Document and Entity Information
Document and Entity Information - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Mar. 28, 2024 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Entity Registrant Name | Party City Holdco Inc. | ||
Document Type | 10-K | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Public Float | $ 149,147,731 | ||
Entity Common Stock, Shares Outstanding | 0 | ||
Amendment Flag | false | ||
Entity Central Index Key | 0001592058 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Period End Date | Dec. 31, 2022 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | No | ||
Entity Interactive Data Current | Yes | ||
Entity Shell Company | false | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity File Number | 001-37344 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 46-0539758 | ||
Entity Address, Address Line One | 100 Tice Blvd. | ||
Entity Address, City or Town | Woodcliff Lake | ||
Entity Address, State or Province | NJ | ||
Entity Address, Postal Zip Code | 07677 | ||
City Area Code | 973 | ||
Local Phone Number | 453-8601 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
ICFR Auditor Attestation Flag | true | ||
Auditor Name | BDO USA, P.C. | ||
Auditor Location | New York, NY | ||
Auditor Firm Id | 243 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 59,421 | $ 47,914 |
Accounts receivable, net | 83,157 | 93,301 |
Inventories, net | 633,360 | 443,295 |
Prepaid expenses and other current assets | 42,106 | 57,656 |
Income tax receivable | 14,464 | 56,317 |
Total current assets | 832,508 | 698,483 |
Property, plant and equipment, net | 255,270 | 221,870 |
Operating lease asset | 707,047 | 693,875 |
Goodwill | 100,357 | 664,296 |
Trade names | 94,680 | 383,737 |
Other intangible assets, net | 13,304 | 23,687 |
Other assets, net | 16,831 | 25,952 |
Total assets | 2,019,997 | 2,711,900 |
Current liabilities: | ||
Loans and notes payable | 360,745 | 84,181 |
Accounts payable | 157,474 | 161,736 |
Accrued expenses | 181,466 | 195,531 |
Current portion of operating lease liability | 119,605 | 116,437 |
Income taxes payable | 426 | 10,801 |
Current portion of long-term obligations | 1,331,003 | 1,373 |
Total current liabilities | 2,150,719 | 570,059 |
Long-term obligations, excluding current portion | 11,134 | 1,351,189 |
Long-term portion of operating lease liability | 685,120 | 655,875 |
Deferred income tax liabilities | 9,128 | 29,195 |
Other long-term liabilities | 21,723 | 22,868 |
Total liabilities | 2,877,824 | 2,629,186 |
Commitments and contingencies (Note 15) | ||
Stockholders' (deficit) equity: | ||
Common stock (Par value $0.01; 113,509,223 and 112,170,944 shares outstanding and 126,787,094 and 124,157,500 shares issued at December 31, 2022 and December 31, 2021, respectively) | 1,385 | 1,384 |
Additional paid-in capital | 988,463 | 982,307 |
Accumulated deficit | (1,514,615) | (571,985) |
Accumulated other comprehensive income | 1,855 | 3,541 |
Total stockholders' (deficit) equity before common stock held in treasury | (522,912) | 415,247 |
Less: Common stock held in treasury, at cost (13,277,871 and 11,986,556 shares at December 31, 2022 and December 31, 2021 respectively) | (334,915) | (332,533) |
Total stockholders' (deficit) equity | (857,827) | 82,714 |
Total liabilities and stockholders' (deficit) equity | $ 2,019,997 | $ 2,711,900 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||||
Common stock, par value | $ 0.01 | $ 0.01 | ||
Common stock, shares outstanding | 113,509,223 | 112,170,944 | 110,781,613 | 94,461,576 |
Common stock, shares issued | 126,787,094 | 124,157,500 | ||
Treasury stock, shares | 13,277,871 | 11,986,556 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive (Loss) Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement [Abstract] | |||
Net sales | $ 2,169,878 | $ 2,171,060 | $ 1,850,690 |
Cost of sales | 1,437,077 | 1,403,004 | 1,369,935 |
Gross Profit | 732,801 | 768,056 | 480,755 |
Selling, general and administrative expenses | 707,246 | 671,165 | 680,479 |
Store and other long-lived asset impairments | 23,277 | 9,048 | 22,449 |
Loss on disposal of assets in international operations | 0 | 3,211 | 73,948 |
Goodwill and intangible asset impairments | 862,544 | 0 | 581,380 |
(Loss) income from operations | (860,266) | 84,632 | (877,501) |
Interest expense, net | 102,647 | 87,226 | 77,043 |
Other (income) expense, net | (3,789) | (614) | 3,715 |
Gain on debt repayment/refinancing | 0 | (1,106) | (273,149) |
Loss before income taxes | (959,124) | (874) | (685,110) |
Income tax (benefit) expense | (16,494) | 5,708 | (156,653) |
Net loss | (942,630) | (6,582) | (528,457) |
Less: Net loss attributable to noncontrolling interests | 0 | (54) | (219) |
Net loss attributable to common shareholders of Party City Holdco Inc. | $ (942,630) | $ (6,528) | $ (528,238) |
Net loss per share attributable to common shareholders of Party City Holdco Inc.- basic | $ (8.35) | $ (0.06) | $ (5.24) |
Net loss per share attributable to common shareholders of Party City Holdco Inc.- diluted | $ (8.35) | $ (0.06) | $ (5.24) |
Weighted-average number of common shares-basic | 112,911,368 | 110,980,934 | 100,804,944 |
Weighted-average number of common shares-diluted | 112,911,368 | 110,980,934 | 100,804,944 |
Other comprehensive (loss) income, net of tax: | |||
Foreign currency adjustments | $ (1,686) | $ 35,128 | $ 6,143 |
Cash flow hedges | 0 | (1,348) | (352) |
Other comprehensive (loss) income, net | (1,686) | 33,780 | 5,791 |
Comprehensive (loss) income | (944,316) | 27,198 | (522,666) |
Less: Comprehensive income (loss) attributable to noncontrolling interests | 0 | 269 | (246) |
Comprehensive (loss) income attributable to common shareholders of Party City Holdco Inc. | $ (944,316) | $ 26,929 | $ (522,420) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Deficit) - USD ($) $ in Thousands | Total | Time-Based Units [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive (Loss) Income [Member] | Total Party City Holdco Inc. Stockholders' Equity Before Common Stock Held In Treasury [Member] | Total Party City Holdco Inc. Stockholders' Equity Before Common Stock Held In Treasury [Member] Time-Based Units [Member] | Common Stock Held In Treasury [Member] | Total Party City Holdco Inc. Stockholders' Equity (Deficit) [Member] | Total Party City Holdco Inc. Stockholders' Equity (Deficit) [Member] Time-Based Units [Member] | Non-Controlling Interests [Member] | |
Balance at Dec. 31, 2019 | $ 529,721 | $ 1,211 | $ 928,573 | $ (37,219) | $ (35,734) | $ 856,831 | $ (327,086) | $ 529,745 | $ (24) | ||||
Net loss | (528,457) | (528,238) | (528,238) | (528,238) | (219) | ||||||||
Stock-based compensation | [1] | 13,356 | 13,356 | 13,356 | 13,356 | ||||||||
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 loss | (6,582) | (6,528) | (6,528) | (6,528) | (54) | ||||||||
Stock-based compensation | [1] | $ 6,685 | 6,685 | $ 6,685 | $ 6,685 | ||||||||
Warrant exercise | 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 | |||||
Net loss | (942,630) | (942,630) | (942,630) | (942,630) | |||||||||
Stock-based compensation | [1] | 6,157 | 1 | 6,156 | 6,157 | 6,157 | |||||||
Foreign currency adjustments | (1,686) | (1,686) | (1,686) | (1,686) | |||||||||
Treasury stock purchases | (2,382) | (2,382) | (2,382) | ||||||||||
Balance at Dec. 31, 2022 | $ (857,827) | $ 1,385 | $ 988,463 | $ (1,514,615) | $ 1,855 | $ (522,912) | $ (334,915) | $ (857,827) | |||||
[1] * Stock-based compensation consists of stock-option expense – time-based, restricted stock units – time-based, restricted stock units – performance-based, directors – non-cash compensation, warrant expense (see Note 21 - Kazzam, LLC), and other non-employee stock-based compensation, which were shown separately in prior years. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows (used in) provided by operating activities: | |||
Net loss | $ (942,630) | $ (6,582) | $ (528,457) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | |||
Depreciation and amortization expense | 63,031 | 65,610 | 76,506 |
Amortization of deferred financing costs and original issuance discounts | 5,504 | 4,516 | 4,198 |
Provision for doubtful accounts | 3,659 | 2,569 | 6,321 |
Deferred income tax benefit | (19,593) | (5,155) | (95,085) |
Undistributed (income) loss in equity method investments | (1,467) | (220) | 333 |
Change in operating lease liability/asset | 5,545 | (51,326) | 30,981 |
Loss on disposal of assets | 192 | 2,781 | 70 |
Loss on disposal of assets in international operations | 0 | 3,211 | 73,948 |
Store and other long-lived asset impairment | 23,277 | 0 | 17,585 |
Goodwill and intangible asset impairments | 862,544 | 11,974 | 581,380 |
Stock-based compensation | 6,156 | 6,685 | 13,413 |
Gain on debt repayment/refinancing | 0 | (1,106) | (273,149) |
Changes in operating assets and liabilities, net of effects of acquired businesses: | |||
Decrease (increase) in accounts receivable | (806) | (10,673) | 22,396 |
(Increase) decrease in inventories | (188,634) | (34,236) | 184,924 |
Decrease (increase) in prepaid expenses and other current assets, net | 62,733 | (21,419) | (66,166) |
(Decrease) increase in accounts payable, accrued expenses and income taxes payable | (31,446) | 85,306 | 28,002 |
Net cash (used in) provided by operating activities | (151,935) | 51,935 | 77,200 |
Cash flows used in investing activities: | |||
Cash paid in connection with acquisitions, net of cash acquired | (157) | (6,954) | (3,305) |
Capital expenditures | (97,539) | (79,222) | (51,128) |
Proceeds from disposal of property and equipment | 1,634 | 225 | 162 |
Proceeds from sale of international operations, net of cash disposed | 0 | 20,556 | 0 |
Net cash (used in) provided by investing activities | (96,062) | (65,395) | (54,271) |
Cash flows provided by (used in) financing activities: | |||
Repayment of loans, notes payable and long-term obligations | (135,312) | (949,907) | (254,438) |
Proceeds from loans, notes payable and long-term obligations | 401,202 | 883,890 | 368,439 |
Exercise of stock options | 0 | 3,680 | 147 |
Treasury stock purchases | (2,382) | (5,351) | (96) |
Debt issuance and modification costs | (3,970) | (21,437) | (20,348) |
Net cash (used in) provided by financing activities | 259,538 | (89,125) | 93,704 |
Effect of exchange rate changes on cash and cash equivalents | (34) | 190 | (500) |
Net increase (decrease) in cash and cash equivalents and restricted cash | 11,507 | (102,395) | 116,133 |
Less: net increase/decrease in cash classified within current assets held for sale | 0 | 31,628 | (31,628) |
Cash and cash equivalents and restricted cash at beginning of period | 48,914 | 119,681 | 35,176 |
Cash and cash equivalents and restricted cash at end of period | 60,421 | 48,914 | 119,681 |
Cash paid during the period: | |||
Interest | (89,639) | (57,971) | (68,396) |
Income taxes, net of refunds | $ 40,190 | $ (5,413) | $ (26,867) |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Statement of Cash Flows [Abstract] | |||
Restricted cash | $ 1 | $ 1 | $ 0.1 |
Organization, Description of Bu
Organization, Description of Business, and Basis of Presentation | 12 Months Ended |
Dec. 31, 2022 | |
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,” “Party City Holdco” or “PCH”) 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 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 770 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. Chapter 11 Cases On January 17, 2023 (the “PCHI Petition Date”), the Company and certain of its domestic subsidiaries (collectively, the “Debtors”) filed voluntary petitions (the “Chapter 11 Cases”) in the United States Bankruptcy Court for the Southern District of Texas (the “Bankruptcy Court”) seeking relief under Chapter 11 of Title 11 of the United States Code (the “Bankruptcy Code”). The Company’s Anagram Holdings, LLC, (“Anagram”) subsidiary, Anagram’s subsidiaries (together with Anagram, the “Anagram Entities”), and the Company’s foreign subsidiaries were not included in the Chapter 11 Cases and continued to operate in the ordinary course of business throughout the duration of the Chapter 11 Cases. On January 18, 2023, the Bankruptcy Court granted the Debtors’ motion to jointly administer the Chapter 11 Cases for procedural purposes only under the caption In re: Party City Holdco Inc., et. al . (Case No. 23-90005). To ensure its ability to continue operating in the ordinary course of business, the Debtors also filed with the Bankruptcy Court a variety of motions seeking “first-day” relief, which were approved by the Bankruptcy Court and permitted the Debtors to operate in the ordinary course during the Chapter 11 Cases and included the interim approval of a debtor-in-possession term loan facility (the “DIP Facility”) as described below. The Debtors continued to operate their business and manage their properties as “debtors-in-possession” in accordance with the applicable provisions of the Bankruptcy Code and orders of the Bankruptcy Court throughout the duration of the Chapter 11 Cases. On the PCHI Petition Date, the Debtors entered into a Restructuring Support Agreement (along with subsequent amendments made throughout the Chapter 11 Cases, the “RSA”) with certain holders (collectively, the “Initial Consenting Noteholders”) of the Secured Floating Rate 2025 Notes (as defined herein) and the Secured Fixed Rate 2026 Notes (as defined herein). The RSA contemplates a restructuring (the “Restructuring”) of the Debtors pursuant to a joint plan of reorganization (the “Plan,” as further described below). Among other things, the RSA provided for: • The entry into the DIP Facility, which was fully backstopped by the Initial Consenting Noteholders in the amount of $ 150 million, which was approved by the Bankruptcy Court on an interim basis on January 18, 2023 and on a final basis on March 3, 2023, as discussed below; • The (a) equitization of the Secured Notes in exchange for the equity of the reorganized Company, subject to dilution by any Reorganized Securities issued pursuant to the Rights Offering to be consummated at emergence from the Chapter 11 Cases, the Management Incentive Plan, and, to the extent applicable, the Reorganized Securities issued to lenders who provide backstop commitments under the DIP Facility in consideration for their backstop commitments, as a result of the DIP Equitization or (b) such other treatment of the Secured Notes as agreed by the Initial Consenting Noteholders; • Either repayment in cash upon emergence of the amounts outstanding under the Company’s ABL Facility and its FILO Facility (each as defined below) with proceeds from a third-party financing or, with the agreement of the holders thereof, the rolling of such outstanding amounts into a new asset-based lending exit facility, in each case as acceptable to the Debtors and the Initial Consenting Noteholders; • The treatment of general unsecured claims to be governed by the terms of the Plan and to be acceptable to the Debtors and the Initial Consenting Noteholders; and • The cancellation, extinguishment, and discharge of the existing common stock of the Company and any other equity securities of the Company, with existing equity in the Company receiving no recovery or distribution. On January 18, 2023 , the Bankruptcy Court approved the Debtors’ proposed $ 150 million senior secured super priority priming DIP Facility on an interim basis. On January 19, 2023, certain of the Debtors entered into the credit agreement governing the DIP Facility along with certain financial institutions party thereto as lenders and Ankura Trust Company, LLC (the “DIP Credit Agreement”), as the administrative agent and collateral agent, and the closing of the DIP Facility occurred on the same day. An initial draw of $ 75 million under the DIP Facility was made on January 19, 2023, and the proceeds were used in accordance with the DIP Facility budget to, among other things, (i) pay the administrative costs and expenses of the Chapter 11 Cases and the DIP Facility and (ii) fund general corporate purposes. A second draw of $ 75 million was made following the Bankruptcy Court’s entry of the order approving the DIP Facility on a final basis on March 3, 2023. The second draw of borrowings for $ 75 million was used for the same purposes as the first draw. The DIP Facility was secured by perfected senior security interests and liens having the priorities set forth in the DIP Credit Agreement on substantially all assets of the Debtors. The DIP Facility terminated on October 12, 2023 as part of the Debtors' emergence from the Chapter 11 Cases, as discussed in more detail below. The filing of the Chapter 11 Cases constituted an event of default that accelerated the Company’s following debt obligations: i) its asset-based revolving credit facility (the “Prepetition ABL Facility”); ii) its asset-based first-in, last-out revolving tranche (the “FILO Facility”); iii) its senior secured first lien floating rate notes due 2025 (the “Secured Floating Rate 2025 Notes”); iv) its 8.750 % senior secured first lien notes due 2026 (the “Secured Fixed Rate 2026 Notes”); v) its 6.125 % senior notes due 2023; and vi) its 6.625 % senior notes due 2026. Any efforts to enforce payment obligations on the Debtors’ debt agreements were automatically stayed as a result of the filing of the Chapter 11 Cases and the holders’ rights of enforcement in respect of the Debtors’ debt agreements were subject to the applicable provisions of the Bankruptcy Code. On April 4, 2023, the Company filed the initial version of its Plan and a related proposed form of Disclosure Statement (the “Disclosure Statement”) with the Bankruptcy Court. The Plan was since amended four times, with the last amendment of the Plan filed on August 31, 2023. The Plan intended to implement the previously disclosed Restructuring contemplated by the RSA. The Plan and the related Disclosure Statement describe, among other things, the Plan; the Restructuring contemplated by the RSA; the events leading to the Chapter 11 Cases; certain events that have occurred or were anticipated to occur during the Chapter 11 Cases, including the anticipated solicitation of votes to approve the Plan from certain of the Debtors’ creditors and certain other aspects of the Restructuring. Subsequent Event - Emergence from Chapter 11 Cases On September 6, 2023 , the Bankruptcy Court entered an order confirming the Plan (the “Confirmation Order”). On October 12, 2023 (the “Effective Date”), the Plan became effective in accordance with its terms, and the Debtors emerged from the Chapter 11 Cases. The emergence events discussed below occurred subsequent to the December 31, 2022 date of the consolidated balance sheet presented in this report and are, therefore, not reflected in the financial statements presented in this report. On the Effective Date, in connection with the effectiveness of, and pursuant to the terms of, the Plan and the Confirmation Order, the Company’s common stock outstanding immediately before the Effective Date was canceled and is of no further force or effect, and the new organizational documents of the Company became effective, authorizing the issuance of shares of common stock representing 100 % of the equity interests in the Company (the “New PCHI Shares”). In accordance with the foregoing, on the Effective Date, the Company, as reorganized on the Effective Date in accordance with the Plan, issued 13,374,519 New PCHI Shares and the 12.00 % Senior Secured Second Lien PIK Toggle Notes (the “Second Lien Notes” and together with the New PCHI Shares, the “New Securities”). The New Securities issued pursuant to the Plan, including the New Securities issued upon the exercise of the Subscription Rights (as defined in the backstop commitment agreement (as amended, supplemented, or modified from time to time, together with all exhibits and schedules thereto, the “Backstop Agreement”) with the commitment parties thereto (collectively, the “Commitment Parties”)) in connection with the rights offering ((the “Rights Offering,” consisting of a purchase price of $ 75 million aggregate principal amount (a portion of the $ 232.4 million aggregate principal amount of the Company ’ s Second Lien Notes) and 3,634,614 New PCHI Shares), all New Securities issued to the Commitment Parties in respect of their commitments under the Backstop Agreement and in connection with the Rights Offering was issued in reliance upon the exemption from the registration requirements of the Securities Act of 1933, as amended (the “Securities Act”) provided by section 1145 of the Bankruptcy Code and, to the extent such exemption was unavailable, was issued in reliance on the exemption provided by section 4(a)(2) under the Securities Act or another applicable exemption. Equity Interests On the Effective Date, all interests in the Company that existed immediately prior to the Effective Date were cancelled, and the Company issued or caused to be issued the New PCHI Shares in accordance with the terms of the Plan. Pursuant to the Plan, each holder of an Allowed Secured Notes Claim (as defined in the Plan) received, among other things, its pro rata share of 100 % of the New PCHI Shares, subject to dilution by the New PCHI Shares issued as DIP Reorganized Securities (as defined in the Plan), the New PCHI Shares issued in connection with the Rights Offering (including in partial satisfaction of the Backstop Commitment Premium (as defined in the Plan)), and the MIP Equity Pool (as defined in the Plan). 