Document and Entity Information
Document and Entity Information - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 17, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Entity Registrant Name | Party City Holdco Inc. | ||
Document Type | 10-K | ||
Trading Symbol | PRTY | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Public Float | $ 1,036,696,578 | ||
Entity Common Stock, Shares Outstanding | 112,451,912 | ||
Amendment Flag | false | ||
Entity Central Index Key | 0001592058 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Period End Date | Dec. 31, 2021 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Shell Company | false | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Security Exchange Name | NYSE | ||
Entity File Number | 001-37344 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 46-0539758 | ||
Entity Address, Address Line One | 80 Grasslands Road | ||
Entity Address, City or Town | Elmsford | ||
Entity Address, State or Province | NY | ||
Entity Address, Postal Zip Code | 10523 | ||
City Area Code | 914 | ||
Local Phone Number | 345-2020 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Title of 12(b) Security | Common Stock | ||
ICFR Auditor Attestation Flag | true | ||
Documents Incorporated by Reference | Portions of the registrant’s definitive proxy statement relating to its 2022 annual meeting of stockholders are incorporated by reference in Part III of this Annual Report on Form 10-K. | ||
Auditor Name | ERNST & YOUNG LLP | ||
Auditor Location | New York, New York | ||
Auditor Firm Id | 42 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 47,914 | $ 119,532 |
Accounts receivable, net | 93,301 | 90,879 |
Inventories, net | 443,295 | 412,285 |
Prepaid expenses and other current assets | 57,656 | 45,905 |
Income tax receivable | 56,317 | 57,549 |
Assets held for sale, net | 0 | 83,110 |
Total current assets | 698,483 | 809,260 |
Property, plant and equipment, net | 221,870 | 209,412 |
Operating lease asset | 693,875 | 700,087 |
Goodwill | 664,296 | 661,251 |
Trade names | 383,737 | 384,428 |
Other intangible assets, net | 23,687 | 32,134 |
Other assets, net | 25,952 | 9,883 |
Total assets | 2,711,900 | 2,806,455 |
Current liabilities: | ||
Loans and notes payable | 84,181 | 175,707 |
Accounts payable | 161,736 | 118,928 |
Accrued expenses | 195,531 | 160,605 |
Liabilities held for sale | 0 | 68,492 |
Current portion of operating lease liability | 116,437 | 176,045 |
Income taxes payable | 10,801 | 524 |
Current portion of long-term obligations | 1,373 | 13,576 |
Total current liabilities | 570,059 | 713,877 |
Long-term obligations, excluding current portion | 1,351,189 | 1,329,808 |
Long-term portion of operating lease liability | 655,875 | 654,729 |
Deferred income tax liabilities | 29,195 | 34,705 |
Other long-term liabilities | 22,868 | 22,815 |
Total liabilities | 2,629,186 | 2,755,934 |
Redeemable securities | 0 | |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Common stock (112,170,944 and 110,781,613 shares outstanding and 124,157,500 and 121,662,540 shares issued at December 31, 2021 and December 31, 2020, respectively) | 1,384 | 1,373 |
Additional paid-in capital | 982,307 | 971,972 |
Retained (deficit) earnings | (571,985) | (565,457) |
Accumulated other comprehensive income (loss) | 3,541 | (29,916) |
Total Party City Holdco Inc. stockholders’ equity before common stock held in treasury | 415,247 | 377,972 |
Less: Common stock held in treasury, at cost (11,986,556 and 11,280,098 shares at December 31, 2021 and December 31, 2020, respectively) | (332,533) | (327,182) |
Total Party City Holdco Inc. stockholders’ equity | 82,714 | 50,790 |
Noncontrolling interests | 0 | (269) |
Total stockholders’ equity | $ 82,714 | 50,521 |
Total liabilities, redeemable securities and stockholders’ equity | $ 2,806,455 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - shares | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||||
Common stock, shares outstanding | 112,170,944 | 110,781,613 | 94,461,576 | 93,622,934 |
Common stock, shares issued | 124,157,500 | 121,662,540 | ||
Treasury stock, shares | 11,986,556 | 11,280,098 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Expenses: | |||
Net sales | $ 2,171,060 | $ 1,850,690 | $ 2,348,789 |
Cost of sales | 1,403,004 | 1,369,935 | 1,500,633 |
Gross Profit | 768,056 | 480,755 | 848,156 |
Wholesale selling expenses | 30,762 | 50,121 | 67,103 |
Retail operating expenses | 432,531 | 387,398 | 440,395 |
General and administrative expenses | 186,698 | 225,322 | 201,560 |
Art and development costs | 21,174 | 17,638 | 23,203 |
Gain on sale/leaseback transaction | 0 | 0 | (58,381) |
Store impairment and restructuring charges | 0 | 22,449 | 29,038 |
Loss on disposal of assets in international operations | 3,211 | 73,948 | 0 |
Goodwill, intangibles and long-lived assets impairment | 9,048 | 581,380 | 562,631 |
Income (Loss) from operations | 84,632 | (877,501) | (417,393) |
Interest expense, net | 87,226 | 77,043 | 114,899 |
Other (income) expense, net | (614) | 3,715 | 1,871 |
Gain on debt repayment/refinancing | (1,106) | (273,149) | 0 |
Loss before income taxes | (874) | (685,110) | (534,163) |
Income tax expense (benefit) | 5,708 | (156,653) | (1,305) |
Net loss | (6,582) | (528,457) | (532,858) |
Less: Net loss attributable to noncontrolling interests | (54) | (219) | (363) |
Net (loss) income attributable to common shareholders of Party City Holdco Inc | $ (6,528) | $ (528,238) | $ (532,495) |
Net loss per share attributable to common shareholders of Party City Holdco Inc-Basic | $ (0.06) | $ (5.24) | $ (5.71) |
Net loss per share attributable to common shareholders of Party City Holdco Inc-Diluted | $ (0.06) | $ (5.24) | $ (5.71) |
Weighted-average number of common shares—Basic | 110,980,934 | 100,804,944 | 93,295,692 |
Weighted-average number of common shares—Diluted | 110,980,934 | 100,804,944 | 93,295,692 |
Other comprehensive income (loss), net of tax: | |||
Foreign currency adjustments | $ 35,128 | $ 6,143 | $ 12,599 |
Cash flow hedges | (1,348) | (352) | 845 |
Other comprehensive income, net | 33,780 | 5,791 | 13,444 |
Comprehensive income (loss) | 27,198 | (522,666) | (519,414) |
Less: Comprehensive income (loss) attributable to noncontrolling interests | 269 | (246) | (386) |
Comprehensive income (loss) attributable to common shareholders of Party City Holdco Inc. | $ 26,929 | $ (522,420) | $ (519,028) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Cumulative Effect of Change in Accounting Principle, Net [Member] | Cumulative Effect of Change in Accounting Principle, Net Adjusted [Member] | Time-Based Units [Member] | Performance-Based Units [Member] | Common Stock [Member] | Common Stock [Member]Cumulative Effect of Change in Accounting Principle, Net Adjusted [Member] | Additional Paid-in Capital [Member] | Additional Paid-in Capital [Member]Cumulative Effect of Change in Accounting Principle, Net [Member] | Additional Paid-in Capital [Member]Cumulative Effect of Change in Accounting Principle, Net Adjusted [Member] | Additional Paid-in Capital [Member]Time-Based Units [Member] | Additional Paid-in Capital [Member]Performance-Based Units [Member] | Retained Earnings (Deficit) [Member] | Retained Earnings (Deficit) [Member]Cumulative Effect of Change in Accounting Principle, Net [Member] | Retained Earnings (Deficit) [Member]Cumulative Effect of Change in Accounting Principle, Net Adjusted [Member] | Accumulated Other Comprehensive Loss [Member] | Accumulated Other Comprehensive Loss [Member]Cumulative Effect of Change in Accounting Principle, Net Adjusted [Member] | Total Party City Holdco Inc. Stockholders' Equity Before Common Stock Held In Treasury [Member] | Total Party City Holdco Inc. Stockholders' Equity Before Common Stock Held In Treasury [Member]Cumulative Effect of Change in Accounting Principle, Net [Member] | Total Party City Holdco Inc. Stockholders' Equity Before Common Stock Held In Treasury [Member]Cumulative Effect of Change in Accounting Principle, Net Adjusted [Member] | Total Party City Holdco Inc. Stockholders' Equity Before Common Stock Held In Treasury [Member]Time-Based Units [Member] | Total Party City Holdco Inc. Stockholders' Equity Before Common Stock Held In Treasury [Member]Performance-Based Units [Member] | Common Stock Held In Treasury [Member] | Common Stock Held In Treasury [Member]Cumulative Effect of Change in Accounting Principle, Net Adjusted [Member] | Total Party City Holdco Inc. Stockholders' Equity [Member] | Total Party City Holdco Inc. Stockholders' Equity [Member]Cumulative Effect of Change in Accounting Principle, Net [Member] | Total Party City Holdco Inc. Stockholders' Equity [Member]Cumulative Effect of Change in Accounting Principle, Net Adjusted [Member] | Total Party City Holdco Inc. Stockholders' Equity [Member]Time-Based Units [Member] | Total Party City Holdco Inc. Stockholders' Equity [Member]Performance-Based Units [Member] | Non-Controlling Interests [Member] | Non-Controlling Interests [Member]Cumulative Effect of Change in Accounting Principle, Net Adjusted [Member] |
Balance at Dec. 31, 2018 | $ 1,043,621 | $ 159 | $ 1,043,780 | $ 1,208 | $ 1,208 | $ 922,476 | $ 662 | $ 923,138 | $ 495,777 | $ (503) | $ 495,274 | $ (49,201) | $ (49,201) | $ 1,370,260 | $ 159 | $ 1,370,419 | $ (326,930) | $ (326,930) | $ 1,043,330 | $ 159 | $ 1,043,489 | $ 291 | $ 291 | ||||||||
Accounting Standards Update [Extensible List] | ASU 2018-07 [Member] | ||||||||||||||||||||||||||||||
Net income (loss) | $ (532,858) | (532,495) | (532,495) | (532,495) | (363) | ||||||||||||||||||||||||||
Stock option expense | 1,319 | 1,319 | 1,319 | 1,319 | |||||||||||||||||||||||||||
Restricted stock units | $ 2,033 | $ 2,033 | $ 2,033 | $ 2,033 | |||||||||||||||||||||||||||
Directors — non-cash compensation | 313 | 313 | 313 | 313 | |||||||||||||||||||||||||||
Warrant | 515 | 515 | 515 | 515 | |||||||||||||||||||||||||||
Exercise of stock options | 1,148 | 3 | 1,145 | 1,148 | 1,148 | ||||||||||||||||||||||||||
Acquired non-controlling interest | 181 | 110 | 110 | 110 | 71 | ||||||||||||||||||||||||||
Foreign currency adjustments | 12,599 | 12,622 | 12,622 | 12,622 | (23) | ||||||||||||||||||||||||||
Treasury stock purchases | (156) | 156 | 156 | ||||||||||||||||||||||||||||
Impact of foreign exchange contracts | 847 | 2 | 845 | 847 | 847 | ||||||||||||||||||||||||||
Balance at Dec. 31, 2019 | 529,721 | 1,211 | 928,573 | (37,219) | (35,734) | 856,831 | (327,086) | 529,745 | (24) | ||||||||||||||||||||||
Net income (loss) | (528,457) | (528,238) | (528,238) | (528,238) | (219) | ||||||||||||||||||||||||||
Stock option expense | 796 | $ 7,847 | 796 | $ 7,847 | 796 | $ 7,847 | 796 | $ 7,847 | |||||||||||||||||||||||
Restricted stock units | 2,071 | 1,272 | 2,071 | 1,272 | 2,071 | 1,272 | 2,071 | 1,272 | |||||||||||||||||||||||
Directors — non-cash compensation | 337 | 337 | 337 | 337 | |||||||||||||||||||||||||||
Warrant | 1,033 | 1,033 | 1,033 | 1,033 | |||||||||||||||||||||||||||
Exercise of stock options | 148 | 2 | 146 | 148 | 148 | ||||||||||||||||||||||||||
Acquired non-controlling interest | 2,317 | 2,316 | 2,316 | 2,316 | 1 | ||||||||||||||||||||||||||
Issuance of Stock for Debt exchange including costs | 27,741 | 160 | 27,581 | 27,741 | 27,741 | ||||||||||||||||||||||||||
Foreign currency adjustments | 6,143 | 6,170 | 6,170 | 6,170 | (27) | ||||||||||||||||||||||||||
Treasury stock purchases | (96) | (96) | (96) | ||||||||||||||||||||||||||||
Impact of foreign exchange contracts | (352) | (352) | (352) | (352) | |||||||||||||||||||||||||||
Balance at Dec. 31, 2020 | 50,521 | 1,373 | 971,972 | (565,457) | (29,916) | 377,972 | (327,182) | 50,790 | (269) | ||||||||||||||||||||||
Net income (loss) | (6,582) | (6,528) | (6,528) | (6,528) | (54) | ||||||||||||||||||||||||||
Stock option expense | 396 | 396 | 396 | 396 | |||||||||||||||||||||||||||
Restricted stock units | $ 2,557 | $ 3,504 | $ 2,557 | $ 3,504 | $ 2,557 | $ 3,504 | $ 2,557 | $ 3,504 | |||||||||||||||||||||||
Directors — non-cash compensation | 228 | 228 | 228 | 228 | |||||||||||||||||||||||||||
Warrant | 4 | (4) | |||||||||||||||||||||||||||||
Exercise of stock options | 3,680 | 7 | 3,673 | 3,680 | 3,680 | ||||||||||||||||||||||||||
Foreign currency adjustments | 35,128 | 34,805 | 34,805 | 34,805 | $ (323) | ||||||||||||||||||||||||||
Treasury stock purchases | (5,351) | (5,351) | (5,351) | ||||||||||||||||||||||||||||
Impact of foreign exchange contracts | (1,367) | (19) | (1,348) | (1,367) | (1,367) | ||||||||||||||||||||||||||
Balance at Dec. 31, 2021 | $ 82,714 | $ 1,384 | $ 982,307 | $ (571,985) | $ 3,541 | $ 415,247 | $ (332,533) | $ 82,714 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows provided by operating activities: | |||
Net (loss) income | $ (6,582) | $ (528,457) | $ (532,858) |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||
Depreciation and amortization expense | 65,610 | 76,506 | 81,116 |
Amortization of deferred financing costs and original issuance discounts | 4,516 | 4,198 | 4,722 |
Provision for doubtful accounts | 2,569 | 6,321 | 2,323 |
Deferred income tax (benefit) expense | (5,155) | (95,085) | (47,366) |
Undistributed (income) loss in equity method investments | (220) | 333 | (472) |
Change in operating lease liability/asset | (51,326) | 30,981 | (9,942) |
Loss (gain) on disposal of assets | 2,781 | 70 | (59,786) |
Loss on disposal of assets in international operations | 3,211 | 73,948 | 0 |
Non-cash adjustment for store impairment and restructuring | 0 | 17,585 | 20,236 |
Goodwill, intangibles and long-lived assets impairment | 11,974 | 581,380 | 562,631 |
Non-employee equity based compensation (see Note 25 – Kazzam, LLC) | 0 | 1,033 | 515 |
Stock option expense – time – based | 396 | 796 | 1,319 |
Stock option expense – performance – based | 0 | 7,847 | 0 |
Restricted stock unit - performance-based | 3,504 | 1,329 | 0 |
Restricted stock units expense—time-based | 2,557 | 2,071 | 2,033 |
Directors—non-cash compensation | 228 | 337 | 313 |
Gain on debt repayment/refinancing | (1,106) | (273,149) | 0 |
Changes in operating assets and liabilities, net of effects of acquired businesses: | |||
(Increase) decrease in accounts receivable | (10,673) | 22,396 | (2,600) |
(Increase) decrease in inventories | (34,236) | 184,924 | 72,385 |
(Increase) decrease in prepaid expenses and other current assets, net | (21,419) | (66,166) | 14,741 |
Increase (decrease) in accounts payable, accrued expenses and income taxes payable | 85,306 | 28,002 | (65,617) |
Net cash provided by operating activities | 51,935 | 77,200 | 43,693 |
Cash flows provided by (used in) provided by investing activities: | |||
Cash paid in connection with acquisitions, net of cash acquired | (6,954) | (3,305) | (20,878) |
Capital expenditures | (79,222) | (51,128) | (61,733) |
Proceeds from disposal of property and equipment | 225 | 162 | 246,286 |
Proceeds from sale of international operations, net of cash disposed | 20,556 | 0 | 0 |
Net cash (used in) provided by investing activities | (65,395) | (54,271) | 163,675 |
Cash flows (used in) provided by financing activities: | |||
Repayment of loans, notes payable and long-term obligations | (949,907) | (254,438) | (441,632) |
Proceeds from loans, notes payable and long-term obligations | 883,890 | 368,439 | 203,344 |
Exercise of stock options | 3,680 | 147 | 1,148 |
Treasury stock purchases | (5,351) | (96) | (156) |
Debt issuance and modification costs | (21,437) | (20,348) | (414) |
Net cash (used in) provided by financing activities | (89,125) | 93,704 | (237,710) |
Effect of exchange rate changes on cash and cash equivalents | 190 | (500) | 6,299 |
Net (decrease) increase in cash and cash equivalents and restricted cash | (102,395) | 116,133 | (24,043) |
Less: net increase/decrease in cash classified within current assets held for sale | 31,628 | (31,628) | 0 |
Cash and cash equivalents and restricted cash at beginning of period | 119,681 | 35,176 | 59,219 |
Cash and cash equivalents and restricted cash at end of period | 48,914 | 119,681 | 35,176 |
Cash paid during the period: | |||
Interest | 57,971 | 68,396 | 108,561 |
Income taxes, net of refunds | $ 5,413 | $ 26,867 | $ 36,093 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Statement of Cash Flows [Abstract] | |||
Restricted cash | $ 1,000 | $ 149 | $ 259 |
Organization, Description of Bu
Organization, Description of Business and Basis of Presentation | 12 Months Ended |
Dec. 31, 2021 | |
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 leading party goods company by revenue in North America and, we believe, the largest vertically integrated supplier of decorated party goods globally by revenue. With hundreds of retail stores filled with thousands of products across the United States, we make it easy for our customers to find the perfect party solution through our assortment of party products, balloons, and costumes for their celebration aided by the support of our party experts both in-store and online. Our retail operations include approximately 830 specialty retail party supply stores (including franchise stores) throughout North America operating under the names Party City and Halloween City, and e-commerce websites which offer rapid, contactless, and same day shipping options (including in-store and at curbside), principally through the domain name PartyCity.com. In addition to our retail operations, we are also a global designer, manufacturer and distributor of decorated consumer party products, with items found in retail outlets worldwide, including independent party supply stores, mass merchants, grocery retailers, e-commerce merchandisers and dollar stores. Party City Holdco is a holding company with no operating assets or operations. The Company owns 100 % of PC Nextco Holdings, LLC (“PC Nextco”), which owns 100 % of PC Intermediate Holdings, Inc. (“PC Intermediate”). PC Intermediate owns 100 % of Party City Holdings Inc. (“PCHI”), which owns most of the Company’s operating subsidiaries. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
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 period or 53-week period ended on the Saturday nearest December 31st of each year and define their fiscal quarters (“Fiscal Quarter”) as the four interim 13-week periods following the end of the previous Fiscal Year, except in the case of a 53-week Fiscal Year when the fourth Fiscal Quarter is extended to 14 weeks. Fiscal 2021 was a 52-week year for our retail operations. The consolidated financial statements of the Company combine the Fiscal Year and Fiscal Quarters of the Company’s retail operations with the calendar year and calendar quarters of the Company’s wholesale operations, as the differences are not significant. 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. In assessing the ultimate realization of inventories, the Company makes judgments regarding, among other things, future demand and market conditions, current inventory levels and the impact of the possible discontinuation of product designs. The Company principally determines the cost of inventory using the weighted average method. The Company estimates retail inventory shrinkage for the period between physical inventory dates on a store-by-store basis. Inventory shrinkage estimates can be affected by changes in merchandise mix and changes in actual shortage trends. The shrinkage rate from the most recent physical inventory, in combination with historical experience, is the basis for estimating shrinkage. Allowance for Doubtful Accounts Refer to Note 24 — Revenue from Contracts with Customers for detail. Long-Lived and Intangible Assets (including Goodwill) Property, plant and equipment are stated at cost. 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/asset groups, other than goodwill, based upon the lowest level of independent cash flows ascertainable to evaluate impairment. If an impairment indicator exists, we compare the undiscounted future cash flows of the asset/asset group to the carrying value of the asset/asset group. If the sum of the undiscounted future cash flows is less than the carrying value of the asset/asset group, we would calculate discounted future cash flows based on market participant assumptions. If the sum of discounted cash flows is less than the carrying value of the asset/asset group, we would 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 generally on a store-by-store basis. Various factors including future sales growth and profit margins are included in this analysis. The Company evaluates the goodwill associated with its acquisitions, and other intangibles with indefinite lives, for impairment on October 1 based on current and projected performance, or more frequently if circumstances indicate a possible impairment. For purposes of testing goodwill for impairment, reporting units are determined by identifying operating segments within the Company’s organization which constitute a business for which discrete financial information is available and is reviewed by management. Components within an operating 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 such carrying value exceeds the fair value an impairment loss will be recognized in an amount equal to such 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. Our Trade names are treated as indefinite-lived intangible assets and, therefore are not amortized, but rather are tested for impairment annually in the fourth fiscal quarter, unless there are events requiring an earlier assessment or changes in circumstances during an interim period providing impairment indicators are present. When performing a quantitative impairment assessment of our Trade name indefinite-lived intangible assets, the fair value of the Trade names is estimated using a discounted cash flow analysis based on the "relief from royalty" method, assuming that a third party would be willing to pay a royalty in lieu of ownership for this intangible asset. This approach is dependent on many factors, including estimates of future growth, royalty rates, and discount rates. Actual future results may differ from these estimates. Impairment loss is recognized when the estimated fair value of the indefinite-lived intangible asset is less than its carrying amount. Deferred Financing Costs Deferred financing costs are netted against amounts outstanding under the related debt instruments. They are amortized to interest expense over the terms of the instruments using the effective interest method. 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 of accounting. The Company also has an investment in a joint venture partnership for its costume sourcing and manufacturing business in Asia which is accounted for using the equity method of accounting. See Variable Interest Entities section below for additional information. The Company’s investments are included in Other assets, net on the consolidated balance sheet and its portion of the results of the investees’ operations are included in Other expense, net in the consolidated statement of operations and comprehensive (loss) income (see Note 14, Other Expense, net). 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 Retail Revenue from retail store operations is recognized at the point of sale as control of the product is transferred to the customer at such time. Retail e-commerce sales are recognized when the consumer receives the product as control transfers upon delivery. Due to its extensive history operating as a party goods retailer in North America, the Company has sufficient history with which to estimate future retail sales returns and it uses the expected value method to estimate such activity. The transaction price for the 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 sales, the Company records such amounts in revenue. The Company excludes all sales taxes and value-added taxes from revenue. 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 fee which is earned by the Company for its assistance with site selection and development of the new location. Both the sales-based royalty fee and the one-time fee are recorded in Net sales in the Company’s consolidated statement of operations and comprehensive (loss) income. Wholesale For most of the Company’s wholesale sales, control transfers upon the Company’s shipment of the product. 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 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 fixed based on the contract and/or purchase order. 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. For all transactions for which the Company expects to collect the transaction price within a year from the transfer of control, the Company does not adjust the consideration for the effects of a significant financing component. 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, 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 costs of goods purchased from third parties and the production costs/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, utilities and common area maintenance), depreciation on assets and all logistics costs (i.e., handling and distribution costs) associated with the Company’s e-commerce business. Retail Operating Expenses Retail operating expenses include costs associated with the operation of the Company’s retail stores (with the exception of occupancy costs, which are included in cost of sales). Retail operating expenses principally consist of employee compensation and benefits, advertising, supplies expense and credit card 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, net, 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, 2021, December 31, 2020, and December 31, 2019 were $ 55,339 , $ 61,036 and $ 72,518 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 voting rights. If the Company concludes that the legal entity is a variable interest entity, the Company next determines whether it is the primary beneficiary due to it possessing both: 1) the power to direct the activities of a variable interest entity that most significantly impact the variable interest entity’s economic performance, and 2) the obligation to absorb losses of the variable interest entity that potentially could be significant to the variable interest entity or the right to receive benefits from the variable interest entity which could be significant to the variable interest entity. If the Company concludes that it is the primary beneficiary, it consolidates the legal entity. In January 2021, in connection with the sale of a substantial portion of its international operations, the Company formed a joint venture partnership for its costume sourcing and manufacturing business in Asia. The Company concluded that it is not the joint venture's primary beneficiary and will account for its investment under the equity method. See Equity Method Investments section above. There were no variable interest entities as of December 31, 2020. Refer to Note 25 – Kazzam, LLC for additional information. 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 basis. 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 ., hedging the exposure to variability in expected future cash flows that is attributable to a particular risk), the effective portion of the gain or loss on the derivative instrument is reported as a component of accumulated other comprehensive (loss) income and reclassified into net income in the same period or periods during which the hedged transaction affects earnings. The ineffective portion of a cash flow hedge, if any, is determined based on the dollar-offset method ( i.e ., the gain or loss on the derivative financial instrument in excess of the cumulative change in the present value of future cash flows of the hedged item) and is recognized in net income during the period of change. As long as hedge effectiveness is maintained, foreign currency exchange agreements qualify for hedge accounting as cash flow hedges. Se e Note 22– Derivative Financial Instruments. 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. The Company also granted performance-based restricted stock units ("PRSUs") and Restricted Cash awards to certain executive officers and other employees. The performance period is three years from the grant date. The PRSUs and Restricted Cash awards become earned in a given period if the volume weighted average of the fair market value per share of the Common Stock meets or exceeds $ 2.50 , $ 5.00 , $ 7.50 , and $ 10.00 , respectively, for a period of not less than 90 consecutive trading days on the New York Stock Exchange and are subject to up to 2 years service-vesting after the achievement of these thresholds. The PRSUs and Restricted Cash awards are measured at fair value based on Monte Carlo simulation models. The PRSUs will be settled in Party City common stock and are accounted for as equity awards and the Restricted Cash will be settled in cash and are accounted for as liability awards. Accumulated Other Comprehensive Income (Loss) Accumulated other comprehensive income (loss) consists of the Company’s foreign currency adjustments and the impact of foreign exchange contracts that qualify as hedges. Se e Note 22 – Derivative Financial Instruments and Note 23 – Changes in Accumulated Other Comprehensive Income (Loss). 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 recognized in the Company’s statement of operations and comprehensive (loss) income. 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 (loss) income and are included as a component of accumulated other comprehensive income (loss). 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 per share is as follows: Twelve Months Ended December 31, 2021 2020 2019 Net (loss) income attributable to common shareholders of $ ( 6,528 ) $ ( 528,238 ) $ ( 532,495 ) Weighted average shares — Basic: 110,980,934 100,804,944 93,295,692 Effect of dilutive restricted stock units: — — — Effect of dilutive stock options: — — — Weighted average shares — Diluted: 110,980,934 100,804,944 93,295,692 Net (loss) income per share attributable to common $ ( 0.06 ) $ ( 5.24 ) $ ( 5.71 ) Net (loss) income per share attributable to common $ ( 0.06 ) $ ( 5.24 ) $ ( 5.71 ) During the year ended December 31, 2021 , 1,514,010 restricted stock units, 4,653,373 performance restricted stock units and 1,032,219 stock options were excluded from the calculation of diluted net loss per share attributable to common shareholders of Party City Holdco Inc. – diluted as they were anti-dilutive. During the years ended December 31, 2020, and December 31, 2019, 3,240,461 stock options and 3,510,317 stock options, respectively, were excluded from the calculations of net income per share attributable to common shareholders of Party City Holdco Inc. – diluted as they were anti-dilutive. Additionally, during the years ended December 31, 2020, and December 31, 2019, 1,000,000 and 596,000 warrants, respectively, were excluded from the calculations of net income per share attributable to common shareholders of Party City Holdco Inc. – diluted as they were anti-dilutive. Further, during the years ended December 31, 2020, and December 31, 2019, 787,313 restricted stock units and 413,968 restricted stock units, respectively, were excluded from the calculations of net income per share attributable to common shareholders of Party City Holdco Inc. – diluted as they were anti-dilutive. Also, during the year ended December 31, 2020, 1,206,723 performance restricted stock units were excluded from the calculations of net income per share attributable to common shareholders of Party City Holdco Inc. – diluted as they were anti-dilutive. Recently Issued Accountin g Pronouncements In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-04, which provides guidance providing optional expedients and exceptions for applying U.S. generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by the discontinuation of the London Interbank Offered Rate (“LIBOR”) or by another reference rate expected to be discontinued. Additionally, in January 2021, the FASB issued ASU 2021-01, which allows entities to elect certain optional expedients and exceptions when accounting for derivative contracts and certain hedging relationships affected by changes in the interest rates. The Company does not expect an impact on our consolidated financial statements. In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832), Disclosures by Business Entities About Government Assistance, which requires entities to provide disclosures on material government assistance transactions for annual reporting periods. The disclosures include information around the nature of the assistance, the related accounting policies used to account for government assistance, the effect of government assistance on the entity’s financial statements, and any significant terms and conditions of the agreements, including commitments and contingencies. The new standard is effective for the Corporation on January 1, 2022 and only impacts annual financial statement footnote disclosures. The adoption will not have a material effect on our consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which removes certain exceptions for intra-period allocations and interim tax calculations and adds guidance to simplify accounting for income taxes. The guidance is effective for interim and annual periods beginning after December 15, 2020. The adoption of this guidance did not have a material impact on our consolidated financial statements. |
