Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2021 | Oct. 22, 2021 | |
Cover [Abstract] | ||
Entity Registrant Name | Party City Holdco Inc. | |
Document Type | 10-Q | |
Trading Symbol | PRTY | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 112,225,383 | |
Amendment Flag | false | |
Entity Central Index Key | 0001592058 | |
Entity Filer Category | Accelerated Filer | |
Document Period End Date | Sep. 30, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Security Exchange Name | NYSE | |
Entity File Number | 001-37344 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 46-0539758 | |
Entity Address, Address Line One | 80 Grasslands Road | |
Entity Address, City or Town | Elmsford | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10523 | |
City Area Code | 914 | |
Local Phone Number | 345-2020 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Title of 12(b) Security | Common Stock, Par Value: $0.01/share |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 |
Current assets: | |||
Cash and cash equivalents | $ 60,740 | $ 119,532 | $ 170,562 |
Accounts receivable, net | 100,946 | 90,879 | 149,825 |
Inventories, net | 520,046 | 412,285 | 630,357 |
Prepaid expenses and other current assets | 85,004 | 45,905 | 112,038 |
Income tax receivable | 56,361 | 57,549 | 0 |
Assets held for sale, net | 0 | 83,110 | 0 |
Total current assets | 823,097 | 809,260 | 1,062,782 |
Property, plant and equipment, net | 213,959 | 209,412 | 206,447 |
Operating lease asset | 700,668 | 700,087 | 741,524 |
Goodwill | 662,163 | 661,251 | 669,564 |
Trade names | 383,733 | 384,428 | 383,666 |
Other intangible assets, net | 25,821 | 32,134 | 34,505 |
Other assets, net | 27,385 | 9,883 | 9,521 |
Total assets | 2,836,826 | 2,806,455 | 3,108,009 |
Current liabilities: | |||
Loans and notes payable | 187,084 | 175,707 | 303,894 |
Accounts payable | 167,445 | 118,928 | 179,938 |
Accrued expenses | 178,155 | 160,605 | 202,636 |
Liabilities held for sale | 0 | 68,492 | 0 |
Current portion of operating lease liability | 131,653 | 176,045 | 194,476 |
Income taxes payable | 0 | 524 | 0 |
Current portion of long-term obligations | 1,297 | 13,576 | 14,342 |
Total current liabilities | 665,634 | 713,877 | 895,286 |
Long-term obligations, excluding current portion | 1,350,886 | 1,329,808 | 1,334,338 |
Long-term portion of operating lease liability | 639,560 | 654,729 | 677,183 |
Deferred income tax liabilities, net | 43,537 | 34,705 | 49,508 |
Other long-term liabilities | 34,718 | 22,815 | 15,559 |
Total liabilities | 2,734,335 | 2,755,934 | 2,971,874 |
Commitments and contingencies | |||
Stockholders’ equity: | |||
Common stock (112,194,330, 110,781,613 and 110,573,555 shares outstanding and 123,816,514, 122,061,711 and 121,848,074 shares issued at September 30, 2021, December 31, 2020, and September 30, 2020, respectively) | 1,384 | 1,373 | 1,371 |
Additional paid-in capital | 980,399 | 971,972 | 970,145 |
Accumulated deficit | (552,445) | (565,457) | (469,040) |
Accumulated other comprehensive income (loss) | 3,128 | (29,916) | (38,907) |
Total Party City Holdco Inc. stockholders’ equity before common stock held in treasury | 432,466 | 377,972 | 463,569 |
Less: Common stock held in treasury, at cost (11,622,184, 11,280,098 and 11,274,519 shares at September 30, 2021, December 31, 2020, and June 30, 2020, respectively) | (329,975) | (327,182) | (327,170) |
Total Party City Holdco Inc. stockholders’ equity | 102,491 | 50,790 | 136,399 |
Noncontrolling interests | 0 | (269) | (264) |
Total stockholders’ equity | 102,491 | 50,521 | 136,135 |
Total liabilities and stockholders’ equity | $ 2,836,826 | $ 2,806,455 | $ 3,108,009 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - shares | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 |
Statement of Financial Position [Abstract] | ||||
Common stock, shares outstanding | 112,194,330 | 110,781,613 | 110,573,555 | |
Common stock, shares issued | 123,816,514 | 122,061,711 | 121,848,074 | |
Treasury stock, shares | 11,622,184 | 11,280,098 | 11,274,519 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Statement [Abstract] | ||||
Net sales* | $ 510,199 | $ 533,775 | $ 1,472,752 | $ 1,202,509 |
Cost of sales | 326,501 | 355,923 | 919,596 | 890,587 |
Gross profit | 183,698 | 177,852 | 553,156 | 311,922 |
Wholesale selling expenses | 7,503 | 11,950 | 23,977 | 37,115 |
Retail operating expenses | 105,206 | 97,100 | 291,281 | 250,502 |
General and administrative expenses | 45,495 | 44,986 | 137,328 | 174,275 |
Art and development costs | 5,440 | 4,257 | 15,415 | 13,095 |
Store impairment and restructuring charges | 1,926 | 0 | 20,818 | |
Loss on disposal of assets in international operations | 0 | 3,211 | 0 | |
Goodwill, intangibles and long-lived assets impairment | 44,732 | 0 | 581,380 | |
Income (loss) from operations | 20,054 | (27,099) | 81,944 | (765,263) |
Interest expense, net | 23,899 | 13,422 | 64,229 | 63,954 |
Other (income) expense, net | (1,444) | (2,873) | (2,317) | (4,287) |
(Gain) on debt refinancing | (273,149) | (1,105) | (273,149) | |
(Loss) income before income taxes | (2,401) | 235,501 | 20,032 | (560,355) |
Income tax (benefit) expense | 388 | (4,164) | 7,128 | (128,293) |
Net (loss) income | (2,789) | 239,665 | 12,904 | (432,062) |
Less: Net (loss) attributable to noncontrolling interests | 0 | (42) | (54) | (241) |
Net (loss) income attributable to common shareholders of Party City Holdco Inc. | $ (2,789) | $ 239,707 | $ 12,958 | $ (431,821) |
Net (loss) income per share attributable to common shareholders of Party City Holdco Inc. -Basic | $ (0.02) | $ 2.25 | $ 0.12 | $ (4.41) |
Net (loss) income per share attributable to common shareholders of Party City Holdco Inc. -Diluted | $ (0.02) | $ 2.24 | $ 0.11 | $ (4.41) |
Weighted-average number of common shares-Basic | 112,037,224 | 106,709,307 | 111,431,623 | 97,872,174 |
Weighted-average number of common shares-Diluted | 112,037,224 | 106,875,631 | 115,822,121 | 97,872,174 |
Dividends declared per share | $ 0 | $ 0 | $ 0 | $ 0 |
Comprehensive (loss) income | $ (5,753) | $ 244,607 | $ 45,989 | $ (435,235) |
Less: Comprehensive (loss) attributable to noncontrolling interests | (24) | (42) | (54) | (241) |
Comprehensive (loss) income attributable to common shareholders of Party City Holdco Inc. | $ (5,729) | $ 244,649 | $ 46,043 | $ (434,994) |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Time-Based Units [Member] | Performance-Based Units [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Additional Paid-in Capital [Member]Time-Based Units [Member] | Additional Paid-in Capital [Member]Performance-Based Units [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total Party City Holdco Inc. Stockholders' Equity Before Common Stock Held In Treasury [Member] | Total Party City Holdco Inc. Stockholders' Equity Before Common Stock Held In Treasury [Member]Time-Based Units [Member] | Total Party City Holdco Inc. Stockholders' Equity Before Common Stock Held In Treasury [Member]Performance-Based Units [Member] | Common Stock Held In Treasury [Member] | Total Party City Holdco Inc. Stockholders' Equity [Member] | Total Party City Holdco Inc. Stockholders' Equity [Member]Time-Based Units [Member] | Total Party City Holdco Inc. Stockholders' Equity [Member]Performance-Based Units [Member] | Non-Controlling Interests [Member] |
Balance at Dec. 31, 2019 | $ 529,721 | $ 1,211 | $ 928,573 | $ (37,219) | $ (35,734) | $ 856,831 | $ (327,086) | $ 529,745 | $ (24) | ||||||||
Net income (loss) | (432,062) | (431,821) | (431,821) | (431,821) | (241) | ||||||||||||
Stock option expense | $ 671 | $ 7,847 | $ 671 | $ 7,847 | $ 671 | $ 7,847 | $ 671 | $ 7,847 | |||||||||
Restricted stock units | 1,568 | 481 | 1,568 | 481 | 1,568 | 481 | 1,568 | 481 | |||||||||
Director – non-cash compensation | 75 | 75 | 75 | 75 | |||||||||||||
Warrant expense | 1,033 | 1,033 | 1,033 | 1,033 | |||||||||||||
Acquired non-controlling interest | 2,317 | 2,316 | 2,316 | 2,316 | 1 | ||||||||||||
Treasury stock purchases | (84) | (84) | (84) | ||||||||||||||
Issuance of Stock for Debt exchange including costs | 27,741 | 160 | 27,581 | 27,741 | 27,741 | ||||||||||||
Foreign currency adjustments | (3,111) | (3,111) | (3,111) | (3,111) | |||||||||||||
Impact of foreign exchange contracts, net | (62) | (62) | (62) | (62) | |||||||||||||
Balance at Sep. 30, 2020 | 136,135 | 1,371 | 970,145 | (469,040) | (38,907) | 463,569 | (327,170) | 136,399 | (264) | ||||||||
Balance at Jun. 30, 2020 | (137,016) | 1,211 | 941,745 | (708,747) | (43,849) | 190,360 | (327,170) | (136,810) | (206) | ||||||||
Net income (loss) | 239,665 | 239,707 | 239,707 | 239,707 | (42) | ||||||||||||
Stock option expense | 111 | 111 | 111 | 111 | |||||||||||||
Restricted stock units | 429 | 481 | 429 | 481 | 429 | 481 | 429 | 481 | |||||||||
Acquired non-controlling interest | (218) | (202) | (202) | (202) | (16) | ||||||||||||
Issuance of Stock for Debt exchange including costs | 27,741 | 160 | 27,581 | 27,741 | 27,741 | ||||||||||||
Foreign currency adjustments | 5,076 | 5,076 | 5,076 | 5,076 | |||||||||||||
Impact of foreign exchange contracts, net | (134) | (134) | (134) | (134) | |||||||||||||
Balance at Sep. 30, 2020 | 136,135 | 1,371 | 970,145 | (469,040) | (38,907) | 463,569 | (327,170) | 136,399 | (264) | ||||||||
Balance at Dec. 31, 2020 | 50,521 | 1,373 | 971,972 | (565,457) | (29,916) | 377,972 | (327,182) | 50,790 | (269) | ||||||||
Net income (loss) | (12,904) | (12,958) | (12,958) | (12,958) | 54 | ||||||||||||
Stock option expense | 310 | 310 | 310 | 310 | |||||||||||||
Restricted stock units | 1,643 | 2,706 | 1,643 | 2,706 | 1,643 | 2,706 | 1,643 | 2,706 | |||||||||
Director – non-cash compensation | 171 | 171 | 171 | 171 | |||||||||||||
Warrant exercise | 4 | (4) | |||||||||||||||
Disposed non-controlling interest | (323) | 323 | |||||||||||||||
Treasury stock purchases | (2,793) | (2,793) | (2,793) | ||||||||||||||
Exercise of stock options | 3,621 | 7 | 3,614 | 3,621 | 3,621 | ||||||||||||
Foreign currency adjustments | 34,433 | (13) | 54 | 34,392 | 34,433 | 34,433 | |||||||||||
Impact of foreign exchange contracts, net | (1,348) | (1,348) | (1,348) | (1,348) | |||||||||||||
Balance at Sep. 30, 2021 | 102,491 | 1,384 | 980,399 | (552,445) | 3,128 | 432,466 | (329,975) | 102,491 | |||||||||
Balance at Jun. 30, 2021 | 107,773 | 1,383 | 978,167 | (549,693) | 6,096 | 435,953 | (327,394) | 108,559 | (786) | ||||||||
Net income (loss) | (2,789) | (2,789) | (2,789) | (2,789) | 0 | ||||||||||||
Stock option expense | 93 | 93 | 93 | 93 | |||||||||||||
Restricted stock units | $ 876 | $ 917 | $ 876 | $ 917 | $ 876 | $ 917 | $ 876 | $ 917 | |||||||||
Director – non-cash compensation | 57 | 57 | 57 | 57 | |||||||||||||
Disposed non-controlling interest | 810 | 810 | |||||||||||||||
Treasury stock purchases | (2,581) | 2,581 | 2,581 | ||||||||||||||
