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Business Segments, Geographic Data, and Sales by Major Customers | 3 Months Ended
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Mar. 31, 2020
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 recently re-aligned its products into two reporting segments to better reflect the management and operation of the business. The Company’s segments are (i) Toys/Consumer Products and (ii) Halloween. Prior year’s segment reporting has been restated to reflect this change. The Toys/Consumer Products 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, kids’ indoor and outdoor furniture, and related products. 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 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. 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 for the three months ended March 31, 2020 and 2019 and as of March 31, 2020 and December 31, 2019 are as follows (in thousands):
| Three Months Ended March 31, |  |  |  |  |  |
| 2020 |  | 2019 |  |  |  |
Net Sales |  |  |  |  |  |  |
Toys/Consumer Products | $ | 62,565 |  |  | $ | 67,186 |  |  |  |  |
Halloween | 3,992 |  |  | 3,640 |  |  |  |  |
| $ | 66,557 |  |  | $ | 70,826 |  |  |  |  |
| Three Months Ended March 31, |  |  |  |  |  |
| 2020 |  | 2019 |  |  |  |
Loss from Operations |  |  |  |  |  |  |
Toys/Consumer Products | $ | (12,739) |  |  | $ | (19,877) |  |  |  |  |
Halloween | (3,247) |  |  | (4,164) |  |  |  |  |
| $ | (15,986) |  |  | $ | (24,041) |  |  |  |  |
| Three Months Ended March 31, |  |  |  |  |  |
| 2020 |  | 2019 |  |  |  |
Depreciation and Amortization Expense |  |  |  |  |  |  |
Toys/Consumer Products | $ | 1,824 |  |  | $ | 3,137 |  |  |  |  |
Halloween | 58 |  |  | 97 |  |  |  |  |
| $ | 1,882 |  |  | $ | 3,234 |  |  |  |  |
| March 31, 2020 |  | December 31, 2019
Assets |  |  |
Toys/Consumer Products | $ | 266,365 |  |  | $ | 356,584 |
Halloween | 10,548 |  |  | 8,638 |
| $ | 276,913 |  |  | $ | 365,222 |
The following tables present information about the Company by geographic area as of March 31, 2020 and December 31, 2019 and for the three months ended March 31, 2020 and 2019 (in thousands):
| March 31, 2020 |  | December 31, 2019
Long-lived Assets |  |  |
China | $ | 11,846 |  |  | $ | 11,461 |
United States | 3,329 |  |  | 3,556 |
Hong Kong | 224 |  |  | 242 |
| $ | 15,399 |  |  | $ | 15,259 |
| Three Months Ended March 31, |  |  |  |  |  |
| 2020 |  | 2019 |  |  |  |
Net Sales by Customer Area |  |  |  |  |  |  |
United States | $ | 51,918 |  |  |  | $ | 57,558 |  |  |  |  |
Europe | 7,618 |  |  |  | 7,191 |  |  |  |  |
Canada | 2,348 |  |  |  | 2,560 |  |  |  |  |
Asia | 1,770 |  |  |  | 1,591 |  |  |  |  |
Australia & New Zealand | 1,531 |  |  |  | 906 |  |  |  |  |
Latin America | 1,000 |  |  |  | 865 |  |  |  |  |
Middle East & Africa | 372 |  |  |  | 155 |  |  |  |  |
| $ | 66,557 |  |  | $ | 70,826 |  |  |  |  |
Major Customers Net sales to major customers for the three months ended March 31, 2020 and 2019 were as follows (in thousands, except for percentages):
| Three Months Ended March 31, |  |  |  |  |  |  |  |  |  |  |  |  |  |
| 2020 |  |  |  | 2019 |  |  |  |  |  |  |  |  |  |
| Amount |  | Percentage of Net Sales |  | Amount |  | Percentage of Net Sales |  |  |  |  |  |  |  |
Wal-Mart | $ | 18,510 |  |  | 27.8 | % |  | $ | 22,109 |  |  | 31.2 | % |  |  |  |  |  |  |  |
Target | 14,615 |  |  | 22.0 |  |  | 12,179 |  |  | 17.2 |  |  |  |  |  |  |  |  |
| $ | 33,125 |  |  | 49.8 | % |  | $ | 34,288 |  |  | 48.4 | % |  |  |  |  |  |  |  |
No other customer accounted for more than 10% of the Company's total net sales. As of March 31, 2020 and December 31, 2019, the Company’s three largest customers accounted for approximately 76.7% 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.

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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