Store Impairment and Restructur
Store Impairment and Restructuring Charges | 12 Months Ended |
Dec. 31, 2021 | |
Restructuring and Related Activities [Abstract] | |
Store Impairment and Restructuring Charges | Note 3 — Store Impairment and Restructuring charges During the years ended December 31, 2020 and 2019, the Company performed a comprehensive review of its store locations aimed at improving the overall productivity of such locations (“store optimization program”) and, after careful consideration and evaluation of the store locations, the Company made the decision to accelerate the optimization of its store portfolio. In 2019, 55 stores were identified for closure, out of which 35 stores were closed in 2019 and 20 stores were closed in January 2020. In 2020, 21 stores were identified for closure in the first quarter of 2020 and were closed in the third quarter. These closings provided the Company with capital flexibility to expand into underserved markets. In addition, the Company evaluated the recoverability of long lived assets at the open stores and recorded an impairment charge associated with the operating lease asset and property, plant and equipment for open stores where sales were affected due to the outbreak of, and local, state and federal governmental responses to, COVID-19. In conjunction with the store optimization program and store impairment, there were no charges for 2021 and during the years ended December 31, 2020 and 2019, the Company recorded the following: December 31, 2020 2019 Inventory reserves $ 12,880 $ 21,284 Operating lease asset impairment 15,520 14,943 Property, plant and equipment impairment 2,065 4,680 Labor and other costs incurred closing stores 4,864 8,754 Severance — 661 Total $ 35,329 $ 50,322 As the Company closes stores, it records 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 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 stores. The charge for inventory reserves represents inventory that is disposed of following the closures of the stores and inventory that is 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 loss. The other charges were recorded in Store impairment and restructuring charges in the Company’s Consolidated Statement of Operations and Comprehensive (Loss) Income. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Asset Impairment [Abstract] | |
Goodwill | Note 4 – Goodwill Fiscal Year Ended December 31, 2021 2020 Wholesale segment: Beginning balance $ 333,184 $ 493,432 Goodwill impairment — ( 148,326 ) Foreign currency translation ( 414 ) 1,483 Goodwill related to divested international business* ( 1,042 ) ( 13,405 ) Ending balance 331,728 333,184 Retail segment: Beginning balance 328,067 578,898 Store acquisitions 4,501 1,512 Goodwill impairment — ( 253,110 ) Foreign currency translation — 767 Ending balance 332,568 328,067 Total ending balance, both segments $ 664,296 $ 661,251 * December 31, 2020 amount was classified within assets held for sale. The Company reviews goodwill and other intangibles that have indefinite lives for impairment annually as of October 1 or when events or changes in circumstances indicate the carrying value of these assets might exceed their current fair values. Impairment testing is based upon the best information available including estimates of fair value which incorporate assumptions marketplace participants would use in making their estimates of fair value. Significant assumptions and estimates are required, including, but not limited to, projecting future cash flows, determining appropriate discount rates and terminal growth rates, and other assumptions, to estimate the fair value of goodwill and indefinite lived intangible assets. Although the Company believes the assumptions and estimates made are reasonable and appropriate, different assumptions and estimates could materially impact its reported financial results. During the three months ended March 31, 2020, the Company identified intangible assets’ impairment indicators associated with its market capitalization and significantly reduced customer demand for its products due to COVID-19. As a result, the Company performed interim impairment tests on the goodwill at its retail and wholesale reporting units and its other indefinite lived intangible assets as of March 31, 2020. The interim impairment tests were performed using an income approach. The Company recognized non-cash pre-tax goodwill impairment charges at March 31, 2020 of $ 253,110 and $ 148,326 against the goodwill associated with its retail and wholesale reporting units, respectively. In addition, during the three months ended March 31, 2020, the Company recorded an impairment charge of $ 131,287 and $ 3,925 on its Party City and Halloween City tradenames, respectively. During the three months ended September 30, 2020 the Company determined that the fair value of certain indefinite-lived intangible assets is lower than the related book values. Additionally, for certain long-lived assets, the Company determined it was more likely than not that those long-lived assets would be disposed significantly before the end of their previously estimated useful lives. As a result, impairment charges of $ 11,032 , $ 2,423 and $ 31,277 were recorded in the third quarter on its business indefinite-lived trade name intangibles, finite-lived intangibles and tangible assets, respectively. During the three months ended December 31, 2020 and the twelve months ended December 31, 2021, there was no goodwill or intangibles impairment. During the three months ended September 30, 2019, and the three months ended December 31, 2019, the Company identified an impairment indicator associated with its market capitalization and performed impairment tests on the goodwill at its wholesale and retail reporting units and its other indefinite lived intangible assets as of September 30, 2019 and December 31, 2019. The Company recognized non-cash pre-tax goodwill impairment charges at September 30, 2019 of $ 224,100 and $ 35,000 and at December 31, 2019, of $ 271,500 and $ 25,400 , against the goodwill associated with its retail and wholesale reporting units, respectively. During 2019, there was no impairment on the Party City trade name and the Company recorded a Halloween City trade name impairment charge of $ 6,575 . |
Sale_Leaseback Transaction
Sale/Leaseback Transaction | 12 Months Ended |
Dec. 31, 2021 | |
Sales Leaseback Transaction Disclosure [Abstract] | |
Sale/Leaseback Transaction | Note 5 – 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 year ended December 31, 2019, the Company recorded a $ 58,381 gain on the sale, net of transaction costs, in the Company’s Consolidated Statement of Operations and Comprehensive (Loss) 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 accounted for the proceeds as a financing lease. See Note 6 - Disposition of Assets and Assets and Liabilities Held for Sale regarding the Company's announcement of the closure of this facility. In conjunction with the sale/leaseback transaction, 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 required 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 Term Loan debt of $ 62,770 with the balance used to paydown the ABL. See Note 12 — Long-Term Obligations. |
Disposition of Assets and Asset
Disposition of Assets and Assets and Liabilities Held for Sale | 12 Months Ended |
Dec. 31, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposition of Assets and Assets and Liabilities Held for Sale | Note 6 – Disposition of Assets and Assets and Liabilities Held for Sale In December 2021, the Company announced the closure of a manufacturing facility in New Mexico. The facility ceased operations in February 2022. In December 2021, the Company recorded charges of $ 11,545 consisting primarily of equipment and inventory impairments of $ 8,650 and $ 2,425 , respectively, and severance and other costs of $ 470 . The equipment impairment is reflected within Goodwill, intangibles and long-lived assets impairment, the inventory impairment charge is reflected within Cost of sales and the remaining charges are reflected within General and administrative expenses in the Consolidated Statement of Operations and Comprehensive (Loss) Income and are included in the Wholesale segment. In January 2021, the Company closed the previously disclosed sale of a substantial portion of its international operations. The announced sale had a total transaction value of approximately $ 50.7 million. The Company used the net proceeds to paydown debt. As of December 31, 2020, the Company reported the assets and liabilities of the international operations as held for sale in its consolidated balance sheet and include the following: Fiscal Year Ended December 31, 2020 Wholesale Retail Total Cash $ 25,989 $ 5,639 $ 31,628 Accounts receivable, net 31,932 460 32,392 Inventories, net 55,574 10,526 66,100 Prepaid expense 4,375 4,419 8,794 Goodwill 13,405 - 13,405 Other assets, net 1,891 2,848 4,739 Total assets held for sale $ 133,166 $ 23,892 157,058 Held for sale reserve ( 73,948 ) Assets held for sale, net $ 83,110 Fiscal Year Ended December 31, 2020 Wholesale Retail Total Loans and notes payable $ 1,311 $ — $ 1,311 Accounts payable 23,364 2,107 25,471 Current operating lease liability 4,174 384 4,558 Accrued expenses 16,527 6,998 23,525 Income taxes payable and Deferred income tax liabilities 258 1,976 2,234 Long term obligations excluding current portion 40 - 40 Other long-term liabilities - 3,354 3,354 Long term operating lease liability 6,167 1,832 7,999 Total, net $ 51,841 $ 16,651 $ 68,492 Additionally, the company recorded a loss reserve of $ 73,948 against the net assets. On October 1, 2019, the Company sold its Canadian-based Party City stores to a Canadian-based retailer for $ 131,711 and entered into a 10 -year supply agreement under which the acquirer agreed to purchase product from the Company for such Party City stores, as well as the acquirer’s other stores. The Company used the net proceeds to paydown debt. For the years ended December 31, 2019, 2018, and 2017, the Canadian-based Party City stores had pre-tax income of $ 2,631 , $ 10,737 , and $ 8,947 respectively. The Company recorded a $ 2,873 gain on sale of assets, which is reported in Other expense, net on the Consolidated Statement of Operations and Comprehensive (Loss) Income. |
Inventories, Net
Inventories, Net | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories, Net | Note 7 — Inventories, Net Inventories consisted of the following: December 31, 2021 2020 Finished goods $ 393,609 $ 367,275 Raw materials 25,624 27,111 Work in process 24,062 17,899 $ 443,295 $ 412,285 Inventories, net are valued at the lower of cost or net realizable value. The Company principally determines the cost of inventory using the weighted average method. The Company estimates retail inventory shrinkage for the period between physical inventory dates on a store-by-store basis. Inventory shrinkage estimates can be affected by changes in merchandise mix and changes in actual shortage trends. The shrinkage rate from the most recent physical inventory, in combination with historical experience, is the basis for estimating shrinkage. Consistent with the strategy of rationalizing in-store SKU count and improving working capital velocity, the Company has updated its seasonal assortment strategy to target higher in-season sell-through of merchandise and reduce annual inventory carry-over. The more edited and curated assortments are expected to improve the customer experience by making stores easier to shop and product selections more relevant to consumers, while also improving the efficiency of inventory management and reducing working capital needs. As a result, for inventory not required for future seasons, the Company recorded a reserve for future disposals of a total $ 68,707 in 2021 and disposed of and recorded a reserve for future disposals of a total of $ 88,358 in 2020. See Note 2 — Summary of Significant Accounting Policies, for a discussion of the Company’s accounting policies for inventories. |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, Net | Note 8 — Property, Plant and Equipment, Net Property, plant and equipment, net consisted of the following: December 31, 2021 2020 Useful lives Machinery and equipment $ 245,983 $ 247,255 3 - 15 years Buildings 6,277 9,982 40 years Data processing equipment 131,989 129,988 3 - 5 years Leasehold improvements 203,503 176,389 1 - 10 years Furniture and fixtures 228,818 218,452 5 - 10 years Land 180 8,359 816,750 790,425 Less: accumulated depreciation ( 594,880 ) ( 581,013 ) $ 221,870 $ 209,412 Depreciation expense related to property, plant and equipment, including assets under finance leases, was $ 56,189 , $ 65,144 , and $ 67,016 , for the years ended December 31, 2021, December 31, 2020, and December 31, 2019, respectively. Assets under finance leases are principally included in buildings and machinery and equipment in the table above. See Note 3 and Note 6 for details regarding property, plant and equipment impairments. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2021 | |
Business Combinations [Abstract] | |
Acquisitions | Note 9 — Acquisitions The allocation of the purchase price for the business combinations was based on the Company’s estimate of the fair value of the assets acquired and liabilities assumed. Goodwill, which is tax-deductible, arose due to numerous factors, including the wholesale profit generated via the sale of product from the Company’s wholesale operations through the acquired stores. Goodwill also arose due to: the value to the Company of customers knowing that there are party stores in the locations (when the Company opens a new store, sales are initially lower than those of mature stores and increase over time), the Company’s ability to run the stores more efficiently than the franchisee based on the Company’s experience with its corporate-owned stores and the assembled workforce at the acquired stores. In November 2019 the Company acquired all of the stock of two European-based online retailers, Livario GmbH and Webdots GmbH, for total cash consideration of approximately $ 9 million. 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. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Note 10 — Intangible Assets The Company had the following other identifiable finite-lived intangible assets: December 31, 2021 Cost Accumulated Net Useful lives Franchise-related intangible assets $ 73,225 $ 59,311 $ 13,914 4 - 19 years Customer lists and relationships 58,911 49,154 9,757 2 - 20 years Copyrights and designs 29,030 29,014 16 5 - 7 years Total $ 161,166 $ 137,479 $ 23,687 December 31, 2020 Cost Accumulated Net Useful lives Franchise-related intangible assets $ 77,377 $ 57,524 $ 19,853 4 - 19 years Customer lists and relationships 62,002 49,739 12,263 2 - 20 years Copyrights and designs 29,030 29,012 18 5 - 7 years Total $ 168,409 $ 136,275 $ 32,134 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, 2021, December 31, 2020, and December 31, 2019 was $ 9,075 , $ 11,362 , and $ 14,100 , respectively. Estimated amortization expense for each of the next five years will be approximately $ 5,565 , $ 3,988 , $ 3,380 , $ 2,847 , and $ 2,468 , 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. During the three months ended March 31, 2020, the Company recorded an impairment charges of $ 131,287 and $ 3,925 on its Party City and Halloween City tradenames, respectively. During 2019, the Company recorded a Halloween City tradename impairment charge of $ 6,575 . During the three months ended September 30, 2020 the Company has determined that the fair value of certain indefinite-lived intangible assets is lower than the related book values. Additionally, for certain long-lived assets it is more likely than not that those long-lived assets will be disposed significantly before the end of their previously estimated useful lives. As a result, impairment charges of $ 11,032 , $ 2,423 and $ 31,277 were recorded in the third quarter on its business indefinite-lived trade name intangibles, finite-lived intangibles and tangible assets, respectively. |
Loans and Notes Payable
Loans and Notes Payable | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Loans and Notes Payable | Note 11 — Loans and Notes Payable ABL Facility 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 (subject to a springing maturity at an earlier date if the maturity date of certain of the Company’s other debt has not been extended or refinanced). It provides for (a) revolving loans, subject to a borrowing base described below, and (b) letters of credit, in an aggregate face amount at any time outstanding not to exceed $ 50,000 . During April 2019, the Company amended the ABL Facility. Such amendment removed the seasonal component and made the ABL Facility a $ 640,000 facility with no seasonal modification component. In February 2021 in conjunction with the issuance of 8.75 % Senior Secured First Lien Notes – due 2026 as discussed on Note 12 - Long-Term Obligations, the Company amended the ABL Facility by reducing the commitments to $ 475,000 and extending the maturity to February 2026, or earlier as provided for in the agreement. In conjunction with the amendment, the Company wrote-off a portion of existing deferred financing costs. Such amount was recorded in Other expense, net in the Company’s Consolidated Statement of Operations and Comprehensive (Loss) Income and included in Gain on debt repayment in the Company’s Consolidated Statement of Cash Flows. The remaining capitalized costs, and $ 2,400 of new third-party costs incurred in conjunction with the amendment, will be amortized over the revised term of the ABL Facility. 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 and amending 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, 2021 and December 31, 2020 was $ 2,889 and $ 1,419 , respectively. Borrowings under the ABL Facility totaled $ 87,070 at December 31, 2021 and $177,125 at December 31, 2020. The weighted average interest rate for such borrowings was 2.64 % at December 31, 2021 and 2.34 % at December 31, 2020. Outstanding standby letters of credit totaled $ 24,940 at December 31, 2021 and $ 24,452 at December 31, 2020. After considering borrowing base restrictions, at December 31, 2021 PCHI had $ 192,410 of available borrowing capacity under the terms of the facility and $ 176,522 at December 31, 2020. Availability as of December 31, 2021 is based upon the borrowing base then in effect of $ 304,420 , less $ 24,940 of outstanding undrawn letters of credit and $ 87,070 then drawn. In connection with the issuance of the First Lien Party City Notes, First Lien Anagram Notes, Second Lien Anagram Notes, referenced in Note 12 – Long Term Obligations, PCHI (1) reduced the ABL revolving commitments and prepaid the outstanding ABL revolving loans, in each case, in an aggregate principal amount equal to $ 44,000 in accordance with the ABL Facility credit agreement, and (2) designated Anagram Holdings and each of its subsidiaries as an unrestricted subsidiary under the ABL Facility and the Term Loan Credit Agreement. Anagram ABL Facility On May 7, 2021, Anagram Holdings, LLC (“Anagram”), a wholly owned subsidiary of the Company, entered into a $ 15 million asset based revolving credit facility (“Anagram ABL Facility”), which matures during May 2024 . It provides for (a) revolving loans, subject to a borrowing base described below, and (b) under the Anagram ABL Facility, Borrowers would be entitled to request letters of credit (“Letters of Credit”). The aggregate amount of outstanding Letters of Credit would be reserved against the credit availability and subject to a $ 3 million cap. Under the Anagram ABL Facility, the borrowing base at any time equals (a) a percentage of eligible trade receivables, plus (b) a percentage of eligible inventory, plus (c) a percentage of eligible credit card receivables, less (d) certain reserves. The Anagram ABL Facility generally provides for the following pricing options: All revolving loans will bear interest, at the Anagram's election, at a per annum rate equal to either (a) a base rate, which represents for any day a rate equal to the greater of (i) the prime rate on such day subject to a 0 % floor, (ii) the 0.5 % and (iii) one-half of one percent per annum, in each case, plus a margin of 1.5 % or (b) the Daily One Month LIBOR subject to a 0.5 % floor, plus a margin of 2.5 %. In addition to paying interest on outstanding principal, Anagram is required to pay a commitment fee of 0.5 % to 1 % per annum in respect of unutilized commitments. Anagram must also pay customary letter of credit fees. All obligations under the Anagram ABL Facility are jointly and severally guaranteed by Anagram and its subsidiaries. The Anagram ABL facility contains covenants and events of default customary for such credit facilities. There were no amounts outstanding under the Anagram ABL Facility at December 31, 2021. |
Long-Term Obligations
Long-Term Obligations | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Long-Term Obligations | Note 12 — Long-Te rm Obligations Long-term obligations consisted of the following: December 31, 2021 December 31, 2020 Principal Amount Gross Carrying Amount Deferred Financing Costs* Net Carrying Amount Net Carrying Senior secured term loan facility (“Term Loan Credit Agreement”) $ — $ — $ — $ — $ 690,165 8.75 % Senior Secured First Lien Notes – due 2026 750,000 750,000 ( 17,043 ) 732,957 — 6.125 % Senior Notes — due 2023 22,924 22,924 ( 90 ) 22,834 22,779 6.625 % Senior Notes — due 2026 92,254 92,254 ( 663 ) 91,591 106,315 First Lien Party City Notes – due 2025 161,669 198,004 — 198,004 206,775 First Lien Anagram Notes – due 2025 115,804 150,326 ( 757 ) 149,569 151,335 Second Lien Anagram Notes – due 2026 89,155 144,619 — 144,619 152,032 Finance lease obligations 12,988 12,988 — 12,988 13,983 Total long-term obligations 1,244,794 1,371,115 ( 18,553 ) 1,352,562 1,343,384 Less: current portion (1,373 ) (1,373 ) — ( 1,373 ) ( 13,576 ) Long-term obligations, excluding current portion $ 1,243,421 $ 1,369,742 $ ( 18,553 ) $ 1,351,189 $ 1,329,808 * The Company incurred and capitalized third-party costs as deferred financing, which is being amortized over the life of the debt. Senior secured term loan facility (“Term Loan Credit Agreement”) As discussed below in 8.750 % Senior Secured First Lien Notes – due 2026, the Company used the proceeds from the 8.750 % Senior Notes to prepay the outstanding balance of $ 694,220 under the Term Loan Credit Agreement. The prepayment of the Term Loan Credit Agreement was in accordance with the terms of such agreement. Before being prepaid, the Term Loan Credit Agreement, as amended, provides for two pricing options for outstanding loans: (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 applicable margin for ABR and LIBOR borrowings are 1.75 % and 2.75 %, respectively, and will drop to 1.50 % and 2.50 %, respectively, if PCHI’s Senior Secured Leverage Ratio, as defined by the agreement, falls below 3.2 to 1.0 . 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. Additionally, 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, and (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 ). As indicated in Note 5, the Company paid down Term Loan debt of $ 62,770 . Additionally, in connection with the 2019 sale leaseback transaction and the sale of its Canadian retail operations, the Company used the net proceeds that remained uninvested on the anniversary date of each transaction to pay its term loan principal. 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 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, 2020 all outstanding borrowings were based on LIBOR and were at weighted average interest rate of 3.25 %. 8.75% Senior Secured First Lien Notes – due 2026 During February 2021, PCHI issued $ 750,000 of senior secured first lien notes at an interest rate of 8.750 % (“ 8.750 % Senior Notes”). The 8.750% Senior Notes will mature in February 2026 . The Company used the proceeds from the 8.750% Senior Notes to prepay the outstanding balance of $ 694,220 under its existing Term Loan Credit Agreement. The prepayment of the Term Loan Credit Agreement was in accordance with the terms of such agreement. In connection with the transaction, the Company wrote-off a portion of the existing capitalized deferred financing costs and original issuance discounts. Additionally, the Company incurred $ 18,976 of third-party fees, principally banker fees. The amounts expensed were recorded in Other expense, net in the Company’s Consolidated Statement of Operations and Comprehensive (Loss) Income and included in Gain on debt repayment in the Company’s Consolidated Statement of Cash Flows. Interest on the 8.750% Senior Notes is payable semi-annually in arrears on February 15th and August 15th of each year. The 8.750% Senior Notes are guaranteed, jointly and severally, on a senior secured basis by each of PCHI’s existing and future domestic subsidiaries. The 8.750% Senior Notes and related guarantees are secured by a first priority lien on substantially all assets of PCHI and the guarantors, except for the collateral that secures the senior credit facilities on a first lien basis, with respect to which the 8.750% Senior Notes and related guarantees will be secured by a second priority lien, in each case subject to permitted liens and certain exclusions and release provisions. The indenture governing the 8.750% Senior Notes contains covenants that, among other things, limit the PCHI’s ability and the ability of its restricted subsidiaries to: • incur additional indebtedness or issue certain disqualified stock or preferred stock; • create liens; • pay dividends or distributions, redeem or repurchase equity; • prepay junior lien indebtedness, unsecured pari passu indebtedness or subordinated indebtedness or make certain investments; • transfer or sell assets; • engage in consolidation, amalgamation or merger, or sell, transfer or otherwise dispose of all or substantially all of their assets; and • enter into certain transactions with affiliates. The indenture governing the notes also contains certain customary affirmative covenants and events of default. On or after August 15, 2023, 2024, and 2025, respectively, PCHI may redeem some or all of the 8.750 % Senior Notes at the redemption price of 104.375 %, 102.188 % and 100.000 %, respectively, plus accrued and unpaid interest, if any. In addition, PCHI may redeem up to 40 % of the aggregate principal amount outstanding on or before August 15, 2023 with the cash proceeds from certain equity offerings at a redemption price of 108.750 % of the principal amount, plus accrued and unpaid interest. PCHI may also redeem some or all of the notes before August 15, 2023 at a redemption price of 100 % of the principal amount plus a premium that is defined in the indenture. At any time prior to August 15, 2023, PCHI may also at its option redeem during each 12-month period commencing with the issue date up to 10 % of the aggregate principal amount of the 8.750 % Senior Notes at a redemption price of 103 % of the aggregate principal amount, plus accrued and unpaid interest, if any. Also, if PCHI experiences certain types of change in control, as defined, it may be required to offer to repurchase the 8.750% Senior Notes at 101 % of their principal amount. 