Exercise of stock options | 299 | 1 | 298 | 299 | 299 | ||||||||||||
Foreign currency adjustments | (2,964) | (9) | 37 | (2,968) | (2,940) | (2,940) | $ (24) | ||||||||||
Balance at Sep. 30, 2021 | $ 102,491 | $ 1,384 | $ 980,399 | $ (552,445) | $ 3,128 | $ 432,466 | $ (329,975) | $ 102,491 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Cash flows (used in) operating activities: | ||
Net income (loss) | $ 12,904 | $ (432,062) |
Adjustments to reconcile net income (loss) to net cash (used in) operating activities: | ||
Depreciation and amortization expense | 50,293 | 57,796 |
Amortization of deferred financing costs and original issuance discounts | 3,257 | 3,276 |
Provision for doubtful accounts | 1,610 | 5,746 |
Deferred income tax expense (benefit) | 9,116 | (76,833) |
Change in operating lease liability/asset | (58,875) | 32,121 |
Undistributed (income) loss in equity method investments | (820) | 356 |
Loss on disposal of assets | 2,796 | 83 |
Loss on disposal of assets in international operations | 3,211 | 0 |
Non-cash adjustment for store impairment and restructuring charges | 0 | 16,595 |
Goodwill, intangibles and long-lived assets impairment | 0 | 581,380 |
Non-employee equity-based compensation** | 0 | 1,033 |
Stock option expense – time – based | 310 | 671 |
Stock option expense – performance – based | 0 | 7,847 |
Restricted stock unit expense – time-based | 1,643 | 1,568 |
Restricted stock unit – performance-based | 2,706 | 510 |
Directors – non-cash compensation | 171 | 75 |
Gain on debt refinancing | (1,105) | (273,149) |
Changes in operating assets and liabilities: | ||
(Increase) in accounts receivable | (17,339) | (8,562) |
(Increase) decrease in inventories | (109,227) | (27,959) |
(Increase) in prepaid expenses and other current assets | (49,570) | (64,715) |
Increase in accounts payable, accrued expenses and income taxes payable | 75,368 | 61,478 |
Net cash (used in) operating activities | (73,551) | (56,827) |
Cash flows (used in) investing activities: | ||
Cash paid in connection with acquisitions, net of cash acquired | (4,405) | (362) |
Capital expenditures | (49,211) | (32,095) |
Proceeds from disposal of property and equipment | 3 | 82 |
Proceeds from sale of international operations, net of cash disposed | 20,556 | 0 |
Net cash (used in) investing activities | (33,057) | (32,375) |
Cash flows provided by financing activities: | ||
Repayment of loans, notes payable and long-term obligations | (844,952) | (122,373) |
Proceeds from loans, notes payable and long-term obligations | 882,500 | 369,785 |
Treasury stock purchases | (2,793) | (85) |
Exercise of stock options | 3,621 | 0 |
Debt issuance costs | (21,437) | (19,955) |
Net cash provided by financing activities | 16,939 | 227,372 |
Effect of exchange rate changes on cash and cash equivalents | 100 | (2,659) |
Net (decrease) increase in cash and cash equivalents and restricted cash | (89,569) | 135,511 |
Change in cash classified within current assets held for sale | 31,628 | 0 |
Cash and cash equivalents and restricted cash at beginning of period | 119,681 | 35,176 |
Cash and cash equivalents and restricted cash at end of period* | 61,740 | 170,687 |
Supplemental disclosure of cash flow information: | ||
Cash paid during the period for interest expense | 56,748 | 55,999 |
Cash paid during the period for income taxes, net of refunds | $ 5,303 | $ 24,421 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2021 | Sep. 30, 2020 |
Statement of Cash Flows [Abstract] | ||
Restricted cash | $ 1,000 | $ 125 |
Description of Business
Description of Business | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | Note 1 – Description of Business Party City Holdco Inc. (the “Company” or “Party City Holdco”) is the leading party goods company by revenue in North America and, we believe, the largest vertically integrated supplier of decorated party goods globally by revenue. The Company is a popular one-stop shopping destination for party supplies, balloons, and costumes. In addition to being a great retail brand, the Company is a global, world-class organization that combines state-of-the-art manufacturing and sourcing operations, and sophisticated Wholesale operations complemented by a multi-channel retailing strategy and e-commerce retail operations. The Company is a leading player in its category and vertically integrated in its breadth and depth. The Company designs, manufactures, sources 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 Company’s retail operations include 830 specialty retail party supply stores (including franchise stores) throughout the United States and Mexico operating under the names Party City and Halloween City, and e-commerce websites, including through the domain name PartyCity.com. The Company owns 100 % of PC Nextco Holdings, LLC (“PC Nextc o”), which owns 100 % of PC Intermediate Holdings, Inc. (“PC Intermediate”). PC Intermediate owns 100 % of Party City Holdings Inc. (“PCHI”), which owns most of the Company’s Operating subsidiaries. |
Basis of Presentation and Recen
Basis of Presentation and Recently Issued Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Recently Issued Accounting Pronouncements | Note 2 – Basis of Presentation and Recently Issued Accounting Pronouncements The unaudited condensed consolidated financial statements of the Company include the accounts of the Company and its majority-owned and controlled entities. All intercompany balances and transactions have been eliminated in consolidation. The unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information. Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. These financial statements should be read in conjunction with the more detailed financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2020. In the opinion of management, all adjustments (consisting of normal recurring items) considered necessary for a fair presentation have been included in the unaudited condensed consolidated financial statements. The Company’s retail operations define a fiscal year (“Fiscal Year”) as the 52-week period or 53-week period ended on the Saturday nearest December 31st of each year and define fiscal quarters (“Fiscal Quarter”) as the four interim 13-week periods following the end of the previous Fiscal Year, except in the case of a 53-week Fiscal Year when the fourth Fiscal Quarter is extended to 14 weeks. The condensed consolidated financial statements of the Company combine the Fiscal Quarters of our retail operations with the calendar quarters of our Wholesale operations, as the differences are not significant. Recently Issued Accounting Pronouncements In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-04, which provides guidance providing optional expedients and exceptions for applying U.S. generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by the discontinuation of the London Interbank Offered Rate (“LIBOR”) or by another reference rate expected to be discontinued. Additionally, in January 2021, the FASB issued ASU 2021-01, which allows entities to elect certain optional expedients and exceptions when accounting for derivative contracts and certain hedging relationships affected by changes in the interest rates. The Company is currently evaluating this guidance and does not expect an impact on our consolidated financial statements. |
Store Impairment and Restructur
Store Impairment and Restructuring Charges | 9 Months Ended |
Sep. 30, 2021 | |
Restructuring and Related Activities [Abstract] | |
Store Impairment and Restructuring Charges | Note 3 – Store Impairment and Restructuring Charges In 2019 and 2020 the Company performed a comprehensive review of its store locations aimed at improving the overall productivity of such locations (“store optimization program”). After careful consideration and evaluation of the store locations, the Company made the decision to accelerate the optimization of its store portfolio with the closure of stores, which were primarily located in close proximity to other Party City stores. In 2019, 55 stores were identified for closure, out of which 35 stores were closed in 2019 and 20 stores were closed in January 2020. In 2020, 21 stores identified for closure in the first quarter of 2020 were closed in the third quarter of 2020. These closings provided the Company with capital flexibility to expand into underserved markets. In addition, the Company evaluated the recoverability of long lived assets at the open stores and recorded an impairment charge associated with the operating lease asset and property, plant and equipment for open stores where sales were affected due to the outbreak of, and local, state and federal governmental responses to, COVID-19. During the three and nine months ended September 30, 2020, the Company recorded the following charges: Three Months Ended September 30, Nine Months Ended September 30, 2020 2020 Inventory reserves $ 1,184 $ 12,880 Operating lease asset impairment 137 14,530 Property, plant and equipment impairment — 2,065 Labor and other costs incurred closing stores 1,789 4,223 Total $ 3,110 $ 33,698 The fair values of the operating lease assets and property, plant and equipment were determined based on estimated future discounted cash flows for such assets using market participant assumptions, including data on the ability to sub-lease the stores. The charge for inventory reserves represented inventory that was disposed of below cost. The charge for inventory reserves was recorded in cost of sales in the Company’s statement of operations and comprehensive loss. The other charges were recorded in store impairment and restructuring charges in the Company’s statement of operations and comprehensive loss. In conjunction with the store optimization program and store impairment, there were no charges for the three and nine months ended September 30, 2021. |
Goodwill, Intangibles and Long-
Goodwill, Intangibles and Long-Lived Assets Impairment | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill Intangibles And Long Lived Assets Impairment [Abstract] | |
