Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2022 | Jul. 21, 2022 | |
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 | 112,995,932 | |
Amendment Flag | false | |
Entity Central Index Key | 0001592058 | |
Entity Filer Category | Large Accelerated Filer | |
Document Period End Date | Jun. 30, 2022 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
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 | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 |
Current assets: | |||
Cash and cash equivalents | $ 39,237 | $ 47,914 | $ 84,452 |
Accounts receivable, net | 93,445 | 93,301 | 86,745 |
Inventories, net | 676,731 | 443,295 | 426,128 |
Prepaid expenses and other current assets | 239,865 | 57,656 | 68,363 |
Income tax receivable | 1,499 | 56,317 | 55,421 |
Total current assets | 1,050,777 | 698,483 | 721,109 |
Property, plant and equipment, net | 240,480 | 221,870 | 218,532 |
Operating lease asset | 716,572 | 693,875 | 684,802 |
Goodwill | 664,269 | 664,296 | 660,597 |
Trade names | 383,749 | 383,737 | 383,761 |
Other intangible assets, net | 20,916 | 23,687 | 27,825 |
Other assets, net | 26,931 | 25,952 | 26,193 |
Total assets | 3,103,694 | 2,711,900 | 2,722,819 |
Current liabilities: | |||
Loans and notes payable | 231,911 | 84,181 | 99,933 |
Accounts payable | 275,316 | 161,736 | 129,802 |
Accrued expenses | 181,671 | 195,531 | 190,347 |
Current portion of operating lease liability | 116,816 | 116,437 | 136,749 |
Income taxes payable | 9,656 | 10,801 | 2,537 |
Current portion of long-term obligations | 920 | 1,373 | 1,265 |
Total current liabilities | 816,290 | 570,059 | 560,633 |
Long-term obligations, excluding current portion | 1,347,322 | 1,351,189 | 1,358,916 |
Long-term portion of operating lease liability | 677,016 | 655,875 | 625,157 |
Deferred income tax liabilities, net | 21,138 | 29,195 | 37,052 |
Other long-term liabilities | 21,952 | 22,868 | 33,288 |
Total liabilities | 2,883,718 | 2,629,186 | 2,615,046 |
Commitments and contingencies | |||
Stockholders’ equity: | |||
Common stock (112,990,705, 112,170,944 and 111,476,496 shares outstanding and 125,498,610, 124,157,500 and 122,790,983 shares issued at June 30, 2022, December 31, 2021, and June 30, 2021, respectively) | 1,384 | 1,384 | 1,383 |
Additional paid-in capital | 986,307 | 982,307 | 978,167 |
Accumulated deficit | (436,701) | (571,985) | (549,693) |
Accumulated other comprehensive income | 3,124 | 3,541 | 6,096 |
Total Party City Holdco Inc. stockholders’ equity before common stock held in treasury | 554,114 | 415,247 | 435,953 |
Less: Common stock held in treasury, at cost (12,507,905, 11,986,556 and 11,314,487 shares at June 30, 2022, December 31, 2021, and June 30, 2021, respectively) | (334,138) | (332,533) | (327,394) |
Total Party City Holdco Inc. stockholders’ equity | 219,976 | 82,714 | 108,559 |
Noncontrolling interests | 0 | 0 | (786) |
Total stockholders’ equity | 219,976 | 82,714 | 107,773 |
Total liabilities and stockholders’ equity | $ 3,103,694 | $ 2,711,900 | $ 2,722,819 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - shares | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 |
Statement of Financial Position [Abstract] | |||
Common stock, shares outstanding | 112,990,705 | 112,170,944 | 111,476,496 |
Common stock, shares issued | 125,498,610 | 124,157,500 | 122,790,983 |
Treasury stock, shares | 12,507,905 | 11,986,556 | 11,314,487 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Statement [Abstract] | ||||
Net sales | $ 527,449 | $ 535,746 | $ 960,425 | $ 962,553 |
Cost of sales | 349,477 | 318,574 | 644,445 | 593,095 |
Gross profit | 177,972 | 217,172 | 315,980 | 369,458 |
Selling , general and administrative expense | 167,306 | 155,336 | 325,366 | 304,357 |
Loss on disposal of assets in international operations | 0 | 0 | 0 | 3,211 |
Income (loss) from operations | 10,666 | 61,836 | (9,386) | 61,890 |
Interest expense, net | 24,184 | 23,116 | 47,579 | 40,330 |
Other (income), net | (1,800) | (1,300) | (2,003) | (873) |
(Loss) income before income taxes | (11,718) | 40,020 | (54,962) | 22,433 |
Income tax (benefit) expense | (173,891) | 10,209 | (190,246) | 6,740 |
Net income | 162,173 | 29,811 | 135,284 | 15,693 |
Less: Net income attributable to noncontrolling interests | 0 | 0 | 0 | (54) |
Net income attributable to common shareholders of Party City Holdco Inc. | $ 162,173 | $ 29,811 | $ 135,284 | $ 15,747 |
Net income per share attributable to common shareholders of Party City Holdco Inc. -Basic | $ 1.44 | $ 0.27 | $ 1.20 | $ 0.14 |
Net income per share attributable to common shareholders of Party City Holdco Inc. -Diluted | $ 1.42 | $ 0.26 | $ 1.18 | $ 0.14 |
Weighted-average number of common shares-Basic | 112,632,860 | 111,340,295 | 112,519,950 | 111,128,822 |
Weighted-average number of common shares-Diluted | 114,604,275 | 116,251,151 | 115,115,172 | 115,499,304 |
Dividends declared per share | $ 0 | $ 0 | $ 0 | $ 0 |
Comprehensive income | $ 160,827 | $ 30,761 | $ 134,890 | $ 51,742 |
Less: Comprehensive income attributable to noncontrolling interests | 0 | 0 | 0 | (30) |
Comprehensive income attributable to common shareholders of Party City Holdco Inc. | $ 160,827 | $ 30,761 | $ 134,890 | $ 51,772 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total Party City Holdco Inc. Stockholders' Equity Before Common Stock Held In Treasury [Member] | Common Stock Held In Treasury [Member] | Total Party City Holdco Inc. Stockholders' Equity [Member] | Non-Controlling Interests [Member] |
Balance at Dec. 31, 2020 | $ 50,521 | $ 1,373 | $ 971,972 | $ (565,457) | $ (29,916) | $ 377,972 | $ (327,182) | $ 50,790 | $ (269) |
Net income | 15,693 | 15,747 | 15,747 | 15,747 | (54) | ||||
Stock-based compensation | 2,887 | 2,887 | 2,887 | 2,887 | |||||
Warrant exercise | 4 | (4) | |||||||
Disposed non-controlling interest | (487) | (487) | |||||||
Treasury stock purchases | (212) | (212) | (212) | ||||||
Exercise of stock options | 3,322 | 6 | 3,316 | 3,322 | 3,322 | ||||
Foreign currency adjustments | 37,397 | (4) | 17 | 37,360 | 37,373 | 37,373 | 24 | ||
Impact of foreign exchange contracts, net | (1,348) | (1,348) | (1,348) | (1,348) | |||||
Balance at Jun. 30, 2021 | 107,773 | 1,383 | 978,167 | (549,693) | 6,096 | 435,953 | (327,394) | 108,559 | (786) |
Balance at Mar. 31, 2021 | 74,894 | 1,383 | 976,037 | (579,486) | 5,134 | 403,068 | (327,388) | 75,680 | (786) |
Net income | 29,811 | 29,811 | 29,811 | 29,811 | |||||
Stock-based compensation | 1,657 | 1,657 | 1,657 | 1,657 | |||||
Treasury stock purchases | (6) | (6) | (6) | ||||||
Exercise of stock options | 467 | 467 | 467 | 467 | |||||
Foreign currency adjustments | 950 | 6 | (18) | 962 | 950 | 950 | |||
Balance at Jun. 30, 2021 | 107,773 | 1,383 | 978,167 | (549,693) | 6,096 | 435,953 | (327,394) | 108,559 | $ (786) |
Balance at Dec. 31, 2021 | 82,714 | 1,384 | 982,307 | (571,985) | 3,541 | 415,247 | (332,533) | 82,714 | |
Net income | 135,284 | 135,284 | 135,284 | 135,284 | |||||
Stock-based compensation | 3,977 | 3,977 | 3,977 | 3,977 | |||||
Treasury stock purchases | (1,605) | (1,605) | (1,605) | ||||||
Foreign currency adjustments | (394) | 23 | (417) | (394) | (394) | ||||
Balance at Jun. 30, 2022 | 219,976 | 1,384 | 986,307 | (436,701) | 3,124 | 554,114 | (334,138) | 219,976 | |
