Segment Information

6 Months Ended

Jun. 30, 2020

Segment Information [Abstract]

Segment Information

3. Segment Information

The Company currently classifies its operations into three reportable segments: Media, Live Events and Consumer Products. Segment information is prepared on the same basis that our chief operating decision maker manages the segments, evaluates financial results, and makes key operating decisions.

Unallocated corporate general and administrative expenses largely relate to corporate functions such as finance, legal, human resources, facilities and information technology. These unallocated corporate general and administrative expenses will be shown, as applicable, as a reconciling item in tables where segment and consolidated results are both shown. Revenues from transactions between our operating segments are not material.

The Company presents Adjusted OIBDA as the primary measure of segment profit (loss). The Company defines Adjusted OIBDA as operating income before depreciation and amortization, excluding stock-based compensation, certain impairment charges and other

non-recurring material items. Adjusted OIBDA includes depreciation and amortization expenses directly related to supporting the operations of our segments, including content production asset amortization, depreciation and amortization of costs related to content delivery and technology assets utilized for our WWE Network, as well as amortization of right-of-use assets related to finance leases of equipment used to produce and broadcast our live events. The Company believes the presentation of Adjusted 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 Adjusted OIBDA is a primary measure used by media investors, analysts and peers for comparative purposes.

We do not disclose assets by segment information. 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,
	2020		2019		2020		2019
Net revenues:
Media	$	200,166	$	196,901	$	456,724	$	332,348
Live Events		983		48,731		18,512		74,970
Consumer Products		22,256		23,177		39,178		43,939
Total net revenues	$	223,405	$	268,809	$	514,414	$	451,257
Adjusted OIBDA:
Media	$	90,454	$	37,501	$	193,090	$	66,001
Live Events		(4,169)		13,336		(6,812)		14,130
Consumer Products		8,073		6,216		11,918		12,236
Corporate		(20,853)		(22,441)		(47,433)		(45,366)
Total Adjusted OIBDA	$	73,505	$	34,612	$	150,763	$	47,001

Reconciliation of Total Operating Income to Total Adjusted OIBDA

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2020		2019		2020		2019
Total operating income	$	55,748	$	17,110	$	109,041	$	10,251
Depreciation and amortization (1)		10,768		5,838		21,668		12,258
Stock-based compensation		6,989		11,664		20,054		24,492
Other adjustments		—		—		—		—
Total Adjusted OIBDA	$	73,505	$	34,612	$	150,763	$	47,001

(1)Depreciation and amortization for the three and six months ended June 30, 2020 includes $2,266 and $4,532, respectively, of amortization related to the right-of-use asset for the Company’s new global headquarters lease, which commenced on July 1, 2019 and is accounted for as a finance lease.