Goodwill, Intangibles and Long-Lived Assets Impairment | Note 4 – Goodwill, Intangibles and Long-Lived Assets Impairment The Company reviews goodwill and other intangibles that have indefinite lives for impairment annually as of October 1 or when events or changes in circumstances indicate the carrying value of these assets might exceed their current fair values. Impairment testing is based upon the best information available including estimates of fair value which incorporate assumptions marketplace participants would use in making their estimates of fair value. Significant assumptions and estimates are required, including, but not limited to, projecting future cash flows, determining appropriate discount rates and terminal growth rates, and other assumptions, to estimate the fair value of goodwill and indefinite lived intangible assets. Although the Company believes the assumptions and estimates made are reasonable and appropriate, different assumptions and estimates could materially impact its reported financial results. During the three months ended March 31, 2020, the Company identified intangible assets’ impairment indicators associated with its market capitalization and significantly reduced customer demand for its products due to COVID-19. As a result, the Company performed interim impairment tests on the goodwill at its retail and wholesale reporting units and its other indefinite lived intangible assets as of March 31, 2020. The interim impairment tests were performed using an income approach. The Company recognized non-cash pre-tax goodwill impairment charges at March 31, 2020 of $ 253,110 and $ 148,326 against the goodwill associated with its retail and wholesale reporting units, respectively. In addition, during the three months ended March 31, 2020, the Company recorded an impairment charge of $ 131,287 and $ 3,925 on its Party City and Halloween City tradenames, respectively. During the three months ended September 30, 2020 the Company has determined that the fair value of certain indefinite-lived intangible assets is lower than the related book values. Additionally, for certain long-lived assets it is more likely than not that those long-lived assets will be disposed significantly before the end of their previously estimated useful lives. As a result, impairment charges of $ 11,032 , $ 2,423 and $ 31,277 were recorded during the three months ended September 30, 2020 on its business indefinite-lived trade name intangibles, finite-lived intangibles and tangible assets, respectively. During the nine months ended September 30, 2021 there were no impairment charges associated with the Company’s goodwill or other intangible assets balances. |
Disposition of Assets
Disposition of Assets | 9 Months Ended |
Sep. 30, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposition of Assets | Note 5 – Disposition of Assets In January 2021, the Company closed the previously disclosed sale of a substantial portion of its international operations. The final consideration for the sale amounted to $ 54.6 million. During the fourth quarter of 2020, the Company recorded a loss reserve of $ 73,948 in connection with this sale, and during the first quarter of 2021, the Company recorded an additional loss of $ 3,211 , related to changes in working capital accounts through the transaction close date, which is reported in the Consolidated Statements of Operations and Comprehensive Income (Loss). |
Inventories, net
Inventories, net | 9 Months Ended |
Sep. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories, net | Note 6 – Inventories, net Inventories, net consisted of the following: September 30, December 31, September 30, Finished goods $ 474,891 $ 367,275 $ 581,735 Raw materials 26,667 27,111 28,640 Work in process 18,488 17,899 19,982 $ 520,046 $ 412,285 $ 630,357 Inventories, net are valued at the lower of cost or net realizable value. The Company principally determines the cost of inventory using the weighted average method. The Company estimates retail inventory shrinkage for the period between physical inventory dates on a store-by-store basis. Inventory shrinkage estimates can be affected by changes in merchandise mix and changes in actual shortage trends. The shrinkage rate from the most recent physical inventory, in combination with historical experience, is the basis for estimating shrinkage. In the ordinary course of business the Company is involved in transactions with certain of its equity-method investees, primarily for the purchase of finished goods inventory. For the three and nine months ended September 30, 2021, the Company purchased $ 22.5 million and $ 48.0 million, respectively. Approximately $ 21.8 million of these purchases are reflected in finished goods inventory as of September 30, 2021. As of September 30, 2021, the Company had accounts payable of $ 25.3 million related to such transactions. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 7 – Income Taxes On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act (“the CARES Act”) was signed into law. The CARES Act is a $ 2 trillion legislative package intended to provide economic relief to companies impacted by the COVID-19 pandemic, and it enacted a number of Internal Revenue Code modifications which are of particular benefit to the Company, including: 5-year net operating loss carryback, temporary relaxation of the limitations on interest deductions, qualified improvement property eligible for bonus depreciation, employee retention tax credits, and deferral of payment of payroll tax. The effective income tax rate for the three months ended September 30, 2021 of ( 16.2 ) % is different from the statutory rate of 21.0 % primarily due to state taxes, the effect of foreign losses with no associated tax benefit, FIN 48 reserves, and equity compensation. The effective income tax rate for the nine months ended September 30, 2021 of 35.6 % is different from the statutory rate of 21.0 % primarily due to state taxes, the effect of foreign losses with no associated tax benefit, FIN 48 reserves, and the additional loss related to the sale of a substantial portion of the international operations recorded in the three months ended March 31, 2021. |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Income (Loss) | Note 8 – Changes in Accumulated Other Comprehensive Income (Loss) The changes in accumulated other comprehensive income (loss) consisted of the following: Three Months Ended September 30, 2021 Foreign Total, Balance at June 30, 2021 $ 6,096 $ 6,096 Other comprehensive (loss) before reclassifications, ( 2,968 ) ( 2,968 ) Net current-period other comprehensive (loss) ( 2,968 ) ( 2,968 ) Balance at September 30, 2021 $ 3,128 $ 3,128 Three Months Ended September 30, 2020 Foreign Impact of Total, Balance at June 30, 2020 $ ( 45,621 ) $ 1,772 $ ( 43,849 ) Other comprehensive income (loss) before reclassifications, 5,076 ( 321 ) 4,755 Amounts reclassified from accumulated other comprehensive — 187 187 Net current-period other comprehensive income (loss) 5,076 ( 134 ) 4,942 Balance at September 30, 2020 $ ( 40,545 ) $ 1,638 $ ( 38,907 ) Nine Months Ended September 30, 2021 Foreign Impact of Total, Balance at December 31, 2020 $ ( 31,264 ) $ 1,348 $ ( 29,916 ) Other comprehensive income before reclassifications, net of tax ( 2,197 ) 77 ( 2,120 ) Release of cumulative foreign currency translation adjustment to net loss as a result of disposition of international operations 36,589 ( 1,422 ) 35,167 Amounts reclassified from accumulated other comprehensive income to the condensed consolidated statement of operations and comprehensive income (loss), net of income tax — ( 3 ) ( 3 ) Net current-period other comprehensive income (loss) 34,392 ( 1,348 ) 33,044 Balance at September 30, 2021 $ 3,128 $ — $ 3,128 Nine Months Ended September 30, 2020 Foreign Impact of Total, Balance at December 31, 2019 $ ( 37,434 ) $ 1,700 $ ( 35,734 ) Other comprehensive (loss) before ( 3,111 ) ( 251 ) ( 3,362 ) Amounts reclassified from accumulated other comprehensive — 189 189 Net current-period other comprehensive (loss) ( 3,111 ) ( 62 ) ( 3,173 ) Balance at September 30, 2020 $ ( 40,545 ) $ 1,638 $ ( 38,907 ) |
Capital Stock
Capital Stock | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Capital Stock | Note 9 – Capital Stock At September 30, 2021, the Company’s authorized capital stock consisted of 300,000,000 shares of $ 0.01 par value common stock and 15,000,000 shares of $ 0.01 par value preferred stock. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 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 September 30, 2021 and September 31, 2020 was as follows: Wholesale Retail Consolidated Three Months Ended September 30, 2021 Net sales before eliminations* $ 279,634 $ 398,873 $ 678,507 Eliminations ( 168,308 ) — ( 168,308 ) Net sales 111,326 398,873 510,199 Gross profit* $ 21,876 $ 161,822 $ 183,698 (Loss) income from operations $ ( 3,873 ) $ 23,927 $ 20,054 Interest expense, net 23,899 Other (income), net ( 1,444 ) Loss before income taxes $ ( 2,401 ) Wholesale Retail Consolidated Three Months Ended September 30, 2020 Net sales before eliminations* $ 346,621 $ 366,203 $ 712,824 Eliminations ( 179,049 ) — ( 179,049 ) Net sales 167,572 366,203 533,775 Gross profit* $ 42,313 $ 135,539 $ 177,852 Loss from operations $ ( 12,738 ) $ ( 14,361 ) $ ( 27,099 ) Interest expense, net 13,422 Other expense, net ( 2,873 ) Gain on debt refinancing ( 273,149 ) Income before income taxes $ 235,501 The company's reportable operating segment data for the nine months ended September 30, 2021 and 2020 was as follows: Wholesale Retail Consolidated Nine Months Ended September 30, 2021 Net sales before eliminations* $ 722,732 $ 1,175,967 $ 1,898,699 Eliminations ( 425,947 ) — ( 425,947 ) Net sales 296,785 1,175,967 1,472,752 Gross profit* $ 74,591 $ 478,565 $ 553,156 (Loss) income from operations $ ( 7,690 ) $ 89,634 $ 81,944 Interest expense, net 64,229 Other (income), net ( 2,317 ) Income before income taxes $ 20,032 Wholesale Retail Consolidated Nine Months Ended September 30, 2020 Net sales before eliminations* $ 692,715 $ 854,961 $ 1,547,676 Eliminations ( 345,167 ) — ( 345,167 ) Net sales 347,548 854,961 1,202,509 Gross profit* $ 50,538 $ 261,384 $ 311,922 Loss from operations $ ( 232,178 ) $ ( 533,085 ) $ ( 765,263 ) Interest expense, net 63,954 Other expense, net 4,287 Gain on debt refinancing ( 273,149 ) Loss before income taxes $ ( 560,355 ) *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 closu re and were closed throughout 2020. In conjunction with the program, during the three and nine months ended September 30, 2020 the Company’s retail segment recorded $ 3,110 and $ 33,698 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. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 11 – Commitments and Contingencies The Company is a party to certain claims and litigation in the ordinary course of business. The Company does not believe these proceedings will result, individually or in the aggregate, in a material adverse effect on its financial condition or future results of operations. |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Sep. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Note 12 – Derivative Financial Instruments The Company is directly and indirectly affected by changes in certain market conditions. These changes in market conditions may adversely impact the Company’s financial performance and are referred to as market risks. The Company, when deemed appropriate, uses derivatives as a risk management tool to mitigate the potential impact of certain market risks. The primary market risks managed through the use of derivative financial instruments are interest rate risk and foreign currency exchange rate risk. Foreign Exchange Risk Management A portion of the Company’s cash flows is derived from transactions denominated in foreign currencies. In 2020, to reduce the uncertainty of foreign exchange rate movements on transactions denominated in foreign currencies, the Company entered into foreign exchange contracts with major international financial institutions. These forward contracts, typically matured within one year and were designed to hedge anticipated foreign currency transactions, primarily inventory purchases and sales. For contracts that qualified for hedge accounting, the terms of the foreign exchange contracts were such that cash flows from the contracts were highly effective in offsetting the expected cash flows from the underlying forecasted transactions. The foreign currency exchange contracts were reflected in the condensed consolidated balance sheets at fair value. At December 31, 2020 and September 30, 2020, the Company had foreign currency exchange contracts that qualified for hedge accounting. No components of these agreements were excluded in the measurement of hedge effectiveness. As these hedges were 100 % effective, there was no current impact on earnings due to hedge ineffectiveness. The Company did no t have any foreign currency exchange contracts at September 30, 2021. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 13 – Fair Value Measurements The provisions of ASC Topic 820, “Fair Value Measurement”, define fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. ASC Topic 820 established a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: Level 1 — Quoted prices in active markets for identical assets or liabilities. Level 2 — Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. During 2017, the Company and Ampology, a subsidiary of Trivergence, reached an agreement to form a new legal entity, Kazzam, LLC (“Kazzam”), for the purpose of designing, developing and launching an online exchange platform for party-related services. As part of Ampology’s compensation for designing, developing and launching the exchange platform, Ampology received an ownership interest in Kazzam. The interest had been recorded as redeemable securities in the mezzanine of the Company’s consolidated balance sheet as Ampology had the right to cause the Company to purchase the interest. The liability was adjusted to the greater of the current fair value or the original fair value at the time at which the ownership interest was issued (adjusted for any subsequent changes in the ownership interest percentage). On March 23, 2020, the Company purchased all of Ampology’s interest in Kazzam. Refer to Note 17 – Kazzam, LLC for further detail. The majority of the Company’s non-financial instruments, which include goodwill, intangible assets, lease assets, inventories and property, plant and equipment, are not required to be carried at fair value on a recurring basis. However, if certain triggering events occur (or at least annually for goodwill and indefinite-lived intangible assets), a non-financial instrument is required to be evaluated for impairment. If the Company determines that the non-financial instrument is impaired, the Company would be required to write down the non-financial instrument to its fair value. See Note 3 – Store Impairment and Restructuring Charges and Note 4 – Goodwill, Intangibles and Long-Lived Assets Impairment for further detail. The carrying amounts for cash and cash equivalents, accounts receivable, prepaid expenses and other current assets, accounts payable, accrued expenses and other current liabilities approximated fair value at September 30, 2021 because of the short-term maturities of the instruments and/or their variable rates of interest. The carrying amounts and fair values of borrowings under the Term Loan Credit Agreement and the Company’s senior notes as of September 30, 2021 are as follows: September 30, 2021 Gross Carrying Fair 8.75% Senior Secured First Lien Notes – due 2026 $ 750,000 $ 780,000 6.125% Senior Notes – due 2023 22,924 20,288 6.625% Senior Notes – due 2026 92,254 75,648 First Lien Party City Notes – due 2025 198,076 186,191 First Lien Anagram Notes – due 2025 150,486 170,049 Second Lien Anagram Notes – due 2026 144,665 141,772 The fair values represent Level 2 fair value measurements as the debt instruments trade in inactive markets. The carrying amounts for other long-term debt approximated fair value at September 30, 2021 based on the discounted future cash flows of each instrument at rates currently offered for similar debt instruments of comparable maturity. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 14 – Earnings Per Share Basic earnings per share are computed by dividing net income attributable to common shareholders of Party City Holdco Inc. by the weighted average number of common shares outstanding for the period. Diluted earnings per share are calculated based on the weighted average number of outstanding common shares plus the dilutive effect of stock options and warrants, as if they were exercised, and restricted stock units, as if they vested. Basic and diluted loss per share is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Net (Loss) income attributable to common shareholders of $ ( 2,789 ) $ 239,707 $ 12,958 $ ( 431,821 ) Weighted average shares - Basic 112,037,224 106,709,307 111,431,623 97,872,174 Effect of dilutive securities: Warrants — — 41,414 — Restricted stock units — 166,324 4,036,805 — Stock options — — 312,279 — Weighted average shares - Diluted 112,037,224 106,875,631 115,822,121 97,872,174 Net (loss) income per share attributable to common $ ( 0.02 ) $ 2.25 $ 0.12 $ ( 4.41 ) Net (loss) income per share attributable to common $ ( 0.02 ) $ 2.24 $ 0.11 $ ( 4.41 ) During the three months ended September 30, 2021, 1,884,619 stock options and 6,984,119 restricted stock units were excluded from the calculation of net loss per share attributable to common shareholders of Party City Holdco Inc. – diluted as they were anti-dilutive. During the nine months ended September 30, 2021, 1,048,319 stock options and 168,897 restricted stock units were excluded from the calculation of net income per share attributable to common shareholders of Party City Holdco Inc. – diluted as they were anti-dilutive. During the three months ended September 30, 2020, 3,475,621 stock options, 1,000,000 warrants and 263,727 restricted stock units were excluded from the calculation of net loss per share attributable to common shareholders of Party City Holdco Inc. – diluted as they were anti-dilutive. During the nine months ended September 30, 2020, 3,475,621 stock options, 1,000,000 warrants and 584,258 restricted stock units were excluded from the calculation of net loss per share attributable to common shareholders of Party City Holdco Inc. – diluted as they were anti-dilutive. |
Current and Long-Term Obligatio
Current and Long-Term Obligations | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Current and Long-Term Obligations | Note 15 – Current and Long-Term Obligations Long-term obligations at September 30, 2021, December 31, 2020 and September 30, 2020 consisted of the following: September 30, December 31, September 30, Principal Amount Gross Carrying Amount Deferred Financing Costs Net Carrying Amount Net Carrying Amount Net Carrying Amount Senior secured term loan facility (“Term Loan Credit Agreement”) $ — $ — $ — $ — $ 690,165 $ 693,906 8.75 % Senior Secured First Lien Notes – due 2026 750,000 750,000 ( 17,876 ) 732,124 — — 6.125 % Senior Notes – due 2023 22,924 22,924 ( 104 ) 22,820 22,779 22,765 6.625 % Senior Notes – due 2026 92,254 92,254 ( 699 ) 91,555 106,315 106,273 First Lien Party City Notes – due 2025 161,669 198,076 — 198,076 206,775 207,925 First Lien Anagram Notes – due 2025 115,804 150,486 ( 810 ) 149,676 151,335 150,958 Second Lien Anagram Notes – due 2026 89,155 144,665 — 144,665 152,032 152,104 Finance lease obligations 13,267 13,267 — 13,267 13,983 14,749 Total long-term obligations 1,245,073 1,371,672 ( 19,489 ) 1,352,183 1,343,384 1,348,680 Less: current portion ( 1,297 ) ( 1,297 ) — ( 1,297 ) ( 13,576 ) ( 14,342 ) Long-term obligations, excluding current portion $ 1,243,776 $ 1,370,375 $ ( 19,489 ) $ 1,350,886 $ 1,329,808 $ 1,334,338 Prior to April 2019, the Company had a $ 540,000 asset-based revolving credit facility (with a seasonal increase to $ 640,000 during a certain period of each calendar year) (the “ABL Facility”), which matures during August 2023 (subject to a springing maturity at an earlier date if the maturity date of certain of the Company’s other debt has not been extended or refinanced). It provides for (a) revolving loans, subject to a borrowing base, and (b) letters of credit, in an aggregate face amount at any time outstanding not to exceed $ 50,000 . During April 2019, the Company amended the ABL Facility. Such amendment removed the seasonal component and made the ABL Facility a $ 640,000 facility with no seasonal modification component. In connection with the refinancing transactions as follows, PCHI (1) reduced the ABL revolving commitments and prepaid the outstanding ABL revolving loans, in each case, in an aggregate principal amount equal to $ 44,000 in accordance with the ABL Facility credit agreement, and (2) designated Anagram Holdings and each of its subsidiaries as an unrestricted subsidiary under the ABL Facility and the Term Loan Credit Agreement. Additionally, in February 2021 in conjunction with the transaction discussed below, the Company amended the ABL Facility by reducing the commitments to $ 475,000 and extending the maturity to February 2026 , or earlier as provided for in the agreement. The Company had approximately $ 280.3 m illion, $ 176.5 million and $ 178.5 million of availability under the ABL Facility as of September 30, 2021, December 31, 2020 and September 30, 2020, respectively. At September 30, 2020, $ 100.1 million was invested in US Treasury funds with maturities of less than three months. As discussed further below, Anagram had a separate asset-based revolving credit facility and there was approximately $ 14.6 million of availability under the Anagram ABL Facility as of September 30, 2021. February 2021 Debt Transaction During February 2021, PCHI issued $ 750,000 of senior secured first lien notes at an interest rate of 8.750 % (“8.750% Senior Notes”). The 8.750 % Senior Notes will mature in February 2026 . The Company used the proceeds from the 8.750% Senior Notes to prepay the outstanding balance of $ 694,220 under its existing Term Loan Credit Agreement. The prepayment of the Term Loan Credit Agreement was in accordance with the terms of such agreement. In connection