Balance at Mar. 31, 2022 | 57,757 | 1,384 | 984,060 | (598,874) | 4,473 | 391,043 | (333,286) | 57,757 | |
Net income | 162,173 | 162,173 | 162,173 | 162,173 | |||||
Stock-based compensation | 2,244 | 2,244 | 2,244 | 2,244 | |||||
Treasury stock purchases | (852) | (852) | (852) | ||||||
Foreign currency adjustments | (1,346) | 3 | (1,349) | (1,346) | (1,346) | ||||
Balance at Jun. 30, 2022 | $ 219,976 | $ 1,384 | $ 986,307 | $ (436,701) | $ 3,124 | $ 554,114 | $ (334,138) | $ 219,976 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Cash flows (used in) provided by operating activities: | ||
Net income | $ 135,284 | $ 15,693 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||
Depreciation and amortization expense | 31,606 | 34,860 |
Amortization of deferred financing costs and original issuance discounts | 2,566 | 1,937 |
Provision for doubtful accounts | 21 | 1,171 |
Deferred income tax (benefit) expense | (8,061) | 2,622 |
Change in operating lease liability/asset | (7,308) | (52,315) |
Undistributed income in equity method investments | (1,376) | (211) |
Loss on disposal of assets | 203 | 109 |
Loss on disposal of assets in international operations | 0 | 3,211 |
Long-lived assets impairment | 9,983 | 0 |
Stock-based compensation | 3,977 | 2,887 |
Loss on debt refinancing | 0 | 226 |
Changes in operating assets and liabilities: | ||
Increase in accounts receivable | (154) | (2,395) |
Increase in inventories | (234,939) | (15,191) |
Increase in prepaid expenses and other current assets | (127,273) | (31,055) |
Increase in accounts payable, accrued expenses and income taxes payable | 96,338 | 52,228 |
Net cash (used in) provided by operating activities | (99,133) | 13,777 |
Cash flows (used in) investing activities: | ||
Cash paid in connection with acquisitions, net of cash acquired | (7) | 0 |
Capital expenditures | (51,094) | (40,452) |
Proceeds from disposal of property and equipment | 1,622 | 0 |
Proceeds from sale of international operations, net of cash disposed | 0 | 20,556 |
Net cash (used in) investing activities | (49,479) | (19,896) |
Cash flows provided by (used in) financing activities: | ||
Repayment of loans, notes payable and long-term obligations | (25,892) | (836,435) |
Proceeds from loans, notes payable and long-term obligations | 167,444 | 794,750 |
Treasury stock purchases | (1,605) | (212) |
Exercise of stock options | 0 | 3,322 |
Debt issuance costs | 0 | (21,437) |
Net cash provided by (used in) financing activities | 139,947 | (60,012) |
Effect of exchange rate changes on cash and cash equivalents | (12) | 274 |
Net (decrease) in cash and cash equivalents and restricted cash | (8,677) | (65,857) |
Change in cash classified within current assets held for sale | 0 | 31,628 |
Cash and cash equivalents and restricted cash at beginning of period | 48,914 | 119,681 |
Cash and cash equivalents and restricted cash at end of period | 40,237 | 85,452 |
Supplemental disclosure of cash flow information: | ||
Cash paid during the period for interest expense | 42,501 | 16,594 |
Cash (received) paid during the period for income taxes, net of refunds | $ (50,994) | $ 3,411 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 |
Statement of Cash Flows [Abstract] | |||
Restricted cash | $ 1,000 | $ 1,000 | $ 1,000 |
Description of Business
Description of Business | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | Note 1 – Description of Business Party City Holdco Inc. (the “Company,” “Party City Holdco,” “we,” or “us”) is a leading party goods company by revenue in North America and, the Company believes, the largest vertically integrated supplier of decorated party goods globally by revenue. With hundreds of retail stores filled with thousands of products across the United States, we make it easy for our customers to find the perfect party solution through our assortment of party products, balloons, and costumes for their celebration aided by the support of our party experts both in-store and online. Our retail operations include 826 specialty retail party supply stores (including franchise stores) throughout North America operating under the names Party City and Halloween City, and e-commerce websites which offer rapid, contactless, and same day shipping options (including in-store and at curbside), principally through the domain name PartyCity.com. In addition to our retail operations, we are also a global designer, manufacturer and distributor of decorated consumer party products, with items found in retail outlets worldwide, including independent party supply stores, mass merchants, grocery retailers, e-commerce merchandisers and dollar stores. Party City Holdco is a holding company with no operating assets or operations. The Company owns 100 % of PC Nextco Holdings, LLC (“PC Nextco”), 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 | 6 Months Ended |
Jun. 30, 2022 | |
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. 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, 2021. 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 November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832), Disclosures by Business Entities About Government Assistance, which requires entities to provide disclosures on material government assistance transactions for annual reporting periods. The disclosures include information around the nature of the assistance, the related accounting policies used to account for government assistance, the effect of government assistance on the entity’s financial statements, and any significant terms and conditions of the agreements, including commitments and contingencies. The new standard became effective for the Company on January 1, 2022 and only impacts annual financial statement footnote disclosures. The adoption did not have a material effect on our consolidated financial statements. |
Disposition of Assets
Disposition of Assets | 6 Months Ended |
Jun. 30, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposition of Assets and Lease-Related Impairments | Note 3 – Disposition of Assets and Lease-Related Impairments During the three and six months ended June 30, 2022 the Company recorded an impairment charge of $ 7,829 ($ 6,809 and $ 1,020 was recorded in the Wholesale and Retail segments, respectively) related to certain lease assets and property and equipment. The charge relates to vacated office space and retail stores. In December 2021, the Company announced the closure of a manufacturing facility in New Mexico. The facility ceased operations in February 2022. In December 2021, the Company recorded charges of $ 11,545 , consisting primarily of equipment and inventory impairments of $ 8,650 and $ 2,425 , respectively, and severance and other cost s of $ 470 . During the six months ended June 30, 2022, additional charges of $ 2,154 were recorded. 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 | 6 Months Ended |
