Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 15, 2018 | Jun. 30, 2017 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | PRTY | ||
Entity Registrant Name | Party City Holdco Inc. | ||
Entity Central Index Key | 1,592,058 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 96,394,102 | ||
Entity Public Float | $ 480,211,611 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 54,291 | $ 64,610 |
Accounts receivable, net | 140,980 | 134,091 |
Inventories, net | 604,066 | 613,868 |
Prepaid expenses and other current assets | 77,816 | 68,255 |
Total current assets | 877,153 | 880,824 |
Property, plant and equipment, net | 301,141 | 292,904 |
Goodwill | 1,619,253 | 1,572,568 |
Trade names | 568,681 | 566,599 |
Other intangible assets, net | 75,704 | 76,581 |
Other assets, net | 12,824 | 4,502 |
Total assets | 3,454,756 | 3,393,978 |
Current liabilities: | ||
Loans and notes payable | 286,291 | 120,138 |
Accounts payable | 160,994 | 163,415 |
Accrued expenses | 176,609 | 149,683 |
Income taxes payable | 45,568 | 46,675 |
Current portion of long-term obligations | 13,059 | 13,348 |
Total current liabilities | 682,521 | 493,259 |
Long-term obligations, excluding current portion | 1,532,090 | 1,539,604 |
Deferred income tax liabilities | 175,836 | 278,819 |
Deferred rent and other long-term liabilities | 91,929 | 65,507 |
Total liabilities | 2,482,376 | 2,377,189 |
Redeemable securities | 3,590 | 0 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Common stock (96,380,102 and 119,515,894 shares outstanding and 119,759,669 and 119,515,894 shares issued at December 31, 2017 and December 31, 2016, respectively) | 1,198 | 1,195 |
Additional paid-in capital | 917,192 | 910,167 |
Retained earnings | 372,596 | 157,666 |
Accumulated other comprehensive loss | (35,818) | (52,239) |
Total Party City Holdco Inc. stockholders' equity before common stock held in treasury | 1,255,168 | 1,016,789 |
Less: Common stock held in treasury, at cost (23,379,567 shares at December 31, 2017) | (286,733) | 0 |
Total Party City Holdco Inc. stockholders' equity | 968,435 | 1,016,789 |
Noncontrolling interests | 355 | 0 |
Total stockholders' equity | 968,790 | 1,016,789 |
Total liabilities, redeemable securities and stockholders' equity | $ 3,454,756 | $ 3,393,978 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - shares | Dec. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Common stock, shares outstanding | 96,380,102 | 119,515,894 |
Common stock, shares issued | 119,759,669 | 119,515,894 |
Treasury stock, shares | 23,379,567 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues: | |||
Net sales | $ 2,357,986 | $ 2,266,386 | $ 2,275,122 |
Royalties and franchise fees | 13,583 | 17,005 | 19,411 |
Total revenues | 2,371,569 | 2,283,391 | 2,294,533 |
Expenses: | |||
Cost of sales | 1,395,279 | 1,350,387 | 1,370,884 |
Wholesale selling expenses | 65,356 | 59,956 | 64,260 |
Retail operating expenses | 415,167 | 408,583 | 401,039 |
Franchise expenses | 14,957 | 15,213 | 14,394 |
General and administrative expenses | 168,369 | 152,919 | 151,097 |
Art and development costs | 23,331 | 22,249 | 20,640 |
Development stage expenses | 8,974 | 0 | 0 |
Total expenses | 2,091,433 | 2,009,307 | 2,022,314 |
Income from operations | 280,136 | 274,084 | 272,219 |
Interest expense, net | 87,366 | 89,380 | 123,361 |
Other expense (income), net | 4,626 | (2,010) | 130,990 |
Income before income taxes | 188,144 | 186,714 | 17,868 |
Income tax (benefit) expense | (27,196) | 69,237 | 7,409 |
Net income | $ 215,340 | $ 117,477 | $ 10,459 |
Net income per common share-basic | $ 1.81 | $ 0.98 | $ 0.09 |
Net income per common share-diluted | $ 1.79 | $ 0.98 | $ 0.09 |
Weighted-average number of common shares-basic | 118,589,421 | 119,381,842 | 111,917,168 |
Weighted-average number of common shares-diluted | 119,894,021 | 120,369,672 | 112,943,807 |
Other comprehensive income (loss), net of tax: | |||
Foreign currency adjustments | $ 17,561 | $ (19,770) | $ (20,432) |
Cash flow hedges | (1,140) | 321 | 377 |
Other comprehensive income (loss), net | 16,421 | (19,449) | (20,055) |
Comprehensive income (loss) | $ 231,761 | $ 98,028 | $ (9,596) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive 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, 2014 | $ 487,226 | $ 910 | $ 469,117 | $ 29,934 | $ (12,735) | $ 487,226 | $ 0 | $ 487,226 | $ 0 |
Net income | 10,459 | 10,459 | 10,459 | 10,459 | |||||
Employee equity based compensation | 3,042 | 3,042 | 3,042 | 3,042 | |||||
Adjustment to redeemable securities | 35,062 | 31 | 35,031 | 35,062 | 35,062 | ||||
Issuance of common stock | 397,159 | 252 | 396,907 | 397,159 | 397,159 | ||||
Exercise of stock options | 30 | 30 | 30 | 30 | |||||
Foreign currency adjustments | (20,432) | (20,432) | (20,432) | (20,432) | |||||
Excess tax benefit from stock options | 298 | 298 | 298 | 298 | |||||
Spin-off of subsidiary | (204) | (204) | (204) | (204) | |||||
Impact of foreign exchange contracts | 377 | 377 | 377 | 377 | |||||
Balance at Dec. 31, 2015 | 913,017 | 1,193 | 904,425 | 40,189 | (32,790) | 913,017 | 0 | 913,017 | 0 |
Net income | 117,477 | 117,477 | 117,477 | 117,477 | |||||
Employee equity based compensation | 3,853 | 3,853 | 3,853 | 3,853 | |||||
Exercise of stock options | 1,373 | 2 | 1,371 | 1,373 | 1,373 | ||||
Foreign currency adjustments | (19,770) | (19,770) | (19,770) | (19,770) | |||||
Excess tax benefit from stock options | 518 | 518 | 518 | 518 | |||||
Impact of foreign exchange contracts | 321 | 321 | 321 | 321 | |||||
Balance at Dec. 31, 2016 | 1,016,789 | (52,239) | |||||||
Balance at Dec. 31, 2016 | 1,016,789 | 1,195 | 910,167 | 157,666 | (52,239) | 1,016,789 | 0 | 1,016,789 | 0 |
Net income | 215,340 | 215,340 | 215,340 | 215,340 | |||||
Employee equity based compensation | 5,309 | 5,309 | 5,309 | 5,309 | |||||
Warrant | 421 | 421 | 421 | 421 | |||||
Adjustment to redeemable securities | (410) | (410) | (410) | (410) | |||||
Exercise of stock options | 1,298 | 3 | 1,295 | 1,298 | 1,298 | ||||
Foreign currency adjustments | 17,561 | 17,561 | 17,561 | 17,561 | |||||
Treasury stock purchases | (286,733) | 0 | (286,733) | (286,733) | |||||
Acquired noncontrolling interest | 355 | 0 | 0 | 355 | |||||
Impact of foreign exchange contracts | (1,140) | (1,140) | (1,140) | (1,140) | |||||
Balance at Dec. 31, 2017 | 968,435 | (35,818) | |||||||
Balance at Dec. 31, 2017 | $ 968,790 | $ 1,198 | $ 917,192 | $ 372,596 | $ (35,818) | $ 1,255,168 | $ (286,733) | $ 968,435 | $ 355 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows provided by operating activities: | |||
Net income | $ 215,340 | $ 117,477 | $ 10,459 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization expense | 85,168 | 83,630 | 80,515 |
Amortization of deferred financing costs | 4,937 | 5,818 | 40,516 |
Provision for doubtful accounts | 560 | 781 | 223 |
Deferred income tax (benefit) expense | (102,651) | 3,401 | (6,178) |
Deferred rent | 7,287 | 18,835 | 13,407 |
Undistributed (gain) loss in unconsolidated joint ventures | (194) | 314 | 562 |
Impairment of intangible assets | 0 | 0 | 852 |
Loss (gain) on disposal of equipment | 475 | 14 | (2,593) |
Non-employee equity based compensation | 3,033 | 0 | 0 |
Employee equity based compensation | 5,309 | 3,853 | 3,042 |
Changes in operating assets and liabilities, net of effects of acquired businesses: | |||
Decrease (increase) in accounts receivable | 1,153 | (5,898) | 6,868 |
Decrease (increase) in inventories | 37,175 | (42,819) | 15,515 |
Increase in prepaid expenses and other current assets | (9,079) | (14,499) | (4,683) |
Increase (decrease) in accounts payable, accrued expenses and income taxes payable | 19,408 | 86,893 | (78,293) |
Net cash provided by operating activities | 267,921 | 257,800 | 80,212 |
Cash flows used in investing activities: | |||
Cash paid in connection with acquisitions, net of cash acquired | (74,710) | (31,820) | (22,615) |
Capital expenditures | (66,970) | (81,948) | (78,825) |
Proceeds from disposal of property and equipment | 35 | 35 | 1,304 |
Net cash used in investing activities | (141,645) | (113,733) | (100,136) |
Cash flows (used in) provided by financing activities: | |||
Repayment of loans, notes payable and long-term obligations | (234,619) | (1,521,218) | (2,561,594) |
Proceeds from loans, notes payable and long-term obligations | 380,092 | 1,399,717 | 2,198,600 |
Cash held in escrow in connection with acquisitions | 0 | 0 | (3,832) |
Excess tax benefit from stock options | 0 | 518 | 298 |
Exercise of stock options | 1,298 | 1,373 | 30 |
Treasury stock purchases | (286,733) | 0 | 0 |
Issuance of common stock | 0 | 0 | 397,159 |
Debt issuance costs | 0 | (130) | (11,720) |
Net cash (used in) provided by financing activities | (139,962) | (119,740) | 18,941 |
Effect of exchange rate changes on cash and cash equivalents | 3,367 | (2,636) | (3,312) |
Net (decrease) increase in cash and cash equivalents | (10,319) | 21,691 | (4,295) |
Cash and cash equivalents at beginning of period | 64,610 | 42,919 | 47,214 |
Cash and cash equivalents at end of period | 54,291 | 64,610 | 42,919 |
Cash paid during the period | |||
Interest | 76,171 | 86,183 | 143,458 |
Income taxes, net of refunds | $ 66,445 | $ 26,883 | $ 40,134 |
Consolidated Statements of Cas7
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Cash Flows [Abstract] | |||
Capital lease obligations | $ 1,553 | $ 1,623 | $ 223 |
Organization, Description of Bu
Organization, Description of Business and Basis of Presentation | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Description of Business and Basis of Presentation | Note 1 — Organization, Description of Business and Basis of Presentation Party City Holdco Inc. (the “Company” or “Party City Holdco”) is a vertically integrated supplier of decorated party goods. The Company designs, manufactures, sources 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 Company’s operations include over 900 specialty retail party supply stores (including franchise stores) in the United States and Canada operating under the names Party City and Halloween City, and e-commerce 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. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2 — Summary of Significant Accounting Policies Consolidated Financial Statements The consolidated financial statements of the Company include the accounts of all majority-owned subsidiaries and controlled entities. All intercompany balances and transactions have been eliminated. The Company’s retail operations define a fiscal year (“Fiscal Year”) as the 52-week 53-week 13-week 53-week Use of Estimates The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Management periodically evaluates estimates used in the preparation of the consolidated financial statements for continued reasonableness. Appropriate adjustments, if any, to the estimates used are made prospectively based on such periodic evaluations. Cash Equivalents Highly liquid investments with a maturity of three months or less when purchased are considered to be cash equivalents. All credit card transactions that process in less than seven days are classified as cash and cash equivalents. Inventories Inventories are valued at the lower of cost and 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 Allowance for Doubtful Accounts The Company maintains allowances for doubtful accounts for estimated losses resulting from the inability of the Company’s customers to make required payments. A considerable amount of 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 doubtful accounts and occur only after all collection efforts have been exhausted. At December 31, 2017 and December 31, 2016, the allowance for doubtful accounts was $2,971 and $2,683, respectively. Long-Lived and Intangible Assets (including Goodwill) Property, plant and equipment are stated at cost. Equipment under capital leases are stated at the present value of the minimum lease payments at the inception of the lease. Depreciation is calculated principally on the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized on a straight-line basis over the shorter of the lease term or the estimated useful life of the asset. The Company reviews the recoverability of its finite long-lived assets, including finite-lived intangible assets, whenever facts and circumstances indicate that the carrying amount may not be fully recoverable. For purposes of recognizing and measuring impairment, the Company evaluates long-lived assets other than goodwill based upon the lowest level of independent cash flows ascertainable to evaluate impairment. If the sum of the undiscounted future cash flows expected over the remaining asset life is less than the carrying value of the assets, the Company may recognize an impairment loss. The impairment related to long-lived assets is measured as the amount by which the carrying amount of the asset(s) exceeds the fair value of the asset(s). In the evaluation of the fair value and future benefits of finite long-lived assets attached to retail stores, the Company performs its cash flow analysis on a store-by-store Goodwill represents the excess of the purchase price of acquired companies over the estimated fair value of the net assets acquired. Goodwill and other intangibles with indefinite lives are not amortized, but are reviewed for impairment annually or more frequently if certain indicators arise. The Company evaluates the goodwill associated with its acquisitions, and other intangibles with indefinite lives, for impairment as of the first day of its fourth quarter based on current and projected performance. For purposes of testing goodwill for impairment, reporting units are determined by identifying individual components within the Company’s organization which constitute a business for which discrete financial information is available and is reviewed by management. Components within a segment are aggregated to the extent that they have similar economic characteristics. Based on this evaluation, the Company has determined that its operating segments, wholesale and retail, represent reporting units for the purposes of its goodwill impairment test. If it is concluded that it is more likely than not that the fair value of a reporting unit is less than its carrying value, the Company estimates the fair value of the reporting unit using a combination of a market approach and an income approach. If the carrying amount of a reporting unit exceeds its fair value, the excess, if any, of the fair value of the reporting unit over amounts allocable to the unit’s other assets and liabilities is the implied fair value of goodwill. If the carrying amount of a reporting unit’s goodwill exceeds the implied fair value of that goodwill, an impairment loss will be recognized in an amount equal to that excess. The fair value of a reporting unit refers to the amount at which the unit as a whole could be sold in a current transaction between willing parties. Deferred Financing Costs Deferred financing costs are netted against amounts outstanding under the related debt instruments. They are amortized to interest expense over the lives of the instruments using the effective interest method. Deferred Rent and Rental Expenses The Company leases its retail stores under operating leases that generally have initial terms of ten years, with two five year renewal options. The Company’s leases may have early cancellation clauses, which permit the lease to be terminated if certain sales levels are not met in specific periods, and may provide for the payment of contingent rent based on a percentage of the store’s net sales. The Company’s lease agreements generally have defined escalating rent provisions, which are reported as a deferred rent liability and expensed on a straight-line basis over the term of the related lease, commencing with the date of possession. In addition, the Company may receive cash allowances from its landlords on certain properties, which are reported as deferred rent and amortized to rent expense over the term of the lease, also commencing with the date of possession. Retail’s deferred rent liability at December 31, 2017 and 2016 was $76,994 and $68,857, respectively. Equity Method Investments The Company has an investment in Convergram Mexico, S. De R.L. De C.V., a joint venture distributing metallic balloons, principally in Mexico and Latin America. The Company accounts for its 49.9% investment in the joint venture using the equity method. Additionally, the Company has an investment in PD Retail Group Limited, a joint venture operating party goods stores in the United Kingdom (“U.K.”). The Company accounts for its 50% investment using the equity method. Also, during April 2017, the Company paid approximately $4,000 for a 28% ownership interest in Punchbowl, Inc., a provider of digital greeting cards and digital invitations. The Company is accounting for the investment under the equity method of accounting. The Company’s investments are included in other assets on the consolidated balance sheet and the results of the investees’ operations are included in other expense (income) in the consolidated statement of operations and comprehensive income (loss) (see Note 10). Insurance Accruals The Company maintains certain self-insured workers’ compensation and general liability insurance plans. The Company estimates the required liability for claims under such plans based upon various assumptions, which include, but are not limited to, historical loss experience, projected loss development factors, actual payroll and other data. The required liability is also subject to adjustment in the future based upon changes in claims experience, including changes in the number of incidents (frequency) and changes in the ultimate cost per incident (severity). Revenue Recognition Revenue from retail store operations is recognized at the point of sale. Retail e-commerce The transaction price for the overwhelming majority of the Company’s retail sales is based on either: 1) the item’s stated price or 2) the stated price adjusted for the impact of a coupon which can only be applied to such transaction. To the extent that the Company charges customers for freight costs on e-commerce Under the terms of its agreements with its franchisees, the Company provides both: 1) brand value (via significant advertising spend) and 2) support with respect to planograms, in exchange for a royalty fee that ranges from 4% to 6% of the franchisees’ sales. The Company records the royalty fees at the time that the franchisees’ sales are recorded. Additionally, although the Company anticipates that future franchise store openings will be limited, when a franchisee opens a new store, the Company receives and records a one-time one-time For most of the Company’s wholesale sales, revenue is recognized upon the Company’s shipment of the product as: 1) legal title transfers on such date and 2) the Company has a present right to payment at such time. Wholesale sales returns are not significant as the Company generally only accepts the return of goods that were shipped to the customer in error or that were damaged when received by the customer. Additionally, due to its extensive history operating as a leading party goods wholesaler, the Company has sufficient history with which to estimate future sales returns. In most cases, the determination of the transaction price is straight-forward as it is fixed based on the contract and/or purchase order. However, a limited number of customers receive volume-based rebates. Additionally, certain customers receive small discounts for early payment (generally 1% of the transaction price). Based on the business’ long history as a leading party goods wholesaler, the Company has sufficient history with which to estimate variable consideration for such volume-based rebates and early payment discounts. To the extent that the Company charges customers for freight costs, the Company records such amounts in revenue. The Company excludes all sales taxes and value-added taxes from revenue. The majority of the sales for the Company’s wholesale business are due within 30 to 120 days from the transfer of control of the product and substantially all of the sales are collected within a year from such transfer. Although most of the Company’s revenue transactions consist of fixed transaction prices and the transfer of control at either the point of sale (for retail) or when the product is shipped (for wholesale), certain transactions involve a limited number of judgments. For transactions for which control transfers to the customer when the freight carrier delivers the product to the customer, the Company estimates the date of such receipt based on historical shipping times. Additionally, the Company utilizes historical data to estimate sales returns, volume-based rebates and discounts for early payments by customers. Due to its extensive history operating as a leading party goods retailer and wholesaler, the Company has sufficient history with which to estimate such amounts. Revenues, and the related profit, on sales from the Company’s wholesale operations to its retail operations are eliminated in consolidation. Cost of Sales Cost of sales at wholesale reflects the production costs (i.e., raw materials, labor and overhead) of manufactured goods and the direct cost of purchased goods, inventory shrinkage at both retail and wholesale, inventory adjustments, inbound freight to the Company’s manufacturing and distribution facilities, distribution costs and outbound freight to transfer goods to the Company’s wholesale customers. At retail, cost of sales reflects the direct cost of goods purchased from third parties and the production or purchase costs of goods acquired from the Company’s wholesale operations. Retail cost of sales also includes inventory shrinkage, inventory adjustments, inbound freight, occupancy costs related to store operations, such as rent and common area maintenance, utilities and depreciation on assets, and all logistics costs (i.e., procurement, handling and distribution costs) associated with the Company’s e-commerce Retail Operating Expenses Retail operating expenses include the costs and expenses associated with the operation of the Company’s retail stores, with the exception of occupancy costs included in cost of sales. Retail operating expenses principally consist of employee compensation and benefits, advertising, supplies expense and credit card and banking fees. Shipping and Handling Outbound shipping costs billed to customers are included in net sales. The costs of shipping and handling incurred by the Company are included in cost of sales. Product Royalty Agreements The Company enters into product royalty agreements that allow the Company to use licensed designs on certain of its products. These contracts require the Company to pay royalties, generally based on the sales of such product, and may require guaranteed minimum royalties, a portion of which may be paid in advance. The Company matches royalty expense with revenue by recording royalties at the time of sale, at the greater of the contractual rate or an effective rate calculated based on the guaranteed minimum royalty and the Company’s estimate of sales during the contract period. If a portion of the guaranteed minimum royalty is determined to be unrecoverable, the unrecoverable portion is charged to expense at that time. Guaranteed minimum royalties paid in advance are recorded in the consolidated balance sheets in either prepaid expenses and other current assets or other assets, depending on the nature of the royalties. Catalog Costs The Company expenses costs associated with the production of catalogs when incurred. Advertising Advertising costs are expensed as incurred. Retail advertising expenses for the years ended December 31, 2017, December 31, 2016, and December 31, 2015 were $61,187, $63,528, and $62,495, respectively. Variable Interest Entities When determining whether a legal entity should be consolidated, the Company first determines whether it has a variable interest in the legal entity. If a variable interest exists, the Company determines whether the legal entity is a variable interest entity due to either: 1) a lack of sufficient equity to finance its activities, 2) the equity holders lacking the characteristics of a controlling financial interest or 3) the legal entity being structured with non-substantive 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. Although the Company currently only owns 30% of Kazzam’s equity, the Company has concluded that: a) Kazzam is a variable interest entity as it has insufficient equity at risk and b) the Company is its primary beneficiary. Therefore, the Company has consolidated Kazzam into the Company’s financial statements. As part of Ampology’s compensation for designing, developing and launching the exchange platform, Ampology received a 70% ownership interest in Kazzam. The 70% interest has been recorded as redeemable securities in the mezzanine of the Company’s consolidated balance sheet as, in the future, Ampology has the right to cause the Company to purchase the interest. On a recurring basis, the mezzanine liability is adjusted to the greater of: a) the interest’s carrying amount under Accounting Standards Codification (“ASC”) Topic 810, “Consolidation”, or b) the fair value of the interest. Art and Development Costs Art and development costs are primarily internal costs that are not easily associated with specific designs, some of which may not reach commercial production. Accordingly, the Company expenses these costs as incurred. Derivative Financial Instruments ASC Topic 815, “Accounting for Derivative Instruments and Hedging Activities”, requires that all derivative financial instruments be recognized on the balance sheet at fair value and establishes criteria for both the designation and effectiveness of hedging activities. The Company uses derivatives in the management of interest rate and foreign currency exposure. ASC Topic 815 requires the Company to formally document the assets, liabilities or other transactions the Company designates as hedged items, the risk being hedged and the relationship between the hedged items and the hedging instruments. The Company must measure the effectiveness of the hedging relationship at the inception of the hedge and on an on-going If derivative financial instruments qualify as fair value hedges, the gain or loss on the instrument and the offsetting loss or gain on the hedged item attributable to the hedged risk are recognized in net income during the period of the change in fair values. For derivative financial instruments that qualify as cash flow hedges ( i.e i.e Income Taxes Deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities (and operating loss and tax credit carryforwards) applying enacted statutory tax rates in effect for the years in which the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance when, in the judgment of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Stock-Based Compensation Accounting for stock-based compensation requires measurement of compensation cost for all stock-based awards at fair value on the date of grant and recognition of compensation expense over the service period for awards expected to vest. Accumulated Other Comprehensive Loss Accumulated other comprehensive loss consists of the Company’s foreign currency adjustments and the impact of interest rate swap and foreign exchange contracts that qualify as hedges (see Notes 18 and 19). Foreign Currency Transactions and Translation The functional currencies of the Company’s foreign operations are the local currencies in which they operate. Foreign currency exchange gains or losses resulting from receivables or payables in currencies other than the functional currencies generally are credited or charged to operations. The balance sheets of foreign subsidiaries are translated into U.S. dollars at the exchange rates in effect on the balance sheet date. The results of operations of foreign subsidiaries are translated into U.S. dollars at the average exchange rates effective for the periods presented. The differences from historical exchange rates are recorded as comprehensive income (loss) and are included as a component of accumulated other comprehensive loss. Earnings Per Share Basic earnings per share are computed by dividing net income available for common stockholders 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. A reconciliation between basic and diluted income per share is as follows: Year Ended Year Ended Year Ended 2015 Net income attributable to Party City Holdco Inc.: $ 215,340 $ 117,477 $ 10,459 Adjustment to Kazzam liability (see above): (410 ) 0 0 Numerator for earnings per share: $ 214,930 $ 117,477 $ 10,459 Weighted average shares — Basic: 118,589,421 119,381,842 111,917,168 Effect of dilutive warrants: 0 0 0 Effect of dilutive stock options: 1,304,600 987,830 1,026,639 Weighted average shares — Diluted: 119,894,021 120,369,672 112,943,807 Net income per common share — Basic: $ 1.81 $ 0.98 $ 0.09 Net income per common share — Diluted: $ 1.79 $ 0.98 $ 0.09 During the years ended December 31, 2017, December 31, 2016 and December 31, 2015, 2,392,150 stock options, 2,371,876 stock options and 1,991,965 stock options, respectively, were excluded from the calculations of net income per common share — diluted as they were anti-dilutive. Additionally, during the years ended December 31, 2017, December 31, 2016 and December 31, 2015, 596,000 warrants, 0 warrants and 0 warrants, respectively, were excluded from the calculations of net income per common share — diluted as they were anti-dilutive. Recently Issued Accounting Pronouncements In August 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2017-12, In November 2016, the FASB issued ASU 2016-18, In August 2016, the FASB issued ASU 2016-15, In March 2016, the FASB issued ASU 2016-09, In February 2016, the FASB issued ASU 2016-02, In January 2016, the FASB issued ASU 2016-01, In July 2015, the FASB issued ASU 2015-11, In May 2014, the FASB issued ASU 2014-09, |
Inventories, Net
Inventories, Net | 12 Months Ended |
Dec. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories, Net | Note 3 — Inventories, Net Inventories consisted of the following: December 31, 2017 2016 Finished goods $ 562,809 $ 581,277 Raw materials 30,346 23,222 Work in process 10,911 9,369 $ 604,066 $ 613,868 |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, Net | Note 4 — Property, Plant and Equipment, Net Property, plant and equipment, net consisted of the following: December 31, 2017 2016 Useful lives Machinery and equipment $ 187,937 $ 157,170 3-15 years Buildings 68,451 67,851 40 years Data processing 63,354 49,688 3-5 Leasehold improvements 120,146 109,218 1-10 Furniture and fixtures 177,309 163,539 5-10 Land 10,733 10,450 627,930 557,916 Less: accumulated depreciation (326,789 ) (265,012 ) $ 301,141 $ 292,904 Depreciation expense related to property, plant and equipment, including assets under capital leases, was $68,209, $66,383, and $61,630, for the years ended December 31, 2017, December 31, 2016, and December 31, 2015, respectively. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Acquisitions | Note 5 — Acquisitions During January 2017, the Company acquired 18 franchise stores, which are located mostly in Louisiana and Alabama, for total consideration of approximately $16, 000. The following summarizes the fair values of the major classes of assets acquired and liabilities assumed: inventories of $7,600, property, plant and equipment of $2,000, a reacquired right intangible asset in the amount of $3,900 and an asset in the amount of $1,400 due to leases that are favorable when compared to market rates. The allocation of the purchase price, which has been finalized, was based on the Company’s estimate of the fair value of the assets acquired and liabilities assumed. Goodwill, which is tax-deductible, During March 2017, the Company acquired 85% of the common stock of Granmark, S.A. de C.V. (“Granmark”), a Mexican manufacturer and wholesaler of party goods, for total consideration of approximately $22,000 (exclusive of $5,600 of cash acquired). Based on the terms of the acquisition agreement, the Company is required to acquire the remaining 15% interest over a three to five year period and it has recorded a liability for the estimated purchase price of such interest, $2,874 at December 31, 2017. The following summarizes the fair values of the major classes of assets acquired and liabilities assumed: accounts receivable of $4,600, inventories of $3,300, other current assets of $900, property, plant and equipment of $3,100, a customer lists intangible asset in the amount of $4,700, a trade name intangible asset in the amount of $900, accounts payable of $1,500, accrued expenses of $2,700, deferred tax liabilities of $800 and loans and notes payable of $6,500. The allocation of the purchase price, which has been finalized, was based on the Company’s estimate of the fair value of the assets acquired and liabilities assumed. Goodwill, which is not tax-deductible, Also, during March 2017, the Company acquired an additional 18 franchise stores, which are located in North Carolina and South Carolina, for total consideration of approximately $32,000. The following summarizes the fair values of the major classes of assets acquired and liabilities assumed: inventories of $7,700, property, plant and equipment of $500, a reacquired right intangible asset in the amount of $5,500, an asset in the amount of $300 due to leases that are favorable when compared to market rates and a deferred tax asset in the amount of $800. The allocation of the purchase price, which has been finalized, was based on the Company’s estimate of the fair value of the assets acquired and liabilities assumed. Goodwill, which is tax-deductible, During April 2017, the Company paid approximately $4,000 for a 28% ownership interest in Punchbowl, Inc., a provider of digital greeting cards and digital invitations. The Company is accounting for the investment under the equity method of accounting. During July 2017, the Company acquired 60% of the common stock of Print Appeal, Inc. (“Print Appeal”), a wholesaler of personalized cups, napkins, and other items, for total consideration of approximately $3,000 (exclusive of $600 of cash acquired). Based on the terms of the acquisition agreement, the Company is required to acquire the remaining 40% interest over a four to six year period and it has recorded a liability for the estimated purchase price of such interest, $3,063 at December 31, 2017. The allocation of the purchase price has been finalized. During December 2017, the Company acquired seven independent party stores, which are located in Oklahoma, for total consideration of approximately $6,000. The Company is in the process of finalizing the purchase price allocation. Pro forma financial information has not been presented because the impact of the acquisitions individually, and in the aggregate, is not material to the Company’s consolidated financial results. Goodwill Changes by Reporting Segment For the years ended December 31, 2017 and December 31, 2016 goodwill changes, by reporting segment, were as follows: Year Ended Year Ended Wholesale segment: Beginning balance $ 491,859 $ 494,299 Granmark acquisition 13,241 0 Print Appeal acquisition 3,133 0 Other acquisitions 1,348 3,572 Foreign currency impact 4,365 (6,012 ) Ending balance 513,946 491,859 Retail segment: Beginning balance 1,080,709 1,068,216 Store acquisitions 23,025 12,869 Foreign currency impact 1,573 (376 ) Ending balance 1,105,307 1,080,709 Total ending balance, both segments $ 1,619,253 $ 1,572,568 |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Note 6 — Intangible Assets The Company had the following other identifiable intangible assets: December 31, 2017 Cost Accumulated Net Useful lives Retail franchise licenses $ 81,600 $ 35,700 $ 45,900 4-19 years Customer lists and relationships 61,527 36,268 25,259 2-20 Copyrights and designs 29,030 27,406 1,624 5-7 Leasehold interests 16,850 14,229 2,621 1-17 Non-compete 500 200 300 5 years Total $ 189,507 $ 113,803 $ 75,704 December 31, 2016 Cost Accumulated Net Useful lives Retail franchise licenses $ 72,200 $ 27,600 $ 44,600 4-19 Customer lists and relationships 56,385 30,796 25,589 3-20 Copyrights and designs 29,030 24,454 4,576 5-7 Leasehold interests 15,556 14,140 1,416 1-11 Non-compete 500 100 400 5 years Total $ 173,671 $ 97,090 $ 76,581 The Company is amortizing the majority of its intangible assets utilizing accelerated patterns based on the discounted cash flows that were used to value such assets. The amortization expense for finite-lived intangible assets for the years ended December 31, 2017, December 31, 2016, and December 31, 2015 was $16,959, $17,247, and $18,885, respectively. Estimated amortization expense for each of the next five years will be approximately $14,239, $12,987, $10,043, $8,461, and $6,034, respectively. In addition to the Company’s finite-lived intangible assets, the Company has recorded indefinite-lived intangible assets for the Party City trade name, the Amscan trade name, the Halloween City trade name, the Christys trade name, the Granmark trade name, the partycity.com domain name and the partydelights.co.uk domain name. |
Loans and Notes Payable
Loans and Notes Payable | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Loans and Notes Payable | Note 7 — Loans and Notes Payable ABL Facility The Company has a $540,000 asset-based revolving credit facility (with a seasonal increase to $640,000 during a certain period of each calendar year) (“ABL Facility”), which matures on August 19, 2020. It provides for (a) revolving loans, subject to a borrowing base described below, and (b) letters of credit, in an aggregate face amount at any time outstanding not to exceed $50,000. Under the 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 ABL Facility generally provides for two pricing options: (i) an alternate base interest rate (“ABR”) equal to the greater of (a) the prime rate, (b) the federal funds rate plus 0.5% or (c) the LIBOR rate plus 1%, in each case, on the date of such borrowing or (ii) a LIBOR based interest rate, in each case plus an applicable margin. The applicable margin ranges from 0.25% to 0.50% with respect to ABR borrowings and from 1.25% to 1.50% with respect to LIBOR borrowings. In addition to paying interest on outstanding principal, the Company is required to pay a commitment fee of 0.25% per annum in respect of unutilized commitments. The Company must also pay customary letter of credit fees. All obligations under the ABL Facility are jointly and severally guaranteed by PC Intermediate, PCHI and each existing and future domestic subsidiary of PCHI. PCHI and each guarantor has secured its obligations, subject to certain exceptions and limitations, including obligations under its guaranty, as applicable, by a first-priority lien on its accounts receivable, inventory, cash and certain related assets and a second-priority lien on substantially all of its other assets. The facility contains negative covenants that, among other things and subject to certain exceptions, restrict the ability of PCHI to: • incur additional indebtedness; • pay dividends on capital stock or redeem, repurchase or retire capital stock; • make certain investments, loans, advances and acquisitions; • engage in transactions with affiliates; • create liens; and • transfer or sell certain assets. In addition, PCHI must comply with a fixed charge coverage ratio if excess availability under the ABL Facility on any day is less than the greater of: (a) 10% of the lesser of the aggregate commitments and the then borrowing base under the ABL Facility and (b) $40,000. The fixed charge coverage ratio is the ratio of (i) Adjusted EBITDA (as defined in the facility) minus maintenance-related capital expenditures (as defined in the facility) to (ii) fixed charges (as defined in the facility). The ABL Facility also contains certain customary affirmative covenants and events of default. In connection with entering into the ABL Facility, the Company incurred and capitalized third-party costs. All capitalized costs are being amortized over the life of the ABL Facility and are included in loans and notes payable in the Company’s consolidated balance sheet. The balance of related unamortized financing costs at December 31, 2017 was $2,210. Borrowings under the ABL Facility totaled $286,250 at December 31, 2017. The weighted average interest rate for such borrowings was 4.63% at December 31, 2017. Outstanding standby letters of credit totaled $26,328 at December 31, 2017 and, after considering borrowing base restrictions, at December 31, 2017 PCHI had $171,955 of available borrowing capacity under the terms of the facility. Other Credit Agreements The Company’s subsidiaries have also entered into several foreign asset-based and overdraft credit facilities that provide the Company with additional borrowing capacity. At December 31, 2017 and December 31, 2016, there were $2,251 and $1,162 borrowings outstanding under the foreign facilities, respectively. The facilities contain customary affirmative and negative covenants. |
Long-Term Obligations
Long-Term Obligations | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Long-Term Obligations | Note 8 — Long-Term Obligations Long-term obligations consisted of the following: December 31, 2017 2016 Senior secured term loan facility (“Term Loan Credit Agreement”) $ 1,196,505 $ 1,205,496 6.125% senior notes (“Senior Notes”) 345,368 344,544 Capital lease obligations 3,276 2,912 Total long-term obligations 1,545,149 1,552,952 Less: current portion (13,059 ) (13,348 ) Long-term obligations, excluding current portion $ 1,532,090 $ 1,539,604 Term Loan Credit Agreement During October 2016, the Company amended its Term Loan Credit Agreement. In conjunction with the amendment, the Company borrowed $100,000 under its ABL Facility and used the proceeds to make a voluntary prepayment of a portion of the outstanding balance under the Term Loan Credit Agreement. At the time of the amendment, all outstanding term loans were replaced with new term loans for the same principal amount. The applicable margin for ABR borrowings was lowered from 2.25% to 2.00% and the applicable margin for LIBOR borrowings was lowered from 3.25% to 3.00%. Additionally, the LIBOR floor was lowered from 1.00% to 0.75%. During February 2018, the Company amended the Term Loan Credit Agreement again. The applicable margin for ABR borrowings was lowered from 2.00% to 1.75% and the applicable margin for LIBOR borrowings was lowered from 3.00% to 2.75%. Additionally, based on the terms of the amendment, the ABR and LIBOR margins will drop to 1.50% and 2.50%, respectively, if the Company’s Senior Secured Leverage Ratio, as defined by the agreement, falls below 3.2 to 1.0. See Note 22 for further discussion. The amended agreement provides for two pricing options: (i) an ABR for any day, a rate per annum equal to the greater of (a) the prime rate in effect on such day, (b) the federal funds effective rate in effect on such day plus 0.5%, (c) the adjusted LIBOR rate plus 1% and (d) 1.75% or (ii) the LIBOR rate, with a LIBOR floor of 0.75%, in each case plus an applicable margin. The February 2018 amendment provides that the term loans are subject to a 1.00% prepayment premium if voluntarily repaid within six months from the date of the amendment. Otherwise, the term loans may be voluntarily prepaid at any time without premium or penalty, other than customary breakage costs with respect to loans based on the LIBOR rate. Outstanding term loans are subject to mandatory prepayment, subject to certain exceptions, with (i) 100% of net proceeds above a threshold amount of certain asset sales/insurance proceeds, subject to reinvestment rights and certain other exceptions, (ii) 100% of the net cash proceeds of any incurrence of debt other than debt permitted under the Term Loan Credit Agreement, (iii) 50% of Excess Cash Flow, as defined in the agreement, if any (reduced to 25% if PCHI’s first lien leverage ratio (as defined in the agreement) is less than 3.50 to 1.00, but greater than 2.50 to 1.00, and 0% if PCHI’s first lien leverage ratio is less than 2.50 to 1.00). The term loans under the Term Loan Credit Agreement mature on August 19, 2022. The Company is required to repay installments on the loans in quarterly principal amounts of 0.25%, with the remaining amount payable on the maturity date. All obligations under the agreement are jointly and severally guaranteed by PC Intermediate, PCHI and each existing and future domestic subsidiary of PCHI. PCHI and each guarantor has secured its obligations, subject to certain exceptions and limitations, by a first-priority lien on substantially all of its assets (other than accounts receivable, inventory, cash and certain related assets), including a pledge of all of the capital stock held by PC Intermediate, PCHI and each guarantor, and a second-priority lien on its accounts receivable, inventory, cash and certain related assets. The Term Loan Credit Agreement contains certain customary affirmative covenants and events of default. Additionally, it contains negative covenants which, among other things and subject to certain exceptions, restrict the ability of PCHI to: • incur additional indebtedness; • pay dividends on capital stock or redeem, repurchase or retire capital stock; • make certain investments, loans, advances and acquisitions; • engage in transactions with affiliates; • create liens; and • transfer or sell certain assets. At December 31, 2017, the principal amount of term loans outstanding under the Term Loan Credit Agreement was $1,211,268. Such amount is recorded net of original issue discounts, capitalized call premiums and deferred financing costs on the Company’s consolidated balance sheet. At December 31, 2017, original issue discounts, capitalized call premiums and deferred financing costs totaled $14,763. At December 31, 2017, all outstanding borrowings were based on LIBOR and were at a weighted average interest rate of 4.46%. Senior Notes The Senior Notes mature on August 15, 2023. Interest on the notes is payable semi-annually in arrears on February 15 and August 15 of each year. Interest accrues at 6.125%. The notes are guaranteed, jointly and severally, on a senior basis by each of PCHI’s existing and future wholly-owned domestic subsidiaries. The Senior Notes and the guarantees are general unsecured senior obligations and are effectively subordinated to all other secured debt to the extent of the assets securing such secured debt. The indenture governing the Senior Notes contains certain covenants limiting, among other things and subject to certain exceptions, PCHI’s ability to: • incur additional indebtedness or issue certain disqualified stock and preferred stock; • pay dividends or distributions, redeem or repurchase equity; • prepay subordinated debt or make certain investments; • engage in transactions with affiliates; • consolidate, merge or transfer all or substantially all of PCHI’s assets; • create liens; and • transfer or sell certain assets. The indenture governing the notes also contains certain customary affirmative covenants and events of default. On or after August 15, 2018, the Company may redeem the Senior Notes, in whole or in part, at the following (expressed as a percentage of the principal amount to be redeemed): Twelve-month period beginning on August 15, Percentage 2018 103.063 % 2019 101.531 % 2020 and thereafter 100.000 % In addition, the Company may redeem up to 40% of the aggregate principal amount outstanding on or before August 15, 2018 with the net cash proceeds from certain equity offerings at a redemption price of 106.125% of the principal amount. The Company may also redeem some or all of the Senior Notes before August 15, 2018 at a redemption price of 100% of the principal amount plus a premium that is defined in the indenture. Also, if the Company experiences certain types of change in control, as defined, the Company may be required to offer to repurchase the Senior Notes at 101% of their principal amount. In connection with issuing the Senior Notes, the Company incurred and capitalized third-party costs. Capitalized costs are being amortized over the life of the debt and are included in long-term obligations, excluding current portion, in the Company’s consolidated balance sheet. At December 31, 2017, $4,632 of costs were capitalized. Other Indebtedness Additionally, the Company has entered into various capital leases for machinery and equipment. At December 31, 2017 and December 31, 2016 the balances of such leases were $3,276 and $2,912, respectively. Subject to certain exceptions, PCHI may not make certain payments, including the payment of dividends to its shareholders (“restricted payments”), unless certain conditions are met under the terms of the indenture governing the Senior Notes, the ABL Facility and the Term Loan Credit Agreement. As of December 31, 2017, the most restrictive of these conditions existed in the indenture for the Senior Notes and in the Term Loan Credit Agreement, which both limit restricted payments based on PCHI’s consolidated net income and leverage ratios. As of December 31, 2017, PCHI had $87,087 of capacity under the two debt instruments to make restricted payments. PCHI’s parent companies, PC Intermediate, PC Nextco and Party City Holdco, have no assets or operations other than their investments in their subsidiaries and income from those subsidiaries. At December 31, 2017, maturities of long-term obligations consisted of the following: Long-Term Debt Capital Lease Totals 2018 $ 12,266 $ 793 $ 13,059 2019 12,266 716 12,982 2020 12,266 604 12,870 2021 12,266 800 13,066 2022 1,162,204 363 1,162,567 Thereafter 350,000 0 350,000 Long-term obligations $ 1,561,268 $ 3,276 $ 1,564,544 |
Capital Stock
Capital Stock | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Capital Stock | Note 9 — Capital Stock At December 31, 2017, 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. The changes in common shares outstanding during the three years ended December 31, 2015, December 31, 2016 and December 31, 2017 were as follows: Common Shares Outstanding at December 31, 2014 91,007,894 Adjustment to redeemable securities 3,088,630 Issuance of common stock 25,156,250 Exercise of stock options 5,600 Common Shares Outstanding at December 31, 2015 119,258,374 Exercise of stock options 257,520 Common Shares Outstanding at December 31, 2016 119,515,894 Exercise of stock options 243,775 Treasury stock purchases (23,379,567 ) Common Shares Outstanding at December 31, 2017 96,380,102 During the year ended December 31, 2017, the Company acquired 23,379,567 treasury shares for $286,733. The shares are included in “common stock held in treasury” on the Company’s consolidated balance sheet. |
Other Expense (Income), net
Other Expense (Income), net | 12 Months Ended |
Dec. 31, 2017 | |
Text Block [Abstract] | |
Other Expense (Income), net | Note 10 — Other Expense (Income), net Year Ended Year Ended Year Ended Other expense (income), net consists of the following: Undistributed (gain) loss in unconsolidated joint ventures $ (194 ) $ 314 $ 562 Foreign currency losses (gains) 466 (7,417 ) 3,691 Debt refinancings (a) 0 1,458 94,607 Management agreement termination fee (b) 0 0 30,697 Corporate development expenses 2,660 3,290 1,786 Other, net 1,694 345 (353 ) Other expense (income), net $ 4,626 $ (2,010 ) $ 130,990 (a) In August 2015, the Company refinanced its debt and recorded $79,010 of charges in other expense related to call premiums, third-party costs and the write-off write-off (b) In conjunction with the initial public offering, the Company paid a management agreement termination fee to affiliates of THL and Advent. See Note 14 for further discussion. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2017 | |