with the transaction, the Company wrote-off a portion of the existing capitalized deferred financing costs and original issuance discounts. Additionally, the Company incurred $ 18,976 of third-party fees, principally banker fees. The amounts expensed were recorded in Other expense, net in the Company’s Consolidated Statement of Operations and Comprehensive (Loss) Income and included in Gain on debt repayment in the Company’s Consolidated Statement of Cash Flows. In conjunction with the amendment of the ABL Facility, the Company wrote-off a portion of existing deferred financing costs. Such amount was recorded in Other expense, net in the Company’s Consolidated Statement of Operations and Comprehensive (Loss) Income and included in Gain on debt repayment in the Company’s Consolidated Statement of Cash Flows. The remaining capitalized costs, and $ 2,400 of new third-party costs incurred in conjunction with the amendment, will be amortized over the revised term of the ABL Facility. Interest on the 8.750% Senior Notes is payable semi-annually in arrears on February 15th and August 15th of each year. The 8.750% Senior Notes are guaranteed, jointly and severally, on a senior secured basis by each of PCHI’s existing and future domestic subsidiaries. The 8.750% Senior Notes and related guarantees are secured by a first priority lien on substantially all assets of PCHI and the guarantors, except for the collateral that secures the senior credit facilities on a first lien basis, with respect to which the 8.750% Senior Notes and related guarantees will be secured by a second priority lien, in each case subject to permitted liens and certain exclusions and release provisions. The indenture governing the 8.750% Senior Notes contains covenants that, among other things, limit the PCHI’s ability and the ability of its restricted subsidiaries to: • incur additional indebtedness or issue certain disqualified stock or preferred stock; • create liens; • pay dividends or distributions, redeem or repurchase equity; • prepay junior lien indebtedness, unsecured pari passu indebtedness or subordinated indebtedness or make certain investments; • transfer or sell assets; • engage in consolidation, amalgamation or merger, or sell, transfer or otherwise dispose of all or substantially all of their assets; and • enter into certain transactions with affiliates. The indenture governing the notes also contains certain customary affirmative covenants and events of default. On or after August 15, 2023, 2024, and 2025, respectively, PCHI may redeem some or all of the 8.750% Senior Notes at the redemption price of 104.375 %, 102.188 % and 100.000 %, respectively, plus accrued and unpaid interest, if any. In addition, PCHI may redeem up to 40 % of the aggregate principal amount outstanding on or before August 15, 2023 with the cash proceeds from certain equity offerings at a redemption price of 108.750 % of the principal amount, plus accrued and unpaid interest. PCHI may also redeem some or all of the notes before August 15, 2023 at a redemption price of 100 % of the principal amount plus a premium that is defined in the indenture. At any time prior to August 15, 2023, PCHI may also at its option redeem during each 12-month period commencing with the issue date up to 10 % of the aggregate principal amount of the 8.750% Senior Notes at a redemption price of 103 % of the aggregate principal amount, plus accrued and unpaid interest, if any. Also, if PCHI experiences certain types of change in control, as defined, it may be required to offer to repurchase the 8.750% Senior Notes at 101 % of their principal amount On May 7, 2021, Anagram Holdings, LLC (“Anagram”), a wholly owned subsidiary of the Company, entered into a $ 15 million asset-based revolving credit facility (“Anagram ABL Facility”), which matures during May 2024 . It provides for (a) revolving loans, subject to a borrowing base described below, and (b) under the Anagram ABL Facility, Borrowers would be entitled to request letters of credit (“Letters of Credit”). The aggregate amount of outstanding Letters of Credit would be reserved against the credit availability and subject to a $ 3 million cap. Under the Anagram ABL Facility, the borrowing base at any time equals (a) a percentage of eligible trade receivables, plus (b) a percentage of eligible inventory, plus (c) a percentage of eligible credit card receivables, less (d) certain reserves. The Anagram ABL Facility generally provides for the following pricing options: All revolving loans will bear interest, at the Anagram's election, at a per annum rate equal to either (a) a base rate, which represents for any day a rate equal to the greater of (i) the prime rate on such day subject to a 0 % floor, (ii) the federal funds rate plus 5.0 % and (iii) one-half of one percent per annum, in each case, plus a margin of 1.5 % or (b) the Daily One Month LIBOR subject to a 0.5 % floor, plus a margin of 2.5 % . In addition to paying interest on outstanding principal, Anagram is required to pay a commitment fee of 0.5 % to 1 % per annum in respect of unutilized commitments. Anagram must also pay customary letter of credit fees. All obligations under the Anagram ABL Facility are jointly and severally guaranteed by Anagram and its subsidiaries. The Anagram ABL facility contains covenants and events of default customary for such credit facilities. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 9 Months Ended |
Sep. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Note 16 – Revenue from Contracts with Customers The following table summarizes revenue from contracts with customers for the three months ended September 30, 2021 and 2020: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Retail Net Sales: North American Party City Stores $ 391,698 $ 358,246 $ 1,163,418 $ 829,281 Other* 7,175 7,957 12,549 25,680 Total Retail Net Sales $ 398,873 $ 366,203 $ 1,175,967 $ 854,961 Wholesale Net Sales: Domestic $ 74,944 $ 79,388 $ 192,090 $ 177,263 International 36,382 88,184 104,695 170,285 Total Wholesale Net Sales $ 111,326 $ 167,572 $ 296,785 $ 347,548 Total Consolidated Sales $ 510,199 $ 533,775 $ 1,472,752 $ 1,202,509 *Includes royalties and franchise fees. Prior year amounts conformed to current year presentation. The Company maintains allowances for credit losses resulting from the inability of the Company’s customers to make required payments. Judgment is required in assessing the ultimate realization of these receivables, including consideration of the Company’s history of receivable write-offs, the level of past due accounts and the economic status of the Company’s customers. In an effort to identify adverse trends relative to customer economic status, the Company assesses the financial health of the markets it operates in and performs periodic credit evaluations of its customers and ongoing reviews of account balances and aging of receivables. Amounts are considered past due when payment has not been received within the time frame of the credit terms extended. Write-offs are charged directly against the allowance for credit losses and occur only after all collection efforts have been exhausted. The Company will continue to actively monitor the impact of the COVID-19 pandemic on expected losses. At September 30, 2021 , December 31, 2020 and September 30, 2020, the allowance for credit losses was $ 7,248 , $ 7,232 and $ 9,590 , respectively. |
Kazzam, LLC
Kazzam, LLC | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Kazzam, LLC | Note 17 – Kazzam, LLC During the first quarter of 2017, the Company and Ampology, a subsidiary of Trivergence, reached an agreement to form a new legal entity, Kazzam, LLC (“Kazzam”), for the purpose of designing, developing and launching an online exchange platform for party-related services. At December 31, 2019, although the Company owned 26 % of Kazzam’s equity, Kazzam was a variable interest entity and the Company consolidated Kazzam into the Company’s financial statements. Further, the Company was funding all of Kazzam’s start-up activities via a loan to Kazzam and recorded its operating results in “development stage expenses” in the Company’s consolidated statement of operations and comprehensive (loss) income. Ampology’s ownership interest in Kazzam had been recorded in redeemable securities in the mezzanine of the Company’s consolidated balance sheet. In January 2020, the Company and Ampology terminated certain services agreements and warrants that Ampology had in the Company stock. The parties concurrently entered into an interim transition agreement for which expenses are recorded as development stage expenses. On March 23, 2020, the Company agreed to purchase Ampology’s interest in Kazzam in exchange for a three-year royalty on net service revenue and a warrant to purchase up to 1,000,000 shares of the Company’s common stock. The acquisition of Ampology’s interest in Kazzam is an equity transaction and the difference between the fair value of the consideration transferred and the carrying value of Ampology’s interest in Kazzam was recorded within the consolidated statement of stockholders’ equity. During the first quarter of 2021, Ampology exercised a warrant in a cashless redemption transaction which is reflected in the consolidated statement of stockholders’ equity for the nine months ended September 30, 2021. |
Basis of Presentation and Rec_2
Basis of Presentation and Recently Issued Accounting Pronouncements (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-04, which provides guidance providing optional expedients and exceptions for applying U.S. generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by the discontinuation of the London Interbank Offered Rate (“LIBOR”) or by another reference rate expected to be discontinued. Additionally, in January 2021, the FASB issued ASU 2021-01, which allows entities to elect certain optional expedients and exceptions when accounting for derivative contracts and certain hedging relationships affected by changes in the interest rates. The Company is currently evaluating this guidance and does not expect an impact on our consolidated financial statements. |
Store Impairment and Restruct_2
Store Impairment and Restructuring Charges (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Restructuring and Related Activities [Abstract] | |
Store Impairment and Restructuring Charges | During the three and nine months ended September 30, 2020, the Company recorded the following charges: Three Months Ended September 30, Nine Months Ended September 30, 2020 2020 Inventory reserves $ 1,184 $ 12,880 Operating lease asset impairment 137 14,530 Property, plant and equipment impairment — 2,065 Labor and other costs incurred closing stores 1,789 4,223 Total $ 3,110 $ 33,698 |
Inventories, net (Tables)