100% of the New PCHI Shares is less than 1 % of all shares issued at emergence post-dilution. See “Unregistered Sales of Equity Securities” section later in this footnote. Claims Treatment Under the Plan In accordance with the Plan, holders of claims against and interests in the Debtors received (or shall receive, as soon as reasonably practicable following the date such holder’s claim or interest becomes an Allowed Claim or Interest (each as defined in the Plan)) the following treatment (capitalized terms used but not defined in this section have the meanings ascribed to them in the Plan): • Prepetition ABL Revolver Claims. Each holder of an Allowed Prepetition ABL Revolver Claim voted to accept the Plan and elected to participate in the ABL Exit Facility, and the ABL Exit Facility Trigger occurred, such that (i) each such holder’s Allowed Prepetition ABL Revolver Claims was deemed repaid and refinanced in full by such holder’s extension and receipt of its Pro Rata share of ABL Revolving Credit Loans and (ii) such holder assumed a commitment with respect to the ABL Exit Facility equal to its (or its predecessor in interest’s) commitment under the Prepetition ABL Facility immediately prior to the PCHI Petition Date. • Prepetition ABL FILO Claims . Each holder of an Allowed Prepetition ABL FILO Claim voted to accept the Plan and elected to participate in its Pro Rata share of the ABL Exit Facility, and the ABL Exit Facility Trigger occurred, such that each such holder’s Allowed Prepetition ABL FILO Claims was deemed repaid and refinanced in full by such holder’s extension and receipt of its Pro Rata share of ABL FILO Loans. • Secured Notes Claims . Each holder of an Allowed Secured Notes Claim received (i) its Pro Rata share of the New PCHI Shares issued on the Effective Date on account of the Allowed Secured Notes Claims, representing 100 % of the New PCHI Shares outstanding on the Effective Date, subject to dilution by the New PCHI Shares issued as DIP Reorganized Securities, the New PCHI Shares issued in connection with the Rights Offering (including in partial satisfaction of the Backstop Commitment Premium), and the MIP Equity Pool and (ii) subscription rights to purchase up to its Pro Rata share of the securities comprising the Investment Package for an aggregate purchase price of $ 75 million offered in the Rights Offering in accordance with the Rights Offering Procedures. • General Unsecured Claims . Each holder of an Allowed General Unsecured Claim received its Pro Rata share of the General Unsecured Claim Recovery Pool. • Interests in the Compan y . Holders of Interests in the Company, including the Company’s common stock prior to emergence, received no recovery or distribution on account of such Interests, and upon emergence from Chapter 11, all such Interests in the Company were canceled, released, extinguished, and discharged, and are of no further force or effect. Debt Securities and Agreements Except for the purpose of evidencing a right to a distribution under the Plan or as otherwise provided in the Plan, on the Effective Date, the obligations of the Debtors under the Prepetition ABL Facility, the Secured Notes Indentures (as defined in the Plan), the Unsecured Notes Indentures (as defined the Plan), stock certificates, book entries, and any other certificate, share, note, bond, indenture, purchase right, option, warrant, or other instrument or document, directly or indirectly, evidencing or creating any indebtedness or obligation of or ownership interest in the Debtors giving rise to any claim or interest (except such certificates, notes or other instruments or documents evidencing indebtedness or obligations of, or interests in, the Debtors that are specifically reinstated pursuant to the Plan) were cancelled, and the duties and obligations of all parties thereto were deemed satisfied in full, canceled, released, discharged, and of no force or effect. New ABL Credit Agreement On the Effective Date, pursuant to the terms of the Plan, the Company and certain of its subsidiaries entered into an ABL credit agreement (the “New ABL Credit Agreement”), by and among the Company, as a parent guarantor, Party City Holdings Inc., a Delaware corporation, as the parent borrower (the “Parent Borrower”), Party City Corporation, a Delaware corporation, and each other subsidiary of the Borrowers party thereto as a subsidiary borrower from time to time (collectively with the Parent Borrower, the “Borrowers”), PC Intermediate Holdings, Inc. a Delaware corporation, as a parent guarantor (“Holdings”), the other subsidiaries of the Borrowers party thereto from time to time as subsidiary guarantors, the lenders party thereto from time to time, and JPMorgan Chase Bank, N.A., as administrative agent and collateral agent (in such capacities, the “New ABL Agent”). The New ABL Credit Agreement provides for a $ 545 million senior secured asset-based revolving loan facility (with a $ 60 million sublimit for the issuance of letters of credit thereunder) (the “New ABL Revolving Facility” and the loans outstanding thereunder, the “New ABL Revolving Loans”) and a $ 17.1 million senior secured asset-based first-in last-out loan facility (the “New FILO Facility” and the loans outstanding thereunder, the “New FILO Loans”; the New FILO Facility together with the New ABL Revolving Facility, the “New ABL Facility”). The New ABL Facility is scheduled to mature on October 12, 2028 . All obligations of the Borrowers under the New ABL Credit Agreement, certain banking services obligations, and certain hedging obligations are unconditionally guaranteed, on a joint and several basis, by the Borrowers, Holdings, the Company, and the material domestic direct and indirect restricted subsidiaries of the Company, subject to certain exceptions and limitations described in the New ABL Credit Agreement (each a “New Loan Party” and collectively, the “New Loan Parties”). All such obligations, including the guarantees of the New ABL Facility, are secured by (i) first priority liens on substantially all assets of the New Loan Parties, and (ii) the equity interests in the New Loan Parties other than the Company, in each case, subject to certain exceptions and limitations described in the New ABL Credit Agreement. The New ABL Revolving Loans and the New FILO Loans bear interest at a rate per annum equal to the applicable margin plus, at the Borrowers’ option, either: (i) an adjusted term SOFR rate, subject to a floor of 0.00 % or (ii) a base rate, subject to a floor of 0.00 %, determined as the greatest of (x) the prime loan rate as published in The Wall Street Journal, (y) the federal funds effective rate plus 0.50 %, and (z) adjusted term SOFR rate for a one-month tenor plus 1.00 %. The margin applicable to the loans bearing interest based on the adjusted term SOFR rate equals to: (i) with respect to the New ABL Revolving Loans, 4.00 % and (ii) with respect to the New FILO Loans, 6.00 %. The margin applicable to the loans bearing interest based on the base rate equals to: (i) with respect to the New ABL Revolving Loans, 3.00 % and (ii) with respect to the New FILO Loans, 5.00 %. The applicable margins are subject to a 0.50 % increase on March 31, 2024 and an incremental 0.50 % increase on June 30, 2024 if the Parent Borrower has, as of such date, not yet delivered to the New ABL Agent an audited consolidated balance sheet and related statements of income, stockholders' equity, and cash flows of the Company and its subsidiaries as of the end of the fiscal year ended December 31, 2022. The Borrowers are required to pay interest on overdue principal or interest at the rate equal to 2.00 % per annum in excess of the applicable interest rate under the New ABL Facility to the extent lawful. Outstanding loans under the New ABL Credit Agreement are subject to an intercreditor agreement by and among the New ABL Agent, as the First Priority Representative for the First Priority Secured Parties and Wilmington Savings Fund Society, FSB, as the Second Priority Representative for the Second Priority Secured Parties (in each case, as defined therein) (the “Intercreditor Agreement”). The Intercreditor Agreement provides, among other things, that the liens securing the obligations under the Second Lien Notes rank junior in priority to the liens securing the obligations under the New ABL Credit Agreement. The Borrowers are required to pay a quarterly commitment fee to each ABL Revolving Lender (as defined in the New ABL Credit Agreement), which accrues at a rate per annum equal to 0.50 % on the average daily unused portion of such ABL Revolving Lender’s commitments under the New ABL Revolving Facility. The Borrowers are also required to pay participation fees and fronting fees with respect to letters of credit participation and issuance. Borrowings under the New ABL Credit Agreement may be used to (i) refinance indebtedness under the prepetition asset-based revolving credit facility and (ii) finance the working capital needs and other general corporate purposes of the Parent Borrower and its subsidiaries. Availability of borrowings of New ABL Revolving Loans under the New ABL Credit Agreement is subject to the satisfaction of certain conditions, including, after giving effect to any such borrowings, aggregate credit exposure of lenders under the New ABL Credit Agreement not exceeding the lesser of the aggregate unblocked commitments and the borrowing base at such time. Borrowings of the New FILO Loans are only available on the Effective Date and if repaid or prepaid may not be reborrowed. Under the New ABL Credit Agreement, the borrowing base at any time equals (a) a percentage of eligible inventory, plus (b) a percentage of eligible trade receivables, plus (c) a percentage of eligible credit card receivables, less (d) certain reserves. Mandatory prepayment of loans under the New ABL Credit Agreement is required if the aggregate credit exposure of lenders under the New ABL Credit Agreement exceeds the borrowing base at such time. Such a mandatory prepayment would be applied to eliminate the availability shortfall as follows: first, to prepay the New ABL Revolving Loans or cash collateralize, backstop or replace letters of credit under the New ABL Facility; and second, to prepay the New FILO Loans. The loans under the New ABL Facility may be voluntarily prepaid without premium or penalty, other than customary breakage costs. Voluntary prepayments of loans under the New ABL Credit Agreement are applied to satisfy New FILO Loan obligations only after other outstanding loan obligations and letter of credit reimbursement obligations under the New ABL Credit Agreement are satisfied. Voluntary prepayments of New FILO Loans are additionally subject to the satisfaction of the Payment Conditions discussed below. The New ABL Credit Agreement requires the Borrowers to maintain, at all times, Excess Unadjusted Availability (as defined in the New ABL Credit Agreement) of at least the greater of (i) 10.0 % of the Total Line Cap (as defined in the New ABL Credit Agreement) and (ii) $ 46 million. The New ABL Credit Agreement contains negative covenants that limit, among other things, the Borrowers’ ability and the ability of their restricted subsidiaries to: (i) incur, assume, or guarantee additional indebtedness; (ii) create, incur, or assume liens; (iii) make investments; (iv) merge or consolidate with or into any other person or undergo certain other fundamental changes; (v) transfer or sell assets; (vi) pay dividends or distributions on capital stock or redeem or repurchase capital stock; (vii) enter into transactions with certain affiliates; (viii) repay or redeem certain indebtedness; (ix) sell stock of its subsidiaries; or (x) enter into certain burdensome agreements. These negative covenants are subject to a number of important limitations and exceptions. The Borrowers and their restricted subsidiaries can make certain acquisitions, restrictive payments, payments of certain indebtedness and investments if, after giving pro forma effect to such transactions, the “Payment Conditions” (as defined in the New ABL Credit Agreement) are met, which include, among other things: (i) 90-Day Excess Availability and Excess Availability (each as defined in the New ABL Credit Agreement) are equal to or greater than the greater of (x) 25.0 % of the Total Line Cap and (y) $ 120 million and (ii) the Fixed Charge Coverage Ratio (as defined in the New ABL Credit Agreement) is at least 1.00 to 1.00 . Additionally, the New ABL Credit Agreement contains other covenants, representations and warranties, and events of default that are customary for a financing of this type. Events of default include, among other things, nonpayment of principal or interest, breach of covenants, breach of representations and warranties, failure to pay final judgments in excess of a specified threshold, failure of a guarantee to remain in effect, failure of a collateral document to create an effective security interest in collateral, bankruptcy and insolvency events, cross-default to other material indebtedness, and a change of control. The occurrence of any event of default under the ABL Credit Agreement would permit all obligations under the New ABL Facility to be declared due and payable immediately and all commitments thereunder to be terminated. Second Lien Notes On the Effective Date, PCHI issued $ 232.4 million in aggregate principal amount of Second Lien Notes. The Second Lien Notes are scheduled to mature on January 11, 2029 . Interest on the Second Lien Notes accrues at a rate of 12.00 % per annum, payable, at the Company’s option, either in cash or by increasing the amount of the Second Lien Notes outstanding, on February 15, May 15, August 15, and November 15 of each year, commencing February 15, 2024. The Second Lien Notes were issued pursuant to an indenture (the “Second Lien Notes Indenture”), by and among the Company, the guarantors party thereto, and Wilmington Savings Fund Society, FSB, as trustee, collateral agent, paying agent, and registrar. The Second Lien Notes are jointly and severally irrevocably and unconditionally guaranteed on a senior secured basis by certain subsidiaries of the Company, including all “New Loan Parties” (other than the Company) under the New ABL Credit Agreement. The Second Lien Notes and such guarantees are secured by second priority liens on the assets subject to liens securing the New ABL Facility, including the equity interests of each guarantor of the Second Lien Notes, all assets owned by the Company as of the Effective Date or acquired thereafter, certain assets related thereto, and substantially all other assets of the Company and such guarantors, in each case, subject to certain exceptions and limitations. The outstanding Second Lien Notes are subject to the Intercreditor Agreement. The following is a brief description of the material provisions of the Second Lien Notes Indenture and the Second Lien Notes. On or after April 11, 2025, the Company may redeem all of the Second Lien Notes at 100 % of the principal amount, plus accrued and unpaid interest, if any, to, but excluding, the redemption date. The Company may also redeem the Second Lien Notes, in whole or in part, at any time and from time to time prior to April 11, 2025 at a redemption price equal to 100 % of the principal amount, plus the Applicable Premium (as defined in the Second Lien Notes Indenture), plus accrued and unpaid interest, if any, to, but excluding, the applicable redemption date. Notwithstanding the foregoing, if a Change of Control (as defined in the Second Lien Notes Indenture) occurs, then, within 60 days of such Change of Control, the Company must offer to purchase all outstanding Second Lien Notes at a redemption price equal to 101 % of the principal amount, plus accrued and unpaid interest, if any, to, but excluding, the date of purchase. The Second Lien Notes Indenture contains covenants that limit, among other things, the ability of the Company and certain of its subsidiaries to: (i) incur, assume, or guarantee additional indebtedness; (ii) pay dividends or distributions on capital stock or redeem or repurchase capital stock; (iii) make investments; (iv) repay or redeem junior debt; (v) sell stock of its subsidiaries; (vi) transfer or sell assets; (vii) create, incur, or assume liens; or (viii) enter into transactions with certain affiliates. These covenants are subject to a number of important limitations and exceptions. The Second Lien Notes Indenture also provides for certain customary events of default, including, among other things, nonpayment of principal or interest, breach of covenants, failure to pay final judgments in excess of a specified threshold, failure of a guarantee to remain in effect, failure of a security document to create an effective security interest in collateral, bankruptcy and insolvency events, and cross acceleration, which would permit the principal, premium, if any, interest, and other monetary obligations on all the then outstanding Second Lien Notes to be declared due and payable immediately. Registration Rights Agreement On the Effective Date, the Company entered into a registration rights agreement (the “Registration Rights Agreement”) with certain parties who received New PCHI Shares under the Plan (“RRA Shareholders”). Pursuant to the Registration Rights Agreement, following the completion of an initial public offering (as defined in the Registration Rights Agreement, an “IPO”), the Company will file a shelf registration statement promptly, no later than a date that is 30 days following the later of the IPO and the date of the expiration of the lockup agreement with the underwriters in such IPO. However, the Company is not required to file the shelf registration statement unless RRA Shareholders request the inclusion of Registrable Securities (as defined in the Registration Rights Agreement) constituting at least 25 % of all Registrable Securities. The RRA Shareholders also have demand registration rights, provided that such RRA Shareholders request the inclusion of Registrable Securities constituting at least 25 % of all Registrable Securities or the gross proceeds of the offering are expected to be at least $ 50 million, and customary piggyback registration rights. The Company will generally pay all registration expenses in connection with its obligations under the Registration Rights Agreement, regardless of whether a registration statement is filed or becomes effective. The registration rights granted in the Registration Rights Agreement are subject to customary indemnification and contribution provisions, as well as customary restrictions such as blackout periods. Stockholders’ Agreement On the Effective Date, the Company entered into a stockholders agreement (the “Stockholders Agreement”) with holders of common stock of the Company (the “Stockholders”), pursuant to which each of the Stockholders agreed to certain restrictions on the transfer of the common stock of the Company and the Company agreed (i) to provide to certain Stockholders the right to designate directors of the board, subject to certain limitations, (ii) to certain limitations and obligations on its operations without Stockholder approval and (iii) to provide certain information to the Stockholders. Pursuant to the Plan, each holder of common stock of the Company on the Effective Date was deemed to be a party to, and bound by, the Stockholders Agreement, regardless of whether such holder executed a signature page thereto. Unregistered Sales of Equity Securities On the Effective Date, pursuant to the Plan: • 36,879 New PCHI Shares were issued pro rata to holders of Secured Notes Claims in partial exchange for the cancellation of the Secured Notes (as defined in the Plan), representing 0.3 % of all shares issued at emergence; • 3,516,079 New PCHI Shares were issued to holders of Secured Notes Claims (or their designees) in exchange for exercising Subscription Rights under the Rights Offering, representing 26.3 % of all shares issued at emergence; • 118,535 New PCHI Shares were issued to certain holders of Secured Notes Claims that purchased in connection with their Backstop Commitments (as defined in the Backstop Agreement), the New PCHI Shares that were offered in the Rights Offering and not properly subscribed for, representing 0.9 % of all shares issued at emergence; • 363,462 New PCHI Shares were issued to certain holders of Secured Notes Claims in exchange for providing $ 75 million of Backstop Commitments to the Debtors in connection with the Rights Offering, representing 2.7 % of all shares issued at emergence; and • 9,339,564 New PCHI Shares were issued to holders of Allowed DIP Claims on account of such holders’ DIP Loans (each as defined in the Plan), representing 69.8 % of all shares issued at emergence. Subsequent Event - Anagram Bankruptcy On November 8, 2023 (the “Anagram Peti |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
