 and 2016.

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Earnings Per Share

6 Months Ended

Jun. 30, 2017

Earnings Per Share [Abstract]

Earnings Per Share

4. Earnings Per Share

For purposes of calculating basic and diluted earnings per share, we used the following weighted average common shares outstanding (in thousands):

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2017		2016		2017		2016
Net income	$	5,085	$	862	$	5,973	$	14,747
Weighted average basic common shares outstanding		76,455		75,952		76,448		75,945
Dilutive effect of restricted and performance stock units		2,105		1,474		1,920		1,354
Dilutive effect of employee share purchase plan		3		3		6		5
Weighted average dilutive common shares outstanding		78,563		77,429		78,374		77,304
Earnings per share:
Basic	$	0.07	$	0.01	$	0.08	$	0.19
Diluted	$	0.06	$	0.01	$	0.08	$	0.19
Anti-dilutive outstanding restricted and performance stock units (excluded from per-share calculations)		—		—		2		—

The convertible notes due 2023 had no impact on diluted earnings per share during the three and six months ended June 30, 2017 since the average price of our common stock did not exceed the conversion price of $24.91 per share.

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Stock-Based Compensation

6 Months Ended

Jun. 30, 2017

Stock-Based Compensation [Abstract]

Stock-Based Compensation

5. Stock-based Compensation

Our 2016 Omnibus Incentive Plan (the “2016 Plan”) provides for equity-based incentive awards as determined by the Compensation Committee of the Board of Directors as incentives and rewards to encourage officers, employees, consultants and advisors of the Company and its affiliates and to non-employee directors of the Company to participate in our long-term success.

Restricted Stock Units

The Company grants restricted stock units ("RSUs") to officers and employees under the 2016 Plan. Stock-based compensation costs associated with our RSUs are determined using the fair market value of the Company’s common stock on the date of the grant.  These costs are recognized over the requisite service period using the graded vesting method, net of estimated forfeitures.  RSUs have a service requirement typically over a three and one half year vesting schedule and vest in equal annual installments.  We estimate forfeitures based on historical trends when recognizing compensation expense and adjust the estimate of forfeitures when they are expected to differ or as forfeitures occur. Unvested RSUs accrue dividend equivalents at the same rate as are paid on our shares of Class A common stock.  The dividend equivalents are subject to the same vesting schedule as the underlying RSUs.

The following table summarizes the RSU activity during the six months ended June 30, 2017:

	Units	Weighted- Average Grant-Date Fair Value
Unvested at January 1, 2017	356,761	$	16.68
Granted	311,223	$	19.46
Vested	(7,098)	$	19.02
Forfeited	(28,041)	$	17.18
Dividend equivalents	7,207	$	18.01
Unvested at June 30, 2017	640,052	$	18.00

Performance Stock Units

The Company grants performance stock units (“PSUs”) to officers and employees under the 2016 Plan. Stock-based compensation costs associated with our PSUsare initially determined using the fair market value of the Company’s common stock on the date the awards are approved by our Compensation Committee (service inception date). The vesting of these PSUs are subject to certain performance conditions and a service requirement of typically three and one half years. Until such time as the performance conditions are met, stock compensation costs associated with these PSUs are re-measured each reporting period based upon the fair market value of the Company's common stock and the estimated performance attainment on the reporting date. The ultimate number of PSUs that are issued to an employee is the result of the actual performance of the Company at the end of the performance period compared to the performance conditions.  Stock compensation costs for our PSUs are recognized over the requisite service period using the graded vesting method, net of estimated forfeitures. We estimate forfeitures based on historical trends when recognizing compensation expense and adjust the estimate of forfeitures when they are expected to differ or as forfeitures occur.  Unvested PSUs accrue dividend equivalents once the performance conditions are met at the same rate as are paid on our shares of Class A common stock.  The dividend equivalents are subject to the same vesting schedule as the underlying PSUs.

The following table summarizes the PSU activity during the six months ended June 30, 2017:

	Units	Weighted- Average Grant-Date Fair Value
Unvested at January 1, 2017	2,161,311	$	16.39
Granted	550,460	$	20.37
Achievement adjustment	282,662	$	20.96
Forfeited	(33,686)	$	19.50
Dividend equivalents	27,364	$	17.87
Unvested at June 30, 2017	2,988,111	$	18.32

During thesix months ended June 30, 2017,  we granted 550,460 PSUs which are subject to certain performance conditions.

During the year ended December 31, 2016, we granted 956,730 PSUs,  which were subject to performance conditions.  During the first quarter of2017,  it was determined that the performance conditions related to these PSUs were exceeded, which resulted in an increase of 282,662 PSUs in 2017 relating to the initial 2016 PSU grant.

Stock-based compensation costs, which includes costs related to RSUs, PSUs and the Company's qualified employee stock purchase plan, totaled $6,167 and $6,429, and $12,782 and $9,589for thethree and six months ended June 30, 2017 and 2016, respectively.

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Property And Equipment

6 Months Ended

Jun. 30, 2017

Property And Equipment [Abstract]

Property And Equipment

6. Property and Equipment

Property and equipment consisted of the following:

	As of
	June 30,		December 31,
	2017		2016
Land, buildings and improvements	$	131,383	$	130,330
Equipment		101,038		136,114
Corporate aircraft		31,277		31,277
Vehicles		244		244
		263,942		297,965
Less: accumulated depreciation and amortization		(132,390)		(165,334)
Total	$	131,552	$	132,631

Depreciation expense for property and equipment totaled $5,937 and$5,655, and $12,366 and $10,936for thethree and six months ended June 30, 2017 and 2016, respectively.

During the second quarter of 2017, the Company removed fully depreciated assets, primarily television production equipment, that were no longer in use and reduced property and equipment cost by $43,297, with a corresponding reduction to accumulated depreciation. This adjustment did not have an impact on our consolidated financial statements.

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Feature Film Production Assets, Net

6 Months Ended

Jun. 30, 2017

Feature Film Production Assets, Net [Abstract]

Feature Film Production Assets, Net

7. Feature Film Production Assets, Net

Feature film production assets consisted of the following:

	As of
	June 30,		December 31,
	2017		2016
In release	$	17,721	$	13,892
Completed but not released		3,518		8,881
In production		6,748		3,387
In development		1,130		977
Total	$	29,117	$	27,137

Approximately 31% of “In release” film production assets are estimated to be amortized over the next 12 months, and approximately 69% of “In release” film production assets are estimated to be amortized over the next three years. We anticipate amortizing approximately80% of our "In release" film production assets within four years as we receive revenues associated with television distribution of our licensed films. During thethree and six months ended June 30, 2017 and 2016, we amortized $1,988 and $1,595, and $2,641 and $2,701, respectively, of feature film production assets.

During the six months ended June 30, 2017, we released  two feature films via theatrical distribution, The Resurrection of Gavin Stone and Sleight, and three films direct to DVD, Surf’s Up 2: WaveMania,  The Jetsons & WWE: Robo-WrestleMania! and The Marine 5: Battleground. These five films comprised $6,628 of our “In release” feature film assets as of June 30, 2017.

We currently have three films designated as “Completed but not released” and have two films “In production.” We also have capitalized certain script development costs and pre-production costs for various other film projects designated as “In development.”  Capitalized script development costs are evaluated at each reporting period for impairment and to determine if a project is deemed to be abandoned. We did not record any impairment charges related to abandoned projects during the periods presented.

Unamortized feature film production assets are evaluated for impairment each reporting period. We review and revise estimates of ultimate revenue and participation costs at each reporting period to reflect the most current information available. If estimates for a film’s ultimate revenue and/or costs are revised and indicate a significant decline in a film’s profitability or if events or circumstances change that indicate we should assess whether the fair value of a film is less than its unamortized film costs, we calculate the film's estimated fair value using a discounted cash flows model. If fair value is less than unamortized cost, the film asset is written down to fair value.

We recorded impairment charges of $1,084 and $3,162 related to our feature films during thethree and six months ended June 30, 2017, respectively. These impairment charges represent the excess of the recorded net carrying value over the estimated fair value. We did not record any impairment charges during the three and six months ended June 30, 2016 related to our feature films.

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Television Production Assets, Net

6 Months Ended

Jun. 30, 2017

Television Production Assets, Net [Abstract]

Television Production Assets, Net

8. Television Production Assets, Net

Television production assets consisted of the following:

	As of
	June 30,		December 31,
	2017		2016
In release	$	3,633	$	12,198
In production		5,775		310
Total	$	9,408	$	12,508

Television production assets consist primarily of non-live event episodic television series we have produced for distribution through a variety of platforms including on our WWE Network. Amounts capitalized include development costs, production costs, production overhead and employee salaries. Costs to produce episodic programming for television or distribution on WWE Network are amortized in the proportion that revenues bear to management's estimates of the ultimate revenue expected to be recognized from exploitation, exhibition or sale.

Amortization of television production assets consisted of the following:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2017		2016		2017		2016
WWE Network programming	$	510	$	7,396	$	3,119	$	8,729
Television programming		4,595		2,042		7,602		8,840
Total	$	5,105	$	9,438	$	10,721	$	17,569

Costs to produce our live event programming are expensed when the event is first broadcast, and are not included in the capitalized costs or amortization tables noted above.

Unamortized television production assets are evaluated for impairment each reporting period. If conditions indicate a potential impairment, and the estimated future cash flows are not sufficient to recover the unamortized asset, the asset is written down to fair value. In addition, if we determine that a program will not likely air, we will expense the remaining unamortized asset. During the three and six months ended June 30, 2017 and 2016, we did not record any impairments related to our television production assets.

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Investment Securities And Short-Term Investments

6 Months Ended

Jun. 30, 2017

Investment Securities And Short-Term Investments [Abstract]

Investment Securities And Short-Term Investments

9. Investment Securities and Short-Term Investments

Investment Securities

Included within Investment Securities are the following:

	As of
	June 30,		December 31,
	2017		2016
Equity method investment	$	14,584	$	14,592
Cost method investments		10,503		10,365
Total investment securities	$	25,087	$	24,957

Equity Method Investment

In March 2015, WWE and Authentic Brands Group (“ABG”) formed a joint venture to re-launch an apparel and lifestyle brand, Tapout (the "Brand"). ABG agreed to contribute certain intangible assets for the Brand, licensing contracts, systems, and other administrative functions to Tapout.  The Company agreed to contribute promotional and marketing services related to the venture for a period of at least five years in exchange for a 50% interest in the profits and losses and voting interest in Tapout. The Company valued its initial investment of $13,800 based on the fair value of the existing licensing contracts contributed by ABG. To the extent that Tapout records income or losses, we record our share proportionate to our ownership percentage, and any dividends received reduce the carrying amount of the investment. Net equity method earnings from Tapout are included as a component of Investment income, net on the Consolidated Statements of Operations. Net dividends received from Tapout are reflected on the Consolidated Statements of Cash Flows as a component of Equity in earnings of affiliate, net of dividends received. The Company did not record any impairment charges related to our investment in Tapout during the three and six months ended June 30, 2017 and 2016

The following table presents the net equity method earnings from Tapout and net dividends received from Tapout for the periods presented:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2017		2016		2017		2016
Net equity method earnings from Tapout	$	190	$	415	$	645	$	837
Net dividends received from Tapout		(315)		(453)		(668)		(747)
Equity in earnings of affiliate, net of dividends received	$	(125)	$	(38)	$	(23)	$	90

As promotional services are provided to Tapout, we record revenue and reduce the existing service obligation. During the three and six months ended June 30, 2017 and 2016, we recorded revenues of $672 and $947, and $1,394 and$1,705, respectively, related to our fulfillment of our promotional services obligation to Tapout. The remaining service obligation as of June 30, 2017 was $7,083, and was included in Deferred Income and Non-Current Deferred Income for $2,760 and $4,323, respectively.