Jun. 30, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories, net | Note 4 – Inventories, net Inventories, net consisted of the following: June 30, December 31, June 30, Finished goods $ 633,023 $ 393,609 $ 384,949 Raw materials 23,581 25,624 22,274 Work in process 20,127 24,062 18,905 $ 676,731 $ 443,295 $ 426,128 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 six months ended June 30, 2022, the Company purchased $ 48.5 million and $ 62.4 million. As of June 30, 2022, approximately $ 64.7 million of purchases are reflected in finished goods inventory with accounts payable of $ 52.6 million related to such transactions. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 5 – Income Taxes The Company’s effective income tax rate was 346.1 % for the six months ended June 30, 2022, and 30.1 % for the six months ended June 30, 2021. The effective income tax rate for interim periods is determined using an annual effective income tax rate, adjusted for discrete items, which due to nearly break-even pretax earnings and the resulting exaggerated impact of permanent tax adjustments and the establishment of a partial valuation allowance against U.S. deferred tax assets, results in an effective income tax rate for the six months ended June 30, 2022 that is unusually high as compared to the prior period. The result of applying this rate to the pretax loss for the six months ended June 30, 2022, is an income tax benefit of $ 190,246 , which is mostly reflected in prepaid expenses on the consolidated balance sheet and statement of cash flow. Given the seasonal nature of our business, this income tax benefit is expected to reverse in the second half of the year when we expect to earn pretax income. The rate is different from the statutory rate of 21.0 % primarily due to state taxes, and valuation allowance resulting from interest carryforward deductions limited by Internal Revenue Code ( “IRC”) Section 163(j). The effective income tax rate for the three months ended June 30, 2022 was 1,484.0 %, and 25.5 % for the three months ended June 30, 2021. The rate was unusually high due the reasons explained above. |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Income (Loss) | Note 6 – Changes in Accumulated Other Comprehensive Income (Loss) The changes in accumulated other comprehensive income (loss) consisted of the following: Three Months Ended June 30, 2022 Foreign Total, Balance at March 31, 2022 $ 4,473 $ 4,473 Other comprehensive (loss), net of tax ( 1,349 ) ( 1,349 ) Balance at June 30, 2022 $ 3,124 $ 3,124 Three Months Ended June 30, 2021 Foreign Total, Balance at March 31, 2021 $ 5,134 $ 5,134 Other comprehensive income, net of tax 962 962 Balance at June 30, 2021 $ 6,096 $ 6,096 Six Months Ended June 30, 2022 Foreign Total, Balance at December 31, 2021 $ 3,541 $ 3,541 Other comprehensive (loss), net of tax ( 417 ) ( 417 ) Balance at June 30, 2022 $ 3,124 $ 3,124 Six Months Ended June 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 771 77 848 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 (loss) to the condensed consolidated statement of operations and comprehensive income (loss), net of income tax — ( 3 ) ( 3 ) Net current-period other comprehensive income (loss) 37,360 ( 1,348 ) 36,012 Balance at June 30, 2021 $ 6,096 $ — $ 6,096 |
Capital Stock
Capital Stock | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
Capital Stock | Note 7 – Capital Stock At June 30, 2022, 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 | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Segment Information | Note 8 – Segment Information Industry Segments The Company has two reportable operating segments: Wholesale and Retail. 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 and six months ended June 30, 2022 and 2021 was as follows: Wholesale Retail Consolidated Three Months Ended June 30, 2022 Net sales before eliminations $ 303,577 $ 423,478 $ 727,055 Eliminations ( 199,606 ) — ( 199,606 ) Net sales 103,971 423,478 527,449 Gross profit $ 19,820 $ 158,152 $ 177,972 (Loss) income from operations $ ( 10,278 ) $ 20,944 $ 10,666 Interest expense, net 24,184 Other (income), net ( 1,800 ) Loss before income taxes $ ( 11,718 ) Wholesale Retail Consolidated Three Months Ended June 30, 2021 Net sales before eliminations $ 230,961 $ 443,812 $ 674,773 Eliminations ( 139,027 ) — ( 139,027 ) Net sales 91,934 443,812 535,746 Gross profit $ 23,607 $ 193,565 $ 217,172 Loss from operations $ ( 3,225 ) $ 65,061 $ 61,836 Interest expense, net 23,116 Other expense, net ( 1,300 ) Income before income taxes $ 40,020 Wholesale Retail Consolidated Six Months Ended June 30, 2022 Net sales before eliminations $ 543,257 $ 764,429 $ 1,307,686 Eliminations ( 347,261 ) — ( 347,261 ) Net sales 195,996 764,429 960,425 Gross profit $ 44,462 $ 271,518 $ 315,980 Income (loss) from operations $ ( 6,777 ) $ ( 2,609 ) $ ( 9,386 ) Interest expense, net 47,579 Other (income), net ( 2,003 ) (Loss) before income taxes $ ( 54,962 ) Wholesale Retail Consolidated Six Months Ended June 30, 2021 Net sales before eliminations $ 443,098 $ 777,094 $ 1,220,192 Eliminations ( 257,639 ) — ( 257,639 ) Net sales 185,459 777,094 962,553 Gross profit $ 52,715 $ 316,743 $ 369,458 (Loss) income from operations $ ( 3,817 ) $ 65,707 $ 61,890 Interest expense, net 40,330 Other expense, net ( 873 ) (Loss) before income taxes $ 22,433 In January 2021, the Company closed the previously disclosed sale of a substantial portion of its international operations. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 9 – 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 | 6 Months Ended |
Jun. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Note 10 – 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. The Company did not have any foreign currency exchange contracts at June 30, 2022 or 2021. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 11 – 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. 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. 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 June 30, 2022 because of the short-term maturities of the instruments and/or their variable rates of interest. The carrying amounts and fair values of the Company’s notes and senior notes as of June 30, 2022 are as follows: June 30, 2022 Gross Carrying Fair 8.75% Senior Secured First Lien Notes – due 2026 $ 750,000 $ 504,375 6.125% Senior Notes – due 2023 22,924 19,170 6.625% Senior Notes – due 2026 92,254 52,585 First Lien Party City Notes – due 2025 193,426 134,189 First Lien Anagram Notes – due 2025 149,385 155,921 Second Lien Anagram Notes – due 2026 144,576 148,552 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 June 30, 2022 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 | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 12 – 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 June 30, Six Months Ended June 30, 2022 2021 2022 2021 Net income attributable to common shareholders of $ 162,173 $ 29,811 $ 135,284 $ 15,747 Weighted average shares - Basic 112,632,860 111,340,295 112,519,950 111,128,822 Effect of dilutive securities: Warrants — — — 62,121 Restricted stock units 1,971,415 4,568,313 2,561,521 3,971,807 Stock options — 342,543 33,702 336,554 Weighted average shares - Diluted 114,604,275 116,251,151 115,115,172 115,499,304 Net income per share attributable to common $ 1.44 $ 0.27 $ 1.20 $ 0.14 Net income per share attributable to common $ 1.42 $ 0.26 $ 1.18 $ 0.14 During the three months and six months ended June 30, 2022, 1,768,746 stock options and 4,537,272 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 and six months ended June 30, 2021, 1,706,449 stock options and 133,406 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. |
