Segment Information

6 Months Ended

Jun. 30, 2021

Segment Reporting [Abstract]

Segment Information

Note 10 – Segment Information

Industry Segments

The Company has two reportable operating 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 and stationery throughout the world. The Retail segment operates specialty retail party supply stores in the United States, principally under the names Party City and Halloween City, and it operates e-commerce websites, principally through the domain name PartyCity.com. The Company’s reportable operating segment data for the three months ended June 30, 2021 and June 31, 2020 was as follows:

	Wholesale			Retail		Consolidated
Three Months Ended June 30, 2021
Net sales*	$	230,961		$	443,812	$	674,773
Eliminations		(139,027	)		—		(139,027	)
Net revenues		91,934			443,812		535,746
Gross Profit*	$	23,607		$	193,565	$	217,172
(Loss) income from operations	$	(3,225	)	$	65,061	$	61,836
Interest expense, net							23,116
Other (income), net							(1,300	)
Income before income taxes						$	40,020

	Wholesale			Retail			Consolidated
Three Months Ended June 30, 2020
Net sales*	$	131,296		$	185,782		$	317,078
Eliminations		(62,387	)		—			(62,387	)
Net revenues		68,909			185,782			254,691
Gross Profit*	$	(13,118	)	$	29,902		$	16,784
Loss from operations	$	(55,892	)	$	(70,902	)	$	(126,794	)
Interest expense, net								25,412
Other expense, net								1,484
Loss before income taxes							$	(153,690	)

The company's reportable operating segment data for the six months ended June 30, 2021 and 2020 was as follows:

	Wholesale			Retail		Consolidated
Six Months Ended June 30, 2021
Net sales*	$	443,098		$	777,094	$	1,220,192
Eliminations		(257,639	)		—		(257,639	)
Net revenues		185,459			777,094		962,553
Gross Profit*	$	52,715		$	316,743	$	369,458
Income from operations	$	(3,817	)	$	65,707	$	61,890
Interest expense, net							40,330
Other (income), net							(873	)
Income before income taxes						$	22,433

	Wholesale			Retail			Consolidated
Six Months Ended June 30, 2020
Net sales*	$	346,094		$	488,758		$	834,852
Eliminations		(166,118	)		—			(166,118	)
Net revenues		179,976			488,758			668,734
Gross Profit*	$	8,225		$	125,845		$	134,070
Loss from operations	$	(219,440	)	$	(518,724	)	$	(738,164	)
Interest expense, net								50,532
Other expense, net								7,160
Loss before income taxes							$	(795,856	)

*Includes royalties and franchise fees. Prior year amounts conformed to current year presentation.

In 2019, the Company initiated a store optimization program under which the Company identified approximately 55 Party City stores to be closed, out of which 35 stores were closed in 2019 and 20 stores were closed in January 2020. In addition, in the first quarter of 2020, 21 stores were identified for closure and were closed throughout 2020. In conjunction with the program, during the three and six months ended June 30, 2020 the Company’s retail segment recorded $1,164 and $30,588 of store impairment and restructuring charges, respectively. See Note 4 – Goodwill, Intangibles and Long-Lived Assets Impairment for further detail.

In January 2021, the Company closed the previously disclosed sale of a substantial portion of its international operations. See 5 – Disposition of Asset Note 5 – Disposition of Assets for further detail.