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 2022 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. Due to the fact that the Chapter 11 filing occurred after the balance sheet date in this report, the accompanying consolidated financial statements as of and for the period ending December 31, 2022 have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The accompanying consolidated financial statements do not reflect any adjustments to liabilities and assets that resulted from the Bankruptcy Court’s confirmation of our reorganization plan on October 12, 2023. During the Chapter 11 Cases, the Company’s ability to continue as a going concern was contingent upon the Company’s ability to successfully implement the Company’s reorganization plan, among other factors. As a result of the effectiveness and ongoing implementation of the reorganization plan, management believes there is no longer substantial doubt about the Company’s ability to continue as a going concern. Use of Estimates The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States (“GAAP”) 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 and 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. As of December 31, 2022, cash and cash equivalents included credit card receivables of $ 33.4 million. The Company maintains the majority of its cash in accounts with major financial institutions within and outside of the United States. Deposits in these institutions may exceed the amounts of insurance provided, or deposits may not be covered by insurance. The Company has not experienced losses on its deposits of 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 See Note 20 for details. Long-Lived and Intangible Assets (including Goodwill and Trade Names) Property, plant, and equipment are stated at cost less accumulated depreciation. Depreciation for Property, plant, and equipment is recorded using the straight-line method over their estimated useful lives. 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 or approximates the carrying value of the asset/asset group, we would then 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. The fair values of store long-lived assets are determined based on estimated future discounted cash flows. Various factors, including future sales growth, profit margins, and store closure plans are included in this analysis. See Note 3 for further information regarding store and other long-lived asset impairments. Goodwill is reviewed for potential impairment annually on October 1st or more frequently if events or changes in circumstances indicate the carrying value of goodwill might exceed its current fair value. 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 market and income approaches. If the carrying value of a reporting unit exceeds its fair value, an impairment loss will be recognized in an amount equal to such excess. The fair value of the Company’s reporting units is based upon the best information available that incorporates assumptions marketplace participants would use in their estimates of fair value. Significant assumptions are used in determining appropriate discount rates and terminal growth rates, market multiples, and other assumptions. To forecast a reporting unit’s future cash flows, the Company takes into consideration current and future economic conditions and trends, management’s and a market participant’s view of revenue and EBITDA growth rates, and risk-adjusted discount rates. Macroeconomic factors such as changes in economies, changes in the competitive landscape, and other changes beyond the Company’s control could have a positive or negative impact on achieving its growth rate targets. See Note 4 for further information regarding goodwill impairments recorded in the periods covered by this report. Our trade names are treated as indefinite-lived intangible assets and are tested for impairment annually on October 1st or more frequently if circumstances indicate a possible impairment. 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 royalty rates and discount rates. Actual future results may differ from these estimates. An impairment loss is recognized when the estimated fair value of the indefinite-lived intangible asset is less than its carrying amount. See Note 8 for further information regarding trade name impairments recorded in the periods covered by this report. 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 investments in Convergram Mexico, S. De R.L. De C.V., a joint venture distributing metallic balloons, principally in Mexico and Latin America and a joint venture for its costume sourcing and manufacturing business in Asia that are accounted for using the equity method of accounting. The Company concluded that it is not the primary beneficiary in either of these joint ventures and therefore accounts for these investments under the equity method. See Variable Interest Entities section below for additional information. The Company’s investments are included in Other assets, net on the consolidated balance sheets, and its share of the results of the investees’ operations are included in Other (income) expense, net, in the consolidated statements of operations and comprehensive (loss) income. See Note 11. 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 frequency and/or severity of incidents. 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 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 brand value (via significant advertising spend) and 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 when the franchisees’ sales are recorded. Additionally, 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, though the Company anticipates that future franchise store openings will be limited. Both the sales-based royalty fee and the one-time fee are recorded in Net sales in the Company’s consolidated statements 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 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 Wholesale cost of sales include 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. Retail cost of sales include 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. Selling, General and Administrative Expenses Selling, general and administrative expenses include wholesale selling expenses, retail operating expenses, art and development costs, and other operating expenses. Wholesale selling expenses include the costs associated with our wholesale sales and marketing efforts, including merchandising and customer service. Such costs include the salaries and benefits of the related work force, including sales-based bonuses and commissions, as well as catalog and showroom expenses, travel, and other operating costs. Certain selling expenses, such as sales-based bonuses and commissions, vary in proportion to sales, while other costs vary based on other factors, such as our marketing efforts, or are largely fixed and do not necessarily increase as sales volumes increase. Retail operating expenses include all of the costs associated with retail store operations, excluding occupancy-related costs included in cost of sales. Costs include store payroll and benefits, advertising, supplies, and credit card costs. Retail expenses are largely variable but do not necessarily vary in proportion to net sales. Art and development costs include the costs associated with art production, creative development, and product management, and all operating costs and franchise expenses not included elsewhere in the consolidated statements of operations and comprehensive (loss) income. Costs include the salaries and benefits of the related work force. These expenses generally do not vary proportionally with net sales. Selling, general and administrative expenses also include all operating costs and franchise expenses not included elsewhere in the consolidated statements of operations and comprehensive (loss) income. These expenses include payroll and other expenses related to operations at our corporate offices, including occupancy costs, related depreciation and amortization, legal and professional fees, stock and equity-based compensation and data-processing costs. These expenses generally do not vary proportionally with net sales. 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 products 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. Product royalty is recorded within Cost of sales in the consolidated statements of operations and comprehensive (loss) income. Advertising Advertising costs are expensed as incurred. Retail advertising expenses for the years ended December 31, 2022, December 31, 2021, and December 31, 2020 were $ 50.9 million, $ 55.3 million, and $ 61.0 million, 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. See Equity Method Investments section above. There were no variable interest entities as of December 31, 2022, 2021, and 2020. Refer to Note 21 – Kazzam, LLC for additional information. Derivative Financial Instruments ASC Topic 815, “Accounting for Derivative Instruments and Hedging Activities,” requires that all derivative financial instruments be recognized on the consolidated balance sheets 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. The company’s derivative financial instruments expired in 2021, and the Company did not enter into any derivative financial instruments in 2022. 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 The Company measures the cost for all stock-based awards at the grant date fair value and recognizes the related compensation expense over the requisite service period based on the amount of awards expected to vest. Stock-based compensation expense is recorded net of estimated forfeitures based on historical experience. In 2022, the Company granted performance-based restricted stock units (“PRSUs”) to certain executive officers and other employees that vest only if certain annual and cumulative cash flow and earnings per share targets are met over a 3-year period. For such awards, management must assess the likelihood and extent to which such targets will be met to determine the amount of compensation expense to be recorded each reporting period. In 2020, the Company granted PRSUs and Restricted Cash awards with market conditions to certain executive officers and other employees. The performance period for such awards 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 of 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 are settled in Party City common stock and are accounted for as equity awards, and the Restricted Cash awards are settled in cash and are accounted for as liability awards. See Note 13 for further details regarding the Company’s stock-based compensation. Accumulated Other Comprehensive Income (Loss) Accumulated other comprehensive income (loss) consists of the Company’s foreign currency adjustments. Se e Note 19. Foreign Currency Transactions and Translation For the Company’s foreign operations, the functional currency is the local currency 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 consolidated statements 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). Loss Per Share Basic loss per share is computed by dividing net loss attributable to common shareholders of Party City Holdco Inc. by the weighted average number of common shares outstanding for the period. In reporting periods with net income attributable to common shareholders of Party City Holdco Inc., 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 and PRSU’s, as if they vested. The calculation of basic and diluted loss per share is as follows: Year ended December 31, 2022 2021 2020 Net loss attributable to common shareholders of $ ( 942,630 ) $ ( 6,528 ) $ ( 528,238 ) Weighted average shares — Basic and Diluted: 112,911,368 110,980,934 100,804,944 Net loss per share attributable to common $ ( 8.35 ) $ ( 0.06 ) $ ( 5.24 ) During the year ended December 31, 2022 , 3,129,830 restricted stock units, 3,274,913 performance restricted stock units and 885,862 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. Duri ng 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 year ended December 31, 2020, 3,240,461 stock options, 1,000,000 warrants, 787,313 restricted stock units, and 1,206,723 performance restricted stock units were excluded from the calculations of net loss per share attributable to common shareholders of Party City Holdco Inc. – diluted as they were anti-dilutive. Recently Issued Accountin g Pronouncements In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832), Disclosures by Business Entities About Government Assistance, which requires entities to provide disclosures on material government assistance transactions for annual reporting periods. The disclosures include information around the nature of the assistance, the related accounting policies used to account for government assistance, the effect of government assistance on the entity’s financial statements, and any significant terms and conditions of the agreements, including commitments and contingencies. The new standard was effective for the Company on January 1, 2022 and only impacts annual financial statement footnote disclosures. The adoption did not have any effect on our consolidated financial statements. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope, which clarified the scope and application of ASU 2020-04. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, which defers the sunset date of the reference rate reform guidance to December 31, 2024. This guidance may be elected over time, through December 31, 2024, as reference rate reform activities occur. Once ASU 2020-04 is elected, the guidance must be applied prospectively for all eligible contract modifications. In July 2022, the Company amended its asset-based revolving credit facility to use the Secured Overnight Financing Rate (“SOFR”) as a reference rate rather than London Interbank Offered Rate (“LIBOR”). The Company elected to apply this guidance which preserves the presentation of the loan consistent with the presentation prior to the modification. |
Store and Other Long-Lived Asse
Store and Other Long-Lived Asset Impairments | 12 Months Ended |
Dec. 31, 2022 | |
Restructuring and Related Activities [Abstract] | |
Store and Other Long-Lived Asset Impairments | Note 3 — Store and Other Long-Lived Asset Impairments During the years ended December 31, 2022, 2021, and 2020, the Company recorded the impairment charges reported in Store and other long-lived asset impairments in the Company’s consolidated statements of operations and comprehensive (loss) income as follows: 2022 Impairment Charges: During the year ended December 31, 2022, the Company performed an impairment assessment of store and other long-lived assets as a result of a decline in financial performance, its contemplation of bankruptcy and related store closure plans, and the cessation of certain information system projects. The Company also vacated certain office space in 2022. Based on these developments, the Company recorded $ 23.3 million of impairment charges on lease assets, property, plant, and equipment, and other assets for the year ended December 31, 2022 as follows: • Store assets impairment ($ 9.6 million, of which $ 8.4 million related to lease assets and $ 1.2 million related to property, plant, and equipment) • Vacated office space ($ 6.8 million, of which $ 5.0 million related to lease assets and $ 1.8 million related to property, plant, and equipment) • Cessation of information system projects ($ 6.8 million, of which $ 1.9 million related to property, plant, and equipment and $ 4.9 million related to other assets) 2021 Impairment Charges: During the year ended December 31, 2021, the Company recognized property, plant, and equipment impairment charges of $ 9.0 million primarily related to the closure of a manufacturing facility in New Mexico discussed within Note 5. 2020 Impairment Charges: During the year ended December 31, 2020, 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 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. As a result of these actions, the Company recorded $ 22.4 million in store and other long-lived asset impairment charges for the year ended December 31, 2020. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Asset Impairment [Abstract] | |
