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Business Segments, Geographic Data, and Sales by Major Customers
 12 Months Ended
Dec. 31, 2023
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.

 

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 as of December 31, 2023 and 2022 and for the three years in the period ended December 31, 2023 are as follows (in thousands):

 

   

Year Ended December 31,

  
   

2023

    

2022

    

2021

  

Net Sales

                        

Toys/Consumer Products

   $ 580,686     $ 647,317     $ 513,517  

Costumes

     130,871       148,870       107,599  
    $ 711,557     $ 796,187     $ 621,116  

 

   

Year Ended December 31,

  
   

2023

    

2022

    

2021

  

Income (Loss) from Operations

                        

Toys/Consumer Products

   $ 60,927     $ 62,698     $ 39,046  

Costumes

     (1,820 )     (1,728 )     (279 )
    $ 59,107     $ 60,970     $ 38,767  

 

   

Year Ended December 31,

  
   

2023

    

2022

    

2021

  

Depreciation and Amortization Expense

          

Toys/Consumer Products

   $ 8,409     $ 10,182     $ 9,585  

Costumes

     176       396       666  
    $ 8,585     $ 10,578     $ 10,251  

 

   

December 31,

  
   

2023

    

2022

  

Assets

                

Toys/Consumer Products

   $ 383,812     $ 377,605  

Costumes

     15,139       27,737  
    $ 398,951     $ 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 December 31, 2023 and 2022 and for each of the three years in the period ended December 31, 2023 (in thousands):

 

   

Year Ended December 31,

  
   

2023

    

2022

    

2021

  

Net Sales by Customer Area

                        

United States

   $ 557,865     $ 644,295     $ 512,193  

Europe

     76,464       85,348       60,425  

Latin America

     32,024       18,338       12,606  

Canada

     26,992       26,515       17,999  

Asia

     8,543       10,431       9,232  

Australia and New Zealand

     7,542       8,836       6,423  

Middle East and Africa

     2,127       2,424       2,238  
    $ 711,557     $ 796,187     $ 621,116  

 

   

December 31,

  
   

2023

    

2022

  

Long-lived Assets

                

United States

   $ 21,206     $ 17,383  

China

     13,794       14,161  

Hong Kong

     1,410       2,142  

United Kingdom

     892       974  

Italy

     811       —  

Mexico

     55       46  

Canada

     23       69  
    $ 38,191     $ 34,775  

 

Major Customers

 

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

 

   

2023

    

2022

    

2021

  
           

Percentage of

            

Percentage of

            

Percentage of

  
   

Amount

   

Net Sales

    

Amount

   

Net Sales

    

Amount

    

Net Sales

  

Target

   $ 215,211       30.3 %   $ 203,200       25.5 %   $ 176,561       28.4 %

Walmart

     148,354       20.8       226,318       28.4       167,260       26.9  

Amazon

     74,878       10.5       66,393       8.3       59,973       9.7  
    $ 438,443       61.6 %   $ 495,911       62.2 %   $ 403,794       65.0 %

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.