Our known maximum exposure to loss approximates the remaining service obligation to Tapout, which was $7,083 as of June 30, 2017. Creditors of Tapout do not have recourse against the general credit of the Company.

Cost Method Investments

The increase in the cost method investment balance since December 31, 2016 was primarily due to the addition of a new cost method investment to our portfolio. We evaluate our cost method investments for impairment if factors indicate that a significant decrease in value has occurred.  The Company did not record any impairment charges on our cost method investments during thethree and six months ended June 30, 2017 and 2016.

Short-Term Investments

Short-term investments measured at fair value consisted of the following:

	As of June 30, 2017								As of December 31, 2016
			Gross Unrealized								Gross Unrealized
	Amortized						Fair		Amortized						Fair
	Cost		Gain		(Loss)		Value		Cost		Gain		(Loss)		Value
Corporate bonds	$	50,259	$	3	$	(90)	$	50,172	$	40,183	$	9	$	(58)	$	40,134
U.S. Treasury securities		47,901		13		(78)		47,836		—		—		—		—
Municipal bonds		19,459		15		(13)		19,461		15,075		—		(45)		15,030
Government agency bonds		12,020		—		(41)		11,979		—		—		—		—
Total	$	129,639	$	31	$	(222)	$	129,448	$	55,258	$	9	$	(103)	$	55,164

We classify the investments listed in the above table as available-for-sale securities.  Such investments consist primarily of corporate bonds, U.S. Treasury securities, municipal bonds, including pre-refunded municipal bonds, and government agency bonds. These investments are stated at fair value as required by the applicable accounting guidance. Unrealized gains and losses on such securities are reflected, net of tax, as other comprehensive income (loss) in the Consolidated Statements of Comprehensive Income (Loss).

Our corporate bonds, U.S. Treasury securities, municipal bonds and government agency bonds are included in Short-term investments, net on our Consolidated Balance Sheets. Realized gains and losses on investments are included in earnings and are derived using the specific identification method for determining the cost of securities sold. As of June 30, 2017, contractual maturities of these short-term investments are as follows:

	Maturities
Corporate bonds	3 months - 3 years
U.S. Treasury securities	3 months - 3 years
Municipal bonds	1 month - 3 years
Government agency bonds	8 months - 5 years

The following table summarizes the short-term investment activity:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2017		2016		2017		2016
Proceeds from sales and maturities of short-term investments	$	2,640	$	400	$	13,660	$	400
Purchases of short-term investments	$	27,411	$	—	$	88,696	$	—

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Fair Value Measurement

6 Months Ended

Jun. 30, 2017

Fair Value Measurement [Abstract]

Fair Value Measurement

10. Fair Value Measurement

Fair value is determined based on the exchange price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. Fair value is a market-based measurement based on assumptions that market participants would use to price the asset or liability. Accordingly, the framework considers markets or observable inputs as the preferred source of value followed by assumptions based on hypothetical transactions, in the absence of market inputs.  The fair value should be calculated based on assumptions that market participants would use in pricing the asset or liability, not on assumptions specific to the entity.  In addition, the fair value of assets and liabilities should include consideration of non-performance risk, including the Company's own credit risk.

Additionally, the accounting guidance establishes a three-level hierarchy that ranks the quality and reliability of information used in developing fair value estimates.  The hierarchy gives the highest priority to quoted prices in active markets and the lowest priority to unobservable data.  In cases where two or more levels of inputs are used to determine fair value, a financial instrument's level is determined based on the lowest level input that is considered significant to the fair value measurement in its entirety. The three input levels of the fair value hierarchy are summarized as follows:

Level 1-	Observable inputs such as quoted prices in active markets for identical assets or liabilities;
Level 2-	Inputs other than quoted prices in active markets for similar assets and liabilities that are directly or indirectly observable; or
Level 3-	Unobservable inputs, such as discounted cash flow models or valuations, in which little or no market data exists.

The following assets are required to be measured at fair value on a recurring basis and the classification within the hierarchy was as follows:

	Fair Value at June 30, 2017								Fair Value at December 31, 2016
	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
Corporate bonds	$	50,172	$	—	$	50,172	$	—	$	40,134	$	—	$	40,134	$	—
U.S. Treasury securities		47,836		—		47,836		—		—		—		—		—
Municipal bonds		19,461		—		19,461		—		15,030		—		15,030		—
Government agency bonds		11,979		—		11,979		—		—		—		—		—
Total	$	129,448	$	—	$	129,448	$	—	$	55,164	$	—	$	55,164	$	—

Certain financial instruments are carried at cost on the Consolidated Balance Sheets, which approximates fair value due to their short-term, highly liquid nature. The carrying amounts of cash and cash equivalents, money market accounts, accounts receivable, and accounts payable approximate fair value because of the short-term nature of such instruments. The carrying amount of debt outstanding pursuant to our Film Credit Facility approximates fair value as interest rates on these instruments approximate current market rates.

We have classified our investment in corporate bonds, U.S. Treasury securities, municipal bonds and government agency bonds within Level 2, as their valuation requires quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and/or model-based valuation techniques for which all significant inputs are observable in the market or can be corroborated by observable market data. The corporate bonds, U.S. Treasury securities, municipal bonds and government agency bonds are valued based on model-driven valuations. A third party service provider assists the Company with compiling market prices from a variety of industry standard data sources, security master files from large financial institutions and other third-party sources that are used to value our corporate bond, U.S. Treasury securities, municipal bond and government agency bond investments. The Company did not have any transfers between Level 1, Level 2, and Level 3 fair value investments during the periods presented.

The fair value measurements of our cost method investments are classified within Level 3 as significant unobservable inputs are used to measure the fair value of these assets due to the absence of quoted market prices and inherent lack of liquidity. Significant unobservable inputs include variables such as near-term prospects of the investees, recent financing activities of the investees, and the investees' capital structure, as well as other economic variables, which reflect assumptions market participants would use in pricing these assets. Our investments are recorded at fair value only if an impairment charge is recognized. The Company did not record any impairment charges on these assets during thethree and six months ended June 30, 2017 and 2016. 

The Company's long lived property and equipment, feature film and television production assets are required to be measured at fair value on a non-recurring basis if it is determined that indicators of impairment exist. These assets are recorded at fair value only when an impairment is recognized. The Company did not record any impairment charges on long lived property and equipment and television production assets during the three and six months ended June 30, 2017 and 2016. The Company classifies these assets as Level 3 within the fair value hierarchy due to significant unobservable inputs.

During thesix months ended June 30, 2017, the Company recorded impairment charges of $3,162 on feature film production assets based upon fair value measurements of $2,697. See Note 7, Feature Film Production Assets, Net, for further discussion.We did not record any impairment charges on these assets during the three and six months ended June 30, 2016. The Company classifies these assets as Level 3 within the fair value hierarchy due to significant unobservable inputs.The Company utilizes a discounted cash flows model to determine the fair value of these impaired films where indicators of impairment exist. The significant unobservable inputs to this model are the Company’s expected cash flows for the film, including projected home video sales, pay and free TV sales and international sales, and a discount rate of 13% that we estimate market participants would seek for bearing the risk associated with such assets. The Company utilizes an independent third party valuation specialist who assists us in gathering the necessary inputs used in our model.

The fair value of the Company’s long-term debt, consisting of a mortgage loan assumed in connection with a building purchase and a promissory note secured by the Company's Corporate Jet, is estimated based upon quoted price estimates for similar debt arrangements. At June 30, 2017, the face amount of the mortgage loan and promissory note approximates their fair value.

As of June 30, 2017 and December 31, 2016, the calculation of the fair value of the debt component of the Company’s convertible debt required the use of Level 3 inputs, and was determined by calculating the fair value of similar debt without the associated conversion feature, using a borrowing rate of approximately 6.40%:

	June 30, 2017				December 31, 2016
	Fair Value		Carrying Value (1)		Fair Value		Carrying Value (1)
Convertible senior notes	$	181,454	$	180,597	$	166,702	$	166,050

(1) The carrying value of the convertible debt instrument presented in the table above represents the face value of the convertible note less unamortized debt discount.

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Accounts Payable And Accrued Expenses

6 Months Ended

Jun. 30, 2017

Accounts Payable And Accrued Expenses [Abstract]

Accounts Payable And Accrued Expenses

11. Accounts Payable and Accrued Expenses

Accounts payable and accrued expenses consisted of the following:

	As of
	June 30,		December 31,
	2017		2016
Trade related	$	8,673	$	10,118
Staff related		8,908		7,494
Management incentive compensation		9,737		21,542
Talent related		5,748		6,969
Accrued WWE Network related expenses		2,565		2,120
Accrued event and television production		6,773		7,031
Accrued legal and professional		5,423		1,952
Accrued purchases of property and equipment		1,993		2,940
Accrued other		10,576		10,194
Total	$	60,396	$	70,360

Accrued other includes accruals for our international and licensing business activities, as well as other miscellaneous accruals, none of which categories individually exceeds 5% of current liabilities. The decrease in accrued expenses is primarily due to the payout of the Company’s fiscal 2016 bonus, partially offset by an increase in accrued legal and professional fees primarily related to non-recurring legal matters and other contractual obligations.

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Long-Term Debt And Credit Facilities

6 Months Ended

Jun. 30, 2017

Long-Term Debt And Credit Facilities [Abstract]

Long-Term Debt And Credit Facilities

12. Long-Term Debt and Credit Facilities

Long-Term Debt

Included within Long-Term Debt are the following:

	As of
	June 30,		December 31,
	2017		2016
Current portion of long-term debt:
Film Credit Facility	$	2,642	$	1,583
Aircraft financing		4,588		4,538
Total current portion of long-term debt		7,230		6,121
Long-term debt:
Aircraft financing	$	10,290	$	12,596
Mortgage		23,000		23,000
Total long-term debt		33,290		35,596
Total	$	40,520	$	41,717

Mortgage

In September 2016, the Company acquired real property and assumed future obligations under a loan agreement, dated June 8, 2015, in the principal amount of $23,000, which loan is secured by a mortgage on the property. The loan bears interest at the rate of 4.50% per annum and requires monthly interest only payments of $86 until June 2018 and interest and principal payments of $117 per month thereafter, with a balloon payment on maturity in July 2025. There is a significant yield maintenance premium for prepayments. Pursuant to the loan agreement, since the assets of WWE Real Estate, a subsidiary of the Company, represent collateral for the underlying mortgage, these assets will not be available to satisfy debts and obligations due to any other creditors of the Company.