Current and Long-Term Obligatio
Current and Long-Term Obligations | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Current and Long-Term Obligations | Note 13 – Current and Long-Term Obligations Long-term obligations at June 30, 2022, December 31, 2021 and June 30, 2021 consisted of the following: June 30, December 31, June 30, Principal Amount Gross Carrying Amount Deferred Financing Costs Net Carrying Amount Net Carrying Amount Net Carrying Amount 8.75 % Senior Secured First Lien Notes – due 2026 $ 750,000 $ 750,000 $ ( 15,312 ) $ 734,688 $ 732,957 $ 731,305 6.125 % Senior Notes – due 2023 22,924 22,924 ( 62 ) 22,862 22,834 22,806 6.625 % Senior Notes – due 2026 92,254 92,254 ( 591 ) 91,663 91,591 91,519 First Lien Party City Notes – due 2025 161,669 193,426 — 193,426 198,004 202,588 First Lien Anagram Notes – due 2025 118,699 149,385 ( 653 ) 148,732 149,569 150,451 Second Lien Anagram Notes – due 2026 93,613 144,576 — 144,576 144,619 148,114 Finance lease obligations 12,295 12,295 — 12,295 12,988 13,398 Total long-term obligations 1,251,454 1,364,860 ( 16,618 ) 1,348,242 1,352,562 1,360,181 Less: current portion ( 920 ) ( 920 ) — ( 920 ) ( 1,373 ) ( 1,265 ) Long-term obligations, excluding current portion $ 1,250,534 $ 1,363,940 $ ( 16,618 ) $ 1,347,322 $ 1,351,189 $ 1,358,916 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, 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, LLC (“Anagram”) and each of its subsidiaries as an unrestricted subsidiary under the ABL Facility. 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. On March 18, 2022, the ABL Facility was further amended. The amendment modified certain eligibility criteria with respect to the inventory component of the borrowing base. The changes lengthen the permitted in-transit time for eligible in-transit inventory being shipped from a location outside of the United States, subject to a cap on the aggregate amount of foreign in-transit inventory that is eligible to be reflected in the borrowing base. PCHI had approximately $ 142.3 million, $ 192.4 million and $ 170.2 million of availability under the ABL Facility as of June 30, 2022, December 31, 2021 and June 30, 2021, respectively. As discussed further below, Anagram had a separate asset-based revolving credit facility and there was approximately $ 14.4 million of availability under the Anagram ABL Facility as of June 30, 2022. On July 19, 2022, the ABL Facility was amended. Pursuant to the amendment, the aggregate commitments under the ABL Facility were increased from $ 475,000 to $ 562,110.5 . The increase includes the establishment of a new $ 17,110.5 asset-based first-in, last-out revolving tranche (the “FILO Facility”). Commencing in March 2023, the borrowers will be required to make scheduled quarterly payments of the loans under the FILO Facility equal to 5.55 % of the original principal amount of the FILO Facility as in effect on the date of the ABL amendment (with a corresponding reduction to the aggregate commitments under the FILO Facility). The balance of the FILO Facility has the same final stated maturity date as the other loans under the ABL Facility, which is scheduled to occur in February 2026 (subject to a springing maturity at an earlier date, under certain circumstances, if the maturity date of certain other debt of PCHI has not been extended or refinanced). The ABL amendment replaced the London Interbank Offered Rate (“LIBOR”) as the interest rate benchmark under the ABL Credit Agreement with the forward-looking term rate based on the Secured Overnight Financing Rate, subject to a 0.10 % credit spread adjustment (“Adjusted Term SOFR”). Pursuant to the ABL amendment, outstanding loans under the ABL Credit Agreement bear interest at a rate per annum equal to the applicable margin plus, at the borrowers’ option, either (a) an alternate base rate (“ABR”), which is the highest of (i) the Administrative Agent’s prime rate, (ii) the federal funds effective rate plus 0.50 %, and (iii) Adjusted Term SOFR for a one-month tenor plus 1.00 %, or (b) Adjusted Term SOFR for the applicable interest period. Other than with respect to borrowings under the FILO Facility, the rates for the applicable margin for borrowings under the ABL Facility remain unchanged, ranging from 0.50 % to 0.75 % with respect to ABR borrowings and from 1.50 % to 1.75 % with respect to Adjusted Term SOFR borrowings. The applicable margin for borrowings under the FILO Facility is 1.75 % with respect to ABR borrowings and 2.75 % with respect to Adjusted Term SOFR borrowings. The ABL Amendment also modified certain other provisions of the ABL Credit Agreement, including, among other things, to make certain changes to the excess availability trigger for the springing fixed charge coverage ratio covenant in connection with the commitment increase under the ABL Facility. Pursuant to the ABL Amendment, PCHI must comply with such financial covenant if excess availability under the ABL Facility on any day is less than the greater of: (a) $ 46,000,000 (increased from $ 40,000,000 ) and (b) 10 % of the Total Line Cap (as defined therein). 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, 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 | 6 Months Ended |
Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Note 14 – Revenue from Contracts with Customers The following table summarizes revenue from contracts with customers for the three and six months ended June 30, 2022 and 2021: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Retail Net Sales: North American Party City Stores $ 421,679 $ 441,675 $ 761,078 $ 771,720 Other 1,800 2,137 3,352 5,374 Total Retail Net Sales $ 423,479 $ 443,812 $ 764,430 $ 777,094 Wholesale Net Sales: Domestic $ 64,607 $ 61,789 $ 126,816 $ 117,146 International 39,363 30,145 69,179 68,313 Total Wholesale Net Sales $ 103,970 $ 91,934 $ 195,995 $ 185,459 Total Consolidated Sales $ 527,449 $ 535,746 $ 960,425 $ 962,553 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 June 30, 2022 , December 31, 2021 and June 30, 2021, the allowance for credit losses was $ 7,102 , $ 8,057 and $ 7,933 , respectively. |
Kazzam, LLC
Kazzam, LLC | 6 Months Ended |
Jun. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Kazzam, LLC | Note 15 – 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. 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). 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 purchased 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. |
Subsequent Event
Subsequent Event | 6 Months Ended |