Goodwill | Note 4 – Goodwill As of December 31, 2022, the Company's goodwill balance was $ 100.4 million, all of which was related to the retail reporting unit. As of December 31, 2021, the Company’s goodwill balance was $ 664.3 million, of which $ 331.7 million and $ 332.6 million was for the wholesale and retail reporting units, respectively. The decrease in goodwill was attributable to impairments recorded in the third and fourth quarters of 2022, as discussed in more detail below. In the third quarter of 2022, impairment indicators were identified that suggested the carrying values of the wholesale and retail reporting units could exceed their fair values. Such impairment indicators included the recent performance of the reporting units, revised projections of future cash flows that were lower than previous projections, and a continuing decline in the Company’s market capitalization. To test for potential impairment of goodwill related to our wholesale and retail reporting units, we prepared an estimate of the fair value of these reporting units based on a combination of a market-based valuation method (utilizing earnings multiples of similarly situated guideline public companies) and an income approach that uses projected discounted cash flows. Based on these valuations of the wholesale and retail reporting units, the Company recognized a non-cash pre-tax goodwill impairment charge of $ 288.4 million in the wholesale reporting unit in the third quarter of 2022. In the fourth quarter of 2022, additional impairment indicators were identified that suggested the carrying values of the wholesale and retail reporting units could exceed their fair values, as the Company reduced its sales projections for 2023, continued to experience a decline in its market capitalization, and, most notably, began to contemplate filing for Chapter 11 bankruptcy for the Company and certain of its subsidiaries. Subsequent to December 31, 2022, the Company and certain of its subsidiaries filed for bankruptcy under Chapter 11 on January 17, 2023 (see Note 1). In light of these circumstances, we tested the goodwill related to our wholesale and retail reporting units for impairment in the fourth quarter of 2022 using the same market-based and income-based approach utilized in the third quarter. Based on these valuations of the wholesale and retail reporting units, the Company recognized a non-cash pre-tax goodwill impairment c harge of $ 60.3 million in the wholesale reporting unit and $ 219.9 million in the retail reporting unit for a total goodwill impairment charge of $ 280.2 million recognized in the fourth quarter of 2022. For the year ended December 31, 2022, we recognized pre-tax goodwill impairment charges of $ 348.7 million in the wholesale reporting unit and $ 219.9 million in the retail reporting unit for a total goodwill impairment charge of $ 568.6 million recognized in 2022, which is included within Goodwill and intangible asset impairments in the consolidated statements of operations and comprehensive (loss) income. There were no goodwill impairments recorded in 2021. However, goodwill did decrease in 2021 by $ 1.5 million within the wholesale reporting unit due to the divestiture of our international business and foreign currency translation. In addition, the retail reporting unit had an increase in goodwill of $ 4.5 million in 2021 due to store acquisitions. In the first quarter of 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 $ 253.1 million and $ 148.3 million against the goodwill associated with its retail and wholesale reporting units, respectively. |
Disposition of Assets
Disposition of Assets | 12 Months Ended |
Dec. 31, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposition of Assets | Note 5 – Disposition of Assets 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 $ 11.6 million consisting primarily of equipment and inventory impairments of $ 8.7 million and $ 2.4 million, respectively, and severance and other costs of $ 0.5 million. The equipment impairment is reflected within store and other long-lived assets impairment, the inventory impairment charge is reflected within Cost of sales and the remaining charges are reflected within Selling, general and administrative expenses in the consolidated statements 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. As a result, the company recorded a loss reserve of $ 73.9 million in 2020 for the assets that were disposed. The announced sale had a total transaction value of approximately $ 50.7 million. The Company used the net proceeds to pay down debt. |
Inventories, Net
Inventories, Net | 12 Months Ended |
Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories, Net | Note 6 — Inventories, Net Inventories consisted of the following: December 31, 2022 2021 Finished goods $ 585,656 $ 393,609 Raw materials 28,572 25,624 Work in process 19,132 24,062 Inventories, net $ 633,360 $ 443,295 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. For the year ended December 31, 2022, the $ 190.1 million increase in inventory was primarily due to an increase in seasonal purchases coming off low in stock levels in 2021, an increase in raw material and freight costs, and inventory purchases that assumed a higher sales volume in 2022. The comparison of inventory to the prior year is also impacted by a reserve for future disposals of $ 68.7 million recorded in 2021 for inventory that was deemed not to be sold in future seasons, and for which there was no comparable reserve recorded in 2022. See Note 2 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, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, Net | Note 7 — Property, Plant, and Equipment, Net Property, plant, and equipment, net consisted of the following: December 31, 2022 2021 Useful lives Machinery and equipment $ 239,386 $ 245,983 3 - 15 years Buildings 6,287 6,277 40 years Data processing equipment 136,906 131,989 3 - 5 years Leasehold improvements 235,115 203,503 1 - 10 years Furniture and fixtures 249,508 228,818 5 - 10 years Land 180 180 Property, plant, and equipment, gross 867,382 816,750 Less: accumulated depreciation ( 612,112 ) ( 594,880 ) Property, plant, and equipment, net $ 255,270 $ 221,870 Depreciation expense related to property, plant and equipment, including assets under finance leases, was $ 56.9 million, $ 56.2 million, and $ 65.1 million, for the years ended December 31, 2022, December 31, 2021, and December 31, 2020, respectively. Assets under finance leases are principally included in buildings and machinery and equipment in the table above. See Notes 3 and 5 for details regarding property, plant, and equipment impairments. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Note 8 — Intangible Assets Finite-Lived Intangible Assets: The Company has the following identifiable finite-lived intangible assets, the net carrying value of which is reported in other intangible assets, net in the Company’s consolidated balance sheets: December 31, 2022 Cost Accumulated Net Useful lives Franchise-related intangible assets $ 73,225 $ 62,936 $ 10,289 4 - 19 years Customer lists and relationships 22,437 19,436 3,001 2 - 20 years Copyrights and designs 29,030 29,016 14 5 - 7 years Other intangible assets, net $ 124,692 $ 111,388 $ 13,304 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 Other intangibles assets, net $ 161,166 $ 137,479 $ 23,687 The Company is amortizing its intangible assets on a straight-line basis over its estimate of the useful lives of the assets. The amortization expense for finite-lived intangible assets for the years ended December 31, 2022, December 31, 2021, and December 31, 2020 was $ 6.1 million, $ 9.1 million, and $ 11.4 million, respectively. Estimated amortization expense for finite-lived intangible assets for each of the next five years will be approximately $ 2.9 million, $ 2.5 million, $ 2.1 million, $ 1.8 million, and $ 1.6 million, respectively. In consideration of the Company’s contemplation of bankruptcy in the fourth quarter of 2022, it was concluded that certain customer relationship assets in the wholesale segment were impaired, and as a result, impairment charges on such assets of $ 4.9 million were recorded and are included within Goodwill and intangible asset impairments on the consolidated statements of operations and comprehensive (loss) income in the fourth quarter of 2022. In the third quarter of 2020, as a result of decreased customer demand for the Company’s products due to COVID-19, it was concluded that certain finite-lived intangible assets were impaired. As a result, an impairment charge of $ 2.4 million was recorded and is included within Goodwill and intangible asset impairments on the consolidated statements of operations and comprehensive (loss) income. Indefinite-Lived Intangible Assets (Trade Names): In addition to the Company’s finite-lived intangible assets, the Company has indefinite-lived intangible assets, most notably for the Party City and Amscan trade names. As of December 31, 2022 and 2021, the carrying values of the Company’s trade names were $ 94.7 million and $ 383.8 million, respectively. In the fourth quarter of 2022, impairment indicators were identified that suggested the carrying values of the Company’s trade names could exceed their fair values, as the management began to contemplate filing for Chapter 11 bankruptcy for the Company and certain of its subsidiaries. Subsequent to December 31, 2022, the Company and certain of its subsidiaries filed for bankruptcy under Chapter 11 on January 17, 2023. In light of these circumstances, the Company tested its indefinite-lived trade names for impairment as of December 31, 2022. To test for potential impairment of our trade names, we prepared an estimate of the trade names 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 royalty rates and discount rates. Based on this valuation, the Company re cognized non-cash pre-tax trade name impairment charges of $ 289.0 million in fourth quarter of 2022, which includes a $ 262.0 million impairment charge against the Party City trade name, and a full impairment of the Amscan trade name and a trade name related to ancillary business ($ 26.0 million and $ 0.9 million, respectively). These charges are included within Goodwill and intangible asset impairments on the consolidated statements of operations and comprehensive (loss) income. In the third and first quarters of 2020, the Company identified impairment indicators associated with the Company’s market capitalization and significantly reduced customer demand for its products due to COVID-19 and inevitably concluded that the fair value of certain of its trade names were lower than the related book values. As a result, impairment charges of $ 11.0 million and $ 135.2 million were recognized during the three months ended September 30, 2020 and March 31, 2020, respectively. These charges are included within Goodwill and intangible asset impairments on the consolidated statements of operations and comprehensive (loss) income. |
Current and Long-Term Debt Obli
Current and Long-Term Debt Obligations | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Current and Long-Term Debt Obligations | Note 9 — Current and Long-Term Debt Obligations Presentational Note Due to the fact that the Chapter 11 Cases occurred after the balance sheet date in this report, the accompanying consolidated financial statements as of and for the period ending December 31, 2022 have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The amount of indebtedness disclosed in this footnote has been prepared on this basis and do not reflect any adjustments to liabilities and assets that resulted from the Bankruptcy Court’s confirmation of our reorganization plan on October 12, 2023. On January 17, 2023, the Company and certain of its direct and indirect domestic subsidiaries, excluding the Anagram Entities and the Company’s foreign subsidiaries, filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code, in the United States Bankruptcy Court for the Southern District of Texas, Houston Division. The filing of the voluntary petitions triggered an event of default that accelerated the Company’ s following debt obligations: a) its 8.750 % senior secured first lien notes due 2026 (the “Fixed Rate Notes” ); b) its 6.125 % senior notes due 2023 ; c) its 6.625 % senior notes due 2026 , and d) its senior secured first lien floating rate notes due 2025 (the “Secured Floating Rate 2025 Notes” and, together with the Fixed Rate Notes, the “Secured Notes”). See Note 1 for a further discussion of the Chapter 11 Cases. On March 30, 2023, the Anagram Entities notified the agents and trustees under the documents governing its (a) asset-backed revolving credit facility (the “Anagram ABL Credit Agreement”), (b) 15.00 % senior secured first lien notes due 2025 (the “First Lien Anagram Notes Indenture”), and (c) 10.00 % senior secured second lien notes due 2026 (collectively with the First Lien Anagram Notes Indenture, the “Anagram Notes Indentures,” and collectively with the Anagram ABL Credit Agreement, the “Anagram Financing Agreements”) of certain defaults or potential defaults that existed or could exist (the “Specified Anagram Defaults”) as a result of, among other things, Anagram International, Inc. making certain tax-related advances to the Company from February 2021 to January 2023 that exceeded the limitations in the Anagram Financing Agreements. On April 4, 2023, the Anagram Entities and the agent under the Anagram ABL Credit Agreement entered into an agreement pursuant to which the required lenders under the Anagram ABL Credit Agreement and the agent waived the Specified Anagram Defaults retroactive to March 1, 2023, and the delivery of the Anagram Entities’ 2022 annual audited financial statements without qualification as to “going concern” or scope, and further amended the Anagram ABL Credit Agreement and the related security agreement. On April 21, 2023, the Anagram Entities obtained the Anagram Notes Waivers (as defined herein), with the Anagram Notes Waivers being subject to the Anagram Entities obtaining, by May 19, 2023, an agreement on a new contract with a supplier. Anagram did not enter into a new contract with the supplier prior to filing for bankruptcy on November 8, 2023. Concurrently, with the effectiveness of the Anagram Notes Waivers, the Anagram Entities entered into supplemental indentures pursuant to the Anagram Notes Indentures whereby, among other things, the Anagram Entities were required to make additional payments-in-kind to the holders of Anagram Notes in an amount equal to 0.5 % of aggregate principal outstanding and thereby increasing the principal amount of the Anagram Notes. On May 9, 2023, payments in-kind of $ 0.6 million and $ 0.5 million were made on the 15.00 % PIK/Cash Senior Secured First Lien Notes due 2025 (the “First Lien Anagram Notes” ) and the 10.00 % PIK/Cash Senior Secured Second Lien Notes due 2026 (the “Second Lien Anagram Notes”), respectively. On August 15, 2023, the Anagram Entities elected to not make the interest payment on the First Lien Anagram Notes. As provided in the indenture governing the First Lien Anagram Notes, the Anagram Entities entered the 30-day grace period to make the interest payment. The Anagram Entities did not make this interest payment within the grace period and did not make this interest payment prior to filing for Chapter 11 bankruptcy on November 8, 2023. For information regarding a subsequent event related to Anagram’s Chapter 11 Cases and the developments related to the Stalking Horse bid to acquire the Anagram Entities, see “Note 1 - Organization, Description of Business, and Basis of Presentation - Subsequent Event - Anagram Bankruptcy.” As a result of the Company’s bankruptcy declaration and the Specified Anagram Defaults, all of the Company’s long-term debt ($ 1.3 billion), with the exception of its finance lease obligations, has been classified as a current liability in the consolidated balance sheets as of December 31, 2022. Any efforts to enforce payment obligations on the Debtors’ debt agreements were automatically stayed as a result of the filing of the Chapter 11 Cases and the holders’ rights of enforcement in respect of the Debtors’ debt agreements are subject to the applicable provisions of the Bankruptcy Code. Pre-emergence Debt Prepetition ABL Facility In February 2021, in conjunction with the issuance of the Fixed Rate Notes, the Company amended its existing Prepetition ABL Facility by reducing the commitments from $ 640.0 million to $ 475.0 million 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 statements of operations and comprehensive (loss) income and included in Gain on debt repayment in the Company’s consolidated statements of cash flows. The remaining capitalized costs, and $ 2.4 million of new third-party costs incurred in conjunction with the amendment, were scheduled to be amortized over the revised term of the Prepetition ABL Facility. The Prepetition ABL Facility was amended twice in 2022. On March 18, 2022, the Prepetition ABL Facility was amended to modify certain eligibility criteria with respect to the inventory component of the borrowing base. The changes lengthen the permitted in-transit time for eligible in-transit inventory being shipped from a location outside of the United States, subject to a cap on the aggregate amount of foreign in-transit inventory that is eligible to be reflected in the borrowing base. On July 19, 2022, the Prepetition ABL Facility was further amended (the “July 2022 ABL Amendment”) to increase the aggregate commitments under the facility from $ 475.0 million to $ 562.1 million. The increase included the establishment of a new $ 17.1 million asset-based first-in, last-out revolving tranche (the “FILO Facility”). Commencing in March 2023, scheduled quarterly payments of the loans under the FILO Facility were required equal to 5.55 % of the original principal amount of the FILO Facility as in effect on the date of the July 2022 ABL Amendment (with a corresponding reduction to the aggregate commitments under the FILO Facility). The balance of the FILO Facility had the same final stated maturity date as the other loans under the Prepetition ABL Facility, which was originally scheduled to occur in February 2026 (subject to a springing maturity at an earlier date, under certain circumstances, if the maturity date of certain other debt of Holdings had not been extended or refinanced). The July 2022 ABL Amendment also replaced the London Interbank Offered Rate (“LIBOR”) as the interest rate benchmark under the Prepetition ABL Facility with the forward-looking term rate based on the Secured Overnight Financing Rate (as defined in the Prepetition ABL Facility), subject to a 0.10 % credit spread adjustment (“Adjusted Term SOFR”). Pursuant to the July 2022 ABL Amendment, outstanding loans under the Prepetition ABL Facility bore interest at a rate per annum equal to the applicable margin plus, at the borrowers’ option, either (a) an alternate base rate (“ABR”), which was the highest of (i) the Administrative Agent’s prime rate, (ii) the federal funds effective rate plus 0.50 %, and (iii) Adjusted Term SOFR for a one-month tenor plus 1.00 %, or (b) Adjusted Term SOFR for the applicable interest period. Other than with respect to borrowings under the FILO Facility, the rates for the applicable margin for borrowings under the Prepetition ABL Facility remained unchanged, ranging from 0.50 % to 0.75 % with respect to ABR borrowings and from 1.50 % to 1.75 % with respect to Adjusted Term SOFR borrowings. The applicable margin for borrowings under the FILO Facility was 1.75 % with respect to ABR borrowings and 2.75 % with respect to Adjusted Term SOFR borrowings. Lastly, the July 2022 ABL Amendment also modified certain other provisions of the Prepetition ABL Facility, including, among other things, to make certain changes to the excess availability trigger for the springing fixed charge coverage ratio covenant in connection with the commitment increase under the Prepetition ABL Facility. Pursuant to the ABL Amendment, Holdings was to comply with such financial covenant if excess availability under the Prepetition ABL Facility on any day was less than the greater of: (a) $ 46.0 million (increased from $ 40.0 million) and (b) 10 % of the Total Line Cap (as defined therein). The fixed charge coverage ratio was 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). Under the Prepetition ABL Facility, the borrowing base at any time equaled (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. In addition to paying interest on outstanding principal, the Company was required to pay a commitment fee of 0.25 % per annum in respect of unutilized commitments. The Company was to also pay customary letter of credit fees. All obligations under the Prepetition ABL Facility were jointly and severally guaranteed by PC Intermediate, Holdings, and