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Business Segments, Geographic Data, Sales by Product Group and Major Customers | 6 Months Ended
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Jun. 30, 2012
Business Segments, Geographic Data, Sales by Product Group and Major Customers | Note 2 — Business Segments, Geographic Data, Sales by Product Group and Major Customers The Company is a worldwide producer and marketer of children’s toys and other consumer products, principally engaged in the design, development, production, marketing and distribution of its diverse portfolio of products. The Company’s reportable segments are Traditional Toys and Electronics and Role Play, Novelty and Seasonal Toys, each of which includes worldwide sales. The Traditional Toys and Electronics segment includes action figures, vehicles, playsets, plush products, dolls, accessories, electronic products, construction toys, infant and pre-school toys, foot to floor ride-on vehicles, wagons and pet treats and related products. Role Play, Novelty and Seasonal Toys includes role play and dress-up products, Halloween and everyday costume play, novelty toys, seasonal and outdoor products and indoor and outdoor kids’ furniture. Segment performance is measured at the operating income level. All sales are made to external customers, and general corporate expenses have been attributed to the various segments based on sales volumes. Segment assets are comprised of accounts receivable and inventories, net of applicable reserves and allowances, goodwill and other assets. Results are not necessarily those that would be achieved were each segment an unaffiliated business enterprise. Information by segment and a reconciliation to reported amounts for the three and six months ended June 30, 2011 and 2012 and as of December 31, 2011 and June 30, 2012 are as follows (in thousands):
|  | Three Months Ended June 30, |  |  | Six Months Ended June 30, |
|  | 2011 |  |  | 2012 |  |  | 2011 |  |  | 2012 |
Net Sales |  |  |  |  |  |  |  |  |  |  |  |
Traditional Toys and Electronics |  | $ | 67,733 |  |  | $ | 72,027 |  |  | $ | 105,897 |  |  | $ | 113,605 |
Role Play, Novelty and Seasonal Toys |  |  | 64,197 |  |  |  | 73,332 |  |  |  | 98,356 |  |  |  | 105,159 |
|  | $ | 131,930 |  |  | $ | 145,359 |  |  | $ | 204,253 |  |  | $ | 218,764 |
|  | Three Months Ended June 30, |  |  | Six Months Ended June 30, |
|  | 2011 |  |  | 2012 |  |  | 2011 |  |  | 2012 |
Operating Income (Loss) |  |  |  |  |  |  |  |  |  |  |  |
Traditional Toys and Electronics |  | $ | 1,231 |  |  | $ | (2,100 | ) |  | $ | (7,125 | ) |  | $ | (12,956 | )
Role Play, Novelty and Seasonal Toys |  |  | 767 |  |  |  | 2,207 |  |  |  | (5,667 | ) |  |  | (6,347 | )
|  | $ | 1,998 |  |  | $ | 107 |  |  | $ | (12,792 | ) |  | $ | (19,303 | )
|  | Three Months Ended June 30, |  |  | Six Months Ended June 30, |
|  | 2011 |  |  | 2012 |  |  | 2011 |  |  | 2012 |
Depreciation and Amortization Expense |  |  |  |  |  |  |  |  |  |  |  |
Traditional Toys and Electronics |  | $ | 3,932 |  |  |  | 3,552 |  |  | $ | 6,904 |  |  | $ | 5,788 |
Role Play, Novelty and Seasonal Toys |  |  | 2,003 |  |  |  | 1,975 |  |  |  | 2,915 |  |  |  | 2,910 |
|  | $ | 5,935 |  |  |  | 5,527 |  |  | $ | 9,819 |  |  | $ | 8,698 |
|  | December 31, |  |  | June 30, |
|  | 2011 |  |  | 2012 |
Assets |  |  |  |  |  |  |  |
Traditional Toys and Electronics |  | $ | 269,411 |  |  | $ | 272,994 |
Role Play, Novelty and Seasonal Toys |  |  | 345,823 |  |  |  | 342,927 |
|  | $ | 615,234 |  |  | $ | 615,921 |
The following tables present information about the Company by geographic area as of December 31, 2011 and June 30, 2012 and for the three and six months ended June 30, 2011 and 2012 (in thousands):
|  | December 31, 2011 |  |  | June 30, 2012 |
Long-lived Assets |  |  |  |  |  |
United States |  | $ | 4,896 |  |  | $ | 4,076 |
Hong Kong |  |  | 11,290 |  |  |  | 14,716 |
|  | $ | 16,186 |  |  | $ | 18,792 |
|  | Three Months Ended June 30, |  |  | Six Months Ended June 30, |
|  | 2011 |  |  | 2012 |  |  | 2011 |  |  | 2012 |
Net Sales by Geographic Area |  |  |  |  |  |  |  |  |  |  |  |
United States |  | $ | 109,766 |  |  | $ | 115,841 |  |  | $ | 167,233 |  |  | $ | 179,712 |
Europe |  |  | 8,551 |  |  |  | 12,229 |  |  |  | 14,812 |  |  |  | 15,438 |
Canada |  |  | 3,240 |  |  |  | 5,613 |  |  |  | 6,847 |  |  |  | 8,392 |
Hong Kong |  |  | 631 |  |  |  | 876 |  |  |  | 1,472 |  |  |  | 1,105 |
Other |  |  | 9,742 |  |  |  | 10,800 |  |  |  | 13,889 |  |  |  | 14,117 |
|  | $ | 131,930 |  |  | $ | 145,359 |  |  | $ | 204,253 |  |  | $ | 218,764 |
Major Customers Net sales to major customers for the three and six months ended June 30, 2011 and 2012 were as follows (in thousands, except for percentages):
|  | Three Months Ended June 30, |  |  | Six Months Ended June 30, |
|  | 2011 |  |  | 2012 |  |  | 2011 |  |  | 2012 |
|  | Amount |  |  | Percentage of Net Sales |  |  | Amount |  |  | Percentage of Net Sales |  |  | Amount |  |  | Percentage of Net Sales |  |  | Amount |  |  | Percentage of Net Sales |
Target |  | $ | 28,203 |  |  |  | 21.4 | % |  | $ | 26,597 |  |  |  | 18.3 | % |  | $ | 38,132 |  |  |  | 18.7 | % |  | $ | 33,249 |  |  |  | 15.2 | %
Wal-Mart |  |  | 20,154 |  |  |  | 15.3 |  |  |  | 16,167 |  |  |  | 11.1 |  |  |  | 39,630 |  |  |  | 19.4 |  |  |  | 32,293 |  |  |  | 14.8 |
Toys ‘R’ Us |  |  | 11,669 |  |  |  | 8.8 |  |  |  | 10,732 |  |  |  | 7.4 |  |  |  | 21,046 |  |  |  | 10.3 |  |  |  | 21,307 |  |  |  | 9.7 |
|  | $ | 60,026 |  |  |  | 45.5 | % |  | $ | 53,496 |  |  |  | 36.8 | % |  | $ | 98,808 |  |  |  | 48.4 | % |  | $ | 86,849 |  |  |  | 39.7 | %
No other customer accounted for more than 10% of the Company’s total net sales. At December 31, 2011 and June 30, 2012, the Company’s three largest customers accounted for approximately 41.3% and 44.2%, respectively, of net accounts receivable. The concentration of the Company’s business with a relatively small number of customers may expose the Company to material adverse effects if one or more of its large customers were to experience financial difficulty. The Company performs ongoing credit evaluations of its top customers and maintains an allowance for potential credit losses.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 131 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599 Reference 15: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599 + Details
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