What this is
How much of Jazwares’ $159m purchase of Wicked Cool Toys was paid for licence rights: $83.9m, or 53%, written off over 8 years to about September 2027.
How it’s built
- From Alleghany’s 2019 annual report: price $159.0m, of which goodwill $39.1m, licence agreements $83.9m, other intangibles $24.9m; the remaining $11.1m is other net assets.
- $83.9m ÷ 8 years = $10.5m a year; 1 October 2019 plus 8 years is about September 2027.
What we assumed
- The 8-year life applies to the Pokémon licence.It is the weighted average life of all licences acquired, not a stated Pokémon term.
- The licence value is written off evenly.Straight-line is the usual method; the filing gives the life, not the pattern.
Sanity check
It shows what a buyer paid for licence rights in 2019, not a royalty rate, and the licences include brands other than Pokémon.
Where it comes from
Our calculation from other figures in the trainer’s notes.
Show the working
- Licence intangible share of price: 0.528
- Straight line amortisation $ million per year: 10.5
- Economic life years: 8
- Horizon if from 1 October 2019: ≈September 2027
- 83.9/159.0 = 52.8%
- 83.9/8 = 10.5 USDm/yr
- 159.0-39.1-83.9-24.9 = 11.1 USDm
- 2019-10-01 + 8y = 2027-09