each existing and future domestic subsidiary of Holdings. Holdings and each guarantor had 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 contained negative covenants that, among other things and subject to certain exceptions, restricted the ability of Holdings 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. The Prepetition ABL Facility also contained certain customary affirmative covenants and events of default. The filing of the Chapter 11 Cases discussed in Note 1 constitutes an event of default that accelerated the Company’s obligations under its Prepetition ABL Facility. Any efforts to enforce payment obligations on the Prepetition ABL Facility were automatically stayed as a result of the filing of the Chapter 11 Cases and the holders’ rights of enforcement in respect of the Debtors’ debt agreements are subject to the applicable provisions of the Bankruptcy Code. In connection with entering into and amending the Prepetition ABL Facility, the Company incurred and capitalized third-party costs. All capitalized costs were being amortized over the life of the Prepetition ABL Facility and netted against the outstanding borrowings within loans and notes payable in the Company’s consolidated balance sheets. The balance of related unamortized financing costs at December 31, 2022 and December 31, 2021 was $ 3.2 million and $ 2.9 million, respectively. As a result of the Chapter 11 Cases, the Company wrote off the remaining $ 3.1 million of unamortized financing costs upon filing of the Chapter 11 Cases in the first quarter of 2023. Outstanding borrowings under the Prepetition ABL Facility totaled $ 361.7 million at December 31, 2022 and $ 87.1 million at December 31, 2021. The weighted average interest rate for such borrowings was 6.85 % at December 31, 2022 and 2.64 % at December 31, 2021. Outstanding standby letters of credit totaled $ 37.9 million at December 31, 2022 and $ 24.9 million at December 31, 2021. After considering borrowing base restrictions, at December 31, 2022 , Holdings had $ 75.4 million of available borrowing capacity under the terms of the facility and $ 192.4 million at December 31, 2021. Availability as of December 31, 2022 was based upon the borrowing base then in effect of $ 475.0 million, less $ 37.9 million of outstanding undrawn letters of credit and $ 361.7 million then drawn. As a result of the Chapter 11 Cases, the remaining capacity under the ABL was terminated on January 17, 2023. As of the Effective Date of the Plan, Prepetition ABL Facility borrowings of $ 368.2 million were deemed repaid and refinanced in full by the New ABL Facility discussed below. Anagram ABL Credit Agreement On May 7, 2021, Anagram entered into the Anagram ABL Credit Agreement, which provided for a $ 15 million asset based revolving credit facility scheduled to mature in May 2024 . It provided for (a) revolving loans, subject to a borrowing base described below, and (b) under the Anagram ABL Credit Agreement, 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 $ 3.0 million cap. Under the Anagram ABL Credit Agreement and through April 3, 2023, the borrowing base at any time equaled (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. Through April 3, 2023, the Anagram ABL Credit Agreement generally provided for the following pricing options: All revolving loans would bear interest, at Anagram’s election, at a per annum rate equal to either (a) a base rate, which represented for any day a rate equal to the greater of (i) the prime rate on such day subject to a 0 % floor, (ii) the federal funds rate plus 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 was required to pay a commitment fee of 0.5 % to 1 % per annum in respect of unutilized commitments. Anagram was required to also pay customary letter of credit fees. All obligations under the Anagram ABL Credit Agreement were jointly and severally guaranteed by Anagram and its subsidiaries. The Anagram ABL Credit Agreement contained covenants and events of default customary for such credit facilities. In connection with entering into the Anagram ABL Credit Agreement, the Company incurred and capitalized third-party costs. All capitalized costs were being amortized over the life of the Anagram ABL Credit Agreement and netted against the outstanding borrowings within loans and notes payable in the Company’s consolidated balance sheets. As of December 31, 2022, the balance of unamortized financing costs related to the Anagram ABL Credit Agreement was $ 0.8 million. As of December 31, 2022, outstanding borrowings under the Anagram ABL Credit Agreement totaled $ 3.0 million and there was $ 11.4 million of availability under this facility. There were no amounts outstanding under the Anagram ABL Credit Agreement as of December 31, 2021. As discussed earlier in this footnote, on or around March 23, 2023, the Company and the Anagram Entities became aware of the Specified Anagram Defaults under the Anagram ABL Credit Agreement, as a result of, among other things, distributions of tax-related amounts from February 2021 to January 2023 that exceeded the limitations in the Anagram Financing Agreements and in respect of the Anagram ABL Credit Agreement, certain other relief provided by the lenders thereunder. On or around March 30, 2023, the Anagram Entities notified the agent under the Anagram ABL Credit Agreement of the Specified Anagram Defaults by delivery of applicable notices of default. On or around April 4, 2023, the Anagram Issuers and the agent under the Anagram ABL Credit Agreement entered into an agreement pursuant to which the required lenders thereunder waived the Specified Anagram Defaults defined therein, and any potential qualification as to “going concern” or scope in respect of the Anagram Entities’ 2022 annual audited financial statements, and certain other amendments. Also on April 4, 2023, the parties to the Anagram ABL Credit Agreement amended the Anagram ABL Credit Agreement to implement the benchmark transition thereunder from LIBOR to SOFR. For information regarding a subsequent event related to Anagram’s Chapter 11 Cases and the developments related to the Stalking Horse bid to acquire the Anagram Entities, see “Note 1 - Organization, Description of Business, and Basis of Presentation - Subsequent Event - Anagram Bankruptcy.” Long-Term Obligations Long-term obligations at December 31, 2022 and December 31, 2021 consisted of the following: December 31, 2022 December 31, 2021 Principal Amount Gross Carrying Amount Deferred Financing Costs* Net Carrying Amount Net Carrying 8.75 % Senior Secured First Lien Notes – due 2026 $ 750,000 $ 750,000 $ ( 13,494 ) $ 736,506 $ 732,957 6.125 % Senior Notes — due 2023 22,924 22,924 ( 35 ) 22,889 22,834 6.625 % Senior Notes — due 2026 92,254 92,254 ( 519 ) 91,735 91,591 First Lien Party City Notes – due 2025 161,669 188,842 — 188,842 198,004 First Lien Anagram Notes – due 2025 121,666 148,446 ( 1,574 ) 146,872 149,569 Second Lien Anagram Notes – due 2026 98,293 144,529 ( 824 ) 143,705 144,619 Finance lease obligations 11,588 11,588 — 11,588 12,988 Total long-term obligations 1,258,394 1,358,583 ( 16,446 ) 1,342,137 1,352,562 Less: current portion ( 1,247,260 ) ( 1,347,449 ) 16,446 ( 1,331,003 ) ( 1,373 ) Long-term obligations, excluding current portion $ 11,134 $ 11,134 $ — $ 11,134 $ 1,351,189 * The Company incurred and capitalized third-party costs as deferred financing, which were being amortized over the life of the debt. 8.75% Senior Secured First Lien Notes – due 2026 (the “Fixed Rate Notes”) I n February 2021, Holdings issued $ 750 million of senior secured first lien notes at an interest rate of 8.750 %. The Fixed Rate Notes were contractually scheduled to mature in February 2026 . The Company used the proceeds from the Fixed Rate Notes to prepay the outstanding balance of $ 694.2 million under its existing Term Loan Credit Agreement, and the prepayment was made 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 $ 19 million of third-party fees, principally banker fees. The amounts expensed were recorded in Other expense, net in the Company’s consolidated statements of operations and comprehensive (loss) income and included in Gain on debt repayment in the Company’s consolidated statements of cash flows. As a result of the Chapter 11 Cases, the Company wrote off the remaining $ 13.3 million of unamortized financing costs, original issue discount, and call premium in the first quarter of 2023 to Reorganization items, net. Interest on the Fixed Rate Notes was payable semi-annually in arrears on February 15th and August 15th of each year. The Fixed Rate Notes were guaranteed, jointly and severally, on a senior secured basis by each of Holdings’ existing and future domestic subsidiaries. The Fixed Rate Notes and related guarantees were secured by a first priority lien on substantially all assets of Holdings and the guarantors, except for the collateral that secures the senior credit facilities on a first lien basis, with respect to which the Fixed Rate Notes and related guarantees would have been secured by a second priority lien, in each case subject to permitted liens and certain exclusions and release provisions. The indenture that governed the Fixed Rate Notes contained covenants that, among other things, limited Holdings’ 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 that governed the notes also contained certain customary affirmative covenants and events of default. As of the Effective Date of the Plan, the entire outstanding principal balance of $ 750 million of the Fixed Rates Notes was cancelled, and the duties and obligations of all parties thereto were deemed satisfied in full, canceled, released, discharged, and of no force or effect. Each holder of an Allowed Secured Notes Claim received (i) its Pro Rata (as defined in the Plan) share of the New PCHI Shares issued on the Effective Date on account of the Allowed Secured Notes Claims, representing 100 % of the New PCHI Shares outstanding on the Effective Date, subject to dilution by the New PCHI Shares issued as DIP Reorganized Securities (as defined in the Plan), the New PCHI Shares issued in connection with the Rights Offering (including in partial satisfaction of the Backstop Commitment Premium), and the MIP Equity Pool and (ii) subscription rights to purchase up to its Pro Rata (as defined in the Plan) share of the securities comprising the Investment Package (as defined in the Plan) for an aggregate purchase price of $ 75 million offered in the Rights Offering in accordance with the Rights Offering Procedures (as defined in the Plan). 6.125% Senior Notes — Due 2023 (“6.125% Senior Notes”) The 6.125 % Senior Notes were contractually scheduled to mature on August 15, 2023 . Interest on the notes was payable semi-annually in arrears on February 15 and August 15 of each year. The notes were guaranteed, jointly and severally, on a senior basis by each of Holdings’ existing and future wholly-owned domestic subsidiaries. The notes and the guarantees were general unsecured senior obligations and were effectively subordinated to all other secured debt to the extent of the assets securing such secured debt. The indenture that governed the notes contained certain covenants that limited, among other things and subject to certain exceptions, Holdings’ 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 Holdings’ assets; • create liens; and • transfer or sell certain assets. The indenture that governed the notes also contained certain customary affirmative covenants and events of default. The Company had the ability to redeem the notes, in whole or in part, at par. In connection with issuing the notes, the Company incurred and capitalized third-party costs. Capitalized costs were being amortized over the life of the debt and were included in current portion of long-term obligations in the Company’s consolidated balance sheets. As a result of the Chapter 11 Cases, the Company wrote off the remaining unamortized financing costs of less than $ 100 thousand in the first quarter of 2023. As of the Effective Date of the Plan, the entire outstanding principal balance of the 6.125 % Senior Notes of $ 22.9 million was cancelled and the duties and obligations of all parties thereto were deemed satisfied in full, canceled, released, discharged, and of no force or effect. Holders of the 6.125 % Senior Notes will receive a pro rata share of the general unsecured claim pool as per the General Unsecured Claims protocols set forth in the Plan. 6.625% Senior Notes — Due 2026 (“6.625% Senior Notes”) The 6.625 % Senior Notes were contractually scheduled to mature on August 1, 2026 . Interest on the notes was payable semi-annually in arrears on February 1st and August 1st of each year. The notes were guaranteed, jointly and severally, on a senior basis by each of Holdings’ existing and future wholly-owned domestic subsidiaries. The notes and the guarantees were general unsecured senior obligations and were effectively subordinated to all other secured debt to the extent of the assets securing such secured debt. The indenture that governed the notes contained certain covenants limiting, among other things and subject to certain exceptions, Holdings’ 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 Holdings’ assets; • create liens; and • transfer or sell certain assets. The indenture that governed the notes also contained certain customary affirmative covenants and events of default . In connection with issuing the notes, the Company incurred and capitalized third-party costs. Capitalized costs were being amortized over the life of the debt and were included in current portion of long-term obligations in the Company’s consolidated balance sheets. As a result of the Chapter 11 Cases, the Company wrote off the remaining $ 0.5 million of unamortized financing costs in the first quarter of 2023. As of the Effective Date of the Plan, the entire outstanding principal balance of the 6.625 % Senior Notes of $ 92.3 million was cancelled and the duties and obligations of all parties thereto were deemed satisfied in full, canceled, released, discharged, and of no force or effect. Holders of the 6.625 % Senior Notes will receive a pro rata share of the general unsecured claim pool as per the General Unsecured Claims protocols set forth in the Plan. 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 Holdings, Anagram Holdings, LLC, a Delaware limited liability company and wholly owned direct subsidiary of Holdings (“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 $ 327.1 million of 6.125 % Senior Notes contractually due 2023 (the “2023 Notes”) and $ 392.7 million of 6.625 % Senior Notes contractually due 2026 (the “2026 Notes” and, together with the 2023 Notes, the “Existing Notes”) issued by Holdings, in each case tendered in the Company’s offers to exchange pursuant to the terms described in a confidential offering memorandum, for (A) $ 156.7 million of Secured First Lien Floating Rate Notes contractually due 2025 (the “First Lien Party City Notes”) issued by Holdings; (B) $ 84.7 million 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 million 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 million 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 Holdings, 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 $ 161.7 million and were scheduled to contractually mature on July 15, 2025 . Interest on the First Lien Party City Notes accrued from the Settlement Date at a floating rate equal to the 6-month LIBOR 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 were senior secured obligations of Holdings and the Party City Guarantors. The First Lien Party City Notes were pari passu in right of payment with all of Holdings’ other senior indebtedness, including the existing senior secured term loan facility and the Prepetition ABL Facility, and were 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 were secured by a first priority lien on collateral that included 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. In the first quarter of 2023, we recorded a credit adjustment of $ 27.2 million to Reorganization items, net, to reduce the carrying amount of the First Lien Party City Notes to the notes ’ allowed claim amount. As of the Effective Date of the Plan, the entire outstanding principal balance of the First Lien Party City Notes of $ 161.7 million was cancelled, and the duties and obligations of all parties thereto were deemed satisfied in full, canceled, released, discharged, and of no force or effect. Each holder of an Allowed Secured Notes Claim received (i) its Pro Rata (as defined in the Plan) share of the New PCHI Shares issued on the Effective Date on account of the Allowed Secured Notes Claims, representing 100 % of the New PCHI Shares outstanding on the Effective Date, subject to dilution by the New PCHI Shares issued as DIP Reorganized Securities (as defined in the Plan), the New PCHI Shares issued in connection with the Rights Offering (including in partial satisfaction of the Backstop Commitment Premium), and the MIP Equity Pool and (ii) subscription rights to purchase up to its Pro Rata (as defined in the Plan) share of the securities comprising the Investment Package (as defined in the Plan) for an aggregate purchase price of $ 75 million offered in the Rights Offering in accordance with the Rights Offering Procedures (as defined in the Plan). 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 million and were scheduled to mature on August 15, 2025 . Interest on the First Lien Anagram Notes accrued 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 were senior secured obligations of the Anagram Issuers and were pari passu in right of payment with all of the Anagram Issuers’ other senior indebtedness. The First Lien Anagram Notes were secu |
Capital Stock
Capital Stock | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Capital Stock | Note 10 — Capital Stock At December 31, 2022, the Company’s authorized capital stock consisted of 300,000,000 shares of $ 0.01 par value common stock and 15,000,000 shares of $ 0.01 par value preferred stock. The changes in common shares outstanding during the three years ended December 31, 2020, December 31, 2021, and December 31, 2022 were as follows: Common Shares Outstanding at December 31, 2019 94,461,576 Issuance of stock as part of debt refinancing 15,942,551 Vesting 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 Vesting 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 Vesting of shares to directors 139,154 Treasury stock purchases ( 1,291,315 ) Vesting of restricted stock and restricted stock units 2,499,213 Cancellation of restricted stock awards ( 8,773 ) Common Shares Outstanding at December 31, 2022 113,509,223 During the year ended December 31, 2022 , the Company purchased 1,291,315 treasury shares for $ 2.4 million 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, 2021 , the Company purchased 706,458 treasury shares for $ 5.4 million 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, 2020, the Company purchased 21,685 treasury shares for $ 0.1 million 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 sheets. |
Other (Income) Expense, Net
Other (Income) Expense, Net | 12 Months Ended |
Dec. 31, 2022 | |
Other Income and Expenses [Abstract] | |
Other (Income) Expense, Net | Note 11 — Other (Income) Expense, Net Other (income) expense, net consists of the following: Year ended December 31, 2022 2021 2020 Undistributed (income) loss in equity method investments $ ( 1,467 ) $ ( 220 ) $ 333 Foreign currency gain ( 1,962 ) ( 953 ) ( 1,058 ) Corporate development expenses — 561 2,185 (Gain) loss on sale of assets ( 157 ) 143 95 Other, net ( 203 ) ( 145 ) 2,160 * Other (income) expense, net $ ( 3,789 ) $ ( 614 ) $ 3,715 *2020 balance consists of expense related to Kazzam (see Note 21) and fees from international operations owned in 2020 (see Note 5). |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2022 | |
