Segment Information

9 Months Ended

Sep. 30, 2014

Segment Reporting [Abstract]

Segment Information

Note 7 – Segment Information

Industry Segments

The Company has two identifiable business segments. The Wholesale segment designs, manufactures, contracts for manufacture and distributes party goods, including paper and plastic tableware, metallic and latex balloons, Halloween and other costumes, accessories, novelties, gifts and stationery throughout the world. The Retail segment operates specialty retail party supply stores in the United States and Canada, principally under the names Party City and Halloween City, and e-commerce websites, principally through the domain name partycity.com. The Retail segment also franchises both individual stores and franchise areas throughout the United States and Puerto Rico, principally under the name Party City.

The Company’s industry segment data for the three months ended September 30, 2014 and September 30, 2013 was as follows:

	Wholesale			Retail			Consolidated
Three Months Ended September 30, 2014
Revenues:
Net sales	$	423,967		$	326,086		$	750,053
Royalties and franchise fees		0			3,990			3,990
Total revenues		423,967			330,076			754,043
Eliminations		(211,382	)		0			(211,382	)
Net revenues	$	212,585		$	330,076		$	542,661
Income (loss) from operations	$	31,804		$	(3,026	)	$	28,778
Interest expense, net								31,023
Other income, net								(116	)
Loss before income taxes							$	(2,129	)

	Wholesale			Retail			Consolidated
Three Months Ended September 30, 2013
Revenues:
Net sales	$	379,629		$	298,657		$	678,286
Royalties and franchise fees		0			3,815			3,815
Total revenues		379,629			302,472			682,101
Eliminations		(194,701	)		0			(194,701	)
Net revenues	$	184,928		$	302,472		$	487,400
Income (loss) from operations	$	29,704		$	(18,967	)	$	10,737
Interest expense, net								32,455
Other expense, net								1,510
Loss before income taxes							$	(23,228	)

The Company’s industry segment data for the nine months ended September 30, 2014 and September 30, 2013 was as follows:

	Wholesale			Retail		Consolidated
Nine Months Ended September 30, 2014
Revenues:
Net sales	$	912,261		$	968,101	$	1,880,362
Royalties and franchise fees		0			12,149		12,149
Total revenues		912,261			980,250		1,892,511
Eliminations		(425,289	)		0		(425,289	)
Net revenues	$	486,972		$	980,250	$	1,467,222
Income from operations	$	58,374		$	26,612	$	84,986
Interest expense, net							92,623
Other expense, net							4,435
Loss before income taxes						$	(12,072	)

	Wholesale			Retail			Consolidated
Nine Months Ended September 30, 2013
Revenues:
Net sales	$	808,834		$	879,348		$	1,688,182
Royalties and franchise fees		0			11,961			11,961
Total revenues		808,834			891,309			1,700,143
Eliminations		(364,966	)		0			(364,966	)
Net revenues	$	443,868		$	891,309		$	1,335,177
Income (loss) from operations	$	43,359		$	(13,853	)	$	29,506
Interest expense, net								98,129
Other expense, net								15,991
Loss before income taxes							$	(84,614	)

Geographic Segments

Intercompany sales between geographic areas primarily consist of sales of finished goods for distribution in foreign markets and are made at cost plus a share of operating profit.