XML 19 R9.htm IDEA: XBRL DOCUMENT v3.23.1
Business Segments, Geographic Data, and Sales by Major Customers
 3 Months Ended
Mar. 31, 2023
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, 2023 and 2022 and as of March 31, 2023 and December 31, 2022 are as follows (in thousands):

 

`

  

Three Months Ended

 
   

March 31,

  
   

2023

    

2022

  

Net Sales

                

Toys/Consumer Products

   $ 97,893     $ 111,123  

Costumes

     9,591       9,758  
    $ 107,484     $ 120,881  

 

   

Three Months Ended

 
   

March 31,

  
   

2023

    

2022

  

Income (Loss) from Operations

                

Toys/Consumer Products

   $ (1,161 )   $ 2,007  

Costumes

     (3,239 )     (2,741 )
    $ (4,400 )   $ (734 )

 

   

Three Months Ended

 
   

March 31,

  
   

2023

    

2022

  

Depreciation and Amortization Expense

                

Toys/Consumer Products

   $ 1,160     $ 1,725  

Costumes

     31       87  
    $ 1,191     $ 1,812  

 

   

March 31,

    

December 31,

 
   

2023

    

2022

  

Assets

                

Toys/Consumer Products

   $ 298,215     $ 377,605  

Costumes

     31,171       27,737  
    $ 329,386     $ 405,342  

 

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, 2023 and December 31, 2022 and for the three months ended March 31, 2023 and 2022 (in thousands):

 

   

March 31,

    

December 31,

  
   

2023

    

2022

  

Long-lived Assets

                

China

   $ 15,608     $ 14,161  

United States

     15,224       17,383  

Hong Kong

     1,931       2,142  

United Kingdom

     936       974  

Mexico

     64       69  

Canada

     40       46  
    $ 33,803     $ 34,775  

 

   

Three Months Ended

  
   

March 31,

  
   

2023

    

2022

  

Net Sales by Customer Area

                

United States

   $ 80,443     $ 97,050  

Europe

     10,162       13,389  

Latin America

     9,204       2,385  

Canada

     4,054       3,379  

Australia & New Zealand

     1,608       1,491  

Asia

     1,380       2,076  

Middle East & Africa

     633       1,111  
    $ 107,484     $ 120,881  

 

Major Customers

 

Net sales to major customers for the three months ended March 31, 2023 and 2022 were as follows (in thousands, except for percentages):

 

   

Three Months Ended March 31,

  
   

2023

    

2022

  
           

Percentage

            

Percentage

  
   

Amount

    

of Net Sales

    

Amount

    

of Net Sales

  

Target

   $ 29,404       27.4

%

   $ 35,670       29.5

%

Wal-Mart

     23,283       21.7       23,020       19.0  

Amazon

     6,601       6.1       14,016       11.6  
    $ 59,288       55.2

%

   $ 72,706       60.1

%

 

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.