6.125% Senior Notes — Due 2023 (“6.125% Senior Notes”) The 6.125 % 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. The notes are guaranteed, jointly and severally, on a senior basis by each of PCHI’s existing and future wholly-owned domestic subsidiaries. The 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 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. The Company may redeem the notes, in whole or in part, at par. 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 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. 6.625% Senior Notes — Due 2026 (“6.625% Senior Notes”) The 6.625 % Senior Notes mature on August 1, 2026 . Interest on the notes is payable semi-annually in arrears on February 1st and August 1st of each year. The notes are guaranteed, jointly and severally, on a senior basis by each of PCHI’s existing and future wholly-owned domestic subsidiaries. The 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 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 1, 2021, the Company may redeem the 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 1, Percentage 2021 103.313 % 2022 101.656 % 2023 and thereafter 100.000 % In addition, the Company may redeem up to 40 % of the aggregate principal amount outstanding on or before August 1, 2021 with the cash proceeds from certain equity offerings at a redemption price of 106.625 % of the principal amount. The Company may also redeem some or all of the notes before August 1, 2021 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 notes at 101 % of their principal amount. First Lien Party City Notes, First Lien Anagram Notes, Second Lien Anagram Notes On July 30, 2020 (the “Settlement Date”), the Company and certain of its direct or indirect subsidiaries, including PCHI, Anagram Holdings, LLC, a Delaware limited liability company and wholly owned direct subsidiary of PCHI (“Anagram Holdings”), and Anagram International, Inc., a Minnesota corporation and wholly owned direct subsidiary of Anagram Holdings, completed certain refinancing transactions, including, among other things: (i) the exchange of $ 327,076 of 6.125 % Senior Notes due 2023 (the “2023 Notes”) and $ 392,746 of 6.625 % Senior Notes due 2026 (the “2026 Notes” and, together with the 2023 Notes, the “Existing Notes”) issued by PCHI, in each case tendered in the Company’s offers to exchange pursuant to the terms described in a confidential offering memorandum, for (A) $ 156,669 of Senior Secured First Lien Floating Rate Notes due 2025 (the “First Lien Party City Notes”) issued by PCHI; (B) $ 84,687 of 10.00 % PIK/Cash Senior Secured Second Lien Notes due 2026 (the “Second Lien Anagram Notes”) issued by Anagram Holdings and Anagram International (together, the “Anagram Issuers”); and (C) 15,942,551 shares of the Company’s common stock, $ 0.01 par value per share (the “Common Stock”); (ii) the issuance of $ 110,000 in the aggregate of 15.00 % PIK/Cash Senior Secured First Lien Notes due 2025 (the “First Lien Anagram Notes”) by the Anagram Issuers and an additional $ 5,000 of First Lien Party City Notes in connection with a rights offering and a private placement, as applicable; and (iii) the solicitations of certain consents with respect to the indentures governing Existing Notes. The First Lien Party City Notes were issued pursuant to an indenture, dated as of the Settlement Date, among PCHI, as issuer, certain guarantors party thereto (the “Party City Guarantors”) and Ankura Trust Company, LLC (“Ankura”), as trustee and collateral trustee. The First Lien Party City Notes were issued in an aggregate amount of $ 161,669 and will mature on July 15, 2025 . Interest on the First Lien Party City Notes accrues from the Settlement Date at a floating rate equal to the 6-month London Inter-Bank Offered Rate plus 500 basis points (with a floor of 75 basis points) per annum, payable semi-annually in arrears on January 15 and July 15 of each year, commencing January 15, 2021. The First Lien Party City Notes are senior secured obligations of PCHI and the Party City Guarantors. The First Lien Party City Notes are pari passu in right of payment with all of PCHI’s other senior indebtedness, including the existing senior secured term loan facility and the ABL Facility, and are structurally subordinated to the First Lien Anagram Notes and the Second Lien Anagram Notes, to the extent of the value of the Anagram Collateral (as defined below). The First Lien Party City Notes are secured by a first priority lien on collateral that includes liens on substantially all assets (other than certain accounts, inventory, deposit accounts, securities accounts, related assets and general intangibles) of the Party City Guarantors, in each case subject to certain exceptions and permitted liens. The First Lien Anagram Notes were issued pursuant to an indenture, dated as of the Settlement Date, among Anagram Holdings, as issuer, Anagram International, as co-issuer, certain guarantors party thereto (the “Anagram Guarantors”) and Ankura, as trustee and collateral trustee. The First Lien Anagram Notes were issued in an aggregate amount of $ 110,000 and will mature on August 15, 2025 . Interest on the First Lien Anagram Notes accrues from the Settlement Date at (i) a rate of 10.00 % per annum, payable in cash; and (ii) a rate of 5.00 % per annum payable by increasing the principal amount of the outstanding First Lien Anagram Notes or issuing additional First Lien Anagram Notes, as the case may be, in each case payable semi-annually in arrears on February 15 and August 15 of each year, commencing February 15, 2021. The First Lien Anagram Notes are senior secured obligations of the Anagram Issuers and are pari passu in right of payment with all of the Anagram Issuers’ other senior indebtedness. The First Lien Anagram Notes are secured by a first priority lien on collateral that consists of substantially all assets and properties of the Anagram Issuers and the Anagram Guarantors, subject to certain exceptions and permitted liens (the “Anagram Collateral”). Such security interests are senior in priority to the security interests in such assets that secure the Second Lien Anagram Notes. The Second Lien Anagram Notes were issued pursuant to an indenture, dated as of the Settlement Date, among Anagram Holdings, as issuer, Anagram International, as co-issuer, the Anagram Guarantors and Ankura, as trustee and collateral trustee. The Second Lien Anagram Notes were issued in an aggregate amount of $ 84,687 and will mature on August 15, 2026 . Interest on the Second Lien Anagram Notes accrues from the Settlement Date at (i) a rate of 5.00 % per annum, payable, at the Anagram Issuers’ option, entirely in cash or entirely by increasing the principal amount of the outstanding Second Lien Anagram Notes or issuing additional Second Lien Anagram Notes, as the case may be; and (ii) a rate of 5.00 % per annum payable by increasing the principal amount of the outstanding Second Lien Anagram Notes or issuing additional Second Lien Anagram Notes, as the case may be, in each case payable semi-annually in arrears on February 15 and August 15 of each year, commencing February 15, 2021 ; provided, however, that on August 15, 2025, interest will be required to be paid by increasing the principal amount of the Second Lien Anagram Notes or issuing the principal amount of the Second Lien Anagram Notes or issuing additional Second Lien Anagram Notes. On February 15, 2026, the Anagram Issuers will prepay in cash a portion of the Second Lien Anagram Notes then outstanding in an amount necessary such that the Second Lien Anagram Notes are not treated as “applicable high yield discount obligations” within the meaning of Section 163(i) of the Internal Revenue Code of 1986, as amended. The Second Lien Anagram Notes are senior secured obligations of the Anagram Issuers and are pari passu in right of payment with all of the Anagram Issuers’ other senior indebtedness. The Second Lien Anagram Notes are secured by a second priority lien on the Anagram Collateral. Such security interests are junior to the security interests in such assets that secure the First Lien Anagram Notes. The Company evaluated the refinancing transaction in accordance with ASC 470-60 Troubled Debt Restructuring. The exchange of the 2023 Notes and 2026 Notes for the First Lien Party City Notes, Second Lien Anagram Notes and shares of Company Common Stock, as well as the concurrent purchase by the participants in the exchange of First Lien Anagram Notes represents a troubled debt restructuring (“TDR”). As the future undiscounted cash flows of the restructured debt were less than the net carrying value of the Existing Notes (including accrued interest and unamortized discount) adjusted for Common Stock issued to the participants in the exchange and such participants’ purchase of and lenders’ participation in the First Lien Anagram Notes, the Company recognized a gain of $ 273,149 which reflects $ 18,902 of third-party fees incurred, and $ 27,007 of Common Stock issued in the exchange. The Company received $ 39,544 of cash from the participants in the exchange related to $ 44,500 of principal amount of First Lien Anagram Notes with an undiscounted value of $ 82,160 , which includes interest expense. Interest expense is not currently recognized for this portion of the restructured debt. Another portion of the restructured debt related to one holder of Existing Notes did not result in gain recognition as the undiscounted cash flows of the restructured debt was higher than the carrying value of the existing debt. The carrying amount of this portion of the restructured debt is $ 32,328 and the interest expense will be recognized prospectively at a 3.5 % effective interest rate. Amounts attributed to purchasers of the First Lien Anagram Notes who were not participants in the exchange (principal balance of $ 50,500 ) are recognized at consideration received less allocated transaction costs (netting to $ 45,678 ) and the effective interest method will be used to recognize interest expense prospectively. Finance Lease Obligations Additionally, the Company has entered into various finance leases for building, machinery and equipment. At December 31, 2021 and December 31, 2020 the balances of such leases were $ 12,988 and $ 13,983 , respectively. Other 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 indentures governing the senior notes, the ABL Facility and the Term Loan Credit Agreement. As of December 31, 2020, the most restrictive of these conditions existed in the Term Loan Credit Agreement, which limited restricted payments based on PCHI’s consolidated net income and leverage ratios. 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 3 1, 2021, maturities of long-term obligations consisted of the following: Long-Term Finance Lease Totals 2022 $ — $ 1,373 $ 1,373 2023 22,924 521 23,445 2024 — 401 401 2025 348,330 365 348,695 2026 986,873 407 987,280 Thereafter — 9,921 9,921 Long-term obligations $ 1,358,127 $ 12,988 $ 1,371,115 |
Capital Stock
Capital Stock | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Capital Stock | Note 13 — Capital Stock At December 31, 2021, the Company’s authorized capital stock consisted of 300,000,000 shares of $ 0.01 par value common stock and 15,000,000 shares of $ 0.01 par value preferred stock. The changes in common shares outstanding during the three years ended December 31, 2019, December 31, 2020, and December 31, 2021 were as follows: Common Shares Outstanding at December 31, 2018 93,622,934 Issuance of restricted stock and restricted stock units 564,729 Treasury stock purchases ( 15,679 ) Vesting of restricted stock and restricted stock units 74,292 Exercise of stock options 215,300 Common Shares Outstanding at December 31, 2019 94,461,576 Issuance of stock as part of debt refinancing 15,942,551 Issuance of shares to directors 81,843 Treasury stock purchases ( 21,685 ) Vesting of restricted stock and restricted stock units 203,328 Exercise of stock options 114,000 Common Shares Outstanding at December 31, 2020 110,781,613 Issuance of shares to directors 353,911 Treasury stock purchases ( 706,458 ) Vesting of restricted stock and restricted stock units 1,670,995 Exercise of warrants 366,503 Cancellation of restricted stock awards ( 986,420 ) Exercise of stock options 690,800 Common Shares Outstanding at December 31, 2021 112,170,944 During the year ended December 31, 2021 , the Company purchased 706,458 treasury shares for $ 5,351 from its employees to cover federal and state and other tax withholdings associated with the vesting of restricted stock and restricted stock units. During the year ended December 31, 2020 , the Company purchased 21,685 treasury shares for $ 96 from its employees to cover federal and state and other tax withholdings associated with the vesting of restricted stock and restricted stock units. Additionally, during the year ended December 31, 2019, the Company purchased 15,679 treasury shares for $ 156 from its employees to cover federal and state and other tax withholdings associated with the vesting of restricted stock and restricted stock units. The shares are included in “common stock held in treasury” in the Company’s consolidated balance sheet. |
Other (Income) Expense, net
Other (Income) Expense, net | 12 Months Ended |
Dec. 31, 2021 | |
Other Income and Expenses [Abstract] | |
Other (Income) Expense, net | Note 14 — Other (Income) Expense, net Fiscal Year Ended December 31, 2021 2020 2019 Other (income) expense, net consists of the following: Undistributed loss (income) in equity method investments $ ( 220 ) $ 333 $ ( 472 ) Foreign currency (gain) losses ( 953 ) ( 1,058 ) 421 Debt refinancings (see Note 12) — — 36 Corporate development expenses 561 2,185 2,472 (Gain) on sale of Canada retail assets — — ( 2,873 ) Sale of ownership interest in Punchbowl (see Note 21) — — 2,169 Loss on sale of assets 143 95 — Other, net ( 145 ) 2,160 * 118 Other (income) expense, net $ ( 614 ) $ 3,715 $ 1,871 *2020 balance consists of expense related to Kazzam (see Note 25) and fees from international operations owned in 2020 (see Note 6) |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2021 | |
Postemployment Benefits [Abstract] | |
Employee Benefit Plans | Note 15 — 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, 2021, December 31, 2020, and December 31, 2019 totaled $ 9,460 , $ 8,615 , and $ 7,944 , respectively. |
Equity Incentive Plans
Equity Incentive Plans | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Equity Incentive Plans | Note 16 — 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, restricted stock units and common stock options to certain directors, officers, employees and consultants of Party City Holdco and its affiliates. 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 $ 396 , $ 796 , and $ 1,319 du ring the years ended December 31, 2021, December 31, 2020, and December 31, 2019, respectively. There were no time-based options granted during the year ended December 31, 2021. The fair value of time-based options granted during the year ended December 31, 2020 was estimated on the grant date using a Black-Scholes option valuation model based on the assumptions in the following table: Expected dividend rate — % Risk-free interest rate 0.2 % to 2.44 % Volatility 29.06 % to 135.74 % Expected option term 1.8 years — 5 years The Company determined volatility based on the average historical volatility of guideline companies. The Company estimated such expected terms based on the assumption that options will be exercised at the mid-point of the vesting of the options and the completion of the contractual lives of such options. The Company has based its estimated forfeiture rate on historical forfeitures for time-based options 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. The Company’s time-based options principally vest 20 % on each anniversary date. The Company records compensation expense for such options on a straight-lin e basis. As of December 31, 2021, there was $ 387 of unrecognized compensation cost, which will be recognized over a weighted-average period of approximately 13 months. Performance-based options During 2013, Party City Holdco granted performance-based stock options to key employees and independent directors. For those performance-based options, vesting was contingent on Thomas H. Lee Partners, L.P. (“THL”) achieving specified investment returns when it sold its entire ownership stake in Party City Holdco. In June 2020, THL distributed its remaining shares. At the time of the THL distribution, there were 2,539,600 performance options outstanding with an average grant date fair value of $ 3.09 . No ne of the performance-based options vested as the specified investment returns were not attained. The Company recorded compensation expense of $ 7,847 for the year ended December 31, 2020. 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, 2019, December 31, 2020, and December 31, 2021. Options Average Average Fair Aggregate Weighted Outstanding at December 31, 2018 6,927,174 $ 9.39 $ 4,089 5.2 Granted 337,000 $ 6.43 $ 2.16 Exercised ( 215,300 ) $ 5.33 Forfeited ( 730,157 ) $ 13.00 Outstanding at December 31, 2019 6,318,717 $ 8.95 $ 41,784 4.4 Granted 300,000 $ 3.67 $ 5.04 Exercised ( 114,000 ) $ 5.04 Forfeited ( 3,213,542 ) $ 5.99 Outstanding at December 31, 2020 3,291,175 $ 7.63 $ ( 41,545 ) 3.3 Granted — $ - Exercised ( 690,800 ) $ 5.33 Forfeited ( 1,568,156 ) $ 15.12 Outstanding at December 31, 2021 1,032,219 $ 10.18 $ ( 4,754 ) 4.5 Exercisable at December 31, 2021 862,719 $ 10.42 $ ( 4,182 ) 4.0 Expected to vest at December 31, 2021 (excluding performance-based options) 169,500 $ 8.95 $ ( 572,315 ) 7.2 The intrinsic value of options exercised was $ 1,277 , $ 332 and $ 1,254 for the years ended December 31, 2021, December 31, 2020, and December 31, 2019, respectively. The fair value of options vested was $ 410 , $ 254 , and $ 2,118 , during the years ended December 31, 2021, December 31, 2020, and December 31, 2019, respectively. Restricted stock and Restricted Stock Units The Company granted restricted stock and restricted stock units to certain executives, senior leaders and the Company’s independent directors. To the extent that the awards vest, the participants receive shares of the Company’s stock. The Company awarded restricted stock units based solely on service conditions. To the extent that such awards vest, one share of stock is issued for each award. These awards vest 1/3 per year over a 3-year period. In 2018, 2019, 2020 and 2021, 358,506 , 143,457 , 614,939 and 1,361,289 units were awarded, respectively. During the years ended December 31, 2021 , 2020 and 2019, the Company recorded $ 2,557 and $ 2,071 and $ 2,033 of compensation expense related to the service-based awards, respectively. Additionally, in 2018 and 2019 the Company granted performance-based awards that vest if certain cash flow and earnings per share targets are met for the three-year periods from January 1, 2018 to December 31, 2020 and January 1, 2019 to December 31,2021. Based on the Company’s results for the periods above the Company concluded that the performance conditions were not met and, therefore, the Company did no t record any compensation expense for the awards. The Company has based its estimated forfeiture rate for the restricted stock units and restricted stock on historical forfeitures for the Company’s time-based stock options as the number of awards given to each of the various levels of management is principally consistent with historical stock option grants and forfeitures are expected to be materially consistent with past experience. As of December 31, 2021 and December 31, 2020, there were $ 8,095 and $ 1,491 of unrecognized compensation cost for the service-based awards, respectively. Performance-based restricted stock units (PRSUs) On July 18, 2020, 6,448,276 performance-based restricted stock units ("PRSUs") and Restricted Cash awards were granted to certain executive officers and other employees. The performance period is three years from the grant date. The PRSUs and Restricted Cash become earned in a given period if the volume weighted average of the fair market value per share of the Common Stock meets or exceeds $ 2.50 , $ 5.00 , $ 7.50 , and $ 10.00 , respectively, for a period of not less than 90 consecutive days on the N e w Yo rk Stock Exchange and are subject to up to 2 years service-vesting after the achievement of these thresholds. The PRSUs and Restricted Cash awards are measured at fair value based on Monte Carlo simulation models, based on the assumptions in the table below . The PRSUs will be settled in Party City common stock and are accounted for as equity awards and the Restricted Cash will be settled in cash and are accounted for as liability awards. Expected dividend rate — % Risk-free interest rate 0.30 % to 0.32 % Volatility 106.31 % to 140.02 % Weighted average grant date fair value $ 1.02 At December 31, 2021, there was $ 2,061 o f total unrecognized compensation cost related to unvested PRSUs and Restricted Cash awards, which is expected to be recognized over 2.8 years. During the years ended December 31, 2021 and 2020, the Company recorded $ 3,773 and $ 1,460 of compensation expense related to these awards, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 17 — Income Taxes As outlined in Note 12 — Long-Term Obligations, on July 30, 2020, the Company and certain of its direct or indirect subsidiaries, completed certain refinancing transactions and as a result a substantial amount of the Company’s debt was extinguished. Absent an exception, a debtor recognizes cancellation of indebtedness income (CODI) upon discharge of its outstanding indebtedness for an amount of consideration that is less than its adjusted issue price. Since the Company was considered insolvent for tax purposes immediately before the exchange, CODI can be excluded from taxable income to the extent that the Company’s liabilities exceeded the fair market value of its gross assets at the date of the exchange. However, the Company must reduce certain of its tax attributes by the amount of any CODI excluded from taxable income, as limited by Section 1017(b)(2) of the Internal Revenue Code of 1986, as amended. The actual reduction in tax attributes occurs after the determination of tax for the year of the debt discharge and takes effect on the first day of the Company's tax year subsequent to the date of the refinancing transactions, or January 1, 2021. As a result of the refinancing transactions, the Company realized CODI of $ 552,671 , of which $ 500,989 was excluded from taxable income because of the insolvency exception. After application of the Section 1017(b)(2) limitation, the Company reduced its tax attributes and related deferred taxes by $ 217,532 ($ 47,663 , tax effected), with the balance of $ 283,457 ($ 59,526 , tax effected), treated as a permanent difference. The Company also has reduced its net operating loss carryforward by $ 525 , and its foreign tax credit carryforward by $ 4,101 . A summary of domestic and foreign income before income taxes follows: Fiscal Year Ended December 31, 2021 2020 2019 Domestic $ 193 $ ( 542,046 ) $ ( 572,287 ) Foreign ( 1,067 ) ( 143,064 ) 38,124 Total $ ( 874 ) $ ( 685,110 ) $ ( 534,163 ) The income tax expense (benefit) consisted of the following: Fiscal Year Ended December 31, 2021 2020 2019 Current: Federal $ 9,491 $ ( 61,528 ) $ 28,908 State 911 ( 1,639 ) 4,613 Foreign 461 1,599 12,540 Total current expense 10,863 ( 61,568 ) 46,061 Deferred: Federal ( 6,707 ) ( 70,440 ) ( 37,166 ) State 1,356 ( 19,252 ) ( 11,207 ) Foreign 196 ( 5,393 ) 1,007 Total deferred (benefit) expense ( 5,155 ) ( 95,085 ) ( 47,366 ) Income tax (benefit) expense $ 5,708 $ ( 156,653 ) $ ( 1,305 ) 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. Deferred income tax assets and liabilities consisted of the following: December 31, 2021 2020 Deferred income tax assets: Inventory reserves and capitalization $ 20,007 $ 9,199 Allowance for doubtful accounts 1,884 2,020 Accrued liabilities 9,624 16,798 Equity based compensation 4,316 4,437 State tax loss carryforwards 8,433 9,610 Foreign tax loss carryforwards 2,586 2,839 Debt Exchange basis difference 47,853 58,270 Section 163(j) Interest Limitation 18,126 — Lease Liabilities 198,332 199,585 Outside basis differences in foreign subsidiaries (APB 23) 1,113 12,800 Capitalized refinancing and other costs 4,692 4,216 Other 2,016 3,922 Deferred income tax assets before valuation 318,982 323,696 Less: valuation allowances ( 12,608 ) ( 13,731 ) Deferred income tax assets, net $ 306,374 $ 309,965 Deferred income tax liabilities: Depreciation $ 42,548 $ 45,984 Trade Name 99,039 98,817 Amortization of goodwill and other assets 13,065 11,654 Loss Recapture and other differences — 10,962 Foreign earnings expected to be repatriated 969 1,072 Lease Right of Use Assets 175,942 166,617 Other 4,006 9,281 Deferred income tax liabilities $ 335,569 $ 344,387 The Company nets all of its deferred income tax assets and liabilities on a jurisdictional basis and classifies them as noncurrent on the balance sheet. In the Company’s December 31, 2021 consolidated balance sheet, $ 29,195 was included in deferred income tax liabilities. In the Company’s December 31, 2020 consolidated balance sheet, $ 283 was included in “other assets, net” and $ 34,705 was included in deferred income tax liabilities, while $ 2,628 of net deferred income tax assets were included in “Assets held for sale”. 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, be realized in the future. The change in the valuation allowance primarily relates to state net operating losses. As of December 31, 2021, the Company had foreign tax-effected net operating loss carryforwards in Mexico of $ 2,586 , which begin to expire in 2024. In addition, the U.S. state net operating loss carryforwards begin to expire in 2022 , with the majority expiring in 15 to 20 years , or having no expiration date. The difference between the Company’s effective income tax rate and the U.S. statutory income tax rate is as follows: Fiscal Year Ended December 31, 2021 2020 2019 Tax provision at U.S. statutory income tax rate 21.0 % 21.0 % 21.0 % State income tax, net of federal income tax ( 205.0 ) 2.4 1.0 Valuation allowances 23.1 ( 2.7 ) ( 0.4 ) GILTI and Foreign-Derived Intangible Income 83.8 — ( 0.6 ) Foreign earnings ( 37.5 ) 1.3 ( 1.5 ) U.S. — foreign rate differential ( 35.3 ) 0.4 ( 0.6 ) CARES Act: 5-year NOL carryback — 2.9 — Debt exchange – cancellation of debt — 8.7 — Goodwill Impairment — ( 10.3 ) ( 17.9 ) Uncertain tax positions ( 560.2 ) ( 1.4 ) ( 0.7 ) Other 57.0 0.6 ( 0.1 ) Effective income tax rate ( 653.1 ) % 22.9 % 0.2 % 2021 Tax Rate : The effective income tax rate is significantly influenced by the relative impact of permanent differences and tax accruals on lower pretax earnings. CARES Act : On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act (“the CARES Act”) was signed into law. The CARES Act was a $2 trillion legislative package intended to provide economic relief to companies impacted by the COVID-19 pandemic, and it included: 5-year net operating loss carryback, temporary relaxation of the limitations on interest deductions, qualified improvement property eligible for bonus depreciation, employee retention tax credits, and deferral of payment of payroll tax. The carry back of the 2020 net operating loss to prior years when the federal statutory rate was 35 % resulted in the 2.9 % effective rate benefit above. Cancellation of Debt : As mentioned above, in July 2020, the Company and certain of its direct or indirect subsidiaries, completed certain refinancing transactions and as a result a substantial amount of the Company’s debt was extinguished. $ 59,526 of the cancellation of debt income was excluded from income, which resulted in a tax benefit of 8.7 % on the effective tax rate. Goodwill Impairment: During the third and fourth quarters of 2019, and the first quarter of 2020, the Company recognized non-cash goodwill impairment charges totaling $ 556,056 and $ 401,436 , respectively. No tax benefit was recognized on $ 455,689 of the 2019 charge and $ 336,238 of the 2020 charge, resulting in unfavorable impacts to the income tax rate of 17.9 % and 10.3 %, respectively. Other : In 2021, the Other line includes reconciling items above 5 % of the U.S. statutory income tax rate, and their impact to the effective income tax rate is significantly influenced by the small pretax loss. These items are not individually significant, with the largest item less than $ 1 M in tax. These Other differences between the effective income tax rate and the U.S. statutory income tax rate are composed primarily of compensation related items and the Work Opportunity Tax Credit. Transition Tax on Unremitted Foreign Earnings : The Tax Cuts and Jobs Act of 2017 (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 “deemed repatriation” tax on unremitted earnings accumulated in non-U.S. jurisdictions since 1986 (the “Transition Tax”). At December 31, 2021, $ 4,205 of the Transition Tax remains unpaid and is recorded in “Other long-term liabilities” in the Company’s consolidated balance sheet. The Company has elected to pay the Transition Tax over eight annual installments without interest. The following table summarizes the activity related to the Company’s gross unrecognized tax benefits: Fiscal Year Ended December 31, 2021 2020 2019 Balance at beginning of year $ 13,890 $ 4,891 $ 1,320 Increases related to current period tax positions 3,759 8,186 652 Increases related to prior period tax positions 3,885 1,061 3,030 Decreases related to settlements ( 6,245 ) — — Decreases related to lapsing of statutes of ( 268 ) ( 248 ) ( 111 ) Balance at end of year $ 15,021 $ 13,890 $ 4,891 The Company’s total unrecognized tax benefits that, if recognized, would impact the Company’s effective tax rate were $ 11,568 and $ 13,890 at December 31, 2021 and 2020, respectively. The Company recognizes accrued interest and penalties related to unrecognized tax benefits in income tax expense. The Company has accrued $ 450 and $ 949 for the potential payment of interest and penalties at December 31, 2021 and 2020, respectively. Such amounts are not included in the table above. The Company and the IRS recently settled the examination of the year ended December 31, 2015, resulting in an impact to the effective income tax rate. For U.S. state income tax purposes, tax years 2017-2021 generally remain open; for non-U.S. income tax purposes, tax years 2017-2021 generally remain open. |