Aircraft Financing

In August 2013, the Company entered into a $31,568 promissory note (the “Aircraft Note”) with Citizens Asset Finance, Inc., for the purchase of a 2007 Bombardier Global 5000 aircraft and refurbishments.  The Aircraft Note bears interest at a rate of 2.18% per annum, is payable in monthly installments of $406, inclusive of interest, and has a final maturity of August 7, 2020.  The Aircraft Note is secured by a first priority perfected security interest in the purchased aircraft.

Credit Facilities

Revolving Credit Facility

In December 2016, in connection with the issuance of the Notes, as defined below, we entered into an amended and restated $100,000 senior unsecured revolving credit facility with a syndicated group of banks, with JPMorgan Chase Bank, N.A. acting as Administrative Agent (the “Revolving Credit Facility”). The Revolving Credit Facility has a maturity date of July 29, 2021. Applicable interest rates for the borrowings under the Revolving Credit Facility are based on the Company's current consolidated leverage ratio.  As of June 30, 2017, the LIBOR-based rate plus margin was 2.55%. The Company is required to pay a commitment fee calculated at a rate per annum of 0.30% on the average daily unused portion of the Revolving Credit Facility. Under the terms of the Revolving Credit Facility, the Company is subject to certain financial covenants and restrictions, including restrictions on our ability to pay dividends and limitations with respect to our indebtedness, liens, mergers and acquisitions, dispositions of assets, investments, capital expenditures and transactions with affiliates.

As of June 30, 2017, the Company was in compliance with the Revolving Credit Facility, and had available debt capacity under the terms of the Revolving Credit Facility of $100,000. As of June 30, 2017 and December 31, 2016, there were no amounts outstanding under the Revolving Credit Facility.

Film Credit Facility

In May 2015, two domestic subsidiaries of the Company, WWE Studios Finance Corporation and WWE Studios Finance Holding Corporation (collectively, the “Loan Parties”) entered into a $35,000 secured asset based revolving credit agreement, as amended, with Bank of America, N.A., as Administrative Agent and lender (the “Film Credit Facility”).  Funds under the Film Credit Facility can be used for, among other things, development of films and television projects. Under the Film Credit Facility, the WWE Studios Finance Corporationis allowed to borrow amounts of up to an aggregate of $35,000 based on a borrowing base formula.  As of June 30, 2017, borrowings of $2,642remain outstanding under the Film Credit Facility. The Company has the intent and ability to repay the amounts outstanding under the Film Credit Facility within one year, and as such, the outstanding balance as of June 30, 2017 has been classified as a current portion of long-debt within our Consolidated Balance Sheets. The Film Credit Facility has a five-year term, and it is secured by substantially all the assets of the Loan Parties. The applicable interest rate for borrowings under the Film Credit Facility is a LIBOR-based rate plus 2.50% on LIBOR-based borrowings or an alternate base rate plus 1.50% for alternate base rate borrowings, in all cases subject to adjustment downward based on the status of film projects.  As of June 30, 2017, the LIBOR-based rate plus margin was 3.80%. The Loan Parties are required to pay certain fees, including a commitment fee, calculated at a rate per annum of 0.50% on the average daily unutilized portion of the Film Credit Facility.  Under the terms of the Film Credit Facility, the Loan Parties are subject to certain financial covenants and restrictions, including limitations with respect to indebtedness, liens, mergers and acquisitions, dispositions of assets, investments, capital expenditures, and transactions with affiliates.  As of June 30, 2017, the Company was in compliance with the Film Credit Facility,  and had $7,265of available capacity under the terms of the Film Credit Facility.

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Convertible Debt

6 Months Ended

Jun. 30, 2017

Convertible Debt [Abstract]

Convertible Debt

13. Convertible Debt

In December 2016, we issued $200,000 aggregate principal amount of 3.375% convertible senior notes due 2023 and subsequently in January 2017, we issued an additional $15,000 aggregate principal amount of such convertible notes through the partial exercise of an over-allotment option (collectively, the “Notes”).  The sale of the Notes in December 2016 and January 2017 resulted in $193,899 and $14,534 in net proceeds, respectively, to WWE after deducting the initial purchasers’ discount and the estimated offering expenses. We used $36,658 of the net proceeds from the sale of the Notes to pay the cost of the convertible bond hedges, as described below, after such cost was partially offset by the proceeds to us from the sale of warrants in the warrant transactions, as described below. The remaining proceeds will be used to support the execution of our long-term growth strategy and for general corporate purposes.

The Notes are governed by an Indenture between us, as issuer, and U.S. Bank, National Association, as trustee. The Notes will pay interest semi-annually in arrears on June 15 and December 15 of each year.

Upon conversion of the Notes, we will pay or deliver, as the case may be, cash, shares of our Class A common stock or a combination of cash and shares of Class A common stock, at our election, at a conversion rate of approximately 40.1405 shares of common stock per $1 principal amount of the Notes, which corresponds to an initial conversion price of approximately $24.91 per share of our Class A common stock. At any time, prior to the close of business on the business day immediately preceding June 15, 2023, the Notes will be convertible under the following circumstances:

a) During any calendar quarter beginning after the calendar quarter ending on December 31, 2016 (and only during such calendar quarter), if the last reported sale price of our Class A common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on the last trading day of the immediately preceding quarter is greater than or equal to 130% of the conversion price on each applicable trading day;

b) During the 5 business day period after any 10 consecutive trading day period (the “measurement period”) in which the trading price per $1 principal amount of Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of our Class A common stock and the conversion rate on each such trading day;

c) Upon the occurrence of specified corporate events; or

d) On or after June 15, 2023 until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert all or any portion of their Notes, in multiples of $1 principal amount, at the option of the holder regardless of the foregoing circumstances.

As of June 30, 2017, the Notes are not yet convertible.

As a result of our cash conversion option, we separately accounted for the value of the embedded conversion option as a debt discount.  The value of the embedded conversion option was determined based on the estimated fair value of the debt without the conversion feature, which was determined using an expected present value technique (income approach) to estimate the fair value of similar nonconvertible debt; the debt discount is being amortized as additional non-cash interest expense over the term of the Notes using the effective interest method with an effective interest rate of 6.40% per annum. The equity component is not remeasured as long as it continues to meet the conditions for equity classification. In accounting for the transaction costs related to the Note issuances, we allocated the total amount of offering costs incurred to the debt and equity components based on their relative values. Offering costs attributable to the debt component, totaling $5,454, are being amortized as non-cash interest expense over the term of the Notes, and offering costs attributable to the equity component, totaling $1,110, were netted with the equity component in stockholders' equity.

The Notes consisted of the following components:

	As of
	June 30,		December 31,
	2017		2016
Debt component:
Principal	$	215,000	$	200,000
Less: Unamortized debt discount		(34,403)		(33,950)
Less: Unamortized debt issuance costs		(5,168)		(5,042)
Net carrying amount	$	175,429	$	161,008
Equity component (1)	$	35,547	$	33,060

(1) Recorded in the Consolidated Balance Sheets within additional paid-in capital, net of the $1,110 issuance costs in equity.

The following table sets forth total interest expense recognized related to the Notes:

	Three Months Ended		Six Months Ended
	June 30,		June 30,
	2017		2017
3.375% contractual coupon	$	1,814	$	3,604
Amortization of debt discount		1,068		2,104
Amortization of debt issuance costs		137		269
Interest expense	$	3,019	$	5,977

Convertible Note Hedge

In connection with the pricing of the Notes, and in order to reduce the potential dilution to our common stock and/or offset cash payments due upon conversion of the Notes, in December 2016 and January 2017, we entered into convertible note hedge transactions with respect to our Class A common stock (the “Note Hedge”) with three separate counterparties. The Note Hedge transactions in December 2016 and January 2017 resulted in an aggregate payment to the Note Hedge counterparties of $34,100 and $2,558, respectively.  The Note Hedge transactions cover approximately 8.03 million shares of our Class A common stock related to the December 2016 issuance and 602,107 shares of our Class A common stock related to the January 2017 issuance, and are exercisable upon conversion of the Notes.  The Note Hedge will expire on December 15, 2023, unless earlier terminated. The Note Hedge transactions have been accounted for as part of additional paid-in capital.

Warrant Transactions

In connection with entering into the Note Hedge transactions described above, we also concurrently entered into separate warrant transactions (the “Warrants”), to sell warrants to acquire approximately 8.03 million shares of our Class A common stock in connection with the Note Hedge transaction in December 2016 and 602,107 shares of our Class A common stock in connection with the Note Hedge transaction in January 2017, both at an initial strike price of approximately $31.89 per share, which represents a premium of approximately 60.0% over the last reported sale price of our Class A common stock of $19.93 on December 12, 2016 (initial issuance date of the Notes). The Warrant transactions in December 2016 and January 2017 resulted in aggregate proceeds received of $19,460 and $1,460, respectively, from the sale of the Warrants to the counterparties. The Warrants transactions have been accounted for as part of additional paid-in capital.

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Concentration Of Credit Risk

6 Months Ended

Jun. 30, 2017

Concentration Of Credit Risk [Abstract]

Concentration Of Credit Risk

14. Concentration of Credit Risk

We continually monitor our position with, and the credit quality of, the financial institutions that are counterparties to our financial instruments. Our accounts receivable relate principally to a limited number of distributors, including our WWE Network, television, pay-per-view, and home video distributors, and licensees that produce consumer products containing our intellectual property. We closely monitor the status of receivables with these customers and maintain allowances for anticipated losses as deemed appropriate. At June 30, 2017, our three largest receivable balances from customers were 19%,  17% and 12%ofour gross accounts receivable. At December 31, 2016,  our two largest receivable balances from customers 17%and 15%of our gross accounts receivable. No other customers individually exceeded 10% of our gross accounts receivable balance.

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Income Taxes

6 Months Ended

Jun. 30, 2017

Income Taxes [Abstract]

Income Taxes

15. Income Taxes

As of June 30, 2017, we had $32,568 ofdeferred tax assets, net, included in non-current income tax assets in our Consolidated Balance Sheets.  As of December 31, 2016, we had $32,556 of deferred tax assets, net, included in non-current income tax assets in our Consolidated Balance Sheets.

The Company considers all available evidence, both positive and negative, to determine whether, based on the weight of that evidence, a valuation allowance is required to reduce the net deferred tax assets to the amount that is more likely than not to be realized in future periods. The Company believes that based on past performance, expected future taxable income and prudent and feasible tax planning strategies, it is more likely than not that the net deferred tax assets will be realized. Changes in these factors may cause us to increase our valuation allowance on deferred tax assets, which would impact our income tax expense in the period we determine that these factors have changed.

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Film And Television Production Incentives

6 Months Ended

Jun. 30, 2017

Film And Television Production Incentives [Abstract]

Film And Television Production Incentives

16. Film and Television Production Incentives

The Company has access to various governmental programs that are designed to promote film and television production within the United States of America and certain international jurisdictions.  Incentives earned with respect to expenditures on qualifying film production activities and capital projects are recorded as an offset to the related asset balances. Incentives earned with respect to television and other production activities are recorded as an offset to production expenses. The Company recognizes these benefits when we have reasonable assurance regarding the realizable amount of the incentives.

