Segment Information

9 Months Ended

Sep. 30, 2016

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 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 it operates 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, Mexico and Puerto Rico, principally under the name Party City.

The Company’s industry segment data for the three months ended September 30, 2016 and September 30, 2015 was as follows:

	Wholesale			Retail			Consolidated
Three Months Ended September 30, 2016
Revenues:
Net sales	$	416,387		$	347,557		$	763,944
Royalties and franchise fees		0			3,568			3,568
Total revenues		416,387			351,125			767,512
Eliminations		(210,562	)		0			(210,562	)
Net revenues	$	205,825		$	351,125		$	556,950
Income from operations	$	35,532		$	1,386		$	36,918
Interest expense, net								22,424
Other income, net								(905	)
Income before income taxes							$	15,399
	Wholesale			Retail			Consolidated
Three Months Ended September 30, 2015
Revenues:
Net sales	$	418,447		$	339,465		$	757,912
Royalties and franchise fees		0			4,027			4,027
Total revenues		418,447			343,492			761,939
Eliminations		(206,532	)		0			(206,532	)
Net revenues	$	211,915		$	343,492		$	555,407
Income (loss) from operations	$	35,860		$	(4,380	)	$	31,480
Interest expense, net								29,554
Other expense, net								79,130
Loss before income taxes							$	(77,204	)

The Company’s industry segment data for the nine months ended September 30, 2016 and September 30, 2015 was as follows:

	Wholesale			Retail		Consolidated
Nine Months Ended September 30, 2016
Revenues:
Net sales	$	945,071		$	1,043,212	$	1,988,283
Royalties and franchise fees		0			11,009		11,009
Total revenues		945,071			1,054,221		1,999,292
Eliminations		(465,189	)		0		(465,189	)
Net revenues	$	479,882		$	1,054,221	$	1,534,103
Income from operations	$	65,669		$	49,285	$	114,954
Interest expense, net							67,857
Other income, net							(4,107	)
Income before income taxes						$	51,204
	Wholesale			Retail		Consolidated
Nine Months Ended September 30, 2015
Revenues:
Net sales	$	923,717		$	1,003,196	$	1,926,913
Royalties and franchise fees		0			12,251		12,251
Total revenues		923,717			1,015,447		1,939,164
Eliminations		(426,132	)		0		(426,132	)
Net revenues	$	497,585		$	1,015,447	$	1,513,032
Income from operations	$	59,882		$	41,669	$	101,551
Interest expense, net							101,430
Other expense, net							126,519
Loss before income taxes						$	(126,398	)