Television Distribution Rights

12 Months Ended

Jan. 30, 2021

Television Distribution Rights [Abstract]

Television Distribution Rights

(4)  Television Distribution Rights

Television distribution rights in the accompanying consolidated balance sheets consisted of the following:

	January 30, 2021		February 1, 2020
Television distribution rights	$	43,655,000	$	—
Less accumulated amortization		(16,902,000)		—
Television distribution rights, net	$	26,753,000	$	—

During fiscal 2020, the Company entered into certain affiliation agreements with television service providers for carriage of the Company’s television programming over their systems, including channel placement rights. The rights provide the Company with a channel position on the service provider's channel line-up. The Company recorded television distribution rights of $43.7 million during fiscal 2020, which represents the present value of payments for the television distribution channel placement. Television distribution rights are amortized on a straight-line basis over the lives of the individual agreements. The remaining weighted average lives of the television distribution rights was 1.4 years as of January 30, 2021. Amortization expense related to the television distribution rights was $16,902,000 for fiscal 2020 and is included in depreciation and amortization within the consolidated statements of operations. Estimated amortization expense is $19,725,000 for fiscal 2021 and $7,028,000 for fiscal 2022. The liability relating to the television distribution rights was $36,530,000 as of January 30, 2021, of which $29,173,000 was classified as current in the accompanying consolidated balance sheets. The long-term portion of the obligations is included in other long term liabilities within the accompanying consolidated balance sheets. Interest expense related to the television distribution rights obligation was $1,443,000 during fiscal 2020.

In addition to the channel placement fees, the Company's affiliation agreements generally provide that it will pay each operator a monthly access fee, most often based on the number of homes receiving the Company's programming, and in some cases marketing support payments. Monthly access fees are expensed as distribution and selling expense within the consolidated statement of operations. See Note 16 – “Commitments and Contingencies” for additional information regarding the Company’s cable and satellite distribution agreements.