Commitments, Contingencies and
Commitments, Contingencies and Related Party Transactions | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Contingencies and Related Party Transactions | Note 18 — Commitments, Contingencies and Related Party Transactions Litigation 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, 2021, the Company’s commitment to pay future minimum product royalties was as follows: Future Minimum 2022 $ 14,937 2023 8,114 2024 1,600 Thereafter — $ 24,651 Product royalty expense for the years ended December 31, 2021, December 31, 2020, and December 31, 2019 was $ 33,136 , $ 33,331 , and $ 48,170 , respectively. Related Party Transactions In the ordinary course of business the Company is involved in transactions with certain of its equity-method investees, primarily for the purchase of finished goods inventory. For the year ended December 31, 2021, the Company purchased $ 59.5 million. Approximately $ 30.4 million of these purchases are reflected in finished goods inventory as of December 31, 2021. As of December 31, 2021, the Company had accounts payable of $ 18.3 million related to such transactions. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | Note 19 — 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, principally under the names Party City and Halloween City, and it operates e-commerce websites, principally through the domain name PartyCity.com. The Company’s industry segment data for the years ended Decem ber 31, 2021, December 31, 2020, and December 31, 2019 are as follows: Wholesale Retail Consolidated Year Ended December 31, 2021 Net sales before eliminations $ 990,636 $ 1,769,986 $ 2,760,622 Eliminations ( 589,562 ) — ( 589,562 ) Total revenues 401,074 1,769,986 2,171,060 (Loss) from operations $ ( 28,492 ) $ 113,124 $ 84,632 Interest expense, net 87,226 Other expense, net ( 614 ) Gain on debt refinancing ( 1,106 ) Loss before income taxes ( 874 ) Depreciation and amortization 21,778 43,832 65,610 Capital expenditures ( 22,572 ) ( 56,650 ) ( 79,222 ) Total assets $ 1,355,010 $ 1,356,890 $ 2,711,900 Wholesale Retail Consolidated Year Ended December 31, 2020 Net sales before eliminations $ 940,228 $ 1,382,325 $ 2,322,553 Eliminations ( 471,863 ) — ( 471,863 ) Total revenues $ 468,365 $ 1,382,325 $ 1,850,690 (Loss) from operations $ ( 303,663 ) $ ( 573,838 ) $ ( 877,501 ) Interest expense, net 77,043 Other expense, net 3,715 Gain on debt refinancing ( 273,149 ) Income before income taxes $ ( 685,110 ) Depreciation and amortization $ 25,813 $ 50,693 $ 76,506 Capital expenditures $ ( 22,206 ) $ ( 28,922 ) $ ( 51,128 ) Total assets $ 1,123,322 $ 1,683,133 $ 2,806,455 Wholesale Retail Consolidated Year Ended December 31, 2019 Net sales before eliminations $ 1,240,026 $ 1,751,415 $ 2,991,441 Eliminations ( 642,652 ) — ( 642,652 ) Total revenues $ 597,374 $ 1,751,415 $ 2,348,789 Income from operations $ 4,152 $ ( 421,545 ) $ ( 417,393 ) Interest expense, net 114,899 Other income, net 1,871 Income before income taxes $ ( 534,163 ) Depreciation and amortization $ 27,845 $ 53,271 $ 81,116 Capital expenditures $ 29,480 $ 32,253 $ 61,733 Total assets $ 1,912,522 $ 1,682,797 $ 3,595,319 Geographic Regions Export sales of metallic balloons of $ 55,756 , $ 19,847 , and $ 22,728 during the years ended December 31, 2021, December 31, 2020, and December 31, 2019, 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. Th e Company’s geographic area data follows: Domestic Foreign Eliminations Consolidated Year Ended December 31, 2021 Revenues: Net sales to unaffiliated customers $ 2,095,849 $ 75,211 $ — $ 2,171,060 Net sales between geographic areas 17,798 10,067 ( 27,865 ) — Total revenues $ 2,113,647 $ 85,278 $ ( 27,865 ) $ 2,171,060 (Loss) from operations $ 86,095 $ ( 1,463 ) $ — $ 84,632 Interest expense, net 87,226 Other expense, net ( 1,720 ) (Loss) before income taxes $ ( 874 ) Depreciation and amortization $ 63,755 $ 1,855 $ 65,610 Total long-lived assets (excluding goodwill, trade $ 242,396 $ 5,425 $ 247,821 Total assets $ 2,657,333 $ 54,567 $ — $ 2,711,900 Domestic Foreign Eliminations Consolidated Year Ended December 31, 2020 Revenues: Net sales to unaffiliated customers $ 1,581,294 $ 269,396 $ — $ 1,850,690 Net sales between geographic areas 167,945 113,828 ( 281,773 ) — Total revenues $ 1,749,239 $ 383,224 $ ( 281,773 ) $ 1,850,690 Income from operations $ ( 644,338 ) $ 14,189 $ ( 247,352 ) $ ( 877,501 ) Interest expense, net 77,043 Other expense, net ( 269,434 ) Income before income taxes $ ( 685,110 ) Depreciation and amortization $ 70,586 $ 5,920 $ 76,506 Total long-lived assets (excluding goodwill, trade $ 103,885 $ 24,746 $ 128,631 Total assets $ 2,518,490 $ 287,965 $ — $ 2,806,455 Domestic Foreign Eliminations Consolidated Year Ended December 31, 2019 Revenues: Net sales to unaffiliated customers $ 1,977,598 $ 371,191 $ — $ 2,348,789 Net sales between geographic areas 57,117 86,811 ( 143,928 ) — Total revenues $ 2,034,715 $ 458,002 $ ( 143,928 ) $ 2,348,789 Income from operations $ ( 412,225 ) $ ( 5,168 ) $ — $ ( 417,393 ) Interest expense, net 114,899 Other income, net 1,871 Income before income taxes $ ( 534,163 ) Depreciation and amortization $ 72,701 $ 8,415 $ 81,116 Total long-lived assets (excluding goodwill, trade $ 224,692 $ 26,156 $ 250,848 Total assets $ 3,317,305 $ 278,014 $ — $ 3,595,319 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Leases | Note 20 — Leases In February 2016, the FASB issued ASU 2016-02, “Leases”. The ASU requires that companies recognize assets and liabilities for the rights and obligations created by the companies’ leases. The update was effective for the Company during the first quarter of 2019. 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 assets. The Company did not elect this practical expedient. 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 components as a single lease component. The Company has elected this expedient for all asset classes, with the exception of its real estate. 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 asset for the Company’s finance leases is included in Property, plant and equipment, net on the Company’s consolidated balance sheet. The liabilities for the Company’s finance leases are included in Current portion of long-term obligations and Long-term obligations, excluding current portion, on the Company’s consolidated balance sheet. The Company’s sub-leases are also immaterial. Additionally, for most store leases, the Company pays variable taxes and insurance. Renewal Options 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 assets and lease liabilities for such leases as exercise of the options is not reasonably certain. 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 years ended December 31, 2021 and 2020, the Company’s operating lease cost was $ 181,637 and $ 189,924 , respectively. Such amount excludes impairment charges recorded in conjunction with the Company’s store optimization program (see Note 3 - Store Impairment and Restructuring Charges). The Company’s variable lease cost during the years ended December 31, 2021 and 2020 were $ 27,100 and $ 27,443 respectively. During the years ended December 31, 2021 and 2020, cash paid for amounts included in the measurement of operating lease liabilities was $ 223,905 and $ 140,699 , respectively. During the years ended December 31, 2021 and 2020, right-of-use assets obtained in exchange for new operating lease liabilities were $ 101,742 and $ 70,460 , respectively. As of December 31, 2021 and 2020, the weighted-average remaining lease term for operating leases was 5 years and 6 years, respectively, and the weighted-average discount rate for operating leases was 8.6 % and 8.6 %, respectively. Future Minimum 2022 $ 190,126 2023 175,276 2024 150,537 2025 135,788 2026 104,138 Thereafter 313,162 Total undiscounted cash flows 1,069,027 Less: Interest ( 296,715 ) Total operating lease liability 772,312 Less: Current portion of operating lease liability ( 116,437 ) Long-term portion of operating lease liability $ 655,875 Additionally, the Company had approximately $ 110 mi llion of future payment obligations related to an executed lease agreement for which the related lease has not commenced as of December 31, 2021. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 21 — 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. Additionally, at such time, the Company received the ability to “call” the interest of the other investors. During the twelve months ended December 31, 2019, the option was terminated, and the Company wrote off its asset related to the call option and reversed its liability related to the put option. Prior to such time, the Company had been adjusting the put liability to fair value on a recurring basis. The liability represented a Level 3 fair value measurement as it was based on unobservable inputs. In November 2019, the Company sold its ownership interest in Punchbowl. The Company recorded a net charge of $ 2,169 in other expenses, net for the option termination and the sale of its ownership interest. During 2017, the Company and Ampology, a subsidiary of Trivergence, reached an agreement to form a new legal entity, Kazzam, LLC (“Kazzam”), for the purpose of designing, developing and launching an online exchange platform for party-related services. As part of Ampology’s compensation for designing, developing and launching the exchange platform, Ampology received an ownership interest in Kazzam. The interest had been recorded as redeemable securities in the mezzanine of the Company’s consolidated balance sheet as Ampology had the right to cause the Company to purchase the interest. The liability was adjusted to the greater of the current fair value or the original fair value at the time at which the ownership interest was issued (adjusted for any subsequent changes in the ownership interest percentage). On March 23, 2020, the Company agreed to purchase all of Ampology’s interest in Kazzam. Refer to Note 25 – Kazzam, LLC for further detail. As of December 31, 2019 and December 31, 2018 the original value was greater than the fair value, thus a table is not provided for December 31, 2019. In addition, the company has no material derivative assets and liabilities as of December 31, 2019 and no derivative assets and liabilities as of December 31, 2020. The majority of the Company’s non-financial instruments, which include goodwill, intangible assets, inventories and property, plant and equipment, are not required to be carried at fair value on a recurring basis. However, if certain triggering events occur (or at least annually for goodwill and indefinite-lived intangible assets), a non-financial instrument is required to be evaluated for impairment. If the Company determines that the non-financial instrument is impaired, the Company would be required to write down the non-financial instrument to its fair value. See Note 3 — Store Impairment and Restructuring charges and Note 4 – Goodwill 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 December 31, 2021 because of the short-term maturities of the instruments and/or their variable rates of interest. The carrying amounts and fair values of borrowings under the Term Loan Credit Agreement and the senior notes as of December 31, 2021 are as follows: Carrying Amount Fair Value 8.75% Senior Secured First Lien Notes – due 2026 $ 750,000 $ 772,500 6.125% Senior Notes — due 2023 22,924 20,536 6.625% Senior Notes — due 2026 92,254 79,048 First Lien Party City Notes – due 2025 198,004 185,411 First Lien Anagram Notes – due 2025 150,326 167,804 Second Lien Anagram Notes – due 2026 144,619 150,653 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, 2021 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, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Note 22 — Derivative Financial Instruments The Company is directly and indirectly affected by changes in certain market conditions. These changes in market conditions may adversely impact the Company’s financial performance and are referred to as market risks. The Company, when deemed appropriate, uses derivatives as a risk management tool to mitigate the potential impact of certain market risks. The primary market risks managed through the use of derivative financial instruments are interest rate risk and foreign currency exchange rate risk. Foreign Exchange Risk Management A portion of the Company’s cash flows is derived from transactions denominated in foreign currencies. In 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, 2020 and 2019, 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 did no t have any foreign currency exchange contracts at December 31, 2021. The following table displays the fair values of the Company’s derivatives at December 31, 2020 and December 31, 2019: Derivative Assets Derivative Liabilities December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019 Balance Fair Balance Fair Balance Fair Balance Fair Foreign Exchange Contracts (a) PP $ — (a) PP $ — (b) AE $ 303 (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 December 31, 2020 and December 31, 2019: Derivative Instrument December 31, December 31, Foreign Exchange Contracts $ 3,850 $ 300 |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Income (Loss) | Note 23 — Changes in Accumulated Other Comprehensive Income (Loss) The changes in accumulated other comprehensive income (loss) consisted of the following: Year Ended December 31, 2021 Foreign Currency Adjustments Impact of Foreign Exchange Contracts, Net of Taxes Total, Net of Taxes Balance at December 31, 2020 $ ( 31,264 ) $ 1,348 $ ( 29,916 ) Other comprehensive (loss) income before ( 1,784 ) 77 ( 1,707 ) Release of cumulative foreign currency translation adjustment to net income (loss) as a result of disposition of international operations 36,589 ( 1,422 ) 35,167 Amounts reclassified from accumulated other — ( 3 ) ( 3 ) Net current-period other comprehensive income (loss) 34,805 ( 1,348 ) 33,457 Balance at December 31, 2021 $ 3,541 $ — $ 3,541 Year Ended December 31, 2020 Foreign Impact of Total, Net Balance at December 31, 2019 $ ( 37,434 ) $ 1,700 $ ( 35,734 ) Other comprehensive income before 6,170 ( 495 ) 5,675 Amounts reclassified from accumulated other — 143 143 Net current-period other comprehensive (loss) income 6,170 ( 352 ) 5,818 Balance at December 31, 2020 $ ( 31,264 ) $ 1,348 $ ( 29,916 ) Year Ended December 31, 2019 Foreign Impact of Total, Net Balance at December 31, 2018 $ ( 50,056 ) $ 855 $ ( 49,201 ) Other comprehensive income (loss) before 5,725 106 5,831 Amounts reclassified from accumulated other 6,897 739 7,636 Net current-period other comprehensive income (loss) 12,622 845 13,467 Balance at December 31, 2019 $ ( 37,434 ) $ 1,700 $ ( 35,734 ) |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Note 24 — Revenue from Contracts with Customers In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)”. The pronouncement contains a five-step model which replaces most existing revenue recognition guidance. The Company adopted the standard on January 1, 2018 via a modified retrospective approach and recognized the cumulative effect of the adoption as an adjustment to January 1, 2018 retained earnings. Revenue Transactions — Retail Revenue from retail store operations is recognized at the point of sale as control of the product is transferred to the customer at such time. Retail e-commerce sales are recognized when the consumer receives the product as control transfers upon delivery. Due to its extensive history operating as the largest party goods retailer in North America, the Company has sufficient history with which to estimate future retail sales returns and it uses the expected value method to estimate such activity. The transaction price for the 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 sales, the Company records such amounts in revenue. The Company has chosen the pronouncement’s policy election which allows it to exclude all sales taxes and value-added taxes from revenue. 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 fee which is earned by the Company for its assistance with site selection and development of the new location. Both the sales-based royalty fee and the one-time fee are recorded in royalties and franchise fees in the Company’s consolidated statement of operations and comprehensive (loss) income. Revenue Transactions — Wholesale For most of the Company’s wholesale sales, control transfers upon the Company’s shipment of the product. 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 fixed based on the contract and/or purchase order. To the extent that the Company charges customers for freight costs, the Company records such amounts in revenue. The Company has chosen the pronouncement’s policy election which allows it to exclude 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. For all transactions for which the Company expects to collect the transaction price within a year from the transfer of control, the Company applies one of the pronouncement’s practical expedients and does not adjust the consideration for the effects of a significant financing component. Judgments 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. Due to its extensive history operating as a leading party goods retailer, the Company has sufficient history with which to estimate such amounts. Other Revenue Topics During the years ended December 31, 2021, December 31, 2020, and December 31, 2019, impairment losses recognized on receivables and contract assets arising from the Company’s contracts with customers were immaterial. As a significant portion of the Company’s revenue is either: 1) part of a contract with an original expected duration of one year or less, or 2) related to sales-based royalties promised in exchange for licenses of intellectual property, the Company has elected to apply the optional exemptions in paragraphs ASC 606-10-50-14 through ASC 606-10-50-14A. Additionally, the Company has elected to apply the practical expedient which allows companies to recognize the incremental costs of obtaining a contract as an expense if the amortization period of the asset that the entity otherwise would have recognized would have been one year or less . Disaggregation of Revenue The following table summarizes revenue from contracts with customers for the years ended December 31, 2021, December 31, 2020, and December 31, 2019: Fiscal Year Ended December 31, 2021 2020 2019 Retail Net Sales: Party City Stores* $ 1,734,261 $ 1,374,680 $ 1,700,812 Temporary Stores 35,726 7,645 50,603 Total Retail Revenues $ 1,769,987 $ 1,382,325 $ 1,751,415 Wholesale Net Sales: Domestic $ 263,661 $ 238,936 $ 310,042 International 137,412 229,429 287,332 Total Wholesale Net Sales $ 401,073 $ 468,365 $ 597,374 Total Consolidated Revenue $ 2,171,060 $ 1,850,690 $ 2,348,789 * 2021 sales represent in person and online sales of product in stores The Company maintains allowances for credit losses resulting from the inability of the Company’s customers to make required payments. Judgment is required in assessing the ultimate realization of these receivables, including consideration of the Company’s history of receivable write-offs, the level of past due accounts and the economic status of the Company’s customers. In an effort to identify adverse trends relative to customer economic status, the Company assesses the financial health of the markets it operates in and performs periodic credit evaluations of its customers and ongoing reviews of account balances and aging of receivables. Amounts are considered past due when payment has not been received within the time frame of the credit terms extended. Write-offs are charged directly against the allowance for credit losses and occur only after all collection efforts have been exhausted. The Company will continue to actively monitor the impact of the COVID-19 pandemic on expected losses. At December 31, 2021 and December 31,2020, the allowance for credit losses was $ 8,057 and $ 7,232 , respectively. |
Kazzam, LLC
Kazzam, LLC | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Kazzam, LLC | Note 25 — Kazzam, LLC During the first quarter of 2017, the Company and Ampology, a subsidiary of Trivergence, reached an agreement to form a new legal entity, Kazzam, LLC (“Kazzam”), for the purpose of designing, developing and launching an online exchange platform for party-related services. At December 31, 2019, although the Company owned 26 % of Kazzam’s equity, Kazzam was a variable interest entity and the Company consolidated Kazzam into the Company’s financial statements. Further, the Company was funding all of Kazzam’s start-up activities via a loan to Kazzam and recorded its operating results in “development stage expenses” in the Company’s consolidated statement of operations and comprehensive (loss) income. Ampology’s ownership interest in Kazzam had been recorded in redeemable securities in the mezzanine of the Company’s consolidated balance sheet. In January 2020, the Company and Ampology terminated certain services agreements and warrants that Ampology had in the Company stock. The parties concurrently entered into an interim transition agreement for which expenses are recorded as development stage expenses. On March 23, 2020, the Company agreed to purchase Ampology’s interest in Kazzam in exchange for a three-year royalty on net service revenue and a warrant to purchase up to 1,000,000 shares of the Company’s common stock. The acquisition of Ampology’s interest in Kazzam is an equity transaction and the difference between the fair value of the consideration transferred and the carrying value of Ampology’s interest in Kazzam is recorded within the consolidated statement of stockholders’ equity. |
Schedule I - Condensed Financia
Schedule I - Condensed Financial Information of Registrant | 12 Months Ended |
Dec. 31, 2021 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule I - Condensed Financial Information of Registrant | SCHEDULE I—CONDENSED FINANCI AL INFORMATION OF REGISTRANT PARTY CITY HOLDCO INC. (Parent company only) CONDENSED BALANCE SHEETS (Dollars in thousands) December 31, December 31, ASSETS Other assets (principally investment in and amounts due from wholly- $ 82,714 $ 50,790 Total assets $ 82,714 $ 50,790 LIABILITIES, REDEEMABLE SECURITIES AND Total liabilities $ — $ — Redeemable securities — — Stockholders’ equity: Common stock ( 112,170,944 and 110,781,613 shares outstanding and 124,157,500 and 121,662,540 shares issued at December 31, 2021 and December 31, 2020, respectively) 1,384 1,373 Additional paid-in capital 982,307 971,972 Retained (deficit) earnings ( 571,985 ) ( 565,457 ) Accumulated other comprehensive income (loss) 3,541 ( 29,916 ) Total stockholders’ equity before common stock held in treasury 415,247 377,972 Less: Common stock held in treasury, at cost ( 11,986,556 and 11,280,098 shares at ( 332,533 ) ( 327,182 ) Total stockholders’ equity 82,714 50,790 Total liabilities, redeemable securities and stockholders’ equity $ 82,714 $ 50,790 See accompanying notes to these condensed financial statements. PARTY CITY HOLDCO INC. (Parent company only) CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME (Dollars in thousands) Fiscal Year Ended December 31, 2021 2020 2019 Equity in net income of subsidiaries $ ( 6,528 ) $ ( 528,238 ) $ ( 532,495 ) Net income $ ( 6,528 ) $ ( 528,238 ) $ ( 532,495 ) Add: Net income attributable to redeemable securities holder — — — Net income attributable to common shareholders of Party $ ( 6,528 ) $ ( 528,238 ) $ ( 532,495 ) Other comprehensive (loss) income, net 33,457 5,818 13,467 Comprehensive income 26,929 ( 522,420 ) ( 519,028 ) Comprehensive income attributable to redeemable securities — — — Comprehensive income attributable to common shareholders $ 26,929 $ ( 522,420 ) $ ( 519,028 ) See accompanying notes to these condensed financial statements. PARTY CITY HOLDCO INC. (Parent company only) CONDENSED STATEMENTS OF CASH FLOWS (Dollars in thousands) Fiscal Year Ended December 31, 2021 2020 2019 Cash flows provided by (used in) operating activities: Net income $ ( 6,528 ) $ ( 528,238 ) $ ( 532,495 ) Adjustments to reconcile net income to net cash provided Equity in net income of subsidiaries 6,528 528,238 532,495 Change in due to/from affiliates 1,678 ( 49 ) ( 989 ) Net cash (used in) provided by operating activities 1,678 ( 49 ) ( 989 ) Cash flows (used in) provided by financing activities: Treasury stock purchases ( 5,351 ) ( 96 ) ( 156 ) Exercise of stock options 3,673 145 1,145 Net cash provided by (used in) financing activities ( 1,678 ) 49 989 Net change in cash and cash equivalents — — — Cash and cash equivalents at beginning of period — — — Cash and cash equivalents at end of period $ — $ — $ — |
Basis of presentation and descr
Basis of presentation and description of registrant | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of presentation and description of registrant | Note 1 — Basis of presentation and description of registrant Party City Holdco Inc. Schedule I, Condensed Financial Information of Registrant, 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 does not conduct any 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, 2021 | |
Text Block [Abstract] | |
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, 2021 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II- Valuation and Qualifying Accounts | SCHEDU LE II PARTY CITY HOLDCO INC. VALUATION AND QUALIFYING ACCOUNTS The Years Ended December 31, 2019, December 31, 2020, and December 31, 2021 (Dollars in thousands) Beginning Write-Offs Additions Ending Allowance for Doubtful Accounts: For the year ended December 31, 2019 $ 2,933 $ 470 $ 2,323 $ 4,786 For the year ended December 31, 2020 4,786 3,875 6,321 7,232 For the year ended December 31, 2021 7,232 1,744 2,569 8,057 Sales Returns and Allowances: For the year ended December 31, 2019 $ 741 $ 83,474 $ 83,409 $ 676 For the year ended December 31, 2020 676 61,935 61,935 676 For the year ended December 31, 2021 676 72,151 72,091 616 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
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 period or 53-week period ended on the Saturday nearest December 31st of each year and define their fiscal quarters (“Fiscal Quarter”) as the four interim 13-week periods following the end of the previous Fiscal Year, except in the case of a 53-week Fiscal Year when the fourth Fiscal Quarter is extended to 14 weeks. Fiscal 2021 was a 52-week year for our retail operations. The consolidated financial statements of the Company combine the Fiscal Year and Fiscal Quarters of the Company’s retail operations with the calendar year and calendar quarters of the Company’s wholesale operations, as the differences are not significant. |