We recorded the following incentives during thethree and six months ended June 30, 2017 and 2016:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2017		2016		2017		2016
Television production incentives	$	—	$	—	$	—	$	2,530
Feature film production incentives		23		588		483		1,412
Total	$	23	$	588	$	483	$	3,942

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Commitments And Contingencies

6 Months Ended

Jun. 30, 2017

Commitments And Contingencies [Abstract]

Commitments And Contingencies

17. Commitments and Contingencies

Legal Proceedings

On October 23, 2014, a lawsuit was filed in the U. S. District Court for the District of Oregon, entitled William Albert Haynes III, on behalf of himself and others similarly situated, v. World Wrestling Entertainment, Inc.  This complaint was amended on January 30, 2015 and alleges that the Company ignored, downplayed, and/or failed to disclose the risks associated with traumatic brain injuries suffered by WWE’s performers and seeks class action status.  On March 31, 2015, the Company filed a motion to dismiss the first amended class action complaint in its entirety or, if not dismissed, to transfer the lawsuit to the U.S. District Court for the District of Connecticut.  Without addressing the merits of the Company's motion to dismiss, the Court transferred the case to Connecticut on June 25, 2015.  The plaintiffs filed an objection to such transfer, which was denied on July 27, 2015.  On January 16, 2015, a second lawsuit was filed in the U. S. District Court for the Eastern District of Pennsylvania, entitled Evan Singleton and Vito LoGrasso, individually and on behalf of all others similarly situated, v. World Wrestling Entertainment, Inc., alleging many of the same allegations as Haynes.  On February 27, 2015, the Company moved to transfer venue to the U.S. District Court for the District of Connecticut due to forum-selection clauses in the contracts between WWE and the plaintiffs and that motion was granted on March 23, 2015.  The plaintiffs filed an amended complaint on May 22, 2015 and, following a scheduling conference in which the court ordered the plaintiffs to cure various pleading deficiencies, the plaintiffs filed a second amended complaint on June 15, 2015.  On June 29, 2015, WWE moved to dismiss the second amended complaint in its entirety.   On April 9, 2015, a third lawsuit was filed in the U. S. District Court for the Central District of California, entitled Russ McCullough, a/k/a “Big Russ McCullough,” Ryan Sakoda, and Matthew R. Wiese a/k/a “Luther Reigns,” individually and on behalf of all others similarly situated, v. World Wrestling Entertainment, Inc., asserting similar allegations to Haynes.  The Company again moved to transfer the lawsuit to Connecticut due to forum-selection clauses in the contracts between WWE and the plaintiffs, which the California court granted on July 10, 2015.  On September 21, 2015, the plaintiffs amended this complaint and, on November 16, 2015, the Company moved to dismiss the amended complaint.  Each of these suits seeks unspecified actual, compensatory and punitive damages and injunctive relief, including ordering medical monitoring.  The Haynes and McCullough cases purport to be class actions.  On February 18, 2015, a lawsuit was filed in Tennessee state court and subsequently removed to the U.S. District Court for the Western District of Tennessee, entitled Cassandra Frazier, individually and as next of kin to her deceased husband, Nelson Lee Frazier, Jr., and as personal representative of the Estate of Nelson Lee Frazier, Jr. Deceased, v. World Wrestling Entertainment, Inc.  A similar suit was filed in the U. S. District Court for the Northern District of Texas entitled Michelle James, as mother and next friend of Matthew Osborne, minor child, and Teagan Osborne, a minor child v. World Wrestling Entertainment, Inc. These lawsuits contain many of the same allegations as the other lawsuits alleging traumatic brain injuries and further allege that the injuries contributed to these former talents’ deaths.  WWE moved to transfer the Frazier and Osborne lawsuits to the U.S. District Court for the District of Connecticut based on forum-selection clauses in the decedents’ contracts with WWE, which motions were granted by the respective courts.  On November 23, 2015, amended complaints were filed in Frazier and Osborne, which the Company moved to dismiss on December 16, 2015 and December 21, 2015, respectively. On November 10, 2016, the Court granted the Company’s motions to dismiss the Frazier and Osborne lawsuits in their entirety. On June 29, 2015, the Company filed a declaratory judgment action in the U. S. District Court for the District of Connecticut entitled World Wrestling Entertainment, Inc. v. Robert Windham, Thomas Billington, James Ware, Oreal Perras and various John and Jane Does seeking a declaration against these former performers that their threatened claims related to alleged traumatic brain injuries and/or other tort claims are time-barred.  On September 21, 2015, the defendants filed a motion to dismiss this complaint, which the Company opposed.  The Court previously ordered a stay of discovery in all cases pending decisions on the motions to dismiss.  On January 15, 2016, the Court partially lifted the stay and permitted discovery only on three issues in the case involving Singleton and LoGrasso. Such discovery was completed by June 1, 2016. On March 21, 2016, the Court issued a memorandum of decision granting in part and denying in part the Company’s motions to dismiss the Haynes, Singleton/LoGrasso, and McCullough lawsuits.  The Court granted the Company’s motions to dismiss the Haynes and McCullough lawsuits in their entirety and granted the Company’s motion to dismiss all claims in the Singleton/LoGrasso lawsuit except for the claim of fraud by omission.  On March 22, 2016, the Court issued an order dismissing the Windham lawsuit based on the Court’s memorandum of decision on the motions to dismiss. On April 4, 2016, the Company filed a motion for reconsideration with respect to the Court’s decision not to dismiss the fraud by omission claim in the Singleton/LoGrasso lawsuit and, on April 5, 2016, the Company filed a motion for reconsideration with respect to the Court dismissal of the Windham lawsuit.  On July 21, 2016, the Court denied the Company’s motion in the Singleton/LoGrasso lawsuit and granted in part the Company’s motion in the Windham lawsuit. On April 20, 2016, the plaintiffs filed notices of appeal of the Haynes and McCullough lawsuits.  On April 27, 2016, the Company moved to dismiss the appeals for lack of appellate jurisdiction, which motions were granted and the appeals were dismissed with leave to appeal upon the resolution of all of the consolidated cases.  The Company has filed a motion for summary judgment on the sole remaining claim in the Singleton/LoGrasso lawsuit. Lastly, on July 18, 2016, a lawsuit was filed in the U.S. District Court for the District of Connecticut, entitled Joseph M. Laurinaitis, et al. vs. World Wrestling Entertainment, Inc. and Vincent K. McMahon, individually and as the trustee of certain trusts.  This lawsuit contains many of the same allegations as the other lawsuits alleging traumatic brain injuries and further alleges, among other things, that the plaintiffs were misclassified as independent contractors rather than employees denying them, among other things, rights and benefits under the Occupational Safety and Health Act (OSHA), the National Labor Relations Act (NLRA), the Family and Medical Leave Act (FMLA), federal tax law, and various state Worker’s Compensation laws. This lawsuit also alleges that the booking contracts and other agreements between the plaintiffs and the Company are unconscionable and should be declared void, entitling the plaintiffs to certain damages relating to the Company’s use of their intellectual property. The lawsuit alleges claims for violation of RICO, unjust enrichment, and an accounting against Mr. McMahon.  The Company and Mr. McMahon moved to dismiss this complaint on October 19, 2016.  On November 9, 2016, the Laurinaitis plaintiffs filed an amended complaint.  On December 23, 2016, the Company and Mr. McMahon moved to dismiss the amended complaint. The Company believes all claims and threatened claims against the Company in these various lawsuits are being prompted by the same plaintiffs’ lawyer and are without merit.  The Company intends to continue to defend itself against these lawsuits vigorously. 

On August 9, 2016, a lawsuit was filed in the U.S. District Court for the District of Connecticut entitled Marcus Bagwell, individually and on behalf of all others similarly situated v. World Wrestling Entertainment, Inc.  The lawsuit alleges claims for breach of contract, breach of fiduciary duty, unjust enrichment and violations of the Connecticut Unfair Trade Practices Act, C.G.S. §42-110a, et seq., principally arising from WWE’s alleged failure to pay royalties for streaming video on WWE Network. On September 7, 2016, a motion for leave to amend was filed along with a proposed amended complaint that, among other things, sought to add Scott Levy as an individual plaintiff and WCW, Inc. as a defendant.  On November 4, 2016, the Court granted plaintiffs’ motion for leave to amend and plaintiffs filed their amended complaint on November 7, 2016. On December 2, 2016, the Company moved to dismiss the amended complaint. On May 5, 2017, the Court granted in part and denied in part the Company’s motion to dismiss. The Court dismissed plaintiff’s declaratory judgment, unjust enrichment and successor liability claims, as well as all claims asserted against WCW, Inc. The Court also granted plaintiffs leave to file a second amended complaint, which plaintiffs filed on May 19, 2017. Plaintiffs then sought leave to file a third amended complain to correct certain errors by plaintiffs’ counsel, which the Court granted and plaintiffs filed their third amended complaint on June 15, 2017. The third amended complaint continues to assert claims for breach of contract, breach of fiduciary duty, and violations of the Connecticut Unfair Trade Practices Act, C.G.S.§42-110a, et seq. against WWE. The Company believes all claims against the Company in this lawsuit are without merit and intends to continue to defend itself vigorously.

In addition to the foregoing, from time to time we become a party to other lawsuits and claims. By its nature, the outcome of litigation is not known, but the Company does not currently expect this ordinary course litigation to have a material adverse effect on our financial condition, results of operations or liquidity.

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Significant Accounting Policies (Policy)

6 Months Ended

Jun. 30, 2017

Significant Accounting Policies [Abstract]

Cost of Revenues

Cost of Revenues

Included within Costs of revenues are the following:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2017		2016		2017		2016
Amortization and impairment of feature film assets	$	3,072	$	1,595	$	5,803	$	2,701
Amortization of television production assets		5,105		9,438		10,721		17,569
Amortization of WWE Network content delivery and technology assets		1,691		1,230		3,355		2,379
Total amortization and impairment included in cost of revenues	$	9,868	$	12,263	$	19,879	$	22,649

Costs to produce our live event programming are expensed when the event is first broadcast, and are not included in the amortization table noted above.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

In May 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2017-09, “Compensation – Stock Compensation (Topic 718) Scope of Modification Accounting.” The ASU provides guidance on the various types of changes which would trigger modification accounting for share-based payment awards. In summary, an entity would not apply modification accounting if the fair value, vesting conditions, and classification of the awards are the same immediately before and after the modification. The guidance is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods, which for the Company will be effective for the fiscal year beginning January 1, 2018. Early adoption is permitted, including adoption in any interim period for which financial statements have not yet been issued. The amendments are to be applied prospectively to an award modified on or after the adoption date, consequently the impact will be dependent on whether the Company modifies any of its share-based payment awards and the nature of such modifications

In January 2017, the FASB issued ASU No. 2017-01, “Business Combinations (Topic 805) Clarifying the Definition of a Business”. The amendments in this ASU clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The definition of a business affects many areas of accounting including acquisitions, disposals, goodwill, and consolidation. The guidance is effective for annual periods beginning after December 15, 2017, which for the Company will be effective for the fiscal year beginning January 1, 2018.  The Company does not expect that the adoption of this new standard will have a material impact on our consolidated financial statements.