Inventories, net (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories, Net | Inventories, net consisted of the following: September 30, December 31, September 30, Finished goods $ 474,891 $ 367,275 $ 581,735 Raw materials 26,667 27,111 28,640 Work in process 18,488 17,899 19,982 $ 520,046 $ 412,285 $ 630,357 |
Changes in Accumulated Other _2
Changes in Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Income (Loss) | The changes in accumulated other comprehensive income (loss) consisted of the following: Three Months Ended September 30, 2021 Foreign Total, Balance at June 30, 2021 $ 6,096 $ 6,096 Other comprehensive (loss) before reclassifications, ( 2,968 ) ( 2,968 ) Net current-period other comprehensive (loss) ( 2,968 ) ( 2,968 ) Balance at September 30, 2021 $ 3,128 $ 3,128 Three Months Ended September 30, 2020 Foreign Impact of Total, Balance at June 30, 2020 $ ( 45,621 ) $ 1,772 $ ( 43,849 ) Other comprehensive income (loss) before reclassifications, 5,076 ( 321 ) 4,755 Amounts reclassified from accumulated other comprehensive — 187 187 Net current-period other comprehensive income (loss) 5,076 ( 134 ) 4,942 Balance at September 30, 2020 $ ( 40,545 ) $ 1,638 $ ( 38,907 ) Nine Months Ended September 30, 2021 Foreign Impact of Total, Balance at December 31, 2020 $ ( 31,264 ) $ 1,348 $ ( 29,916 ) Other comprehensive income before reclassifications, net of tax ( 2,197 ) 77 ( 2,120 ) Release of cumulative foreign currency translation adjustment to net loss as a result of disposition of international operations 36,589 ( 1,422 ) 35,167 Amounts reclassified from accumulated other comprehensive income to the condensed consolidated statement of operations and comprehensive income (loss), net of income tax — ( 3 ) ( 3 ) Net current-period other comprehensive income (loss) 34,392 ( 1,348 ) 33,044 Balance at September 30, 2021 $ 3,128 $ — $ 3,128 Nine Months Ended September 30, 2020 Foreign Impact of Total, Balance at December 31, 2019 $ ( 37,434 ) $ 1,700 $ ( 35,734 ) Other comprehensive (loss) before ( 3,111 ) ( 251 ) ( 3,362 ) Amounts reclassified from accumulated other comprehensive — 189 189 Net current-period other comprehensive (loss) ( 3,111 ) ( 62 ) ( 3,173 ) Balance at September 30, 2020 $ ( 40,545 ) $ 1,638 $ ( 38,907 ) |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Company's Industry Segment Data | The Company’s reportable operating segment data for the three months ended September 30, 2021 and September 31, 2020 was as follows: Wholesale Retail Consolidated Three Months Ended September 30, 2021 Net sales before eliminations* $ 279,634 $ 398,873 $ 678,507 Eliminations ( 168,308 ) — ( 168,308 ) Net sales 111,326 398,873 510,199 Gross profit* $ 21,876 $ 161,822 $ 183,698 (Loss) income from operations $ ( 3,873 ) $ 23,927 $ 20,054 Interest expense, net 23,899 Other (income), net ( 1,444 ) Loss before income taxes $ ( 2,401 ) Wholesale Retail Consolidated Three Months Ended September 30, 2020 Net sales before eliminations* $ 346,621 $ 366,203 $ 712,824 Eliminations ( 179,049 ) — ( 179,049 ) Net sales 167,572 366,203 533,775 Gross profit* $ 42,313 $ 135,539 $ 177,852 Loss from operations $ ( 12,738 ) $ ( 14,361 ) $ ( 27,099 ) Interest expense, net 13,422 Other expense, net ( 2,873 ) Gain on debt refinancing ( 273,149 ) Income before income taxes $ 235,501 The company's reportable operating segment data for the nine months ended September 30, 2021 and 2020 was as follows: Wholesale Retail Consolidated Nine Months Ended September 30, 2021 Net sales before eliminations* $ 722,732 $ 1,175,967 $ 1,898,699 Eliminations ( 425,947 ) — ( 425,947 ) Net sales 296,785 1,175,967 1,472,752 Gross profit* $ 74,591 $ 478,565 $ 553,156 (Loss) income from operations $ ( 7,690 ) $ 89,634 $ 81,944 Interest expense, net 64,229 Other (income), net ( 2,317 ) Income before income taxes $ 20,032 Wholesale Retail Consolidated Nine Months Ended September 30, 2020 Net sales before eliminations* $ 692,715 $ 854,961 $ 1,547,676 Eliminations ( 345,167 ) — ( 345,167 ) Net sales 347,548 854,961 1,202,509 Gross profit* $ 50,538 $ 261,384 $ 311,922 Loss from operations $ ( 232,178 ) $ ( 533,085 ) $ ( 765,263 ) Interest expense, net 63,954 Other expense, net 4,287 Gain on debt refinancing ( 273,149 ) Loss before income taxes $ ( 560,355 ) *Includes royalties and franchise fees. Prior year amounts conformed to current year presentation. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Summary of Carrying Amount and Fair Value | The carrying amounts and fair values of borrowings under the Term Loan Credit Agreement and the Company’s senior notes as of September 30, 2021 are as follows: September 30, 2021 Gross Carrying Fair 8.75% Senior Secured First Lien Notes – due 2026 $ 750,000 $ 780,000 6.125% Senior Notes – due 2023 22,924 20,288 6.625% Senior Notes – due 2026 92,254 75,648 First Lien Party City Notes – due 2025 198,076 186,191 First Lien Anagram Notes – due 2025 150,486 170,049 Second Lien Anagram Notes – due 2026 144,665 141,772 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Loss Per Share | Basic and diluted loss per share is as follows: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Net (Loss) income attributable to common shareholders of $ ( 2,789 ) $ 239,707 $ 12,958 $ ( 431,821 ) Weighted average shares - Basic 112,037,224 106,709,307 111,431,623 97,872,174 Effect of dilutive securities: Warrants — — 41,414 — Restricted stock units — 166,324 4,036,805 — Stock options — — 312,279 — Weighted average shares - Diluted 112,037,224 106,875,631 115,822,121 97,872,174 Net (loss) income per share attributable to common $ ( 0.02 ) $ 2.25 $ 0.12 $ ( 4.41 ) Net (loss) income per share attributable to common $ ( 0.02 ) $ 2.24 $ 0.11 $ ( 4.41 ) |
Current and Long-Term Obligat_2
Current and Long-Term Obligations (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Summary of Long-Term Obligations | Long-term obligations at September 30, 2021, December 31, 2020 and September 30, 2020 consisted of the following: September 30, December 31, September 30, Principal Amount Gross Carrying Amount Deferred Financing Costs Net Carrying Amount Net Carrying Amount Net Carrying Amount Senior secured term loan facility (“Term Loan Credit Agreement”) $ — $ — $ — $ — $ 690,165 $ 693,906 8.75 % Senior Secured First Lien Notes – due 2026 750,000 750,000 ( 17,876 ) 732,124 — — 6.125 % Senior Notes – due 2023 22,924 22,924 ( 104 ) 22,820 22,779 22,765 6.625 % Senior Notes – due 2026 92,254 92,254 ( 699 ) 91,555 106,315 106,273 First Lien Party City Notes – due 2025 161,669 198,076 — 198,076 206,775 207,925 First Lien Anagram Notes – due 2025 115,804 150,486 ( 810 ) 149,676 151,335 150,958 Second Lien Anagram Notes – due 2026 89,155 144,665 — 144,665 152,032 152,104 Finance lease obligations 13,267 13,267 — 13,267 13,983 14,749 Total long-term obligations 1,245,073 1,371,672 ( 19,489 ) 1,352,183 1,343,384 1,348,680 Less: current portion ( 1,297 ) ( 1,297 ) — ( 1,297 ) ( 13,576 ) ( 14,342 ) Long-term obligations, excluding current portion $ 1,243,776 $ 1,370,375 $ ( 19,489 ) $ 1,350,886 $ 1,329,808 $ 1,334,338 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Revenue from Contracts with Customers | The following table summarizes revenue from contracts with customers for the three months ended September 30, 2021 and 2020: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Retail Net Sales: North American Party City Stores $ 391,698 $ 358,246 $ 1,163,418 $ 829,281 Other* 7,175 7,957 12,549 25,680 Total Retail Net Sales $ 398,873 $ 366,203 $ 1,175,967 $ 854,961 Wholesale Net Sales: Domestic $ 74,944 $ 79,388 $ 192,090 $ 177,263 International 36,382 88,184 104,695 170,285 Total Wholesale Net Sales $ 111,326 $ 167,572 $ 296,785 $ 347,548 Total Consolidated Sales $ 510,199 $ 533,775 $ 1,472,752 $ 1,202,509 *Includes royalties and franchise fees. Prior year amounts conformed to current year presentation. |
Description of Business - Addit
Description of Business - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2021Store | |
PC Nextco [Member] | |
Basis Of Presentation [Line Items] | |
Ownership percentage | 100.00% |
PC Intermediate [Member] | |
Basis Of Presentation [Line Items] | |
Ownership percentage | 100.00% |
Party City Holdings Inc [Member] | |
Basis Of Presentation [Line Items] | |
Ownership percentage | 100.00% |
United States and Canada [Member] | |
Basis Of Presentation [Line Items] | |
Number of stores | 830 |
Store Impairment and Restruct_3
Store Impairment and Restructuring Charges - Additional Information (Detail) - Store | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Jan. 31, 2020 | Mar. 31, 2021 | Sep. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |||||
Number of stores identified for closure | 21 | 21 | 55 | ||
Number of stores closed | 20 | 21 | 35 |
Store Impairment and Restruct_4
Store Impairment and Restructuring Charges (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2020 | Sep. 30, 2020 | |
Property, plant and equipment impairment | $ 31,277 | |
Total | 3,110 | $ 33,698 |
Cost of Sales [Member] | ||
Inventory reserves | 1,184 | 12,880 |
Restructuring Charges [Member] | ||
Operating lease asset impairment | 137 | 14,530 |
Property, plant and equipment impairment | 0 | 2,065 |
Labor and other costs incurred closing stores | $ 1,789 | $ 4,223 |
Goodwill, Intangibles and Lon_2
Goodwill, Intangibles and Long-Lived Assets Impairment - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2021 | |
Tangible asset impairment charges | $ 31,277,000 | ||
Goodwill, impairment loss | $ 0 | ||
Impairment charge on intangible asset | 2,423,000 | ||
Party City Holdings Inc [Member] | |||
Impairment charge on intangible asset | $ 131,287,000 | ||
Halloween City Trade Name [Member] | |||
Impairment charge on intangible asset | 3,925,000 | ||
Operating Segments [Member] | Retail [Member] | |||
Goodwill, impairment loss | 253,110,000 | ||
Operating Segments [Member] | Wholesale [Member] | |||
Goodwill, impairment loss | $ 148,326,000 | ||
Trade Names [Member] | |||
Impairment of indefinite-lived intangibles | $ 11,032,000 |
Disposition of Assets - Additio
Disposition of Assets - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Dec. 31, 2020 | Jan. 01, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |||
Final consideration amount | $ 54,600 | ||
Loss reserve in connection with sale | $ 73,948 | ||
Gain (loss) on sale of assets | $ (3,211) |
Inventories, Net - Summary of I
Inventories, Net - Summary of Inventories, Net (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 |
Inventory Disclosure [Abstract] | |||
Finished goods | $ 474,891 | $ 367,275 | $ 581,735 |
Raw materials | 26,667 | 27,111 | 28,640 |
Work in process | 18,488 | 17,899 | 19,982 |
Inventories, net | $ 520,046 | $ 412,285 | $ 630,357 |
Inventories, Net - Additional I