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. In assessing the ultimate realization of inventories, the Company makes judgments regarding, among other things, future demand and market conditions, current inventory levels and the impact of the possible discontinuation of product designs. The Company principally determines the cost of inventory using the weighted average method. The Company estimates retail inventory shrinkage for the period between physical inventory dates on a store-by-store basis. Inventory shrinkage estimates can be affected by changes in merchandise mix and changes in actual shortage trends. The shrinkage rate from the most recent physical inventory, in combination with historical experience, is the basis for estimating shrinkage. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts Refer to Note 24 — Revenue from Contracts with Customers for detail. |
Long-Lived and Intangible Assets (including Goodwill) | Long-Lived and Intangible Assets (including Goodwill) Property, plant and equipment are stated at cost. 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/asset groups, other than goodwill, based upon the lowest level of independent cash flows ascertainable to evaluate impairment. If an impairment indicator exists, we compare the undiscounted future cash flows of the asset/asset group to the carrying value of the asset/asset group. If the sum of the undiscounted future cash flows is less than the carrying value of the asset/asset group, we would calculate discounted future cash flows based on market participant assumptions. If the sum of discounted cash flows is less than the carrying value of the asset/asset group, we would 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 generally on a store-by-store basis. Various factors including future sales growth and profit margins are included in this analysis. The Company evaluates the goodwill associated with its acquisitions, and other intangibles with indefinite lives, for impairment on October 1 based on current and projected performance, or more frequently if circumstances indicate a possible impairment. For purposes of testing goodwill for impairment, reporting units are determined by identifying operating segments within the Company’s organization which constitute a business for which discrete financial information is available and is reviewed by management. Components within an operating 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 such carrying value exceeds the fair value an impairment loss will be recognized in an amount equal to such 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. Our Trade names are treated as indefinite-lived intangible assets and, therefore are not amortized, but rather are tested for impairment annually in the fourth fiscal quarter, unless there are events requiring an earlier assessment or changes in circumstances during an interim period providing impairment indicators are present. When performing a quantitative impairment assessment of our Trade name indefinite-lived intangible assets, the fair value of the Trade names is estimated using a discounted cash flow analysis based on the "relief from royalty" method, assuming that a third party would be willing to pay a royalty in lieu of ownership for this intangible asset. This approach is dependent on many factors, including estimates of future growth, royalty rates, and discount rates. Actual future results may differ from these estimates. Impairment loss is recognized when the estimated fair value of the indefinite-lived intangible asset is less than its carrying amount. |
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 terms of the instruments using the effective interest method. |
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 of accounting. The Company also has an investment in a joint venture partnership for its costume sourcing and manufacturing business in Asia which is accounted for using the equity method of accounting. See Variable Interest Entities section below for additional information. The Company’s investments are included in Other assets, net on the consolidated balance sheet and its portion of the results of the investees’ operations are included in Other expense, net in the consolidated statement of operations and comprehensive (loss) income (see Note 14, Other Expense, net). |
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 Retail Revenue from retail store operations is recognized at the point of sale as control of the product is transferred to the customer at such time. Retail e-commerce sales are recognized when the consumer receives the product as control transfers upon delivery. Due to its extensive history operating as a party goods retailer in North America, the Company has sufficient history with which to estimate future retail sales returns and it uses the expected value method to estimate such activity. The transaction price for the 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 sales, the Company records such amounts in revenue. The Company excludes all sales taxes and value-added taxes from revenue. 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 fee which is earned by the Company for its assistance with site selection and development of the new location. Both the sales-based royalty fee and the one-time fee are recorded in Net sales in the Company’s consolidated statement of operations and comprehensive (loss) income. Wholesale For most of the Company’s wholesale sales, control transfers upon the Company’s shipment of the product. 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 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 fixed based on the contract and/or purchase order. 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. For all transactions for which the Company expects to collect the transaction price within a year from the transfer of control, the Company does not adjust the consideration for the effects of a significant financing component. |
Cost of Sales/Shipping and Handling | 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, 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 costs of goods purchased from third parties and the production costs/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, utilities and common area maintenance), depreciation on assets and all logistics costs (i.e., handling and distribution costs) associated with the Company’s e-commerce business. |
Retail Operating Expenses | Retail Operating Expenses Retail operating expenses include costs associated with the operation of the Company’s retail stores (with the exception of occupancy costs, which are included in cost of sales). Retail operating expenses principally consist of employee compensation and benefits, advertising, supplies expense and credit card fees. |
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, net, 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, 2021, December 31, 2020, and December 31, 2019 were $ 55,339 , $ 61,036 and $ 72,518 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 voting rights. If the Company concludes that the legal entity is a variable interest entity, the Company next determines whether it is the primary beneficiary due to it possessing both: 1) the power to direct the activities of a variable interest entity that most significantly impact the variable interest entity’s economic performance, and 2) the obligation to absorb losses of the variable interest entity that potentially could be significant to the variable interest entity or the right to receive benefits from the variable interest entity which could be significant to the variable interest entity. If the Company concludes that it is the primary beneficiary, it consolidates the legal entity. In January 2021, in connection with the sale of a substantial portion of its international operations, the Company formed a joint venture partnership for its costume sourcing and manufacturing business in Asia. The Company concluded that it is not the joint venture's primary beneficiary and will account for its investment under the equity method. See Equity Method Investments section above. There were no variable interest entities as of December 31, 2020. Refer to Note 25 – Kazzam, LLC for additional information. |
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 basis. 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 ., hedging the exposure to variability in expected future cash flows that is attributable to a particular risk), the effective portion of the gain or loss on the derivative instrument is reported as a component of accumulated other comprehensive (loss) income and reclassified into net income in the same period or periods during which the hedged transaction affects earnings. The ineffective portion of a cash flow hedge, if any, is determined based on the dollar-offset method ( i.e ., the gain or loss on the derivative financial instrument in excess of the cumulative change in the present value of future cash flows of the hedged item) and is recognized in net income during the period of change. As long as hedge effectiveness is maintained, foreign currency exchange agreements qualify for hedge accounting as cash flow hedges. Se e Note 22– Derivative Financial Instruments. |
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. The Company also granted performance-based restricted stock units ("PRSUs") and Restricted Cash awards to certain executive officers and other employees. The performance period is three years from the grant date. The PRSUs and Restricted Cash awards become earned in a given period if the volume weighted average of the fair market value per share of the Common Stock meets or exceeds $ 2.50 , $ 5.00 , $ 7.50 , and $ 10.00 , respectively, for a period of not less than 90 consecutive trading days on the New York Stock Exchange and are subject to up to 2 years service-vesting after the achievement of these thresholds. The PRSUs and Restricted Cash awards are measured at fair value based on Monte Carlo simulation models. The PRSUs will be settled in Party City common stock and are accounted for as equity awards and the Restricted Cash will be settled in cash and are accounted for as liability awards. |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Income (Loss) Accumulated other comprehensive income (loss) consists of the Company’s foreign currency adjustments and the impact of foreign exchange contracts that qualify as hedges. Se e Note 22 – Derivative Financial Instruments and Note 23 – Changes in Accumulated Other Comprehensive Income (Loss). |
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 recognized in the Company’s statement of operations and comprehensive (loss) income. 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 (loss) income and are included as a component of accumulated other comprehensive income (loss). |
Earnings Per Share | 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 per share is as follows: Twelve Months Ended December 31, 2021 2020 2019 Net (loss) income attributable to common shareholders of $ ( 6,528 ) $ ( 528,238 ) $ ( 532,495 ) Weighted average shares — Basic: 110,980,934 100,804,944 93,295,692 Effect of dilutive restricted stock units: — — — Effect of dilutive stock options: — — — Weighted average shares — Diluted: 110,980,934 100,804,944 93,295,692 Net (loss) income per share attributable to common $ ( 0.06 ) $ ( 5.24 ) $ ( 5.71 ) Net (loss) income per share attributable to common $ ( 0.06 ) $ ( 5.24 ) $ ( 5.71 ) During the year ended December 31, 2021 , 1,514,010 restricted stock units, 4,653,373 performance restricted stock units and 1,032,219 stock options were excluded from the calculation of diluted net loss per share attributable to common shareholders of Party City Holdco Inc. – diluted as they were anti-dilutive. During the years ended December 31, 2020, and December 31, 2019, 3,240,461 stock options and 3,510,317 stock options, respectively, were excluded from the calculations of net income per share attributable to common shareholders of Party City Holdco Inc. – diluted as they were anti-dilutive. Additionally, during the years ended December 31, 2020, and December 31, 2019, 1,000,000 and 596,000 warrants, respectively, were excluded from the calculations of net income per share attributable to common shareholders of Party City Holdco Inc. – diluted as they were anti-dilutive. Further, during the years ended December 31, 2020, and December 31, 2019, 787,313 restricted stock units and 413,968 restricted stock units, respectively, were excluded from the calculations of net income per share attributable to common shareholders of Party City Holdco Inc. – diluted as they were anti-dilutive. Also, during the year ended December 31, 2020, 1,206,723 performance restricted stock units were excluded from the calculations of net income per share attributable to common shareholders of Party City Holdco Inc. – diluted as they were anti-dilutive. |
Recently Issued Accounting Pronouncements | Recently Issued Accountin g Pronouncements In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-04, which provides guidance providing optional expedients and exceptions for applying U.S. generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by the discontinuation of the London Interbank Offered Rate (“LIBOR”) or by another reference rate expected to be discontinued. Additionally, in January 2021, the FASB issued ASU 2021-01, which allows entities to elect certain optional expedients and exceptions when accounting for derivative contracts and certain hedging relationships affected by changes in the interest rates. The Company does not expect an impact on our consolidated financial statements. In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832), Disclosures by Business Entities About Government Assistance, which requires entities to provide disclosures on material government assistance transactions for annual reporting periods. The disclosures include information around the nature of the assistance, the related accounting policies used to account for government assistance, the effect of government assistance on the entity’s financial statements, and any significant terms and conditions of the agreements, including commitments and contingencies. The new standard is effective for the Corporation on January 1, 2022 and only impacts annual financial statement footnote disclosures. The adoption will not have a material effect on our consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which removes certain exceptions for intra-period allocations and interim tax calculations and adds guidance to simplify accounting for income taxes. The guidance is effective for interim and annual periods beginning after December 15, 2020. The adoption of this guidance did not have a material impact on our consolidated financial statements. |
Shipping and Handling [Member] | |
Cost of Sales/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. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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: Twelve Months Ended December 31, 2021 2020 2019 Net (loss) income attributable to common shareholders of $ ( 6,528 ) $ ( 528,238 ) $ ( 532,495 ) Weighted average shares — Basic: 110,980,934 100,804,944 93,295,692 Effect of dilutive restricted stock units: — — — Effect of dilutive stock options: — — — Weighted average shares — Diluted: 110,980,934 100,804,944 93,295,692 Net (loss) income per share attributable to common $ ( 0.06 ) $ ( 5.24 ) $ ( 5.71 ) Net (loss) income per share attributable to common $ ( 0.06 ) $ ( 5.24 ) $ ( 5.71 ) |
Store Impairment and Restruct_2
Store Impairment and Restructuring Charges (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Restructuring and Related Activities [Abstract] | |
Store Impairment and Restructuring Charges | In conjunction with the store optimization program and store impairment, there were no charges for 2021 and during the years ended December 31, 2020 and 2019, the Company recorded the following: December 31, 2020 2019 Inventory reserves $ 12,880 $ 21,284 Operating lease asset impairment 15,520 14,943 Property, plant and equipment impairment 2,065 4,680 Labor and other costs incurred closing stores 4,864 8,754 Severance — 661 Total $ 35,329 $ 50,322 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Asset Impairment [Abstract] | |
Schedule of Changes in Goodwill by Reporting Segment | Fiscal Year Ended December 31, 2021 2020 Wholesale segment: Beginning balance $ 333,184 $ 493,432 Goodwill impairment — ( 148,326 ) Foreign currency translation ( 414 ) 1,483 Goodwill related to divested international business* ( 1,042 ) ( 13,405 ) Ending balance 331,728 333,184 Retail segment: Beginning balance 328,067 578,898 Store acquisitions 4,501 1,512 Goodwill impairment — ( 253,110 ) Foreign currency translation — 767 Ending balance 332,568 328,067 Total ending balance, both segments $ 664,296 $ 661,251 * December 31, 2020 amount was classified within assets held for sale. |
Disposition of Assets and Ass_2
Disposition of Assets and Assets and Liabilities Held for Sale (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Assets and Liabilities of International Operations as Held for Sale | As of December 31, 2020, the Company reported the assets and liabilities of the international operations as held for sale in its consolidated balance sheet and include the following: Fiscal Year Ended December 31, 2020 Wholesale Retail Total Cash $ 25,989 $ 5,639 $ 31,628 Accounts receivable, net 31,932 460 32,392 Inventories, net 55,574 10,526 66,100 Prepaid expense 4,375 4,419 8,794 Goodwill 13,405 - 13,405 Other assets, net 1,891 2,848 4,739 Total assets held for sale $ 133,166 $ 23,892 157,058 Held for sale reserve ( 73,948 ) Assets held for sale, net $ 83,110 Fiscal Year Ended December 31, 2020 Wholesale Retail Total Loans and notes payable $ 1,311 $ — $ 1,311 Accounts payable 23,364 2,107 25,471 Current operating lease liability 4,174 384 4,558 Accrued expenses 16,527 6,998 23,525 Income taxes payable and Deferred income tax liabilities 258 1,976 2,234 Long term obligations excluding current portion 40 - 40 Other long-term liabilities - 3,354 3,354 Long term operating lease liability 6,167 1,832 7,999 Total, net $ 51,841 $ 16,651 $ 68,492 |
Inventories, Net (Tables)
Inventories, Net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories | Inventories consisted of the following: December 31, 2021 2020 Finished goods $ 393,609 $ 367,275 Raw materials 25,624 27,111 Work in process 24,062 17,899 $ 443,295 $ 412,285 |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, Net | Property, plant and equipment, net consisted of the following: December 31, 2021 2020 Useful lives Machinery and equipment $ 245,983 $ 247,255 3 - 15 years Buildings 6,277 9,982 40 years Data processing equipment 131,989 129,988 3 - 5 years Leasehold improvements 203,503 176,389 1 - 10 years Furniture and fixtures 228,818 218,452 5 - 10 years Land 180 8,359 816,750 790,425 Less: accumulated depreciation ( 594,880 ) ( 581,013 ) $ 221,870 $ 209,412 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Identifiable Intangible Assets | The Company had the following other identifiable finite-lived intangible assets: December 31, 2021 Cost Accumulated Net Useful lives Franchise-related intangible assets $ 73,225 $ 59,311 $ 13,914 4 - 19 years Customer lists and relationships 58,911 49,154 9,757 2 - 20 years Copyrights and designs 29,030 29,014 16 5 - 7 years Total $ 161,166 $ 137,479 $ 23,687 December 31, 2020 Cost Accumulated Net Useful lives Franchise-related intangible assets $ 77,377 $ 57,524 $ 19,853 4 - 19 years Customer lists and relationships 62,002 49,739 12,263 2 - 20 years Copyrights and designs 29,030 29,012 18 5 - 7 years Total $ 168,409 $ 136,275 $ 32,134 |
Long-Term Obligations (Tables)
Long-Term Obligations (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Summary of Long-Term Obligations | Long-term obligations consisted of the following: December 31, 2021 December 31, 2020 Principal Amount Gross Carrying Amount Deferred Financing Costs* Net Carrying Amount Net Carrying Senior secured term loan facility (“Term Loan Credit Agreement”) $ — $ — $ — $ — $ 690,165 8.75 % Senior Secured First Lien Notes – due 2026 750,000 750,000 ( 17,043 ) 732,957 — 6.125 % Senior Notes — due 2023 22,924 22,924 ( 90 ) 22,834 22,779 6.625 % Senior Notes — due 2026 92,254 92,254 ( 663 ) 91,591 106,315 First Lien Party City Notes – due 2025 161,669 198,004 — 198,004 206,775 First Lien Anagram Notes – due 2025 115,804 150,326 ( 757 ) 149,569 151,335 Second Lien Anagram Notes – due 2026 89,155 144,619 — 144,619 152,032 Finance lease obligations 12,988 12,988 — 12,988 13,983 Total long-term obligations 1,244,794 1,371,115 ( 18,553 ) 1,352,562 1,343,384 Less: current portion (1,373 ) (1,373 ) — ( 1,373 ) ( 13,576 ) Long-term obligations, excluding current portion $ 1,243,421 $ 1,369,742 $ ( 18,553 ) $ 1,351,189 $ 1,329,808 * The Company incurred and capitalized third-party costs as deferred financing, which is being amortized over the life of the debt. |
Summary of Debt Instrument Redemption | The Company may redeem the notes, in whole or in part, at par. On or after August 1, 2021, the Company may redeem the 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 1, Percentage 2021 103.313 % 2022 101.656 % 2023 and thereafter 100.000 % |
Maturities of Long-Term Obligations | At December 3 1, 2021, maturities of long-term obligations consisted of the following: Long-Term Finance Lease Totals 2022 $ — $ 1,373 $ 1,373 2023 22,924 521 23,445 2024 — 401 401 2025 348,330 365 348,695 2026 986,873 407 987,280 Thereafter — 9,921 9,921 Long-term obligations $ 1,358,127 $ 12,988 $ 1,371,115 |
Capital Stock (Tables)
Capital Stock (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Federal Home Loan Banks [Abstract] | |
Summary Changes in Common Shares Outstanding | The changes in common shares outstanding during the three years ended December 31, 2019, December 31, 2020, and December 31, 2021 were as follows: Common Shares Outstanding at December 31, 2018 93,622,934 Issuance of restricted stock and restricted stock units 564,729 Treasury stock purchases ( 15,679 ) Vesting of restricted stock and restricted stock units 74,292 Exercise of stock options 215,300 Common Shares Outstanding at December 31, 2019 94,461,576 Issuance of stock as part of debt refinancing 15,942,551 Issuance of shares to directors 81,843 Treasury stock purchases ( 21,685 ) Vesting of restricted stock and restricted stock units 203,328 Exercise of stock options 114,000 Common Shares Outstanding at December 31, 2020 110,781,613 Issuance of shares to directors 353,911 Treasury stock purchases ( 706,458 ) Vesting of restricted stock and restricted stock units 1,670,995 Exercise of warrants 366,503 Cancellation of restricted stock awards ( 986,420 ) Exercise of stock options 690,800 Common Shares Outstanding at December 31, 2021 112,170,944 |
Other (Income) Expense, net (Ta
Other (Income) Expense, net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other Income and Expenses [Abstract] | |
Summary of Other Expense, Net | Fiscal Year Ended December 31, 2021 2020 2019 Other (income) expense, net consists of the following: Undistributed loss (income) in equity method investments $ ( 220 ) $ 333 $ ( 472 ) Foreign currency (gain) losses ( 953 ) ( 1,058 ) 421 Debt refinancings (see Note 12) — — 36 Corporate development expenses 561 2,185 2,472 (Gain) on sale of Canada retail assets — — ( 2,873 ) Sale of ownership interest in Punchbowl (see Note 21) — — 2,169 Loss on sale of assets 143 95 — Other, net ( 145 ) 2,160 * 118 Other (income) expense, net $ ( 614 ) $ 3,715 $ 1,871 *2020 balance consists of expense related to Kazzam (see Note 25) and fees from international operations owned in 2020 (see Note 6) |
Equity Incentive Plans (Tables)
Equity Incentive Plans (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Summary of Changes in Outstanding Options | The following table summarizes the changes in outstanding stock options for the years ended December 31, 2019, December 31, 2020, and December 31, 2021. Options Average Average Fair Aggregate Weighted Outstanding at December 31, 2018 6,927,174 $ 9.39 $ 4,089 5.2 Granted 337,000 $ 6.43 $ 2.16 Exercised ( 215,300 ) $ 5.33 Forfeited ( 730,157 ) $ 13.00 Outstanding at December 31, 2019 6,318,717 $ 8.95 $ 41,784 4.4 Granted 300,000 $ 3.67 $ 5.04 Exercised ( 114,000 ) $ 5.04 Forfeited ( 3,213,542 ) $ 5.99 Outstanding at December 31, 2020 3,291,175 $ 7.63 $ ( 41,545 ) 3.3 Granted — $ - Exercised ( 690,800 ) $ 5.33 Forfeited ( 1,568,156 ) $ 15.12 Outstanding at December 31, 2021 1,032,219 $ 10.18 $ ( 4,754 ) 4.5 Exercisable at December 31, 2021 862,719 $ 10.42 $ ( 4,182 ) 4.0 Expected to vest at December 31, 2021 (excluding performance-based options) 169,500 $ 8.95 $ ( 572,315 ) 7.2 |
Time Based Stock Options [Member] | |
Fair Value of Options Granted | The fair value of time-based options granted during the year ended December 31, 2020 was estimated on the grant date using a Black-Scholes option valuation model based on the assumptions in the following table: Expected dividend rate — % Risk-free interest rate 0.2 % to 2.44 % Volatility 29.06 % to 135.74 % Expected option term 1.8 years — 5 years |
Performance-based Restricted Stock Units [Member] | |
Fair Value of Options Granted | The PRSUs and Restricted Cash awards are measured at fair value based on Monte Carlo simulation models, based on the assumptions in the table below Expected dividend rate — % Risk-free interest rate 0.30 % to 0.32 % Volatility 106.31 % to 140.02 % Weighted average grant date fair value $ 1.02 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Summary of Domestic and Foreign Income Before Income Taxes | A summary of domestic and foreign income before income taxes follows: Fiscal Year Ended December 31, 2021 2020 2019 Domestic $ 193 $ ( 542,046 ) $ ( 572,287 ) Foreign ( 1,067 ) ( 143,064 ) 38,124 Total $ ( 874 ) $ ( 685,110 ) $ ( 534,163 ) |
Summary of Income Tax Expense (Benefit) | The income tax expense (benefit) consisted of the following: Fiscal Year Ended December 31, 2021 2020 2019 Current: Federal $ 9,491 $ ( 61,528 ) $ 28,908 State 911 ( 1,639 ) 4,613 Foreign 461 1,599 12,540 Total current expense 10,863 ( 61,568 ) 46,061 Deferred: Federal ( 6,707 ) ( 70,440 ) ( 37,166 ) State 1,356 ( 19,252 ) ( 11,207 ) Foreign 196 ( 5,393 ) 1,007 Total deferred (benefit) expense ( 5,155 ) ( 95,085 ) ( 47,366 ) Income tax (benefit) expense $ 5,708 $ ( 156,653 ) $ ( 1,305 ) |
Summary of Deferred Income Tax Assets and Liabilities | Deferred income tax assets and liabilities consisted of the following: December 31, 2021 2020 Deferred income tax assets: Inventory reserves and capitalization $ 20,007 $ 9,199 Allowance for doubtful accounts 1,884 2,020 Accrued liabilities 9,624 16,798 Equity based compensation 4,316 4,437 State tax loss carryforwards 8,433 9,610 Foreign tax loss carryforwards 2,586 2,839 Debt Exchange basis difference 47,853 58,270 Section 163(j) Interest Limitation 18,126 — Lease Liabilities 198,332 199,585 Outside basis differences in foreign subsidiaries (APB 23) 1,113 12,800 Capitalized refinancing and other costs 4,692 4,216 Other 2,016 3,922 Deferred income tax assets before valuation 318,982 323,696 Less: valuation allowances ( 12,608 ) ( 13,731 ) Deferred income tax assets, net $ 306,374 $ 309,965 Deferred income tax liabilities: Depreciation $ 42,548 $ 45,984 Trade Name 99,039 98,817 Amortization of goodwill and other assets 13,065 11,654 Loss Recapture and other differences — 10,962 Foreign earnings expected to be repatriated 969 1,072 Lease Right of Use Assets 175,942 166,617 Other 4,006 9,281 Deferred income tax liabilities $ 335,569 $ 344,387 |
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: Fiscal Year Ended December 31, 2021 2020 2019 Tax provision at U.S. statutory income tax rate 21.0 % 21.0 % 21.0 % State income tax, net of federal income tax ( 205.0 ) 2.4 1.0 Valuation allowances 23.1 ( 2.7 ) ( 0.4 ) GILTI and Foreign-Derived Intangible Income 83.8 — ( 0.6 ) Foreign earnings ( 37.5 ) 1.3 ( 1.5 ) U.S. — foreign rate differential ( 35.3 ) 0.4 ( 0.6 ) CARES Act: 5-year NOL carryback — 2.9 — Debt exchange – cancellation of debt — 8.7 — Goodwill Impairment — ( 10.3 ) ( 17.9 ) Uncertain tax positions ( 560.2 ) ( 1.4 ) ( 0.7 ) Other 57.0 0.6 ( 0.1 ) Effective income tax rate ( 653.1 ) % 22.9 % 0.2 % |
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: Fiscal Year Ended December 31, 2021 2020 2019 Balance at beginning of year $ 13,890 $ 4,891 $ 1,320 Increases related to current period tax positions 3,759 8,186 652 Increases related to prior period tax positions 3,885 1,061 3,030 Decreases related to settlements ( 6,245 ) — — Decreases related to lapsing of statutes of ( 268 ) ( 248 ) ( 111 ) Balance at end of year $ 15,021 $ 13,890 $ 4,891 |
Commitments, Contingencies an_2
Commitments, Contingencies and Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Future Minimum Product Royalties | At December 31, 2021, the Company’s commitment to pay future minimum product royalties was as follows: Future Minimum 2022 $ 14,937 2023 8,114 2024 1,600 Thereafter — $ 24,651 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Company's Industry Segment Data | The Company’s industry segment data for the years ended Decem ber 31, 2021, December 31, 2020, and December 31, 2019 are as follows: Wholesale Retail Consolidated Year Ended December 31, 2021 Net sales before eliminations $ 990,636 $ 1,769,986 $ 2,760,622 Eliminations ( 589,562 ) — ( 589,562 ) Total revenues 401,074 1,769,986 2,171,060 (Loss) from operations $ ( 28,492 ) $ 113,124 $ 84,632 Interest expense, net 87,226 Other expense, net ( 614 ) Gain on debt refinancing ( 1,106 ) Loss before income taxes ( 874 ) Depreciation and amortization 21,778 43,832 65,610 Capital expenditures ( 22,572 ) ( 56,650 ) ( 79,222 ) Total assets $ 1,355,010 $ 1,356,890 $ 2,711,900 Wholesale Retail Consolidated Year Ended December 31, 2020 Net sales before eliminations $ 940,228 $ 1,382,325 $ 2,322,553 Eliminations ( 471,863 ) — ( 471,863 ) Total revenues $ 468,365 $ 1,382,325 $ 1,850,690 (Loss) from operations $ ( 303,663 ) $ ( 573,838 ) $ ( 877,501 ) Interest expense, net 77,043 Other expense, net 3,715 Gain on debt refinancing ( 273,149 ) Income before income taxes $ ( 685,110 ) Depreciation and amortization $ 25,813 $ 50,693 $ 76,506 Capital expenditures $ ( 22,206 ) $ ( 28,922 ) $ ( 51,128 ) Total assets $ 1,123,322 $ 1,683,133 $ 2,806,455 Wholesale Retail Consolidated Year Ended December 31, 2019 Net sales before eliminations $ 1,240,026 $ 1,751,415 $ 2,991,441 Eliminations ( 642,652 ) — ( 642,652 ) Total revenues $ 597,374 $ 1,751,415 $ 2,348,789 Income from operations $ 4,152 $ ( 421,545 ) $ ( 417,393 ) Interest expense, net 114,899 Other income, net 1,871 Income before income taxes $ ( 534,163 ) Depreciation and amortization $ 27,845 $ 53,271 $ 81,116 Capital expenditures $ 29,480 $ 32,253 $ 61,733 Total assets $ 1,912,522 $ 1,682,797 $ 3,595,319 |