In August 2016, the FASB issued ASU No. 2016-15, “Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments,” which addresses eight specific cash flow issues and is intended to reduce diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows.  The guidance is effective for interim and annual periods beginning after December 15, 2017, which for the Company will be effective for the fiscal year beginning January 1, 2018, with early adoption permitted.  The amendments in the ASU should be applied using a retrospective transition method to each period presented. The Company is currently evaluating the impact of this new standard and does not expect it to have a material impact on our consolidated financial statements.

In March 2016, the FASB issued ASU No. 2016-09, "Compensation-Stock Compensation (Topic 718) Improvements to Employee Share-Based Payment Accounting." This update simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. The update contains various amendments, each requiring a specific method of adoption, and designates whether each amendment should be adopted using a retrospective, modified retrospective, or prospective transition method. The new guidance was adopted on January 1, 2017. The impact of adoption of the update is summarized below: 

· All excess tax benefits and deficiencies that result from the difference between the deduction for tax purposes and the compensation cost recognized for financial reporting purposes related to our share-based payment awards will be recognized as income tax benefit or expense in the income statement instead of as an adjustment to additional paid-in capital.  In addition, excess tax benefits are no longer included in the calculation of diluted shares outstanding for purposes computing diluted earnings per share under the treasury stock method. The transition guidance related to these changes has been adopted by the Company on a prospective basis.

· An entity is now required to recognize excess tax benefits regardless of whether the benefit reduces taxes payable in the current period. Under the required modified retrospective transition, the Company had no cumulative-effect adjustment to retained earnings at January 1, 2017, as the Company had no previously unrecognized excess tax benefits.

· Excess tax benefits will be classified along with other income tax cash flows as an operating activity on the statement of cash flows. Prior to the update, excess tax benefits were separated from other income tax cash flows and classified as a financing activity. In fiscal year 2016 and 2015, excess tax benefits of $893 and $431, respectively, were recorded as part of financing cash inflows. The Company adopted these changes on a prospective basis.

· Cash paid by an employer when directly withholding shares for tax-withholding purposes upon vesting of a share-based payment award are now classified as a financing activity on the statement of cash flows rather than as operating cash outflows. This amendment has been adopted by the Company on a retrospective basis. As a result of the retrospective adoption of this amendment, cash outflows of $47 was reclassified in the accompanying Consolidated Statements of Cash Flows from "Changes in accounts payable, accrued expenses and other liabilities" to "Taxes paid related to net settlement upon vesting of equity awards " for the six months ended June 30, 2016.

· The threshold to qualify for equity classification of a share-based payment award would now permit withholding up to a maximum individual statutory tax rate in the applicable jurisdictions. The Company had no share-based payment awards receiving liability treatment under the prior rules. Therefore, the change from minimum up to a maximum statutory rate on tax withholdings had no impact on our consolidated financial statements and no cumulative effect adjustment was required.

· The Company has elected to continue its current policy of estimating forfeitures rather than recognizing forfeitures when they occur. 

In March 2016, the FASB issued ASU No. 2016-07, “Investments – Equity Method and Joint Ventures (Topic 323): Simplifying the Transition to the Equity Method of Accounting”. The amendments eliminate the requirement to retroactively adopt the equity method of accounting when a change in ownership occurs. The amendments require that the equity method investor add the cost of acquiring the additional interest in the investee to the current basis of the investment and adopt the equity method of accounting as of the date the investment becomes qualified for equity method accounting. Therefore, upon qualifying for the equity method of accounting, no retroactive adjustment of the investment is required. This new guidance was adopted on January 1, 2017 with no material impact on our consolidated financial statements.

In February 2016, the FASB issued ASU No. 2016-02 “Leases (Topic 842),” which will supersede the existing guidance for lease accounting. This new standard will require lessees to recognize leases on their balance sheets, and leaves lessor accounting largely unchanged. The new standard requires a dual approach for lessee accounting under which a lessee would account for leases as finance leases or operating leases. Both finance leases and operating leases will result in the lessee recognizing a right-of-use asset and a corresponding lease liability. For finance leases, the lessee would recognize interest expense and amortization of the right-of-use asset, and for operating leases, the lessee would recognize a straight-line total lease expense. The new guidance is effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years, which for the Company will be effective for the fiscal year beginning January 1, 2019, with early adoption permitted.  An entity will be required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. We are currently evaluating the impact of the adoption of this new standard on our consolidated financial statements.

In January 2016, the FASB issued ASU No. 2016-01, “Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities,” which requires that most equity investments be measured at fair value, with subsequent changes in fair value recognized in net income (other than those accounted for under equity method of accounting). Under the new guidance, entities will no longer be able to recognize unrealized holding gains and losses on equity securities classified today as available-for-sale in other comprehensive income, and they will no longer be able to use the cost method of accounting for equity securities that do not have readily determinable fair values. However, entities will be able to elect to record equity investments without readily determinable fair values at cost, less impairment, and plus or minus subsequent adjustments for observable price changes. The guidance for classifying and measuring investments in debt securities and loans is not impacted. The new guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017, which for the Company is effective for the fiscal year beginning January 1, 2018, with early adoption permitted. The Company does not expect that the adoption of this new standard will have a material impact on our consolidated financial statements.

In July 2015, the FASB issued ASU No. 2015-11, “Simplifying the Measurement of Inventory,” which requires all inventory to be measured at the lower of cost and net realizable value, except for inventory that is accounted for using the LIFO or the retail inventory method, which will be measured under existing accounting standards. The new guidance must be applied on a prospective basis and was adopted on January 1, 2017 with no material impact on our consolidated financial statements.

In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers (Topic 606)." This standard will supersede the revenue recognition requirements in ASC 605, "Revenue Recognition," and most industry-specific guidance. The standard requires an entity to recognize revenue in an amount that reflects the consideration to which the entity expects to receive in exchange for goods or services. In addition, during 2016, the FASB has issued ASU No. 2016-08, “Principal versus Agent Considerations,” ASU No. 2016-10, “Identifying Performance Obligations and Licensing,” ASU No. 2016-12, “Narrow Scope Improvements and Practical Expedients,” and ASU No. 2016-20, “Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers,” all of which clarify certain implementation guidance in ASU No. 2014-09.  This standard along with the subsequent clarifications issued are effective for annual reporting periods beginning after December 15, 2017, and interim periods within those fiscal years, making it effective for our fiscal year beginning January 1, 2018. Early adoption is permitted to the original effective date for annual reporting periods beginning after December 15, 2016. The standard allows an entity to either apply the requirements retrospectively to all prior periods presented, or apply the requirements in the year of adoption, through a cumulative adjustment. While we are currently evaluating the impact of adoption of this new standard and clarifying guidance on our consolidated financial statements, we believe the most significant impact will be an acceleration in the timing of revenue recognition in our licensing and WWE Studios businesses. We currently record revenues from our licensed products and WWE Studios film distribution revenues after receiving statements from the licensee and/or film distributor. Under the new revenue recognition rules, revenues will be recorded based on best estimates available in the period of sales or usage. We do not expect the impact of this change to be material on a full-year basis, but will likely impact the revenues recorded in a specific quarter as compared to previously reported periods. Based on the limited expected impacts from the standard, we intend to adopt the standard and the related modifications on January 1, 2018, using the modified retrospective approach.  Under this approach, the cumulative effect of initially applying the guidance will be reflected as an adjustment to beginning retained earnings.

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Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2017

Significant Accounting Policies [Abstract]

Cost of Revenues

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2017		2016		2017		2016
Amortization and impairment of feature film assets	$	3,072	$	1,595	$	5,803	$	2,701
Amortization of television production assets		5,105		9,438		10,721		17,569
Amortization of WWE Network content delivery and technology assets		1,691		1,230		3,355		2,379
Total amortization and impairment included in cost of revenues	$	9,868	$	12,263	$	19,879	$	22,649

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Segment Information (Tables)

6 Months Ended

Jun. 30, 2017

Segment Information [Abstract]

Summary of Financial Information for Reportable Segments

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2017		2016		2017		2016
Net revenues:
Network	$	54,903	$	51,750	$	101,373	$	92,081
Television		66,181		56,043		130,197		116,762
Home Entertainment		3,000		3,155		5,432		6,424
Digital Media		8,047		6,489		13,782		11,886
Live Events		52,837		51,912		84,933		77,246
Licensing		9,391		8,916		29,488		29,958
Venue Merchandise		6,795		8,770		13,883		14,210
WWEShop		8,387		7,491		16,308		14,298
WWE Studios		3,550		3,289		4,832		5,232
Corporate & Other		1,495		1,179		2,802		1,997
Total net revenues	$	214,586	$	198,994	$	403,030	$	370,094
OIBDA:
Network	$	2,997	$	(5,656)	$	17,283	$	10,104
Television		31,824		27,204		62,658		55,511
Home Entertainment		910		964		1,732		2,508
Digital Media		1,491		183		986		71
Live Events		21,606		23,425		29,727		29,510
Licensing		4,456		3,953		17,850		18,224
Venue Merchandise		2,516		3,627		5,104		5,692
WWEShop		2,140		1,571		4,034		2,972
WWE Studios		(717)		439		(3,645)		2
Corporate & Other		(50,151)		(48,171)		(107,800)		(89,464)
Total OIBDA	$	17,072	$	7,539	$	27,929	$	35,130

Reconciliation of Total Operating (Loss) Income to Total OIBDA

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2017		2016		2017		2016
Total operating income	$	10,695	$	1,573	$	14,684	$	23,577
Depreciation and amortization		6,377		5,966		13,245		11,553
Total OIBDA	$	17,072	$	7,539	$	27,929	$	35,130

Schedule of Net Revenues by Major Geographic Region

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2017		2016		2017		2016
North America	$	159,409	$	149,761	$	305,632	$	279,781
Europe/Middle East/Africa		36,620		36,142		63,205		63,748
Asia Pacific		15,542		11,245		28,516		22,834
Latin America		3,015		1,846		5,677		3,731
Total net revenues	$	214,586	$	198,994	$	403,030	$	370,094

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Earnings Per Share (Tables)

6 Months Ended

Jun. 30, 2017

Earnings Per Share [Abstract]

Schedule of Basic and Diluted Earnings Per Share

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2017		2016		2017		2016
Net income	$	5,085	$	862	$	5,973	$	14,747
Weighted average basic common shares outstanding		76,455		75,952		76,448		75,945
Dilutive effect of restricted and performance stock units		2,105		1,474		1,920		1,354
Dilutive effect of employee share purchase plan		3		3		6		5
Weighted average dilutive common shares outstanding		78,563		77,429		78,374		77,304
Earnings per share:
Basic	$	0.07	$	0.01	$	0.08	$	0.19
Diluted	$	0.06	$	0.01	$	0.08	$	0.19
Anti-dilutive outstanding restricted and performance stock units (excluded from per-share calculations)		—		—		2		—

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Stock-Based Compensation (Tables)