Postemployment Benefits [Abstract] | |
Employee Benefit Plans | Note 11 — Employee Benefit Plans Certain subsidiaries of the Company maintain defined contribution plans for eligible employees. The plans require the subsidiaries to match from approximately 11% to 100% of voluntary employee contributions to the plans, not to exceed a maximum amount of the employee’s annual salary, ranging from 5% to 6%. Expense for the plans for the years ended December 31, 2017, December 31, 2016, and December 31, 2015 totaled $6,565, $5,792, and $5,196, respectively. |
Equity Incentive Plans
Equity Incentive Plans | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Equity Incentive Plans | Note 12 — Equity Incentive Plans Party City Holdco has adopted the Amended and Restated 2012 Omnibus Equity Incentive Plan (the “2012 Plan”) under which it can grant incentive awards in the form of stock appreciation rights, restricted stock and common stock options to certain directors, officers, employees and consultants of Party City Holdco and its affiliates. A committee of Party City Holdco’s Board of Directors, or the Board itself in the absence of a committee, is authorized to make grants and various other decisions under the 2012 Plan. The maximum number of shares reserved under the 2012 Plan is 15,316,000 shares. Time-based options Party City Holdco grants time-based options to key eligible employees and outside directors. In conjunction with the options, the Company recorded compensation expense of $5,309, $3,853, and $3,042 during the years ended December 31, 2017, December 31, 2016, and December 31, 2015, respectively. The fair value of time-based options granted during the year ended December 31, 2017 was estimated on the grant date using a Black-Scholes option valuation model based on the assumptions in the following table: Expected dividend rate 0% Risk-free interest rate 1.79% to 2.22% Volatility 25.44% to 27.05% Expected option term 5.5 years – 6.5 years As Party City Holdco’s stock only recently started trading publicly, the Company determined volatility based on the average historical volatility of guideline companies. Additionally, as there is not sufficient historical exercise data to provide a reasonable basis for determining the expected term, the Company estimated the expected term using the “simplified” method. The Company based its estimated forfeiture rate on historical forfeitures for time-based options that were granted by PCHI between 2004 and 2012 as the number of options given to each of the various levels of management is principally consistent with historical grants and forfeitures are expected to be materially consistent with past experience. Most of the time-based options that were granted during 2013 vested 20% on July 27, 2013 and vest 20% each July 27 th Performance-based options During 2013, Party City Holdco granted performance-based stock options to key employees and independent directors. For performance-based options, vesting is contingent upon THL achieving specified investment returns when it sells its ownership stake in Party City Holdco. Since the sale of THL’s shares cannot be assessed as probable before it occurs, no compensation expense has been recorded for the performance-based options that have been granted. As of December 31, 2017, 3,673,600 performance-based options were outstanding. Based on a Monte Carlo simulation and the following assumptions, the options have an average grant date fair value of $3.09 per option: Expected dividend rate 0% Risk-free interest rate 1.86% Volatility 52.00% Expected option term 5 years As Party City Holdco’s stock was not publicly traded when the performance-based options were granted, the Company determined volatility based on the average historical volatility of guideline companies. The following table summarizes the changes in outstanding stock options for the years ended December 31, 2015, December 31, 2016 and December 31, 2017. Options Average Average Fair Value of Grant Date Aggregate Weighted Average Remaining Outstanding at December 31, 2014 6,686,400 Granted 2,013,764 $ 17.97 $ 6.04 Exercised (5,600 ) 5.33 Forfeited (176,919 ) 7.36 Outstanding at December 31, 2015 8,517,645 8.28 $ 39,453 7.8 Granted 484,950 15.78 4.68 Exercised (257,520 ) 5.33 Forfeited (283,249 ) 10.05 Outstanding at December 31, 2016 8,461,826 8.74 46,214 6.9 Granted 101,444 14.38 4.46 Exercised (243,775 ) 5.33 Forfeited (294,734 ) 9.47 Outstanding at December 31, 2017 8,024,761 $ 8.89 $ 40,634 6.0 Exercisable at December 31, 2017 2,795,414 $ 9.07 $ 13,636 5.9 Expected to vest at December 31, 2017 (excluding performance-based options) 1,555,747 $ 16.95 $ (4,667 ) 7.7 The intrinsic value of options exercised was $1,972, $2,726 and $60 for the years ended December 31, 2017, December 31, 2016, and December 31, 2015, respectively. The fair value of options vested was $4,354, $4,110, and $1,726, during the years ended December 31, 2017, December 31, 2016, and December 31, 2015, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 13 — Income Taxes On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (“the Act”) was signed into law. The Act significantly changed U.S. tax law, including lowering the U.S. corporate income tax rate from 35% to 21%, effective January 1, 2018, and implementing a one-time non-U.S. A summary of domestic and foreign income before income taxes and including noncontrolling interest follows: Year Ended 2017 Year Ended 2016 Year Ended 2015 Domestic $ 153,280 $ 152,800 $ 7,180 Foreign 34,864 33,914 10,688 Total $ 188,144 $ 186,714 $ 17,868 The income tax (benefit) expense consisted of the following: Year Ended 2017 Year Ended 2016 Year Ended 2015 Current: Federal $ 61,890 $ 50,851 $ 8,137 State 6,267 8,121 2,652 Foreign 7,298 6,864 2,798 Total current expense 75,455 65,836 13,587 Deferred: Federal (101,774 ) 3,290 (6,710 ) State (796 ) (906 ) (1,086 ) Foreign (81 ) 1,017 1,618 Total deferred (benefit) expense (102,651 ) 3,401 (6,178 ) Income tax (benefit) expense $ (27,196 ) $ 69,237 $ 7,409 Deferred income taxes reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The deferred federal income tax benefit for the year ended December 31, 2017 includes a $90,965 provisional benefit due to the Act lowering the U.S. corporate income tax rate from 35% to 21%. See above for further discussion. Deferred income tax assets and liabilities consisted of the following: December 31, 2017 2016 Deferred income tax assets: Inventory valuation $ 7,064 $ 10,138 Allowance for doubtful accounts 746 893 Accrued liabilities 8,130 10,402 Equity based compensation 3,145 3,236 Federal tax loss carryforwards 960 2,715 State tax loss carryforwards 1,726 1,070 Foreign tax loss carryforwards 14,151 13,992 Foreign tax credit carryforwards 6,412 1,418 Deferred rent 9,867 11,816 Other 166 509 Deferred income tax assets before valuation allowances 52,367 56,189 Less: valuation allowances (24,073 ) (17,331 ) Deferred income tax assets, net $ 28,294 $ 38,858 Deferred income tax liabilities: Property, plant and equipment $ 13,855 $ 24,055 Intangible assets 145,066 218,046 Amortization of goodwill and other assets 42,297 61,163 Foreign earnings expected to be repatriated 586 10,954 Other 1,176 2,655 Deferred income tax liabilities $ 202,980 $ 316,873 In the Company’s December 31, 2017 consolidated balance sheet, $1,150 was included in “other assets, net” and $175,836 was included in deferred income tax liabilities. At December 31, 2016, $804 was included in “other assets, net” and $278,819 was included in deferred income tax liabilities. Management assesses the available positive and negative evidence to estimate if sufficient taxable income will be generated to realize existing deferred tax assets. On the basis of this evaluation, a valuation allowance was recorded to reduce the total deferred tax assets to an amount that will, more-likely-than-not, As of December 31, 2017, the Company had foreign tax-effected The difference between the Company’s effective income tax rate and the U.S. statutory income tax rate is as follows: Year Ended Year Ended Year Ended Tax provision at U.S. statutory income tax rate 35.0 % 35.0 % 35.0 % State income tax, net of federal income tax 1.9 2.5 5.7 Domestic production activities deduction (1.4 ) (1.0 ) (5.1 ) Contingent consideration adjustment 0.2 (0.1 ) (6.0 ) Work Opportunity Tax Credit (0.4 ) (0.3 ) (3.2 ) Valuation allowances 2.1 0.5 21.7 Foreign earnings (1.7 ) 2.3 9.1 U.S. — foreign rate differential (1.9 ) (2.4 ) (13.7 ) Transition Tax on unremitted foreign earnings, net 0.6 0.0 0.0 Effect of the Act on Federal deferred income tax assets and liabilities (48.4 ) 0.0 0.0 Other (0.5 ) 0.6 (2.0 ) Effective income tax rate (14.5 )% 37.1 % 41.5 % Transition Tax on Unremitted Foreign Earnings: one-time Effect of the Act on Federal Deferred Income Tax Assets and Liabilities: Other differences between the effective income tax rate and the federal statutory income tax rate are composed primarily of reserves for unrecognized tax benefits, non-deductible The following table summarizes the activity related to the Company’s gross unrecognized tax benefits: Year Ended Year Ended Year Ended 2015 Balance as of beginning of period $ 913 $ 765 $ 798 Increases related to current period tax positions 100 444 130 (Decreases) increases related to prior period tax positions (158 ) 339 0 Decreases related to settlements 0 (635 ) (92 ) Decreases related to lapsing of statutes of limitations 0 0 (71 ) Balance as of end of period $ 855 $ 913 $ 765 The Company’s total unrecognized tax benefits that, if recognized, would impact the Company’s effective tax rate were $855 and $913 at December 31, 2017 and 2016, respectively. As of December 31, 2017, we do not believe that there are any positions for which it is reasonably possible that the total amount of unrecognized tax benefits will significantly increase or decrease within the next 12 months. The Company recognizes accrued interest and penalties related to unrecognized tax benefits in income tax expense. The Company has accrued $73 and $28 for the potential payment of interest and penalties at December 31, 2017 and 2016, respectively. Such amounts are not included in the table above. The IRS is currently conducting an examination of the year ended December 31, 2015. For U.S. state income tax purposes, tax years 2013-2017 generally remain open; whereas for non-U.S. |
Commitments, Contingencies and
Commitments, Contingencies and Related Party Transactions | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Commitments, Contingencies and Related Party Transactions | Note 14 — Commitments, Contingencies and Related Party Transactions Lease Agreements The Company has non-cancelable At December 31, 2017, future minimum lease payments under all operating leases consisted of the following: Future Minimum 2018 $ 186,278 2019 161,996 2020 146,603 2021 132,217 2022 115,502 Thereafter 310,992 $ 1,053,588 The future minimum lease payments included in the above table also do not include contingent rent based upon sales volumes or other variable costs, such as maintenance, insurance and taxes. Rent expense for the years ended December 31, 2017, December 31, 2016, and December 31, 2015 was $255,615, $235,790, and $225,543, respectively, and included immaterial amounts of rent expense related to contingent rent. Litigation On April 5, 2016, a derivative complaint was filed in the Supreme Court for the State of New York, naming certain directors and executives as defendants, and naming the Company as a nominal defendant. The complaint seeks unspecified damages and costs, and corporate governance reforms, for alleged injury to the Company in connection with public filings related to the Company’s April 2015 IPO, compensation paid to executives, and the termination of the management agreement disclosed in the initial public offering-related public filings. The Company intends to vigorously defend itself against this action. The Company is unable, at this time, to determine whether the outcome of the litigation would have a material impact on its results of operations, financial condition or cash flows. Additionally, the Company is a party to certain claims and litigation in the ordinary course of business. The Company does not believe that any of these proceedings will result, individually or in the aggregate, in a material adverse effect upon its financial condition or future results of operations. Product Royalty Agreements The Company has entered into product royalty agreements, with various licensors of copyrighted and trademarked characters and designs, which are used on the Company’s products, which require royalty payments based on sales of the Company’s products, and, in some cases, include annual minimum royalties. At December 31, 2017, the Company’s commitment to pay future minimum product royalties was as follows: Future Minimum 2018 $ 29,879 2019 18,982 2020 6,992 2021 150 2022 0 Thereafter 0 $ 56,003 Product royalty expense for the years ended December 31, 2017, December 31, 2016, and December 31, 2015 was $46,242, $43,914, and $45,710, respectively. Related Party Transactions During 2012, Party City Holdco and PCHI entered into a management agreement with THL and Advent under which THL and Advent provided advice on, among other things, financing, operations, acquisitions and dispositions. Under the agreement, THL and Advent were paid, in aggregate, an annual management fee in the amount of the greater of $3,000 or 1.0% of Adjusted EBITDA, as defined in PCHI’s debt agreements. THL and Advent received annual management fees in the amounts of $692 and $238, respectively, during the year ended December 31, 2015. Such amounts were recorded in general and administrative expenses in the Company’s consolidated statement of operations and comprehensive income (loss). In the case of an initial public offering or a change in control, as defined in Party City Holdco’s stockholders’ agreement, at the time of such event the Company was required to pay THL and Advent the net present value of the remaining annual management fees that were payable over the agreement’s ten year term. Therefore, during April 2015, in conjunction with the Company’s initial public offering, the Company paid a management agreement termination fee of $30,697. Morry Weiss became a member of the Company’s Board of Directors in June 2015. He is the Chairman of the Board of American Greetings Corporation (“American Greetings”). During the years ended December 31, 2017, December 31, 2016 and December 31, 2015, the Company had $22,100, $19,600 and $30,100, respectively, of sales to American Greetings in the ordinary course of business. Additionally, during such years, the Company purchased $3,700, $2,700 and $3,500, respectively, of product from American Greetings, also in the ordinary course. Additionally, in the normal course of business, the Company buys and sells party goods from/to certain equity method investees. Such activity is immaterial to the Company’s consolidated financial statements. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | Note 15 — Segment Information Industry Segments The Company has two identifiable business segments. The Wholesale segment designs, manufactures, contracts for manufacture and distributes party goods, including paper and plastic tableware, metallic and latex balloons, Halloween and other costumes, accessories, novelties and stationery throughout the world. The Retail segment operates specialty retail party supply stores in the United States and Canada, principally under the names Party City and Halloween City, and it operates e-commerce The Company’s industry segment data for the years ended December 31, 2017, December 31, 2016, and December 31, 2015 are as follows: Wholesale Retail Consolidated Year Ended December 31, 2017 Revenues: Net sales $ 1,260,089 $ 1,728,589 $ 2,988,678 Royalties and franchise fees 0 13,583 13,583 Total revenues 1,260,089 1,742,172 3,002,261 Eliminations (630,692 ) 0 (630,692 ) Net revenues $ 629,397 $ 1,742,172 $ 2,371,569 Income from operations $ 68,130 $ 212,006 $ 280,136 Interest expense, net 87,366 Other expense, net 4,626 Income before income taxes $ 188,144 Depreciation and amortization $ 30,520 $ 54,648 $ 85,168 Capital expenditures $ 32,490 $ 34,480 $ 66,970 Total assets $ 1,050,620 $ 2,404,136 $ 3,454,756 Wholesale Retail Consolidated Year Ended December 31, 2016 Revenues: Net sales $ 1,252,218 $ 1,641,068 $ 2,893,286 Royalties and franchise fees 0 17,005 17,005 Total revenues 1,252,218 1,658,073 2,910,291 Eliminations (626,900 ) 0 (626,900 ) Net revenues $ 625,318 $ 1,658,073 $ 2,283,391 Income from operations $ 91,920 $ 182,164 $ 274,084 Interest expense, net 89,380 Other income, net (2,010 ) Income before income taxes $ 186,714 Depreciation and amortization $ 29,695 $ 53,935 $ 83,630 Capital expenditures $ 26,854 $ 55,094 $ 81,948 Total assets $ 1,004,599 $ 2,389,379 $ 3,393,978 Wholesale Retail Consolidated Year Ended December 31, 2015 Revenues: Net sales $ 1,226,989 $ 1,621,524 $ 2,848,513 Royalties and franchise fees 0 19,411 19,411 Total revenues 1,226,989 1,640,935 2,867,924 Eliminations (573,391 ) 0 (573,391 ) Net revenues $ 653,598 $ 1,640,935 $ 2,294,533 Income from operations $ 85,728 $ 186,491 $ 272,219 Interest expense, net 123,361 Other expense, net 130,990 Income before income taxes $ 17,868 Depreciation and amortization $ 29,352 $ 51,163 $ 80,515 Capital expenditures $ 18,849 $ 59,976 $ 78,825 Geographic Segments Export sales of metallic balloons of $22,812, $23,631, and $22,803 during the years ended December 31, 2017, December 31, 2016, and December 31, 2015, respectively, are included in domestic sales to unaffiliated customers below. Intercompany sales between geographic areas primarily consist of sales of finished goods and are generally made at cost plus a share of operating profit. The Company’s geographic area data follows: Domestic Foreign Eliminations Consolidated Year Ended December 31, 2017 Revenues: Net sales to unaffiliated customers $ 1,962,697 $ 395,289 $ 0 $ 2,357,986 Net sales between geographic areas 54,268 64,585 (118,853 ) 0 Net sales 2,016,965 459,874 (118,853 ) 2,357,986 Royalties and franchise fees 13,583 0 0 13,583 Total revenues $ 2,030,548 $ 459,874 $ (118,853 ) $ 2,371,569 Income from operations $ 252,270 $ 27,866 $ 0 $ 280,136 Interest expense, net 87,366 Other expense, net 4,626 Income before income taxes $ 188,144 Depreciation and amortization $ 76,970 $ 8,198 $ 85,168 Total long-lived assets (excluding goodwill, trade names and other intangible assets, net) $ 277,791 $ 36,174 $ 313,965 Total assets $ 3,131,256 $ 323,500 $ 0 $ 3,454,756 Domestic Foreign Eliminations Consolidated Year Ended December 31, 2016 Revenues: Net sales to unaffiliated customers $ 1,917,158 $ 349,228 $ 0 $ 2,266,386 Net sales between geographic areas 51,916 80,776 (132,692 ) 0 Net sales 1,969,074 430,004 (132,692 ) 2,266,386 Royalties and franchise fees 17,005 0 0 17,005 Total revenues $ 1,986,079 $ 430,004 $ (132,692 ) $ 2,283,391 Income from operations $ 257,774 $ 16,310 $ 0 $ 274,084 Interest expense, net 89,380 Other income, net (2,010 ) Income before income taxes $ 186,714 Depreciation and amortization $ 77,176 $ 6,454 $ 83,630 Total long-lived assets (excluding goodwill, trade names and other intangible assets, net) $ 269,047 $ 28,359 $ 297,406 Total assets $ 3,147,003 $ 246,975 $ 0 $ 3,393,978 Domestic Foreign Eliminations Consolidated Year Ended December 31, 2015 Revenues: Net sales to unaffiliated customers $ 1,937,793 $ 337,329 $ 0 $ 2,275,122 Net sales between geographic areas 47,752 74,974 (122,726 ) 0 Net sales 1,985,545 412,303 (122,726 ) 2,275,122 Royalties and franchise fees 19,411 0 0 19,411 Total revenues $ 2,004,956 $ 412,303 $ (122,726 ) $ 2,294,533 Income from operations $ 267,209 $ 5,010 $ 0 $ 272,219 Interest expense, net 123,361 Other expense, net 130,990 Income before income taxes $ 17,868 Depreciation and amortization $ 74,849 $ 5,666 $ 80,515 |
Quarterly Results
Quarterly Results | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results | Note 16 — Quarterly Results (Unaudited) Despite a concentration of holidays in the fourth quarter of the year, as a result of the Company’s expansive product lines and customer base and increased promotional activities, the impact of seasonality on the quarterly results of the Company’s wholesale operations has been limited. However, due to Halloween and Christmas, the inventory balances of the Company’s wholesale operations are slightly higher during the third quarter than during the remainder of the year. Additionally, the promotional activities of the Company’s wholesale business, including special dating terms, particularly with respect to Halloween products sold to retailers and other distributors, result in slightly higher accounts receivable balances during the third quarter. The Company’s retail operations are subject to significant seasonal variations. Historically, the Company’s retail operations have realized a significant portion of their revenues, cash flow and net income in the fourth quarter of the year, principally due to Halloween sales in October and, to a lesser extent, year-end The following table sets forth our historical revenues, gross profit, income (loss) from operations, net income (loss), net income (loss) attributable to Party City Holdco Inc., net income (loss) per common share – Basic, and net income (loss) per common share—Diluted for each of the following periods: For the Three Months Ended, 2017: March 31, June 30, September 30, December 31, Revenues: Net sales $ 473,963 $ 541,653 $ 557,350 $ 785,020 Royalties and franchise fees 3,036 3,225 2,759 4,563 Gross profit 175,244 219,753 199,827 367,883 Income from operations 14,671 60,699 37,388 167,378 Net (loss) income (4,683 ) 24,982 10,084 184,957 (a) Net (loss) income per common share—Basic $ (0.04 ) $ 0.21 $ 0.08 $ 1.59 (a) Net (loss) income per common share—Diluted $ (0.04 ) $ 0.21 $ 0.08 $ 1.58 (a) For the Three Months Ended, 2016: March 31, June 30, September 30, December 31, Revenues: Net sales $ 454,286 $ 515,426 $ 553,382 $ 743,292 Royalties and franchise fees 3,454 3,987 3,568 5,996 Gross profit 166,519 207,561 196,720 345,199 Income from operations 19,556 58,480 36,918 159,130 Net (loss) income (394 ) 22,515 10,180 85,176 Net (loss) income per common share—Basic $ (0.00 ) $ 0.19 $ 0.09 $ 0.71 Net (loss) income per common share—Diluted $ (0.00 ) $ 0.19 $ 0.08 $ 0.71 (a) On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (“the Act”) was signed into law. The Act significantly changed U.S. tax law, including lowering the U.S. corporate income tax rate from 35% to 21%, effective January 1, 2018, and implementing a one-time non-U.S. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 17 — 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 acquired a 28% ownership interest in Punchbowl, Inc. (“Punchbowl”), a provider of digital greeting cards and digital invitations. At such time, the Company provided Punchbowl’s other investors with the ability to “put” their interest in Punchbowl to the Company at a future date. The Company is adjusting such put liability to fair value on a recurring basis. The liability represents a Level 3 fair value measurement as it is based on 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 a 70% ownership interest in Kazzam. The 70% interest has been recorded as redeemable securities in the mezzanine of the Company’s consolidated balance sheet as, in the future, Ampology has the right to cause the Company to purchase the interest. The mezzanine liability is adjusted to fair value on a recurring basis. The liability represents a Level 3 fair value measurement as it is based on unobservable inputs. During 2015, the Company acquired 75% of the operations of Accurate Custom Injection Molding Inc. (“ACIM”). Based on the terms of the acquisition agreement, the Company will acquire the remaining 25% interest in ACIM over the next five years and the Company’s liability for the estimated purchase price of such interest was $0 at December 31, 2017. The liability represents a Level 3 fair value measurement as it is based on unobservable inputs. During 2017, the Company acquired 85% of the common stock of Granmark, S.A. de C.V., a Mexican manufacturer and wholesaler of party goods. See Note 5 for further discussion of the acquisition. Based on the terms of the acquisition agreement, the Company is required to acquire the remaining 15% interest over the next five years and it has recorded a liability for the estimated purchase price of such interest, $2,874 at December 31, 2017. The liability represents a Level 3 fair value measurement as it is based on unobservable inputs. During 2017, the Company acquired 60% of Print Appeal, Inc. (“Print Appeal”). See Note 5 for further discussion of the acquisition. Based on the terms of the acquisition agreement, the Company will acquire the remaining 40% interest in Print Appeal over the next six years and the Company’s liability for the estimated purchase price of such interest was $3,063 at December 31, 2017. The liability represents a Level 3 fair value measurement as it is based on unobservable inputs. The following table shows assets and liabilities as of December 31, 2017 that are measured at fair value on a recurring basis: Level 1 Level 2 Level 3 Total as of Derivative assets $ 0 $ 95 $ 0 $ 95 Derivative liabilities 0 99 0 99 Kazzam liability 0 0 3,590 3,590 Punchbowl put liability 0 0 2,122 2,122 Granmark noncontrolling interest liability 0 0 2,874 2,874 Print Appeal noncontrolling interest liability 0 0 3,063 3,063 The following table shows assets and liabilities as of December 31, 2016 that are measured at fair value on a recurring basis: Level 1 Level 2 Level 3 Total as of Derivative assets $ 0 $ 697 $ 0 $ 697 Derivative liabilities 0 215 0 215 Noncontrolling interests liabilities 0 0 0 0 The majority of the Company’s non-financial non-financial non-financial non-financial The carrying amounts and fair values of borrowings under the Term Loan Credit Agreement and the Senior Notes as of December 31, 2017 are as follows: Carrying Amount Fair Value Term Loan Credit Agreement $ 1,196,505 $ 1,217,324 Senior Notes 345,368 362,250 The fair values of the Term Loan Credit Agreement and the Senior Notes 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 December 31, 2017 based on the discounted future cash flows of each instrument at rates currently offered for similar debt instruments of comparable maturity. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Note 18 — 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. Interest Rate Risk Management As part of the Company’s risk management strategy, the Company periodically uses interest rate swap agreements to hedge the variability of cash flows on floating rate debt obligations. Accordingly, interest rate swap agreements are reflected in the consolidated balance sheets at fair value and the related gains and losses on these contracts are deferred in equity and recognized in interest expense over the same period in which the related interest payments being hedged are recognized in income. The fair value of an interest rate swap agreement is the estimated amount that the counterparty would receive or pay to terminate the swap agreement at the reporting date, taking into account current interest rates and the current creditworthiness of the swap counterparty. The Company did not utilize interest rate swap agreements during the years ended December 31, 2017, December 31, 2016 or December 31, 2015. Foreign Exchange Risk Management A portion of the Company’s cash flows is derived from transactions denominated in foreign currencies. In order to reduce the uncertainty of foreign exchange rate movements on transactions denominated in foreign currencies, including the British Pound Sterling, the Canadian Dollar, the Euro, the Malaysian Ringgit, the Australian Dollar, and the Mexican Peso, the Company enters into foreign exchange contracts with major international financial institutions. These forward contracts, which typically mature within one year, are designed to hedge anticipated foreign currency transactions, primarily inventory purchases and sales. For contracts that qualify for hedge accounting, the terms of the foreign exchange contracts are such that cash flows from the contracts should be highly effective in offsetting the expected cash flows from the underlying forecasted transactions. The foreign currency exchange contracts are reflected in the consolidated balance sheets at fair value. At December 31, 2017 and 2016, 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 are 100% effective, there is no current impact on earnings due to hedge ineffectiveness. The Company anticipates that substantially all unrealized gains and losses in accumulated other comprehensive loss related to these foreign currency exchange contracts will be reclassified into earnings by June 2019. The following table displays the fair values of the Company’s derivatives at December 31, 2017 and December 31, 2016: Derivative Assets Derivative Liabilities Balance Fair Balance Fair Balance Fair Balance Fair Derivative Instrument December 31, 2017 December 31, 2016 December 31, 2017 December 31, 2016 Foreign Exchange Contracts (a ) PP $ 95 (a ) PP $ 697 (b ) AE $ 99 (b ) AE $ 215 (a) PP = Prepaid expenses and other current assets (b) AE = Accrued expenses The following table displays the notional amounts of the Company’s derivatives at December 31, 2017 and December 31, 2016: Derivative Instrument December 31, December 31, Foreign Exchange Contracts $ 21,672 $ 22,502 |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Loss | Note 19 — Changes in Accumulated Other Comprehensive Loss The changes in accumulated other comprehensive loss attributable to Party City Holdco Inc. consisted of the following: Year Ended December 31, 2017 Foreign Impact of Total, Net Balance at December 31, 2016 $ (53,171 ) $ 932 $ (52,239 ) Other comprehensive income (loss) before reclassifications, net of income tax 17,561 (1,044 ) 16,517 Amounts reclassified from accumulated other comprehensive loss to the consolidated statement of operations and comprehensive income, net of income tax 0 (96 ) (96 ) Net current-period other comprehensive income (loss) 17,561 (1,140 ) 16,421 Balance at December 31, 2017 $ (35,610 ) $ (208 ) $ (35,818 ) Year Ended December 31, 2016 Foreign Impact of Total, Net Balance at December 31, 2015 $ (33,401 ) $ 611 $ (32,790 ) Other comprehensive (loss) income before reclassifications, net of income tax (19,770 ) 1,080 (18,690 ) Amounts reclassified from accumulated other comprehensive loss to the consolidated statement of operations and comprehensive income, net of income tax 0 (759 ) (759 ) Net current-period other comprehensive (loss) income (19,770 ) 321 (19,449 ) Balance at December 31, 2016 $ (53,171 ) $ 932 $ (52,239 ) Year Ended December 31, 2015 Foreign Impact of Total, Net Balance at December 31, 2014 $ (12,969 ) $ 234 $ (12,735 ) Other comprehensive (loss) income before reclassifications, net of income tax (20,432 ) 675 (19,757 ) Amounts reclassified from accumulated other comprehensive loss to the consolidated statement of operations and comprehensive loss, net of income tax 0 (298 ) (298 ) Net current-period other comprehensive (loss) income (20,432 ) 377 (20,055 ) Balance at December 31, 2015 $ (33,401 ) $ 611 $ (32,790 ) |
Organizational Restructuring
Organizational Restructuring | 12 Months Ended |
Dec. 31, 2017 | |
Restructuring and Related Activities [Abstract] | |
Organizational Restructuring | Note 20 — Organizational Restructuring On March 15, 2017, the Company and its Chairman of the Board of Directors (“the Board”), Gerald Rittenberg, entered into a Transition and Consulting Agreement under which Mr. Rittenberg’s employment as Executive Chairman of the Company terminated effective March 31, 2017. Beginning on April 1, 2017 and continuing through December 31, 2020, unless earlier terminated as provided for in the agreement (the “Consulting Period”), Mr. Rittenberg will serve on a part-time basis as a non-employee senior a non-employee member Under the Transition and Consulting Agreement, Mr. Rittenberg received payments from April 1, 2017 through December 31, 2017 in amounts equal to his base salary had he remained employed as Executive Chairman during such period (i.e., pay at an annual rate equal to $2,090). Additionally, he remained eligible to receive an annual bonus for full-year 2017 based on the terms of the Company’s 2017 bonus plan and the terms of his previous employment agreement (a target amount equal to 80% of his 2017 base salary). Further, during 2018, Mr. Rittenberg will receive severance payments aggregating $2,049, which will be made in four equal quarterly installments. Finally, beginning on January 1, 2018 and for the remainder of the Consulting Period, Mr. Rittenberg will receive payments equal to $40 per month in consideration for his consulting services. As a result of the Transition and Consulting Agreement, the Company recorded a $3,918 severance charge in general and administrative expenses during the year ended December 31, 2017. Such amount represents: (1) the amount that he was paid from April 1, 2017 – December 31, 2017 that was above and beyond the fair value ($40 per month) of his consulting services during such period, $1,207, (2) his bonus for the period from April 1, 2017 — December 31, 2017, $662, and (3) the severance to be paid during 2018, $2,049. Throughout the Consulting Period, the Company will record $40 per month in general and administrative expenses, such amount representing the fair value of his consulting services. The Transition and Consulting Agreement allows Mr. Rittenberg’s existing unvested stock options to continue vesting (such options would have been forfeited had he left the Company) and allows his existing vested stock options to remain outstanding (had he left the Company, he would have only had 60 days to exercise vested options). As the remaining service period is non-substantive, Also, during the year ended December 31, 2017, the Company recorded a $3,195 severance charge related to the restructuring of its Retail segment. Of such amount, $2,291 was recorded in retail operating expenses and $904 was recorded in general and administrative expenses. The majority of the severance was paid during 2017. |
Kazzam, LLC
Kazzam, LLC | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Kazzam, LLC | Note 21 — 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. The website will allow consumers to select, schedule and pay for various services (including entertainment, activities and food) all through a single portal. Although the Company currently only owns 30% of Kazzam’s equity, the Company has concluded that: a) Kazzam is a variable interest entity as it has insufficient equity at risk and b) the Company is its primary beneficiary. Therefore, the Company has consolidated Kazzam into the Company’s financial statements. Further, as the Company is currently funding all of Kazzam’s start-up As part of Ampology’s compensation for designing, developing and launching the exchange platform, Ampology received a 70% ownership interest in Kazzam. The interest has been recorded in redeemable securities in the mezzanine of the Company’s consolidated balance sheet as, in the future, Ampology has the right to cause the Company to purchase the interest. During the year ended December 31, 2017, Kazzam recognized $2,682 of expense related to the 70% interest. Such amount was recorded in “development stage expenses” in the Company’s consolidated statement of operations and comprehensive income. Additionally, the Company capitalized $498 of the fair value of the 70% interest in property, plant and equipment as it related to website development costs. Also, as compensation for its services, Ampology was granted a warrant to acquire 596,000 shares of Party City Holdco Inc. stock. During the year ended December 31, 2017, Kazzam recorded $351 of expense related to the warrant. The amount was recorded in “development stage expenses” in the Company’s consolidated statement of operations and comprehensive income. Additionally, the Company capitalized $70 of the value of the warrant in property, plant and equipment as it related to website development costs. The warrant has an exercise price of $15.60 and a fair value of $1,931, which is being amortized over approximately four years. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 22 — Subsequent Events During March 2018, the Company acquired an additional 11 franchise stores, which are located in Maryland, for total consideration of approximately $14,000. During February 2018, the Company amended its Term Loan Credit Agreement. At the time of the amendment, all outstanding term loans were replaced with new term loans for the same principal amount. The applicable margin for ABR borrowings was lowered from 2.00% to 1.75% and the applicable margin for LIBOR borrowings was lowered from 3.00% to 2.75%. Additionally, based on the terms of the amendment, the ABR and LIBOR margins will drop to 1.50% and 2.50%, respectively, if the Company’s Senior Secured Leverage Ratio, as defined by the agreement, falls below 3.2 to 1.0. The amendment provides that the term loans are subject to a 1.00% prepayment premium if voluntarily repaid within six months from the date of the amendment. Otherwise, the term loans may be voluntarily prepaid at any time without premium or penalty, other than customary breakage costs with respect to loans based on the LIBOR rate. The term loans are subject to mandatory prepayment, subject to certain exceptions, with (i) 100% of net proceeds above a threshold amount of certain asset sales/insurance proceeds, subject to reinvestment rights and certain other exceptions, (ii) 100% of the net cash proceeds of any incurrence of debt other than debt permitted under the Term Loan Credit Agreement, (iii) 50% of Excess Cash Flow, as defined in the agreement, if any (reduced to 25% if PCHI’s first lien leverage ratio (as defined in the agreement) is less than 3.50 to 1.00, but greater than 2.50 to 1.00, and 0% if PCHI’s first lien leverage ratio is less than 2.50 to 1.00). In conjunction with the amendment of the agreement in February 2018, the requirement to make an Excess Cash Flow payment for the year ended December 31, 2017 was eliminated. The Company incurred approximately $850 of costs, principally banker fees, in conjunction with the amendment. |
Schedule I - Condensed Financia
Schedule I - Condensed Financial Information of Registrant | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Schedule I - Condensed Financial Information of Registrant | SCHEDULE I—CONDENSED FINANCIAL INFORMATION OF REGISTRANT PARTY CITY HOLDCO INC. (Parent company only) CONDENSED BALANCE SHEETS (Dollars in thousands) December 31, 2017 December 31,2016 ASSETS Other assets (principally investment in and amounts due from wholly-owned subsidiaries) $ 972,025 $ 1,016,789 Total assets $ 972,025 $ 1,016,789 LIABILITIES, REDEEMABLE SECURITIES AND STOCKHOLDERS’ EQUITY Total liabilities $ 0 $ 0 Redeemable securities 3,590 0 Commitments and contingencies Stockholders’ equity: Common stock ($0.01 par value; 96,380,102 and 119,515,894 shares outstanding and 119,759,669 and 119,515,894 shares issued at December 31, 2017 and December 31, 2016, respectively ) 1,198 1,195 Additional paid-in 917,192 910,167 Retained earnings 372,596 157,666 Accumulated other comprehensive loss (35,818 ) (52,239 ) Total stockholders’ equity before common stock held in treasury 1,255,168 1,016,789 Less: Common stock held in treasury, at cost (23,379,567 shares at December 31, 2017) (286,733 ) 0 Total stockholders’ equity 968,435 1,016,789 Total liabilities, redeemable securities and stockholders’ equity $ 972,025 $ 1,016,789 See accompanying notes to these condensed financial statements. PARTY CITY HOLDCO INC. (Parent company only) CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Dollars in thousands) Year Ended Year Ended Year Ended Equity in net income of subsidiaries $ 215,340 $ 117,477 $ 10,459 Net income $ 215,340 $ 117,477 $ 10,459 Other comprehensive income (loss) 16,421 (19,449 ) (20,055 ) Comprehensive income (loss) $ 231,761 $ 98,028 $ (9,596 ) See accompanying notes to these condensed financial statements. PARTY CITY HOLDCO INC. (Parent company only) CONDENSED STATEMENTS OF CASH FLOWS (Dollars in thousands) Year Ended Year Ended Year Ended Cash flows provided by (used in) operating activities: Net income $ 215,340 $ 117,477 $ 10,459 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Equity in net income of subsidiaries (215,340 ) (117,477 ) (10,459 ) Change in due to/from affiliates 285,435 (1,373 ) (397,189 ) Net cash provided by (used in) operating activities 285,435 (1,373 ) (397,189 ) Cash flows (used in) provided by financing activities: Issuance of common stock 0 0 397,159 Treasury stock purchases (286,733 ) 0 0 Exercise of stock options 1,298 1,373 30 Net cash (used in) provided by financing activities (285,435 ) 1,373 397,189 Net change in cash and cash equivalents 0 0 0 Cash and cash equivalents at beginning of period 0 0 0 Cash and cash equivalents at end of period $ 0 $ 0 $ 0 |
Basis of presentation and descr
Basis of presentation and description of registrant | 12 Months Ended |
Dec. 31, 2017 | |
Party City Holdco Inc. [Member] | |
Basis of presentation and description of registrant | Note 1 — Basis of presentation and description of registrant Party City Holdco Inc. (“Party City Holdco”) Schedule I Condensed Financial Information provides all parent company information that is required to be presented in accordance with the SEC rules and regulations for financial statement schedules. The consolidated financial statements of Party City Holdco are included elsewhere. The parent-company financial statements should be read in conjunction with the consolidated financial statements and the notes thereto. Party City Holdco conducts no separate operations and acts only as a holding company. Its share of the net income of its unconsolidated subsidiaries is included in its statements of income using the equity method. Since all material stock requirements, dividends and guarantees of the registrant have been disclosed in the consolidated financial statements, the information is not required to be repeated in this schedule. |
Dividends from subsidiaries
Dividends from subsidiaries | 12 Months Ended |
Dec. 31, 2017 | |
Party City Holdco Inc. [Member] | |
Dividends from subsidiaries | Note 2 — Dividends from subsidiaries No cash dividends were paid to Party City Holdco by its subsidiaries during the years included in these financial statements. |
Schedule II- Valuation and Qual
Schedule II- Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2017 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule II- Valuation and Qualifying Accounts | SCHEDULE II PARTY CITY HOLDCO INC. VALUATION AND QUALIFYING ACCOUNTS The Years Ended December 31, 2015, December 31, 2016, and December 31, 2017 (Dollars in thousands) Beginning Write-Offs Additions Ending Allowance for Doubtful Accounts: For the year ended December 31, 2015 $ 2,889 $ 769 $ 223 $ 2,343 For the year ended December 31, 2016 2,343 441 781 2,683 For the year ended December 31, 2017 2,683 272 560 2,971 Sales Returns and Allowances: For the year ended December 31, 2015 $ 526 $ 78,219 $ 78,348 $ 655 For the year ended December 31, 2016 655 80,317 80,128 466 For the year ended December 31, 2017 466 83,865 83,879 480 |
Summary of Significant Accoun34
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Consolidated Financial Statements | Consolidated Financial Statements The consolidated financial statements of the Company include the accounts of all majority-owned subsidiaries and controlled entities. All intercompany balances and transactions have been eliminated. The Company’s retail operations define a fiscal year (“Fiscal Year”) as the 52-week 53-week 13-week 53-week |
Use of Estimates | Use of Estimates The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Management periodically evaluates estimates used in the preparation of the consolidated financial statements for continued reasonableness. Appropriate adjustments, if any, to the estimates used are made prospectively based on such periodic evaluations. |
Cash Equivalents | Cash Equivalents Highly liquid investments with a maturity of three months or less when purchased are considered to be cash equivalents. All credit card transactions that process in less than seven days are classified as cash and cash equivalents. |
Inventories | Inventories Inventories are valued at the lower of cost and 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 |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts The Company maintains allowances for doubtful accounts for estimated losses resulting from the inability of the Company’s customers to make required payments. A considerable amount of 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 doubtful accounts and occur only after all collection efforts have been exhausted. At December 31, 2017 and December 31, 2016, the allowance for doubtful accounts was $2,971 and $2,683, respectively. |
Long-Lived and Intangible Assets (including Goodwill) | Long-Lived and Intangible Assets (including Goodwill) Property, plant and equipment are stated at cost. Equipment under capital leases are stated at the present value of the minimum lease payments at the inception of the lease. Depreciation is calculated principally on the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized on a straight-line basis over the shorter of the lease term or the estimated useful life of the asset. The Company reviews the recoverability of its finite long-lived assets, including finite-lived intangible assets, whenever facts and circumstances indicate that the carrying amount may not be fully recoverable. For purposes of recognizing and measuring impairment, the Company evaluates long-lived assets other than goodwill based upon the lowest level of independent cash flows ascertainable to evaluate impairment. If the sum of the undiscounted future cash flows expected over the remaining asset life is less than the carrying value of the assets, the Company may recognize an impairment loss. The impairment related to long-lived assets is measured as the amount by which the carrying amount of the asset(s) exceeds the fair value of the asset(s). In the evaluation of the fair value and future benefits of finite long-lived assets attached to retail stores, the Company performs its cash flow analysis on a store-by-store Goodwill represents the excess of the purchase price of acquired companies over the estimated fair value of the net assets acquired. Goodwill and other intangibles with indefinite lives are not amortized, but are reviewed for impairment annually or more frequently if certain indicators arise. The Company evaluates the goodwill associated with its acquisitions, and other intangibles with indefinite lives, for impairment as of the first day of its fourth quarter based on current and projected performance. For purposes of testing goodwill for impairment, reporting units are determined by identifying individual components within the Company’s organization which constitute a business for which discrete financial information is available and is reviewed by management. Components within a segment are aggregated to the extent that they have similar economic characteristics. Based on this evaluation, the Company has determined that its operating segments, wholesale and retail, represent reporting units for the purposes of its goodwill impairment test. If it is concluded that it is more likely than not that the fair value of a reporting unit is less than its carrying value, the Company estimates the fair value of the reporting unit using a combination of a market approach and an income approach. If the carrying amount of a reporting unit exceeds its fair value, the excess, if any, of the fair value of the reporting unit over amounts allocable to the unit’s other assets and liabilities is the implied fair value of goodwill. If the carrying amount of a reporting unit’s goodwill exceeds the implied fair value of that goodwill, an impairment loss will be recognized in an amount equal to that excess. The fair value of a reporting unit refers to the amount at which the unit as a whole could be sold in a current transaction between willing parties. |
Deferred Financing Costs | Deferred Financing Costs Deferred financing costs are netted against amounts outstanding under the related debt instruments. They are amortized to interest expense over the lives of the instruments using the effective interest method. |
Deferred Rent and Rental Expenses | Deferred Rent and Rental Expenses The Company leases its retail stores under operating leases that generally have initial terms of ten years, with two five year renewal options. The Company’s leases may have early cancellation clauses, which permit the lease to be terminated if certain sales levels are not met in specific periods, and may provide for the payment of contingent rent based on a percentage of the store’s net sales. The Company’s lease agreements generally have defined escalating rent provisions, which are reported as a deferred rent liability and expensed on a straight-line basis over the term of the related lease, commencing with the date of possession. In addition, the Company may receive cash allowances from its landlords on certain properties, which are reported as deferred rent and amortized to rent expense over the term of the lease, also commencing with the date of possession. Retail’s deferred rent liability at December 31, 2017 and 2016 was $76,994 and $68,857, respectively. |
Equity Method Investments | Equity Method Investments The Company has an investment in Convergram Mexico, S. De R.L. De C.V., a joint venture distributing metallic balloons, principally in Mexico and Latin America. The Company accounts for its 49.9% investment in the joint venture using the equity method. Additionally, the Company has an investment in PD Retail Group Limited, a joint venture operating party goods stores in the United Kingdom (“U.K.”). The Company accounts for its 50% investment using the equity method. Also, during April 2017, the Company paid approximately $4,000 for a 28% ownership interest in Punchbowl, Inc., a provider of digital greeting cards and digital invitations. The Company is accounting for the investment under the equity method of accounting. The Company’s investments are included in other assets on the consolidated balance sheet and the results of the investees’ operations are included in other expense (income) in the consolidated statement of operations and comprehensive income (loss) (see Note 10). |
Insurance Accruals | Insurance Accruals The Company maintains certain self-insured workers’ compensation and general liability insurance plans. The Company estimates the required liability for claims under such plans based upon various assumptions, which include, but are not limited to, historical loss experience, projected loss development factors, actual payroll and other data. The required liability is also subject to adjustment in the future based upon changes in claims experience, including changes in the number of incidents (frequency) and changes in the ultimate cost per incident (severity). |