Schedule of Company's Industry Geographic Segments | Th e Company’s geographic area data follows: Domestic Foreign Eliminations Consolidated Year Ended December 31, 2021 Revenues: Net sales to unaffiliated customers $ 2,095,849 $ 75,211 $ — $ 2,171,060 Net sales between geographic areas 17,798 10,067 ( 27,865 ) — Total revenues $ 2,113,647 $ 85,278 $ ( 27,865 ) $ 2,171,060 (Loss) from operations $ 86,095 $ ( 1,463 ) $ — $ 84,632 Interest expense, net 87,226 Other expense, net ( 1,720 ) (Loss) before income taxes $ ( 874 ) Depreciation and amortization $ 63,755 $ 1,855 $ 65,610 Total long-lived assets (excluding goodwill, trade $ 242,396 $ 5,425 $ 247,821 Total assets $ 2,657,333 $ 54,567 $ — $ 2,711,900 Domestic Foreign Eliminations Consolidated Year Ended December 31, 2020 Revenues: Net sales to unaffiliated customers $ 1,581,294 $ 269,396 $ — $ 1,850,690 Net sales between geographic areas 167,945 113,828 ( 281,773 ) — Total revenues $ 1,749,239 $ 383,224 $ ( 281,773 ) $ 1,850,690 Income from operations $ ( 644,338 ) $ 14,189 $ ( 247,352 ) $ ( 877,501 ) Interest expense, net 77,043 Other expense, net ( 269,434 ) Income before income taxes $ ( 685,110 ) Depreciation and amortization $ 70,586 $ 5,920 $ 76,506 Total long-lived assets (excluding goodwill, trade $ 103,885 $ 24,746 $ 128,631 Total assets $ 2,518,490 $ 287,965 $ — $ 2,806,455 Domestic Foreign Eliminations Consolidated Year Ended December 31, 2019 Revenues: Net sales to unaffiliated customers $ 1,977,598 $ 371,191 $ — $ 2,348,789 Net sales between geographic areas 57,117 86,811 ( 143,928 ) — Total revenues $ 2,034,715 $ 458,002 $ ( 143,928 ) $ 2,348,789 Income from operations $ ( 412,225 ) $ ( 5,168 ) $ — $ ( 417,393 ) Interest expense, net 114,899 Other income, net 1,871 Income before income taxes $ ( 534,163 ) Depreciation and amortization $ 72,701 $ 8,415 $ 81,116 Total long-lived assets (excluding goodwill, trade $ 224,692 $ 26,156 $ 250,848 Total assets $ 3,317,305 $ 278,014 $ — $ 3,595,319 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
The Future Cash flows for The Company's Operating Leases | As of December 31, 2021 and 2020, the weighted-average remaining lease term for operating leases was 5 years and 6 years, respectively, and the weighted-average discount rate for operating leases was 8.6 % and 8.6 %, respectively. Future Minimum 2022 $ 190,126 2023 175,276 2024 150,537 2025 135,788 2026 104,138 Thereafter 313,162 Total undiscounted cash flows 1,069,027 Less: Interest ( 296,715 ) Total operating lease liability 772,312 Less: Current portion of operating lease liability ( 116,437 ) Long-term portion of operating lease liability $ 655,875 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Summary of Carrying Amount and Fair Value | The carrying amounts and fair values of borrowings under the Term Loan Credit Agreement and the senior notes as of December 31, 2021 are as follows: Carrying Amount Fair Value 8.75% Senior Secured First Lien Notes – due 2026 $ 750,000 $ 772,500 6.125% Senior Notes — due 2023 22,924 20,536 6.625% Senior Notes — due 2026 92,254 79,048 First Lien Party City Notes – due 2025 198,004 185,411 First Lien Anagram Notes – due 2025 150,326 167,804 Second Lien Anagram Notes – due 2026 144,619 150,653 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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, 2020 and December 31, 2019: Derivative Assets Derivative Liabilities December 31, 2020 December 31, 2019 December 31, 2020 December 31, 2019 Balance Fair Balance Fair Balance Fair Balance Fair Foreign Exchange Contracts (a) PP $ — (a) PP $ — (b) AE $ 303 (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 December 31, 2020 and December 31, 2019: Derivative Instrument December 31, December 31, Foreign Exchange Contracts $ 3,850 $ 300 |
Changes in Accumulated Other _2
Changes in Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Loss | The changes in accumulated other comprehensive income (loss) consisted of the following: Year Ended December 31, 2021 Foreign Currency Adjustments Impact of Foreign Exchange Contracts, Net of Taxes Total, Net of Taxes Balance at December 31, 2020 $ ( 31,264 ) $ 1,348 $ ( 29,916 ) Other comprehensive (loss) income before ( 1,784 ) 77 ( 1,707 ) Release of cumulative foreign currency translation adjustment to net income (loss) as a result of disposition of international operations 36,589 ( 1,422 ) 35,167 Amounts reclassified from accumulated other — ( 3 ) ( 3 ) Net current-period other comprehensive income (loss) 34,805 ( 1,348 ) 33,457 Balance at December 31, 2021 $ 3,541 $ — $ 3,541 Year Ended December 31, 2020 Foreign Impact of Total, Net Balance at December 31, 2019 $ ( 37,434 ) $ 1,700 $ ( 35,734 ) Other comprehensive income before 6,170 ( 495 ) 5,675 Amounts reclassified from accumulated other — 143 143 Net current-period other comprehensive (loss) income 6,170 ( 352 ) 5,818 Balance at December 31, 2020 $ ( 31,264 ) $ 1,348 $ ( 29,916 ) Year Ended December 31, 2019 Foreign Impact of Total, Net Balance at December 31, 2018 $ ( 50,056 ) $ 855 $ ( 49,201 ) Other comprehensive income (loss) before 5,725 106 5,831 Amounts reclassified from accumulated other 6,897 739 7,636 Net current-period other comprehensive income (loss) 12,622 845 13,467 Balance at December 31, 2019 $ ( 37,434 ) $ 1,700 $ ( 35,734 ) |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Revenue from Contracts with Customers | The following table summarizes revenue from contracts with customers for the years ended December 31, 2021, December 31, 2020, and December 31, 2019: Fiscal Year Ended December 31, 2021 2020 2019 Retail Net Sales: Party City Stores* $ 1,734,261 $ 1,374,680 $ 1,700,812 Temporary Stores 35,726 7,645 50,603 Total Retail Revenues $ 1,769,987 $ 1,382,325 $ 1,751,415 Wholesale Net Sales: Domestic $ 263,661 $ 238,936 $ 310,042 International 137,412 229,429 287,332 Total Wholesale Net Sales $ 401,073 $ 468,365 $ 597,374 Total Consolidated Revenue $ 2,171,060 $ 1,850,690 $ 2,348,789 * 2021 sales represent in person and online sales of product in stores |
Organization, Description of _2
Organization, Description of Business and Basis of Presentation - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2021Store | |
PC Nextco [Member] | |
Basis Of Presentation [Line Items] | |
Ownership percentage | 100.00% |
PC Intermediate [Member] | |
Basis Of Presentation [Line Items] | |
Ownership percentage | 100.00% |
Party City Holdings Inc [Member] | |
Basis Of Presentation [Line Items] | |
Ownership percentage | 100.00% |
United States and Canada [Member] | |
Basis Of Presentation [Line Items] | |
Number of stores | 830 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Jul. 18, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Significant Accounting Policies [Line Items] | |||||
Retail advertising expenses | $ 55,339 | $ 61,036 | $ 72,518 | ||
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] | true | true | |||
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect [true false] | true | ||||
Increase (decrease) in retained earnings | 82,714 | $ 50,521 | 529,721 | $ 1,043,621 | |
Retained (deficit) earnings | (571,985) | (565,457) | |||
Retained Earnings (Deficit) [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Increase (decrease) in retained earnings | $ (571,985) | $ (565,457) | $ (37,219) | 495,777 | |
Cumulative Effect of Change in Accounting Principle, Net [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Increase (decrease) in retained earnings | 159 | ||||
Cumulative Effect of Change in Accounting Principle, Net [Member] | Retained Earnings (Deficit) [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Increase (decrease) in retained earnings | $ (503) | ||||
Restricted Stock Units (RSUs) [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Antidilutive securities excluded from calculation of earnings per share | 1,514,010 | 787,313 | 413,968 | ||
Performance Restricted Stock Units [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Antidilutive securities excluded from calculation of earnings per share | 4,653,373 | 1,206,723 | |||
Employee Stock Option [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Antidilutive securities excluded from calculation of earnings per share | 1,032,219 | 3,240,461 | 3,510,317 | ||
Warrant [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Antidilutive securities excluded from calculation of earnings per share | 1,000,000 | 596,000 | |||
Performance-based Restricted Stock Units [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Share based stock awards vesting period | 3 years | ||||
Share-based compensation arrangement service vesting period of thresholds | 2 years | ||||
Vesting Period 1 [Member] | Performance-based Restricted Stock Units [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Share-based Compensation weighted average of the fair market value per share of the common Stock | $ 2.50 | ||||
Vesting Period 2 [Member] | Performance-based Restricted Stock Units [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Share-based Compensation weighted average of the fair market value per share of the common Stock | 5 | ||||
Vesting Period 3 [Member] | Performance-based Restricted Stock Units [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Share-based Compensation weighted average of the fair market value per share of the common Stock | 7.50 | ||||
Share Based Compensation Award Tranche Four | Performance-based Restricted Stock Units [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Share-based Compensation weighted average of the fair market value per share of the common Stock | $ 10 | ||||
Retail Segment [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Revenue, information used to determine transaction price | The transaction price for the 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 sales, the Company records such amounts in revenue. The Company excludes all sales taxes and value-added taxes from revenue. | ||||
Retail Segment [Member] | Minimum [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Royalty fee percentage | 4.00% | ||||
Retail Segment [Member] | Maximum [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Royalty fee percentage | 6.00% | ||||
Wholesale Segment [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Revenue, information used to allocate transaction price | the determination of the transaction price is fixed based on the contract and/or purchase order. | ||||
Wholesale Segment [Member] | Minimum [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Receivables collection period | 30 days | ||||
Wholesale Segment [Member] | Maximum [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Receivables collection period | 120 days | ||||
Convergram Mexico, S. De R.L. De C.V. [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Equity method investment percentage in joint venture | 49.90% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Reconciliation Between Basic and Diluted Income Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |||
Net (loss) income attributable to common shareholders of Party City Holdco Inc.: | $ (6,528) | $ (528,238) | $ (532,495) |
Weighted-average number of common shares—Basic | 110,980,934 | 100,804,944 | 93,295,692 |
Effect of dilutive restricted stock units: | 0 | 0 | 0 |
Effect of dilutive stock options: | 0 | 0 | 0 |
Weighted average shares — Diluted: | 110,980,934 | 100,804,944 | 93,295,692 |
Net (loss) income per share attributable to common shareholders of Party City Holdco Inc. — Basic: | $ (0.06) | $ (5.24) | $ (5.71) |
Net (loss) income per share attributable to common shareholders of Party City Holdco Inc. — Diluted: | $ (0.06) | $ (5.24) | $ (5.71) |
Store Impairment and Restruct_3
Store Impairment and Restructuring Charges - Additional Information (Detail) - Store | 1 Months Ended | 3 Months Ended | 12 Months Ended | |
Jan. 31, 2020 | Sep. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | |
Restructuring and Related Activities [Abstract] | ||||
Number of stores identified for closure | 21 | 55 | ||
Number of stores closed | 20 | 21 | 35 |
Store Impairment and Restruct_4
Store Impairment and Restructuring Charges (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, plant and equipment impairment | $ 31,277 | $ 0 | ||
Total | $ 35,329 | $ 50,322 | ||
Cost of Sales [Member] | ||||
Inventory reserves | 12,880 | 21,284 | ||
Restructuring Charges [Member] | ||||
Operating lease asset impairment | 15,520 | 14,943 | ||
Property, plant and equipment impairment | 2,065 | 4,680 | ||
Labor and other costs incurred closing stores | $ 4,864 | 8,754 | ||
Severance | $ 661 |
Goodwill - Schedule of Changes
Goodwill - Schedule of Changes in Goodwill by Reporting Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule Of Goodwill By Segment [Line Items] | ||||||
Beginning balance | $ 661,251 | |||||
Goodwill impairment | $ 0 | $ (401,436) | $ (556,056) | $ (556,056) | ||
Ending balance | 661,251 | 664,296 | $ 661,251 | |||
Wholesale Segment [Member] | ||||||
Schedule Of Goodwill By Segment [Line Items] | ||||||
Beginning balance | 493,432 | 333,184 | 493,432 | |||
Goodwill impairment | 0 | (148,326) | ||||
Foreign currency translation | (414) | 1,483 | ||||
Goodwill related to divested international business | (1,042) | (13,405) | ||||
Ending balance | 333,184 | 493,432 | 331,728 | 333,184 | ||
Retail Segment [Member] | ||||||
Schedule Of Goodwill By Segment [Line Items] | ||||||
Beginning balance | $ 578,898 | 328,067 | 578,898 | |||
Goodwill impairment | 0 | (253,110) | ||||
Foreign currency translation | 0 | 767 | ||||
Ending balance | $ 328,067 | $ 578,898 | 332,568 | 328,067 | ||
Retail Segment [Member] | Store Acquisitions [Member] | ||||||
Schedule Of Goodwill By Segment [Line Items] | ||||||
Business acquisition | $ 4,501 | $ 1,512 |
Goodwill - Additional Informati
Goodwill - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2020 | Sep. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill [Line Items] | ||||||||
Goodwill, impairment loss | $ 0 | $ 401,436,000 | $ 556,056,000 | $ 556,056,000 | ||||
Impairment charge on intangible asset | $ 2,423,000 | |||||||
Tangible asset impairment charges | 31,277,000 | $ 0 | ||||||
Trade Names [Member] | ||||||||
Goodwill [Line Items] | ||||||||
Impairment of indefinite-lived intangibles | $ 11,032,000 | |||||||
Party City Holdings Inc [Member] | ||||||||
Goodwill [Line Items] | ||||||||
Impairment charge on intangible asset | 131,287,000 | $ 0 | ||||||
Halloween City Trade Name [Member] | ||||||||
Goodwill [Line Items] | ||||||||
Impairment charge on intangible asset | 3,925,000 | $ 6,575,000 | ||||||
Retail Segment [Member] | ||||||||
Goodwill [Line Items] | ||||||||
Goodwill, impairment loss | $ 0 | $ 253,110,000 | ||||||
Operating Segments [Member] | Wholesale Segment [Member] | ||||||||
Goodwill [Line Items] | ||||||||
Goodwill, impairment loss | 148,326,000 | 25,400,000 | 35,000,000 | |||||
Operating Segments [Member] | Retail Segment [Member] | ||||||||
Goodwill [Line Items] | ||||||||
Goodwill, impairment loss | $ 253,110,000 | $ 271,500,000 | $ 224,100,000 |
Sale_Leaseback Transaction - Ad
Sale/Leaseback Transaction - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Feb. 28, 2021 | Jun. 30, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Aggregate sale price | $ 128,000 | ||||
Gain on the sale net | $ 0 | $ 0 | $ 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. | ||||
Annual rent increase rate | 2.00% | ||||
Total rent payment | $ 8,320 | ||||
Term Loan Credit Agreement [Member] | |||||
Proceeds from the sale (net of costs) | 125,864 | ||||
Repayment of Term debt Loan | $ 694,220 | $ 62,770 |
Disposition of Assets and Ass_3
Disposition of Assets and Assets and Liabilities Held for Sale - Additional Information (Detail) - USD ($) $ in Thousands | Oct. 01, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2021 |
Total impairment charges | $ 11,545 | ||||||||
Equipment impairment charges | 8,650 | ||||||||
Impairments of inventories | $ 68,707 | $ 88,358 | 2,425 | ||||||
Severance and other costs | 470 | ||||||||
Transaction value | $ 50,700 | ||||||||
Loss reserve on net assets | 73,948 | ||||||||
Income before income taxes | (874) | $ (685,110) | $ (534,163) | ||||||
Canadian Based Retailer [Member] | |||||||||
Sale of stores | $ 131,711 | ||||||||
Supply agreement term | 10 years | ||||||||
CANADA [Member] | |||||||||
Income before income taxes | $ 2,631 | $ 10,737 | $ 8,947 | ||||||
Gain on sale of assets | $ 2,873 |
Disposition of Assets and Ass_4
Disposition of Assets and Assets and Liabilities Held for Sale - Schedule of Assets and Liabilities of International Operations as Held for Sale (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Assets held for sale, net | $ 0 | $ 83,110 |
Discontinued Operations, Held-for-sale [Member] | ||
Cash | 31,628 | |
Accounts receivable, net | 32,392 | |
Inventories, net | 66,100 | |
Prepaid expense | 8,794 | |
Goodwill | 13,405 | |
Other assets, net | 4,739 | |
Total assets held for sale | 157,058 | |
Held for sale reserve | 73,948 | |
Loans and notes payable | 1,311 | |
Accounts payable | 25,471 | |
Current operating lease liability | 4,558 | |
Accrued expenses | 23,525 | |
Income taxes payable and Deferred income tax liabilities | 2,234 | |
Long term obligations excluding current portion | 40 | |
Other long-term liabilities | 3,354 | |
Long term operating lease liability | 7,999 | |
Total, net | 68,492 | |
Discontinued Operations, Held-for-sale [Member] | Wholesale Segment [Member] | ||
Cash | 25,989 | |
Accounts receivable, net | 31,932 | |
Inventories, net | 55,574 | |
Prepaid expense | 4,375 | |
Goodwill | 13,405 | |
Other assets, net | 1,891 | |
Total assets held for sale | 133,166 | |
Loans and notes payable | 1,311 | |
Accounts payable | 23,364 | |
Current operating lease liability | 4,174 | |
Accrued expenses | 16,527 | |
Income taxes payable and Deferred income tax liabilities | 258 | |
Long term obligations excluding current portion | 40 | |
Long term operating lease liability | 6,167 | |
Total, net | 51,841 | |
Discontinued Operations, Held-for-sale [Member] | Retail Segment [Member] | ||
Cash | 5,639 | |
Accounts receivable, net | 460 | |
Inventories, net | 10,526 | |
Prepaid expense | 4,419 | |
Other assets, net | 2,848 | |
Total assets held for sale | 23,892 | |
Accounts payable | 2,107 | |
Current operating lease liability | 384 | |
Accrued expenses | 6,998 | |
Income taxes payable and Deferred income tax liabilities | 1,976 | |
Other long-term liabilities | 3,354 | |
Long term operating lease liability | 1,832 | |
Total, net | $ 16,651 |
Inventories, Net - Summary of I
Inventories, Net - Summary of Inventories (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 393,609 | $ 367,275 |
Raw materials | 25,624 | 27,111 |
Work in process | 24,062 | 17,899 |
Inventories, net | $ 443,295 | $ 412,285 |
Inventories, Net - Additional I
Inventories, Net - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |||
Disposal of inventory | $ 68,707 | $ 88,358 | $ 2,425 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net - Property, Plant and Equipment, Net (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment gross | $ 816,750 | $ 790,425 |
Less: accumulated depreciation | (594,880) | (581,013) |
Property plant and equipment, net | 221,870 | 209,412 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment gross | $ 245,983 | 247,255 |
Machinery and Equipment [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful lives | 3 years | |
Machinery and Equipment [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful lives | 15 years | |
Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment gross | $ 6,277 | 9,982 |
Useful lives | 40 years | |
Data Processing Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment gross | $ 131,989 | 129,988 |
Data Processing Equipment [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful lives | 3 years | |
Data Processing Equipment [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful lives | 5 years | |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment gross | $ 203,503 | 176,389 |
Leasehold Improvements [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful lives | 1 year | |
Leasehold Improvements [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful lives | 10 years | |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment gross | $ 228,818 | 218,452 |
Furniture and Fixtures [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful lives | 5 years | |
Furniture and Fixtures [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful lives | 10 years | |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment gross | $ 180 | $ 8,359 |
Property, Plant and Equipment_4
Property, Plant and Equipment, Net - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property Plant And Equipment Useful Life And Values [Abstract] | |||
Depreciation expense related to property, plant and equipment, including assets under finance leases | $ 56,189 | $ 65,144 | $ 67,016 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) $ in Millions | 1 Months Ended |
Nov. 30, 2019USD ($) | |
Livario Gmbh and Weboth Gmbh [Member] | |
Business Acquisition [Line Items] | |
Total consideration amount | $ 9 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Identifiable Intangible Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Finite-Lived Intangible Assets [Line Items] | ||
Cost | $ 161,166 | $ 168,409 |
Accumulated Amortization | 137,479 | 136,275 |
Net Carrying Value | 23,687 | 32,134 |
Franchise-related Intangible Assets [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 73,225 | 77,377 |
Accumulated Amortization | 59,311 | 57,524 |
Net Carrying Value | 13,914 | 19,853 |
Customer Lists and Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 58,911 | 62,002 |
Accumulated Amortization | 49,154 | 49,739 |
Net Carrying Value | 9,757 | 12,263 |
Copyrights and Designs [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 29,030 | 29,030 |
Accumulated Amortization | 29,014 | 29,012 |
Net Carrying Value | $ 16 | $ 18 |
Minimum [Member] | Franchise-related Intangible Assets [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 | 2 years |
Minimum [Member] | Copyrights and Designs [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful lives | 5 years | 5 years |
Maximum [Member] | Franchise-related Intangible Assets [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 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Amortization expense for finite-lived intangible assets | $ 9,075,000 | $ 11,362,000 | $ 14,100,000 | ||
Amortization expense for next twelve months | 5,565,000 | ||||
Amortization expense for two year | 3,988,000 | ||||
Amortization expense for three year | 3,380,000 | ||||
Amortization expense for four year | 2,847,000 | ||||
Amortization expense for five year | 2,468,000 | ||||
Impairment charge on intangible asset | $ 2,423,000 | ||||
Tangible asset impairment charges | 31,277,000 | $ 0 | |||
Trade Names [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Impairment of indefinite-lived intangibles | $ 11,032,000 | ||||
Party City Holdings Inc [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Impairment charge on intangible asset | $ 131,287,000 | 0 | |||
Halloween City Trade Name [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Impairment charge on intangible asset | $ 3,925,000 | $ 6,575,000 |
Loans and Notes Payable - ABI F
Loans and Notes Payable - ABI Facility - Additional Information (Detail) $ in Thousands | May 07, 2021USD ($) | Feb. 28, 2021USD ($) | Aug. 31, 2018 | Dec. 31, 2021USD ($)OptionPlan | Feb. 01, 2021USD ($) | Dec. 31, 2020USD ($) | Apr. 30, 2019USD ($) |
Debt Instrument [Line Items] | |||||||
Debt instrument maturity date | Aug. 31, 2026 | ||||||
Line of credit facility, amount outstanding | $ 84,181 | $ 175,707 | |||||
Minimum [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Commitment fee percentage | 0.50% | ||||||
Maximum [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Commitment fee percentage | 1.00% | ||||||
Revolving Credit Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Credit facility current borrowing capacity | 304,420 | ||||||
Credit facility borrowing maximum capacity | 640,000 | ||||||
Line of credit facility, amount outstanding | $ 87,070 | ||||||
Interest rates | 2.64% | 2.34% | |||||
Outstanding letter of credit | $ 24,940 | $ 24,452 | |||||
Line of credit facility, remaining borrowing capacity | 192,410 | 176,522 | |||||
Letter Of Credit [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Outstanding letter of credit | 24,940 | ||||||
ABL Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Notes issued rate | 8.75% | ||||||
Unamortized financing costs | 2,889 | $ 1,419 | |||||
Outstanding aggregate principal amount, prepaid | 44,000 | ||||||
ABL Facility [Member] | Revolving Credit Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Credit facility current borrowing capacity | $ 15,000 | $ 540,000 | |||||
Debt instrument maturity, year and month | 2024-05 | ||||||
Credit facility borrowing maximum capacity | $ 640,000 | ||||||
Reduction in line of credit facility | $ 475,000 | ||||||
Third-party fees | $ 2,400 | ||||||
Debt instrument maturity date | Aug. 31, 2023 | ||||||
Letters of credit outstanding maximum under our ABL facility | $ 50,000 | ||||||
Number of pricing options | OptionPlan | 2 | ||||||
Interest rate description | All revolving loans will bear interest, at the Anagram's election, at a per annum rate equal to either (a) a base rate, which represents for any day a rate equal to the greater of (i) the prime rate on such day subject to a 0% floor, (ii) thefederal funds rate plus 0.5% and (iii) one-half of one percent per annum, in each case, plus a margin of 1.5% or (b) the Daily One Month LIBOR subject to a 0.5% floor, plus a margin of 2.5%. | ||||||
Basis spread on variable rate | 0.50% | ||||||
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 | ||||||
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 | ||||||
Basis spread on variable rate | 2.50% | ||||||
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 | 0.50% | 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% | ||||||
ABL Facility [Member] | Revolving Credit Facility [Member] | Prime Rate Member | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 0.00% | ||||||
ABL Facility [Member] | Revolving Credit Facility [Member] | One-half of One Percent Margin [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 1.50% | ||||||
ABL Facility [Member] | Letter Of Credit [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Credit facility borrowing maximum capacity | $ 3,000 |
Loans and Notes Payable - Other
Loans and Notes Payable - Other Credit Agreements - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Line of credit facility, amount outstanding | $ 84,181 | $ 175,707 |
Long-Term Obligations - Summary
Long-Term Obligations - Summary of Long-Term Obligations (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Total long-term obligations, Principal Amount | $ 1,244,794 | |
Total long-term obligations, Gross Carrying Amount | 1,371,115 | |
Total long term obligations, Deferred Financing Costs | 18,553 | |
Total long-term obligations, Net Carrying Amount | 1,352,562 | $ 1,343,384 |
Current portion, Net Carrying Amount | (1,373) | (13,576) |
Long-term obligations excluding current portion, Principal Amount | 1,243,421 | |
Long-term obligations excluding current portion, Gross Carrying Amount | 1,369,742 | |
Long-term obligations excluding current portion, Deferred Financing | (18,553) | |
Long-term obligations excluding current portion, Net Carrying Amount | 1,351,189 | 1,329,808 |
Senior Secured Term Loan Facility [Member] | Term Loan Credit Agreement [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term obligations, Principal Amount | 0 | |
Total long-term obligations, Gross Carrying Amount | 0 | |
Total long term obligations, Deferred Financing Costs | 0 | |
Total long-term obligations, Net Carrying Amount | 0 | 690,165 |
8.75% Senior Secured First Lien Notes due 2026 [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term obligations, Principal Amount | 750,000 | |
Total long-term obligations, Gross Carrying Amount | 750,000 | |
Total long term obligations, Deferred Financing Costs | 17,043 | |
Total long-term obligations, Net Carrying Amount | 732,957 | 0 |
6.125% Senior Notes due 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term obligations, Principal Amount | 22,924 | |
Total long-term obligations, Gross Carrying Amount | 22,924 | |
Total long term obligations, Deferred Financing Costs | 90 | |