6 Months Ended

Jun. 30, 2017

Stock-Based Compensation [Abstract]

Summary of RSU Activity

	Units	Weighted- Average Grant-Date Fair Value
Unvested at January 1, 2017	356,761	$	16.68
Granted	311,223	$	19.46
Vested	(7,098)	$	19.02
Forfeited	(28,041)	$	17.18
Dividend equivalents	7,207	$	18.01
Unvested at June 30, 2017	640,052	$	18.00

Summary of PSU Activity

	Units	Weighted- Average Grant-Date Fair Value
Unvested at January 1, 2017	2,161,311	$	16.39
Granted	550,460	$	20.37
Achievement adjustment	282,662	$	20.96
Forfeited	(33,686)	$	19.50
Dividend equivalents	27,364	$	17.87
Unvested at June 30, 2017	2,988,111	$	18.32

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Property And Equipment (Tables)

6 Months Ended

Jun. 30, 2017

Property And Equipment [Abstract]

Schedule of Property and Equipment

	As of
	June 30,		December 31,
	2017		2016
Land, buildings and improvements	$	131,383	$	130,330
Equipment		101,038		136,114
Corporate aircraft		31,277		31,277
Vehicles		244		244
		263,942		297,965
Less: accumulated depreciation and amortization		(132,390)		(165,334)
Total	$	131,552	$	132,631

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Feature Film Production Assets, Net (Tables)

6 Months Ended

Jun. 30, 2017

Feature Film Production Assets, Net [Abstract]

Schedule of Feature Film Production Assets

	As of
	June 30,		December 31,
	2017		2016
In release	$	17,721	$	13,892
Completed but not released		3,518		8,881
In production		6,748		3,387
In development		1,130		977
Total	$	29,117	$	27,137

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Television Production Assets, Net (Tables)

6 Months Ended

Jun. 30, 2017

Television Production Assets, Net [Abstract]

Schedule of Television Production Assets

	As of
	June 30,		December 31,
	2017		2016
In release	$	3,633	$	12,198
In production		5,775		310
Total	$	9,408	$	12,508

Amortization of Television Production Assets

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2017		2016		2017		2016
WWE Network programming	$	510	$	7,396	$	3,119	$	8,729
Television programming		4,595		2,042		7,602		8,840
Total	$	5,105	$	9,438	$	10,721	$	17,569

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Investment Securities And Short-Term Investments (Tables)

6 Months Ended

Jun. 30, 2017

Investment Securities And Short-Term Investments [Abstract]

Schedule Of Investment Securities

	As of
	June 30,		December 31,
	2017		2016
Equity method investment	$	14,584	$	14,592
Cost method investments		10,503		10,365
Total investment securities	$	25,087	$	24,957

Schedule Of Tapout Investment

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2017		2016		2017		2016
Net equity method earnings from Tapout	$	190	$	415	$	645	$	837
Net dividends received from Tapout		(315)		(453)		(668)		(747)
Equity in earnings of affiliate, net of dividends received	$	(125)	$	(38)	$	(23)	$	90

Schedule of Short-Term Investments Measured at Fair Value

	As of June 30, 2017								As of December 31, 2016
			Gross Unrealized								Gross Unrealized
	Amortized						Fair		Amortized						Fair
	Cost		Gain		(Loss)		Value		Cost		Gain		(Loss)		Value
Corporate bonds	$	50,259	$	3	$	(90)	$	50,172	$	40,183	$	9	$	(58)	$	40,134
U.S. Treasury securities		47,901		13		(78)		47,836		—		—		—		—
Municipal bonds		19,459		15		(13)		19,461		15,075		—		(45)		15,030
Government agency bonds		12,020		—		(41)		11,979		—		—		—		—
Total	$	129,639	$	31	$	(222)	$	129,448	$	55,258	$	9	$	(103)	$	55,164

Schedule of Contractual Maturities of Short-Term Investment Bonds

	Maturities
Corporate bonds	3 months - 3 years
U.S. Treasury securities	3 months - 3 years
Municipal bonds	1 month - 3 years
Government agency bonds	8 months - 5 years

Summary of Short-Term Investment Activity

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2017		2016		2017		2016
Proceeds from sales and maturities of short-term investments	$	2,640	$	400	$	13,660	$	400
Purchases of short-term investments	$	27,411	$	—	$	88,696	$	—

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Fair Value Measurement (Tables)

6 Months Ended

Jun. 30, 2017

Fair Value Measurement [Abstract]

Schedule of Assets Measured at Fair Value on a Recurring Basis

	Fair Value at June 30, 2017								Fair Value at December 31, 2016
	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
Corporate bonds	$	50,172	$	—	$	50,172	$	—	$	40,134	$	—	$	40,134	$	—
U.S. Treasury securities		47,836		—		47,836		—		—		—		—		—
Municipal bonds		19,461		—		19,461		—		15,030		—		15,030		—
Government agency bonds		11,979		—		11,979		—		—		—		—		—
Total	$	129,448	$	—	$	129,448	$	—	$	55,164	$	—	$	55,164	$	—

Schedule Of Fair Value Of Debt Instruments

	June 30, 2017				December 31, 2016
	Fair Value		Carrying Value (1)		Fair Value		Carrying Value (1)
Convertible senior notes	$	181,454	$	180,597	$	166,702	$	166,050

(1) The carrying value of the convertible debt instrument presented in the table above represents the face value of the convertible note less unamortized debt discount.

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Accounts Payable and Accrued Expenses (Tables)

6 Months Ended

Jun. 30, 2017

Accounts Payable And Accrued Expenses [Abstract]

Schedule of Accounts Payable and Accrued Expenses

	As of
	June 30,		December 31,
	2017		2016
Trade related	$	8,673	$	10,118
Staff related		8,908		7,494
Management incentive compensation		9,737		21,542
Talent related		5,748		6,969
Accrued WWE Network related expenses		2,565		2,120
Accrued event and television production		6,773		7,031
Accrued legal and professional		5,423		1,952
Accrued purchases of property and equipment		1,993		2,940
Accrued other		10,576		10,194
Total	$	60,396	$	70,360

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Long-Term Debt And Credit Facilities (Tables)

6 Months Ended

Jun. 30, 2017

Long-Term Debt And Credit Facilities [Abstract]

Schedule of Debt

	As of
	June 30,		December 31,
	2017		2016
Current portion of long-term debt:
Film Credit Facility	$	2,642	$	1,583
Aircraft financing		4,588		4,538
Total current portion of long-term debt		7,230		6,121
Long-term debt:
Aircraft financing	$	10,290	$	12,596
Mortgage		23,000		23,000
Total long-term debt		33,290		35,596
Total	$	40,520	$	41,717

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Convertible Debt (Tables)

6 Months Ended

Jun. 30, 2017

Convertible Debt [Abstract]

Schedule Of Convertible Notes

	As of
	June 30,		December 31,
	2017		2016
Debt component:
Principal	$	215,000	$	200,000
Less: Unamortized debt discount		(34,403)		(33,950)
Less: Unamortized debt issuance costs		(5,168)		(5,042)
Net carrying amount	$	175,429	$	161,008
Equity component (1)	$	35,547	$	33,060

(1) Recorded in the Consolidated Balance Sheets within additional paid-in capital, net of the $1,110 issuance costs in equity.

Schedule Of Interest Expense Recognized

	Three Months Ended		Six Months Ended
	June 30,		June 30,
	2017		2017
3.375% contractual coupon	$	1,814	$	3,604
Amortization of debt discount		1,068		2,104
Amortization of debt issuance costs		137		269
Interest expense	$	3,019	$	5,977

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Film and Television Production Incentives (Tables)

6 Months Ended

Jun. 30, 2017

Film And Television Production Incentives [Abstract]

Schedule of Film and Television Production Incentives

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2017		2016		2017		2016
Television production incentives	$	—	$	—	$	—	$	2,530
Feature film production incentives		23		588		483		1,412
Total	$	23	$	588	$	483	$	3,942

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Basis Of Presentation And Business Description (Details)	6 Months Ended
	Jun. 30, 2017 item
Basis Of Presentation And Business Description [Abstract]
Number of principal activities	4

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Significant Accounting Policies (Narrative) (Details) - USD ($) $ in Thousands	6 Months Ended		12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016	Dec. 31, 2015
Significant Accounting Policies [Line Items]
Excess tax benefits from stock-based payment arrangements		$ 6
Taxes paid related to net settlement upon vesting of equity awards	$ 56	47
Scenario, Previously Reported [Member] | Accounting Standards Update 2016-09 [Member]
Significant Accounting Policies [Line Items]
Excess tax benefits from stock-based payment arrangements			$ 893	$ 431
Restatement Adjustment [Member] | Accounting Standards Update 2016-09 [Member]
Significant Accounting Policies [Line Items]
Taxes paid related to net settlement upon vesting of equity awards		$ 47

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Significant Accounting Policies (Cost of Revenues) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Significant Accounting Policies [Abstract]
Amortization and impairment of feature film assets	$ 3,072	$ 1,595	$ 5,803	$ 2,701
Amortization of television production assets	5,105	9,438	10,721	17,569
Amortization of WWE Network content delivery and technology assets	1,691	1,230	3,355	2,379
Total amortization and impairment included in cost of revenues	$ 9,868	$ 12,263	$ 19,879	$ 22,649

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Segment Information (Narrative) (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017 USD ($)	Jun. 30, 2016 USD ($)	Jun. 30, 2017 USD ($) segment	Jun. 30, 2016 USD ($)
Segment Reporting Information [Line Items]
Number of reportable segments | segment			10
Total net revenues	$ 214,586	$ 198,994	$ 403,030	$ 370,094
United Kingdom [Member]
Segment Reporting Information [Line Items]
Total net revenues	$ 23,032	$ 24,000	$ 38,712	$ 40,876

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Segment Information (Summary of Financial Information for Reportable Segments) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Segment Reporting Information [Line Items]
Total net revenues	$ 214,586	$ 198,994	$ 403,030	$ 370,094
Total OIBDA	17,072	7,539	27,929	35,130
Network [Member]
Segment Reporting Information [Line Items]
Total net revenues	54,903	51,750	101,373	92,081
Total OIBDA	2,997	(5,656)	17,283	10,104
Television [Member]
Segment Reporting Information [Line Items]
Total net revenues	66,181	56,043	130,197	116,762
Total OIBDA	31,824	27,204	62,658	55,511
Home Entertainment [Member]
Segment Reporting Information [Line Items]
Total net revenues	3,000	3,155	5,432	6,424
Total OIBDA	910	964	1,732	2,508
Digital Media [Member]
Segment Reporting Information [Line Items]
Total net revenues	8,047	6,489	13,782	11,886
Total OIBDA	1,491	183	986	71
Live Events [Member]
Segment Reporting Information [Line Items]
Total net revenues	52,837	51,912	84,933	77,246
Total OIBDA	21,606	23,425	29,727	29,510
Licensing [Member]
Segment Reporting Information [Line Items]
Total net revenues	9,391	8,916	29,488	29,958
Total OIBDA	4,456	3,953	17,850	18,224
Venue Merchandise [Member]
Segment Reporting Information [Line Items]
Total net revenues	6,795	8,770	13,883	14,210
Total OIBDA	2,516	3,627	5,104	5,692
WWEShop [Member]
Segment Reporting Information [Line Items]
Total net revenues	8,387	7,491	16,308	14,298
Total OIBDA	2,140	1,571	4,034	2,972
WWE Studios [Member]
Segment Reporting Information [Line Items]
Total net revenues	3,550	3,289	4,832	5,232
Total OIBDA	(717)	439	(3,645)	2
Corporate & Other [Member]
Segment Reporting Information [Line Items]
Total net revenues	1,495	1,179	2,802	1,997
Total OIBDA	$ (50,151)	$ (48,171)	$ (107,800)	$ (89,464)

