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Business Segments, Geographic Data, and Sales by Major Customers
 12 Months Ended
Dec. 31, 2021
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block]

Note 3—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’s segments are (i) Toys/Consumer Products and (ii) Costumes (formerly known as “Halloween”).

 

The Toys/Consumer Products segment includes action figures, vehicles, play sets, plush products, dolls, electronic products, construction toys, infant and pre-school toys, child-sized and hand-held role play toys 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, and makeup and skincare products under the C'est Moi™ brand.

 

The Costumes segment, under its Disguise branding, designs, develops, markets and sells a wide range of every-day and special occasion dress-up costumes and related accessories in support of Halloween, Carnival, Children’s Day, Book Day/Week, and every-day/any-day costume play.

 

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. 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, 2021 and 2020 and for the three years in the period ended December 31, 2021 are as follows (in thousands):

 

   

Year Ended December 31,

  
   

2021

    

2020

    

2019

  

Net Sales

                        

Toys/Consumer Products

   $ 513,517     $ 427,122     $ 479,038  

Costumes

     107,599       88,750       119,611  
    $ 621,116     $ 515,872     $ 598,649  

 

   

Year Ended December 31,

  
   

2021

    

2020

    

2019

  

Income (Loss) from Operations

                        

Toys/Consumer Products

   $ 39,046     $ 20,002     $ (8,128 )

Costumes

     (279 )     (7,094 )     (9,661 )
    $ 38,767     $ 12,908     $ (17,789 )

 

   

Year Ended December 31,

  
   

2021

    

2020

    

2019

  

Depreciation and Amortization Expense

                        

Toys/Consumer Products

   $ 9,585     $ 10,292     $ 16,227  

Costumes

     666       644       1,407  
    $ 10,251     $ 10,936     $ 17,634  

 

   

December 31,

  
   

2021

    

2020

  

Assets

                

Toys/Consumer Products

   $ 338,266     $ 315,838  

Costumes

     18,781       13,531  
    $ 357,047     $ 329,369  

 

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. The following tables present information about the Company by geographic area as of December 31, 2021 and 2020 and for each of the three years in the period ended December 31, 2021 (in thousands):

 

   

December 31,

  
   

2021

    

2020

  

Long-lived Assets

                

United States

   $ 16,252     $ 23,607  

China

     11,655       10,773  

United Kingdom

     1,270       1,458  

Hong Kong

     770       1,870  

Canada

     73       100  

Mexico

     79       96  
    $ 30,099     $ 37,904  

 

   

Year Ended December 31,

  
   

2021

    

2020

    

2019

  

Net Sales by Customer Area

                        

United States

   $ 512,193     $ 421,222     $ 481,309  

Europe

     60,425       51,885       65,557  

Canada

     17,999       18,486       19,937  

Latin America

     12,606       7,734       11,415  

Asia

     9,232       8,285       10,112  

Australia and New Zealand

     6,423       5,795       7,870  

Middle East and Africa

     2,238       2,465       2,449  
    $ 621,116     $ 515,872     $ 598,649  

 

Major Customers

 

Net sales to major customers were as follows (in thousands, except for percentages):

 

   

2021

    

2020

    

2019

  
   

 

    

Percentage of

    

 

    

Percentage of

    

 

    

Percentage of

  
    Amount     

Net Sales

     Amount     

Net Sales

     Amount     

Net Sales

  

Wal-Mart

   $ 167,260       26.9

%

   $ 150,250       29.1

%

   $ 177,063       29.6

%

Target

     176,561       28.4       132,354       25.7       124,709       20.8  
    $ 343,821       55.3

%

   $ 282,604       54.8

%

   $ 301,772       50.4

%
No other customer accounted for more than 10% of the Company's total net sales.  

 

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.