Revenue Recognition | Revenue Recognition Revenue from retail store operations is recognized at the point of sale. Retail e-commerce The transaction price for the overwhelming majority of the Company’s retail sales is based on either: 1) the item’s stated price or 2) the stated price adjusted for the impact of a coupon which can only be applied to such transaction. To the extent that the Company charges customers for freight costs on e-commerce Under the terms of its agreements with its franchisees, the Company provides both: 1) brand value (via significant advertising spend) and 2) support with respect to planograms, in exchange for a royalty fee that ranges from 4% to 6% of the franchisees’ sales. The Company records the royalty fees at the time that the franchisees’ sales are recorded. Additionally, although the Company anticipates that future franchise store openings will be limited, when a franchisee opens a new store, the Company receives and records a one-time one-time For most of the Company’s wholesale sales, revenue is recognized upon the Company’s shipment of the product as: 1) legal title transfers on such date and 2) the Company has a present right to payment at such time. Wholesale sales returns are not significant as the Company generally only accepts the return of goods that were shipped to the customer in error or that were damaged when received by the customer. Additionally, due to its extensive history operating as a leading party goods wholesaler, the Company has sufficient history with which to estimate future sales returns. In most cases, the determination of the transaction price is straight-forward as it is fixed based on the contract and/or purchase order. However, a limited number of customers receive volume-based rebates. Additionally, certain customers receive small discounts for early payment (generally 1% of the transaction price). Based on the business’ long history as a leading party goods wholesaler, the Company has sufficient history with which to estimate variable consideration for such volume-based rebates and early payment discounts. To the extent that the Company charges customers for freight costs, the Company records such amounts in revenue. The Company excludes all sales taxes and value-added taxes from revenue. The majority of the sales for the Company’s wholesale business are due within 30 to 120 days from the transfer of control of the product and substantially all of the sales are collected within a year from such transfer. Although most of the Company’s revenue transactions consist of fixed transaction prices and the transfer of control at either the point of sale (for retail) or when the product is shipped (for wholesale), certain transactions involve a limited number of judgments. For transactions for which control transfers to the customer when the freight carrier delivers the product to the customer, the Company estimates the date of such receipt based on historical shipping times. Additionally, the Company utilizes historical data to estimate sales returns, volume-based rebates and discounts for early payments by customers. Due to its extensive history operating as a leading party goods retailer and wholesaler, the Company has sufficient history with which to estimate such amounts. Revenues, and the related profit, on sales from the Company’s wholesale operations to its retail operations are eliminated in consolidation. |
Cost of Sales | Cost of Sales Cost of sales at wholesale reflects the production costs (i.e., raw materials, labor and overhead) of manufactured goods and the direct cost of purchased goods, inventory shrinkage at both retail and wholesale, inventory adjustments, inbound freight to the Company’s manufacturing and distribution facilities, distribution costs and outbound freight to transfer goods to the Company’s wholesale customers. At retail, cost of sales reflects the direct cost of goods purchased from third parties and the production or purchase costs of goods acquired from the Company’s wholesale operations. Retail cost of sales also includes inventory shrinkage, inventory adjustments, inbound freight, occupancy costs related to store operations, such as rent and common area maintenance, utilities and depreciation on assets, and all logistics costs (i.e., procurement, handling and distribution costs) associated with the Company’s e-commerce |
Retail Operating Expenses | Retail Operating Expenses Retail operating expenses include the costs and expenses associated with the operation of the Company’s retail stores, with the exception of occupancy costs included in cost of sales. Retail operating expenses principally consist of employee compensation and benefits, advertising, supplies expense and credit card and banking fees. |
Shipping and Handling | Shipping and Handling Outbound shipping costs billed to customers are included in net sales. The costs of shipping and handling incurred by the Company are included in cost of sales. |
Product Royalty Agreements | Product Royalty Agreements The Company enters into product royalty agreements that allow the Company to use licensed designs on certain of its products. These contracts require the Company to pay royalties, generally based on the sales of such product, and may require guaranteed minimum royalties, a portion of which may be paid in advance. The Company matches royalty expense with revenue by recording royalties at the time of sale, at the greater of the contractual rate or an effective rate calculated based on the guaranteed minimum royalty and the Company’s estimate of sales during the contract period. If a portion of the guaranteed minimum royalty is determined to be unrecoverable, the unrecoverable portion is charged to expense at that time. Guaranteed minimum royalties paid in advance are recorded in the consolidated balance sheets in either prepaid expenses and other current assets or other assets, depending on the nature of the royalties. |
Catalog Costs | Catalog Costs The Company expenses costs associated with the production of catalogs when incurred. |
Advertising | Advertising Advertising costs are expensed as incurred. Retail advertising expenses for the years ended December 31, 2017, December 31, 2016, and December 31, 2015 were $61,187, $63,528, and $62,495, respectively. |
Variable Interest Entities | Variable Interest Entities When determining whether a legal entity should be consolidated, the Company first determines whether it has a variable interest in the legal entity. If a variable interest exists, the Company determines whether the legal entity is a variable interest entity due to either: 1) a lack of sufficient equity to finance its activities, 2) the equity holders lacking the characteristics of a controlling financial interest or 3) the legal entity being structured with non-substantive 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. Although the Company currently only owns 30% of Kazzam’s equity, the Company has concluded that: a) Kazzam is a variable interest entity as it has insufficient equity at risk and b) the Company is its primary beneficiary. Therefore, the Company has consolidated Kazzam into the Company’s financial statements. As part of Ampology’s compensation for designing, developing and launching the exchange platform, Ampology received a 70% ownership interest in Kazzam. The 70% interest has been recorded as redeemable securities in the mezzanine of the Company’s consolidated balance sheet as, in the future, Ampology has the right to cause the Company to purchase the interest. On a recurring basis, the mezzanine liability is adjusted to the greater of: a) the interest’s carrying amount under Accounting Standards Codification (“ASC”) Topic 810, “Consolidation”, or b) the fair value of the interest. |
Art and Development Costs | Art and Development Costs Art and development costs are primarily internal costs that are not easily associated with specific designs, some of which may not reach commercial production. Accordingly, the Company expenses these costs as incurred. |
Derivative Financial Instruments | Derivative Financial Instruments ASC Topic 815, “Accounting for Derivative Instruments and Hedging Activities”, requires that all derivative financial instruments be recognized on the balance sheet at fair value and establishes criteria for both the designation and effectiveness of hedging activities. The Company uses derivatives in the management of interest rate and foreign currency exposure. ASC Topic 815 requires the Company to formally document the assets, liabilities or other transactions the Company designates as hedged items, the risk being hedged and the relationship between the hedged items and the hedging instruments. The Company must measure the effectiveness of the hedging relationship at the inception of the hedge and on an on-going If derivative financial instruments qualify as fair value hedges, the gain or loss on the instrument and the offsetting loss or gain on the hedged item attributable to the hedged risk are recognized in net income during the period of the change in fair values. For derivative financial instruments that qualify as cash flow hedges ( i.e i.e |
Income Taxes | Income Taxes Deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities (and operating loss and tax credit carryforwards) applying enacted statutory tax rates in effect for the years in which the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance when, in the judgment of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. |
Stock-Based Compensation | Stock-Based Compensation Accounting for stock-based compensation requires measurement of compensation cost for all stock-based awards at fair value on the date of grant and recognition of compensation expense over the service period for awards expected to vest. |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Accumulated other comprehensive loss consists of the Company’s foreign currency adjustments and the impact of interest rate swap and foreign exchange contracts that qualify as hedges (see Notes 18 and 19). |
Foreign Currency Transactions and Translation | Foreign Currency Transactions and Translation The functional currencies of the Company’s foreign operations are the local currencies in which they operate. Foreign currency exchange gains or losses resulting from receivables or payables in currencies other than the functional currencies generally are credited or charged to operations. The balance sheets of foreign subsidiaries are translated into U.S. dollars at the exchange rates in effect on the balance sheet date. The results of operations of foreign subsidiaries are translated into U.S. dollars at the average exchange rates effective for the periods presented. The differences from historical exchange rates are recorded as comprehensive income (loss) and are included as a component of accumulated other comprehensive loss. |
Earnings Per Share | Earnings Per Share Basic earnings per share are computed by dividing net income available for common stockholders 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. A reconciliation between basic and diluted income per share is as follows: Year Ended Year Ended Year Ended 2015 Net income attributable to Party City Holdco Inc.: $ 215,340 $ 117,477 $ 10,459 Adjustment to Kazzam liability (see above): (410 ) 0 0 Numerator for earnings per share: $ 214,930 $ 117,477 $ 10,459 Weighted average shares — Basic: 118,589,421 119,381,842 111,917,168 Effect of dilutive warrants: 0 0 0 Effect of dilutive stock options: 1,304,600 987,830 1,026,639 Weighted average shares — Diluted: 119,894,021 120,369,672 112,943,807 Net income per common share — Basic: $ 1.81 $ 0.98 $ 0.09 Net income per common share — Diluted: $ 1.79 $ 0.98 $ 0.09 During the years ended December 31, 2017, December 31, 2016 and December 31, 2015, 2,392,150 stock options, 2,371,876 stock options and 1,991,965 stock options, respectively, were excluded from the calculations of net income per common share — diluted as they were anti-dilutive. Additionally, during the years ended December 31, 2017, December 31, 2016 and December 31, 2015, 596,000 warrants, 0 warrants and 0 warrants, respectively, were excluded from the calculations of net income per common share — diluted as they were anti-dilutive. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In August 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2017-12, In November 2016, the FASB issued ASU 2016-18, In August 2016, the FASB issued ASU 2016-15, In March 2016, the FASB issued ASU 2016-09, In February 2016, the FASB issued ASU 2016-02, In January 2016, the FASB issued ASU 2016-01, In July 2015, the FASB issued ASU 2015-11, In May 2014, the FASB issued ASU 2014-09, |
Industry Segments | Industry Segments The Company has two identifiable business segments. The Wholesale segment designs, manufactures, contracts for manufacture and distributes party goods, including paper and plastic tableware, metallic and latex balloons, Halloween and other costumes, accessories, novelties and stationery throughout the world. The Retail segment operates specialty retail party supply stores in the United States and Canada, principally under the names Party City and Halloween City, and it operates e-commerce |
Fair Value Measurement | 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. |
Summary of Significant Accoun35
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Schedule of Reconciliation Between Basic and Diluted Income Per Share | A reconciliation between basic and diluted income per share is as follows: Year Ended Year Ended Year Ended 2015 Net income attributable to Party City Holdco Inc.: $ 215,340 $ 117,477 $ 10,459 Adjustment to Kazzam liability (see above): (410 ) 0 0 Numerator for earnings per share: $ 214,930 $ 117,477 $ 10,459 Weighted average shares — Basic: 118,589,421 119,381,842 111,917,168 Effect of dilutive warrants: 0 0 0 Effect of dilutive stock options: 1,304,600 987,830 1,026,639 Weighted average shares — Diluted: 119,894,021 120,369,672 112,943,807 Net income per common share — Basic: $ 1.81 $ 0.98 $ 0.09 Net income per common share — Diluted: $ 1.79 $ 0.98 $ 0.09 |
Inventories, Net (Tables)
Inventories, Net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consisted of the following: December 31, 2017 2016 Finished goods $ 562,809 $ 581,277 Raw materials 30,346 23,222 Work in process 10,911 9,369 $ 604,066 $ 613,868 |
Property, Plant and Equipment37
Property, Plant and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, Net | Property, plant and equipment, net consisted of the following: December 31, 2017 2016 Useful lives Machinery and equipment $ 187,937 $ 157,170 3-15 years Buildings 68,451 67,851 40 years Data processing 63,354 49,688 3-5 Leasehold improvements 120,146 109,218 1-10 Furniture and fixtures 177,309 163,539 5-10 Land 10,733 10,450 627,930 557,916 Less: accumulated depreciation (326,789 ) (265,012 ) $ 301,141 $ 292,904 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Schedule of Changes in Goodwill by Reporting Segment | For the years ended December 31, 2017 and December 31, 2016 goodwill changes, by reporting segment, were as follows: Year Ended Year Ended Wholesale segment: Beginning balance $ 491,859 $ 494,299 Granmark acquisition 13,241 0 Print Appeal acquisition 3,133 0 Other acquisitions 1,348 3,572 Foreign currency impact 4,365 (6,012 ) Ending balance 513,946 491,859 Retail segment: Beginning balance 1,080,709 1,068,216 Store acquisitions 23,025 12,869 Foreign currency impact 1,573 (376 ) Ending balance 1,105,307 1,080,709 Total ending balance, both segments $ 1,619,253 $ 1,572,568 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Identifiable Intangible Assets | The Company had the following other identifiable intangible assets: December 31, 2017 Cost Accumulated Net Useful lives Retail franchise licenses $ 81,600 $ 35,700 $ 45,900 4-19 years Customer lists and relationships 61,527 36,268 25,259 2-20 Copyrights and designs 29,030 27,406 1,624 5-7 Leasehold interests 16,850 14,229 2,621 1-17 Non-compete 500 200 300 5 years Total $ 189,507 $ 113,803 $ 75,704 December 31, 2016 Cost Accumulated Net Useful lives Retail franchise licenses $ 72,200 $ 27,600 $ 44,600 4-19 Customer lists and relationships 56,385 30,796 25,589 3-20 Copyrights and designs 29,030 24,454 4,576 5-7 Leasehold interests 15,556 14,140 1,416 1-11 Non-compete 500 100 400 5 years Total $ 173,671 $ 97,090 $ 76,581 |
Long-Term Obligations (Tables)
Long-Term Obligations (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Summary of Long-Term Obligations | Long-term obligations consisted of the following: December 31, 2017 2016 Senior secured term loan facility (“Term Loan Credit Agreement”) $ 1,196,505 $ 1,205,496 6.125% senior notes (“Senior Notes”) 345,368 344,544 Capital lease obligations 3,276 2,912 Total long-term obligations 1,545,149 1,552,952 Less: current portion (13,059 ) (13,348 ) Long-term obligations, excluding current portion $ 1,532,090 $ 1,539,604 |
Summary of Debt Instrument Redemption | On or after August 15, 2018, the Company may redeem the Senior Notes, in whole or in part, at the following (expressed as a percentage of the principal amount to be redeemed): Twelve-month period beginning on August 15, Percentage 2018 103.063 % 2019 101.531 % 2020 and thereafter 100.000 % |
Maturities of Long-Term Obligations | At December 31, 2017, maturities of long-term obligations consisted of the following: Long-Term Debt Capital Lease Totals 2018 $ 12,266 $ 793 $ 13,059 2019 12,266 716 12,982 2020 12,266 604 12,870 2021 12,266 800 13,066 2022 1,162,204 363 1,162,567 Thereafter 350,000 0 350,000 Long-term obligations $ 1,561,268 $ 3,276 $ 1,564,544 |
Capital Stock (Tables)
Capital Stock (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Summary Changes in Common Shares Outstanding | The changes in common shares outstanding during the three years ended December 31, 2015, December 31, 2016 and December 31, 2017 were as follows: Common Shares Outstanding at December 31, 2014 91,007,894 Adjustment to redeemable securities 3,088,630 Issuance of common stock 25,156,250 Exercise of stock options 5,600 Common Shares Outstanding at December 31, 2015 119,258,374 Exercise of stock options 257,520 Common Shares Outstanding at December 31, 2016 119,515,894 Exercise of stock options 243,775 Treasury stock purchases (23,379,567 ) Common Shares Outstanding at December 31, 2017 96,380,102 |
Other Expense (Income), net (Ta
Other Expense (Income), net (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text Block [Abstract] | |
Summary of Other Expense (Income), Net | Year Ended Year Ended Year Ended Other expense (income), net consists of the following: Undistributed (gain) loss in unconsolidated joint ventures $ (194 ) $ 314 $ 562 Foreign currency losses (gains) 466 (7,417 ) 3,691 Debt refinancings (a) 0 1,458 94,607 Management agreement termination fee (b) 0 0 30,697 Corporate development expenses 2,660 3,290 1,786 Other, net 1,694 345 (353 ) Other expense (income), net $ 4,626 $ (2,010 ) $ 130,990 (a) In August 2015, the Company refinanced its debt and recorded $79,010 of charges in other expense related to call premiums, third-party costs and the write-off write-off (b) In conjunction with the initial public offering, the Company paid a management agreement termination fee to affiliates of THL and Advent. See Note 14 for further discussion. |
Equity Incentive Plans (Tables)
Equity Incentive Plans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Summary of Changes in Outstanding Options | The following table summarizes the changes in outstanding stock options for the years ended December 31, 2015, December 31, 2016 and December 31, 2017. Options Average Average Fair Value of Grant Date Aggregate Weighted Average Remaining Outstanding at December 31, 2014 6,686,400 Granted 2,013,764 $ 17.97 $ 6.04 Exercised (5,600 ) 5.33 Forfeited (176,919 ) 7.36 Outstanding at December 31, 2015 8,517,645 8.28 $ 39,453 7.8 Granted 484,950 15.78 4.68 Exercised (257,520 ) 5.33 Forfeited (283,249 ) 10.05 Outstanding at December 31, 2016 8,461,826 8.74 46,214 6.9 Granted 101,444 14.38 4.46 Exercised (243,775 ) 5.33 Forfeited (294,734 ) 9.47 Outstanding at December 31, 2017 8,024,761 $ 8.89 $ 40,634 6.0 Exercisable at December 31, 2017 2,795,414 $ 9.07 $ 13,636 5.9 Expected to vest at December 31, 2017 (excluding performance-based options) 1,555,747 $ 16.95 $ (4,667 ) 7.7 |
Time Based Stock Options [Member] | |
Fair Value of Options Granted | The fair value of time-based options granted during the year ended December 31, 2017 was estimated on the grant date using a Black-Scholes option valuation model based on the assumptions in the following table: Expected dividend rate 0% Risk-free interest rate 1.79% to 2.22% Volatility 25.44% to 27.05% Expected option term 5.5 years – 6.5 years |
Performance Shares [Member] | |
Fair Value of Options Granted | 2017, 3,673,600 performance-based options were outstanding. Based on a Monte Carlo simulation and the following assumptions, the options have an average grant date fair value of $3.09 per option: Expected dividend rate 0% Risk-free interest rate 1.86% Volatility 52.00% Expected option term 5 years |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Summary of Domestic and Foreign Income Before Income Taxes | A summary of domestic and foreign income before income taxes and including noncontrolling interest follows: Year Ended 2017 Year Ended 2016 Year Ended 2015 Domestic $ 153,280 $ 152,800 $ 7,180 Foreign 34,864 33,914 10,688 Total $ 188,144 $ 186,714 $ 17,868 |
Summary of Income Tax (Benefit) Expense | The income tax (benefit) expense consisted of the following: Year Ended 2017 Year Ended 2016 Year Ended 2015 Current: Federal $ 61,890 $ 50,851 $ 8,137 State 6,267 8,121 2,652 Foreign 7,298 6,864 2,798 Total current expense 75,455 65,836 13,587 Deferred: Federal (101,774 ) 3,290 (6,710 ) State (796 ) (906 ) (1,086 ) Foreign (81 ) 1,017 1,618 Total deferred (benefit) expense (102,651 ) 3,401 (6,178 ) Income tax (benefit) expense $ (27,196 ) $ 69,237 $ 7,409 |
Summary of Deferred Income Tax Assets and Liabilities | Deferred income tax assets and liabilities consisted of the following: December 31, 2017 2016 Deferred income tax assets: Inventory valuation $ 7,064 $ 10,138 Allowance for doubtful accounts 746 893 Accrued liabilities 8,130 10,402 Equity based compensation 3,145 3,236 Federal tax loss carryforwards 960 2,715 State tax loss carryforwards 1,726 1,070 Foreign tax loss carryforwards 14,151 13,992 Foreign tax credit carryforwards 6,412 1,418 Deferred rent 9,867 11,816 Other 166 509 Deferred income tax assets before valuation allowances 52,367 56,189 Less: valuation allowances (24,073 ) (17,331 ) Deferred income tax assets, net $ 28,294 $ 38,858 Deferred income tax liabilities: Property, plant and equipment $ 13,855 $ 24,055 Intangible assets 145,066 218,046 Amortization of goodwill and other assets 42,297 61,163 Foreign earnings expected to be repatriated 586 10,954 Other 1,176 2,655 Deferred income tax liabilities $ 202,980 $ 316,873 |
Summary of Difference Between the Effective Income Tax Rate and the U.S. Statutory Income Tax Rate | The difference between the Company’s effective income tax rate and the U.S. statutory income tax rate is as follows: Year Ended Year Ended Year Ended Tax provision at U.S. statutory income tax rate 35.0 % 35.0 % 35.0 % State income tax, net of federal income tax 1.9 2.5 5.7 Domestic production activities deduction (1.4 ) (1.0 ) (5.1 ) Contingent consideration adjustment 0.2 (0.1 ) (6.0 ) Work Opportunity Tax Credit (0.4 ) (0.3 ) (3.2 ) Valuation allowances 2.1 0.5 21.7 Foreign earnings (1.7 ) 2.3 9.1 U.S. — foreign rate differential (1.9 ) (2.4 ) (13.7 ) Transition Tax on unremitted foreign earnings, net 0.6 0.0 0.0 Effect of the Act on Federal deferred income tax assets and liabilities (48.4 ) 0.0 0.0 Other (0.5 ) 0.6 (2.0 ) Effective income tax rate (14.5 )% 37.1 % 41.5 % |
Summary of Activity of Company's Gross Unrecognized Tax Benefits | The following table summarizes the activity related to the Company’s gross unrecognized tax benefits: Year Ended Year Ended Year Ended 2015 Balance as of beginning of period $ 913 $ 765 $ 798 Increases related to current period tax positions 100 444 130 (Decreases) increases related to prior period tax positions (158 ) 339 0 Decreases related to settlements 0 (635 ) (92 ) Decreases related to lapsing of statutes of limitations 0 0 (71 ) Balance as of end of period $ 855 $ 913 $ 765 |
Commitments, Contingencies an45
Commitments, Contingencies and Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Summary of Future Minimum Lease Payments under all Operating Leases | At December 31, 2017, future minimum lease payments under all operating leases consisted of the following: Future Minimum 2018 $ 186,278 2019 161,996 2020 146,603 2021 132,217 2022 115,502 Thereafter 310,992 $ 1,053,588 |
Summary of Future Minimum Product Royalties | At December 31, 2017, the Company’s commitment to pay future minimum product royalties was as follows: Future Minimum 2018 $ 29,879 2019 18,982 2020 6,992 2021 150 2022 0 Thereafter 0 $ 56,003 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Company's Industry Segment Data | The Company’s industry segment data for the years ended December 31, 2017, December 31, 2016, and December 31, 2015 are as follows: Wholesale Retail Consolidated Year Ended December 31, 2017 Revenues: Net sales $ 1,260,089 $ 1,728,589 $ 2,988,678 Royalties and franchise fees 0 13,583 13,583 Total revenues 1,260,089 1,742,172 3,002,261 Eliminations (630,692 ) 0 (630,692 ) Net revenues $ 629,397 $ 1,742,172 $ 2,371,569 Income from operations $ 68,130 $ 212,006 $ 280,136 Interest expense, net 87,366 Other expense, net 4,626 Income before income taxes $ 188,144 Depreciation and amortization $ 30,520 $ 54,648 $ 85,168 Capital expenditures $ 32,490 $ 34,480 $ 66,970 Total assets $ 1,050,620 $ 2,404,136 $ 3,454,756 Wholesale Retail Consolidated Year Ended December 31, 2016 Revenues: Net sales $ 1,252,218 $ 1,641,068 $ 2,893,286 Royalties and franchise fees 0 17,005 17,005 Total revenues 1,252,218 1,658,073 2,910,291 Eliminations (626,900 ) 0 (626,900 ) Net revenues $ 625,318 $ 1,658,073 $ 2,283,391 Income from operations $ 91,920 $ 182,164 $ 274,084 Interest expense, net 89,380 Other income, net (2,010 ) Income before income taxes $ 186,714 Depreciation and amortization $ 29,695 $ 53,935 $ 83,630 Capital expenditures $ 26,854 $ 55,094 $ 81,948 Total assets $ 1,004,599 $ 2,389,379 $ 3,393,978 Wholesale Retail Consolidated Year Ended December 31, 2015 Revenues: Net sales $ 1,226,989 $ 1,621,524 $ 2,848,513 Royalties and franchise fees 0 19,411 19,411 Total revenues 1,226,989 1,640,935 2,867,924 Eliminations (573,391 ) 0 (573,391 ) Net revenues $ 653,598 $ 1,640,935 $ 2,294,533 Income from operations $ 85,728 $ 186,491 $ 272,219 Interest expense, net 123,361 Other expense, net 130,990 Income before income taxes $ 17,868 Depreciation and amortization $ 29,352 $ 51,163 $ 80,515 Capital expenditures $ 18,849 $ 59,976 $ 78,825 |