Total long-term obligations, Net Carrying Amount | 22,834 | 22,779 |
6.625% Senior Notes due 2026 [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term obligations, Principal Amount | 92,254 | |
Total long-term obligations, Gross Carrying Amount | 92,254 | |
Total long term obligations, Deferred Financing Costs | 663 | |
Total long-term obligations, Net Carrying Amount | 91,591 | 106,315 |
First Lien Party City Notes - due 2025 [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term obligations, Principal Amount | 161,669 | |
Total long-term obligations, Gross Carrying Amount | 198,004 | |
Total long term obligations, Deferred Financing Costs | 0 | |
Total long-term obligations, Net Carrying Amount | 198,004 | 206,775 |
First Lien Anagram Notes - due 2025 [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term obligations, Principal Amount | 115,804 | |
Total long-term obligations, Gross Carrying Amount | 150,326 | |
Total long term obligations, Deferred Financing Costs | 757 | |
Total long-term obligations, Net Carrying Amount | 149,569 | 151,335 |
Second Lien Anagram Notes - due 2026 [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term obligations, Principal Amount | 89,155 | |
Total long-term obligations, Gross Carrying Amount | 144,619 | |
Total long term obligations, Deferred Financing Costs | 0 | |
Total long-term obligations, Net Carrying Amount | 144,619 | 152,032 |
Finance lease obligations [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term obligations, Principal Amount | 12,988 | |
Total long-term obligations, Gross Carrying Amount | 12,988 | |
Total long term obligations, Deferred Financing Costs | 0 | |
Total long-term obligations, Net Carrying Amount | $ 12,988 | $ 13,983 |
Long-Term Obligations - Summa_2
Long-Term Obligations - Summary of Long-Term Obligations (Parenthetical) (Detail) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
8.75% Senior Secured First Lien Notes due 2026 [Member] | ||
Debt Instrument [Line Items] | ||
Notes issued rate | 8.75% | 8.75% |
Debt instrument maturity period | 2026 | 2026 |
6.125% Senior Notes due 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Notes issued rate | 6.125% | 6.125% |
Debt instrument maturity period | 2023 | 2023 |
6.625% Senior Notes due 2026 [Member] | ||
Debt Instrument [Line Items] | ||
Notes issued rate | 6.625% | 6.625% |
Debt instrument maturity period | 2026 | 2026 |
First Lien Party City Notes due 2025 [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument maturity period | 2025 | 2025 |
First Lien Party Anagram Notes Due2025 [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument maturity period | 2025 | 2025 |
Second Lien Party Anagram Notes Due2026 [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument maturity period | 2026 | 2026 |
Long-Term Obligations - Term Lo
Long-Term Obligations - Term Loan Credit Agreement - Additional Information (Detail) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Feb. 28, 2021USD ($) | Jun. 30, 2019USD ($) | Aug. 31, 2018 | Dec. 31, 2021USD ($)OptionPlan | Dec. 31, 2020 | |
Debt Instrument [Line Items] | |||||
Aggregate principal amount | $ 1,244,794 | ||||
Debt instrument maturity date | Aug. 31, 2026 | ||||
LIBOR [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument interest rate increase decrease | 2.50% | ||||
Debt instrument weighted average interest rate | 3.25% | ||||
Alternate Base Interest Rate Loans [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt instrument interest rate increase decrease | 1.50% | ||||
Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Senior secured leverage ratio | 3.2 | ||||
Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Senior secured leverage ratio | 1 | ||||
8.75% Senior Secured First Lien Notes due 2026 [Member] | |||||
Debt Instrument [Line Items] | |||||
Aggregate principal amount | $ 750,000 | ||||
Notes issued rate | 8.75% | 8.75% | |||
6.625% Senior Notes due 2026 [Member] | Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Notes issued rate | 6.625% | ||||
Debt instrument maturity date | Aug. 1, 2026 | ||||
6.125% Senior Notes due 2023 [Member] | Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Notes issued rate | 6.125% | ||||
Debt instrument maturity date | Aug. 15, 2023 | ||||
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% | ||||
Percentage of net cash proceeds of incurrence of debt subject to debt mandatory prepayment | 100.00% | ||||
Percentage excess cash flow debt mandatory prepayment subject to leverage ratio | 50.00% | ||||
Reduction in percentage of excess cash flow debt mandatory prepayment subject to leverage ratio | 25.00% | ||||
Leverage ratio below that zero percentage of Excess Cash Flow as defined in the New Term Loan Credit Agreement | 2.50 | ||||
Repayment of Term debt Loan | $ 694,220 | $ 62,770 | |||
Term Loan Credit Agreement [Member] | Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Senior secured leverage ratio | 3.50 | ||||
Term Loan Credit Agreement [Member] | Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Reduction in percentage of excess cash flow debt mandatory prepayment subject to leverage ratio | 0.00% | ||||
Senior secured leverage ratio | 1 | ||||
Term Loan Credit Agreement [Member] | Secured Debt [Member] | |||||
Debt Instrument [Line Items] | |||||
Credit facility maturity date | Aug. 19, 2022 | ||||
Term loans repayment, quarterly installment percentage | 0.25% | ||||
Term Loan Credit Agreement [Member] | Secured Debt [Member] | Alternate Base Interest Rate Loans [Member] | |||||
Debt Instrument [Line Items] | |||||
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. | ||||
Debt Instrument Interest Rate Terms | (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. | ||||
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 | ||||
Debt Instrument Interest Rate Terms | (ii) the LIBOR rate, with a LIBOR floor of 0.75%, in each case plus an applicable margin | ||||
Term Loan Credit Agreement [Member] | Secured Debt [Member] | Maximum [Member] | Alternate Base Interest Rate Loans [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.75% | ||||
Term Loan Credit Agreement [Member] | Secured Debt [Member] | Maximum [Member] | LIBOR Based Loans [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 2.75% | ||||
Term Loan Credit Agreement [Member] | Secured Debt [Member] | Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Number of pricing options | OptionPlan | 2 | ||||
Minimum adjustment rate of LIBOR | 1.75% | ||||
Decreased LIBOR floor rate | 0.75% | ||||
Term Loan Credit Agreement [Member] | Secured Debt [Member] | Minimum [Member] | Federal Funds Rate [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 0.50% | ||||
Term Loan Credit Agreement [Member] | Secured Debt [Member] | Minimum [Member] | LIBOR [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.00% | ||||
Term Loan Credit Agreement [Member] | 8.75% Senior Secured First Lien Notes due 2026 [Member] | |||||
Debt Instrument [Line Items] | |||||
Repayment of Term debt Loan | $ 694,220 | ||||
Debt Instrument Redemption on or after August 15, 2023 [Member] | 6.625% Senior Notes due 2026 [Member] | Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Percentage price of principal amount redeemed | 103.313% | ||||
Debt Instrument Redemption on or after August 15, 2024 [Member] | 6.625% Senior Notes due 2026 [Member] | Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Percentage price of principal amount redeemed | 101.656% | ||||
Debt Instrument Redemption on or after August 15, 2025 [Member] | 6.625% Senior Notes due 2026 [Member] | Senior Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Percentage price of principal amount redeemed | 100.00% |
Long-Term Obligations - Senior
Long-Term Obligations - Senior Notes - Due 2023 - Additional Information (Detail) | 1 Months Ended | 12 Months Ended |
Aug. 31, 2018 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | ||
Debt instrument maturity date | Aug. 31, 2026 | |
6.125% Senior Notes due 2023 [Member] | Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Notes issued rate | 6.125% | |
Debt instrument maturity date | Aug. 15, 2023 | |
Debt instrument, frequency of periodic payment | semi-annually | |
Repurchase of senior notes of principal amount | 101.00% |
Long-Term Obligations - Senio_2
Long-Term Obligations - Senior Notes - Due 2026 - Additional Information (Detail) - USD ($) $ in Thousands | May 07, 2021 | Feb. 28, 2021 | Jun. 30, 2019 | Aug. 31, 2018 | Dec. 31, 2021 | Feb. 01, 2021 | Dec. 31, 2020 | Apr. 30, 2019 |
Debt Instrument [Line Items] | ||||||||
Aggregate principal amount | $ 1,244,794 | |||||||
Debt instrument maturity date | Aug. 31, 2026 | |||||||
Revolving Credit Facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding letter of credit | 24,940 | $ 24,452 | ||||||
Credit facility current borrowing capacity | 304,420 | |||||||
Credit facility borrowing maximum capacity | 640,000 | |||||||
Letter of Credit [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Outstanding letter of credit | $ 24,940 | |||||||
6.625% Senior Notes due 2026 [Member] | Senior Notes [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Notes issued rate | 6.625% | |||||||
Debt instrument maturity date | Aug. 1, 2026 | |||||||
Debt instrument, frequency of periodic payment | semi-annually | |||||||
Repurchase of senior notes of principal amount | 101.00% | |||||||
6.625% Senior Notes due 2026 [Member] | Senior Notes [Member] | Debt Instrument Redemption By Equity Offering Before August 1, 2021 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Percentage of principal amount redeemed | 40.00% | |||||||
Percentage price of principal amount redeemed | 106.625% | |||||||
Equity offering for senior notes description | cash proceeds from certain equity offerings | |||||||
6.625% Senior Notes due 2026 [Member] | Senior Notes [Member] | Debt Instrument Redemption By Equity Offering Before August 1, 2021 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Percentage of principal amount redeemed | 100.00% | |||||||
6.625% Senior Notes due 2026 [Member] | Senior Notes [Member] | Debt Instrument Redemption on or after August 15, 2023 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Percentage price of principal amount redeemed | 103.313% | |||||||
6.625% Senior Notes due 2026 [Member] | Senior Notes [Member] | Debt Instrument Redemption on or after August 15, 2024 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Percentage price of principal amount redeemed | 101.656% | |||||||
6.625% Senior Notes due 2026 [Member] | Senior Notes [Member] | Debt Instrument Redemption on or after August 15, 2025 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Percentage price of principal amount redeemed | 100.00% | |||||||
8.750% Senior Notes due 2026 [Member] | Senior Notes [Member] | Debt Instrument Redemption By Equity Offering Before August 1, 2021 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Notes issued rate | 8.75% | |||||||
Debt Instrument, Interest Rate Terms | 8.750 | |||||||
8.75% Senior Secured First Lien Notes due 2026 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Aggregate principal amount | $ 750,000 | |||||||
Notes issued rate | 8.75% | |||||||
Debt instrument maturity date | Feb. 28, 2026 | |||||||
Deferred Finance Costs Net | $ 18,976 | |||||||
Debt Instrument, Payment Terms | Interest on the 8.750% Senior Notes is payable semi-annually in arrears on February 15th and August 15th of each year. The 8.750% Senior Notes are guaranteed, jointly and severally, on a senior secured basis by each of PCHI’s existing and future domestic subsidiaries. | |||||||
Debt instrument, frequency of periodic payment | semi-annually | |||||||
8.75% Senior Secured First Lien Notes due 2026 [Member] | Debt Instrument Redemption on or after August 15, 2023 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Percentage price of principal amount redeemed | 104.375% | |||||||
8.75% Senior Secured First Lien Notes due 2026 [Member] | Debt Instrument Redemption on or after August 15, 2024 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Percentage price of principal amount redeemed | 102.188% | |||||||
8.75% Senior Secured First Lien Notes due 2026 [Member] | Debt Instrument Redemption on or after August 15, 2025 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Percentage price of principal amount redeemed | 100.00% | |||||||
8.75% Senior Secured First Lien Notes due 2026 [Member] | Debt Instrument Redemption Before August 15, 2023 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Percentage price of principal amount redeemed | 100.00% | |||||||
8.75% Senior Secured First Lien Notes due 2026 [Member] | Debt Instrument Redemption at Any Time Prior to August 15, 2023 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Percentage of principal amount redeemed | 10.00% | |||||||
Percentage price of principal amount redeemed | 103.00% | |||||||
8.75% Senior Secured First Lien Notes due 2026 [Member] | Debt Instrument Redemption By Equity Offering Before August 15, 2023 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Percentage of principal amount redeemed | 40.00% | |||||||
Percentage price of principal amount redeemed | 108.75% | |||||||
8.75% Senior Secured First Lien Notes due 2026 [Member] | Senior Notes [Member] | Debt Instrument Redemption By Equity Offering Before August 1, 2021 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Equity offering for senior notes description | cash proceeds from certain equity offerings | |||||||
8.75% Senior Secured First Lien Notes due 2026 [Member] | Senior Notes [Member] | Debt Instrument Redemption By Equity Offering Before August 1, 2021 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Notes issued rate | 8.75% | |||||||
Repurchase of senior notes of principal amount | 101.00% | |||||||
Term Loan Credit Agreement [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Repayments Of Long Term Debt | $ 694,220 | $ 62,770 | ||||||
ABL Facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Notes issued rate | 8.75% | |||||||
Unamortized Debt Issuance Expense | $ 2,889 | $ 1,419 | ||||||
ABL Facility [Member] | Revolving Credit Facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument maturity, year and month | 2024-05 | |||||||
Debt instrument maturity date | Aug. 31, 2023 | |||||||
Deferred Finance Costs Net | $ 2,400 | |||||||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | |||||||
Credit facility current borrowing capacity | $ 15,000 | $ 540,000 | ||||||
Credit facility borrowing maximum capacity | $ 640,000 | |||||||
Debt Instrument, Interest Rate Terms | All revolving loans will bear interest, at the Anagram's election, at a per annum rate equal to either (a) a base rate, which represents for any day a rate equal to the greater of (i) the prime rate on such day subject to a 0% floor, (ii) thefederal funds rate plus 0.5% and (iii) one-half of one percent per annum, in each case, plus a margin of 1.5% or (b) the Daily One Month LIBOR subject to a 0.5% floor, plus a margin of 2.5%. | |||||||
Percentage Applied To Aggregate Commitments And Borrowing Base | 10.00% | |||||||
ABL Facility [Member] | Letter of Credit [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Credit facility borrowing maximum capacity | $ 3,000 | |||||||
ABL Facility [Member] | Prime Rate [Member] | Revolving Credit Facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.00% | |||||||
ABL Facility [Member] | One Half Of One Percent Margin [Member] | Revolving Credit Facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | |||||||
ABL Facility [Member] | Alternate Base Interest Rate Loans [Member] | Revolving Credit Facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.50% | |||||||
Debt Instrument, Interest Rate Terms | (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] | Alternate Base Interest Rate Loans [Member] | Maximum [Member] | Revolving Credit Facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | |||||||
ABL Facility [Member] | Alternate Base Interest Rate Loans [Member] | Minimum [Member] | Revolving Credit Facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.25% |
Long-Term Obligations - Summa_3
Long-Term Obligations - Summary of Debt Instrument Redemption (Detail) - 6.625% Senior Notes due 2026 [Member] - Senior Notes [Member] | 12 Months Ended |
Dec. 31, 2021 | |
Twelve-Month Period Beginning on August 1, 2021 [Member] | |
Debt Instrument Redemption [Line Items] | |
Percentage of principal amount to be redeemed | 103.313% |
Twelve-Month Period Beginning on August 1, 2022 [Member] | |
Debt Instrument Redemption [Line Items] | |
Percentage of principal amount to be redeemed | 101.656% |
Twelve-Month Period Beginning on August 1, 2023 and Thereafter [Member] | |
Debt Instrument Redemption [Line Items] | |
Percentage of principal amount to be redeemed | 100.00% |
Long-Term Obligations - First L
Long-Term Obligations - First Lien Party City Notes, First Lien Anagram Notes, Second Lien Anagram Notes - Additional Information (Detail) $ / shares in Units, $ in Thousands | Jul. 30, 2020USD ($)BasisPoint$ / sharesshares | Aug. 31, 2018 | Dec. 31, 2021USD ($)$ / shares | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||||
Aggregate principal amount | $ 1,244,794 | |||
Common stock, par value | $ / shares | $ 0.01 | |||
Debt instrument maturity date | Aug. 31, 2026 | |||
Refinancing Transactions [Member] | ||||
Debt Instrument [Line Items] | ||||
Common stock issued | shares | 15,942,551 | |||
Common stock, par value | $ / shares | $ 0.01 | |||
6.125% Senior Notes due 2023 [Member] | ||||
Debt Instrument [Line Items] | ||||
Aggregate principal amount | $ 22,924 | |||
Notes issued rate | 6.125% | 6.125% | ||
Debt instrument maturity period | 2023 | 2023 | ||
6.125% Senior Notes due 2023 [Member] | Refinancing Transactions [Member] | ||||
Debt Instrument [Line Items] | ||||
Aggregate principal amount | $ 327,076 | |||
Notes issued rate | 6.125% | |||
Debt instrument maturity period | 2023 | |||
6.625% Senior Notes due 2026 [Member] | ||||
Debt Instrument [Line Items] | ||||
Aggregate principal amount | $ 92,254 | |||
Notes issued rate | 6.625% | 6.625% | ||
Debt instrument maturity period | 2026 | 2026 | ||
6.625% Senior Notes due 2026 [Member] | Refinancing Transactions [Member] | ||||
Debt Instrument [Line Items] | ||||
Aggregate principal amount | $ 392,746 | |||
Notes issued rate | 6.625% | |||
Debt instrument maturity period | 2026 | |||
Senior Secured First Lien Floating Rate Notes Due Two Thousand Twenty Five | Refinancing Transactions [Member] | ||||
Debt Instrument [Line Items] | ||||
Aggregate principal amount | $ 156,669 | |||
Debt instrument maturity period | 2025 | |||
10.00% PIK/Cash Senior Secured Second Lien Notes due 2026 [Member] | Refinancing Transactions [Member] | ||||
Debt Instrument [Line Items] | ||||
Aggregate principal amount | $ 84,687 | |||
Notes issued rate | 10.00% | |||
Debt instrument maturity period | 2026 | |||
15.00% PIK/Cash Senior Secured First Lien Notes due 2025 [Member] | Refinancing Transactions [Member] | ||||
Debt Instrument [Line Items] | ||||
Aggregate principal amount | $ 110,000 | |||
Notes issued rate | 15.00% | |||
Debt instrument maturity period | 2025 | |||
First Lien Party City Notes | Refinancing Transactions [Member] | ||||
Debt Instrument [Line Items] | ||||
Aggregate principal amount | $ 5,000 | |||
First Lien Party City Notes - due 2025 [Member] | ||||
Debt Instrument [Line Items] | ||||
Aggregate principal amount | $ 161,669 | |||
First Lien Party City Notes - due 2025 [Member] | Refinancing Transactions [Member] | ||||
Debt Instrument [Line Items] | ||||
Aggregate principal amount | $ 161,669 | |||
Debt instrument maturity date | Jul. 15, 2025 | |||
First Lien Party City Notes - due 2025 [Member] | Refinancing Transactions [Member] | LIBOR [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, description of variable rate basis | Interest on the First Lien Party City Notes accrues from the Settlement Date at a floating rate equal to the 6-month London Inter-Bank Offered Rate plus 500 basis points (with a floor of 75 basis points) per annum, payable semi-annually in arrears on January 15 and July 15 of each year, commencing January 15, 2021. | |||
Debt instrument, offered rate plus basis points | BasisPoint | 500 | |||
Debt instrument, floor basis points | BasisPoint | 75 | |||
Debt instrument, frequency of periodic payment | semi-annually | |||
First Lien Anagram Notes - due 2025 [Member] | ||||
Debt Instrument [Line Items] | ||||
Aggregate principal amount | 115,804 | |||
Gain on restructuring of debt | 273,149 | |||
Third-party fees incurred | 18,902 | |||
Common stock issued in exchange | 27,007 | |||
Cash received from participants in the exchange | 39,544 | |||
Debt instrument, principal amount notes exchanged | 44,500 | |||
Debt instrument undiscounted value including interest expense | 82,160 | |||
Carrying amount of restructured debt | $ 32,328 | |||
Effective interest rate | 3.50% | |||
Principal balance of notes not participants in exchange | $ 50,500 | |||
Principal balance of notes after netting | 45,678 | |||
First Lien Anagram Notes - due 2025 [Member] | Refinancing Transactions [Member] | ||||
Debt Instrument [Line Items] | ||||
Aggregate principal amount | $ 110,000 | |||
Debt instrument maturity date | Aug. 15, 2025 | |||
Debt instrument, description of variable rate basis | Interest on the First Lien Anagram Notes accrues from the Settlement Date at (i) a rate of 10.00% per annum, payable in cash; and (ii) a rate of 5.00% per annum payable by increasing the principal amount of the outstanding First Lien Anagram Notes or issuing additional First Lien Anagram Notes, as the case may be, in each case payable semi-annually in arrears on February 15 and August 15 of each year, commencing February 15, 2021. | |||
Debt instrument, frequency of periodic payment | semi-annually | |||
Debt instrument, interest rate payable in cash | 10.00% | |||
Debt instrument, interest rate payable on incremental principal | 5.00% | |||
Second Lien Anagram Notes - due 2026 [Member] | ||||
Debt Instrument [Line Items] | ||||
Aggregate principal amount | $ 89,155 | |||
Second Lien Anagram Notes - due 2026 [Member] | Refinancing Transactions [Member] | ||||
Debt Instrument [Line Items] | ||||
Aggregate principal amount | $ 84,687 | |||
Debt instrument maturity date | Aug. 15, 2026 | |||
Debt instrument, description of variable rate basis | Interest on the Second Lien Anagram Notes accrues from the Settlement Date at (i) a rate of 5.00% per annum, payable, at the Anagram Issuers’ option, entirely in cash or entirely by increasing the principal amount of the outstanding Second Lien Anagram Notes or issuing additional Second Lien Anagram Notes, as the case may be; and (ii) a rate of 5.00% per annum payable by increasing the principal amount of the outstanding Second Lien Anagram Notes or issuing additional Second Lien Anagram Notes, as the case may be, in each case payable semi-annually in arrears on February 15 and August 15 of each year, commencing February 15, 2021 | |||
Debt instrument, frequency of periodic payment | semi-annually | |||
Debt instrument, interest rate payable in cash | 5.00% | |||
Debt instrument, interest rate payable on incremental principal | 5.00% |
Long-Term Obligations - Finance
Long-Term Obligations - Finance Lease Obligations and Other - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Disclosure [Abstract] | ||
Finance lease obligations | $ 12,988 | $ 13,983 |
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Other Liabilities, Noncurrent | Other Liabilities, Noncurrent |
Long-Term Obligations - Maturit
Long-Term Obligations - Maturities of Long- Term Obligations (Detail) $ in Thousands | Dec. 31, 2021USD ($) |
Long-Term Debt Obligations | |
2022 | $ 0 |
2023 | 22,924 |
2024 | 0 |
2025 | 348,330 |
2026 | 986,873 |
Thereafter | 0 |
Long-term obligations | 1,358,127 |
Finance Lease Obligations | |
2022 | 1,373 |
2023 | 521 |
2024 | 401 |
2025 | 365 |
2026 | 407 |
Thereafter | 9,921 |
Total finance lease obligations | 12,988 |
Totals | |
2022 | 1,373 |
2023 | 23,445 |
2024 | 401 |
2025 | 348,695 |
2026 | 987,280 |
Thereafter | 9,921 |
Total long-term obligations and finance lease obligations | $ 1,371,115 |
Capital Stock - Additional Info
Capital Stock - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Equity [Abstract] | |||
Authorized capital stock | 300,000,000 | ||
Common stock, par value | $ 0.01 | ||
Preferred stock, par value | $ 0.01 | ||
Authorized preferred stock | 15,000,000 | ||
Number of acquired treasury shares | 706,458 | 21,685 | 15,679 |
Value of acquired treasury shares | $ 5,351 | $ 96 | $ 156 |
Capital Stock - Summary Changes
Capital Stock - Summary Changes in Common Shares Outstanding (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Equity [Abstract] | |||
Common Shares Outstanding, Beginning Balance | 110,781,613 | 94,461,576 | 93,622,934 |
Issuance of restricted stock and restricted stock units | 15,942,551 | 564,729 | |
Treasury stock purchases | (706,458) | (21,685) | (15,679) |
Issuance of shares to directors | 353,911 | 81,843 | |
Vesting of restricted stock and restricted stock units | 1,670,995 | 203,328 | 74,292 |
Exercise of warrants | 366,503 | ||
Cancellation of restricted stock awards | (986,420) | ||
Exercise of stock options | 690,800 | 114,000 | 215,300 |
Common Shares Outstanding, Ending Balance | 112,170,944 | 110,781,613 | 94,461,576 |
Other (Income) Expense, net - S
Other (Income) Expense, net - Summary of Other Expense (Income), Net (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Other Income and Expenses [Abstract] | |||
Undistributed loss (income) in equity method investments | $ (220) | $ 333 | $ (472) |
Foreign currency (gain) losses | (953) | (1,058) | 421 |
Debt refinancings | 0 | 0 | 36 |
Corporate development expenses | 561 | 2,185 | 2,472 |
(Gain) on sale of Canada retail assets | 0 | 0 | (2,873) |
Sale of ownership interest in Punchbowl | 0 | 0 | 2,169 |
Loss on sale of assets | 143 | 95 | 0 |
Other, net | (145) | 2,160 | 118 |
Other (income) expense, net | $ (614) | $ 3,715 | $ 1,871 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - Subsidiary Issuer [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Defined contribution plan, expenses recognized | $ 9,460 | $ 8,615 | $ 7,944 |
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 ($) | Jul. 18, 2020 | Jun. 30, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Performance-based options vested | 0 | |||||
Intrinsic value of options exercised | $ 1,277,000 | $ 332,000 | $ 1,254,000 | |||
Fair value of options vested | 410,000 | 254,000 | 2,118,000 | |||
Time Based Stock Options [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Compensation expense | $ 396,000 | $ 796,000 | 1,319,000 | |||
Options granted | 0 | |||||
Options vested granted percentage | 20.00% | |||||
Unrecognized compensation cost | $ 387,000 | |||||
Unrecognized compensation cost weighted-average recognition period | 13 months | |||||
Options vesting description | The Company’s time-based options principally vest 20% on each anniversary date. | |||||
Performance Shares [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Compensation expense | $ 7,847 | $ 0 | $ 0 | |||
Options outstanding | 2,539,600 | |||||
Options, Average grant date fair value | $ 3.09 | |||||
Share based stock awards vesting period | 3 years | |||||
Restricted Stock Units (RSUs) [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Options vested granted percentage | 0.00333% | |||||
Award expect to vest based on service condition | 1,361,289 | 614,939 | 143,457 | 358,506 | ||
Number of share of stock issued for each award | 1 | |||||
Share based stock awards vesting period | 3 years | |||||
Service Based Awards [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Compensation expense | $ 2,557,000 | $ 2,071,000 | $ 2,033,000 | |||
Unrecognized compensation cost | 8,095,000 | 1,491,000 | ||||
Performance-based Restricted Stock Units [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Unrecognized compensation cost | $ 2,061,000 | |||||
Unrecognized compensation cost weighted-average recognition period | 2 years 9 months 18 days | |||||
Compensation expense | $ 3,773,000 | $ 1,460,000 | ||||
Options, Average grant date fair value | $ 1.02 | |||||
Share based stock awards vesting period | 3 years | |||||
Share-based Compensation, shares granted | 6,448,276 | |||||
Performance-based Restricted Stock Units [Member] | Vesting Period 1 [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Share-based Compensation weighted average of the fair market value per share of the common Stock | $ 2.50 | |||||
Performance-based Restricted Stock Units [Member] | Vesting Period 2 [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Share-based Compensation weighted average of the fair market value per share of the common Stock | 5 | |||||
Performance-based Restricted Stock Units [Member] | Vesting Period 3 [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Share-based Compensation weighted average of the fair market value per share of the common Stock | 7.50 | |||||
Performance-based Restricted Stock Units [Member] | Vesting Period 4 [Member] | ||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||
Share-based Compensation weighted average of the fair market value per share of the common Stock | $ 10 | |||||
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) - $ / shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
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 | 0.20% | |
Risk-free interest rate, maximum | 2.44% | |
Volatility, minimum | 29.06% | |