Jun. 30, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Event | Note 16 – Subsequent Event On August 8, 2022, Anagram International, Inc. and Anagram Holdings, LLC (collectively, the “Anagram Issuers”), each subsidiaries of Party City Holdco Inc. (the “Company”), intend to commence a solicitation of consents (the “Consent Solicitation”) of holders of the 15.00 % PIK/Cash Senior Secured First Lien Notes due 2025 and 10.00 % PIK/Cash Senior Secured Second Lien Notes due 2026 of the Anagram Issuers (collectively, the “Anagram Notes”) to certain waivers of compliance with the indentures governing the Anagram Notes, each dated July, 30, 2020, among the Anagram Issuers, Ankura Trust Company, LLC, as trustee and collateral trustee and the guarantors party thereto (the “Anagram Indentures”) in respect of one or more unsecured intercompany loans to be made by Anagram International, Inc. or one of its subsidiaries to the Company in an aggregate principal amount of up to $ 22.0 million (the “Intercompany Loan”). The Anagram Issuers intend to pay an aggregate consent fee of $ 1.5 million in cash to be delivered to consenting holders of the Anagram Notes on a pro rata basis upon successful completion of the Consent Solicitation. The Consent Solicitation will expire on August 15, 2022, unless extended by the Anagram Issuers, and is conditioned upon the receipt of requisite approvals, including under existing indebtedness of the Anagram Issuers. In addition, the foregoing waivers are conditioned upon (i) the existing revolving credit facility of the Anagram Issuers remaining undrawn and (ii) the Anagram Issuers and their respective subsidiaries having an aggregate cash balance of at least $ 5.0 million, in each case, immediately following the time any Intercompany Loan is made. In connection with the Consent Solicitation, and subject to its successful completion, the Anagram Issuers will enter into one or more supplemental indentures to the Anagram Indentures providing that a redemption premium of 103.000 % shall apply in respect of any optional redemption by the Anagram Issuers subsequent to August 15, 2022. The supplemental indentures will also provide that, to the extent that any Anagram Notes remain outstanding as of the final maturity date set forth in the Anagram Indentures, a cash premium of 3.0 % of the outstanding aggregate principal amount of such Anagram Notes shall be due and payable on the final maturity date in addition to the outstanding principal balance. |
Basis of Presentation and Rec_2
Basis of Presentation and Recently Issued Accounting Pronouncements (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832), Disclosures by Business Entities About Government Assistance, which requires entities to provide disclosures on material government assistance transactions for annual reporting periods. The disclosures include information around the nature of the assistance, the related accounting policies used to account for government assistance, the effect of government assistance on the entity’s financial statements, and any significant terms and conditions of the agreements, including commitments and contingencies. The new standard became effective for the Company on January 1, 2022 and only impacts annual financial statement footnote disclosures. The adoption did not have a material effect on our consolidated financial statements. |
Inventories, net (Tables)
Inventories, net (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories, Net | Inventories, net consisted of the following: June 30, December 31, June 30, Finished goods $ 633,023 $ 393,609 $ 384,949 Raw materials 23,581 25,624 22,274 Work in process 20,127 24,062 18,905 $ 676,731 $ 443,295 $ 426,128 |
Changes in Accumulated Other _2
Changes in Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Income (Loss) | The changes in accumulated other comprehensive income (loss) consisted of the following: Three Months Ended June 30, 2022 Foreign Total, Balance at March 31, 2022 $ 4,473 $ 4,473 Other comprehensive (loss), net of tax ( 1,349 ) ( 1,349 ) Balance at June 30, 2022 $ 3,124 $ 3,124 Three Months Ended June 30, 2021 Foreign Total, Balance at March 31, 2021 $ 5,134 $ 5,134 Other comprehensive income, net of tax 962 962 Balance at June 30, 2021 $ 6,096 $ 6,096 Six Months Ended June 30, 2022 Foreign Total, Balance at December 31, 2021 $ 3,541 $ 3,541 Other comprehensive (loss), net of tax ( 417 ) ( 417 ) Balance at June 30, 2022 $ 3,124 $ 3,124 Six Months Ended June 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 771 77 848 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 (loss) to the condensed consolidated statement of operations and comprehensive income (loss), net of income tax — ( 3 ) ( 3 ) Net current-period other comprehensive income (loss) 37,360 ( 1,348 ) 36,012 Balance at June 30, 2021 $ 6,096 $ — $ 6,096 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Company's Industry Segment Data | The company's reportable operating segment data for the three and six months ended June 30, 2022 and 2021 was as follows: Wholesale Retail Consolidated Three Months Ended June 30, 2022 Net sales before eliminations $ 303,577 $ 423,478 $ 727,055 Eliminations ( 199,606 ) — ( 199,606 ) Net sales 103,971 423,478 527,449 Gross profit $ 19,820 $ 158,152 $ 177,972 (Loss) income from operations $ ( 10,278 ) $ 20,944 $ 10,666 Interest expense, net 24,184 Other (income), net ( 1,800 ) Loss before income taxes $ ( 11,718 ) Wholesale Retail Consolidated Three Months Ended June 30, 2021 Net sales before eliminations $ 230,961 $ 443,812 $ 674,773 Eliminations ( 139,027 ) — ( 139,027 ) Net sales 91,934 443,812 535,746 Gross profit $ 23,607 $ 193,565 $ 217,172 Loss from operations $ ( 3,225 ) $ 65,061 $ 61,836 Interest expense, net 23,116 Other expense, net ( 1,300 ) Income before income taxes $ 40,020 Wholesale Retail Consolidated Six Months Ended June 30, 2022 Net sales before eliminations $ 543,257 $ 764,429 $ 1,307,686 Eliminations ( 347,261 ) — ( 347,261 ) Net sales 195,996 764,429 960,425 Gross profit $ 44,462 $ 271,518 $ 315,980 Income (loss) from operations $ ( 6,777 ) $ ( 2,609 ) $ ( 9,386 ) Interest expense, net 47,579 Other (income), net ( 2,003 ) (Loss) before income taxes $ ( 54,962 ) Wholesale Retail Consolidated Six Months Ended June 30, 2021 Net sales before eliminations $ 443,098 $ 777,094 $ 1,220,192 Eliminations ( 257,639 ) — ( 257,639 ) Net sales 185,459 777,094 962,553 Gross profit $ 52,715 $ 316,743 $ 369,458 (Loss) income from operations $ ( 3,817 ) $ 65,707 $ 61,890 Interest expense, net 40,330 Other expense, net ( 873 ) (Loss) before income taxes $ 22,433 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Summary of Carrying Amount and Fair Value | The carrying amounts and fair values of the Company’s notes and senior notes as of June 30, 2022 are as follows: June 30, 2022 Gross Carrying Fair 8.75% Senior Secured First Lien Notes – due 2026 $ 750,000 $ 504,375 6.125% Senior Notes – due 2023 22,924 19,170 6.625% Senior Notes – due 2026 92,254 52,585 First Lien Party City Notes – due 2025 193,426 134,189 First Lien Anagram Notes – due 2025 149,385 155,921 Second Lien Anagram Notes – due 2026 144,576 148,552 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Loss Per Share | Basic and diluted loss per share is as follows: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Net income attributable to common shareholders of $ 162,173 $ 29,811 $ 135,284 $ 15,747 Weighted average shares - Basic 112,632,860 111,340,295 112,519,950 111,128,822 Effect of dilutive securities: Warrants — — — 62,121 Restricted stock units 1,971,415 4,568,313 2,561,521 3,971,807 Stock options — 342,543 33,702 336,554 Weighted average shares - Diluted 114,604,275 116,251,151 115,115,172 115,499,304 Net income per share attributable to common $ 1.44 $ 0.27 $ 1.20 $ 0.14 Net income per share attributable to common $ 1.42 $ 0.26 $ 1.18 $ 0.14 |