Schedule of Company's Industry Geographic Segments | The Company’s geographic area data follows: Domestic Foreign Eliminations Consolidated Year Ended December 31, 2017 Revenues: Net sales to unaffiliated customers $ 1,962,697 $ 395,289 $ 0 $ 2,357,986 Net sales between geographic areas 54,268 64,585 (118,853 ) 0 Net sales 2,016,965 459,874 (118,853 ) 2,357,986 Royalties and franchise fees 13,583 0 0 13,583 Total revenues $ 2,030,548 $ 459,874 $ (118,853 ) $ 2,371,569 Income from operations $ 252,270 $ 27,866 $ 0 $ 280,136 Interest expense, net 87,366 Other expense, net 4,626 Income before income taxes $ 188,144 Depreciation and amortization $ 76,970 $ 8,198 $ 85,168 Total long-lived assets (excluding goodwill, trade names and other intangible assets, net) $ 277,791 $ 36,174 $ 313,965 Total assets $ 3,131,256 $ 323,500 $ 0 $ 3,454,756 Domestic Foreign Eliminations Consolidated Year Ended December 31, 2016 Revenues: Net sales to unaffiliated customers $ 1,917,158 $ 349,228 $ 0 $ 2,266,386 Net sales between geographic areas 51,916 80,776 (132,692 ) 0 Net sales 1,969,074 430,004 (132,692 ) 2,266,386 Royalties and franchise fees 17,005 0 0 17,005 Total revenues $ 1,986,079 $ 430,004 $ (132,692 ) $ 2,283,391 Income from operations $ 257,774 $ 16,310 $ 0 $ 274,084 Interest expense, net 89,380 Other income, net (2,010 ) Income before income taxes $ 186,714 Depreciation and amortization $ 77,176 $ 6,454 $ 83,630 Total long-lived assets (excluding goodwill, trade names and other intangible assets, net) $ 269,047 $ 28,359 $ 297,406 Total assets $ 3,147,003 $ 246,975 $ 0 $ 3,393,978 Domestic Foreign Eliminations Consolidated Year Ended December 31, 2015 Revenues: Net sales to unaffiliated customers $ 1,937,793 $ 337,329 $ 0 $ 2,275,122 Net sales between geographic areas 47,752 74,974 (122,726 ) 0 Net sales 1,985,545 412,303 (122,726 ) 2,275,122 Royalties and franchise fees 19,411 0 0 19,411 Total revenues $ 2,004,956 $ 412,303 $ (122,726 ) $ 2,294,533 Income from operations $ 267,209 $ 5,010 $ 0 $ 272,219 Interest expense, net 123,361 Other expense, net 130,990 Income before income taxes $ 17,868 Depreciation and amortization $ 74,849 $ 5,666 $ 80,515 |
Quarterly Results (Tables)
Quarterly Results (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Historical Revenues, Gross Profit, Income (Loss) from Operations | The following table sets forth our historical revenues, gross profit, income (loss) from operations, net income (loss), net income (loss) attributable to Party City Holdco Inc., net income (loss) per common share – Basic, and net income (loss) per common share—Diluted for each of the following periods: For the Three Months Ended, 2017: March 31, June 30, September 30, December 31, Revenues: Net sales $ 473,963 $ 541,653 $ 557,350 $ 785,020 Royalties and franchise fees 3,036 3,225 2,759 4,563 Gross profit 175,244 219,753 199,827 367,883 Income from operations 14,671 60,699 37,388 167,378 Net (loss) income (4,683 ) 24,982 10,084 184,957 (a) Net (loss) income per common share—Basic $ (0.04 ) $ 0.21 $ 0.08 $ 1.59 (a) Net (loss) income per common share—Diluted $ (0.04 ) $ 0.21 $ 0.08 $ 1.58 (a) For the Three Months Ended, 2016: March 31, June 30, September 30, December 31, Revenues: Net sales $ 454,286 $ 515,426 $ 553,382 $ 743,292 Royalties and franchise fees 3,454 3,987 3,568 5,996 Gross profit 166,519 207,561 196,720 345,199 Income from operations 19,556 58,480 36,918 159,130 Net (loss) income (394 ) 22,515 10,180 85,176 Net (loss) income per common share—Basic $ (0.00 ) $ 0.19 $ 0.09 $ 0.71 Net (loss) income per common share—Diluted $ (0.00 ) $ 0.19 $ 0.08 $ 0.71 (a) On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (“the Act”) was signed into law. The Act significantly changed U.S. tax law, including lowering the U.S. corporate income tax rate from 35% to 21%, effective January 1, 2018, and implementing a one-time non-U.S. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Summary of Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table shows assets and liabilities as of December 31, 2017 that are measured at fair value on a recurring basis: Level 1 Level 2 Level 3 Total as of Derivative assets $ 0 $ 95 $ 0 $ 95 Derivative liabilities 0 99 0 99 Kazzam liability 0 0 3,590 3,590 Punchbowl put liability 0 0 2,122 2,122 Granmark noncontrolling interest liability 0 0 2,874 2,874 Print Appeal noncontrolling interest liability 0 0 3,063 3,063 The following table shows assets and liabilities as of December 31, 2016 that are measured at fair value on a recurring basis: Level 1 Level 2 Level 3 Total as of Derivative assets $ 0 $ 697 $ 0 $ 697 Derivative liabilities 0 215 0 215 Noncontrolling interests liabilities 0 0 0 0 |
Summary of Carrying Amount and Fair Value | The carrying amounts and fair values of borrowings under the Term Loan Credit Agreement and the Senior Notes as of December 31, 2017 are as follows: Carrying Amount Fair Value Term Loan Credit Agreement $ 1,196,505 $ 1,217,324 Senior Notes 345,368 362,250 |
Derivative Financial Instrume49
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Fair Values of Derivatives | The following table displays the fair values of the Company’s derivatives at December 31, 2017 and December 31, 2016: Derivative Assets Derivative Liabilities Balance Fair Balance Fair Balance Fair Balance Fair Derivative Instrument December 31, 2017 December 31, 2016 December 31, 2017 December 31, 2016 Foreign Exchange Contracts (a ) PP $ 95 (a ) PP $ 697 (b ) AE $ 99 (b ) AE $ 215 (a) PP = Prepaid expenses and other current assets (b) AE = Accrued expenses |
Schedule of Notional Amounts of Derivatives | The following table displays the notional amounts of the Company’s derivatives at December 31, 2017 and December 31, 2016: Derivative Instrument December 31, December 31, Foreign Exchange Contracts $ 21,672 $ 22,502 |
Changes in Accumulated Other 50
Changes in Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Loss | The changes in accumulated other comprehensive loss attributable to Party City Holdco Inc. consisted of the following: Year Ended December 31, 2017 Foreign Impact of Total, Net Balance at December 31, 2016 $ (53,171 ) $ 932 $ (52,239 ) Other comprehensive income (loss) before reclassifications, net of income tax 17,561 (1,044 ) 16,517 Amounts reclassified from accumulated other comprehensive loss to the consolidated statement of operations and comprehensive income, net of income tax 0 (96 ) (96 ) Net current-period other comprehensive income (loss) 17,561 (1,140 ) 16,421 Balance at December 31, 2017 $ (35,610 ) $ (208 ) $ (35,818 ) Year Ended December 31, 2016 Foreign Impact of Total, Net Balance at December 31, 2015 $ (33,401 ) $ 611 $ (32,790 ) Other comprehensive (loss) income before reclassifications, net of income tax (19,770 ) 1,080 (18,690 ) Amounts reclassified from accumulated other comprehensive loss to the consolidated statement of operations and comprehensive income, net of income tax 0 (759 ) (759 ) Net current-period other comprehensive (loss) income (19,770 ) 321 (19,449 ) Balance at December 31, 2016 $ (53,171 ) $ 932 $ (52,239 ) Year Ended December 31, 2015 Foreign Impact of Total, Net Balance at December 31, 2014 $ (12,969 ) $ 234 $ (12,735 ) Other comprehensive (loss) income before reclassifications, net of income tax (20,432 ) 675 (19,757 ) Amounts reclassified from accumulated other comprehensive loss to the consolidated statement of operations and comprehensive loss, net of income tax 0 (298 ) (298 ) Net current-period other comprehensive (loss) income (20,432 ) 377 (20,055 ) Balance at December 31, 2015 $ (33,401 ) $ 611 $ (32,790 ) |
Organization, Description of 51
Organization, Description of Business and Basis of Presentation - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2017Store | |
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 specialty retail party supply stores | 900 |
Summary of Significant Accoun52
Summary of Significant Accounting Policies - Additional Information (Detail) $ in Thousands | Jan. 01, 2018USD ($) | Apr. 30, 2017USD ($) | Dec. 31, 2017USD ($)Leaseshares | Dec. 31, 2016USD ($)shares | Dec. 31, 2015USD ($)shares |
Significant Accounting Policies [Line Items] | |||||
Allowance for doubtful accounts | $ 2,971 | $ 2,683 | |||
Operating lease initial term | 10 years | ||||
Operating lease renewal period | 5 years | ||||
Number of operating lease renewals options | Lease | 2 | ||||
Deferred rent liability | $ 76,994 | 68,857 | |||
Percentage of discounts for early payment on transaction price | 1.00% | ||||
Retail advertising expenses | $ 61,187 | $ 63,528 | $ 62,495 | ||
Kazzam LLC [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Equity method investment percentage in joint venture | 30.00% | ||||
Customer Payments [Member] | Subsequent Event [Member] | Accounting Standards Update 2014-09 [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Increase decrease in retained earnings | $ 46 | ||||
Metallic Balloon Sales [Member] | Subsequent Event [Member] | Accounting Standards Update 2014-09 [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Increase decrease in retained earnings | 8 | ||||
Discount Sale [Member] | Subsequent Event [Member] | Accounting Standards Update 2014-09 [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Increase decrease in retained earnings | $ 40 | ||||
Punchbowl Inc [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Equity method investment percentage in joint venture | 28.00% | 28.00% | |||
Payment for equity method investment | $ 4,000 | ||||
PD Retail Group Limited [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Equity method investment percentage in joint venture | 50.00% | ||||
Variable Interest Entity, Not Primary Beneficiary [Member] | Ampology [Member] | Kazzam LLC [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Variable interest entity ownership percentage | 70.00% | ||||
Employee Stock Option [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Antidilutive securities excluded from calculation of earnings per share | shares | 2,392,150 | 2,371,876 | 1,991,965 | ||
Warrant [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Antidilutive securities excluded from calculation of earnings per share | shares | 596,000 | 0 | 0 | ||
Convergram Mexico, S. De R.L. De C.V. [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Equity method investment percentage in joint venture | 49.90% | ||||
Minimum [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Retail operations period of fiscal year | 364 days | ||||
Retail operations period of fiscal quarter | 91 days | ||||
Percentage of royalty revenue recognized | 4.00% | ||||
Wholesale business due period | 30 days | ||||
Maximum [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Retail operations period of fiscal year | 371 days | ||||
Retail operations period of fiscal quarter | 98 days | ||||
Percentage of royalty revenue recognized | 6.00% | ||||
Wholesale business due period | 120 days |
Summary of Significant Accoun53
Summary of Significant Accounting Policies - Schedule of Reconciliation Between Basic and Diluted Income Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Dilutive Securities Included And Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||
Net income attributable to Party City Holdco Inc.: | $ 215,340 | $ 117,477 | $ 10,459 | ||||||||
Numerator for earnings per share: | $ 214,930 | $ 117,477 | $ 10,459 | ||||||||
Weighted average shares - Basic: | 118,589,421 | 119,381,842 | 111,917,168 | ||||||||
Effect of dilutive warrants: | 0 | 0 | 0 | ||||||||
Effect of dilutive stock options: | 1,304,600 | 987,830 | 1,026,639 | ||||||||
Weighted average shares - Diluted: | 119,894,021 | 120,369,672 | 112,943,807 | ||||||||
Net income per common share - Basic: | $ 1.59 | $ 0.08 | $ 0.21 | $ (0.04) | $ 0.71 | $ 0.09 | $ 0.19 | $ 0 | $ 1.81 | $ 0.98 | $ 0.09 |
Net income per common share - Diluted: | $ 1.58 | $ 0.08 | $ 0.21 | $ (0.04) | $ 0.71 | $ 0.08 | $ 0.19 | $ 0 | $ 1.79 | $ 0.98 | $ 0.09 |
Kazzam LLC [Member] | Primary Beneficiary [Member] | |||||||||||
Dilutive Securities Included And Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||
Adjustment to Kazzam liability (see above): | $ (410) | $ 0 | $ 0 |
Inventories, Net - Inventories
Inventories, Net - Inventories (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 562,809 | $ 581,277 |
Raw materials | 30,346 | 23,222 |
Work in process | 10,911 | 9,369 |
Inventories, net | $ 604,066 | $ 613,868 |
Property, Plant and Equipment55
Property, Plant and Equipment, Net - Property, Plant and Equipment, Net (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment gross | $ 627,930 | $ 557,916 |
Less: accumulated depreciation | (326,789) | (265,012) |
Property plant and equipment, net | 301,141 | 292,904 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment gross | 187,937 | 157,170 |
Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment gross | $ 68,451 | 67,851 |
Useful lives | 40 years | |
Data Processing [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment gross | $ 63,354 | 49,688 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment gross | 120,146 | 109,218 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment gross | 177,309 | 163,539 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment gross | $ 10,733 | $ 10,450 |
Minimum [Member] | Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful lives | 3 years | |
Minimum [Member] | Data Processing [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful lives | 3 years | |
Minimum [Member] | Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful lives | 1 year | |
Minimum [Member] | Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful lives | 5 years | |
Maximum [Member] | Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful lives | 15 years | |
Maximum [Member] | Data Processing [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful lives | 5 years | |
Maximum [Member] | Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful lives | 10 years | |
Maximum [Member] | Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful lives | 10 years |
Property, Plant and Equipment56
Property, Plant and Equipment, Net - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property Plant and Equipment Useful Life and Values [Abstract] | |||
Depreciation expense related to property, plant and equipment, including assets under capital leases | $ 68,209 | $ 66,383 | $ 61,630 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) $ in Thousands | 1 Months Ended | 12 Months Ended | |||||
Jul. 31, 2017USD ($) | Apr. 30, 2017USD ($) | Mar. 31, 2017USD ($)StoreFranchised_Stores | Jan. 31, 2017USD ($)StoreFranchised_Stores | Dec. 31, 2017USD ($)Stores | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Business Acquisition [Line Items] | |||||||
Consideration paid for acquisition | $ 74,710 | $ 31,820 | $ 22,615 | ||||
Deferred tax liabilities | 202,980 | 316,873 | |||||
Deferred tax assets | $ 52,367 | $ 56,189 | |||||
Punchbowl Inc [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Payment for equity method investment | $ 4,000 | ||||||
Equity method investment, ownership percentage | 28.00% | 28.00% | |||||
Louisiana and Alabama [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Number of franchise stores acquired | Franchised_Stores | 18 | ||||||
Total consideration amount | $ 16,000 | ||||||
Fair value inventories acquired | 7,600 | ||||||
Fair value property, plant and equipment acquired | 2,000 | ||||||
Fair value intangible asset acquired | 3,900 | ||||||
Fair value liability due to unfavorable leases conditions | $ 1,400 | ||||||
Number of corporate-owned stores | Store | 700 | ||||||
Oklahoma [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Consideration paid for acquisition | $ 6,000 | ||||||
Number of party stores acquired | Stores | 7 | ||||||
Granmark [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Fair value inventories acquired | $ 3,300 | ||||||
Fair value property, plant and equipment acquired | $ 3,100 | ||||||
Business combination, acquisition percentage | 85.00% | 85.00% | |||||
Consideration paid for acquisition | $ 22,000 | ||||||
Business combination, percentage of remaining interest | 15.00% | 15.00% | |||||
Business combination, cash acquired | $ 5,600 | ||||||
Liability recorded for the estimated purchase price of remaining interest to be acquired | $ 2,874 | ||||||
Fair value accounts receivable acquired | 4,600 | ||||||
Fair value other current assets acquired | 900 | ||||||
Fair value accounts payable assumed | 1,500 | ||||||
Fair value accrued expenses assumed | 2,700 | ||||||
Fair value loans and notes payable assumed | 6,500 | ||||||
Deferred tax liabilities | $ 800 | ||||||
Granmark [Member] | Minimum [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Business combination, period to acquire remaining interest | 3 years | 3 years | |||||
Granmark [Member] | Maximum [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Business combination, period to acquire remaining interest | 5 years | 5 years | |||||
Granmark [Member] | Customer Lists [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Fair value intangible asset acquired | $ 4,700 | ||||||
Granmark [Member] | Trade Name [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Fair value intangible asset acquired | $ 900 | ||||||
North Carolina and South Carolina [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Number of franchise stores acquired | Franchised_Stores | 18 | ||||||
Total consideration amount | $ 32,000 | ||||||
Fair value inventories acquired | 7,700 | ||||||
Fair value property, plant and equipment acquired | 500 | ||||||
Fair value intangible asset acquired | 5,500 | ||||||
Fair value liability due to unfavorable leases conditions | $ 300 | ||||||
Number of corporate-owned stores | Store | 700 | ||||||
Deferred tax assets | $ 800 | ||||||
Print Appeal Inc [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Business combination, acquisition percentage | 60.00% | 60.00% | |||||
Consideration paid for acquisition | $ 3,000 | ||||||
Business combination, percentage of remaining interest | 40.00% | 40.00% | |||||
Business combination, period to acquire remaining interest | 6 years | ||||||
Liability recorded for the estimated purchase price of remaining interest to be acquired | $ 3,063 | ||||||
Print Appeal Inc [Member] | Minimum [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Business combination, period to acquire remaining interest | 4 years | ||||||
Print Appeal Inc [Member] | Maximum [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Business combination, period to acquire remaining interest | 6 years |
Acquisitions - Schedule of Chan
Acquisitions - Schedule of Changes in Goodwill by Reporting Segment (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule Of Goodwill By Segment [Line Items] | ||
Beginning balance | $ 1,572,568 | |
Ending balance | 1,619,253 | $ 1,572,568 |
Wholesale Segment [Member] | ||
Schedule Of Goodwill By Segment [Line Items] | ||
Beginning balance | 491,859 | 494,299 |
Foreign currency impact | 4,365 | (6,012) |
Ending balance | 513,946 | 491,859 |
Wholesale Segment [Member] | Granmark [Member] | ||
Schedule Of Goodwill By Segment [Line Items] | ||
Business acquisition | 13,241 | 0 |
Wholesale Segment [Member] | Print Appeal Inc [Member] | ||
Schedule Of Goodwill By Segment [Line Items] | ||
Business acquisition | 3,133 | 0 |
Wholesale Segment [Member] | Other Acquisitions [Member] | ||
Schedule Of Goodwill By Segment [Line Items] | ||
Business acquisition | 1,348 | 3,572 |
Retail Segment [Member] | ||
Schedule Of Goodwill By Segment [Line Items] | ||
Beginning balance | 1,080,709 | 1,068,216 |
Foreign currency impact | 1,573 | (376) |
Ending balance | 1,105,307 | 1,080,709 |
Retail Segment [Member] | Store Acquisition [Member] | ||
Schedule Of Goodwill By Segment [Line Items] | ||
Business acquisition | $ 23,025 | $ 12,869 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Identifiable Intangible Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | ||
Cost | $ 189,507 | $ 173,671 |
Accumulated Amortization | 113,803 | 97,090 |
Net Carrying Value | 75,704 | 76,581 |
Retail Franchise Licenses [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 81,600 | 72,200 |
Accumulated Amortization | 35,700 | 27,600 |
Net Carrying Value | 45,900 | 44,600 |
Customer Lists and Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 61,527 | 56,385 |
Accumulated Amortization | 36,268 | 30,796 |
Net Carrying Value | 25,259 | 25,589 |
Copyrights and Designs [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 29,030 | 29,030 |
Accumulated Amortization | 27,406 | 24,454 |
Net Carrying Value | 1,624 | 4,576 |
Leasehold Interests [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 16,850 | 15,556 |
Accumulated Amortization | 14,229 | 14,140 |
Net Carrying Value | 2,621 | 1,416 |
Non-compete Agreements [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 500 | 500 |
Accumulated Amortization | 200 | 100 |
Net Carrying Value | $ 300 | $ 400 |
Useful lives | 5 years | 5 years |
Minimum [Member] | Retail Franchise Licenses [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful lives | 4 years | 4 years |
Minimum [Member] | Customer Lists and Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful lives | 2 years | 3 years |
Minimum [Member] | Copyrights and Designs [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful lives | 5 years | 5 years |
Minimum [Member] | Leasehold Interests [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful lives | 1 year | 1 year |
Maximum [Member] | Retail Franchise Licenses [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful lives | 19 years | 19 years |
Maximum [Member] | Customer Lists and Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful lives | 20 years | 20 years |
Maximum [Member] | Copyrights and Designs [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful lives | 7 years | 7 years |
Maximum [Member] | Leasehold Interests [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful lives | 17 years | 11 years |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Intangible Liability Disclosure [Abstract] | |||
Amortization expense for finite-lived intangible assets | $ 16,959 | $ 17,247 | $ 18,885 |
Amortization expense for next twelve months | 14,239 | ||
Amortization expense for two year | 12,987 | ||
Amortization expense for three year | 10,043 | ||
Amortization expense for four year | 8,461 | ||
Amortization expense for five year | $ 6,034 |
Loans and Notes Payable - ABL F
Loans and Notes Payable - ABL Facility - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2017USD ($)OptionPlan | Dec. 31, 2016USD ($) | |
Debt Instrument [Line Items] | ||
Line of credit facility, amount outstanding | $ 286,291,000 | $ 120,138,000 |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Line of credit facility, amount outstanding | $ 286,250,000 | |
Interest rates | 4.63% | |
Outstanding letter of credit | $ 26,328,000 | |
Line of credit facility, remaining borrowing capacity | 171,955,000 | |
ABL Facility [Member] | ||
Debt Instrument [Line Items] | ||
Unamortized financing costs | 2,210,000 | |
ABL Facility [Member] | Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Credit facility current borrowing capacity | 540,000,000 | |
Credit facility borrowing maximum capacity | 640,000,000 | |
Letters of credit outstanding maximum under our ABL facility | $ 50,000,000 | |
Debt instrument maturity date | Aug. 19, 2020 | |
Number of pricing options | OptionPlan | 2 | |
Commitment fee percentage | 0.25% | |
Percentage applied to aggregate commitments and borrowing base | 10.00% | |
Applicability of fixed charge coverage ratio, description | PCHI must comply with a fixed charge coverage ratio if excess availability under the ABL Facility on any day is less than the greater of (a) 10% of the lesser of the aggregate commitments and the then borrowing base under the ABL Facility and (b) $40,000. | |
Line of credit facility, excess availability | $ 40,000,000 | |
ABL Facility [Member] | Revolving Credit Facility [Member] | Alternate Base Interest Rate Loans [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate description | (i) an alternate base interest rate (“ABR”) equal to the greater of (a) the prime rate, (b) the federal funds rate plus 0.5% or (c) the LIBOR rate plus 1%, in each case, on the date of such borrowing | |
ABL Facility [Member] | Revolving Credit Facility [Member] | Alternate Base Interest Rate Loans [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 0.25% | |
ABL Facility [Member] | Revolving Credit Facility [Member] | Alternate Base Interest Rate Loans [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 0.50% | |
ABL Facility [Member] | Revolving Credit Facility [Member] | Federal Fund Rate [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 0.50% | |