Volatility, maximum | 135.74% | |
Performance-based Restricted Stock Units [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Expected dividend rate | 0.00% | |
Risk-free interest rate, minimum | 0.30% | |
Risk-free interest rate, maximum | 0.32% | |
Volatility, minimum | 106.31% | |
Volatility, maximum | 140.02% | |
Weighted average grant date fair value | $ 1.02 | |
Minimum [Member] | Time Based Stock Options [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Expected option term | 1 year 9 months 18 days | |
Maximum [Member] | Time Based Stock Options [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Expected option term | 5 years |
Equity Incentive Plans - Summar
Equity Incentive Plans - Summary of Changes in Outstanding Options (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Options exercised | (690,800) | (114,000) | (215,300) | |
Performance Based Stock Options [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Options outstanding beginning balance | 3,291,175 | 6,318,717 | 6,927,174 | |
Options granted | 0 | 300,000 | 337,000 | |
Options exercised | (690,800) | (114,000) | (215,300) | |
Options forfeited | (1,568,156) | (3,213,542) | (730,157) | |
Options outstanding ending balance | 1,032,219 | 3,291,175 | 6,318,717 | 6,927,174 |
Options exercisable | 862,719 | |||
Expected to vest (excluding performance-based options) | 169,500 | |||
Average exercise price outstanding beginning balance | $ 7.63 | $ 8.95 | $ 9.39 | |
Average exercise price granted | 0 | 3.67 | 6.43 | |
Average exercise price exercised | 5.33 | 5.04 | 5.33 | |
Average exercise price forfeited | 15.12 | 5.99 | 13 | |
Average exercise price outstanding ending balance | 10.18 | 7.63 | 8.95 | $ 9.39 |
Average exercise price expected to vest | 10.42 | |||
Average exercise price expected to vest | $ 8.95 | |||
Options, Average grant date fair value | $ 5.04 | $ 2.16 | ||
Aggregate intrinsic value outstanding beginning balance | $ 41,545 | $ 41,784 | $ 4,089 | |
Aggregate intrinsic value outstanding ending balance | 4,754 | $ 41,545 | $ 41,784 | $ 4,089 |
Aggregate intrinsic value exercisable | (4,182) | |||
Aggregate intrinsic value expected to vest | $ 572,315 | |||
Weighted average remaining contractual term outstanding | 4 years 6 months | 3 years 3 months 18 days | 4 years 4 months 24 days | 5 years 2 months 12 days |
Weighted average remaining contractual term exercisable | 4 years | |||
Weighted average remaining contractual term expected to vest | 7 years 2 months 12 days |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2017 | |
Income Tax [Line Items] | ||||||||
Cancellation of indebtedness income | $ 552,671 | |||||||
Cancellation of indebtedness income excluded from income ax | 500,989 | |||||||
Reduction in tax due to discharge of indebtedness | 217,532 | |||||||
Tax effect due to discharge of indebtedness | 47,663 | |||||||
Reduction in tax with permanent differences | 283,457 | |||||||
Tax effect with permanent differences | 59,526 | |||||||
Net operating loss carryforwards | 525 | |||||||
Foreign tax credit carryforwards | 4,101 | |||||||
Other assets, net | $ 309,965 | $ 306,374 | $ 309,965 | |||||
Deferred income tax liabilities | 34,705 | 34,705 | ||||||
Net deferred income tax assets included in assets held for sale | 2,628 | $ 2,628 | ||||||
State tax credit carryforwards expiration year | 2022 | |||||||
Federal statutory rate | 21.00% | 21.00% | 21.00% | 35.00% | ||||
Effective rate benefit | 2.90% | |||||||
Income tax reconciliation cancellation of debt | $ 59,526 | |||||||
Debt exchange – cancellation of debt | 0.00% | 8.70% | ||||||
Goodwill, Impairment Loss | 0 | $ 401,436 | $ 556,056 | $ 556,056 | ||||
Goodwill Impairment Charge Tax Benefit Not Recognised | $ 336,238 | $ 455,689 | ||||||
Goodwill impairment impact on income tax rate | 0.00% | 10.30% | 17.90% | |||||
Transition tax | 4,205 | $ 4,205 | ||||||
Unrecognized tax benefits that would impact effective tax rate | 13,890 | $ 11,568 | 13,890 | |||||
Accrued interest and penalties | 949 | $ 450 | 949 | |||||
Minimum [Member] | ||||||||
Income Tax [Line Items] | ||||||||
Deferred tax assets operating loss carryforwards state and local expiration | 15 years | |||||||
Federal statutory rate | 5.00% | |||||||
Maximum [Member] | ||||||||
Income Tax [Line Items] | ||||||||
Deferred tax assets operating loss carryforwards state and local expiration | 20 years | |||||||
Tax adjustments | $ (1,000) | |||||||
Mexico | ||||||||
Income Tax [Line Items] | ||||||||
Net operating loss carryforwards | 2,586 | |||||||
Other Assets, Net [Member] | ||||||||
Income Tax [Line Items] | ||||||||
Other assets, net | $ 283 | $ 283 | ||||||
Other Liabilities, Net [Member] | ||||||||
Income Tax [Line Items] | ||||||||
Deferred income tax liabilities | $ 29,195 |
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 193 | $ (542,046) | $ (572,287) |
Foreign | (1,067) | (143,064) | 38,124 |
Total | $ (874) | $ (685,110) | $ (534,163) |
Income Taxes - Summary of Incom
Income Taxes - Summary of Income Tax Expense (Benefit) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Current: | |||
Federal | $ 9,491 | $ (61,528) | $ 28,908 |
State | 911 | (1,639) | 4,613 |
Foreign | 461 | 1,599 | 12,540 |
Total current expense | 10,863 | (61,568) | 46,061 |
Deferred: | |||
Federal | (6,707) | (70,440) | (37,166) |
State | 1,356 | (19,252) | (11,207) |
Foreign | 196 | (5,393) | 1,007 |
Total deferred (benefit) expense | (5,155) | (95,085) | (47,366) |
Income tax (benefit) expense | $ 5,708 | $ (156,653) | $ (1,305) |
Income Taxes - Summary of Defer
Income Taxes - Summary of Deferred Income Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred income tax assets: | ||
Inventory reserves and capitalization | $ 20,007 | $ 9,199 |
Allowance for doubtful accounts | 1,884 | 2,020 |
Accrued liabilities | 9,624 | 16,798 |
Equity based compensation | 4,316 | 4,437 |
State tax loss carryforwards | 8,433 | 9,610 |
Foreign tax loss carryforwards | 2,586 | 2,839 |
Debt Exchange basis difference | 47,853 | 58,270 |
Section 163(j) Interest Limitation | 18,126 | |
Lease Liabilities | 198,332 | 199,585 |
Outside basis differences in foreign subsidiaries (APB 23) | 1,113 | 12,800 |
Capitalized refinancing and other costs | 4,692 | 4,216 |
Other | 2,016 | 3,922 |
Deferred income tax assets before valuation allowances | 318,982 | 323,696 |
Less: valuation allowances | (12,608) | (13,731) |
Deferred income tax assets, net | 306,374 | 309,965 |
Deferred income tax liabilities: | ||
Depreciation | 42,548 | 45,984 |
Trade Name | 99,039 | 98,817 |
Amortization of goodwill and other assets | 13,065 | 11,654 |
Loss Recapture and other differences | 0 | 10,962 |
Foreign earnings expected to be repatriated | 969 | 1,072 |
Lease Right of Use Assets | 175,942 | 166,617 |
Other | 4,006 | 9,281 |
Deferred income tax liabilities | $ 335,569 | $ 344,387 |
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||||
Tax provision at U.S. statutory income tax rate | 21.00% | 21.00% | 21.00% | 35.00% |
State income tax, net of federal income tax | (205.00%) | 2.40% | 1.00% | |
Valuation allowances | 23.10% | (2.70%) | (0.40%) | |
GILTI and Foreign-Derived Intangible Income | 83.80% | 0.00% | (0.60%) | |
Foreign earnings | (37.50%) | 1.30% | (1.50%) | |
U.S. — foreign rate differential | (35.30%) | 0.40% | (0.60%) | |
CARES Act: 5-year NOL carryback | 0.00% | 2.90% | ||
Debt exchange – cancellation of debt | 0.00% | 8.70% | ||
Goodwill Impairment | (0.00%) | (10.30%) | (17.90%) | |
Uncertain tax positions | (560.20%) | (1.40%) | (0.70%) | |
Other | 57.00% | 0.60% | (0.10%) | |
Effective income tax rate | (653.10%) | 22.90% | 0.20% |
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Balance at beginning of year | $ 13,890 | $ 4,891 | $ 1,320 |
Increases related to current period tax positions | 3,759 | 8,186 | 652 |
Increases related to prior period tax positions | 3,885 | 1,061 | 3,030 |
Decreases related to settlements | (6,245) | 0 | |
Decreases related to lapsing of statutes of limitations | (268) | (248) | (111) |
Balance at end of year | $ 15,021 | $ 13,890 | $ 4,891 |
Commitments, Contingencies an_3
Commitments, Contingencies and Related Party Transactions - Summary of Future Minimum Product Royalties (Detail) $ in Thousands | Dec. 31, 2021USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2022 | $ 14,937 |
2023 | 8,114 |
2024 | 1,600 |
Thereafter | 0 |
Total Future Minimum Royalty Payments | $ 24,651 |
Commitments, Contingencies an_4
Commitments, Contingencies and Related Party Transactions - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Product royalty expense | $ 33,136 | $ 33,331 | $ 48,170 |
Finished goods purchased | 59,500 | ||
Purchases reflected in finished goods inventory | 30,400 | ||
Finished goods inventory | $ 18,300 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021USD ($)Segment | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Segment Reporting [Abstract] | |||
Number of business segments | Segment | 2 | ||
Export sales | $ | $ 55,756 | $ 19,847 | $ 22,728 |
Segment Information - Schedule
Segment Information - Schedule of Company's Industry Segment Data (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues: | |||
Net revenues | $ 2,171,060 | $ 1,850,690 | $ 2,348,789 |
Total revenues | 2,171,060 | 1,850,690 | 2,348,789 |
Income (loss) from operations | 84,632 | (877,501) | (417,393) |
Interest expense, net | 87,226 | 77,043 | 114,899 |
Other (income) expense, net | (614) | 3,715 | 1,871 |
Gain on debt refinancing | (1,106) | (273,149) | 0 |
Loss before income taxes | (874) | (685,110) | (534,163) |
Depreciation and amortization | 65,610 | 76,506 | 81,116 |
Capital expenditures | (79,222) | (51,128) | (61,733) |
Total assets | 2,711,900 | 2,806,455 | 3,595,319 |
Eliminations [Member] | |||
Revenues: | |||
Net revenues | (589,562) | (471,863) | (642,652) |
Net Sales [Member] | Operating Segments [Member] | |||
Revenues: | |||
Net revenues | 2,760,622 | 2,322,553 | 2,991,441 |
Wholesale [Member] | |||
Revenues: | |||
Net revenues | 401,074 | 468,365 | 597,374 |
Income (loss) from operations | (28,492) | (303,663) | 4,152 |
Depreciation and amortization | 21,778 | 25,813 | 27,845 |
Capital expenditures | (22,572) | (22,206) | (29,480) |
Total assets | 1,355,010 | 1,123,322 | 1,912,522 |
Wholesale [Member] | Eliminations [Member] | |||
Revenues: | |||
Net revenues | (589,562) | (471,863) | (642,652) |
Wholesale [Member] | Net Sales [Member] | Operating Segments [Member] | |||
Revenues: | |||
Net revenues | 990,636 | 940,228 | 1,240,026 |
Retail Segment [Member] | |||
Revenues: | |||
Net revenues | 1,769,986 | 1,382,325 | 1,751,415 |
Income (loss) from operations | 113,124 | (573,838) | (421,545) |
Depreciation and amortization | 43,832 | 50,693 | 53,271 |
Capital expenditures | (56,650) | (28,922) | (32,253) |
Total assets | 1,356,890 | 1,683,133 | 1,682,797 |
Retail Segment [Member] | Net Sales [Member] | |||
Revenues: | |||
Net revenues | 1,769,987 | 1,382,325 | 1,751,415 |
Retail Segment [Member] | Net Sales [Member] | Operating Segments [Member] | |||
Revenues: | |||
Net revenues | $ 1,769,986 | $ 1,382,325 | $ 1,751,415 |
Segment Information - Schedul_2
Segment Information - Schedule of Company's Geographic Segments (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues: | |||
Net sales to unaffiliated customers | $ 2,171,060 | $ 1,850,690 | $ 2,348,789 |
Revenues | 1,850,690 | ||
Total revenues | 2,171,060 | 1,850,690 | 2,348,789 |
Income (loss) from operations | 84,632 | (877,501) | (417,393) |
Interest expense, net | 87,226 | 77,043 | 114,899 |
Other expense, net | 1,720 | 269,434 | |
Other (income) expense, net | (614) | 3,715 | 1,871 |
Income before income taxes | (874) | (685,110) | (534,163) |
Depreciation and amortization | 65,610 | 76,506 | 81,116 |
Total long-lived assets (excluding goodwill, trade names and other intangible assets, net) | 247,821 | 128,631 | 250,848 |
Total assets | 2,711,900 | 2,806,455 | 3,595,319 |
Reportable Geographical Components [Member] | |||
Revenues: | |||
Net sales to unaffiliated customers | 75,211 | ||
Reportable Geographical Components [Member] | Domestic [Member] | |||
Revenues: | |||
Net sales to unaffiliated customers | 2,095,849 | 1,581,294 | 1,977,598 |
Net sales between geographic areas | 17,798 | 167,945 | 57,117 |
Revenues | 1,749,239 | ||
Total revenues | 2,113,647 | 2,034,715 | |
Income (loss) from operations | 86,095 | (644,338) | (412,225) |
Depreciation and amortization | 63,755 | 70,586 | 72,701 |
Total long-lived assets (excluding goodwill, trade names and other intangible assets, net) | 242,396 | 103,885 | 224,692 |
Total assets | 2,657,333 | 2,518,490 | 3,317,305 |
Reportable Geographical Components [Member] | Foreign [Member] | |||
Revenues: | |||
Net sales to unaffiliated customers | 269,396 | 371,191 | |
Net sales between geographic areas | 10,067 | 113,828 | 86,811 |
Revenues | 383,224 | ||
Total revenues | 85,278 | 458,002 | |
Income (loss) from operations | (1,463) | 14,189 | (5,168) |
Depreciation and amortization | 1,855 | 5,920 | 8,415 |
Total long-lived assets (excluding goodwill, trade names and other intangible assets, net) | 5,425 | 24,746 | 26,156 |
Total assets | 54,567 | 287,965 | 278,014 |
Eliminations [Member] | |||
Revenues: | |||
Net sales between geographic areas | (27,865) | (281,773) | (143,928) |
Revenues | (281,773) | ||
Total revenues | (27,865) | $ (143,928) | |
Income (loss) from operations | $ 0 | $ (247,352) |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Lessee, Lease, Description [Line Items] | ||
Operating lease cost | $ 181,637 | $ 189,924 |
Variable lease cost | 27,100 | 27,443 |
Operating lease liabilities | 223,905 | 140,699 |
Right of use assets in exchange for operating lease liabilities | $ 101,742 | $ 70,460 |
Weighted average remaining lease term | 5 years | 6 years |
Weighted average discount rate | 8.60% | 8.60% |
Future payment obligations | $ 1,069,027 | |
Operating Lease Not Yet Commenced Contract One [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Future payment obligations | $ 110,000 |
Leases - Future Cash flows for
Leases - Future Cash flows for the Company's operating leases (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
2022 | $ 190,126 | |
2023 | 175,276 | |
2024 | 150,537 | |
2025 | 135,788 | |
2026 | 104,138 | |
Thereafter | 313,162 | |
Total undiscounted cash flows | 1,069,027 | |
Less: Interest | (296,715) | |
Total operating lease liability | 772,312 | |
Less: Current portion of operating lease liability | (116,437) | $ (176,045) |
Long-term portion of operating lease liability | $ 655,875 | $ 654,729 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | 1 Months Ended | |||
Nov. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | ||||
Derivatives asset and liabilities outstanding | $ 0 | $ 0 | ||
Option on Securities [Member] | ||||
Debt Instrument [Line Items] | ||||
Derivative assets wrote off cost | $ 2,169 | |||
Punchbowl Inc [Member] | ||||
Debt Instrument [Line Items] | ||||
Equity method investment, ownership percentage | 28.00% |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Carrying Amount and Fair Value (Detail) $ in Thousands | Dec. 31, 2021USD ($) |
Debt Instrument [Line Items] | |
Debt Instrument Carrying Amount | $ 1,371,115 |
Term Loan Credit Agreement [Member] | Senior Secured Term Loan Facility [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument Carrying Amount | 0 |
8.75% Senior Secured First Lien Notes - due 2026 [Member] | Senior Secured Term Loan Facility [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument Carrying Amount | 750,000 |
Debt Instrument Fair Value | 772,500 |
6.125% Senior Notes - due 2023 [Member] | Senior Secured First Lien Notes [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument Carrying Amount | 22,924 |
Debt Instrument Fair Value | 20,536 |
6.625% Senior Notes - due 2026 [Member] | Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument Carrying Amount | 92,254 |
Debt Instrument Fair Value | 79,048 |
First Lien Party City Notes - due 2025 [Member] | Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument Carrying Amount | 198,004 |
Debt Instrument Fair Value | 185,411 |
First Lien Anagram Notes - due 2025 [Member] | Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument Carrying Amount | 150,326 |
Debt Instrument Fair Value | 167,804 |
Second Lien Anagram Notes - due 2026 [Member] | Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument Carrying Amount | 144,619 |
Debt Instrument Fair Value | $ 150,653 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Foreign Exchange Contract [Member] | |||
Derivative [Line Items] | |||
Notional amounts | $ 3,850,000 | $ 300,000 | |
Foreign Exchange Risk Management [Member] | |||
Derivative [Line Items] | |||
Hedging effectiveness | 100.00% | ||
Foreign Exchange Risk Management [Member] | Foreign Exchange Contract [Member] | |||
Derivative [Line Items] | |||
Notional amounts | $ 0 | ||
Foreign Exchange Risk Management [Member] | Maximum [Member] | |||
Derivative [Line Items] | |||
Foreign exchange forward contracts maturity | 1 year |
Derivative Financial Instrume_4
Derivative Financial Instruments - Schedule of Fair Values of Derivatives (Detail) $ in Thousands | Dec. 31, 2020USD ($) |
Foreign Exchange Contracts [Member] | Accrued Expenses [Member] | |
Derivatives Fair Value [Line Items] | |
Derivative Liabilities | $ 303 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Schedule of Notional Amounts of Derivatives (Detail) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Foreign Exchange Contracts [Member] | ||
Derivatives Fair Value [Line Items] | ||
Notional amounts | $ 3,850,000 | $ 300,000 |
Changes in Accumulated Other _3
Changes in Accumulated Other Comprehensive Income (Loss) - Changes in Accumulated and Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | $ 50,790 | ||
Ending balance | 82,714 | $ 50,790 | |
Foreign Currency Adjustments [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | (31,264) | (37,434) | $ (50,056) |
Other comprehensive income (loss) before reclassifications, net of income tax | (1,784) | 6,170 | 5,725 |
Release of cumulative foreign currency translation adjustment to net income (loss) as a result of disposition of international operations | 36,589 | ||
Amounts reclassified from accumulated other comprehensive loss(income) to the consolidated statement of operations and comprehensive income, net of income tax | 6,897 | ||
Net current-period other comprehensive income (loss) | 34,805 | 6,170 | 12,622 |
Ending balance | 3,541 | (31,264) | (37,434) |
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | 1,348 | 1,700 | 855 |
Other comprehensive income (loss) before reclassifications, net of income tax | 77 | (495) | 106 |
Release of cumulative foreign currency translation adjustment to net income (loss) as a result of disposition of international operations | (1,422) | ||
Amounts reclassified from accumulated other comprehensive loss(income) to the consolidated statement of operations and comprehensive income, net of income tax | (3) | 143 | 739 |
Net current-period other comprehensive income (loss) | (1,348) | (352) | 845 |
Ending balance | 1,348 | 1,700 | |
Accumulated Other Comprehensive Loss [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | (29,916) | (35,734) | (49,201) |
Other comprehensive income (loss) before reclassifications, net of income tax | (1,707) | 5,675 | 5,831 |
Release of cumulative foreign currency translation adjustment to net income (loss) as a result of disposition of international operations | 35,167 | ||
Amounts reclassified from accumulated other comprehensive loss(income) to the consolidated statement of operations and comprehensive income, net of income tax | (3) | 143 | 7,636 |
Net current-period other comprehensive income (loss) | 33,457 | 5,818 | 13,467 |
Ending balance | $ 3,541 | $ (29,916) | $ (35,734) |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation of Revenue [Line Items] | |||
Allowance for credit losses | $ 8,057 | $ 7,232 | |
Increase (decrease) in retained earnings | (571,985) | (565,457) | |
Increase (decrease) in accounts receivables | 93,301 | 90,879 | |
Increase (decrease) in inventory | 443,295 | 412,285 | |
Increase (decrease) in accrued expense | 195,531 | 160,605 | |
Increase (decrease) in deferred tax asset | 306,374 | 309,965 | |
Increase (decrease) in income tax payable | 10,801 | 524 | |
Increase (decrease) in pre-tax income | $ (874) | $ (685,110) | $ (534,163) |
Short-term Contract with Customer [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Contract with an original expected duration | one year or less | ||
Wholesale Segment [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue, information used to allocate transaction price | the determination of the transaction price is fixed based on the contract and/or purchase order. | ||
Minimum [Member] | Retail Segment [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Royalty fee percentage | 4.00% | ||
Minimum [Member] | Wholesale Segment [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Receivables collection period | 30 days | ||
Maximum [Member] | Retail Segment [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Royalty fee percentage | 6.00% | ||
Maximum [Member] | Wholesale Segment [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Receivables collection period | 120 days |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Summary of Revenue from Contracts with Customers (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 2,171,060 | $ 1,850,690 | $ 2,348,789 |
Retail Segment [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 1,769,986 | 1,382,325 | 1,751,415 |
Wholesale Segment [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 401,073 | 468,365 | 597,374 |
Party City Stores [Member] | Retail Segment [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 1,734,261 | 1,374,680 | 1,700,812 |
Temporary Stores [Member] | Retail Segment [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 35,726 | 7,645 | 50,603 |
Net Sales [Member] | Retail Segment [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 1,769,987 | 1,382,325 | 1,751,415 |
Domestic | Wholesale Segment [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 263,661 | 238,936 | 310,042 |
International [Member] | Wholesale Segment [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 137,412 | $ 229,429 | $ 287,332 |
Kazzam, LLC - Additional Inform
Kazzam, LLC - Additional Information (Detail) - Kazzam LLC [Member] - shares | Mar. 23, 2020 | Dec. 31, 2019 |
Schedule Of Equity Method Investments [Line Items] | ||
Equity method investment, ownership percentage | 26.00% | |
Number of years for royalty on net service revenue | 3 years | |
Maximum [Member] | ||
Schedule Of Equity Method Investments [Line Items] | ||
Warrant to purchase common stock | 1,000,000 |
Schedule I - Condensed Financ_2
Schedule I - Condensed Financial Information of Registrant - Condensed Balance Sheets (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
ASSETS | |||
Other assets (principally investment in and amounts due from wholly- owned subsidiaries) | $ 25,952 | $ 9,883 | |
Total assets | 2,711,900 | 2,806,455 | $ 3,595,319 |
LIABILITIES, REDEEMABLE SECURITIES AND STOCKHOLDERS’ EQUITY | |||
Total liabilities | 2,629,186 | 2,755,934 | |
Redeemable securities | 0 | ||
Stockholders’ equity: | |||
Common stock (112,170,944 and 110,781,613 shares outstanding and 124,157,500 and 121,662,540 shares issued at December 31, 2021 and December 31, 2020, respectively) | 1,384 | 1,373 | |
Additional paid-in capital | 982,307 | 971,972 | |
Retained (deficit) earnings | (571,985) | (565,457) | |
Accumulated other comprehensive income (loss) | 3,541 | (29,916) | |
Total Party City Holdco Inc. stockholders’ equity before common stock held in treasury | 415,247 | 377,972 | |
Less: Common stock held in treasury, at cost (11,986,556 and 11,280,098 shares at December 31, 2021 and December 31, 2020, respectively) | (332,533) | (327,182) | |
Total Party City Holdco Inc. stockholders’ equity | 82,714 | 50,790 | |
Total liabilities, redeemable securities and stockholders’ equity | 2,806,455 | ||
Party City Holdco Inc. [Member] | |||
ASSETS | |||
Other assets (principally investment in and amounts due from wholly- owned subsidiaries) | 82,714 | 50,790 | |
Total assets | 82,714 | 50,790 | |
LIABILITIES, REDEEMABLE SECURITIES AND STOCKHOLDERS’ EQUITY | |||
Total liabilities | 0 | 0 | |
Redeemable securities | 0 | ||
Stockholders’ equity: | |||
Common stock (112,170,944 and 110,781,613 shares outstanding and 124,157,500 and 121,662,540 shares issued at December 31, 2021 and December 31, 2020, respectively) | 1,384 | 1,373 | |
Additional paid-in capital | 982,307 | 971,972 | |
Retained (deficit) earnings | (571,985) | (565,457) | |
Accumulated other comprehensive income (loss) | (3,541) | (29,916) | |
Total Party City Holdco Inc. stockholders’ equity before common stock held in treasury | 415,247 | 377,972 | |
Less: Common stock held in treasury, at cost (11,986,556 and 11,280,098 shares at December 31, 2021 and December 31, 2020, respectively) | (332,533) | (327,182) | |
Total Party City Holdco Inc. stockholders’ equity | $ 82,714 | 50,790 | |
Total liabilities, redeemable securities and stockholders’ equity | $ 50,790 |
Schedule I - Condensed Financ_3
Schedule I - Condensed Financial Information of Registrant - Condensed Balance Sheets (Parenthetical) (Detail) - shares | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Condensed Financial Statements, Captions [Line Items] | ||||
Common stock, shares issued | 124,157,500 | 121,662,540 | ||
Common stock, shares outstanding | 112,170,944 | 110,781,613 | 94,461,576 | 93,622,934 |
Common stock held in treasury, shares at cost | 11,986,556 | 11,280,098 | ||
Party City Holdco Inc. [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Common stock, shares issued | 124,157,500 | 121,662,540 | ||
Common stock, shares outstanding | 112,170,944 | 110,781,613 | ||
Common stock held in treasury, shares at cost | 11,986,556 | 11,280,098 |
Schedule I - Condensed Financ_4
Schedule I - Condensed Financial Information of Registrant - Condensed Statements of Operations and Comprehensive (Loss) Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Condensed Income Statements Captions [Line Items] | |||
Net (loss) income | $ (6,582) | $ (528,457) | $ (532,858) |
Net (loss) income attributable to common shareholders of Party City Holdco Inc | (6,528) | (528,238) | (532,495) |
Other comprehensive (loss) income, net | 33,780 | 5,791 | 13,444 |
Comprehensive income | 27,198 | (522,666) | (519,414) |
Comprehensive income (loss) attributable to common shareholders of Party City Holdco Inc. | 26,929 | (522,420) | (519,028) |
Party City Holdco Inc. [Member] | |||
Condensed Income Statements Captions [Line Items] | |||
Equity in net income of subsidiaries | (6,528) | (528,238) | (532,495) |
Net (loss) income | (6,528) | (528,238) | (532,495) |
Add: Net income attributable to redeemable securities holder | 0 | 0 | 0 |
Net (loss) income attributable to common shareholders of Party City Holdco Inc | (6,528) | (528,238) | (532,495) |
Other comprehensive (loss) income, net | 33,457 | 5,818 | 13,467 |
Comprehensive income | 26,929 | (522,420) | (519,028) |
Comprehensive income attributable to redeemable securities holder | 0 | 0 | 0 |
Comprehensive income (loss) attributable to common shareholders of Party City Holdco Inc. | $ 26,929 | $ (522,420) | $ (519,028) |
Schedule I - Condensed Financ_5
Schedule I - Condensed Financial Information of Registrant - Condensed Statements of Cash Flows (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows provided by (used in) operating activities: | |||
Net (loss) income | $ (6,582) | $ (528,457) | $ (532,858) |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Change in due to/from affiliates | 85,306 | 28,002 | (65,617) |
Net cash provided by operating activities | 51,935 | 77,200 | 43,693 |
Cash flows (used in) provided by financing activities: | |||
Treasury stock purchases | (5,351) | (96) | (156) |
Exercise of stock options | 3,680 | 147 | 1,148 |
Net cash (used in) provided by financing activities | (89,125) | 93,704 | (237,710) |
Cash and cash equivalents at beginning of period | 119,532 | ||
Cash and cash equivalents at end of period | 47,914 | 119,532 | |
Party City Holdco Inc. [Member] | |||
Cash flows provided by (used in) operating activities: | |||
Net (loss) income | (6,528) | (528,238) | (532,495) |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Equity in net income of subsidiaries | (6,528) | (528,238) | (532,495) |
Change in due to/from affiliates | 1,678 | (49) | (989) |
Net cash provided by operating activities | 1,678 | (49) | (989) |
Cash flows (used in) provided by financing activities: | |||
Treasury stock purchases | (5,351) | (96) | (156) |
Exercise of stock options | 3,673 | 145 | 1,145 |
Net cash (used in) provided by financing activities | (1,678) | 49 | 989 |
Net change in cash and cash equivalents | $ 0 | $ 0 | $ 0 |
Dividends from Subsidiaries - A
Dividends from Subsidiaries - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Allowance for Doubtful Accounts [Member] | |||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Beginning Balance | $ 7,232 | $ 4,786 | $ 2,933 |
Write-Offs | 1,744 | 3,875 | 470 |
Additions | 2,569 | 6,321 | 2,323 |
Ending Balance | 8,057 | 7,232 | 4,786 |
Sales Returns and Allowances [Member] | |||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Beginning Balance | 676 | 676 | 741 |
Write-Offs | 72,151 | 61,935 | 83,474 |
Additions | 72,091 | 61,935 | 83,409 |
Ending Balance | $ 616 | $ 676 | $ 676 |