Current and Long-Term Obligat_2
Current and Long-Term Obligations (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Summary of Long-Term Obligations | Long-term obligations at June 30, 2022, December 31, 2021 and June 30, 2021 consisted of the following: June 30, December 31, June 30, Principal Amount Gross Carrying Amount Deferred Financing Costs Net Carrying Amount Net Carrying Amount Net Carrying Amount 8.75 % Senior Secured First Lien Notes – due 2026 $ 750,000 $ 750,000 $ ( 15,312 ) $ 734,688 $ 732,957 $ 731,305 6.125 % Senior Notes – due 2023 22,924 22,924 ( 62 ) 22,862 22,834 22,806 6.625 % Senior Notes – due 2026 92,254 92,254 ( 591 ) 91,663 91,591 91,519 First Lien Party City Notes – due 2025 161,669 193,426 — 193,426 198,004 202,588 First Lien Anagram Notes – due 2025 118,699 149,385 ( 653 ) 148,732 149,569 150,451 Second Lien Anagram Notes – due 2026 93,613 144,576 — 144,576 144,619 148,114 Finance lease obligations 12,295 12,295 — 12,295 12,988 13,398 Total long-term obligations 1,251,454 1,364,860 ( 16,618 ) 1,348,242 1,352,562 1,360,181 Less: current portion ( 920 ) ( 920 ) — ( 920 ) ( 1,373 ) ( 1,265 ) Long-term obligations, excluding current portion $ 1,250,534 $ 1,363,940 $ ( 16,618 ) $ 1,347,322 $ 1,351,189 $ 1,358,916 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
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 and six months ended June 30, 2022 and 2021: Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Retail Net Sales: North American Party City Stores $ 421,679 $ 441,675 $ 761,078 $ 771,720 Other 1,800 2,137 3,352 5,374 Total Retail Net Sales $ 423,479 $ 443,812 $ 764,430 $ 777,094 Wholesale Net Sales: Domestic $ 64,607 $ 61,789 $ 126,816 $ 117,146 International 39,363 30,145 69,179 68,313 Total Wholesale Net Sales $ 103,970 $ 91,934 $ 195,995 $ 185,459 Total Consolidated Sales $ 527,449 $ 535,746 $ 960,425 $ 962,553 |
Description of Business - Addit
Description of Business - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2022 Store | |
PC Nextco [Member] | |
Basis Of Presentation [Line Items] | |
Ownership percentage | 100% |
PC Intermediate [Member] | |
Basis Of Presentation [Line Items] | |
Ownership percentage | 100% |
Party City Holdings Inc [Member] | |
Basis Of Presentation [Line Items] | |
Ownership percentage | 100% |
United States and Canada [Member] | |
Basis Of Presentation [Line Items] | |
Number of stores | 826 |
Disposition of Assets and Lease
Disposition of Assets and Lease-Related Impairments - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2022 | Mar. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2022 | Dec. 31, 2021 | Jan. 01, 2021 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Equipment impairment charges | $ 7,829 | $ 7,829 | $ 8,650 | |||
Total impairment charges | 2,154 | 11,545 | ||||
Disposal of inventory | 2,425 | |||||
Severance and other costs | $ 470 | |||||
Final consideration amount | $ 54,600 | |||||
Loss reserve in connection with sale | $ 73,948 | |||||
Gain (loss) on sale of assets | $ 3,211 | |||||
Wholesale Segment [Member] | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Equipment impairment charges | $ 6,809 | |||||
Retail Segment [Member] | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Equipment impairment charges | $ 1,020 |
Inventories, Net - Summary of I
Inventories, Net - Summary of Inventories, Net (Detail) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 |
Inventory Disclosure [Abstract] | |||
Finished goods | $ 633,023 | $ 393,609 | $ 384,949 |
Raw materials | 23,581 | 25,624 | 22,274 |
Work in process | 20,127 | 24,062 | 18,905 |
Inventories, net | $ 676,731 | $ 443,295 | $ 426,128 |
Inventories, Net - Additional I
Inventories, Net - Additional Information (Detail) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) | |
Inventory [Line Items] | ||
Finished goods purchased | $ 48.5 | $ 62.4 |
Purchases reflected in finished goods inventory | 64.7 | 64.7 |
Finished goods inventory | $ 52.6 | $ 52.6 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income tax (benefit) expense | $ 173,891 | $ (10,209) | $ 190,246 | $ (6,740) |
U.S. corporate statutory income tax rate | 21% | |||
U.S. corporate income tax rate | 1,484% | 25.50% | 346.10% | 30.10% |
Prepaid Expenses [Member] | ||||
Income tax (benefit) expense | $ (190,246) |
Changes in Accumulated Other _3
Changes in Accumulated Other Comprehensive Income (Loss) - Changes in Accumulated and Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | $ 82,714 | |||
Ending balance | $ 219,976 | $ 108,559 | 219,976 | $ 108,559 |
Foreign Currency Adjustments [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | 4,473 | 5,134 | 3,541 | (31,264) |
Other comprehensive income (loss) before reclassifications, net of tax | (1,349) | 962 | (417) | 771 |
Release of cumulative foreign currency translation adjustment to net loss as a result of disposition of international operations | 36,589 | |||
Amounts reclassified from accumulated other comprehensive income (loss) to the condensed consolidated statement of operations and comprehensive income (loss) , net of income tax | 0 | |||
Net current-period other comprehensive income (loss) | 37,360 | |||
Ending balance | 3,124 | 6,096 | 3,124 | 6,096 |
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | 1,348 | |||
Other comprehensive income (loss) before reclassifications, net of tax | 77 | |||
Release of cumulative foreign currency translation adjustment to net loss as a result of disposition of international operations | (1,422) | |||
Amounts reclassified from accumulated other comprehensive income (loss) to the condensed consolidated statement of operations and comprehensive income (loss) , net of income tax | (3) | |||
Net current-period other comprehensive income (loss) | (1,348) | |||
Ending balance | 0 | 0 | ||
Accumulated Other Comprehensive Income (Loss) [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | 4,473 | 5,134 | 3,541 | (29,916) |
Other comprehensive income (loss) before reclassifications, net of tax | (1,349) | 962 | (417) | 848 |
Release of cumulative foreign currency translation adjustment to net loss as a result of disposition of international operations | 35,167 | |||
Amounts reclassified from accumulated other comprehensive income (loss) to the condensed consolidated statement of operations and comprehensive income (loss) , net of income tax | (3) | |||
Net current-period other comprehensive income (loss) | 36,012 | |||
Ending balance | $ 3,124 | $ 6,096 | $ 3,124 | $ 6,096 |
Capital Stock - Additional Info
Capital Stock - Additional Information (Detail) | Jun. 30, 2022 $ / shares shares |
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) | 6 Months Ended |
Jun. 30, 2022 Segment | |
Segment Reporting [Abstract] | |
Number of business segments | 2 |
Segment Information - Schedule
Segment Information - Schedule of Company's Industry Segment Data (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Net sales | $ 527,449 | $ 535,746 | $ 960,425 | $ 962,553 |
Gross Profit | 177,972 | 217,172 | 315,980 | 369,458 |
