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Business Segments, Geographic Data, and Sales by Major Customers
 3 Months Ended
Mar. 31, 2022
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block]

Note 2 — 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.

 

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.

 

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 for the three months ended March 31, 2022 and 2021 and as of March 31, 2022 and December 31, 2021 are as follows (in thousands):

 

 

  

Three Months Ended

 
   

March 31,

  
   

2022

    

2021

  

Net Sales

                

Toys/Consumer Products

   $ 111,123     $ 79,875  

Costumes

     9,758       3,968  
    $ 120,881     $ 83,843  

 

   

Three Months Ended

 
   

March 31,

  
   

2022

    

2021

  

Income (Loss) from Operations

                

Toys/Consumer Products

   $ 2,007     $ 356  

Costumes

     (2,741 )     (3,079 )
    $ (734 )   $ (2,723 )

 

   

Three Months Ended

 
   

March 31,

  
   

2022

    

2021

  

Depreciation and Amortization Expense

                

Toys/Consumer Products

   $ 1,725     $ 1,727  

Costumes

     87       66  
    $ 1,812     $ 1,793  

 

   

March 31,

    

December 31,

  
   

2022

    

2021

  

Assets

                

Toys/Consumer Products

   $ 292,362     $ 338,266  

Costumes

     23,407       18,781  
    $ 315,769     $ 357,047  

 

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 March 31, 2022 and December 31, 2021 and for the three months ended March 31, 2022 and 2021 (in thousands):

 

   

March 31,

    

December 31,

  
   

2022

    

2021

  

Long-lived Assets

                

United States

   $ 13,999     $ 16,252  

China

     12,758       11,655  

Hong Kong

     2,947       770  

United Kingdom

     1,182       1,270  

Mexico

     79       79  

Canada

     68       73  
    $ 31,033     $ 30,099  

 

   

Three Months Ended

  
   

March 31,

  
   

2022

    

2021

  

Net Sales by Customer Area

                

United States

   $ 97,050     $ 68,916  

Europe

     13,389       7,337  

Canada

     3,379       2,101  

Latin America

     2,385       2,455  

Asia

     2,076       1,415  

Australia & New Zealand

     1,491       1,188  

Middle East & Africa

     1,111       431  
    $ 120,881     $ 83,843  

 

Major Customers

 

Net sales to major customers for the three months ended March 31, 2022 and 2021 were as follows (in thousands, except for percentages):

 

   

Three Months Ended March 31,

  
   

2022

    

2021

  
           

Percentage

            

Percentage

  
   

Amount

    

of Net Sales

    

Amount

    

of Net Sales

  

Target

   $ 35,670       29.5

%

   $ 22,753       27.1

%

Wal-Mart

     23,020       19.0       21,638       25.8  

Amazon

     14,016       11.6       8,034       9.6  
    $ 72,706       60.1

%

   $ 52,425       62.5

%

 

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.