ABL Facility [Member] | Revolving Credit Facility [Member] | LIBOR [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.00% | |
ABL Facility [Member] | Revolving Credit Facility [Member] | LIBOR Based Loans [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate description | (ii) a LIBOR based interest rate, in each case plus an applicable margin. | |
ABL Facility [Member] | Revolving Credit Facility [Member] | LIBOR Based Loans [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.25% | |
ABL Facility [Member] | Revolving Credit Facility [Member] | LIBOR Based Loans [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.50% |
Loans and Notes Payable - Other
Loans and Notes Payable - Other Credit Agreements - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Line of credit facility, amount outstanding | $ 286,291 | $ 120,138 |
Foreign Facilities [Member] | ||
Debt Instrument [Line Items] | ||
Line of credit facility, amount outstanding | $ 2,251 | $ 1,162 |
Long-Term Obligations - Summary
Long-Term Obligations - Summary of Long-Term Obligations (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Total long-term obligations | $ 1,545,149 | $ 1,552,952 |
Less: current portion | (13,059) | (13,348) |
Long-term obligations, excluding current portion | 1,532,090 | 1,539,604 |
Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term obligations | 345,368 | 344,544 |
Capital Lease Obligations [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term obligations | 3,276 | 2,912 |
Term Loan Credit Agreement [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term obligations | 1,211,268 | |
Term Loan Credit Agreement [Member] | Senior Secured Term Loan Facility [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term obligations | $ 1,196,505 | $ 1,205,496 |
Long-Term Obligations - Summa64
Long-Term Obligations - Summary of Long-Term Obligations (Parenthetical) (Detail) | Dec. 31, 2017 | Dec. 31, 2016 |
Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Notes issued rate | 6.125% | 6.125% |
Long-Term Obligations - Term Lo
Long-Term Obligations - Term Loan Credit Agreement - Additional Information (Detail) $ in Thousands | Oct. 31, 2016USD ($)OptionPlan | Feb. 28, 2018 | Oct. 31, 2016USD ($)OptionPlan | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) |
Debt Instrument [Line Items] | |||||
Outstanding principal amount of term loans | $ 1,545,149 | $ 1,552,952 | |||
Term Loan Credit Agreement [Member] | |||||
Debt Instrument [Line Items] | |||||
Percentage of net cash proceeds above sale of assets subject to debt mandatory prepayment | 100.00% | 100.00% | 100.00% | ||
Percentage of net cash proceeds of incurrence of debt subject to debt mandatory prepayment | 100.00% | 100.00% | 100.00% | ||
Percentage excess cash flow debt mandatory prepayment subject to leverage ratio | 50.00% | 50.00% | 50.00% | ||
Leverage ratio Above that Fifty percentage of Excess Cash Flow as defined in the New Term Loan Credit Agreement | 3.50 | 3.50 | 3.50 | ||
Leverage ratio below that zero percentage of Excess Cash Flow as defined in the New Term Loan Credit Agreement | 2.50 | 2.50 | |||
Outstanding principal amount of term loans | $ 1,211,268 | ||||
Original issuance discount, call premium and deferred financing costs | $ 14,763 | ||||
Interest rates | 4.46% | ||||
Term Loan Credit Agreement [Member] | Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Leverage ratio below that Twenty Five percentage of Excess Cash Flow as defined in the New Term Loan Credit Agreement | 3.50 | 3.50 | |||
Reduction in percentage of excess cash flow debt mandatory prepayment subject to leverage ratio | 25.00% | 25.00% | 25.00% | ||
Term Loan Credit Agreement [Member] | Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Leverage ratio below that Twenty Five percentage of Excess Cash Flow as defined in the New Term Loan Credit Agreement | 1 | 1 | |||
Reduction in percentage of excess cash flow debt mandatory prepayment subject to leverage ratio | 0.00% | 0.00% | 0.00% | ||
Term Loan Credit Agreement [Member] | Secured Debt [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility maximum borrowing capacity | $ 100,000 | $ 100,000 | |||
Interest rate description | The applicable margin for ABR borrowings was lowered from 2.25% to 2.00% and the applicable margin for LIBOR borrowings was lowered from 3.25% to 3.00%. Additionally, the LIBOR floor was lowered from 1.00% to 0.75%. | ||||
Number of pricing options | OptionPlan | 2 | 2 | |||
Minimum adjustment rate of LIBOR | 1.75% | ||||
Decreased LIBOR floor rate | 0.75% | ||||
Credit facility maturity date | Aug. 19, 2022 | ||||
Term loans repayment, quarterly installment percentage | 0.25% | ||||
Term Loan Credit Agreement [Member] | Secured Debt [Member] | Maximum [Member] | Subsequent Event [Member] | |||||
Debt Instrument [Line Items] | |||||
Leverage ratio below that Twenty Five percentage of Excess Cash Flow as defined in the New Term Loan Credit Agreement | 3.2 | ||||
Term Loan Credit Agreement [Member] | Secured Debt [Member] | Minimum [Member] | Subsequent Event [Member] | |||||
Debt Instrument [Line Items] | |||||
Leverage ratio below that Twenty Five percentage of Excess Cash Flow as defined in the New Term Loan Credit Agreement | 1 | ||||
Term Loan Credit Agreement [Member] | Secured Debt [Member] | Alternate Base Interest Rate Loans [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 2.25% | 2.00% | |||
Interest rate description | (i) an ABR for any day, a rate per annum equal to the greater of (a) the prime rate in effect on such day, (b) the federal funds effective rate in effect on such day plus 0.5%, (c) the adjusted LIBOR rate plus 1% and (d) 1.75% or (ii) the LIBOR rate, with a LIBOR floor of 0.75%, in each case plus an applicable margin. | ||||
Percentage of voluntary prepayments | 1.00% | ||||
Term Loan Credit Agreement [Member] | Secured Debt [Member] | Alternate Base Interest Rate Loans [Member] | Subsequent Event [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.75% | ||||
Debt instrument interest rate increase decrease | 1.50% | ||||
Term Loan Credit Agreement [Member] | Secured Debt [Member] | LIBOR [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.00% | 3.25% | 3.00% | ||
Term Loan Credit Agreement [Member] | Secured Debt [Member] | LIBOR [Member] | Subsequent Event [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 2.75% | ||||
Debt instrument interest rate increase decrease | 2.50% | ||||
Term Loan Credit Agreement [Member] | Secured Debt [Member] | LIBOR Floor Rate [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.00% | 1.00% | 0.75% | ||
Term Loan Credit Agreement [Member] | Secured Debt [Member] | Federal Funds Rate [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 0.50% | ||||
Term Loan Credit Agreement [Member] | Secured Debt [Member] | LIBOR Based Loans [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate description | (ii) the LIBOR rate, with a LIBOR floor of 0.75%, in each case plus an applicable margin. |
Long-Term Obligations - Senior
Long-Term Obligations - Senior Notes - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | ||
Capital lease obligations | $ 3,276 | $ 2,912 |
Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Notes issued rate | 6.125% | 6.125% |
Debt instrument maturity date | Aug. 15, 2023 | |
Equity offering for senior notes description | Cash proceeds from certain equity offerings | |
Repurchase of senior notes of principal amount | 101.00% | |
Third-party costs incurred and capitalized | $ 4,632 | |
Senior Notes [Member] | Debt Instrument Redemption by Equity Offering Before August 15, 2018 [Member] | ||
Debt Instrument [Line Items] | ||
Percentage of principal amount redeemed | 106.125% | |
Senior Notes [Member] | Debt Instrument Redemption Period with Premium Before August 15, 2018 [Member] | ||
Debt Instrument [Line Items] | ||
Percentage of principal amount redeemed | 100.00% | |
Senior Notes [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Percentage of principal amount redeemed | 40.00% | |
Senior Notes and Term Loan Credit Agreement [Member] | ||
Debt Instrument [Line Items] | ||
Restricted payment capacity | $ 87,087 |
Long-Term Obligations - Summa67
Long-Term Obligations - Summary of Debt Instrument Redemption (Detail) - Senior Notes [Member] | 12 Months Ended |
Dec. 31, 2017 | |
Twelve-Month Period Beginning on August 15, 2018 [Member] | |
Debt Instrument, Redemption [Line Items] | |
Percentage of principal amount to be redeemed | 103.063% |
Twelve-Month Period Beginning on August 15, 2019 [Member] | |
Debt Instrument, Redemption [Line Items] | |
Percentage of principal amount to be redeemed | 101.531% |
Twelve-Month Period Beginning on August 15, 2020 and Thereafter [Member] | |
Debt Instrument, Redemption [Line Items] | |
Percentage of principal amount to be redeemed | 100.00% |
Long-Term Obligations - Maturit
Long-Term Obligations - Maturities of Long-Term Obligations (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Debt Instrument [Line Items] | |
2,018 | $ 13,059 |
2,019 | 12,982 |
2,020 | 12,870 |
2,021 | 13,066 |
2,022 | 1,162,567 |
Thereafter | 350,000 |
Long-term obligations | 1,564,544 |
Long-Term Debt Obligations [Member] | |
Debt Instrument [Line Items] | |
2,018 | 12,266 |
2,019 | 12,266 |
2,020 | 12,266 |
2,021 | 12,266 |
2,022 | 1,162,204 |
Thereafter | 350,000 |
Long-term obligations | 1,561,268 |
Capital Lease Obligations [Member] | |
Debt Instrument [Line Items] | |
2,018 | 793 |
2,019 | 716 |
2,020 | 604 |
2,021 | 800 |
2,022 | 363 |
Thereafter | 0 |
Long-term obligations | $ 3,276 |
Capital Stock - Additional Info
Capital Stock - Additional Information (Detail) $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($)$ / sharesshares | |
Equity [Abstract] | |
Authorized capital stock | 300,000,000 |
Common stock, par value | $ / shares | $ 0.01 |
Preferred stock, par value | $ / shares | $ 0.01 |
Authorized preferred stock | 15,000,000 |
Number of acquired treasury shares | 23,379,567 |
Value of acquired treasury shares | $ | $ 286,733 |
Capital Stock - Summary Changes
Capital Stock - Summary Changes in Common Shares Outstanding (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Class of Stock [Line Items] | |||
Common Shares Outstanding, Beginning Balance | 119,515,894 | ||
Treasury stock purchases | (23,379,567) | ||
Common Shares Outstanding, Ending Balance | 96,380,102 | 119,515,894 | |
Common Stock [Member] | |||
Class of Stock [Line Items] | |||
Common Shares Outstanding, Beginning Balance | 119,515,894 | 119,258,374 | 91,007,894 |
Adjustment to redeemable securities | 3,088,630 | ||
Issuance of common stock | 25,156,250 | ||
Exercise of stock options | 243,775 | 257,520 | 5,600 |
Treasury stock purchases | (23,379,567) | ||
Common Shares Outstanding, Ending Balance | 96,380,102 | 119,515,894 | 119,258,374 |
Other Expense (Income), Net - S
Other Expense (Income), Net - Summary of Other Expense (Income), Net (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other Income and Expenses [Abstract] | |||
Undistributed (gain) loss in unconsolidated joint ventures | $ (194) | $ 314 | $ 562 |
Foreign currency losses (gains) | 466 | (7,417) | 3,691 |
Debt refinancings | 0 | 1,458 | 94,607 |
Management agreement termination fee | 0 | 0 | 30,697 |
Corporate development expenses | 2,660 | 3,290 | 1,786 |
Other, net | 1,694 | 345 | (353) |
Other expense (income), net | $ 4,626 | $ (2,010) | $ 130,990 |
Other Expense (Income), Net -72
Other Expense (Income), Net - Summary of Other Expense (Income), Net (Parenthetical) (Detail) - Secured Debt [Member] - Term Loan Credit Agreement [Member] - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended |
Aug. 31, 2015 | Dec. 31, 2017 | |
Other Non Operating Income And Expenses [Line Items] | ||
Debt extinguishment amount | $ 15,597 | |
Other Expense [Member] | ||
Other Non Operating Income And Expenses [Line Items] | ||
Debt instrument refinancing expense | $ 79,010 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - Subsidiary Issuer [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Defined contribution plan, expenses recognized | $ 6,565 | $ 5,792 | $ 5,196 |
Minimum [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Employer matching contribution of employees contribution | 11.00% | ||
Employer matching contribution of employees gross pay | 5.00% | ||
Maximum [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Employer matching contribution of employees contribution | 100.00% | ||
Employer matching contribution of employees gross pay | 6.00% |
Equity Incentive Plans - Additi
Equity Incentive Plans - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Jul. 27, 2013 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Intrinsic value of options exercised | $ 1,972 | $ 2,726 | $ 60 | |
Fair value of options vested | 4,354 | 4,110 | 1,726 | |
Time Based Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 5,309 | $ 3,853 | $ 3,042 | |
Options vested granted percentage | 20.00% | 20.00% | ||
Options vesting description | Vested 20% on July 27, 2013 and vest 20% each July 27th thereafter | |||
Unrecognized compensation cost | $ 5,248 | |||
Unrecognized compensation cost weighted-average recognition period | 33 months | |||
Performance Shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options outstanding | 3,673,600 | |||
Options, Average grant date fair value | $ 3.09 | |||
2012 Omnibus Equity Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Maximum number of shares reserved | 15,316,000 |
Equity Incentive Plans - Fair V
Equity Incentive Plans - Fair Value of Options Granted (Detail) | 12 Months Ended |
Dec. 31, 2017 | |
Time Based Stock Options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected dividend rate | 0.00% |
Risk-free interest rate, Minimum | 1.79% |
Risk-free interest rate, Maximum | 2.22% |
Volatility | 25.44% |
Volatility | 27.05% |
Time Based Stock Options [Member] | Minimum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected option term | 5 years 6 months |
Time Based Stock Options [Member] | Maximum [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected option term | 6 years 6 months |
Performance Shares [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected dividend rate | 0.00% |
Risk-free interest rate | 1.86% |
Volatility | 52.00% |
Expected option term | 5 years |
Equity Incentive Plans - Summar
Equity Incentive Plans - Summary of Changes in Outstanding Options (Detail) - Performance Based Stock Options [Member] - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options outstanding beginning balance | 8,461,826 | 8,517,645 | 6,686,400 |
Options granted | 101,444 | 484,950 | 2,013,764 |
Options exercised | (243,775) | (257,520) | (5,600) |
Options forfeited | (294,734) | (283,249) | (176,919) |
Options outstanding ending balance | 8,024,761 | 8,461,826 | 8,517,645 |
Average exercise price outstanding beginning balance | $ 8.74 | $ 8.28 | |
Options exercisable | 2,795,414 | ||
Average exercise price granted | $ 14.38 | 15.78 | $ 17.97 |
Expected to vest (excluding performance-based options) | 1,555,747 | ||
Average exercise price exercised | $ 5.33 | 5.33 | 5.33 |
Average exercise price forfeited | 9.47 | 10.05 | 7.36 |
Average exercise price outstanding ending balance | 8.89 | 8.74 | 8.28 |
Average exercise price exercisable | 9.07 | ||
Average exercise price expected to vest | 16.95 | ||
Average fair market value of TBOs at grant date granted | $ 4.46 | $ 4.68 | $ 6.04 |
Aggregate intrinsic value outstanding ending balance | $ 40,634 | $ 46,214 | $ 39,453 |
Aggregate intrinsic value exercisable | 13,636 | ||
Aggregate intrinsic value expected to vest | $ (4,667) | ||
Weighted average remaining contractual term outstanding ending balance | 6 years | 6 years 10 months 24 days | 7 years 9 months 18 days |
Weighted average remaining contractual term exercisable | 5 years 10 months 25 days | ||
Weighted average remaining contractual term expected to vest | 7 years 8 months 12 days |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Taxes [Line Items] | |||||
U.S. corporate income tax rate | 35.00% | 35.00% | 35.00% | ||
Provisional income tax benefit related to remeasurement of domestic net deferred tax liabilities and deferred tax assets | $ 90,965 | ||||
Net provisional income tax expense related to deemed repatriation of unremitted earnings of foreign subsidiaries | 1,132 | ||||
Other assets, net | $ 1,150 | 1,150 | $ 804 | ||
Deferred income tax liabilities | 175,836 | $ 175,836 | 278,819 | ||
State tax credit carryforwards expiration year | 2,018 | ||||
Foreign tax credit carryforwards expiration year | 2,020 | ||||
Deferred tax liability | 202,980 | $ 202,980 | 316,873 | ||
Unrecognized Tax Benefit That Would Impact Effective Tax Rate | 855 | 855 | 913 | ||
Accrued interest and penalties | 73 | 73 | $ 28 | ||
Scenario, Forecast [Member] | |||||
Income Taxes [Line Items] | |||||
U.S. corporate income tax rate | 21.00% | ||||
United Kingdom [Member] | |||||
Income Taxes [Line Items] | |||||
Net operating loss carryforwards | 4,108 | $ 4,108 | |||
Domestic [Member] | |||||
Income Taxes [Line Items] | |||||
Operating loss carryforwards acquisition expiration date | 2,020 | ||||
Australia [Member] | |||||
Income Taxes [Line Items] | |||||
Net operating loss carryforwards | 635 | $ 635 | |||
Other Foreign Country [Member] | |||||
Income Taxes [Line Items] | |||||
Net operating loss carryforwards | 334 | 334 | |||
Germany [Member] | |||||
Income Taxes [Line Items] | |||||
Net operating loss carryforwards | 9,074 | 9,074 | |||
Foreign Tax Authority [Member] | |||||
Income Taxes [Line Items] | |||||
Transition tax recorded | 11,500 | ||||
Repatriation tax | 11,500 | ||||
Deferred income tax liabilities on unremitted foreign earnings | 10,368 | 10,368 | |||
Deferred tax liability | $ 586 | $ 586 | |||
Foreign Tax Authority [Member] | Scenario, Forecast [Member] | |||||
Income Taxes [Line Items] | |||||
Transition tax payable recorded in income tax payable | $ 920 |
Income Taxes - Summary of Domes
Income Taxes - Summary of Domestic and Foreign Income Before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 153,280 | $ 152,800 | $ 7,180 |
Foreign | 34,864 | 33,914 | 10,688 |
Total | $ 188,144 | $ 186,714 | $ 17,868 |
Income Taxes - Summary Income T
Income Taxes - Summary Income Tax (Benefit) Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current: | |||
Federal | $ 61,890 | $ 50,851 | $ 8,137 |
State | 6,267 | 8,121 | 2,652 |
Foreign | 7,298 | 6,864 | 2,798 |
Total current expense | 75,455 | 65,836 | 13,587 |
Deferred: | |||
Federal | (101,774) | 3,290 | (6,710) |
State | (796) | (906) | (1,086) |
Foreign | (81) | 1,017 | 1,618 |
Total deferred (benefit) expense | (102,651) | 3,401 | (6,178) |
Income tax (benefit) expense | $ (27,196) | $ 69,237 | $ 7,409 |
Income Taxes - Summary of Defer
Income Taxes - Summary of Deferred Income Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred income tax assets: | ||
Inventory valuation | $ 7,064 | $ 10,138 |
Allowance for doubtful accounts | 746 | 893 |
Accrued liabilities | 8,130 | 10,402 |
Equity based compensation | 3,145 | 3,236 |
Federal tax loss carryforwards | 960 | 2,715 |
State tax loss carryforwards | 1,726 | 1,070 |
Foreign tax loss carryforwards | 14,151 | 13,992 |
Foreign tax credit carryforwards | 6,412 | 1,418 |
Deferred rent | 9,867 | 11,816 |
Other | 166 | 509 |
Deferred income tax assets before valuation allowances | 52,367 | 56,189 |
Less: valuation allowances | (24,073) | (17,331) |
Deferred income tax assets, net | 28,294 | 38,858 |
Deferred income tax liabilities: | ||
Property, plant and equipment | 13,855 | 24,055 |
Intangible assets | 145,066 | 218,046 |
Amortization of goodwill and other assets | 42,297 | 61,163 |
Foreign earnings expected to be repatriated | 586 | 10,954 |
Other | 1,176 | 2,655 |
Deferred income tax liabilities | $ 202,980 | $ 316,873 |
Income Taxes - Summary of Diffe
Income Taxes - Summary of Difference Between the Effective Income Tax Rate and the U.S. Statutory Income Tax Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Tax provision at U.S. statutory income tax rate | 35.00% | 35.00% | 35.00% |
State income tax, net of federal income tax | 1.90% | 2.50% | 5.70% |
Domestic production activities deduction | (1.40%) | (1.00%) | (5.10%) |
Contingent consideration adjustment | 0.20% | (0.10%) | (6.00%) |
Work Opportunity Tax Credit | (0.40%) | (0.30%) | (3.20%) |
Valuation allowances | 2.10% | 0.50% | 21.70% |
Foreign earnings | (1.70%) | 2.30% | 9.10% |
U.S. - foreign rate differential | (1.90%) | (2.40%) | (13.70%) |
Transition Tax on unremitted foreign earnings, net | 0.60% | 0.00% | 0.00% |
Effect of the Act on Federal deferred income tax assets and liabilities | (48.40%) | 0.00% | 0.00% |
Other | (0.50%) | 0.60% | (2.00%) |
Effective income tax rate | (14.50%) | 37.10% | 41.50% |
Income Taxes - Summary of Activ
Income Taxes - Summary of Activity of Company's Gross Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Balance as of beginning of period | $ 913 | $ 765 | $ 798 |
Increases related to current period tax positions | 100 | 444 | 130 |
(Decreases) increases related to prior period tax positions | (158) | 339 | 0 |
Decreases related to settlements | 0 | (635) | (92) |
Decreases related to lapsing of statutes of limitations | 0 | 0 | (71) |
Balance as of end of period | $ 855 | $ 913 | $ 765 |
Commitments, Contingencies an83
Commitments, Contingencies and Related Party Transactions - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Apr. 30, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Commitment And Contingencies [Line Items] | ||||
Lease expire year | 2,029 | |||
Rent expense | $ 255,615 | $ 235,790 | $ 225,543 | |
Product royalty expense | 46,242 | 43,914 | 45,710 | |
Annual management fee | $ 3,000 | |||
Annual management fee as percentage of adjusted EBITDA | 1.00% | |||
Management fee payment terms | Ten year | |||
Management termination fee | $ 0 | 0 | 30,697 | |
Thomas H. Lee Partners, L.P. [Member] | ||||
Commitment And Contingencies [Line Items] | ||||
Annual management fee | 692 | |||
Advent International Corporation [Member] | ||||
Commitment And Contingencies [Line Items] | ||||
Annual management fee | 238 | |||
Thomas H. Lee Partners, L.P. and Advent International Corporation [Member] | ||||
Commitment And Contingencies [Line Items] | ||||
Management termination fee | $ 30,697 | |||
American Greetings Corporation [Member] | ||||
Commitment And Contingencies [Line Items] | ||||
Sales to related party | 22,100 | 19,600 | 30,100 | |
Purchases from related party | $ 3,700 | $ 2,700 | $ 3,500 |
Commitments, Contingencies an84
Commitments, Contingencies and Related Party Transactions - Summary of Future Minimum Lease Payments Under All Operating Leases (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,018 | $ 186,278 |
2,019 | 161,996 |
2,020 | 146,603 |
2,021 | 132,217 |
2,022 | 115,502 |
Thereafter | 310,992 |
Total Minimum Operating Lease Payments | $ 1,053,588 |
Commitments, Contingencies an85
Commitments, Contingencies and Related Party Transactions - Summary of Future Minimum Product Royalties (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,018 | $ 29,879 |
2,019 | 18,982 |
2,020 | 6,992 |
2,021 | 150 |
2,022 | 0 |
Thereafter | 0 |
Total Future Minimum Royalty Payments | $ 56,003 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017USD ($)Segment | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Segment Reporting [Abstract] | |||
Number of business segments | Segment | 2 | ||
Export sales | $ | $ 22,812 | $ 23,631 | $ 22,803 |
Segment Information - Schedule
Segment Information - Schedule of Company's Industry Segment Data (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues: | |||||||||||
Net sales | $ 785,020 | $ 557,350 | $ 541,653 | $ 473,963 | $ 743,292 | $ 553,382 | $ 515,426 | $ 454,286 | $ 2,357,986 | $ 2,266,386 | $ 2,275,122 |
Royalties and franchise fees | 4,563 | 2,759 | 3,225 | 3,036 | 5,996 | 3,568 | 3,987 | 3,454 | 13,583 | 17,005 | 19,411 |
Total revenues | 2,371,569 | 2,283,391 | 2,294,533 | ||||||||
Income from operations | 167,378 | $ 37,388 | $ 60,699 | $ 14,671 | 159,130 | $ 36,918 | $ 58,480 | $ 19,556 | 280,136 | 274,084 | 272,219 |
Interest expense, net | 87,366 | 89,380 | 123,361 | ||||||||
Other (income) expense, net | 4,626 | (2,010) | 130,990 | ||||||||
Income before income taxes | 188,144 | 186,714 | 17,868 | ||||||||
Depreciation and amortization | 85,168 | 83,630 | 80,515 | ||||||||
Capital expenditures | 66,970 | 81,948 | 78,825 | ||||||||
Total assets | 3,454,756 | 3,393,978 | 3,454,756 | 3,393,978 | |||||||
Wholesale [Member] | |||||||||||
Revenues: | |||||||||||
Total revenues | 629,397 | 625,318 | 653,598 | ||||||||
Income from operations | 68,130 | 91,920 | 85,728 | ||||||||
Retail [Member] | |||||||||||
Revenues: | |||||||||||
Total revenues | 1,742,172 | 1,658,073 | 1,640,935 | ||||||||
Income from operations | 212,006 | 182,164 | 186,491 | ||||||||
Operating Segments [Member] | |||||||||||
Revenues: | |||||||||||
Net sales | 2,988,678 | 2,893,286 | 2,848,513 | ||||||||
Royalties and franchise fees | 13,583 | 17,005 | 19,411 | ||||||||
Total revenues | 3,002,261 | 2,910,291 | 2,867,924 | ||||||||
Operating Segments [Member] | Wholesale [Member] | |||||||||||
Revenues: | |||||||||||
Net sales | 1,260,089 | 1,252,218 | 1,226,989 | ||||||||
Royalties and franchise fees | 0 | 0 | 0 | ||||||||
Total revenues | 1,260,089 | 1,252,218 | 1,226,989 | ||||||||
Depreciation and amortization | 30,520 | 29,695 | 29,352 | ||||||||
Capital expenditures | 32,490 | 26,854 | 18,849 | ||||||||
Total assets | 1,050,620 | 1,004,599 | 1,050,620 | 1,004,599 | |||||||
Operating Segments [Member] | Retail [Member] | |||||||||||
Revenues: | |||||||||||
Net sales | 1,728,589 | 1,641,068 | 1,621,524 | ||||||||
Royalties and franchise fees | 13,583 | 17,005 | 19,411 | ||||||||
Total revenues | 1,742,172 | 1,658,073 | 1,640,935 | ||||||||
Depreciation and amortization | 54,648 | 53,935 | 51,163 | ||||||||