Income (loss) from operations | 10,666 | 61,836 | (9,386) | 61,890 |
Interest expense, net | 24,184 | 23,116 | 47,579 | 40,330 |
Other (income), net | (1,800) | (1,300) | (2,003) | (873) |
(Loss) income before income taxes | (11,718) | 40,020 | (54,962) | 22,433 |
Eliminations [Member] | ||||
Net sales | (199,606) | (139,027) | (347,261) | (257,639) |
Net Sales [Member] | Operating Segments [Member] | ||||
Net sales | 727,055 | 674,773 | 1,307,686 | 1,220,192 |
Wholesale [Member] | ||||
Net sales | 103,971 | 91,934 | 195,996 | 185,459 |
Gross Profit | 19,820 | 23,607 | 44,462 | 52,715 |
Income (loss) from operations | (10,278) | (3,225) | (6,777) | (3,817) |
Wholesale [Member] | Eliminations [Member] | ||||
Net sales | (199,606) | (139,027) | (347,261) | (257,639) |
Wholesale [Member] | Net Sales [Member] | Operating Segments [Member] | ||||
Net sales | 303,577 | 230,961 | 543,257 | 443,098 |
Retail [Member] | ||||
Net sales | 423,478 | 443,812 | 764,429 | 777,094 |
Gross Profit | 158,152 | 193,565 | 271,518 | 316,743 |
Income (loss) from operations | 20,944 | 65,061 | (2,609) | 65,707 |
Retail [Member] | Net Sales [Member] | ||||
Net sales | 423,479 | 443,812 | 764,430 | 777,094 |
Retail [Member] | Net Sales [Member] | Operating Segments [Member] | ||||
Net sales | $ 423,478 | $ 443,812 | $ 764,429 | $ 777,094 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Carrying Amount and Fair Value (Detail) $ in Thousands | Jun. 30, 2022 USD ($) |
Debt Instrument [Line Items] | |
Debt Instrument Carrying Amount | $ 1,364,860 |
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 | 504,375 |
6.125% Senior Notes - due 2023 [Member] | Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument Carrying Amount | 22,924 |
Debt Instrument Fair Value | 19,170 |
6.625% Senior Notes - due 2026 [Member] | Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument Carrying Amount | 92,254 |
Debt Instrument Fair Value | 52,585 |
First Lien Party City Notes - due 2025 [Member] | Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument Carrying Amount | 193,426 |
Debt Instrument Fair Value | 134,189 |
First Lien Anagram Notes - due 2025 [Member] | Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument Carrying Amount | 149,385 |
Debt Instrument Fair Value | 155,921 |
Second Lien Anagram Notes - due 2026 [Member] | Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument Carrying Amount | 144,576 |
Debt Instrument Fair Value | $ 148,552 |
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 | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Earnings Per Share [Abstract] | ||||
Net income attributable to common shareholders of Party City Holdco Inc. | $ 162,173 | $ 29,811 | $ 135,284 | $ 15,747 |
Weighted average shares - Basic | 112,632,860 | 111,340,295 | 112,519,950 | 111,128,822 |
Effect of dilutive securities: | ||||
Warrants | 0 | 0 | 0 | 62,121 |
Restricted stock units | 1,971,415 | 4,568,313 | 2,561,521 | 3,971,807 |
Stock options | 0 | 342,543 | 33,702 | 336,554 |
Weighted average shares - Diluted | 114,604,275 | 116,251,151 | 115,115,172 | 115,499,304 |
Net income per share attributable to common shareholders of Party City Holdco Inc. -Basic | $ 1.44 | $ 0.27 | $ 1.20 | $ 0.14 |
Net income per share attributable to common shareholders of Party City Holdco Inc. -Diluted | $ 1.42 | $ 0.26 | $ 1.18 | $ 0.14 |
Earnings Per share - Additional
Earnings Per share - Additional Information (Detail) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Employee Stock Option [Member] | ||||
Disclosure Of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from calculation of earnings per share | 1,768,746 | 1,706,449 | 1,768,746 | 1,706,449 |
Restricted Stock Units (RSUs) [Member] | ||||
Disclosure Of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from calculation of earnings per share | 4,537,272 | 133,406 | 4,537,272 | 133,406 |
Current and Long-Term Obligat_3
Current and Long-Term Obligations - Summary of Long-Term Obligations (Detail) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Feb. 28, 2021 |
Debt Instrument [Line Items] | ||||
Total long-term obligations, Principal Amount | $ 1,251,454 | |||
Total long-term obligations, Gross Carrying Amount | 1,364,860 | |||
Total long term obligations, Deferred Financing Costs | (16,618) | |||
Total long-term obligations, Net Carrying Amount | 1,348,242 | $ 1,352,562 | $ 1,360,181 | |
Current portion, Net Carrying Amount | (920) | (1,373) | (1,265) | |
Long-term obligations excluding current portion, Principal Amount | 1,250,534 | |||
Long-term obligations excluding current portion, Gross Carrying Amount | 1,363,940 | |||
Long-term obligations excluding current portion, Deferred Financing | (16,618) | |||
Long-term obligations excluding current portion, Net Carrying Amount | 1,347,322 | 1,351,189 | 1,358,916 | |
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 | (15,312) | |||
Total long-term obligations, Net Carrying Amount | 734,688 | 732,957 | 731,305 | |
Finance lease obligations [Member] | ||||
Debt Instrument [Line Items] | ||||
Total long-term obligations, Principal Amount | 12,295 | |||
Total long-term obligations, Gross Carrying Amount | 12,295 | |||
Total long term obligations, Deferred Financing Costs | 0 | |||
Total long-term obligations, Net Carrying Amount | 12,295 | 12,988 | 13,398 | |
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 | (62) | |||
Total long-term obligations, Net Carrying Amount | 22,862 | 22,834 | 22,806 | |
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 | (591) | |||
Total long-term obligations, Net Carrying Amount | 91,663 | 91,591 | 91,519 | |
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 | 193,426 | |||
Total long term obligations, Deferred Financing Costs | 0 | |||
Total long-term obligations, Net Carrying Amount | 193,426 | 198,004 | 202,588 | |
First Lien Anagram Notes due 2025 [Member] | ||||
Debt Instrument [Line Items] | ||||
Total long-term obligations, Principal Amount | 118,699 | |||
Total long-term obligations, Gross Carrying Amount | 149,385 | |||
Total long term obligations, Deferred Financing Costs | (653) | |||
Total long-term obligations, Net Carrying Amount | 148,732 | 149,569 | 150,451 | |
Second Lien Anagram Notes due 2026 [Member] | ||||
Debt Instrument [Line Items] | ||||
Total long-term obligations, Principal Amount | 93,613 | |||
Total long-term obligations, Gross Carrying Amount | 144,576 | |||
Total long term obligations, Deferred Financing Costs | 0 | |||
Total long-term obligations, Net Carrying Amount | $ 144,576 | $ 144,619 | $ 148,114 |
Current and Long-Term Obligat_4
Current and Long-Term Obligations - Summary of Long-Term Obligations (Parenthetical) (Detail) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | 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 ($) | 1 Months Ended | 6 Months Ended | 9 Months Ended | |||||||
Aug. 08, 2022 | Jul. 19, 2022 | May 07, 2021 | Feb. 28, 2021 | Jun. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | Jun. 30, 2021 | Apr. 25, 2019 | Mar. 31, 2019 | |
Debt Instrument [Line Items] | ||||||||||
Long-term obligations, principal amount | $ 1,251,454,000 | |||||||||
Minimum [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Commitment fee percentage | 0.50% | |||||||||
