Geographic Information And Concentration Of Risk

6 Months Ended

Jun. 30, 2011

Geographic Information And Concentration Of Risk [Abstract]

GEOGRAPHIC INFORMATION AND CONCENTRATION OF RISK

NOTE 6 — GEOGRAPHIC INFORMATION AND CONCENTRATION OF RISK

The following tables present net sales and total assets of the Company by geographic area (in thousands) for the periods shown:

	Three Months ended June 30,				Six Months ended June 30,
Net sales	2011		2010		2011		2010
Net domestic sales	$	58,278	$	65,670	$	115,266	$	124,523
Net foreign sales (Australia and United Kingdom)*		2,014		2,251		4,862		4,872
Total net sales	$	60,292	$	67,921	$	120,128	$	129,395

	June 30,		December 31,
Assets	2011		2010
Domestic assets	$	224,636	$	237,982
Foreign assets (Australia and United Kingdom)		6,278		4,514
Total assets	$	230,914	$	242,496

* Excludes export sales from the United States.

The Company currently categorizes its sales in five product categories: Soft Good Basics, Hard Good Basics, Accessories and Décor, Toys and Entertainment and Other. Soft Good Basics includes bedding, blankets and mattresses. Hard Good Basics includes cribs and other nursery furniture, feeding, food preparation and kitchen products, baby gear and organizers. Accessories and Décor includes hampers, lamps, rugs and décor. Toys and Entertainment includes developmental toys, bath toys and mobiles. Other includes all other products that do not fit in the above four categories. The Company’s consolidated net sales by product category, as a percentage of total consolidated net sales, for the three and six months ended June 30, 2011 and 2010 were as follows:

	Three months ended June 30,						Six months ended June 30,
	2011			2010			2011			2010
Soft Good Basics		41.1	%		38.1	%		38.9	%		39.8	%
Hard Good Basics		34.2	%		39.6	%		34.8	%		38.9	%
Accessories and Décor		11.3	%		10.1	%		11.0	%		10.0	%
Toys and Entertainment		12.1	%		11.4	%		13.8	%		10.6	%
Other		1.3	%		0.8	%		1.5	%		0.7	%
Total		100.0	%		100.0	%		100.0	%		100.0	%

Customers who account for a significant percentage of the Company’s net sales are shown in the table below:

	Three months ended June 30,						Six months ended June 30,
	2011			2010			2011			2010
Toys “R” Us, Inc. and Babies “R” Us, Inc.		39.4	%		52.1	%		39.7	%		49.1	%
Walmart		11.7	%		8.1	%		12.8	%		7.7	%
Target		8.2	%		10.4	%		8.9	%		10.3	%

The loss of these customers or any other significant customers, or a significant reduction in the volume of business conducted with such customers, could have a material adverse impact on the Company. The Company does not normally require collateral or other security to support credit sales.

As part of its ongoing risk assessment procedures, the Company monitors concentrations of credit risk associated with financial institutions with which it conducts business. The Company seeks to avoid concentration with any single financial institution. The Company also monitors the creditworthiness of its customers to which it grants credit terms in the normal course of business.

During the six months ended June 30, 2011, approximately 76% of the Company’s dollar volume of purchases was attributable to manufacturing in the People’s Republic of China (“PRC”), compared to 72% for the three months ended June 30, 2010. The PRC currently enjoys “permanent normal trade relations” (“PNTR”) status under U.S. tariff laws, which provides a favorable category of U.S. import duties. The loss of such PNTR status would result in a substantial increase in the import duty for products manufactured for the Company in the PRC and imported into the United States and would result in increased costs for the Company. In addition, certain categories of wooden bedroom furniture imported from the PRC by the Company’s LaJobi subsidiary are also subject to anti-dumping duties. For a discussion of charges taken in the three months ended March 31, 2011 and June 30, 2011, respectively, and the fourth quarter and year ended December 31, 2010, for anticipated anti-dumping duties(and related interest) and other actions taken by the Company in connection with a “Focused Assessment” of LaJobi’s import practices, see Note 10. The Company has discontinued the practices that resulted in the charge for anticipated anti-dumping duties.

The supplier accounting for the greatest dollar volume of the Company’s purchases accounted for approximately 19% of such purchases for each of the six months ended June 30, 2011 and 2010. The five largest suppliers accounted for approximately 45% of the Company’s purchases in the aggregate for each of the six months ended June 30, 2011 and 2010.