Inventories, Net - Additional Information (Detail) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2021USD ($) | Sep. 30, 2021USD ($) | |
Inventory [Line Items] | ||
Finished goods purchased | $ 22.5 | $ 48 |
Purchases reflected in finished goods inventory | 21.8 | 21.8 |
Finished goods inventory | $ 25.3 | $ 25.3 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Trillions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2021 | Mar. 27, 2020 | |
Income Tax Disclosure [Abstract] | |||
CARES Act of 2020 aid | $ 2 | ||
U.S. corporate statutory income tax rate | 16.20% | 35.60% | |
U.S. corporate income tax rate | 21.00% | 21.00% |
Changes in Accumulated Other _3
Changes in Accumulated Other Comprehensive Income (Loss) - Changes in Accumulated and Other Comprehensive Income (Loss) (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | $ 50,790,000 | |||
Ending balance | $ 102,491,000 | $ 136,399,000 | 102,491,000 | $ 136,399,000 |
Foreign Currency Adjustments [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | 6,096,000 | (45,621,000) | (31,264,000) | (37,434,000) |
Other comprehensive (loss) before reclassifications, net of tax | 2,968,000 | 5,076,000 | 2,197,000 | (3,111,000) |
Release of cumulative foreign currency translation adjustment to net loss as a result of disposition of international operations | 36,589,000 | |||
Amounts reclassified from accumulated other comprehensive income (loss) to the condensed consolidated statement of operations and comprehensive (loss) income, net of income tax | 0 | 0 | 0 | |
Net current-period other comprehensive (loss) | (2,968,000) | 5,076,000 | 34,392,000 | (3,111,000) |
Ending balance | 3,128,000 | (40,545,000) | 3,128,000 | (40,545,000) |
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | 1,772,000 | 1,348,000 | 1,700,000 | |
Other comprehensive (loss) before reclassifications, net of tax | (321,000) | 77,000 | (251,000) | |
Release of cumulative foreign currency translation adjustment to net loss as a result of disposition of international operations | (1,422,000) | |||
Amounts reclassified from accumulated other comprehensive income (loss) to the condensed consolidated statement of operations and comprehensive (loss) income, net of income tax | 187,000 | (3,000) | 189,000 | |
Net current-period other comprehensive (loss) | (134,000) | (1,348,000) | (62,000) | |
Ending balance | 0 | 1,638,000 | 0 | 1,638,000 |
Accumulated Other Comprehensive Income (Loss) [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | 6,096,000 | (43,849,000) | (29,916,000) | (35,734,000) |
Other comprehensive (loss) before reclassifications, net of tax | 2,968,000 | 4,755,000 | 2,120,000 | (3,362,000) |
Release of cumulative foreign currency translation adjustment to net loss as a result of disposition of international operations | 35,167,000 | |||
Amounts reclassified from accumulated other comprehensive income (loss) to the condensed consolidated statement of operations and comprehensive (loss) income, net of income tax | 187,000 | (3,000) | 189,000 | |
Net current-period other comprehensive (loss) | 2,968,000 | 4,942,000 | 33,044,000 | (3,173,000) |
Ending balance | $ 3,128,000 | $ (38,907,000) | $ 3,128,000 | $ (38,907,000) |
Capital Stock - Additional Info
Capital Stock - Additional Information (Detail) | Sep. 30, 2021$ / sharesshares |
Equity [Abstract] | |
Authorized capital stock | shares | 300,000,000 |
Common stock, par value | $ / shares | $ 0.01 |
Preferred stock, par value | $ / shares | $ 0.01 |
Authorized preferred stock | shares | 15,000,000 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Jan. 31, 2020Store | Mar. 31, 2021Store | Sep. 30, 2020USD ($)Store | Mar. 31, 2020Store | Sep. 30, 2021Segment | Sep. 30, 2020USD ($) | Dec. 31, 2019Store | |
Segment Reporting [Abstract] | |||||||
Number of business segments | Segment | 2 | ||||||
Number of stores identified for closure | 21 | 21 | 55 | ||||
Number of stores closed | 20 | 21 | 35 | ||||
Restructuring Costs | $ | $ 3,110 | $ 33,698 |
Segment Information - Schedule
Segment Information - Schedule of Company's Industry Segment Data (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Net sales* | $ 510,199 | $ 533,775 | $ 1,472,752 | $ 1,202,509 |
Gross Profit | 183,698 | 177,852 | 553,156 | 311,922 |
(Loss) income from operations | 20,054 | (27,099) | 81,944 | (765,263) |
Interest expense, net | 23,899 | 13,422 | 64,229 | 63,954 |
Other (income) expense, net | (1,444) | (2,873) | (2,317) | (4,287) |
Gain on debt refinancing | (273,149) | (1,105) | (273,149) | |
(Loss) income before income taxes | (2,401) | 235,501 | 20,032 | (560,355) |
Eliminations [Member] | ||||
Net sales* | (168,308) | (179,049) | (425,947) | (345,167) |
Net Sales [Member] | Operating Segments [Member] | ||||
Net sales* | 678,507 | 712,824 | 1,898,699 | 1,547,676 |
Wholesale [Member] | ||||
Net sales* | 111,326 | 167,572 | 296,785 | 347,548 |
Gross Profit | 21,876 | (42,313) | 74,591 | 50,538 |
(Loss) income from operations | (3,873) | (12,738) | (7,690) | (232,178) |
Wholesale [Member] | Eliminations [Member] | ||||
Net sales* | (168,308) | (179,049) | (425,947) | (345,167) |
Wholesale [Member] | Net Sales [Member] | Operating Segments [Member] | ||||
Net sales* | 279,634 | 346,621 | 722,732 | 692,715 |
Retail [Member] | ||||
Net sales* | 398,873 | 366,203 | 1,175,967 | 854,961 |
Gross Profit | 161,822 | 135,539 | 478,565 | 261,384 |
(Loss) income from operations | 23,927 | (14,361) | 89,634 | (533,085) |
Retail [Member] | Eliminations [Member] | ||||
Net sales* | 0 | 0 | 0 | 0 |
Retail [Member] | Net Sales [Member] | ||||
Net sales* | 398,873 | 366,203 | 1,175,967 | 854,961 |
Retail [Member] | Net Sales [Member] | Operating Segments [Member] | ||||
Net sales* | $ 398,873 | $ 366,203 | $ 1,175,967 | $ 854,961 |
Derivative Financial Instrume_2
Derivative Financial Instruments - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Foreign Exchange Contracts [Member] | |
Derivative [Line Items] | |
Notional amounts | $ 0 |
Foreign Exchange Risk Management [Member] | |
Derivative [Line Items] | |
Hedging effectiveness | 100.00% |
Foreign Exchange Risk Management [Member] | Maximum [Member] | |
Derivative [Line Items] | |
Foreign exchange forward contracts maturity | 1 year |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Carrying Amount and Fair Value (Detail) $ in Thousands | Sep. 30, 2021USD ($) |
Debt Instrument [Line Items] | |
Debt Instrument Carrying Amount | $ 1,371,672 |
8.75% Senior Secured First Lien Notes - due 2026 [Member] | Senior Secured First Lien Notes [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument Carrying Amount | 750,000 |
Debt Instrument Fair Value | 780,000 |
6.125% Senior Notes - due 2023 [Member] | Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument Carrying Amount | 22,924 |
Debt Instrument Fair Value | 20,288 |
6.625% Senior Notes - due 2026 [Member] | Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument Carrying Amount | 92,254 |
Debt Instrument Fair Value | 75,648 |
First Lien Party City Notes - due 2025 [Member] | Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument Carrying Amount | 198,076 |
Debt Instrument Fair Value | 186,191 |
First Lien Anagram Notes - due 2025 [Member] | Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument Carrying Amount | 150,486 |
Debt Instrument Fair Value | 170,049 |
Second Lien Anagram Notes - due 2026 [Member] | Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument Carrying Amount | 144,665 |
Debt Instrument Fair Value | $ 141,772 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Basic and Diluted Loss Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Earnings Per Share [Abstract] | ||||
Net (Loss) income attributable to common shareholders of Party City Holdco Inc. | $ (2,789) | $ 239,707 | $ 12,958 | $ (431,821) |
Weighted average shares - Basic | 112,037,224 | 106,709,307 | 111,431,623 | 97,872,174 |
Effect of dilutive securities: | ||||
Warrants | 0 | 0 | 41,414 | 0 |
Restricted stock units | 0 | 166,324 | 4,036,805 | 0 |
Stock options | 0 | 0 | 312,279 | 0 |
Weighted average shares - Diluted | 112,037,224 | 106,875,631 | 115,822,121 | 97,872,174 |
Net (loss) income per share attributable to common shareholders of Party City Holdco Inc. -Basic | $ (0.02) | $ 2.25 | $ 0.12 | $ (4.41) |
Net (loss) income per share attributable to common shareholders of Party City Holdco Inc. -Diluted | $ (0.02) | $ 2.24 | $ 0.11 | $ (4.41) |
Earnings Per share - Additional
Earnings Per share - Additional Information (Detail) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Employee Stock Option [Member] | ||||
Disclosure Of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from calculation of earnings per share | 1,884,619 | 3,475,621 | 1,048,319 | 3,475,621 |
Warrant [Member] | ||||
Disclosure Of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from calculation of earnings per share | 1,000,000 | 1,000,000 | ||
Restricted Stock Units (RSUs) [Member] | ||||
Disclosure Of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from calculation of earnings per share | 6,984,119 | 263,727 | 168,897 | 584,258 |
Current and Long-Term Obligat_3
Current and Long-Term Obligations - Summary of Long-Term Obligations (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Feb. 28, 2021 | Dec. 31, 2020 | Sep. 30, 2020 |
Debt Instrument [Line Items] | ||||
Total long-term obligations, Principal Amount | $ 1,245,073 | |||
Total long-term obligations, Gross Carrying Amount | 1,371,672 | |||
Total long term obligations, Deferred Financing Costs | (19,489) | |||
Total long-term obligations, Net Carrying Amount | 1,352,183 | $ 1,343,384 | $ 1,348,680 | |
Current portion, Net Carrying Amount | (1,297) | (13,576) | (14,342) | |
Long-term obligations excluding current portion, Principal Amount | 1,243,776 | |||
Long-term obligations excluding current portion, Gross Carrying Amount | 1,370,375 | |||
Long-term obligations excluding current portion, Deferred Financing | (19,489) | |||
Long-term obligations excluding current portion, Net Carrying Amount | 1,350,886 | 1,329,808 | 1,334,338 | |
Senior Secured Term Loan Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Total long-term obligations, Principal Amount | 0 | |||
Total long-term obligations, Gross Carrying Amount | 0 | |||
Total long term obligations, Deferred Financing Costs | 0 | |||
Total long-term obligations, Net Carrying Amount | 0 | |||
Senior Secured Term Loan Facility [Member] | Term Loan Credit Agreement [Member] | ||||
Debt Instrument [Line Items] | ||||
Total long-term obligations, Net Carrying Amount | 690,165 | 693,906 | ||
8.75% Senior Secured First Lien Notes due 2026 [Member] | ||||
Debt Instrument [Line Items] | ||||
Total long-term obligations, Principal Amount | 750,000 | $ 750,000 | ||
Total long-term obligations, Gross Carrying Amount | 750,000 | |||
Total long term obligations, Deferred Financing Costs | (17,876) | |||