Postemployment Benefits [Abstract] | |
Employee Benefit Plans | Note 12 — Employee Benefit Plans Prior to December 2021, certain subsidiaries of the Company maintained defined contribution plans for eligible employees. Beginning December 2021, the Company consolidated all subsidiary defined contribution plans for eligible employees into one Company plan (the “Party City Holdings Inc. 401(k) Plan” or “Plan”), which qualifies under Section 401(k) of the Internal Revenue Code of 1986. The Plan is employee funded up to an elective annual deferral amount and also provides for Company matching contributions up to a certain percentage of the employee’ s salary. The Company matches 100 % of the first 3 % of eligible employee contributions and 50 % of the next 2 % of eligible employee contributions, and the Company match contributions vest immediately. Expense for the plans for the years ended December 31, 2022, December 31, 2021, and December 31, 2020 totaled $ 8.2 million, $ 9.5 million and $ 8.6 million, respectively. |
Equity Incentive Plans
Equity Incentive Plans | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Equity Incentive Plans | Note 13 — 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 time-based options, the Company recorded compensation expense of $ 0.2 , million $ 0.4 million, and $ 0.8 million during the years ended December 31, 2022, December 31, 2021, and December 31, 2020, respectively. There were no time-based options granted during the year ended December 31, 2022. 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-line basis. As of December 31, 2022, there was $ 0.1 million of unrecognized compensation cost, which will be recognized over a weighted-average period of approximately 9 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 $ 7.8 million for the year ended December 31, 2020 related to the performance-based options as per the accounting requirements for awards with market and performance conditions under ASC 718, "Compensation - Stock Compensation". 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, 2022. Options Average Aggregate Weighted Outstanding at December 31, 2021 1,032,219 $ 10.18 $ ( 4,754 ) 4.5 Granted — $ - Exercised — $ - Forfeited ( 146,357 ) $ 8.52 Outstanding at December 31, 2022 885,862 $ 10.45 $ - 3.9 Exercisable at December 31, 2022 851,582 $ 10.37 $ - 3.9 Expected to vest at December 31, 2022 (excluding performance-based options) 34,280 $ 12.43 $ - 5.7 The intrinsic value of options exercised was $ 1.3 million and $ 0.3 million for the years ended December 31, 2021 and December 31, 2020 , respectively. The Company received cash proceeds of $ 3.7 million and $ 0.1 million from stock option exercises during the years ended December 31, 2021 and 2020, respectively. There were no stock option exercises in 2022. 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 generally vest 1/3 per year over a 3-year period. In 2022, 2021, and 2020 2,602,529 , 1,361,289 , and 614,939 units were awarded, respectively. During the years ended December 31, 2022, 2021, and 2020, the Company recorded $ 5.2 million, $ 2.6 million, and $ 2.1 million of compensation expense related to the service-based awards, respectively. 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, 2022 there was $ 8.0 million of unrecognized compensation cost for the service-based awards, which will be recognized over a weighted-average period of approximately 1.8 years. Performance-based restricted stock units (PRSUs) On July 18, 2020, 6,448,276 performance-based restricted stock units ( “PRSUs” ) and Restricted Cash awards with market conditions 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 York Stock Exchange and are subject to up to a two-year vesting period 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 2.99 % Volatility 106.31 % to 140.02 % Weighted average grant date fair value $ 1.02 In 2022, the Company granted 1,443,692 of PRSUs that vest 1/3 per year over a 3-year period only if certain annual and cumulative cash flow and earnings per share targets are met. For the year ended December 31, 2022, no expense was recognized for these awards because management does not expect the Company to achieve the minimum performance target thresholds required. During the years ended December 31, 2022, 2021, and 2020, the Company recorded $ 1.3 million, $ 3.8 million, and $ 1.5 million of compensation expense, respectively, related to the grants of PRSUs and Restricted Cash awards made in 2020. At December 31, 2022, there was $ 0.3 million of total unrecognized compensation cost related to these awards, which is expected to be recognized over 0.7 years. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 14 — Income Taxes As outlined in Note 9 - Current and Long-Term Debt 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 $ 552.7 million, of which $ 501.0 million 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 $ 217.5 million ($ 47.7 million, tax effected), with the balance of $ 283.5 million ($ 59.5 million, tax effected), treated as a permanent difference. The Company also has reduced its net operating loss carryforward by $ 0.5 million and its foreign tax credit carryforward by $ 4.1 million. The following table summarizes domestic and foreign (loss) income before income taxes for the years ended December 31, 2022, 2021, and 2020 (in thousands of dollars): Year Ended December 31, 2022 2021 2020 Domestic $ ( 963,137 ) $ 193 $ ( 542,046 ) Foreign 4,013 ( 1,067 ) ( 143,064 ) Loss before income taxes $ ( 959,124 ) $ ( 874 ) $ ( 685,110 ) Income tax (benefit) expense for the years ended December 31, 2022, 2021, and 2020 consisted of the following (in thousands of dollars): Year Ended December 31, 2022 2021 2020 Current: Federal $ 2,032 $ 9,491 $ ( 61,528 ) State 864 911 ( 1,639 ) Foreign 203 461 1,599 Total current income tax expense (benefit) 3,099 10,863 ( 61,568 ) Deferred: Federal ( 18,888 ) ( 6,707 ) ( 70,440 ) State ( 443 ) 1,356 ( 19,252 ) Foreign ( 262 ) 196 ( 5,393 ) Total deferred income tax benefit ( 19,593 ) ( 5,155 ) ( 95,085 ) Income tax (benefit) expense $ ( 16,494 ) $ 5,708 $ ( 156,653 ) 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 as of December 31, 2022 and 2021 consisted of the following (in thousands of dollars): December 31, 2022 2021 Deferred income tax assets: Inventory reserves and capitalization $ 13,914 $ 20,007 Allowance for doubtful accounts 2,246 1,884 Accrued liabilities 9,863 9,624 Equity-based compensation 4,456 4,316 Federal tax loss carryforwards 6,560 — State tax loss carryforwards 13,486 8,433 Foreign tax loss carryforwards 1,487 2,586 Debt exchange basis difference 34,788 47,853 Section 163(j) Interest Limitation 53,455 18,126 Lease liabilities 213,445 198,332 Amortization of goodwill and other assets 11,893 — Capitalized refinancing and other costs 2,662 4,692 Other 2,326 3,129 Deferred income tax assets before valuation allowances 370,581 318,982 Less: valuation allowances ( 120,417 ) ( 12,608 ) Deferred income tax assets, net $ 250,164 $ 306,374 Deferred income tax liabilities: Depreciation $ 49,048 $ 42,548 Trade name 24,507 99,039 Amortization of goodwill and other assets — 13,065 Foreign earnings expected to be repatriated 933 969 Lease right of use assets 182,487 175,942 Other 2,317 4,006 Deferred income tax liabilities $ 259,292 $ 335,569 Net deferred income tax liabilities $ 9,128 $ 29,195 The Company nets all of its deferred income tax assets and liabilities on a jurisdictional basis and classifies them as noncurrent on the consolidated balance sheets. As of December 31, 2022 and 2021, net deferred income tax liabilities were reported as $ 9.1 million and $ 29.2 million, respectively, in the consolidated balance sheets. Management assesses the available positive and negative evidence to estimate if sufficient taxable income will be generated to realize existing deferred tax assets. A significant piece of objective negative evidence evaluated was the cumulative loss incurred over the three-year period ended December 31, 2022. We perform scheduling exercises to determine if sufficient taxable income of the appropriate character exists in the periods required in order to realize our deferred tax assets with limited lives prior to their expiration. On the basis of this evaluation, a valuation allowance of $ 120.4 million, primarily due to additions of $ 108.9 million, was recorded as of December 31, 2022 to reduce the total deferred tax assets to an amount that will, more-likely-than-not, be realized in the future. As of December 31, 2022, the Company had tax effected federal net operating losses of $ 6.6 million that may be carried forward indefinitely, and foreign tax-effected net operating loss carryforwards in Mexico of $ 1.5 million, which begin to expire in 2024. In addition, the U.S. state net operating loss carryforwards begin to expire in 2023 , 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 for the years ended December 31, 2022, 2021, and 2020 is as follows: Year ended December 31, 2022 2021 2020 Tax provision at U.S. statutory income tax rate 21.0 % 21.0 % 21.0 % State income tax, net of federal income tax ( 0.1 ) ( 205.0 ) 2.4 Valuation allowances ( 8.5 ) 23.1 ( 2.7 ) GILTI and foreign-derived intangible income ( 0.1 ) 83.8 — Foreign earnings — ( 37.5 ) 1.3 U.S. — foreign rate differential — ( 35.3 ) 0.4 CARES Act: 5-year NOL carryback — — 2.9 Debt exchange – cancellation of debt — — 8.7 Goodwill impairment ( 10.3 ) — ( 10.3 ) Uncertain tax positions ( 0.1 ) ( 560.2 ) ( 1.4 ) Other ( 0.2 ) 57.0 0.6 Effective income tax rate 1.7 % ( 653.1 ) % 22.9 % 2022 Tax Rate : The effective income tax rate of 1.7 % is different from the statutory rate of 21 %, primarily due to the impact of non-cash goodwill impairment charges and the increase of the valuation allowance against our deferred tax assets. 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 income tax rate benefit above. Cancellation of Debt : As discussed 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. $ 59.5 million of the cancellation of debt income was excluded from income, which resulted in a tax benefit of 8.7 % on the effective income tax rate. Goodwill Impairment: During 2022 and 2020, the Company recognized non-cash goodwill impairment charges totaling $ 568.6 million and $ 401.4 million, respectively. No tax benefit was recognized on $ 468.8 million and $ 336.2 million of the 2022 and 2020 charges, respectively, resulting in unfavorable impacts to the income tax rate of 10.3 % and 10.3 % for the years ended December 31, 2022 and 2020, 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 $ 1.0 million 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, 2022, $ 4.2 million of the Transition Tax remains unpaid and is recorded in “Other long-term liabilities” in the Company’s consolidated balance sheets. 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 for the years ended December 31, 2022, 2021, and 2020 (in thousands of dollars): Year ended December 31, 2022 2021 2020 Balance at beginning of year $ 15,021 $ 13,890 $ 4,891 Increases related to current period tax positions 485 3,759 8,186 Increases related to prior period tax positions 735 3,885 1,061 Decreases related to settlements ( 1,675 ) ( 6,245 ) — Decreases related to lapsing of statutes of limitations — ( 268 ) ( 248 ) Balance at end of year $ 14,566 $ 15,021 $ 13,890 The Company’s total unrecognized tax benefits that, if recognized, would impact the Company’s effective income tax rate are $ 11.1 million and $ 11.6 million at December 31, 2022 and 2021, respectively. The Company recognizes accrued interest and penalties related to unrecognized tax benefits in income tax expense. The Company has accrued $ 0.8 million and $ 0.5 million for the potential payment of interest and penalties at December 31, 2022 and 2021, respectively. Such amounts are not included in the table above. Tax years 2019 – 2022 are open for examination for U.S. federal income tax purposes, and the IRS is currently examining the 2021 Tentative Refund Claim filed by the Company . For U.S. state income tax purposes, tax years 2018-2022 generally remain open; for non-U.S. income tax purposes, tax years 2018-2022 generally remain open. |
Commitments, Contingencies and
Commitments, Contingencies and Related Party Transactions | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Contingencies and Related Party Transactions | Note 15 — 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, 2022, the Company’s commitment to pay future minimum product royalties was as follows: Future Minimum 2023 $ 15,692 2024 6,405 2025 1,010 Thereafter — $ 23,107 Product royalty expense for the years ended December 31, 2022, December 31, 2021, and December 31, 2020 was $ 36.9 million, $ 33.1 million, and $ 33.3 million, 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 years ended December 31, 2022 and 2021, the Company purchased inventory of $ 82.2 million and $ 59.5 million, respectively, from one of its equity method investees. As of December 31, 2022 and 2021, approximately $ 16.1 million and $ 30.4 million of these purchases are reflected in finished goods inventory, respectively. As of December 31, 2022 and 2021, the Company had accounts payable of $ 17.1 million and $ 18.3 million, respectively, related to such transactions. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment Information | Note 16 — 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, 2022, December 31, 2021, and December 31, 2020 are as follows: Wholesale Retail Consolidated Year ended December 31, 2022 Net sales before eliminations $ 1,182,917 $ 1,775,626 $ 2,958,543 Eliminations ( 788,665 ) — ( 788,665 ) Total revenues $ 394,252 $ 1,775,626 $ 2,169,878 Loss from operations $ ( 405,989 ) $ ( 454,277 ) $ ( 860,266 ) Interest expense, net 102,647 Other income, net ( 3,789 ) Loss before income taxes $ ( 959,124 ) Depreciation and amortization $ 19,160 $ 43,871 $ 63,031 Capital expenditures $ ( 15,457 ) $ ( 82,082 ) $ ( 97,539 ) Total assets $ 1,137,772 $ 882,225 $ 2,019,997 For the year ended December 31, 2022, one customer accounted for approximately 12 % of total wholesale segment revenues. 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) income from operations $ ( 28,492 ) $ 113,124 $ 84,632 Interest expense, net 87,226 Other income, 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 ) Loss 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 Geographic Regions Export sales of metallic balloons of $ 38.0 million, $ 55.8 million, and $ 19.8 million during the years ended December 31, 2022, December 31, 2021, and December 31, 2020, respectively, are included in domestic sales to unaffiliated customers below. Intercompany sales between geographic areas primarily consist of sales of finished goods and are generally made at cost plus a share of operating profit. The Company’s geographic area data is as follows: Domestic Foreign Eliminations Consolidated Year ended December 31, 2022 Revenues: Net sales to unaffiliated customers $ 2,109,888 $ 59,990 $ — $ 2,169,878 Net sales between geographic areas 12,007 4,930 ( 16,937 ) — Total revenues $ 2,121,895 $ 64,920 $ ( 16,937 ) $ 2,169,878 (Loss) income from operations $ ( 862,219 ) $ 1,954 $ — $ ( 860,266 ) Interest expense, net 102,647 Other income, net ( 3,789 ) Loss before income taxes $ ( 959,124 ) Depreciation and amortization $ 61,587 $ 1,444 $ 63,031 Total long-lived assets (excluding goodwill, $ 266,830 $ 5,271 $ 272,101 Total assets $ 1,961,675 $ 58,322 $ — $ 2,019,997 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 Income (loss) from operations $ 86,095 $ ( 1,463 ) $ — $ 84,632 Interest expense, net 87,226 Other income, net ( 1,720 ) Loss before income taxes $ ( 874 ) Depreciation and amortization $ 63,755 $ 1,855 $ 65,610 Total long-lived assets (excluding goodwill, $ 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 (Loss) income from operations $ ( 644,338 ) $ 14,189 $ ( 247,352 ) $ ( 877,501 ) Interest expense, net 77,043 Other income, net ( 269,434 ) Loss before income taxes $ ( 685,110 ) Depreciation and amortization $ 70,586 $ 5,920 $ 76,506 Total long-lived assets (excluding goodwill, $ 103,885 $ 24,746 $ 128,631 Total assets $ 2,518,490 $ 287,965 $ — $ 2,806,455 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases | Note 17 — Leases In February 2016, the FASB issued ASU 2016-02, “Leases” (“ASU 2016-02”, which requires that companies recognize assets and liabilities for the rights and obligations created by the companies’ leases and was effective for the Company during the first quarter of 2019. Upon adoption of ASU 2016-02, the Company elected the following practical expedients to be applied consistently to all leases: 1. The Company did not reassess whether any expired or existing contracts are or contain leases. 2. The Company did not reassess the lease classification for any expired or existing leases. 3. The Company did not reassess initial direct costs for any existing leases. Under ASU 2016-02, 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 ASU 2016-02, 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 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 made this election for all classes of underlying assets. Further, ASU 2016-02 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 sheets. 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 sheets. 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 renewal 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 uses its incremental borrowing rate as the discount 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. Presentational Note Due to the fact that the Chapter 11 Cases occurred after the balance sheet date in this report, the accompanying consolidated financial statements as of and for the period ending December 31, 2022 have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The amount of lease obligations disclosed in this footnote have been prepared on this basis and do not reflect any adjustments to liabilities and assets that resulted from the Bankruptcy Court’s confirmation of our reorganization plan on October 12, 2023. As part of its bankruptcy reorganization plan, the Company restructured the remaining term and economics of certain retail and non-retail properties within its lease portfolio, including permanent abandonment of certain leases. In particular, for its retail leases, management attempted to tailor such negotiations to a particular store’s current and future performance, location, and size to ensure economic stability and reduce future performance risk. In addition, on March 28, 2023, the Company executed an amendment to its Naperville, IL (“Naperville”) facility lease as part of a plan to consolidate its party goods distribution activities into its Chester, NY (“Chester”) facility. This amendment became effective upon our emergence from bankruptcy on October 12, 2023, and the Company exited its e-commerce distribution facility in Naperville at the end of 2023, with the Chester facility assuming e-commerce distribution activities. Ultimately, the actions discussed above resulted in the abandonment of 68 unexpired store leases, as well as the renegotiation of a substantial portion of the Company’s remaining lease portfolio. Quantitative Disclosures During the years ended December 31, 2022, 2021, and 2020, the Company’s operating lease cost was $ 175.7 million, $ 181.6 million, and $ 189.9 million, respectively. Such amounts exclude any impairment charges recorded. The Company’s variable lease cost during the years ended December 31, 2022, 2021, and 2020 were $ 27.6 million, $ 27.1 million, and $ 27.4 million, respectively. During the years ended December 31, 2022, 2021, and 2020 cash paid for amounts included in the measurement of operating lease liabilities was $ 163.3 million, $ 223.9 million, and $ 140.7 million, respectively. During the years ended December 31, 2022, 2021, and 2020 right-of-use assets obtained in exchange for new operating lease liabilities were $ 144.8 million, $ 101.7 million and $ 70.5 million, respectively. As of December 31, 2022 and 2021 , the weighted-average remaining lease term for operating leases was 8 years and 5 years, respectively, and the weighted-average discount rate for operating leases was 9.70 % and 8.6 %, respectively. Set forth below is a summary of our contractual lease obligations as of December 31, 2022 (in thousands of dollars). As discussed above, a s part of its bankruptcy reorganization plan, the Company restructured the remaining term and economics of certain retail and non-retail properties within its lease portfolio, including permanent abandonment of certain leases, in 2023. The obligations set forth in the table below reflect our lease contracts as of December 31, 2022 and do not reflect the impact of the lease restructurings and abandonments executed in 2023. Future Minimum 2023 $ 194,180 2024 169,205 2025 165,829 2026 132,144 2027 106,834 Thereafter 414,668 Total undiscounted cash flows 1,182,860 Less: Interest ( 378,135 ) Total operating lease liability 804,725 Less: Current portion of operating lease liability ( 119,605 ) Long-term portion of operating lease liability $ 685,120 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 18 — Fair Value Measurements The provisions of ASC Topic 820, “Fair Value Measurement”, define fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. ASC Topic 820 established a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: • Level 1 — Quoted prices in active markets for identical assets or liabilities. • Level 2 — Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. • Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. The majority of the Company’s non-financial instruments, which include goodwill, intangible assets, 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 Notes 3, 4, and 8 for further details on impairments recorded on goodwill, intangible assets, and other long-lived assets. 