Capital expenditures | 34,480 | 55,094 | 59,976 | ||||||||
Total assets | $ 2,404,136 | $ 2,389,379 | 2,404,136 | 2,389,379 | |||||||
Eliminations [Member] | |||||||||||
Revenues: | |||||||||||
Total revenues | (630,692) | (626,900) | (573,391) | ||||||||
Eliminations [Member] | Wholesale [Member] | |||||||||||
Revenues: | |||||||||||
Total revenues | (630,692) | (626,900) | (573,391) | ||||||||
Eliminations [Member] | Retail [Member] | |||||||||||
Revenues: | |||||||||||
Total revenues | $ 0 | $ 0 | $ 0 |
Segment Information - Schedul88
Segment Information - Schedule of Company's Geographic Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues: | |||||||||||
Net sales to unaffiliated customers | $ 2,357,986 | $ 2,266,386 | $ 2,275,122 | ||||||||
Net sales between geographic areas | 0 | 0 | 0 | ||||||||
Net sales | $ 785,020 | $ 557,350 | $ 541,653 | $ 473,963 | $ 743,292 | $ 553,382 | $ 515,426 | $ 454,286 | 2,357,986 | 2,266,386 | 2,275,122 |
Royalties and franchise fees | 4,563 | 2,759 | 3,225 | 3,036 | 5,996 | 3,568 | 3,987 | 3,454 | 13,583 | 17,005 | 19,411 |
Total revenues | 2,371,569 | 2,283,391 | 2,294,533 | ||||||||
Income from operations | 167,378 | $ 37,388 | $ 60,699 | $ 14,671 | 159,130 | $ 36,918 | $ 58,480 | $ 19,556 | 280,136 | 274,084 | 272,219 |
Interest expense, net | 87,366 | 89,380 | 123,361 | ||||||||
Other (income) expense, net | 4,626 | (2,010) | 130,990 | ||||||||
Income before income taxes | 188,144 | 186,714 | 17,868 | ||||||||
Depreciation and amortization | 85,168 | 83,630 | 80,515 | ||||||||
Total long-lived assets (excluding goodwill, trade names and other intangible assets, net) | 313,965 | 297,406 | 313,965 | 297,406 | |||||||
Total assets | 3,454,756 | 3,393,978 | 3,454,756 | 3,393,978 | |||||||
Reportable Geographical Components [Member] | Domestic [Member] | |||||||||||
Revenues: | |||||||||||
Net sales to unaffiliated customers | 1,962,697 | 1,917,158 | 1,937,793 | ||||||||
Net sales between geographic areas | 54,268 | 51,916 | 47,752 | ||||||||
Net sales | 2,016,965 | 1,969,074 | 1,985,545 | ||||||||
Royalties and franchise fees | 13,583 | 17,005 | 19,411 | ||||||||
Total revenues | 2,030,548 | 1,986,079 | 2,004,956 | ||||||||
Income from operations | 252,270 | 257,774 | 267,209 | ||||||||
Depreciation and amortization | 76,970 | 77,176 | 74,849 | ||||||||
Total long-lived assets (excluding goodwill, trade names and other intangible assets, net) | 277,791 | 269,047 | 277,791 | 269,047 | |||||||
Total assets | 3,131,256 | 3,147,003 | 3,131,256 | 3,147,003 | |||||||
Reportable Geographical Components [Member] | Foreign [Member] | |||||||||||
Revenues: | |||||||||||
Net sales to unaffiliated customers | 395,289 | 349,228 | 337,329 | ||||||||
Net sales between geographic areas | 64,585 | 80,776 | 74,974 | ||||||||
Net sales | 459,874 | 430,004 | 412,303 | ||||||||
Royalties and franchise fees | 0 | 0 | 0 | ||||||||
Total revenues | 459,874 | 430,004 | 412,303 | ||||||||
Income from operations | 27,866 | 16,310 | 5,010 | ||||||||
Depreciation and amortization | 8,198 | 6,454 | 5,666 | ||||||||
Total long-lived assets (excluding goodwill, trade names and other intangible assets, net) | 36,174 | 28,359 | 36,174 | 28,359 | |||||||
Total assets | 323,500 | 246,975 | 323,500 | 246,975 | |||||||
Eliminations [Member] | |||||||||||
Revenues: | |||||||||||
Net sales to unaffiliated customers | 0 | 0 | 0 | ||||||||
Net sales between geographic areas | (118,853) | (132,692) | (122,726) | ||||||||
Net sales | (118,853) | (132,692) | (122,726) | ||||||||
Royalties and franchise fees | 0 | 0 | 0 | ||||||||
Total revenues | (118,853) | (132,692) | (122,726) | ||||||||
Income from operations | 0 | 0 | $ 0 | ||||||||
Total assets | $ 0 | $ 0 | $ 0 | $ 0 |
Quarterly Results (Unaudited) -
Quarterly Results (Unaudited) - Summary of Historical Revenues Gross Profit Income (Loss) From Operations (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues: | |||||||||||
Net sales | $ 785,020 | $ 557,350 | $ 541,653 | $ 473,963 | $ 743,292 | $ 553,382 | $ 515,426 | $ 454,286 | $ 2,357,986 | $ 2,266,386 | $ 2,275,122 |
Royalties and franchise fees | 4,563 | 2,759 | 3,225 | 3,036 | 5,996 | 3,568 | 3,987 | 3,454 | 13,583 | 17,005 | 19,411 |
Gross profit | 367,883 | 199,827 | 219,753 | 175,244 | 345,199 | 196,720 | 207,561 | 166,519 | |||
Income from operations | 167,378 | 37,388 | 60,699 | 14,671 | 159,130 | 36,918 | 58,480 | 19,556 | $ 280,136 | $ 274,084 | $ 272,219 |
Net (loss) income | $ 184,957 | $ 10,084 | $ 24,982 | $ (4,683) | $ 85,176 | $ 10,180 | $ 22,515 | $ (394) | |||
Net (loss) income per common share-Basic | $ 1.59 | $ 0.08 | $ 0.21 | $ (0.04) | $ 0.71 | $ 0.09 | $ 0.19 | $ 0 | $ 1.81 | $ 0.98 | $ 0.09 |
Net (loss) income per common share-Diluted | $ 1.58 | $ 0.08 | $ 0.21 | $ (0.04) | $ 0.71 | $ 0.08 | $ 0.19 | $ 0 | $ 1.79 | $ 0.98 | $ 0.09 |
Quarterly Results (Unaudited)90
Quarterly Results (Unaudited) - Summary of Historical Revenues Gross Profit Income (Loss) From Operations (Parenthetical) (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Interim Period, Costs Not Allocable [Line Items] | ||||
Tax provision at U.S. statutory income tax rate | 35.00% | 35.00% | 35.00% | |
Provisional benefit related to measurement of deferred tax liabilities | $ 90,965 | |||
Provisional benefit due to Act change | $ 1,132 | |||
Scenario, Forecast [Member] | ||||
Interim Period, Costs Not Allocable [Line Items] | ||||
Tax provision at U.S. statutory income tax rate | 21.00% |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Jul. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2017 | Apr. 30, 2017 | Dec. 31, 2015 | |
Variable Interest Entity, Not Primary Beneficiary [Member] | Ampology [Member] | Kazzam LLC [Member] | |||||
Debt Instrument [Line Items] | |||||
Variable interest entity ownership percentage | 70.00% | ||||
Punchbowl Inc [Member] | |||||
Debt Instrument [Line Items] | |||||
Equity method investment, ownership percentage | 28.00% | 28.00% | |||
Accurate Custom Injection Molding Inc [Member] | |||||
Debt Instrument [Line Items] | |||||
Business combination, acquisition percentage | 75.00% | ||||
Estimated purchase price interest | $ 0 | ||||
Business combination, percentage of remaining interest | 25.00% | ||||
Business combination, period to acquire remaining interest | 7 years | ||||
Granmark [Member] | |||||
Debt Instrument [Line Items] | |||||
Business combination, acquisition percentage | 85.00% | 85.00% | |||
Business combination, percentage of remaining interest | 15.00% | 15.00% | |||
Liability recorded for the estimated purchase price of remaining interest to be acquired | $ 2,874 | ||||
Granmark [Member] | Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Business combination, period to acquire remaining interest | 3 years | 3 years | |||
Granmark [Member] | Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Business combination, period to acquire remaining interest | 5 years | 5 years | |||
Print Appeal Inc [Member] | |||||
Debt Instrument [Line Items] | |||||
Business combination, acquisition percentage | 60.00% | 60.00% | |||
Estimated purchase price interest | $ 3,063 | ||||
Business combination, percentage of remaining interest | 40.00% | 40.00% | |||
Business combination, period to acquire remaining interest | 6 years | ||||
Liability recorded for the estimated purchase price of remaining interest to be acquired | $ 3,063 | ||||
Print Appeal Inc [Member] | Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Business combination, period to acquire remaining interest | 4 years | ||||
Print Appeal Inc [Member] | Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Business combination, period to acquire remaining interest | 6 years |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | $ 95 | $ 697 |
Derivative liabilities | 99 | 215 |
Noncontrolling interests liabilities | 0 | |
Granmark [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Noncontrolling interests liabilities | 2,874 | |
Print Appeal Inc [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Noncontrolling interests liabilities | 3,063 | |
Punchbowl Inc [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 2,122 | |
Kazzam LLC [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 3,590 | |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Noncontrolling interests liabilities | 0 | |
Level 1 [Member] | Granmark [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Noncontrolling interests liabilities | 0 | |
Level 1 [Member] | Print Appeal Inc [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Noncontrolling interests liabilities | 0 | |
Level 1 [Member] | Punchbowl Inc [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 0 | |
Level 1 [Member] | Kazzam LLC [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 0 | |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 95 | 697 |
Derivative liabilities | 99 | 215 |
Noncontrolling interests liabilities | 0 | |
Level 2 [Member] | Granmark [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Noncontrolling interests liabilities | 0 | |
Level 2 [Member] | Print Appeal Inc [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Noncontrolling interests liabilities | 0 | |
Level 2 [Member] | Punchbowl Inc [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 0 | |
Level 2 [Member] | Kazzam LLC [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 0 | |
Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Noncontrolling interests liabilities | $ 0 | |
Level 3 [Member] | Granmark [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Noncontrolling interests liabilities | 2,874 | |
Level 3 [Member] | Print Appeal Inc [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Noncontrolling interests liabilities | 3,063 | |
Level 3 [Member] | Punchbowl Inc [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 2,122 | |
Level 3 [Member] | Kazzam LLC [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | $ 3,590 |
Fair Value Measurements - Sum93
Fair Value Measurements - Summary of Carrying Amount and Fair Value (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument Carrying Amount | $ 345,368 |
Debt Instrument Fair Value | 362,250 |
Term Loan Credit Agreement [Member] | Secured Debt [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument Carrying Amount | 1,196,505 |
Debt Instrument Fair Value | $ 1,217,324 |
Derivative Financial Instrume94
Derivative Financial Instruments - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2017 | |
Derivative [Line Items] | |
Foreign currency exchange contracts reclassified date | 2019-06 |
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 |
Derivative Financial Instrume95
Derivative Financial Instruments - Schedule of Fair Values of Derivatives (Detail) - Foreign Exchange Contracts [Member] - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Prepaid Expenses and Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | $ 95 | $ 697 |
Accrued Expenses [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | $ 99 | $ 215 |
Derivative Financial Instrume96
Derivative Financial Instruments - Schedule of Notional Amounts of Derivatives (Detail) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Foreign Exchange Contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional amounts | $ 21,672,000 | $ 22,502,000 |
Changes in Accumulated Other 97
Changes in Accumulated Other Comprehensive Loss - Changes in Accumulated and Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance | $ 1,016,789 | $ 913,017 | |
Balance | 968,435 | 1,016,789 | $ 913,017 |
Foreign Currency Adjustments [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance | (53,171) | (33,401) | (12,969) |
Other comprehensive (loss) income before reclassifications, net of income tax | 17,561 | (19,770) | (20,432) |
Amounts reclassified from accumulated other comprehensive loss to the consolidated statement of operations and comprehensive income, net of income tax | 0 | 0 | 0 |
Net current-period other comprehensive (loss) income | 17,561 | (19,770) | (20,432) |
Balance | (35,610) | (53,171) | (33,401) |
Impact of Foreign Exchange Contracts, Net of Taxes [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance | 932 | 611 | 234 |
Other comprehensive (loss) income before reclassifications, net of income tax | (1,044) | 1,080 | 675 |
Amounts reclassified from accumulated other comprehensive loss to the consolidated statement of operations and comprehensive income, net of income tax | (96) | (759) | (298) |
Net current-period other comprehensive (loss) income | (1,140) | 321 | 377 |
Balance | (208) | 932 | 611 |
Accumulated Other Comprehensive Loss [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Balance | (52,239) | (32,790) | (12,735) |
Other comprehensive (loss) income before reclassifications, net of income tax | 16,517 | (18,690) | (19,757) |
Amounts reclassified from accumulated other comprehensive loss to the consolidated statement of operations and comprehensive income, net of income tax | (96) | (759) | (298) |
Net current-period other comprehensive (loss) income | 16,421 | (19,449) | (20,055) |
Balance | $ (35,818) | $ (52,239) | $ (32,790) |
Organizational Restructuring -
Organizational Restructuring - Additional Information (Detail) $ in Thousands | Mar. 15, 2017USD ($)Installments | Dec. 31, 2017USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Consulting Contracts [Line Items] | |||||
Severance charge | $ 3,918 | ||||
Severance bonus target | $ 662 | ||||
Compensation expense related to modification of certain stock options | $ 1,362 | ||||
Remaining term Options exercisable in period | 60 days | ||||
General and administrative expenses | $ 168,369 | $ 152,919 | $ 151,097 | ||
Retail Segment [Member] | Restructuring Charges [Member] | |||||
Consulting Contracts [Line Items] | |||||
Severance charge | 3,195 | ||||
Retail operating expenses | 2,291 | ||||
General and administrative expenses | $ 904 | ||||
Executive Chairman [Member] | |||||
Consulting Contracts [Line Items] | |||||
Base salary | $ 2,049 | ||||
Executive Chairman [Member] | 2017 [Member] | |||||
Consulting Contracts [Line Items] | |||||
Base salary | $ 2,090 | ||||
Percentage of base salary with target amount | 80.00% | ||||
Executive Chairman [Member] | 2018 [Member] | |||||
Consulting Contracts [Line Items] | |||||
Consulting agreement monthly payments | $ 40 | ||||
Aggregate severance payment due, number of equal quarterly installments | Installments | 4 |
Kazzam, LLC - Additional Inform
Kazzam, LLC - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Mar. 14, 2018 | |
Schedule of Equity Method Investments [Line Items] | ||||
Capitalized costs | $ 627,930 | $ 557,916 | ||
Adjustments to additional paid in capital warrant issued | 421 | |||
Warrant fair value | $ 4,937 | $ 5,818 | $ 40,516 | |
Ampology [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Entity ownership percentage | 70.00% | |||
Ampology [Member] | Website Development Costs [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Capitalized costs | $ 498 | |||
Ampology [Member] | Kazzam LLC [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Entity ownership percentage | 70.00% | |||
Equity method investment aggregate cost | $ 2,682 | |||
Ampology [Member] | Kazzam LLC [Member] | Subsequent Event [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Entity ownership percentage | 70.00% | |||
Ampology [Member] | Warrant [Member] | Website Development Costs [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Capitalized costs | $ 70 | |||
Kazzam LLC [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Entity ownership percentage | 30.00% | |||
Percentage of operating results recorded in consolidated financial statement | 100.00% | |||
Entity description of entity | a) Kazzam is a variable interest entity as it has insufficient equity at risk and b) the Company is its primary beneficiary. | |||
Adjustments to additional paid in capital warrant issued | $ 351 | |||
Kazzam LLC [Member] | Ampology [Member] | Warrant [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Warrant received to acquire Party City Holdco Inc Sock | 596,000 | |||
Warrant exercise price | $ 15.60 | |||
Warrant fair value | $ 1,931 | |||
Warrant amortization period | 4 years |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) | Oct. 31, 2016 | Mar. 31, 2018USD ($)Stores | Feb. 28, 2018 | Oct. 31, 2016 | Dec. 31, 2017USD ($) |
Subsequent Event [Line Items] | |||||
Banker fees | $ 850,000 | ||||
Term Loan Credit Agreement [Member] | |||||
Subsequent Event [Line Items] | |||||
Percentage of net cash proceeds above sale of assets subject to debt mandatory prepayment | 100.00% | 100.00% | 100.00% | ||
Percentage of net cash proceeds of incurrence of debt subject to debt mandatory prepayment | 100.00% | 100.00% | 100.00% | ||
Percentage excess cash flow debt mandatory prepayment subject to leverage ratio | 50.00% | 50.00% | 50.00% | ||
Leverage ratio Above that Fifty percentage of Excess Cash Flow as defined in the New Term Loan Credit Agreement | 3.50 | 3.50 | 3.50 | ||
Leverage ratio below that zero percentage of Excess Cash Flow as defined in the New Term Loan Credit Agreement | 2.50 | 2.50 | |||
Term Loan Credit Agreement [Member] | Maximum [Member] | |||||
Subsequent Event [Line Items] | |||||
Senior secured leverage ratio | 3.50 | 3.50 | |||
Reduction in percentage of excess cash flow debt mandatory prepayment subject to leverage ratio | 25.00% | 25.00% | 25.00% | ||
Term Loan Credit Agreement [Member] | Minimum [Member] | |||||
Subsequent Event [Line Items] | |||||
Senior secured leverage ratio | 1 | 1 | |||
Reduction in percentage of excess cash flow debt mandatory prepayment subject to leverage ratio | 0.00% | 0.00% | 0.00% | ||
Term Loan Credit Agreement [Member] | Secured Debt [Member] | Alternate Base Interest Rate Loans [Member] | |||||
Subsequent Event [Line Items] | |||||
Basis spread on variable rate | 2.25% | 2.00% | |||
Term Loan Credit Agreement [Member] | Secured Debt [Member] | LIBOR [Member] | |||||
Subsequent Event [Line Items] | |||||
Basis spread on variable rate | 1.00% | 3.25% | 3.00% | ||
Subsequent Event [Member] | Term Loan Credit Agreement [Member] | Secured Debt [Member] | |||||
Subsequent Event [Line Items] | |||||
Term Loan Credit Agreement, amendment description | based on the terms of the amendment, the ABR and LIBOR margins will drop to 1.50% and 2.50%, respectively, if the Company's Senior Secured Leverage Ratio, as defined by the agreement, falls below 3.2 to 1.0. | ||||
Percentage of voluntary prepayments | 1.00% | ||||
Subsequent Event [Member] | Term Loan Credit Agreement [Member] | Secured Debt [Member] | Maximum [Member] | |||||
Subsequent Event [Line Items] | |||||
Senior secured leverage ratio | 3.2 | ||||
Subsequent Event [Member] | Term Loan Credit Agreement [Member] | Secured Debt [Member] | Minimum [Member] | |||||
Subsequent Event [Line Items] | |||||
Senior secured leverage ratio | 1 | ||||
Subsequent Event [Member] | Term Loan Credit Agreement [Member] | Secured Debt [Member] | Alternate Base Interest Rate Loans [Member] | |||||
Subsequent Event [Line Items] | |||||
Basis spread on variable rate | 1.75% | ||||
Debt instrument interest rate increase decrease | 1.50% | ||||
Subsequent Event [Member] | Term Loan Credit Agreement [Member] | Secured Debt [Member] | LIBOR [Member] | |||||
Subsequent Event [Line Items] | |||||
Basis spread on variable rate | 2.75% | ||||
Debt instrument interest rate increase decrease | 2.50% | ||||
Subsequent Event [Member] | Maryland [Member] | |||||
Subsequent Event [Line Items] | |||||
Number of franchise stores acquired | Stores | 11 | ||||
Total consideration amount | $ 14,000,000 |
Schedule I - Condensed Finan101
Schedule I - Condensed Financial Information of Registrant - Condensed Balance Sheets (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
ASSETS | |||
Other assets (principally investment in and amounts due from wholly-owned subsidiaries) | $ 12,824 | $ 4,502 | |
Total assets | 3,454,756 | 3,393,978 | |
LIABILITIES, REDEEMABLE SECURITIES AND STOCKHOLDERS' EQUITY | |||
Total liabilities | 2,482,376 | 2,377,189 | |
Redeemable securities | 3,590 | 0 | |
Commitments and contingencies | |||
Stockholders' equity: | |||
Common stock ($0.01 par value; 96,380,102 and 119,515,894 shares outstanding and 119,759,669 and 119,515,894 shares issued at December 31, 2017 and December 31, 2016, respectively ) | 1,198 | 1,195 | |
Additional paid-in capital | 917,192 | 910,167 | |
Retained earnings | 372,596 | 157,666 | |
Accumulated other comprehensive loss | (35,818) | (52,239) | |
Total stockholders' equity before common stock held in treasury | 1,255,168 | 1,016,789 | |
Less: Common stock held in treasury, at cost (23,379,567 shares at December 31, 2017) | (286,733) | 0 | |
Total stockholders' equity | 968,435 | 1,016,789 | $ 913,017 |
Total liabilities, redeemable securities and stockholders' equity | 3,454,756 | 3,393,978 | |
Party City Holdco Inc. [Member] | |||
ASSETS | |||
Other assets (principally investment in and amounts due from wholly-owned subsidiaries) | 972,025 | 1,016,789 | |
Total assets | 972,025 | 1,016,789 | |
LIABILITIES, REDEEMABLE SECURITIES AND STOCKHOLDERS' EQUITY | |||
Total liabilities | 0 | 0 | |
Redeemable securities | 3,590 | 0 | |
Commitments and contingencies | |||
Stockholders' equity: | |||
Common stock ($0.01 par value; 96,380,102 and 119,515,894 shares outstanding and 119,759,669 and 119,515,894 shares issued at December 31, 2017 and December 31, 2016, respectively ) | 1,198 | 1,195 | |
Additional paid-in capital | 917,192 | 910,167 | |
Retained earnings | 372,596 | 157,666 | |
Accumulated other comprehensive loss | (35,818) | (52,239) | |
Total stockholders' equity before common stock held in treasury | 1,255,168 | 1,016,789 | |
Less: Common stock held in treasury, at cost (23,379,567 shares at December 31, 2017) | (286,733) | 0 | |
Total stockholders' equity | 968,435 | 1,016,789 | |
Total liabilities, redeemable securities and stockholders' equity | $ 972,025 | $ 1,016,789 |
Schedule I - Condensed Finan102
Schedule I - Condensed Financial Information of Registrant - Condensed Balance Sheets (Parenthetical) (Detail) - $ / shares | Dec. 31, 2017 | Dec. 31, 2016 |
Condensed Financial Statements, Captions [Line Items] | ||
Common stock, par value | $ 0.01 | |
Common stock, shares issued | 119,759,669 | 119,515,894 |
Common stock, shares outstanding | 96,380,102 | 119,515,894 |
Common stock held in treasury, shares at cost | 23,379,567 | |
Party City Holdco Inc. [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares issued | 119,759,669 | 119,515,894 |
Common stock, shares outstanding | 96,380,102 | 119,515,894 |
Common stock held in treasury, shares at cost | 23,379,567 |
Schedule I - Condensed Finan103
Schedule I - Condensed Financial Information of Registrant - Condensed Statements of Operations and Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Condensed Income Statements, Captions [Line Items] | |||
Net income | $ 215,340 | $ 117,477 | $ 10,459 |
Other comprehensive income (loss) | 16,421 | (19,449) | (20,055) |
Comprehensive income (loss) | 231,761 | 98,028 | (9,596) |
Party City Holdco Inc. [Member] | |||
Condensed Income Statements, Captions [Line Items] | |||
Equity in net income of subsidiaries | 215,340 | 117,477 | 10,459 |
Net income | 215,340 | 117,477 | 10,459 |
Other comprehensive income (loss) | 16,421 | (19,449) | (20,055) |
Comprehensive income (loss) | $ 231,761 | $ 98,028 | $ (9,596) |
Schedule I - Condensed Finan104
Schedule I - Condensed Financial Information of Registrant - Condensed Statements of Cash Flows (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows provided by (used in) operating activities: | |||
Net income | $ 215,340 | $ 117,477 | $ 10,459 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Change in due to/from affiliates | 19,408 | 86,893 | (78,293) |
Cash flows (used in) provided by financing activities: | |||
Issuance of common stock | 0 | 0 | 397,159 |
Treasury stock purchases | (286,733) | 0 | 0 |
Exercise of stock options | 1,298 | 1,373 | 30 |
Net (decrease) increase in cash and cash equivalents | (10,319) | 21,691 | (4,295) |
Cash and cash equivalents at beginning of period | 64,610 | 42,919 | 47,214 |
Cash and cash equivalents at end of period | 54,291 | 64,610 | 42,919 |
Party City Holdco Inc. [Member] | |||
Cash flows provided by (used in) operating activities: | |||
Net income | 215,340 | 117,477 | 10,459 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Equity in net income of subsidiaries | (215,340) | (117,477) | (10,459) |
Change in due to/from affiliates | 285,435 | (1,373) | (397,189) |
Net cash provided by (used in) operating activities | 285,435 | (1,373) | (397,189) |
Cash flows (used in) provided by financing activities: | |||
Issuance of common stock | 0 | 0 | 397,159 |
Treasury stock purchases | (286,733) | 0 | 0 |
Exercise of stock options | 1,298 | 1,373 | 30 |
Net cash (used in) provided by financing activities | (285,435) | 1,373 | 397,189 |
Net (decrease) increase in cash and cash equivalents | 0 | 0 | 0 |
Cash and cash equivalents at beginning of period | 0 | 0 | 0 |
Cash and cash equivalents at end of period | $ 0 | $ 0 | $ 0 |
Dividends from Subsidiaries - A
Dividends from Subsidiaries - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Party City Holdco Inc. [Member] | |||
Dividends [Line Items] | |||
Dividends received | $ 0 | $ 0 | $ 0 |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Allowance for Doubtful Accounts [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Beginning Balance | $ 2,683 | $ 2,343 | $ 2,889 |
Write-Offs | 272 | 441 | 769 |
Additions | 560 | 781 | 223 |
Ending Balance | 2,971 | 2,683 | 2,343 |
Sales Returns and Allowances [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Beginning Balance | 466 | 655 | 526 |
Write-Offs | 83,865 | 80,317 | 78,219 |
Additions | 83,879 | 80,128 | 78,348 |
Ending Balance | $ 480 | $ 466 | $ 655 |