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Segment Information (Reconciliation of Total Operating (Loss) Income to Total OIBDA) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Segment Information [Abstract]
Operating income	$ 10,695	$ 1,573	$ 14,684	$ 23,577
Depreciation and amortization	6,377	5,966	13,245	11,553
Total OIBDA	$ 17,072	$ 7,539	$ 27,929	$ 35,130

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Segment Information (Schedule of Net Revenues by Major Geographic Region) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Segment Reporting Information [Line Items]
Total net revenues	$ 214,586	$ 198,994	$ 403,030	$ 370,094
North America [Member]
Segment Reporting Information [Line Items]
Total net revenues	159,409	149,761	305,632	279,781
Europe/Middle East/Africa [Member]
Segment Reporting Information [Line Items]
Total net revenues	36,620	36,142	63,205	63,748
Asia Pacific [Member]
Segment Reporting Information [Line Items]
Total net revenues	15,542	11,245	28,516	22,834
Latin America [Member]
Segment Reporting Information [Line Items]
Total net revenues	$ 3,015	$ 1,846	$ 5,677	$ 3,731

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Earnings Per Share (Narrative) (Details)	Jun. 30, 2017 $ / shares
3.375% Convertible Notes [Member]
Debt Instrument [Line Items]
Conversion price	$ 24.91

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Earnings Per Share (Schedule of Basic and Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Earnings Per Share [Abstract]
Net income	$ 5,085	$ 862	$ 5,973	$ 14,747
Weighted average basic common shares outstanding	76,455	75,952	76,448	75,945
Dilutive effect of restricted and performance stock units	2,105	1,474	1,920	1,354
Dilutive effect of employee share purchase plan	3	3	6	5
Weighted average dilutive common shares outstanding	78,563	77,429	78,374	77,304
Basic	$ 0.07	$ 0.01	$ 0.08	$ 0.19
Diluted	$ 0.06	$ 0.01	$ 0.08	$ 0.19
Anti-dilutive outstanding restricted and performance stock units (excluded from per-share calculations)			2

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Stock-Based Compensation (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 6,167	$ 6,429	$ 12,782	$ 9,589
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Requisite service period			3 years 6 months
Awards granted			311,223
Performance Stock Units (PSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Requisite service period			3 years 6 months
Awards granted			550,460		956,730
Increase in units			282,662

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Stock-Based Compensation (Summary of RSU Activity) (Details) - Restricted Stock Units (RSUs) [Member]	6 Months Ended
	Jun. 30, 2017 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Units, Unvested at January 1, 2017 | shares	356,761
Units, Granted | shares	311,223
Units, Vested | shares	(7,098)
Units, Forfeited | shares	(28,041)
Units, Dividend equivalents | shares	7,207
Units, Unvested at June 30, 2017 | shares	640,052
Weighted-Average Grant-Date Fair Value, Unvested at January 1, 2017 | $ / shares	$ 16.68
Weighted-Average Grant-Date Fair Value, Granted | $ / shares	19.46
Weighted-Average Grant-Date Fair Value, Vested | $ / shares	19.02
Weighted-Average Grant-Date Fair Value, Forfeited | $ / shares	17.18
Weighted-Average Grant-Date Fair Value, Dividend equivalents | $ / shares	18.01
Weighted-Average Grant-Date Fair Value, Unvested at June 30, 2017 | $ / shares	$ 18.00

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Stock-Based Compensation (Summary of PSU Activity) (Details) - Performance Stock Units (PSUs) [Member] - $ / shares	6 Months Ended	12 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Units, Unvested at January 1, 2017	2,161,311
Units, Granted	550,460	956,730
Units, Achievement adjustment	282,662
Units, Forfeited	(33,686)
Units, Dividend equivalents	27,364
Units, Unvested at June 30, 2017	2,988,111	2,161,311
Weighted-Average Grant-Date Fair Value, Unvested at January 1, 2017	$ 16.39
Weighted-Average Grant-Date Fair Value, Granted	20.37
Weighted-Average Grant-Date Fair Value, Achievement adjustment	20.96
Weighted-Average Grant-Date Fair Value, Forfeited	19.50
Weighted-Average Grant-Date Fair Value, Dividend equivalents	17.87
Weighted-Average Grant-Date Fair Value, Unvested at June 30, 2017	$ 18.32	$ 16.39

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Property And Equipment (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Property And Equipment [Abstract]
Depreciation expense	$ 5,937	$ 5,655	$ 12,366	$ 10,936
Write-off of fixed assets	$ 43,297		$ 43,297

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Property And Equipment (Schedule of Property and Equipment) (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Property, Plant and Equipment [Line Items]
Gross	$ 263,942	$ 297,965
Less accumulated depreciation and amortization	(132,390)	(165,334)
Total	131,552	132,631
Land, Buildings And Improvements [Member]
Property, Plant and Equipment [Line Items]
Gross	131,383	130,330
Equipment [Member]
Property, Plant and Equipment [Line Items]
Gross	101,038	136,114
Corporate Aircraft [Member]
Property, Plant and Equipment [Line Items]
Gross	31,277	31,277
Vehicles [Member]
Property, Plant and Equipment [Line Items]
Gross	$ 244	$ 244

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Feature Film Production Assets, Net (Narrative) (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2017 USD ($)	Jun. 30, 2016 USD ($)	Jun. 30, 2017 USD ($) item	Jun. 30, 2016 USD ($)
Finite-Lived Intangible Assets [Line Items]
Future amortization expense, percentage, within twelve months			31.00%
Future amortization expense, percentage, one through three years	69.00%		69.00%
Future amortization expense, percentage, one through four years			80.00%
Amortization of feature film production assets | $	$ 1,988,000	$ 1,595,000	$ 2,641,000	$ 2,701,000
Number of feature films			2
Number of films direct to DVD			3
Total number of films			5
Theatrical film costs released during period | $	6,628,000		$ 6,628,000
Number of theatrical films completed but not released			3
Number of theatrical films in production			2
Asset impairment charges | $		0		0
Feature Film Production Assets [Member]
Finite-Lived Intangible Assets [Line Items]
Asset impairment charges | $	$ 1,084,000	$ 0	$ 3,162,000	$ 0

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Feature Film Production Assets, Net (Schedule of Feature Film Production Assets) (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Feature Film Production Assets, Net [Abstract]
In release	$ 17,721	$ 13,892
Completed but not released	3,518	8,881
In production	6,748	3,387
In development	1,130	977
Total	$ 29,117	$ 27,137

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Television Production Assets, Net (Schedule of Television Production Assets) (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Television Production Assets, Net [Abstract]
In release	$ 3,633	$ 12,198
In production	5,775	310
Total	$ 9,408	$ 12,508

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Television Production Assets, Net (Amortization of Television Production Assets) (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Finite-Lived Intangible Assets [Line Items]
Amortization	$ 1,988,000	$ 1,595,000	$ 2,641,000	$ 2,701,000
Asset impairment charges		0		0
Television Production Assets [Member]
Finite-Lived Intangible Assets [Line Items]
Amortization	5,105,000	9,438,000	10,721,000	17,569,000
Asset impairment charges	0	0	0	0
Television Production Assets [Member] | Network [Member]
Finite-Lived Intangible Assets [Line Items]
Amortization	510,000	7,396,000	3,119,000	8,729,000
Television Production Assets [Member] | Television [Member]
Finite-Lived Intangible Assets [Line Items]
Amortization	$ 4,595,000	$ 2,042,000	$ 7,602,000	$ 8,840,000

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Investment Securities and Short-Term Investments (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Investment [Line Items]
Impairment charge	$ 0	$ 0	$ 0	$ 0
Deferred revenue, current	57,749		57,749		$ 56,653
Deferred revenue, noncurrent	22,303		$ 22,303		$ 30,697
Tapout [Member]
Investment [Line Items]
Duration of joint venture			5 years
Ownership interest			50.00%
Interest in Tapout	13,800		$ 13,800
Investment revenue	672	$ 947	1,394	$ 1,705
Deferred revenue	7,083		7,083
Deferred revenue, current	2,760		2,760
Deferred revenue, noncurrent	4,323		4,323
Tapout [Member] | Maximum [Member]
Investment [Line Items]
Maximum exposure to loss	$ 7,083		$ 7,083

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Investment Securities and Short-Term Investments (Schedule Of Investment Securities ) (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Investment Securities And Short-Term Investments [Abstract]
Equity method investment	$ 14,584	$ 14,592
Cost method investments	10,503	10,365
Total investment securities	$ 25,087	$ 24,957

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Investment Securities and Short-Term Investments (Schedule Of Tapout Investment ) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Schedule of Investments [Line Items]
Equity in earnings of affiliate, net of dividends received			$ (23)	$ 90
Tapout [Member]
Schedule of Investments [Line Items]
Net equity method earnings from Tapout	$ 190	$ 415	645	837
Net dividends received from Tapout	(315)	(453)	(668)	(747)
Equity in earnings of affiliate, net of dividends received	$ (125)	$ (38)	$ (23)	$ 90

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Investment Securities and Short-Term Investments (Schedule of Short-Term Investments Measured at Fair Value) (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$ 129,639	$ 55,258
Gross Unrealized Gain	31	9
Gross Unrealized (Loss)	(222)	(103)
Fair Value	129,448	55,164
Corporate Bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	50,259	40,183
Gross Unrealized Gain	3	9
Gross Unrealized (Loss)	(90)	(58)
Fair Value	50,172	40,134
US Treasury Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	47,901
Gross Unrealized Gain	13
Gross Unrealized (Loss)	(78)
Fair Value	47,836
Municipal Bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	19,459	15,075
Gross Unrealized Gain	15
Gross Unrealized (Loss)	(13)	(45)
Fair Value	19,461	$ 15,030
Government Agency Bonds [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	12,020
Gross Unrealized (Loss)	(41)
Fair Value	$ 11,979

