XML 54 R11.htm IDEA: XBRL DOCUMENT
v3.20.1

Business Segments, Geographic Data, and Sales by Major Customers | 12 Months Ended
--- | ---
Dec. 31, 2019
Segment Reporting [Abstract] |
Business Segments, Geographic Data, and Sales by Major Customers | Business Segments, Geographic Data, and Sales by 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 has aligned its operating segments into three segments that reflect the management and operation of the business. The Company’s segments are (i) U.S. and Canada, (ii) International and (iii) Halloween. The U.S. and Canada segment includes action figures, vehicles, play sets, plush products, dolls, electronic products, construction toys, infant and pre-school toys, role play and everyday costume play, foot to floor ride-on vehicles, wagons, novelty toys, seasonal and outdoor products, and kids’ indoor and outdoor furniture, and related products. Within the International segment, the Company markets and sells its toy products in markets outside of the U.S. and Canada, primarily in the European, Asia Pacific, and Latin American regions. Within the Halloween segment, the Company markets and sells Halloween costumes and accessories and everyday costume play products, primarily in the U.S. and Canada. Segment performance is measured at the operating income (loss) level. All sales are made to external customers and general corporate expenses have been attributed to the various segments based upon relative sales volumes. Segment assets are primarily comprised of accounts receivable and inventories, net of applicable reserves and allowances, goodwill and other assets. Certain assets which are not tracked by operating segment and/or that benefit multiple operating segments have been allocated on the same basis. Results are not necessarily those which would be achieved if each segment was an unaffiliated business enterprise. Information by segment and a reconciliation to reported amounts as of December 31, 2018 and 2019 and for the three years in the period ended December 31, 2019 are as follows (in thousands):
| Year Ended December 31,
| 2017 |  | 2018 |  | 2019
Net Sales |  |  |  |  |
U.S. and Canada | $ | 406,411 |  |  | $ | 364,313 |  |  | $ | 384,585 |
International | 107,231 |  |  | 101,873 |  |  | 94,453 |
Halloween | 99,469 |  |  | 101,624 |  |  | 119,611 |
| $ | 613,111 |  |  | $ | 567,810 |  |  | $ | 598,649 |
| Year Ended December 31,
| 2017 |  | 2018 |  | 2019
Loss from Operations |  |  |  |  |
U.S. and Canada | $ | (35,720 | ) |  | $ | (11,693 | ) |  | $ | (2,121 | )
International | (13,184 | ) |  | (8,706 | ) |  | (6,007 | )
Halloween | (15,254 | ) |  | (11,774 | ) |  | (9,661 | )
| $ | (64,158 | ) |  | $ | (32,173 | ) |  | $ | (17,789 | )
| Year Ended December 31,
| 2017 |  | 2018 |  | 2019
Depreciation and Amortization Expense |  |  |  |  |
U.S. and Canada | $ | 15,286 |  |  | $ | 12,553 |  |  | $ | 13,130 |
International | 4,079 |  |  | 3,449 |  |  | 3,097 |
Halloween | 1,638 |  |  | 1,079 |  |  | 1,407 |
| $ | 21,003 |  |  | $ | 17,081 |  |  | $ | 17,634 |
| December 31,
| 2018 |  | 2019
Assets |  |  |
U.S. and Canada | $ | 223,877 |  |  | $ | 254,124 |
International | 108,669 |  |  | 102,460 |
Halloween | 10,295 |  |  | 8,638 |
| $ | 342,841 |  |  | $ | 365,222 |
Net revenues are categorized based upon location of the customer, while long-lived assets are categorized based upon the location of the Company’s assets. Tools, dies and molds represent a substantial portion of the long-lived assets included in the United States with a net book value of $15.8 million in 2018 and $11.4 million in 2019 and substantially all of these assets are located in China. The following tables present information about the Company by geographic area as of December 31, 2018 and 2019 and for each of the three years in the period ended December 31, 2019 (in thousands):
| December 31,
| 2018 |  | 2019
Long-lived Assets |  |  |
China | $ | 15,825 |  |  | $ | 11,461 |
United States | 4,920 |  |  | 3,556 |
Hong Kong | 157 |  |  | 242 |
| $ | 20,902 |  |  | $ | 15,259 |
| Year Ended December 31,
| 2017 |  | 2018 |  | 2019
Net Sales by Customer Area |  |  |  |  |
United States | $ | 479,133 |  |  | $ | 439,979 |  |  | $ | 481,309 |
Europe | 71,094 |  |  | 69,646 |  |  | 65,557 |
Canada | 21,882 |  |  | 21,923 |  |  | 19,937 |
Latin America | 21,157 |  |  | 17,827 |  |  | 11,415 |
Asia | 6,514 |  |  | 8,504 |  |  | 10,112 |
Australia and New Zealand | 6,503 |  |  | 5,937 |  |  | 7,870 |
Middle East and Africa | 6,828 |  |  | 3,994 |  |  | 2,449 |
| $ | 613,111 |  |  | $ | 567,810 |  |  | $ | 598,649 |
Major Customers Net sales to major customers were as follows (in thousands, except for percentages):
| 2017 |  | 2018 |  | 2019
| Amount |  | Percentage of Net Sales |  | Amount |  | Percentage of Net Sales |  | Amount |  | Percentage of Net Sales
Wal-Mart | $ | 156,436 |  |  | 25.5 | % |  | $ | 143,587 |  |  | 25.3 | % |  | $ | 177,063 |  |  | 29.6 | %
Target | 108,799 |  |  | 17.8 |  |  | 122,141 |  |  | 21.5 |  |  | 124,709 |  |  | 20.8 |
Toys "R" Us | 69,508 |  |  | 11.3 |  |  | * |  |  | * |  |  | * |  |  | * |
| $ | 334,743 |  |  | 54.6 | % |  | $ | 265,728 |  |  | 46.8 | % |  | $ | 301,772 |  |  | 50.4 | %
* Sales to Toys "R" Us in the applicable periods were less than 10% of total net sales. No other customer accounted for more than 10% of the Company's total net sales. As of December 31, 2018 and 2019, the Company’s three largest customers accounted for approximately 61.4% and 56.9%, respectively, of the Company's gross 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. For the years ended December 31, 2017, 2018 and 2019, the Company recorded bad debt expense (recoveries) of $11.8 million, $9.6 million and ($0.9) million, respectively, primarily due to the bankruptcy and liquidation of Toys "R" Us.

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration