Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Jul. 25, 2019 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Fiscal Year Focus | 2019 | |
Document Period End Date | Jun. 30, 2019 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Registrant Name | Party City Holdco Inc. | |
Entity Central Index Key | 0001592058 | |
Trading Symbol | PRTY | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 94,437,133 | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity File Number | 001-37344 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 46-0539758 | |
Entity Address, Address Line One | 80 Grasslands Road | |
Entity Address, State or Province | NY | |
City Area Code | 914 | |
Local Phone Number | 345-2020 | |
Entity Address, Postal Zip Code | 10523 | |
Entity Address, City or Town | Elmsford | |
Entity Shell Company | false | |
Security Exchange Name | NYSE | |
Title of 12(b) Security | Common Stock |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 47,131 | $ 58,909 |
Accounts receivable, net | 140,070 | 146,983 |
Inventories, net | 788,097 | 756,038 |
Prepaid expenses and other current assets | 66,707 | 61,905 |
Total current assets | 1,042,005 | 1,023,835 |
Property, plant and equipment, net | 257,395 | 321,044 |
Operating lease asset | 869,345 | |
Goodwill | 1,659,653 | 1,656,950 |
Trade names | 568,014 | 568,031 |
Other intangible assets, net | 49,663 | 60,164 |
Other assets, net | 12,894 | 12,323 |
Total assets | 4,458,969 | 3,642,347 |
Current liabilities: | ||
Loans and notes payable | 307,379 | 302,751 |
Accounts payable | 159,515 | 208,149 |
Accrued expenses | 151,459 | 161,228 |
Current portion of operating lease liability | 145,472 | |
Income taxes payable | 10,279 | 25,993 |
Current portion of long-term obligations | 76,251 | 13,316 |
Total current liabilities | 850,355 | 711,437 |
Long-term obligations, excluding current portion | 1,565,315 | 1,621,963 |
Long-term portion of operating lease liability | 793,976 | |
Deferred income tax liabilities, net | 163,657 | 174,427 |
Other long-term liabilities | 13,228 | 87,548 |
Total liabilities | 3,386,531 | 2,595,375 |
Redeemable securities | 3,351 | 3,351 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Common stock (94,501,055 and 93,622,934 shares outstanding and 121,681,959 and 120,788,159 shares issued at June 30, 2019 and December 31, 2018, respectively) | 1,210 | 1,208 |
Additional paid-in capital | 926,838 | 922,476 |
Retained earnings | 513,130 | 495,777 |
Accumulated other comprehensive loss | (45,216) | (49,201) |
Total Party City Holdco Inc. stockholders' equity before common stock held in treasury | 1,395,962 | 1,370,260 |
Less: Common stock held in treasury, at cost (27,180,904 and 27,165,225 shares at June 30, 2019 and December 31, 2018) | (327,086) | (326,930) |
Total Party City Holdco Inc. stockholders' equity | 1,068,876 | 1,043,330 |
Noncontrolling interests | 211 | 291 |
Total stockholders' equity | 1,069,087 | 1,043,621 |
Total liabilities, redeemable securities and stockholders' equity | $ 4,458,969 | $ 3,642,347 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - shares | Jun. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Common stock, shares outstanding | 94,501,055 | 93,622,934 |
Common stock, shares issued | 121,681,959 | 120,788,159 |
Treasury stock, shares | 27,180,904 | 27,165,225 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenues: | ||||
Total revenues | $ 563,891 | $ 561,011 | $ 1,077,007 | $ 1,068,835 |
Cost of sales | 353,056 | 329,477 | 692,098 | 646,443 |
Wholesale selling expenses | 16,884 | 17,256 | 34,845 | 36,043 |
Retail operating expenses | 96,143 | 92,094 | 191,161 | 181,186 |
Franchise expenses | 3,236 | 3,980 | 6,539 | 7,762 |
General and administrative expenses | 41,510 | 45,326 | 83,435 | 93,991 |
Art and development costs | 5,712 | 5,732 | 11,641 | 11,705 |
Development stage expenses | 3,012 | 1,695 | 5,238 | 3,998 |
Gain on sale/leaseback transaction | (58,381) | (58,381) | ||
Store impairment and restructuring charges | 5,234 | 23,243 | ||
Total expenses | 466,406 | 495,560 | 989,819 | 981,128 |
Income from operations | 97,485 | 65,451 | 87,188 | 87,707 |
Interest expense, net | 30,176 | 25,501 | 59,433 | 48,776 |
Other expense, net | 3,342 | 2,532 | 4,596 | 3,380 |
Income before income taxes | 63,967 | 37,418 | 23,159 | 35,551 |
Income tax expense | 15,962 | 9,370 | 5,443 | 8,666 |
Net income | 48,005 | 28,048 | 17,716 | 26,885 |
Add: Net income attributable to redeemable securities holder | 410 | 410 | ||
Less: Net loss attributable to noncontrolling interests | (69) | (29) | (140) | (59) |
Net income attributable to common shareholders of Party City Holdco Inc. | $ 48,074 | $ 28,487 | $ 17,856 | $ 27,354 |
Net income per share attributable to common shareholders of Party City Holdco Inc.–Basic | $ 0.52 | $ 0.30 | $ 0.19 | $ 0.28 |
Net income per share attributable to common shareholders of Party City Holdco Inc.–Diluted | $ 0.51 | $ 0.29 | $ 0.19 | $ 0.28 |
Weighted-average number of common shares-Basic | 93,293,176 | 96,453,884 | 93,233,865 | 96,426,235 |
Weighted-average number of common shares-Diluted | 93,703,546 | 97,688,233 | 93,791,763 | 97,669,309 |
Dividends declared per share | $ 0 | $ 0 | $ 0 | $ 0 |
Comprehensive income | $ 48,327 | $ 18,825 | $ 21,690 | $ 22,892 |
Add: Comprehensive income attributable to redeemable securities holder | 410 | 410 | ||
Less: Comprehensive loss attributable to noncontrolling interests | (89) | (55) | (151) | (73) |
Comprehensive income attributable to common shareholders of Party City Holdco Inc. | 48,416 | 19,290 | 21,841 | 23,375 |
Net Sales [Member] | ||||
Revenues: | ||||
Revenues | 561,702 | 558,101 | 1,072,804 | 1,063,209 |
Royalties and Franchise Fees [Member] | ||||
Revenues: | ||||
Revenues | $ 2,189 | $ 2,910 | $ 4,203 | $ 5,626 |
Condensed Consolidated Statemen
Condensed 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, 2017 | $ 968,790 | $ 1,198 | $ 917,192 | $ 372,596 | $ (35,818) | $ 1,255,168 | $ (286,733) | $ 968,435 | $ 355 |
Cumulative effect of change in accounting principle, net (see Note 2) | (78) | (78) | (78) | (78) | |||||
Balance, adjusted at Dec. 31, 2017 | 968,712 | 1,198 | 917,192 | 372,518 | (35,818) | 1,255,090 | (286,733) | 968,357 | 355 |
Net income (loss) | 26,885 | 26,944 | 26,944 | 26,944 | (59) | ||||
Net income attributable to redeemable securities holder | 410 | 410 | 410 | 410 | |||||
Stock option expense | 942 | 942 | 942 | 942 | |||||
Restricted stock units – time-based | 252 | 252 | 252 | 252 | |||||
Restricted stock units – performance-based | 593 | 593 | 593 | 593 | |||||
Director – non-cash compensation | 59 | 59 | 59 | 59 | |||||
Warrant expense | 326 | 326 | 326 | 326 | |||||
Exercise of stock options | 482 | 1 | 481 | 482 | 482 | ||||
Foreign currency adjustments | (5,321) | (5,307) | (5,307) | (5,307) | (14) | ||||
Impact of foreign exchange contracts, net | 1,328 | 1,328 | 1,328 | 1,328 | |||||
Balance at Jun. 30, 2018 | 994,668 | 1,199 | 919,845 | 399,872 | (39,797) | 1,281,119 | (286,733) | 994,386 | 282 |
Balance at Mar. 31, 2018 | 973,792 | 1,198 | 918,205 | 371,385 | (30,600) | 1,260,188 | (286,733) | 973,455 | 337 |
Net income (loss) | 28,048 | 28,077 | 28,077 | 28,077 | (29) | ||||
Net income attributable to redeemable securities holder | 410 | 410 | 410 | 410 | |||||
Stock option expense | 482 | 482 | 482 | 482 | |||||
Restricted stock units – time-based | 252 | 252 | 252 | 252 | |||||
Restricted stock units – performance-based | 593 | 593 | 593 | 593 | |||||
Director – non-cash compensation | 59 | 59 | 59 | 59 | |||||
Warrant expense | 65 | 65 | 65 | 65 | |||||
Exercise of stock options | 190 | 1 | 189 | 190 | 190 | ||||
Foreign currency adjustments | (10,739) | (10,713) | (10,713) | (10,713) | (26) | ||||
Impact of foreign exchange contracts, net | 1,516 | 1,516 | 1,516 | 1,516 | |||||
Balance at Jun. 30, 2018 | 994,668 | 1,199 | 919,845 | 399,872 | (39,797) | 1,281,119 | (286,733) | 994,386 | 282 |
Balance at Dec. 31, 2018 | 1,043,621 | 1,208 | 922,476 | 495,777 | (49,201) | 1,370,260 | (326,930) | 1,043,330 | 291 |
Cumulative effect of change in accounting principle, net (see Note 2) | 159 | 662 | (503) | 159 | 159 | ||||
Balance, adjusted at Dec. 31, 2018 | 1,043,780 | 1,208 | 923,138 | 495,274 | (49,201) | 1,370,419 | (326,930) | 1,043,489 | 291 |
Net income (loss) | 17,716 | 17,856 | 17,856 | 17,856 | (140) | ||||
Stock option expense | 741 | 741 | 741 | 741 | |||||
Restricted stock units – time-based | 933 | 933 | 933 | 933 | |||||
Restricted stock units – performance-based | 476 | 476 | 476 | 476 | |||||
Director – non-cash compensation | 165 | 165 | 165 | 165 | |||||
Warrant expense | 258 | 258 | 258 | 258 | |||||
Exercise of stock options | 1,088 | 2 | 1,086 | 1,088 | 1,088 | ||||
Acquired non-controlling interest | 112 | 41 | 41 | 41 | 71 | ||||
Treasury stock purchases | (156) | (156) | (156) | ||||||
Foreign currency adjustments | 4,701 | 4,712 | 4,712 | 4,712 | (11) | ||||
Impact of foreign exchange contracts, net | (727) | (727) | (727) | (727) | |||||
Balance at Jun. 30, 2019 | 1,069,087 | 1,210 | 926,838 | 513,130 | (45,216) | 1,395,962 | (327,086) | 1,068,876 | 211 |
Balance at Mar. 31, 2019 | 1,019,155 | 1,210 | 925,233 | 465,056 | (45,558) | 1,345,941 | (327,086) | 1,018,855 | 300 |
Net income (loss) | 48,005 | 0 | 48,074 | 48,074 | 48,074 | (69) | |||
Stock option expense | 371 | 371 | 371 | 371 | |||||
Restricted stock units – time-based | 541 | 541 | 541 | 541 | |||||
Restricted stock units – performance-based | 476 | 476 | 476 | 476 | |||||
Director – non-cash compensation | 88 | 88 | 88 | 88 | |||||
Warrant expense | 129 | 129 | 129 | 129 | |||||
Foreign currency adjustments | 536 | 556 | 556 | 556 | (20) | ||||
Impact of foreign exchange contracts, net | (214) | (214) | (214) | (214) | |||||
Balance at Jun. 30, 2019 | $ 1,069,087 | $ 1,210 | $ 926,838 | $ 513,130 | $ (45,216) | $ 1,395,962 | $ (327,086) | $ 1,068,876 | $ 211 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash flows used in operating activities: | ||
Net income | $ 17,716 | $ 26,885 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Depreciation and amortization expense | 43,225 | 40,812 |
Amortization of deferred financing costs and original issuance discounts | 2,289 | 2,766 |
Provision for doubtful accounts | 596 | 304 |
Deferred income tax (benefit) expense | (10,779) | 1,443 |
Deferred rent | 1,155 | |
Change in operating lease liability/asset | (21,406) | |
Undistributed income in equity method investments | (202) | (301) |
(Gain) loss on disposal of assets | (59,087) | 24 |
Store impairment and restructuring charges | 23,243 | |
Non-employee equity based compensation | 258 | 365 |
Stock option expense | 741 | 942 |
Restricted stock units expense – time-based | 933 | 252 |
Restricted stock units expense – performance-based | 476 | 593 |
Directors – non-cash compensation | 165 | 59 |
Changes in operating assets and liabilities, net of effects of acquired businesses: | ||
Decrease in accounts receivable | 6,588 | 8,791 |
Increase in inventories | (31,145) | (68,741) |
Increase in prepaid expenses and other current assets | (4,333) | (9,137) |
Decrease in accounts payable, accrued expenses and income taxes payable | (71,438) | (29,220) |
Net cash used in operating activities | (105,913) | (23,008) |
Cash flows provided by (used in) investing activities: | ||
Cash paid in connection with acquisitions, net of cash acquired | (545) | (21,325) |
Capital expenditures | (31,098) | (44,406) |
Proceeds from disposal of property and equipment | 113,799 | 21 |
Net cash provided by (used in) investing activities | 82,156 | (65,710) |
Cash flows provided by financing activities: | ||
Repayment of loans, notes payable and long-term obligations | (148,526) | (26,062) |
Proceeds from loans, notes payable and long-term obligations | 157,440 | 112,293 |
Stock repurchases | (156) | |
Exercise of stock options | 1,088 | 482 |
Debt issuance costs | (343) | (56) |
Net cash provided by financing activities | 9,503 | 86,657 |
Effect of exchange rate changes on cash and cash equivalents | 2,166 | (780) |
Net decrease in cash and cash equivalents and restricted cash | (12,088) | (2,841) |
Cash and cash equivalents and restricted cash at beginning of period | 59,219 | 54,408 |
Cash and cash equivalents and restricted cash at end of period | 47,131 | 51,567 |
Supplemental disclosure of cash flow information: | ||
Cash paid during the period for interest | 57,503 | 49,489 |
Cash paid during the period for income taxes, net of refunds | $ 31,924 | $ 46,617 |
Description of Business
Description of Business | 6 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | Note 1 – Description of Business Party City Holdco Inc. (the “Company” or “Party City Holdco”) is 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, gifts and stationery. The Company’s retail operations include over 900 specialty retail party supply stores (including franchise stores) in the United States and Canada, operating under the name Party City, e-commerce 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. |
Basis of Presentation and Recen
Basis of Presentation and Recently Issued Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Recently Issued Accounting Pronouncements | Note 2 – Basis of Presentation and Recently Issued Accounting Pronouncements The unaudited condensed consolidated financial statements of the Company include the accounts of the Company and its majority-owned and controlled entities. All intercompany balances and transactions have been eliminated in consolidation. The unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information. Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring items) considered necessary for a fair presentation have been included in the unaudited condensed consolidated financial statements. The majority of our retail operations define a fiscal year (“Fiscal Year”) as the 52 53 31 st of each year and define fiscal quarters (“Fiscal Quarter”) as the four interim 13 53-week 14 Operating results for interim periods are not necessarily indicative of the results to be expected for the year ending December 31, 2019. Our business is subject to substantial seasonal variations as our retail segment has historically realized a significant portion of its net sales, cash flows and net income in the fourth quarter of each year, principally due to its Halloween season sales in October and, to a lesser extent, other year-end Recently Issued Accounting Pronouncements In June 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2018-07, non-employee paid-in In August 2017, the FASB issued ASU 2017-12, In June 2016, the FASB issued ASU 2016-13, In February 2016, the FASB issued ASU 2016-02, The Company adopted the new lease standard during the first quarter of 2019 and, to the extent required by the pronouncement, recognized a right of use asset and liability for all of its operating lease arrangements with terms of greater than twelve months. See the Company’s June 30, 2019 consolidated balance sheet for the impact of such adoption. The pronouncement provided companies with a transition option under which they could opt to continue to apply legacy lease guidance in comparative periods. The Company elected such option. The Company’s December 31, 2018 consolidated balance sheet includes a $74,464 deferred rent liability in other long-term liabilities and a $7,170 deferred rent liability in accrued expenses. In the Company’s June 30, 2019 consolidated balance sheet, such accounts reduce the operating lease asset. Additionally, in the Company’s December 31, 2018 consolidated balance sheet, other intangible assets, net, includes a $3,904 intangible asset related to favorable leases and prepaid expenses and other current assets includes a $2,552 asset related to capitalized broker costs. In the Company’s June 30, 2019 consolidated balance sheet, such assets are included in the operating lease asset. The pronouncement had no impact on the Company’s consolidated statement of operations and comprehensive income (loss) and it did not impact the Company’s compliance with its debt covenants. Additionally, the standard requires companies to make certain disclosures. See Note 17. |
Store Impairment and Restructur
Store Impairment and Restructuring Charges | 6 Months Ended |
Jun. 30, 2019 | |
Restructuring and Related Activities [Abstract] | |
Store Impairment and Restructuring Charges | Note 3 – Store Impairment and Restructuring Charges Each year, the Company typically closes approximately 10 Party City stores as part of its typical network rationalization process and in response to ongoing consumer, market and economic changes that naturally arise in the business. During the six months ended June 30, 2019, after careful consideration and evaluation of the store locations, the Company made the decision to accelerate the optimization of its store portfolio with the closure of approximately 55 stores which are primarily located in close proximity to other Party City stores. These closings should provide the Company with capital flexibility to expand into underserved markets. In conjunction with the store optimization program, during the three and six months ended June 30, 2019, the Company recorded the following charges: Three Months 2019 Six Months 2019 Inventory reserves $ 3,656 $ 21,285 Operating lease asset impairment 940 14,149 Property, plant and equipment impairment 541 4,680 Labor and other costs incurred closing stores 3,753 3,753 Severance — 661 Total $ 8,890 $ 44,528 Such amounts represent the Company’s best estimate of the total charges that are expected to be recorded for such items. When the Company closes the stores, it will record charges for common area maintenance, insurance and taxes to be paid subsequent to such closures in accordance with the stores’ lease agreements. However, such amounts are expected to be immaterial. Additionally, the Company will continue to incur costs while moving inventory, cleaning the stores and returning them to their original condition. Such costs are also expected to be immaterial. The fair values of the operating lease assets and property, plant and equipment were determined based on estimated future discounted cash flows for such assets using market participant assumptions, including data on the ability to sub-lease The charge for inventory reserves related to both an estimate of the inventory that will be disposed following the closures of the stores and an estimate of inventory that will be sold below cost prior to such closures. The charge for inventory reserves was recorded in cost of sales in the Company’s statement of operations and comprehensive income (loss). The other charges were recorded in Store impairment and restructuring charges in the Company’s statement of operations and comprehensive income (loss). |
Sale_Leaseback Transaction
Sale/Leaseback Transaction | 6 Months Ended |
Jun. 30, 2019 | |
Sales Leaseback Transaction Disclosure [Abstract] | |
Sale/Leaseback Transaction | Note 4 – Sale/Leaseback Transaction In June 2019, the Company sold its main distribution center in Chester, New York, its metallic balloons manufacturing facility in Eden Prairie, Minnesota and its injection molded plastics manufacturing facility in Los Lunas, New Mexico. Simultaneously, the Company entered into twenty year leases for each of the facilities. The aggregate sale price was $128,000 and, during the three months ended June 30, 2019, the Company recorded a $58,381 gain on the sale, net of transaction costs, in the Company’s condensed consolidated statement of operations and comprehensive income. Under the terms of the lease agreements, the Company will pay total rent of $8,320 during the first year and the annual rent will increase by 2% thereafter. The Chester and Eden Prairie leases are being accounted for as operating leases and the sale of such properties is included in the gain above. However, for the Los Lunas property, the present value of the lease payments is greater than substantially all of the fair value of the assets. Therefore, the lease is a finance lease and sale accounting treatment is prohibited. As such, the Company is accounting for the $12,080 of proceeds as a finance lease and has recorded such amount in long-term obligations in its June 30, 2019 condensed consolidated balance sheet. In conjunction with the sale/leaseback transaction, during June 2019, the Company amended its Term Loan Credit Agreement. The amendment required the Company to use half of the proceeds from the transaction, net of costs, to paydown part of the outstanding balance under such debt agreement. Additionally, the amendment requires the Company to pay an immaterial “consent fee” to the lenders. As the Term Loan Credit Agreement is a loan syndication, the Company assessed, on a creditor-by-creditor basis, whether the amendment should be accounted for as an extinguishment or a modification. The Company concluded that, for each creditor, the amendment should be accounted for as a modification. Therefore, no capitalized deferred financing costs or original issuance discounts were written off in conjunction with the amendment. During June 2019, the Company used proceeds from the sale (net of costs) of $125,864 to paydown outstanding debt. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 5 – Inventories Inventories consisted of the following: June 30, 2019 December 31, 2018 Finished goods $ 738,404 $ 706,327 Raw materials 33,030 33,423 Work in process 16,663 16,288 $ 788,097 $ 756,038 Inventories are valued at the lower of cost or net realizable value. The Company principally determines the cost of inventory using the weighted average method. The Company estimates retail inventory shrinkage for the period between physical inventory dates on a store-by-store |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 6 – Income Taxes The effective income tax rate for the six months ended June 30, 2019, 23.5%, is higher than the statutory rate of 21.0% primarily due to impact of state taxes on the Company’s estimated effective income tax rate for full-year 2019. |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Loss | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Loss | Note 7 – Changes in Accumulated Other Comprehensive Loss The changes in accumulated other comprehensive loss consisted of the following: Three Months Ended June 30, 2019 Foreign Currency Adjustments Impact of Foreign Exchange Contracts, Net of Taxes Total, Net of Taxes Balance at March 31, 2019 $ (45,900 ) $ 342 $ (45,558 ) Other comprehensive income (loss) before reclassifications, net of tax 556 (3 ) 553 Gains reclassified from accumulated other comprehensive loss to the condensed consolidated statement of operations and comprehensive income, net of income tax — (211 ) (211 ) Net current-period other comprehensive income (loss) 556 (214 ) 342 Balance at June 30, 2019 $ (45,344 ) $ 128 $ (45,216 ) Three Months Ended June 30, 2018 Foreign Currency Adjustments Impact of Foreign Exchange Contracts, Net of Taxes Total, Net of Taxes Balance at March 31, 2018 $ (30,204 ) $ (396 ) $ (30,600 ) Other comprehensive (loss) income before reclassifications (10,713 ) 1,398 (9,315 ) Loss reclassified from accumulated other comprehensive loss to the condensed consolidated statement of operations and comprehensive income — 118 118 Net current-period other comprehensive (loss) income (10,713 ) 1,516 (9,197 ) Balance at June 30, 2018 $ (40,917 ) $ 1,120 $ (39,797 ) Six Months Ended June 30, 2019 Foreign Currency Adjustments Impact of Foreign Exchange Contracts, Net of Taxes Total, Net of Taxes Balance at December 31, 2018 $ (50,056 ) $ 855 $ (49,201 ) Other comprehensive income before reclassifications, net of tax 4,712 60 4,772 Gains reclassified from accumulated other comprehensive loss to the condensed consolidated statement of operations and comprehensive income, net of income tax — (787 ) (787 ) Net current-period other comprehensive income (loss) 4,712 (727 ) 3,985 Balance at June 30, 2019 $ (45,344 ) $ 128 $ (45,216 ) Six Months Ended June 30, 2018 Foreign Currency Adjustments Impact of Foreign Exchange Contracts, Net of Taxes Total, Net of Taxes Balance at December 31, 2017 $ (35,610 ) $ (208 ) $ (35,818 ) Other comprehensive (loss) income before reclassifications, net of income tax (5,307 ) 971 (4,336 ) Loss reclassified from accumulated other comprehensive loss to the condensed consolidated statement of operations and comprehensive income, net of income tax — 357 357 Net current-period other comprehensive (loss) income (5,307 ) 1,328 (3,979 ) Balance at June 30, 2018 $ (40,917 ) $ 1,120 $ (39,797 ) |
Capital Stock
Capital Stock | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Capital Stock | Note 8 – Capital Stock At June 30, 2019, the Company’s authorized capital stock consisted of 300,000,000 shares of $0.01 par value common stock and 15,000,000 shares of $0.01 par value preferred stock. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | Note 9 – Segment Information Industry Segments The Company has two identifiable business segments. The Wholesale segment designs, manufactures, sources and distributes decorated party goods, including paper and plastic tableware, metallic and latex balloons, Halloween and other costumes, accessories, novelties, gifts and stationery throughout the world. The Retail segment operates specialty retail party supply stores in the United States and Canada, principally under the names Party City and Halloween City, and it operates e-commerce websites, principally through the domain name Partycity.com. The Retail segment also franchises both individual stores and franchise areas throughout the United States, Mexico and Puerto Rico, principally under the name Party City. The Company’s industry segment data for the three months ended June 30, 2019 and June 30, 2018 was as follows: During June 2019, the Company’s Wholesale segment sold its main distribution center in Chester, New York, its metallic balloons manufacturing facility in Eden Prairie, Minnesota and its injection molded plastics manufacturing facility in Los Lunas, New Mexico. The aggregate sale price was $ 128,000 During the three and six months ended June 30, 2019, the Company executed a store optimization program under which the Company plans to close approximately 55 Party City stores during the course of 2019. In conjunction with the program, during the three months and six months ended June 30, 2019, the Company’s Retail segment recorded charges of $8,890 and $44,528, respectively. See Note 3 for further detail. Wholesale Retail Consolidated Three Months Ended June 30, 2019 Revenues: Net sales $ 289,067 $ 423,157 $ 712,224 Royalties and franchise fees — 2,189 2,189 Total revenues 289,067 425,346 714,413 Eliminations (150,522 ) — (150,522 ) Net revenues $ 138,545 $ 425,346 $ 563,891 Income from operations $ 60,297 $ 37,188 $ 97,485 Interest expense, net 30,176 Other expense, net 3,342 Income before income taxes $ 63,967 Wholesale Retail Consolidated Three Months Ended June 30, 2018 Revenues: Net sales $ 285,733 $ 411,353 $ 697,086 Royalties and franchise fees — 2,910 2,910 Total revenues 285,733 414,263 699,996 Eliminations (138,985 ) — (138,985 Net revenues $ 146,748 $ 414,263 $ 561,011 Income from operations $ 11,148 $ 54,303 $ 65,451 Interest expense, net 25,501 Other expense, net 2,532 Income before income taxes $ 37,418 The Company’s industry segment data for the six months ended June 30, 2019 and June 30, 2018 was as follows: Wholesale Retail Consolidated Six Months Ended June 30, 2019 Revenues: Net sales $ 579,368 $ 801,310 $ 1,380,678 Royalties and franchise fees — 4,203 4,203 Total revenues 579,368 805,513 1,384,881 Eliminations (307,874 ) — (307,874 ) Net revenues $ 271,494 $ 805,513 $ 1,077,007 Income from operations $ 62,520 $ 24,668 $ 87,188 Interest expense, net 59,433 Other expense, net 4,596 Income before income taxes $ 23,159 Wholesale Retail Consolidated Six Months Ended June 30, 2018 Revenues: Net sales $ 563,560 $ 774,929 $ 1,338,489 Royalties and franchise fees — 5,626 5,626 Total revenues 563,560 780,555 1,344,115 Eliminations (275,280 ) — (275,280 ) Net revenues $ 288,280 $ 780,555 $ 1,068,835 Income from operations $ 16,496 $ 71,211 $ 87,707 Interest expense, net 48,776 Other expense, net 3,380 Income before income taxes $ 35,551 During the three months ended March 31, 2019, the Company adopted ASU 2016-02, |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 10 – Commitments and Contingencies The Company is a party to certain claims and litigation in the ordinary course of business. The Company does not believe these proceedings will result, individually or in the aggregate, in a material adverse effect on its financial condition or future results of operations. |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Note 11 – 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 Company did not utilize interest rate swap agreements during the six months ended June 30, 2019 and the six months ended June 30, 2018. Foreign Exchange Risk Management A portion of the Company’s cash flows are 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 The foreign currency exchange contracts are reflected in the condensed consolidated balance sheets at fair value. At June 30, 2019 and December 31, 2018, 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 2020. The following table displays the fair values of the Company’s derivatives at June 30, 2019 and December 31, 2018: Derivative Assets Derivative Liabilities Balance Sheet Line Fair Value Balance Sheet Line Fair Value Balance Sheet Line Fair Value Balance Sheet Line Fair Value Derivative Instrument June 30, 2019 December 31, 2018 June 30, 2019 December 31, 2018 Foreign Exchange Contracts (a ) PP $ 58 (a ) PP $ 115 (b ) AE $ 7 (b ) AE $ — (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 June 30, 2019 and December 31, 2018: Derivative Instrument June 30, 2019 December 31, 2018 Foreign Exchange Contracts $ 6,200 $ 10,942 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 12 – 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% 1,890 During 2017, the Company and Ampology, a subsidiary of Trivergence, reached an agreement to form a new legal entity, Kazzam, LLC (“Kazzam”), for the purpose of designing, developing and launching an online exchange platform for party-related services. As part of Ampology’s compensation for designing, developing and launching the exchange platform, Ampology received an ownership interest in Kazzam. The interest 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 liability is adjusted to the greater of the current fair value or the original fair value at the time at which the ownership interest was issued (adjusted for any subsequent changes in the ownership interest percentage). As of both June 30, 2019 and December 31, 2018, the original value was greater and, therefore, the liabilities are not included in the table below. The following table shows assets and liabilities as of June 30, 2019 that are measured at fair value on a recurring basis: Level 1 Level 2 Level 3 Total as of June 30, 2019 Derivative assets $ — $ 58 $ — $ 58 Derivative liabilities — 7 — 7 The following table shows assets and liabilities as of December 31, 2018 that are measured at fair value on a recurring basis: Level 1 Level 2 Level 3 Total as of December 31, 2018 Derivative assets $ — $ 115 $ — $ 115 Derivative liabilities — — — — Punchbowl put liability — — 316 316 The majority of the Company’s non-financial instruments, which include goodwill, intangible assets, lease assets, inventories and property, plant and equipment, are not required to be carried at fair value on a recurring basis. However, if certain triggering events occur (or at least annually for goodwill and indefinite-lived intangible assets), a non-financial instrument is required to be evaluated for impairment. If the Company determines that the non-financial instrument is impaired, the Company would be required to write down the non-financial instrument to its fair value. During the six months ended June 30, 2019, the Company initiated a store optimization program under which it plans to close approximately 55 Party City stores during the course of 2019. In conjunction with the program, during the six months ended June 30, 2019, the Company recorded impairment charges for its property, plant and equipment and operating lease assets. See Note 3 for further detail. The carrying amounts for cash and cash equivalents, accounts receivable, prepaid expenses and other current assets, accounts payable, accrued expenses and other current liabilities approximated fair value at June 30, 2019 because of the short-term maturities of the instruments and/or their variable rates of interest. The carrying amounts and fair values of borrowings under the Term Loan Credit Agreement and the Company’s senior notes as of June 30, 2019 are as follows: June 30, 2019 Carrying Amount Fair Value Term Loan Credit Agreement $ 784,994 $ 787,913 6.125% Senior Notes – due 2023 346,603 352,625 6.625% Senior Notes – due 2026 494,524 485,000 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 June 30, 2019 based on the discounted future cash flows of each instrument at rates currently offered for similar debt instruments of comparable maturity. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 13 – Earnings Per Share Basic earnings per share are computed by dividing net income attributable to common shareholders of Party City Holdco Inc. by the weighted average number of common shares outstanding for the period. Diluted earnings per share are calculated based on the weighted average number of outstanding common shares plus the dilutive effect of stock options and warrants, as if they were exercised, and restricted stock units, as if they vested. A reconciliation between basic and diluted income (loss) per share is as follows: Three Months Ended June 30, 2019 Three Months Ended June 30, 2018 Six Months Ended June 30, 2019 Six Months Ended June 30, 2018 Net income attributable to common shareholders of Party City Holdco Inc. $ 48,074 $ 28,487 $ 17,856 $ 27,354 Weighted average shares - Basic 93,293,176 96,453,884 93,233,865 96,426,235 Effect of dilutive securities: Warrants — — — — Restricted stock units 19,228 — 23,628 — Stock options 391,142 1,234,350 534,270 1,243,074 Weighted average shares - Diluted 93,703,546 97,688,233 93,791,763 97,669,309 Net income per share attributable to common shareholders of Party City Holdco Inc. - Basic $ 0.52 $ 0.30 $ 0.19 $ 0.28 Net income per share attributable to common shareholders of Party City Holdco Inc. - Diluted $ 0.51 $ 0.29 $ 0.19 $ 0.28 During the three months ended June 30, 2019 and June 30, 2018, 2,118,443 stock options and 2,494,428 stock options, respectively, were excluded from the calculation of diluted earnings per share as they were anti-dilutive. Additionally, during the three months ended June 30, 2019 and June 30, 2018, 596,000 warrants and 596,000 warrants, respectively, were excluded from the calculation of diluted earnings per share as they were anti-dilutive. Further, during the three months ended June 30, 2019 and June 30, 2018, 199,978 restricted stock units and 201,270 restricted stock units, respectively, were excluded from the calculation of diluted earnings per share as they were anti-dilutive. During the six months ended June 30, 2019 and June 30, 2018, 2,118,443 stock options and 2,494,428 stock options, respectively, were excluded from the calculation of diluted earnings per share as they were anti-dilutive. Additionally, during the six months ended June 30, 2019 and June 30, 2018, 596,000 warrants and 596,000 warrants, respectively, were excluded from the calculation of diluted earnings per share as they were anti-dilutive. Further, during the six months ended June 30, 2019 and June 30, 2018, 199,978 restricted stock units and 201,270 restricted stock units, respectively, were excluded from the calculation of diluted earnings per share as they were anti-dilutive. |
Current and Long-Term Obligatio
Current and Long-Term Obligations | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Current and Long-Term Obligations | Note 14 – Current and Long-Term Obligations Long-term obligations at June 30, 2019 and December 31, 2018 consisted of the following: June 30, 2019 December 31, 2018 Term Loan Credit Agreement $ 784,994 $ 791,135 6.125% Senior Notes – due 2023 346,603 346,191 6.625% Senior Notes – due 2026 494,524 494,138 Finance lease obligations 15,445 3,815 Total long-term obligations 1,641,566 1,635,279 Less: current portion (76,251 ) (13,316 ) Long-term obligations, excluding current portion $ 1,565,315 $ 1,621,963 Prior to April 2019, the Company had a $540,000 asset-based revolving credit facility (with a seasonal increase to $640,000 during a certain period of each calendar year) (“ABL Facility”), which matures during August 2023 During April 2019, the Company amended the ABL Facility. Such amendment removed the seasonal component and made the facility a $640,000 facility on a year-round basis. During June 2019, in conjunction with a sale/leaseback transaction, the Company amended its Term Loan Credit Agreement and financed its Los Lunas, New Mexico facility via a finance lease, which is included in the table above. See Note 4 for further detail. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 6 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Note 15 – Revenue from Contracts with Customers The following table summarizes revenue from contracts with customers for the three and six months ended June 30, 2019 and June 30, 2018: Three Months Ended June 30, 2019 Three Months Ended June 30, 2018 Six Months Ended June 30, 2019 Six Months Ended June 30, 2018 Retail Net Sales: North American Party City Stores $ 387,308 $ 376,222 $ 733,448 $ 707,067 Global E-commerce 35,364 35,131 67,172 67,862 Other 485 — 690 — Total Retail Net Sales $ 423,157 $ 411,353 $ 801,310 $ 774,929 Royalties and Franchise Fees 2,189 2,910 4,203 5,626 Total Retail Revenue $ 425,346 $ 414,263 $ 805,513 $ 780,555 Wholesale Net Sales: Domestic $ 74,766 $ 79,397 $ 148,587 $ 158,956 International 63,779 67,351 122,907 129,324 Total Wholesale Net Sales $ 138,545 $ 146,748 $ 271,494 $ 288,280 Total Consolidated Revenue $ 563,891 $ 561,011 $ 1,077,007 $ 1,068,835 |
Cash, Cash Equivalents and Rest
Cash, Cash Equivalents and Restricted Cash | 6 Months Ended |
Jun. 30, 2019 | |
Text Block [Abstract] | |
Cash, Cash Equivalents and Restricted Cash | Note 16 – Cash, Cash Equivalents and Restricted Cash The Company’s June 30, 2019 consolidated balance sheet included $47,131 of cash and cash equivalents and $0 of restricted cash and the Company’s December 31, 2018 consolidated balance sheet included $58,909 of cash and cash equivalents and $310 of restricted cash. The Company’s June 30, 2018 consolidated balance sheet included $51,461 of cash and cash equivalents and $106 of restricted cash and the Company’s December 31, 2017 consolidated balance sheet included $54,291 of cash and cash equivalents and $117 of restricted cash. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Leases | Note 17 – Leases In February 2016, the FASB issued ASU 2016-02, The FASB has provided companies with a transition option under which they can opt to continue to apply the legacy guidance, including its disclosure requirements, in the comparative periods presented in the year during which they adopt the new lease standard. Entities that elect the option only make annual disclosures for the comparative periods as legacy guidance does not require interim disclosures. The Company has elected this transition option. Practical Expedients/Policy Elections Under the new standard, companies may elect the following practical expedients, which must be elected as a package and applied consistently to all leases: 1. An entity need not reassess whether any expired or existing contracts are or contain leases. 2. An entity need not reassess the lease classification for any expired or existing leases. 3. An entity need not reassess initial direct costs for any existing leases. The Company elected this package of practical expedients. Under the new standard, an entity may also elect a practical expedient to use hindsight in determining the lease term and in assessing impairment of the entity’s right-of-use Additionally, under the new standard, lessees can make an accounting policy election (by class of underlying asset to which the right of use relates) to apply accounting similar to legacy accounting to leases that meet the new standard’s definition of a “short-term lease” (a lease that, at the commencement date, has a lease term of twelve months or less and does not include an option to purchase the underlying asset that the lessee is reasonably certain to exercise). The Company has made this election for all classes of underlying assets. Further, the new standard provides a practical expedient that permits lessees to make an accounting policy election (by class of underlying asset) to account for each separate lease component of a contract and its associated non-lease Lease Population The Company’s lease portfolio is primarily comprised of real estate leases for its permanent Party City stores. The Company also leases manufacturing facilities, distribution facilities, warehouse space and office space. Additionally, the Company enters into short leases (generally less than four months) in order to operate its temporary stores. Further, the Company enters into leases of equipment, copiers, printers and automobiles. Substantially all of the Company’s leases are operating leases. The Company’s finance leases are immaterial. The right-of-use The Company’s sub-leases Variable Lease Payments A limited number of the Company’s store leases require rent to be paid based on sales levels. The Company’s cost for such leases is immaterial. Variable lease consideration is not included in lease payments until the contingency is resolved. Additionally, for most store leases, the Company pays variable taxes and insurance. Many of the Company’s store leases, and certain of the Company’s other leases, contain renewal options. However, the renewal periods are generally not included in the right-of-use Discount Rates The Company is unable to determine the discount rates that are implicit in its operating leases. Therefore, for such leases, the Company is utilizing its incremental borrowing rate. For leases that existed as of January 1, 2019, the Company determined the applicable incremental borrowing rates for such leases based on the remaining lease terms for the leases as of such date. Quantitative Disclosures During the three months and six months ended June 30, 2019, the Company’s operating lease cost was $49,152 and $97,447, respectively. Such amount excludes impairment charges recorded in conjunction with the Company’s store optimization program (see Note 3). The Company’s variable lease cost during the three and six months ended June 30, 2019 was $8,645 and $17,186, respectively. During the three and six months ended June 30, 2019, cash paid for amounts included in the measurement of operating lease liabilities was $48,937 and $115,451, respectively. During the three and six months ended June 30, 2019, right-of-use As of June 30, 2019, the weighted-average remaining lease term for operating leases was 7 years and the weighted-average discount rate for operating leases was 6.8%. As of June 30, 2019, the future cash flows for the Company’s operating leases were: Six months ended December 31, 2019 $ 89,895 2020 201,578 2021 185,305 2022 165,815 2023 137,724 Thereafter 477,022 Total Undiscounted Cash Flows $ 1,257,339 Less: Interest (317,891 ) Total Operating Lease Liability 939,448 Less: Current Portion of Operating Lease Liability (145,472 ) Long-Term Portion of Operating Lease Liability $ 793,976 |
Subsequent Event
Subsequent Event | 6 Months Ended |
Jun. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Event | Note 18 – Subsequent Event During August 2019, the Company reached an agreement with a Canadian-based retailer under which the retailer will acquire the Company’s Canadian-based Party City stores for 174,000 10 |
Basis of Presentation and Rec_2
Basis of Presentation and Recently Issued Accounting Pronouncements (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In June 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2018-07, non-employee paid-in In August 2017, the FASB issued ASU 2017-12, In June 2016, the FASB issued ASU 2016-13, In February 2016, the FASB issued ASU 2016-02, The Company adopted the new lease standard during the first quarter of 2019 and, to the extent required by the pronouncement, recognized a right of use asset and liability for all of its operating lease arrangements with terms of greater than twelve months. See the Company’s June 30, 2019 consolidated balance sheet for the impact of such adoption. The pronouncement provided companies with a transition option under which they could opt to continue to apply legacy lease guidance in comparative periods. The Company elected such option. The Company’s December 31, 2018 consolidated balance sheet includes a $74,464 deferred rent liability in other long-term liabilities and a $7,170 deferred rent liability in accrued expenses. In the Company’s June 30, 2019 consolidated balance sheet, such accounts reduce the operating lease asset. Additionally, in the Company’s December 31, 2018 consolidated balance sheet, other intangible assets, net, includes a $3,904 intangible asset related to favorable leases and prepaid expenses and other current assets includes a $2,552 asset related to capitalized broker costs. In the Company’s June 30, 2019 consolidated balance sheet, such assets are included in the operating lease asset. The pronouncement had no impact on the Company’s consolidated statement of operations and comprehensive income (loss) and it did not impact the Company’s compliance with its debt covenants. Additionally, the standard requires companies to make certain disclosures. See Note 17. |
Store Impairment and Restruct_2
Store Impairment and Restructuring Charges (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs [Table Text Block] | In conjunction with the store optimization program, during the three and six months ended June 30, 2019, the Company recorded the following charges: Three Months 2019 Six Months 2019 Inventory reserves $ 3,656 $ 21,285 Operating lease asset impairment 940 14,149 Property, plant and equipment impairment 541 4,680 Labor and other costs incurred closing stores 3,753 3,753 Severance — 661 Total $ 8,890 $ 44,528 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consisted of the following: June 30, 2019 December 31, 2018 Finished goods $ 738,404 $ 706,327 Raw materials 33,030 33,423 Work in process 16,663 16,288 $ 788,097 $ 756,038 |
Changes in Accumulated Other _2
Changes in Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Loss | Note 7 – Changes in Accumulated Other Comprehensive Loss The changes in accumulated other comprehensive loss consisted of the following: Three Months Ended June 30, 2019 Foreign Currency Adjustments Impact of Foreign Exchange Contracts, Net of Taxes Total, Net of Taxes Balance at March 31, 2019 $ (45,900 ) $ 342 $ (45,558 ) Other comprehensive income (loss) before reclassifications, net of tax 556 (3 ) 553 Gains reclassified from accumulated other comprehensive loss to the condensed consolidated statement of operations and comprehensive income, net of income tax — (211 ) (211 ) Net current-period other comprehensive income (loss) 556 (214 ) 342 Balance at June 30, 2019 $ (45,344 ) $ 128 $ (45,216 ) Three Months Ended June 30, 2018 Foreign Currency Adjustments Impact of Foreign Exchange Contracts, Net of Taxes Total, Net of Taxes Balance at March 31, 2018 $ (30,204 ) $ (396 ) $ (30,600 ) Other comprehensive (loss) income before reclassifications (10,713 ) 1,398 (9,315 ) Loss reclassified from accumulated other comprehensive loss to the condensed consolidated statement of operations and comprehensive income — 118 118 Net current-period other comprehensive (loss) income (10,713 ) 1,516 (9,197 ) Balance at June 30, 2018 $ (40,917 ) $ 1,120 $ (39,797 ) Six Months Ended June 30, 2019 Foreign Currency Adjustments Impact of Foreign Exchange Contracts, Net of Taxes Total, Net of Taxes Balance at December 31, 2018 $ (50,056 ) $ 855 $ (49,201 ) Other comprehensive income before reclassifications, net of tax 4,712 60 4,772 Gains reclassified from accumulated other comprehensive loss to the condensed consolidated statement of operations and comprehensive income, net of income tax — (787 ) (787 ) Net current-period other comprehensive income (loss) 4,712 (727 ) 3,985 Balance at June 30, 2019 $ (45,344 ) $ 128 $ (45,216 ) Six Months Ended June 30, 2018 Foreign Currency Adjustments Impact of Foreign Exchange Contracts, Net of Taxes Total, Net of Taxes Balance at December 31, 2017 $ (35,610 ) $ (208 ) $ (35,818 ) Other comprehensive (loss) income before reclassifications, net of income tax (5,307 ) 971 (4,336 ) Loss reclassified from accumulated other comprehensive loss to the condensed consolidated statement of operations and comprehensive income, net of income tax — 357 357 Net current-period other comprehensive (loss) income (5,307 ) 1,328 (3,979 ) Balance at June 30, 2018 $ (40,917 ) $ 1,120 $ (39,797 ) |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Company's Industry Segment Data | The Company’s industry segment data for the three months ended June 30, 2019 and June 30, 2018 was as follows: Wholesale Retail Consolidated Three Months Ended June 30, 2019 Revenues: Net sales $ 289,067 $ 423,157 $ 712,224 Royalties and franchise fees — 2,189 2,189 Total revenues 289,067 425,346 714,413 Eliminations (150,522 ) — (150,522 ) Net revenues $ 138,545 $ 425,346 $ 563,891 Income from operations $ 60,297 $ 37,188 $ 97,485 Interest expense, net 30,176 Other expense, net 3,342 Income before income taxes $ 63,967 Wholesale Retail Consolidated Three Months Ended June 30, 2018 Revenues: Net sales $ 285,733 $ 411,353 $ 697,086 Royalties and franchise fees — 2,910 2,910 Total revenues 285,733 414,263 699,996 Eliminations (138,985 ) — (138,985 Net revenues $ 146,748 $ 414,263 $ 561,011 Income from operations $ 11,148 $ 54,303 $ 65,451 Interest expense, net 25,501 Other expense, net 2,532 Income before income taxes $ 37,418 The Company’s industry segment data for the six months ended June 30, 2019 and June 30, 2018 was as follows: Wholesale Retail Consolidated Six Months Ended June 30, 2019 Revenues: Net sales $ 579,368 $ 801,310 $ 1,380,678 Royalties and franchise fees — 4,203 4,203 Total revenues 579,368 805,513 1,384,881 Eliminations (307,874 ) — (307,874 ) Net revenues $ 271,494 $ 805,513 $ 1,077,007 Income from operations $ 62,520 $ 24,668 $ 87,188 Interest expense, net 59,433 Other expense, net 4,596 Income before income taxes $ 23,159 Wholesale Retail Consolidated Six Months Ended June 30, 2018 Revenues: Net sales $ 563,560 $ 774,929 $ 1,338,489 Royalties and franchise fees — 5,626 5,626 Total revenues 563,560 780,555 1,344,115 Eliminations (275,280 ) — (275,280 ) Net revenues $ 288,280 $ 780,555 $ 1,068,835 Income from operations $ 16,496 $ 71,211 $ 87,707 Interest expense, net 48,776 Other expense, net 3,380 Income before income taxes $ 35,551 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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 June 30, 2019 and December 31, 2018: Derivative Assets Derivative Liabilities Balance Sheet Line Fair Value Balance Sheet Line Fair Value Balance Sheet Line Fair Value Balance Sheet Line Fair Value Derivative Instrument June 30, 2019 December 31, 2018 June 30, 2019 December 31, 2018 Foreign Exchange Contracts (a ) PP $ 58 (a ) PP $ 115 (b ) AE $ 7 (b ) AE $ — (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 June 30, 2019 and December 31, 2018: Derivative Instrument June 30, 2019 December 31, 2018 Foreign Exchange Contracts $ 6,200 $ 10,942 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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 June 30, 2019 that are measured at fair value on a recurring basis: Level 1 Level 2 Level 3 Total as of June 30, 2019 Derivative assets $ — $ 58 $ — $ 58 Derivative liabilities — 7 — 7 The following table shows assets and liabilities as of December 31, 2018 that are measured at fair value on a recurring basis: Level 1 Level 2 Level 3 Total as of December 31, 2018 Derivative assets $ — $ 115 $ — $ 115 Derivative liabilities — — — — Punchbowl put liability — — 316 316 |
Summary of Carrying Amount and Fair Value | The carrying amounts and fair values of borrowings under the Term Loan Credit Agreement and the Company’s senior notes as of June 30, 2019 are as follows: June 30, 2019 Carrying Amount Fair Value Term Loan Credit Agreement $ 784,994 $ 787,913 6.125% Senior Notes – due 2023 346,603 352,625 6.625% Senior Notes – due 2026 494,524 485,000 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Reconciliation Between Basic and Diluted Income Per Share | A reconciliation between basic and diluted income (loss) per share is as follows: Three Months Ended June 30, 2019 Three Months Ended June 30, 2018 Six Months Ended June 30, 2019 Six Months Ended June 30, 2018 Net income attributable to common shareholders of Party City Holdco Inc. $ 48,074 $ 28,487 $ 17,856 $ 27,354 Weighted average shares - Basic 93,293,176 96,453,884 93,233,865 96,426,235 Effect of dilutive securities: Warrants — — — — Restricted stock units 19,228 — 23,628 — Stock options 391,142 1,234,350 534,270 1,243,074 Weighted average shares - Diluted 93,703,546 97,688,233 93,791,763 97,669,309 Net income per share attributable to common shareholders of Party City Holdco Inc. - Basic $ 0.52 $ 0.30 $ 0.19 $ 0.28 Net income per share attributable to common shareholders of Party City Holdco Inc. - Diluted $ 0.51 $ 0.29 $ 0.19 $ 0.28 |
Current and Long-Term Obligat_2
Current and Long-Term Obligations (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Summary of Long-Term Obligations | Long-term obligations at June 30, 2019 and December 31, 2018 consisted of the following: June 30, 2019 December 31, 2018 Term Loan Credit Agreement $ 784,994 $ 791,135 6.125% Senior Notes – due 2023 346,603 346,191 6.625% Senior Notes – due 2026 494,524 494,138 Finance lease obligations 15,445 3,815 Total long-term obligations 1,641,566 1,635,279 Less: current portion (76,251 ) (13,316 ) Long-term obligations, excluding current portion $ 1,565,315 $ 1,621,963 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Revenue from Contracts with Customers | The following table summarizes revenue from contracts with customers for the three and six months ended June 30, 2019 and June 30, 2018: Three Months Ended June 30, 2019 Three Months Ended June 30, 2018 Six Months Ended June 30, 2019 Six Months Ended June 30, 2018 Retail Net Sales: North American Party City Stores $ 387,308 $ 376,222 $ 733,448 $ 707,067 Global E-commerce 35,364 35,131 67,172 67,862 Other 485 — 690 — Total Retail Net Sales $ 423,157 $ 411,353 $ 801,310 $ 774,929 Royalties and Franchise Fees 2,189 2,910 4,203 5,626 Total Retail Revenue $ 425,346 $ 414,263 $ 805,513 $ 780,555 Wholesale Net Sales: Domestic $ 74,766 $ 79,397 $ 148,587 $ 158,956 International 63,779 67,351 122,907 129,324 Total Wholesale Net Sales $ 138,545 $ 146,748 $ 271,494 $ 288,280 Total Consolidated Revenue $ 563,891 $ 561,011 $ 1,077,007 $ 1,068,835 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
The Future Cash flows for The Company's Operating Leases | As of June 30, 2019, the future cash flows for the Company’s operating leases were: Six months ended December 31, 2019 $ 89,895 2020 201,578 2021 185,305 2022 165,815 2023 137,724 Thereafter 477,022 Total Undiscounted Cash Flows $ 1,257,339 Less: Interest (317,891 ) Total Operating Lease Liability 939,448 Less: Current Portion of Operating Lease Liability (145,472 ) Long-Term Portion of Operating Lease Liability $ 793,976 |
Description of Business- Additi
Description of Business- Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2019StoreoutletCountry | |
Minimum [Member] | |
Basis Of Presentation [Line Items] | |
Number stores | outlet | 40,000 |
Number of countries in which products available | Country | 100 |
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 stores | 900 |
United States and Canada [Member] | Minimum [Member] | Halloween City Stores [Member] | |
Basis Of Presentation [Line Items] | |
Number stores | 250 |
United States and Canada [Member] | Maximum [Member] | Halloween City Stores [Member] | |
Basis Of Presentation [Line Items] | |
Number stores | 300 |
Basis of Presentation and Rec_3
Basis of Presentation and Recently Issued Accounting Pronouncements - Additional Information (Detail) - USD ($) $ in Thousands | Jan. 02, 2019 | Jun. 30, 2019 | Dec. 31, 2018 |
Significant Accounting Policies [Line Items] | |||
Amount of the cumulative effect on retained earnings net of related income tax effect. | $ 503 | ||
Increased Additional Paid In Capital | 662 | ||
Increased Deferred Income Tax Asset | $ 159 | ||
Lease Agreements [Member] | |||
Significant Accounting Policies [Line Items] | |||
Decrease infinite lived intangible assets net | $ 3,904 | ||
Accounts Payable and Accrued Liabilities [Member] | |||
Significant Accounting Policies [Line Items] | |||
Decrease in current deferred rent credit | 7,170 | ||
Other Noncurrent Liabilities [Member] | |||
Significant Accounting Policies [Line Items] | |||
Decrease in long term deferred rent credit | 74,464 | ||
Other Current Assets [Member] | |||
Significant Accounting Policies [Line Items] | |||
Prepaid expenses and other current assets | $ 2,552 | ||
Maximum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Retail operations period of fiscal year | 371 days | ||
Retail operations period of fiscal quarter | 98 days | ||
Minimum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Retail operations period of fiscal year | 364 days | ||
Retail operations period of fiscal quarter | 91 days |
Store Impairment and Restruct_3
Store Impairment and Restructuring Charges (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Total | $ 8,890 | $ 44,528 |
Cost of Sales [Member] | ||
Inventory reserves | 3,656 | 21,285 |
Restructuring Charges [Member] | ||
Operating lease asset impairment | 940 | 14,149 |
Property, plant and equipment impairment | 541 | 4,680 |
Labor and other costs incurred closing stores | $ 3,753 | 3,753 |
Severance | $ 661 |
Sale_Leaseback Transaction - Ad
Sale/Leaseback Transaction - Additional Information (Detail) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019USD ($) | Jun. 30, 2019USD ($) | |
Aggregate sale price | $ 128,000 | $ 128,000 |
Gain on the sale net | $ 58,381 | $ 58,381 |
Lease agreement term | Under the terms of the lease agreements, the Company will pay total rent of $8,320 during the first year and the annual rent will increase by 2% thereafter. | |
Total rent payment | $ 8,320 | |
Los Lunas New Mexico facility financing [Member] | ||
Financing from long-term obligations | 12,080 | |
Term Loan Credit Agreement [Member] | Scenario, Plan [Member] | ||
Proceeds from the sale (net of costs) | $ 125,864 |
Inventories- Inventories (Detai
Inventories- Inventories (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 738,404 | $ 706,327 |
Raw materials | 33,030 | 33,423 |
Work in process | 16,663 | 16,288 |
Inventories, net | $ 788,097 | $ 756,038 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2019 | |
Income Taxes [Line Items] | |
U.S. corporate statutory income tax rate | 21.00% |
U.S. corporate income tax rate | 23.50% |
Changes in Accumulated Other _3
Changes in Accumulated Other Comprehensive Loss - Changes in Accumulated and Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | $ 1,043,330 | |||
Ending balance | $ 1,068,876 | 1,068,876 | ||
Foreign Currency Adjustments [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (45,900) | $ (30,204) | (50,056) | $ (35,610) |
Other comprehensive income (loss) before reclassifications, net of income tax | 556 | (10,713) | 4,712 | (5,307) |
Net current-period other comprehensive income (loss) | 556 | (10,713) | 4,712 | (5,307) |
Ending balance | (45,344) | (40,917) | (45,344) | (40,917) |
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | 342 | (396) | 855 | (208) |
Other comprehensive income (loss) before reclassifications, net of income tax | (3) | 1,398 | 60 | 971 |
(Gains) Loss reclassified from accumulated other comprehensive income (loss) to the condensed consolidated statement of operations and comprehensive income (loss), net of income (loss) tax | (211) | 118 | (787) | 357 |
Net current-period other comprehensive income (loss) | (214) | 1,516 | (727) | 1,328 |
Ending balance | 128 | 1,120 | 128 | 1,120 |
Accumulated Other Comprehensive Loss [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (45,558) | (30,600) | (49,201) | (35,818) |
Other comprehensive income (loss) before reclassifications, net of income tax | 553 | (9,315) | 4,772 | (4,336) |
(Gains) Loss reclassified from accumulated other comprehensive income (loss) to the condensed consolidated statement of operations and comprehensive income (loss), net of income (loss) tax | (211) | 118 | (787) | 357 |
Net current-period other comprehensive income (loss) | 342 | (9,197) | 3,985 | (3,979) |
Ending balance | $ (45,216) | $ (39,797) | $ (45,216) | $ (39,797) |
Capital Stock - Additional Info
Capital Stock - Additional Information (Detail) | Jun. 30, 2019$ / sharesshares |
Equity [Abstract] | |
Authorized capital stock | shares | 300,000,000 |
Common stock, par value | $ / shares | $ 0.01 |
Preferred stock, par value | $ / shares | $ 0.01 |
Authorized preferred stock | shares | 15,000,000 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019USD ($)Store | Jun. 30, 2019USD ($)Store | |
Operating lease asset | $ 869,345 | $ 869,345 |
Store Optimization Program Charges | 8,890 | 44,528 |
Gain on the sale net | 58,381 | 58,381 |
Aggregate sale price | 128,000 | 128,000 |
Retail Segment [Member] | Accounting Standards Update 2016-02 [Member] | ||
Operating lease asset | 722,090 | 722,090 |
Wholesale Segment [Member] | ||
Gain on the sale net | 58,381 | |
Wholesale Segment [Member] | Accounting Standards Update 2016-02 [Member] | ||
Operating lease asset | $ 147,256 | $ 147,256 |
Discontinued Operations [Member] | ||
Number of Stores | Store | 55 | 55 |
Segment Information - Schedule
Segment Information - Schedule of Company's Industry Segment Data (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenues: | ||||
Total revenues | $ 563,891 | $ 561,011 | $ 1,077,007 | $ 1,068,835 |
Income (loss) from operations | 97,485 | 65,451 | 87,188 | 87,707 |
Interest expense, net | 30,176 | 25,501 | 59,433 | 48,776 |
Other income (expense), net | 3,342 | 2,532 | 4,596 | 3,380 |
Income before income taxes | 63,967 | 37,418 | 23,159 | 35,551 |
Net Sales [Member] | ||||
Revenues: | ||||
Revenues | 561,702 | 558,101 | 1,072,804 | 1,063,209 |
Royalties and Franchise Fees [Member] | ||||
Revenues: | ||||
Revenues | 2,189 | 2,910 | 4,203 | 5,626 |
Wholesale [Member] | ||||
Revenues: | ||||
Total revenues | 138,545 | 146,748 | 271,494 | 288,280 |
Income (loss) from operations | 60,297 | 11,148 | 62,520 | 16,496 |
Retail [Member] | ||||
Revenues: | ||||
Total revenues | 425,346 | 414,263 | 805,513 | 780,555 |
Income (loss) from operations | 37,188 | 54,303 | 24,668 | 71,211 |
Operating Segments [Member] | ||||
Revenues: | ||||
Total revenues | 714,413 | 699,996 | 1,384,881 | 1,344,115 |
Operating Segments [Member] | Net Sales [Member] | ||||
Revenues: | ||||
Revenues | 712,224 | 697,086 | 1,380,678 | 1,338,489 |
Operating Segments [Member] | Royalties and Franchise Fees [Member] | ||||
Revenues: | ||||
Revenues | 2,189 | 2,910 | 4,203 | 5,626 |
Operating Segments [Member] | Wholesale [Member] | ||||
Revenues: | ||||
Total revenues | 289,067 | 285,733 | 579,368 | 563,560 |
Operating Segments [Member] | Wholesale [Member] | Net Sales [Member] | ||||
Revenues: | ||||
Revenues | 289,067 | 285,733 | 579,368 | 563,560 |
Operating Segments [Member] | Retail [Member] | ||||
Revenues: | ||||
Total revenues | 425,346 | 414,263 | 805,513 | 780,555 |
Operating Segments [Member] | Retail [Member] | Net Sales [Member] | ||||
Revenues: | ||||
Revenues | 423,157 | 411,353 | 801,310 | 774,929 |
Operating Segments [Member] | Retail [Member] | Royalties and Franchise Fees [Member] | ||||
Revenues: | ||||
Revenues | 2,189 | 2,910 | 4,203 | 5,626 |
Eliminations [Member] | ||||
Revenues: | ||||
Total revenues | (150,522) | (138,985) | (307,874) | (275,280) |
Eliminations [Member] | Wholesale [Member] | ||||
Revenues: | ||||
Total revenues | $ (150,522) | $ (138,985) | $ (307,874) | $ (275,280) |
Derivative Financial Instrume_3
Derivative Financial Instruments - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2019 | |
Derivative [Line Items] | |
Foreign currency exchange contracts reclassified date | 2020-06 |
Foreign Exchange Risk Management [Member] | |
Derivative [Line Items] | |
Foreign exchange forward contracts maturity | 1 year |
Hedging effectiveness | 100.00% |
Derivative Financial Instrume_4
Derivative Financial Instruments - Schedule of Fair Values of Derivatives (Detail) - Foreign Exchange Contracts [Member] - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Prepaid Expenses and Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | $ 58 | $ 115 |
Accrued Expenses [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | $ 7 | $ 0 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Schedule of Notional Amounts of Derivatives (Detail) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Foreign Exchange Contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional amounts | $ 6,200,000 | $ 10,942,000 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) | 3 Months Ended |
Jun. 30, 2019USD ($)Store | |
Option on Securities [Member] | |
Debt Instrument [Line Items] | |
Derivative assets wrote off cost | $ | $ 1,890 |
Discontinued Operations [Member] | |
Debt Instrument [Line Items] | |
Number of Stores | Store | 55 |
Punchbowl Inc [Member] | |
Debt Instrument [Line Items] | |
Equity method investment, ownership percentage | 28.00% |
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 | Jun. 30, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | $ 58 | $ 115 |
Derivative liabilities | 7 | 0 |
Punchbowl Inc [Member] | Put Option [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 316 | |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 58 | 115 |
Derivative liabilities | $ 7 | 0 |
Level 3 [Member] | Punchbowl Inc [Member] | Put Option [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | $ 316 |
Fair Value Measurements - Sum_2
Fair Value Measurements - Summary of Carrying Amount and Fair Value (Detail) $ in Thousands | Jun. 30, 2019USD ($) |
Term Loan Credit Agreement [Member] | Secured Debt [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument Carrying Amount | $ 784,994 |
Debt Instrument Fair Value | 787,913 |
6.125% Senior Notes - due 2023 [Member] | Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument Carrying Amount | 346,603 |
Debt Instrument Fair Value | 352,625 |
6.625% Senior Notes - due 2026 [Member] | Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument Carrying Amount | 494,524 |
Debt Instrument Fair Value | $ 485,000 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Reconciliation Between Basic and Diluted Income Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Disclosure Of Earnings Per Share [Line Items] | ||||
Net income attributable to common shareholders of Party City Holdco Inc. | $ 48,074 | $ 28,487 | $ 17,856 | $ 27,354 |
Weighted average shares – Basic | 93,293,176 | 96,453,884 | 93,233,865 | 96,426,235 |
Effect of dilutive securities: | ||||
Warrants | 0 | 0 | 0 | 0 |
Restricted stock units | 19,228 | 23,628 | ||
Stock options | 391,142 | 1,234,350 | 534,270 | 1,243,074 |
Weighted average shares - Diluted | 93,703,546 | 97,688,233 | 93,791,763 | 97,669,309 |
Net income per share attributable to common shareholders of Party City Holdco Inc. - Basic | $ 0.52 | $ 0.30 | $ 0.19 | $ 0.28 |
Net income per share attributable to common shareholders of Party City Holdco Inc. - Diluted | $ 0.51 | $ 0.29 | $ 0.19 | $ 0.28 |
Earnings Per share - Additional
Earnings Per share - Additional Information (Detail) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Employee Stock Option [Member] | ||||
Disclosure Of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 2,118,443 | 2,494,428 | 2,118,443 | 2,494,428 |
Warrant [Member] | ||||
Disclosure Of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 596,000 | 596,000 | 596,000 | 596,000 |
Restricted Stock Units (RSUs) [Member] | ||||
Disclosure Of Earnings Per Share [Line Items] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 199,978 | 201,270 | 199,978 | 201,270 |
Current and Long-Term Obligat_3
Current and Long-Term Obligations - Summary of Long-Term Obligations (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Total long-term obligations | $ 1,641,566 | $ 1,635,279 |
Less: current portion | (76,251) | (13,316) |
Long-term obligations, excluding current portion | 1,565,315 | 1,621,963 |
6.125% Senior Notes due 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term obligations | 346,603 | 346,191 |
6.625% Senior Notes due 2026 [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term obligations | 494,524 | 494,138 |
Finance lease obligation [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term obligations | 15,445 | 3,815 |
Term Loan Credit Agreement [Member] | Senior Secured Term Loan Facility [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term obligations | $ 784,994 | $ 791,135 |
Current and Long-Term Obligat_4
Current and Long-Term Obligations - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Apr. 25, 2019 | |
Debt Instrument [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 640,000 | |
Asset Based Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 540,000 | $ 640,000 |
Debt Instrument, Maturity Date | Aug. 31, 2023 | |
Letters Of Credit Outstanding Maximum | $ 50,000 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Summary of Revenue from Contracts with Customers (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Total revenues | $ 563,891 | $ 561,011 | $ 1,077,007 | $ 1,068,835 |
Retail Segment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 425,346 | 414,263 | 805,513 | 780,555 |
Wholesale Segment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenues | 138,545 | 146,748 | 271,494 | 288,280 |
Global E-commerce [Member] | Retail Segment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 35,364 | 35,131 | 67,172 | 67,862 |
Other retail Segment Store [Member] | Retail Segment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 485 | 690 | ||
Domestic [Member] | Wholesale Segment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 74,766 | 79,397 | 148,587 | 158,956 |
International [Member] | Wholesale Segment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 63,779 | 67,351 | 122,907 | 129,324 |
North America [Member] | Party City Stores [Member] | Retail Segment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 387,308 | 376,222 | 733,448 | 707,067 |
Net Sales [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 561,702 | 558,101 | 1,072,804 | 1,063,209 |
Net Sales [Member] | Retail Segment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 423,157 | 411,353 | 801,310 | 774,929 |
Royalties and Franchise Fees [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 2,189 | 2,910 | 4,203 | 5,626 |
Royalties and Franchise Fees [Member] | Retail Segment [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 2,189 | $ 2,910 | $ 4,203 | $ 5,626 |
Cash, Cash Equivalents and Re_2
Cash, Cash Equivalents and Restricted Cash - Additional Information (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Cash and cash equivalents | $ 47,131 | $ 58,909 | $ 51,461 | $ 54,291 |
Prepaid Expenses and Other Current Assets [Member] | ||||
Restricted Cash and Cash Equivalents Items [Line Items] | ||||
Restricted cash | $ 0 | $ 310 | $ 106 | $ 117 |
Leases - Future Cash flows for
Leases - Future Cash flows for the Company's operating leases (Detail) $ in Thousands | Jun. 30, 2019USD ($) |
Leases [Abstract] | |
Nine months ended December 31, 2019 | $ 89,895 |
2020 | 201,578 |
2021 | 185,305 |
2022 | 165,815 |
2023 | 137,724 |
Thereafter | 477,022 |
Total Undiscounted Cash Flows | 1,257,339 |
Less: Interest | (317,891) |
Total Operating Lease Liability | 939,448 |
Less: Current Portion of Operating Lease Liability | (145,472) |
Long-Term Portion of Operating Lease Liability | $ 793,976 |
Leases - Additional Information
Leases - Additional Information (Detail) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019USD ($) | Jun. 30, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | ||
Operating lease cost | $ 49,152 | $ 97,447 |
Variable lease cost | 8,645 | 17,186 |
Operating lease liabilities | 48,937 | 115,451 |
Right of use assets in exchange for operating lease liabilities | $ 125,645 | $ 156,867 |
Weighted average remaining lease term | 7 years | 7 years |
Weighted average discount rate | 6.80% | 6.80% |
Subsequent Event - Additional i
Subsequent Event - Additional information (Detail) - USD ($) | Aug. 01, 2019 | Jun. 30, 2019 |
Aggregate sale price | $ 128,000,000 | |
Subsequent Event [Member] | CANADA | Canadian Based Retailer [Member] | ||
Aggregate sale price | $ 174,000 | |
No of years of supply agreement | 10 years |