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, 2022 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, 2022 are as follows: Gross Carrying Amount Fair Value 8.75% Senior Secured First Lien Notes – due 2026 $ 750,000 $ 213,750 6.125% Senior Notes — due 2023 22,924 1,146 6.625% Senior Notes — due 2026 92,254 3,133 First Lien Party City Notes – due 2025 188,842 50,778 First Lien Anagram Notes – due 2025 148,446 141,165 Second Lien Anagram Notes – due 2026 144,529 95,096 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, 2022 based on the discounted future cash flows of each instrument at rates currently offered for similar debt instruments of comparable maturity. |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Income (Loss) | Note 19 — Changes in Accumulated Other Comprehensive Income (Loss) The changes in accumulated other comprehensive income (loss) consisted of the following: Foreign Currency Adjustments Impact of Foreign Exchange Contracts, Net of Taxes Total, Net of Taxes Balance at December 31, 2021 $ 3,541 $ — $ 3,541 Other comprehensive loss, net of tax ( 1,686 ) — ( 1,686 ) Balance at December 31, 2022 $ 1,855 $ — $ 1,855 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 before ( 1,784 ) 77 ( 1,707 ) Release of cumulative foreign currency translation 36,589 ( 1,422 ) 35,167 Amounts reclassified from accumulated other — ( 3 ) ( 3 ) Other comprehensive income 34,805 ( 1,348 ) 33,457 Balance at December 31, 2021 $ 3,541 $ — $ 3,541 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 Other comprehensive income 6,170 ( 352 ) 5,818 Balance at December 31, 2020 $ ( 31,264 ) $ 1,348 $ ( 29,916 ) |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Note 20 — Revenue from Contracts with Customers The Company recognizes revenue as per the five-step model in ASU 2014-09, “Revenue from Contracts with Customers (Topic 606).” (“ASU 2014-09”) 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 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. Sales taxes and value-added taxes are excluded 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 that 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 statements 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. Sales taxes and value-added taxes are excluded 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 as per the practical expedient set forth in ASU 2014-09. 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, 2022, December 31, 2021, and December 31, 2020, impairment losses recognized on receivables 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 that 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, 2022, December 31, 2021, and December 31, 2020: Year ended December 31, 2022 2021 2020 Retail Net Sales: Party City Stores* $ 1,724,044 $ 1,734,261 $ 1,374,680 Temporary Stores 51,582 35,726 7,645 Total Retail Revenues $ 1,775,626 $ 1,769,987 $ 1,382,325 Wholesale Net Sales: Domestic $ 255,369 $ 263,661 $ 238,936 International 138,883 137,412 229,429 Total Wholesale Net Sales $ 394,252 $ 401,073 $ 468,365 Total Consolidated Revenue $ 2,169,878 $ 2,171,060 $ 1,850,690 * 2022 and 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 doubtful accounts and occur only after all collection efforts have been exhausted. At December 31, 2022 and December 31, 2021, the allowance for doubtful accounts was $ 9.2 million and $ 8.1 million, respectively. |
Kazzam, LLC
Kazzam, LLC | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Kazzam, LLC | Note 21 — Kazzam, LLC In 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. 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 statements of stockholders’ equity (deficit). |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 22 — Subsequent Events Emergence from Chapter 11 Cases The Company evaluated subsequent events and transactions that occurred after the balance sheet date up to the date that the financial statements were issued. See Notes 1 and 9 for disclosure regarding the Company’s emergence from the Chapter 11 Cases on October 12, 2023. Delisting of Our Common Stock from the NYSE On January 18, 2023 and as a result of the Chapter 11 Cases, the New York Stock Exchange (the “NYSE” or the “Exchange”) commenced proceedings to delist the Company’s common stock from the NYSE. Under NYSE delisting procedures, the Company had the right to appeal this determination but did not exercise its right to do so. On February 3, 2023, the NYSE notified the SEC of its intention to remove the Company’s common stock from listing and registration on the Exchange on February 14, 2023, pursuant to the provisions of Rule 12d2-2(b) because, in the opinion of the Exchange, the Company’s common stock is no longer suitable for continued listing and trading on the Exchange. Accordingly, as of February 14, 2023, the Company’s common stock is no longer listed on the NYSE. The Company does not expect the NYSE delisting of its common stock to adversely affect the Company’s business operations or the pending restructuring under the Chapter 11 Cases, and the delisting of the Company’s common shares does not change the Company’s reporting requirements under SEC rules and regulations. The Company’s common stock began trading on the OTC Pink Open Market on February 14, 2023 under the symbol “PRTYQ” and ceased trading on the Effective Date (October 12, 2023) of the Plan. Disposition of Assets On March 31, 2023, the Debtors filed a motion with the Bankruptcy Court seeking the authority to sell, pursuant to section 363 of the Bankruptcy Code, their equity interests in Granmark, S.A. de C.V. (“Granmark”), a Non-Debtor Affiliate that is a party goods manufacturer located in Mexico, for $ 5.4 million. On April 11, 2023, the Bankruptcy Court authorized the Debtors to proceed with this sale. This sale was consummated on April 18, 2023. Granmark was part of our wholesale segment, and its revenues and profitability were not material to the Company or the wholesale segment in current or previous years. On March 18, 2024, we sold the assets of Deco Paper Products, Inc. ("Deco"), a manufacturer and distributor of paper plates located in Louisville, Kentucky, for approximately $ 7 million. Deco was part of our wholesale segment, and its revenues and profitability were not material to the Company or the wholesale segment in current or previous years. In the first quarter of 2024, management approved the closure of Am-Source, Inc. ("Am-Source"), a manufacturer and distributor of plastic plates, cups, and bowls located in East Providence, Rhode Island. We expect to close Am-Source no later than the end of the fourth quarter of 2024, commensurate with the termination date of the lease of the East Providence facility. Am-Source is part of our wholesale segment, and its revenues and profitability have not been material to the Company or the wholesale segment in current or previous years. |
Schedule I - Condensed Financia
Schedule I - Condensed Financial Information of Registrant | 12 Months Ended |
Dec. 31, 2022 | |
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 Total assets $ — $ 82,714 LIABILITIES AND Other liabilities (principally amounts due from wholly- $ 857,827 $ — Total liabilities $ 857,827 $ — Stockholders’ equity: Common stock (Par value $ 0.01 ; 113,509,223 and 112,170,944 shares outstanding and 126,787,094 and 124,157,500 shares issued at December 31, 2022 and December 31, 2021, respectively) 1,385 1,384 Additional paid-in capital 988,463 982,307 Retained deficit ( 1,514,615 ) ( 571,985 ) Accumulated other comprehensive income 1,855 3,541 Total stockholders’ (deficit) equity before common stock held in treasury ( 522,912 ) 415,247 Less: Common stock held in treasury, at cost ( 13,277,871 and 11,986,556 shares ( 334,915 ) ( 332,533 ) Total stockholders’ (deficit) equity ( 857,827 ) 82,714 Total liabilities and stockholders’ (deficit) equity $ — $ 82,714 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) Year ended December 31, 2022 2021 2020 Equity in net loss of subsidiaries $ ( 942,630 ) $ ( 6,528 ) $ ( 528,238 ) Net loss $ ( 942,630 ) $ ( 6,528 ) $ ( 528,238 ) Add: Net income attributable to redeemable securities holder — — — Net loss attributable to common shareholders of Party $ ( 942,630 ) $ ( 6,528 ) $ ( 528,238 ) Other comprehensive (loss) income, net ( 1,686 ) 33,457 5,818 Comprehensive (loss) income ( 944,316 ) 26,929 ( 522,420 ) Comprehensive income attributable to redeemable securities — — — Comprehensive (loss) income attributable to common shareholders of Party City Holdco Inc. $ ( 944,316 ) $ 26,929 $ ( 522,420 ) See accompanying notes to these condensed financial statements. PARTY CITY HOLDCO INC. (Parent company only) CONDENSED STATEMENTS OF CASH FLOWS (Dollars in thousands) Year ended December 31, 2022 2021 2020 Cash flows provided by (used in) operating activities: Net loss $ ( 942,630 ) $ ( 6,528 ) $ ( 528,238 ) Adjustments to reconcile net loss to net cash provided Equity in net loss of subsidiaries 942,630 6,528 528,238 Change in due to/from affiliates 2,382 1,678 ( 49 ) Net cash provided by (used in) operating activities 2,382 1,678 ( 49 ) Cash flows (used in) provided by financing activities: Treasury stock purchases ( 2,382 ) ( 5,351 ) ( 96 ) Exercise of stock options — 3,673 145 Net cash (used in) provided by financing activities ( 2,382 ) ( 1,678 ) 49 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, 2022 | |
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, 2022 | |
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, 2022 | |
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, 2020, December 31, 2021, and December 31, 2022 (Dollars in thousands) Beginning Write-Offs Additions Ending Allowance for Doubtful Accounts: 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 For the Year ended December 31, 2022 8,057 2,540 3,659 9,176 Sales Returns and Allowances: 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 For the Year ended December 31, 2022 616 76,552 76,620 684 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
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 2022 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. Due to the fact that the Chapter 11 filing occurred after the balance sheet date in this report, the accompanying consolidated financial statements as of and for the period ending December 31, 2022 have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The accompanying consolidated financial statements do not reflect any adjustments to liabilities and assets that resulted from the Bankruptcy Court’s confirmation of our reorganization plan on October 12, 2023. During the Chapter 11 Cases, the Company’s ability to continue as a going concern was contingent upon the Company’s ability to successfully implement the Company’s reorganization plan, among other factors. As a result of the effectiveness and ongoing implementation of the reorganization plan, management believes there is no longer substantial doubt about the Company’s ability to continue as a going concern. |
Use of Estimates | Use of Estimates The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States (“GAAP”) 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 and Cash Equivalents | Cash and 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. As of December 31, 2022, cash and cash equivalents included credit card receivables of $ 33.4 million. The Company maintains the majority of its cash in accounts with major financial institutions within and outside of the United States. Deposits in these institutions may exceed the amounts of insurance provided, or deposits may not be covered by insurance. The Company has not experienced losses on its deposits of 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 See Note 20 for details. |
Long-Lived and Intangible Assets (including Goodwill and Trade Names) | Long-Lived and Intangible Assets (including Goodwill and Trade Names) Property, plant, and equipment are stated at cost less accumulated depreciation. Depreciation for Property, plant, and equipment is recorded using the straight-line method over their estimated useful lives. 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 or approximates the carrying value of the asset/asset group, we would then 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. The fair values of store long-lived assets are determined based on estimated future discounted cash flows. Various factors, including future sales growth, profit margins, and store closure plans are included in this analysis. See Note 3 for further information regarding store and other long-lived asset impairments. Goodwill is reviewed for potential impairment annually on October 1st or more frequently if events or changes in circumstances indicate the carrying value of goodwill might exceed its current fair value. 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 market and income approaches. If the carrying value of a reporting unit exceeds its fair value, an impairment loss will be recognized in an amount equal to such excess. The fair value of the Company’s reporting units is based upon the best information available that incorporates assumptions marketplace participants would use in their estimates of fair value. Significant assumptions are used in determining appropriate discount rates and terminal growth rates, market multiples, and other assumptions. To forecast a reporting unit’s future cash flows, the Company takes into consideration current and future economic conditions and trends, management’s and a market participant’s view of revenue and EBITDA growth rates, and risk-adjusted discount rates. Macroeconomic factors such as changes in economies, changes in the competitive landscape, and other changes beyond the Company’s control could have a positive or negative impact on achieving its growth rate targets. See Note 4 for further information regarding goodwill impairments recorded in the periods covered by this report. Our trade names are treated as indefinite-lived intangible assets and are tested for impairment annually on October 1st or more frequently if circumstances indicate a possible impairment. 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 royalty rates and discount rates. Actual future results may differ from these estimates. An impairment loss is recognized when the estimated fair value of the indefinite-lived intangible asset is less than its carrying amount. See Note 8 for further information regarding trade name impairments recorded in the periods covered by this report. |
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 investments in Convergram Mexico, S. De R.L. De C.V., a joint venture distributing metallic balloons, principally in Mexico and Latin America and a joint venture for its costume sourcing and manufacturing business in Asia that are accounted for using the equity method of accounting. The Company concluded that it is not the primary beneficiary in either of these joint ventures and therefore accounts for these investments under the equity method. See Variable Interest Entities section below for additional information. The Company’s investments are included in Other assets, net on the consolidated balance sheets, and its share of the results of the investees’ operations are included in Other (income) expense, net, in the consolidated statements of operations and comprehensive (loss) income. See Note 11. |
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 frequency and/or severity of incidents. |
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 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 brand value (via significant advertising spend) and 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 when the franchisees’ sales are recorded. Additionally, 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, though the Company anticipates that future franchise store openings will be limited. Both the sales-based royalty fee and the one-time fee are recorded in Net sales in the Company’s consolidated statements 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 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 Wholesale cost of sales include 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. Retail cost of sales include 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. |
Selling, General and Administrative Expenses | Selling, General and Administrative Expenses Selling, general and administrative expenses include wholesale selling expenses, retail operating expenses, art and development costs, and other operating expenses. Wholesale selling expenses include the costs associated with our wholesale sales and marketing efforts, including merchandising and customer service. Such costs include the salaries and benefits of the related work force, including sales-based bonuses and commissions, as well as catalog and showroom expenses, travel, and other operating costs. Certain selling expenses, such as sales-based bonuses and commissions, vary in proportion to sales, while other costs vary based on other factors, such as our marketing efforts, or are largely fixed and do not necessarily increase as sales volumes increase. Retail operating expenses include all of the costs associated with retail store operations, excluding occupancy-related costs included in cost of sales. Costs include store payroll and benefits, advertising, supplies, and credit card costs. Retail expenses are largely variable but do not necessarily vary in proportion to net sales. Art and development costs include the costs associated with art production, creative development, and product management, and all operating costs and franchise expenses not included elsewhere in the consolidated statements of operations and comprehensive (loss) income. Costs include the salaries and benefits of the related work force. These expenses generally do not vary proportionally with net sales. Selling, general and administrative expenses also include all operating costs and franchise expenses not included elsewhere in the consolidated statements of operations and comprehensive (loss) income. These expenses include payroll and other expenses related to operations at our corporate offices, including occupancy costs, related depreciation and amortization, legal and professional fees, stock and equity-based compensation and data-processing costs. These expenses generally do not vary proportionally with net sales. |