XML

Investment Securities and Short-Term Investments (Schedule of Contractual Maturities of Short-Term Investment Bonds) (Details)	6 Months Ended
	Jun. 30, 2017
Corporate Bonds [Member] | Minimum [Member]
Schedule of Available-for-sale Securities [Line Items]
Contractual maturities of bonds	3 months
Corporate Bonds [Member] | Maximum [Member]
Schedule of Available-for-sale Securities [Line Items]
Contractual maturities of bonds	3 years
US Treasury Securities [Member] | Minimum [Member]
Schedule of Available-for-sale Securities [Line Items]
Contractual maturities of bonds	3 months
US Treasury Securities [Member] | Maximum [Member]
Schedule of Available-for-sale Securities [Line Items]
Contractual maturities of bonds	3 years
Municipal Bonds [Member] | Minimum [Member]
Schedule of Available-for-sale Securities [Line Items]
Contractual maturities of bonds	1 month
Municipal Bonds [Member] | Maximum [Member]
Schedule of Available-for-sale Securities [Line Items]
Contractual maturities of bonds	3 years
Government Agency Bonds [Member] | Minimum [Member]
Schedule of Available-for-sale Securities [Line Items]
Contractual maturities of bonds	8 months
Government Agency Bonds [Member] | Maximum [Member]
Schedule of Available-for-sale Securities [Line Items]
Contractual maturities of bonds	5 years

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Investment Securities and Short-Term Investments (Summary of Short-Term Investment Activity) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Investment Securities And Short-Term Investments [Abstract]
Proceeds from sales and maturities of short-term investments	$ 2,640	$ 400	$ 13,660	$ 400
Purchases of short-term investments	$ 27,411		$ 88,696

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Fair Value Measurement (Narrative) (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Impairment charge	$ 0	$ 0	$ 0	$ 0
Asset impairment charges		0		0
3.375% Convertible Notes [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Effective rate	6.40%		6.40%
Feature Film Production Assets [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Asset impairment charges	$ 1,084,000	0	$ 3,162,000	0
Fair value of assets	2,697,000		$ 2,697,000
Discount rate			13.00%
Mobile Video Publishing Business [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items]
Asset impairment charges	$ 0	$ 0	$ 0	$ 0

XML

Fair Value Measurement (Schedule of Assets Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	$ 129,448	$ 55,164
Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	129,448	55,164
Recurring [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities
Recurring [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	129,448	55,164
Recurring [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities
Corporate Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	50,172	40,134
Corporate Bonds [Member] | Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	50,172	40,134
Corporate Bonds [Member] | Recurring [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities
Corporate Bonds [Member] | Recurring [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	50,172	40,134
Corporate Bonds [Member] | Recurring [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities
US Treasury Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	47,836
US Treasury Securities [Member] | Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	47,836
US Treasury Securities [Member] | Recurring [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities
US Treasury Securities [Member] | Recurring [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	47,836
US Treasury Securities [Member] | Recurring [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities
Municipal Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	19,461	15,030
Municipal Bonds [Member] | Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	19,461	15,030
Municipal Bonds [Member] | Recurring [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities
Municipal Bonds [Member] | Recurring [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	19,461	15,030
Municipal Bonds [Member] | Recurring [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities
Government Agency Bonds [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	11,979
Government Agency Bonds [Member] | Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	11,979
Government Agency Bonds [Member] | Recurring [Member] | Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities
Government Agency Bonds [Member] | Recurring [Member] | Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities	11,979
Government Agency Bonds [Member] | Recurring [Member] | Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities

XML

Fair Value Measurement (Schedule Of Fair Value Of Debt Instruments) (Details) - USD ($) $ in Thousands		Jun. 30, 2017	Dec. 31, 2016
Fair Value [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Convertible senior notes		$ 181,454	$ 166,702
Carrying Value [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Convertible senior notes	[1]	$ 180,597	$ 166,050

[1] The carrying value of the convertible debt instrument presented in the table above represents the face value of the convertible note less unamortized debt discount.

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Accounts Payable And Accrued Expenses (Narrative) (Details)	Jun. 30, 2017
Accounts Payable And Accrued Expenses [Abstract]
Individual accrual categories percentage of current liabilities	5.00%

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Accounts Payable And Accrued Expenses (Schedule of Accounts Payable and Accrued Expenses) (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Accounts Payable And Accrued Expenses [Abstract]
Trade related	$ 8,673	$ 10,118
Staff related	8,908	7,494
Management incentive compensation	9,737	21,542
Talent related	5,748	6,969
Accrued WWE Network related expenses	2,565	2,120
Accrued event and television production	6,773	7,031
Accrued legal and professional	5,423	1,952
Accrued purchases of property and equipment	1,993	2,940
Accrued other	10,576	10,194
Total	$ 60,396	$ 70,360

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Long-Term Debt And Credit Facilities (Narrative) (Details)	6 Months Ended
	Jun. 30, 2017 USD ($) item	Dec. 31, 2016 USD ($)
Mortgage [Member]
Debt Instrument [Line Items]
Principal amount	$ 23,000,000
Interest rate	4.50%
Monthly installments, interest only	$ 86,000
Monthly installments, interest and principal	$ 117,000
Maturity date	Jul. 01, 2025
Aircraft Financing [Member]
Debt Instrument [Line Items]
Principal amount	$ 31,568,000
Interest rate	2.18%
Monthly installments, interest and principal	$ 406,000
Maturity date	Aug. 07, 2020
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Credit Facility borrowing capacity	$ 100,000,000
Credit Facility amount outstanding	$ 0	$ 0
Credit Facility interest rate	2.55%
Credit Facility unutilized commitment fee rate	0.30%
Credit Facility available debt capacity	$ 100,000,000
Credit Facility maturity date	Jul. 29, 2021
Film Credit Facility [Member]
Debt Instrument [Line Items]
Number of domestic subsidiaries | item	2
Credit Facility borrowing capacity	$ 35,000,000
Credit Facility amount outstanding	$ 2,642,000
Credit Facility term	5 years
Credit Facility unutilized commitment fee rate	0.50%
Credit Facility available debt capacity	$ 7,265,000
Film Credit Facility [Member] | LIBOR [Member]
Debt Instrument [Line Items]
Credit Facility variable rate	2.50%
Credit Facility interest rate	3.80%
Film Credit Facility [Member] | Base Rate [Member]
Debt Instrument [Line Items]
Credit Facility variable rate	1.50%

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Long-Term Debt And Credit Facilities (Schedule Of Debt) (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Debt Instrument [Line Items]
Current portion of long-term debt	$ 7,230	$ 6,121
Long-term debt	33,290	35,596
Debt	40,520	41,717
Film Credit Facility [Member]
Debt Instrument [Line Items]
Current portion of long-term debt	2,642	1,583
Aircraft Financing [Member]
Debt Instrument [Line Items]
Current portion of long-term debt	4,588	4,538
Long-term debt	10,290	12,596
Mortgage [Member]
Debt Instrument [Line Items]
Long-term debt	$ 23,000	$ 23,000

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Convertible Debt (Narrative) (Details)	1 Months Ended	6 Months Ended	12 Months Ended
	Jan. 31, 2017 USD ($)	Jun. 30, 2017 USD ($) item $ / shares shares	Dec. 31, 2016 USD ($) shares
Debt Instrument [Line Items]
Purchase of convertible note hedge		$ 2,558,000	$ 36,658,000
Proceeds from issuance of warrants		$ 1,460,000
Warrant strike price | $ / shares		$ 31.89
Percentage of warrant strike price in excess of stock price		60.00%
Share Price | $ / shares		$ 19.93
Initial Purchasers [Member]
Debt Instrument [Line Items]
Proceeds from issuance of warrants			$ 19,460,000
Convertible note hedge, shares covered by hedge | shares		8,030,000
Shares issuable under warrant agreement | shares			8,030,000
Over-Allotment Option Exercise [Member]
Debt Instrument [Line Items]
Proceeds from issuance of warrants		$ 1,460,000
Convertible note hedge, shares covered by hedge | shares		602,107
Shares issuable under warrant agreement | shares		602,107
3.375% Convertible Notes [Member]
Debt Instrument [Line Items]
Interest rate		3.375%
Effective rate		6.40%
Conversion ratio, shares		40.1405
Conversion price | $ / shares		$ 24.91
Non-cash interest expense, debt component		$ 5,454,000
Non-cash interest expense, equity component		$ 1,110,000	$ 1,110,000
3.375% Convertible Notes [Member] | Initial Purchasers [Member]
Debt Instrument [Line Items]
Convertible debt authorized for issuance			$ 200,000,000
Interest rate			3.375%
Maturity date		Jun. 15, 2023
Proceeds from private placement			$ 193,899,000
Purchase of convertible note hedge		$ 34,100,000
3.375% Convertible Notes [Member] | Over-Allotment Option Exercise [Member]
Debt Instrument [Line Items]
Convertible debt authorized for issuance			$ 15,000,000
Proceeds from private placement	$ 14,534,000
Purchase of convertible note hedge		$ 2,558,000
3.375% Convertible Notes [Member] | Conversion Scenario 1 [Member]
Debt Instrument [Line Items]
Threshold within consecutive trading days | item		20
Threshold of consecutive trading days | item		30
3.375% Convertible Notes [Member] | Conversion Scenario 1 [Member] | Minimum [Member]
Debt Instrument [Line Items]
Stock price trigger percent		130.00%
3.375% Convertible Notes [Member] | Conversion Scenario 2 [Member]
Debt Instrument [Line Items]
Threshold within consecutive trading days | item		5
Threshold of consecutive trading days | item		10
Threshold percentage of stock price and conversion rate		98.00%

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Convertible Debt (Schedule Of Convertible Notes) (Details) - USD ($) $ in Thousands		6 Months Ended	12 Months Ended
		Jun. 30, 2017	Dec. 31, 2016
Debt Instrument [Line Items]
Debt		$ 40,520	$ 41,717
3.375% Convertible Notes [Member]
Debt Instrument [Line Items]
Principal		215,000	200,000
Less: Unamortized debt discount		(34,403)	(33,950)
Less: Unamortized debt issuance costs		(5,168)	(5,042)
Debt		175,429	161,008
Equity component	[1]	35,547	33,060
Non-cash interest expense, equity component		$ 1,110	$ 1,110

[1] Recorded in the Consolidated Balance Sheets within additional paid-in capital, net of the $1,110 issuance costs in equity.

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Convertible Debt (Schedule Of Interest Expense Recognized) (Details) - 3.375% Convertible Notes [Member] $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2017 USD ($)	Jun. 30, 2017 USD ($)
Debt Instrument [Line Items]
3.375% contractual coupon	$ 1,814	$ 3,604
Amortization of debt discount	1,068	2,104
Amortization of debt issuance costs	137	269
Interest expense	$ 3,019	$ 5,977
Interest rate	3.375%	3.375%

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Concentration Of Credit Risk (Details) - customer	6 Months Ended	12 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Concentration Risk [Line Items]
Concentration risk, number of customers	3	2
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Customer One [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	19.00%	17.00%
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Customer Two [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	17.00%	15.00%
Customer Concentration Risk [Member] | Accounts Receivable [Member] | Customer Three [Member]
Concentration Risk [Line Items]
Concentration risk, percentage	12.00%

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Income Taxes (Narrative) (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Income Taxes [Abstract]
Deferred tax assets, net, included in non-current assets	$ 32,568	$ 32,556

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Film And Television Production Incentives (Schedule of Film and Television Production Incentives) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Film And Television Production Incentives [Abstract]
Television production incentives				$ 2,530
Feature film production incentives	$ 23	$ 588	$ 483	1,412
Total	$ 23	$ 588	$ 483	$ 3,942