Business Segments, Geographic Data, and Sales by Major Customers

12 Months Ended

Dec. 31, 2020

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 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, 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.

Within the Halloween segment, the Company markets and sells Halloween costumes and accessories and everyday costume play products.

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 various 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, 2020 and 2019 and for the three years in the period ended December 31, 2020 are as follows (in thousands):

	Year Ended December 31,
	2020		2019		2018
Net Sales
Toys/Consumer Products	$	427,122	$	479,038	$	466,186
Halloween		88,750		119,611		101,624
	$	515,872	$	598,649	$	567,810

	Year Ended December 31,
	2020			2019			2018
Income (Loss) from Operations
Toys/Consumer Products	$	20,002		$	(8,128	)	$	(20,399	)
Halloween		(7,094	)		(9,661	)		(11,774	)
	$	12,908		$	(17,789	)	$	(32,173	)

	Year Ended December 31,
	2020		2019		2018
Depreciation and Amortization Expense
Toys/Consumer Products	$	10,292	$	16,227	$	16,002
Halloween		644		1,407		1,079
	$	10,936	$	17,634	$	17,081

	December 31,
	2020		2019
Assets
Toys/Consumer Products	$	315,838	$	356,584
Halloween		13,531		8,638
	$	329,369	$	365,222

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, 2020 and 2019 and for each of the three years in the period ended December 31, 2020 (in thousands):

	December 31,
	2020		2019
Long-lived Assets
United States	$	23,607	$	31,175
China		10,773		11,461
Hong Kong		1,870		2,937
United Kingdom		1,458		1,633
Canada		100		134
Mexico		96		—
	$	37,904	$	47,340

	Year Ended December 31,
	2020		2019		2018
Net Sales by Customer Area
United States	$	421,222	$	481,309	$	439,979
Europe		51,885		65,557		69,646
Canada		18,486		19,937		21,923
Asia		8,285		10,112		8,504
Latin America		7,734		11,415		17,827
Australia and New Zealand		5,795		7,870		5,937
Middle East and Africa		2,465		2,449		3,994
	$	515,872	$	598,649	$	567,810

Major Customers

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

	2020					2019					2018
	Amount		Percentage of Net Sales			Amount		Percentage of Net Sales			Amount		Percentage of Net Sales
Wal-Mart	$	150,250		29.1	%	$	177,063		29.6	%	$	143,587		25.3	%
Target		132,354		25.7			124,709		20.8			122,141		21.5
	$	282,604		54.8	%	$	301,772		50.4	%	$	265,728		46.8	%

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.