Television Broadcast Rights

9 Months Ended

Oct. 29, 2022

Television Broadcast Rights.

Television Broadcast Rights

(4)   Television Broadcast Rights

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

	October 29, 2022		January 29, 2022
Television broadcast rights	$	146,653	$	146,200

Less accumulated amortization		(63,547)		(43,858)
Television broadcast rights, net	$	83,106	$	102,342

During the first nine months of fiscal 2022 and full year fiscal 2021, the Company entered into certain affiliation agreements with television service providers for carriage of its television programming over their systems, including channel placement rights, which ensure the Company keeps its channel position on the service provider’s channel line-up during the term. The Company recorded television broadcast rights of $453 and $102,545 during the first nine months of fiscal year 2022 and full year 2021, which represent the present value of payments for the television broadcast rights associated with the channel position placement. Television broadcast rights are amortized on a matching basis over the lives of the individual agreements. The remaining weighted average lives of the television broadcast rights was 3.9 years as of October 29, 2022. Amortization expense related to the television broadcast rights was $6,617 and $19,689 for the three and nine-month periods ended October 29, 2022 and $7,926 and $19,121 for the three and nine-month periods ended October 30, 2021 and is included in depreciation and amortization within the condensed consolidated statements of operations. Estimated broadcast rights amortization expense is $6,014 for the remainder of fiscal 2022, $20,090 for fiscal 2023, $20,877 for fiscal 2024, $21,402 for fiscal 2025, $14,723 for fiscal 2026 and $0 thereafter. The liability relating to the television broadcast rights was $93,862 and $113,189 as of October 29, 2022 and January 29, 2022, of which $30,296 and $31,921 was classified as current in the accompanying condensed consolidated balance sheets, respectively. Interest expense related to the television broadcast rights obligation was $703 and $1,314 during the three and nine-month periods ended October 29, 2022 and $952 and $2,049 during the three and nine-month periods ended October 30, 2021.

In addition to the Company securing broadcast rights for channel position, the Company’s affiliation agreements generally provide that it will pay each operator a monthly service fee, most often based on the number of homes receiving the Company’s programming, and in some cases marketing support payments. Monthly service fees are expensed as distribution and selling expense within the condensed consolidated statements of operations.