Maximum [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Commitment fee percentage | 1% | |||||||||
SOFR | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate | 1% | |||||||||
FILO Facility [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate | 1.75% | |||||||||
Alternate Base Interest Rate Loans [Member] | Minimum [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate | 1.50% | |||||||||
Alternate Base Interest Rate Loans [Member] | Maximum [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate | 1.75% | |||||||||
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 | $ 750,000,000 | $ 750,000,000 | ||||||||
Notes issued rate | 8.75% | 8.75% | 8.75% | 8.75% | ||||||
Third-party fees | $ 18,976,000 | |||||||||
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% | |||||||||
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% | |||||||||
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% | |||||||||
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% | |||||||||
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% | |||||||||
Percentage of principal amount to be redeemed | 10% | |||||||||
ABL Facility [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Percentage Of Total Line Cap | 10% | |||||||||
Credit facility borrowing maximum capacity | $ 540,000,000 | |||||||||
Line of credit facility, remaining borrowing capacity | $ 142,300,000 | $ 192,400,000 | $ 170,200,000 | |||||||
Third-party fees | $ 2,400,000 | |||||||||
Credit facility, current borrowing capacity | $ 15,000,000 | |||||||||
Basis spread on variable rate | 0.50% | |||||||||
ABL Facility [Member] | Minimum [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate | 0.50% | |||||||||
ABL Facility [Member] | Maximum [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility, excess availability | $ 46,000,000 | |||||||||
Basis spread on variable rate | 0.75% | |||||||||
Term Loan Credit Agreement [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Prepayment of outstanding balance from the proceeds of senior notes | $ 694,220,000 | |||||||||
Revolving Credit Facility [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Credit facility borrowing maximum capacity | 640,000,000 | |||||||||
Revolving Credit Facility [Member] | SOFR | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate | 2.75% | |||||||||
Revolving Credit Facility [Member] | ABL Facility [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line of credit facility, excess availability | $ 40,000,000 | |||||||||
Credit facility borrowing maximum capacity | $ 640,000,000 | |||||||||
Debt instrument maturity, year and month | 2024-05 | 2026-02 | 2023-08 | |||||||
Letters of credit outstanding maximum under our ABL facility | $ 50,000,000 | |||||||||
Outstanding aggregate principal amount, prepaid | 44,000,000 | |||||||||
Reduction in line of credit facility | $ 475,000,000 | |||||||||
Line of credit facility, remaining borrowing capacity | $ 14,400,000 | |||||||||
Basis spread on variable rate | 0.10% | |||||||||
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% | |||||||||
Revolving Credit Facility [Member] | ABL Facility [Member] | LIBOR [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate | 0.50% | |||||||||
Revolving Credit Facility [Member] | ABL Facility [Member] | Prime Rate [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate | 0% | |||||||||
Revolving Credit Facility [Member] | ABL Facility [Member] | Alternate Base Interest Rate Loans [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate | 2.50% | |||||||||
Revolving Credit Facility [Member] | ABL Facility [Member] | Federal Funds Rate [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate | 5% | |||||||||
Revolving Credit Facility [Member] | ABL Facility [Member] | One-half of One Percent Margin [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable rate | 1.50% | |||||||||
Letter Of Credit [Member] | ABL Facility [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Credit facility borrowing maximum capacity | $ 3,000,000 | |||||||||
SubsequentEvent | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term obligations, principal amount | $ 22,000,000 | |||||||||
Percentage price of principal amount to be redeemed | 103% | |||||||||
SubsequentEvent | FILO Facility [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Line Of Credit | $ 17,110.5 | |||||||||
Basis spread on variable rate | 5.55% | |||||||||
SubsequentEvent | ABL Facility [Member] | Minimum [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Credit facility, current borrowing capacity | $ 475,000 | |||||||||
SubsequentEvent | ABL Facility [Member] | Maximum [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Credit facility borrowing maximum capacity | $ 562,110.5 |
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 | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Net revenues | $ 527,449 | $ 535,746 | $ 960,425 | $ 962,553 |
Retail Segment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 423,478 | 443,812 | 764,429 | 777,094 |
Wholesale Segment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 103,970 | 91,934 | 195,995 | 185,459 |
Other Retail Segment Store [Member] | Retail Segment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 1,800 | 2,137 | 3,352 | 5,374 |
Net Sales [Member] | Retail Segment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 423,479 | 443,812 | 764,430 | 777,094 |
North America [Member] | Party City Stores [Member] | Retail Segment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 421,679 | 441,675 | 761,078 | 771,720 |
Domestic [Member] | Wholesale Segment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | 64,607 | 61,789 | 126,816 | 117,146 |
International [Member] | Wholesale Segment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenues | $ 39,363 | $ 30,145 | $ 69,179 | $ 68,313 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Additional Information (Detail) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 | Jun. 30, 2021 |
Revenue from Contract with Customer [Abstract] | |||
Allowance for credit losses | $ 7,102 | $ 8,057 | $ 7,933 |
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% | |
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 |
Subsequent Event - Additional I
Subsequent Event - Additional Information (Detail) - USD ($) $ in Thousands | Aug. 08, 2022 | Jun. 30, 2022 |
Subsequent Event [Line Items] | ||
Long-term obligations, principal amount | $ 1,251,454 | |
Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Long-term obligations, principal amount | $ 22,000 | |
Percentage price of principal amount to be redeemed | 103% | |
Debt instrument cash premium percentage | 3% | |
Consent fee | $ 1,500 | |
Aggregate cash balance | $ 5,000 | |
Refinancing Transactions [Member] | 15.00% PIK/Cash Senior Secured First Lien Notes due 2025 [Member] | Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Notes issued rate | 15% | |
Debt instrument maturity period | 2025 | |
Refinancing Transactions [Member] | 10.00% PIK/Cash Senior Secured Second Lien Notes due 2026 [Member] | Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Notes issued rate | 10% | |
Debt instrument maturity period | 2026 |