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, role play 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.

Within the Halloween segment, the Company markets and sells Halloween costumes and accessories and everyday costume play products, primarily in the U.S. and Canada.

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.

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, 2020 and 2019 and as of March 31, 2020 and December 31, 2019 are as follows (in thousands):


	Three Months Ended March 31,
	2020		2019
Net Sales
Toys/Consumer Products	$	62,565	$	67,186

Halloween	3,992		3,640
	$	66,557	$	70,826


	Three Months Ended March 31,
	2020		2019
Loss from Operations
Toys/Consumer Products	$	(12,739)	$	(19,877)

Halloween	(3,247)		(4,164)
	$	(15,986)	$	(24,041)


	Three Months Ended March 31,
	2020		2019
Depreciation and Amortization Expense
Toys/Consumer Products	$	1,824	$	3,137

Halloween	58		97
	$	1,882	$	3,234


	March 31, 2020		December 31, 2019
Assets
Toys/Consumer Products	$	266,365	$	356,584

Halloween	10,548		8,638
	$	276,913	$	365,222

The following tables present information about the Company by geographic area as of March 31, 2020 and December 31, 2019 and for the three months ended March 31, 2020 and 2019 (in thousands):


	March 31, 2020		December 31, 2019
Long-lived Assets
China	$	11,846	$	11,461
United States	3,329		3,556
Hong Kong	224		242
	$	15,399	$	15,259


	Three Months Ended March 31,
	2020		2019
Net Sales by Customer Area
United States	$	51,918	$	57,558
Europe	7,618		7,191
Canada	2,348		2,560
Asia	1,770		1,591
Australia & New Zealand	1,531		906
Latin America	1,000		865
Middle East & Africa	372		155
	$	66,557	$	70,826

Net sales to major customers for the three months ended March 31, 2020 and 2019 were as follows (in thousands, except for percentages):


	Three Months Ended March 31,
	2020						2019
	Amount		Percentage of Net Sales		Amount		Percentage of Net Sales
Wal-Mart	$	18,510	27.8	%	$	22,109	31.2	%
Target	14,615		22.0		12,179		17.2
	$	33,125	49.8	%	$	34,288	48.4	%

As of March 31, 2020 and December 31, 2019, the Company’s three largest customers accounted for approximately 76.7% and 56.9%, respectively, of the Company’s gross accounts receivable. 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.