Total long-term obligations, Net Carrying Amount | 732,124 | 0 | 0 | |
6.125% Senior Notes due 2023 [Member] | ||||
Debt Instrument [Line Items] | ||||
Total long-term obligations, Principal Amount | 22,924 | |||
Total long-term obligations, Gross Carrying Amount | 22,924 | |||
Total long term obligations, Deferred Financing Costs | (104) | |||
Total long-term obligations, Net Carrying Amount | 22,820 | 22,779 | 22,765 | |
6.625% Senior Notes due 2026 [Member] | ||||
Debt Instrument [Line Items] | ||||
Total long-term obligations, Principal Amount | 92,254 | |||
Total long-term obligations, Gross Carrying Amount | 92,254 | |||
Total long term obligations, Deferred Financing Costs | (699) | |||
Total long-term obligations, Net Carrying Amount | 91,555 | 106,315 | 106,273 | |
Finance lease obligations [Member] | ||||
Debt Instrument [Line Items] | ||||
Total long-term obligations, Principal Amount | 13,267 | |||
Total long-term obligations, Gross Carrying Amount | 13,267 | |||
Total long term obligations, Deferred Financing Costs | 0 | |||
Total long-term obligations, Net Carrying Amount | 13,267 | 13,983 | 14,749 | |
First Lien Party City Notes due 2025 [Member] | ||||
Debt Instrument [Line Items] | ||||
Total long-term obligations, Principal Amount | 161,669 | |||
Total long-term obligations, Gross Carrying Amount | 198,076 | |||
Total long term obligations, Deferred Financing Costs | 0 | |||
Total long-term obligations, Net Carrying Amount | 198,076 | 206,775 | 207,925 | |
First Lien Anagram Notes due 2025 [Member] | ||||
Debt Instrument [Line Items] | ||||
Total long-term obligations, Principal Amount | 115,804 | |||
Total long-term obligations, Gross Carrying Amount | 150,486 | |||
Total long term obligations, Deferred Financing Costs | (810) | |||
Total long-term obligations, Net Carrying Amount | 149,676 | 151,335 | 150,958 | |
Second Lien Anagram Notes due 2026 [Member] | ||||
Debt Instrument [Line Items] | ||||
Total long-term obligations, Principal Amount | 89,155 | |||
Total long-term obligations, Gross Carrying Amount | 144,665 | |||
Total long term obligations, Deferred Financing Costs | 0 | |||
Total long-term obligations, Net Carrying Amount | $ 144,665 | $ 152,032 | $ 152,104 |
Current and Long-Term Obligat_4
Current and Long-Term Obligations - Summary of Long-Term Obligations (Parenthetical) (Detail) | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Feb. 28, 2021 | |
8.75% Senior Secured First Lien Notes due 2026 [Member] | ||||
Debt Instrument [Line Items] | ||||
Notes issued rate | 8.75% | 8.75% | 8.75% | 8.75% |
Debt instrument maturity period | 2026 | 2026 | 2026 | |
6.125% Senior Notes due 2023 [Member] | ||||
Debt Instrument [Line Items] | ||||
Notes issued rate | 6.125% | 6.125% | 6.125% | |
Debt instrument maturity period | 2023 | 2023 | 2023 | |
6.625% Senior Notes due 2026 [Member] | ||||
Debt Instrument [Line Items] | ||||
Notes issued rate | 6.625% | 6.625% | 6.625% | |
Debt instrument maturity period | 2026 | 2026 | 2026 | |
First Lien Party City Notes due 2025 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument maturity period | 2025 | 2025 | 2025 | |
First Lien Anagram Notes due 2025 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument maturity period | 2025 | 2025 | 2025 | |
Second Lien Anagram Notes due 2026 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument maturity period | 2026 | 2026 | 2026 |
Current and Long-Term Obligat_5
Current and Long-Term Obligations - Additional Information (Detail) - USD ($) $ in Thousands | May 07, 2021 | Feb. 28, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Apr. 25, 2019 | Mar. 31, 2019 |
Debt Instrument [Line Items] | ||||||||
Long-term obligations, principal amount | $ 1,245,073 | |||||||
Minimum [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Commitment fee percentage | 0.50% | |||||||
Maximum [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Commitment fee percentage | 1.00% | |||||||
8.75% Senior Secured First Lien Notes due 2026 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument maturity, year and month | 2026-02 | |||||||
Long-term obligations, principal amount | $ 750,000 | $ 750,000 | ||||||
Notes issued rate | 8.75% | 8.75% | 8.75% | 8.75% | ||||
Third-party fees | $ 18,976 | |||||||
Debt instrument, frequency of periodic payment | semi-annually | |||||||
Debt instrument, payment terms | Interest on the 8.750% Senior Notes is payable semi-annually in arrears on February 15th and August 15th of each year. The 8.750% Senior Notes are guaranteed, jointly and severally, on a senior secured basis by each of PCHI’s existing and future domestic subsidiaries. | |||||||
Repurchase of senior notes of principal amount | 101.00% | |||||||
8.75% Senior Secured First Lien Notes due 2026 [Member] | Debt Instrument Redemption on or after August 15, 2023 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Percentage price of principal amount to be redeemed | 104.375% | |||||||
8.75% Senior Secured First Lien Notes due 2026 [Member] | Debt Instrument Redemption on or after August 15, 2024 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Percentage price of principal amount to be redeemed | 102.188% | |||||||
8.75% Senior Secured First Lien Notes due 2026 [Member] | Debt Instrument Redemption on or after August 15, 2025 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Percentage price of principal amount to be redeemed | 100.00% | |||||||
8.75% Senior Secured First Lien Notes due 2026 [Member] | Debt Instrument Redemption By Equity Offering Before August 15, 2023 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Percentage price of principal amount to be redeemed | 108.75% | |||||||
Percentage of principal amount to be redeemed | 40.00% | |||||||
Equity offering for senior notes description | cash proceeds from certain equity offerings | |||||||
8.75% Senior Secured First Lien Notes due 2026 [Member] | Debt Instrument Redemption before August 15, 2023 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Percentage price of principal amount to be redeemed | 100.00% | |||||||
8.75% Senior Secured First Lien Notes due 2026 [Member] | Debt Instrument Redemption at Any Time Prior to August 15, 2023 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Percentage price of principal amount to be redeemed | 103.00% | |||||||
Percentage of principal amount to be redeemed | 10.00% | |||||||
US Treasury Funds [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Securities Current | $ 100,100 | |||||||
Revolving Credit Facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Credit facility borrowing maximum capacity | $ 640,000 | |||||||
ABL Facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of credit facility, remaining borrowing capacity | $ 280,300 | $ 176,500 | $ 178,500 | |||||
ABL Facility [Member] | Revolving Credit Facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Credit facility borrowing maximum capacity | $ 640,000 | 540,000 | ||||||
Debt instrument maturity, year and month | 2024-05 | 2026-02 | 2023-08 | |||||
Letters of credit outstanding maximum under our ABL facility | $ 50,000 | |||||||
Outstanding aggregate principal amount, prepaid | $ 44,000 | |||||||
Reduction in line of credit facility | $ 475,000 | |||||||
Line of credit facility, remaining borrowing capacity | $ 14,600 | |||||||
Third-party fees | $ 2,400 | |||||||
Credit facility, current borrowing capacity | $ 15,000 | |||||||
Interest rate description | All revolving loans will bear interest, at the Anagram's election, at a per annum rate equal to either (a) a base rate, which represents for any day a rate equal to the greater of (i) the prime rate on such day subject to a 0% floor, (ii) the federal funds rate plus 5.0% and (iii) one-half of one percent per annum, in each case, plus a margin of 1.5% or (b) the Daily One Month LIBOR subject to a 0.5% floor, plus a margin of 2.5% | |||||||
ABL Facility [Member] | Revolving Credit Facility [Member] | LIBOR [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 0.50% | |||||||
ABL Facility [Member] | Revolving Credit Facility [Member] | Prime Rate [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 0.00% | |||||||
ABL Facility [Member] | Revolving Credit Facility [Member] | Alternate Base Interest Rate Loans [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 2.50% | |||||||
ABL Facility [Member] | Revolving Credit Facility [Member] | Federal Funds Rate [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 5.00% | |||||||
ABL Facility [Member] | Revolving Credit Facility [Member] | One-half of One Percent Margin [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 1.50% | |||||||
ABL Facility [Member] | Letter of Credit [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Credit facility borrowing maximum capacity | $ 3,000 | |||||||
Term Loan Credit Agreement [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Prepayment of outstanding balance from the proceeds of senior notes | $ 694,220 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Summary of Revenue from Contracts with Customers (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Net revenues | $ 510,199 | $ 533,775 | $ 1,472,752 | $ 1,202,509 |
Retail Segment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 398,873 | 366,203 | 1,175,967 | 854,961 |
Wholesale Segment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 111,326 | 167,572 | 296,785 | 347,548 |
Other Retail Segment Store [Member] | Retail Segment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 7,175 | 7,957 | 12,549 | 25,680 |
Net Sales [Member] | Retail Segment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 398,873 | 366,203 | 1,175,967 | 854,961 |
North America [Member] | Party City Stores [Member] | Retail Segment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 391,698 | 358,246 | 1,163,418 | 829,281 |
Domestic [Member] | Wholesale Segment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 74,944 | 79,388 | 192,090 | 177,263 |
International [Member] | Wholesale Segment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | $ 36,382 | $ 88,184 | $ 104,695 | $ 170,285 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Additional Information (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | Sep. 30, 2020 |
Revenue from Contract with Customer [Abstract] | |||
Allowance for credit losses | $ 7,248 | $ 7,232 | $ 9,590 |
Kazzam, LLC - Additional Inform
Kazzam, LLC - Additional Information (Detail) - Kazzam LLC [Member] - shares | Mar. 23, 2020 | Dec. 31, 2019 |
Schedule Of Equity Method Investments [Line Items] | ||
Equity method investment, ownership percentage | 26.00% | |
Number of years for royalty on net service revenue | 3 years | |
Maximum [Member] | ||
Schedule Of Equity Method Investments [Line Items] | ||
Warrant to purchase common stock | 1,000,000 |