Product Royalty Agreements | Product Royalty Agreements The Company enters into product royalty agreements that allow the Company to use licensed designs on certain of its products. These contracts require the Company to pay royalties generally based on the sales of such products 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. Product royalty is recorded within Cost of sales in the consolidated statements of operations and comprehensive (loss) income. |
Advertising | Advertising Advertising costs are expensed as incurred. Retail advertising expenses for the years ended December 31, 2022, December 31, 2021, and December 31, 2020 were $ 50.9 million, $ 55.3 million, and $ 61.0 million, 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. See Equity Method Investments section above. There were no variable interest entities as of December 31, 2022, 2021, and 2020. Refer to Note 21 – Kazzam, LLC for additional information. |
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 consolidated balance sheets 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. The company’s derivative financial instruments expired in 2021, and the Company did not enter into any derivative financial instruments in 2022. |
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 The Company measures the cost for all stock-based awards at the grant date fair value and recognizes the related compensation expense over the requisite service period based on the amount of awards expected to vest. Stock-based compensation expense is recorded net of estimated forfeitures based on historical experience. In 2022, the Company granted performance-based restricted stock units (“PRSUs”) to certain executive officers and other employees that vest only if certain annual and cumulative cash flow and earnings per share targets are met over a 3-year period. For such awards, management must assess the likelihood and extent to which such targets will be met to determine the amount of compensation expense to be recorded each reporting period. In 2020, the Company granted PRSUs and Restricted Cash awards with market conditions to certain executive officers and other employees. The performance period for such awards 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 of 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 are settled in Party City common stock and are accounted for as equity awards, and the Restricted Cash awards are settled in cash and are accounted for as liability awards. See Note 13 for further details regarding the Company’s stock-based compensation. |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) Accumulated other comprehensive income (loss) consists of the Company’s foreign currency adjustments. Se e Note 19. |
Foreign Currency Transactions and Translation | Foreign Currency Transactions and Translation For the Company’s foreign operations, the functional currency is the local currency 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 consolidated statements 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). |
Loss Per Share | Loss Per Share Basic loss per share is computed by dividing net loss attributable to common shareholders of Party City Holdco Inc. by the weighted average number of common shares outstanding for the period. In reporting periods with net income attributable to common shareholders of Party City Holdco Inc., 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 and PRSU’s, as if they vested. The calculation of basic and diluted loss per share is as follows: Year ended December 31, 2022 2021 2020 Net loss attributable to common shareholders of $ ( 942,630 ) $ ( 6,528 ) $ ( 528,238 ) Weighted average shares — Basic and Diluted: 112,911,368 110,980,934 100,804,944 Net loss per share attributable to common $ ( 8.35 ) $ ( 0.06 ) $ ( 5.24 ) During the year ended December 31, 2022 , 3,129,830 restricted stock units, 3,274,913 performance restricted stock units and 885,862 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. Duri ng 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 year ended December 31, 2020, 3,240,461 stock options, 1,000,000 warrants, 787,313 restricted stock units, and 1,206,723 performance restricted stock units were excluded from the calculations of net loss 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 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 was effective for the Company on January 1, 2022 and only impacts annual financial statement footnote disclosures. The adoption did not have any effect on our consolidated financial statements. In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope, which clarified the scope and application of ASU 2020-04. In December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, which defers the sunset date of the reference rate reform guidance to December 31, 2024. This guidance may be elected over time, through December 31, 2024, as reference rate reform activities occur. Once ASU 2020-04 is elected, the guidance must be applied prospectively for all eligible contract modifications. In July 2022, the Company amended its asset-based revolving credit facility to use the Secured Overnight Financing Rate (“SOFR”) as a reference rate rather than London Interbank Offered Rate (“LIBOR”). The Company elected to apply this guidance which preserves the presentation of the loan consistent with the presentation prior to the modification. |
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, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Calculation Between Basic and Diluted Loss Per Share | The calculation of basic and diluted loss per share is as follows: Year ended December 31, 2022 2021 2020 Net loss attributable to common shareholders of $ ( 942,630 ) $ ( 6,528 ) $ ( 528,238 ) Weighted average shares — Basic and Diluted: 112,911,368 110,980,934 100,804,944 Net loss per share attributable to common $ ( 8.35 ) $ ( 0.06 ) $ ( 5.24 ) |
Inventories, Net (Tables)
Inventories, Net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Summary of Inventories | Inventories consisted of the following: December 31, 2022 2021 Finished goods $ 585,656 $ 393,609 Raw materials 28,572 25,624 Work in process 19,132 24,062 Inventories, net $ 633,360 $ 443,295 |
Property, Plant and Equipment_2
Property, Plant and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, Net | Property, plant, and equipment, net consisted of the following: December 31, 2022 2021 Useful lives Machinery and equipment $ 239,386 $ 245,983 3 - 15 years Buildings 6,287 6,277 40 years Data processing equipment 136,906 131,989 3 - 5 years Leasehold improvements 235,115 203,503 1 - 10 years Furniture and fixtures 249,508 228,818 5 - 10 years Land 180 180 Property, plant, and equipment, gross 867,382 816,750 Less: accumulated depreciation ( 612,112 ) ( 594,880 ) Property, plant, and equipment, net $ 255,270 $ 221,870 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Identifiable Intangible Assets | The Company has the following identifiable finite-lived intangible assets, the net carrying value of which is reported in other intangible assets, net in the Company’s consolidated balance sheets: December 31, 2022 Cost Accumulated Net Useful lives Franchise-related intangible assets $ 73,225 $ 62,936 $ 10,289 4 - 19 years Customer lists and relationships 22,437 19,436 3,001 2 - 20 years Copyrights and designs 29,030 29,016 14 5 - 7 years Other intangible assets, net $ 124,692 $ 111,388 $ 13,304 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 Other intangibles assets, net $ 161,166 $ 137,479 $ 23,687 |
Current and Long-Term Debt Ob_2
Current and Long-Term Debt Obligations (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Summary of Long-Term Obligations | Long-term obligations at December 31, 2022 and December 31, 2021 consisted of the following: December 31, 2022 December 31, 2021 Principal Amount Gross Carrying Amount Deferred Financing Costs* Net Carrying Amount Net Carrying 8.75 % Senior Secured First Lien Notes – due 2026 $ 750,000 $ 750,000 $ ( 13,494 ) $ 736,506 $ 732,957 6.125 % Senior Notes — due 2023 22,924 22,924 ( 35 ) 22,889 22,834 6.625 % Senior Notes — due 2026 92,254 92,254 ( 519 ) 91,735 91,591 First Lien Party City Notes – due 2025 161,669 188,842 — 188,842 198,004 First Lien Anagram Notes – due 2025 121,666 148,446 ( 1,574 ) 146,872 149,569 Second Lien Anagram Notes – due 2026 98,293 144,529 ( 824 ) 143,705 144,619 Finance lease obligations 11,588 11,588 — 11,588 12,988 Total long-term obligations 1,258,394 1,358,583 ( 16,446 ) 1,342,137 1,352,562 Less: current portion ( 1,247,260 ) ( 1,347,449 ) 16,446 ( 1,331,003 ) ( 1,373 ) Long-term obligations, excluding current portion $ 11,134 $ 11,134 $ — $ 11,134 $ 1,351,189 * The Company incurred and capitalized third-party costs as deferred financing, which were being amortized over the life of the debt. |
Maturities of Long-Term Obligations | At December 31, 2022, the maturities of our debt consisted of the following: Long-Term Finance Lease Totals 2023 $ 1,346,995 $ 454 $ 1,347,449 2024 — 449 449 2025 — 365 365 2026 — 407 407 2027 — 451 451 Thereafter — 9,462 9,462 Long-term obligations $ 1,346,995 $ 11,588 $ 1,358,583 |
Capital Stock (Tables)
Capital Stock (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Federal Home Loan Banks [Abstract] | |
Summary Changes in Common Shares Outstanding | The changes in common shares outstanding during the three years ended December 31, 2020, December 31, 2021, and December 31, 2022 were as follows: Common Shares Outstanding at December 31, 2019 94,461,576 Issuance of stock as part of debt refinancing 15,942,551 Vesting 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 Vesting 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 Vesting of shares to directors 139,154 Treasury stock purchases ( 1,291,315 ) Vesting of restricted stock and restricted stock units 2,499,213 Cancellation of restricted stock awards ( 8,773 ) Common Shares Outstanding at December 31, 2022 113,509,223 |
Other (Income) Expense, Net (Ta
Other (Income) Expense, Net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other Income and Expenses [Abstract] | |
Summary of Other Expense, Net | Other (income) expense, net consists of the following: Year ended December 31, 2022 2021 2020 Undistributed (income) loss in equity method investments $ ( 1,467 ) $ ( 220 ) $ 333 Foreign currency gain ( 1,962 ) ( 953 ) ( 1,058 ) Corporate development expenses — 561 2,185 (Gain) loss on sale of assets ( 157 ) 143 95 Other, net ( 203 ) ( 145 ) 2,160 * Other (income) expense, net $ ( 3,789 ) $ ( 614 ) $ 3,715 *2020 balance consists of expense related to Kazzam (see Note 21) and fees from international operations owned in 2020 (see Note 5). |
Equity Incentive Plans (Tables)
Equity Incentive Plans (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Summary of Changes in Outstanding Options | The following table summarizes the changes in outstanding stock options for the years ended December 31, 2022. Options Average Aggregate Weighted Outstanding at December 31, 2021 1,032,219 $ 10.18 $ ( 4,754 ) 4.5 Granted — $ - Exercised — $ - Forfeited ( 146,357 ) $ 8.52 Outstanding at December 31, 2022 885,862 $ 10.45 $ - 3.9 Exercisable at December 31, 2022 851,582 $ 10.37 $ - 3.9 Expected to vest at December 31, 2022 (excluding performance-based options) 34,280 $ 12.43 $ - 5.7 |
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 2.99 % Volatility 106.31 % to 140.02 % Weighted average grant date fair value $ 1.02 In 2022, the Company granted 1,443,692 of PRSUs that vest 1/3 per year over a 3-year period only if certain annual and cumulative cash flow and earnings per share targets are met. For the year ended December 31, 2022, no expense was recognized for these awards because management does not expect the Company to achieve the minimum performance target thresholds required. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Summary of Domestic and Foreign (Loss) Income Before Income Taxes | The following table summarizes domestic and foreign (loss) income before income taxes for the years ended December 31, 2022, 2021, and 2020 (in thousands of dollars): Year Ended December 31, 2022 2021 2020 Domestic $ ( 963,137 ) $ 193 $ ( 542,046 ) Foreign 4,013 ( 1,067 ) ( 143,064 ) Loss before income taxes $ ( 959,124 ) $ ( 874 ) $ ( 685,110 ) |
Summary of Income Tax (Benefit) Expense | Income tax (benefit) expense for the years ended December 31, 2022, 2021, and 2020 consisted of the following (in thousands of dollars): Year Ended December 31, 2022 2021 2020 Current: Federal $ 2,032 $ 9,491 $ ( 61,528 ) State 864 911 ( 1,639 ) Foreign 203 461 1,599 Total current income tax expense (benefit) 3,099 10,863 ( 61,568 ) Deferred: Federal ( 18,888 ) ( 6,707 ) ( 70,440 ) State ( 443 ) 1,356 ( 19,252 ) Foreign ( 262 ) 196 ( 5,393 ) Total deferred income tax benefit ( 19,593 ) ( 5,155 ) ( 95,085 ) Income tax (benefit) expense $ ( 16,494 ) $ 5,708 $ ( 156,653 ) |
Summary of Deferred Income Tax Assets and Liabilities | Deferred income tax assets and liabilities as of December 31, 2022 and 2021 consisted of the following (in thousands of dollars): December 31, 2022 2021 Deferred income tax assets: Inventory reserves and capitalization $ 13,914 $ 20,007 Allowance for doubtful accounts 2,246 1,884 Accrued liabilities 9,863 9,624 Equity-based compensation 4,456 4,316 Federal tax loss carryforwards 6,560 — State tax loss carryforwards 13,486 8,433 Foreign tax loss carryforwards 1,487 2,586 Debt exchange basis difference 34,788 47,853 Section 163(j) Interest Limitation 53,455 18,126 Lease liabilities 213,445 198,332 Amortization of goodwill and other assets 11,893 — Capitalized refinancing and other costs 2,662 4,692 Other 2,326 3,129 Deferred income tax assets before valuation allowances 370,581 318,982 Less: valuation allowances ( 120,417 ) ( 12,608 ) Deferred income tax assets, net $ 250,164 $ 306,374 Deferred income tax liabilities: Depreciation $ 49,048 $ 42,548 Trade name 24,507 99,039 Amortization of goodwill and other assets — 13,065 Foreign earnings expected to be repatriated 933 969 Lease right of use assets 182,487 175,942 Other 2,317 4,006 Deferred income tax liabilities $ 259,292 $ 335,569 Net deferred income tax liabilities $ 9,128 $ 29,195 |
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 for the years ended December 31, 2022, 2021, and 2020 is as follows: Year ended December 31, 2022 2021 2020 Tax provision at U.S. statutory income tax rate 21.0 % 21.0 % 21.0 % State income tax, net of federal income tax ( 0.1 ) ( 205.0 ) 2.4 Valuation allowances ( 8.5 ) 23.1 ( 2.7 ) GILTI and foreign-derived intangible income ( 0.1 ) 83.8 — Foreign earnings — ( 37.5 ) 1.3 U.S. — foreign rate differential — ( 35.3 ) 0.4 CARES Act: 5-year NOL carryback — — 2.9 Debt exchange – cancellation of debt — — 8.7 Goodwill impairment ( 10.3 ) — ( 10.3 ) Uncertain tax positions ( 0.1 ) ( 560.2 ) ( 1.4 ) Other ( 0.2 ) 57.0 0.6 Effective income tax rate 1.7 % ( 653.1 ) % 22.9 % |
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 for the years ended December 31, 2022, 2021, and 2020 (in thousands of dollars): Year ended December 31, 2022 2021 2020 Balance at beginning of year $ 15,021 $ 13,890 $ 4,891 Increases related to current period tax positions 485 3,759 8,186 Increases related to prior period tax positions 735 3,885 1,061 Decreases related to settlements ( 1,675 ) ( 6,245 ) — Decreases related to lapsing of statutes of limitations — ( 268 ) ( 248 ) Balance at end of year $ 14,566 $ 15,021 $ 13,890 |
Commitments, Contingencies an_2
Commitments, Contingencies and Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Future Minimum Product Royalties | At December 31, 2022, the Company’s commitment to pay future minimum product royalties was as follows: Future Minimum 2023 $ 15,692 2024 6,405 2025 1,010 Thereafter — $ 23,107 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Company's Industry Segment Data | The Company’s industry segment data for the years ended Decem ber 31, 2022, December 31, 2021, and December 31, 2020 are as follows: Wholesale Retail Consolidated Year ended December 31, 2022 Net sales before eliminations $ 1,182,917 $ 1,775,626 $ 2,958,543 Eliminations ( 788,665 ) — ( 788,665 ) Total revenues $ 394,252 $ 1,775,626 $ 2,169,878 Loss from operations $ ( 405,989 ) $ ( 454,277 ) $ ( 860,266 ) Interest expense, net 102,647 Other income, net ( 3,789 ) Loss before income taxes $ ( 959,124 ) Depreciation and amortization $ 19,160 $ 43,871 $ 63,031 Capital expenditures $ ( 15,457 ) $ ( 82,082 ) $ ( 97,539 ) Total assets $ 1,137,772 $ 882,225 $ 2,019,997 For the year ended December 31, 2022, one customer accounted for approximately 12 % of total wholesale segment revenues. 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) income from operations $ ( 28,492 ) $ 113,124 $ 84,632 Interest expense, net 87,226 Other income, 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 ) Loss 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 |
Schedule of Company's Industry Geographic Segments | The Company’s geographic area data is as follows: Domestic Foreign Eliminations Consolidated Year ended December 31, 2022 Revenues: Net sales to unaffiliated customers $ 2,109,888 $ 59,990 $ — $ 2,169,878 Net sales between geographic areas 12,007 4,930 ( 16,937 ) — Total revenues $ 2,121,895 $ 64,920 $ ( 16,937 ) $ 2,169,878 (Loss) income from operations $ ( 862,219 ) $ 1,954 $ — $ ( 860,266 ) Interest expense, net 102,647 Other income, net ( 3,789 ) Loss before income taxes $ ( 959,124 ) Depreciation and amortization $ 61,587 $ 1,444 $ 63,031 Total long-lived assets (excluding goodwill, $ 266,830 $ 5,271 $ 272,101 Total assets $ 1,961,675 $ 58,322 $ — $ 2,019,997 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 Income (loss) from operations $ 86,095 $ ( 1,463 ) $ — $ 84,632 Interest expense, net 87,226 Other income, net ( 1,720 ) Loss before income taxes $ ( 874 ) Depreciation and amortization $ 63,755 $ 1,855 $ 65,610 Total long-lived assets (excluding goodwill, $ 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 (Loss) income from operations $ ( 644,338 ) $ 14,189 $ ( 247,352 ) $ ( 877,501 ) Interest expense, net 77,043 Other income, net ( 269,434 ) Loss before income taxes $ ( 685,110 ) Depreciation and amortization $ 70,586 $ 5,920 $ 76,506 Total long-lived assets (excluding goodwill, $ 103,885 $ 24,746 $ 128,631 Total assets $ 2,518,490 $ 287,965 $ — $ 2,806,455 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
The Future Cash flows for The Company's Operating Leases | Set forth below is a summary of our contractual lease obligations as of December 31, 2022 (in thousands of dollars). As discussed above, a s part of its bankruptcy reorganization plan, the Company restructured the remaining term and economics of certain retail and non-retail properties within its lease portfolio, including permanent abandonment of certain leases, in 2023. The obligations set forth in the table below reflect our lease contracts as of December 31, 2022 and do not reflect the impact of the lease restructurings and abandonments executed in 2023. Future Minimum 2023 $ 194,180 2024 169,205 2025 165,829 2026 132,144 2027 106,834 Thereafter 414,668 Total undiscounted cash flows 1,182,860 Less: Interest ( 378,135 ) Total operating lease liability 804,725 Less: Current portion of operating lease liability ( 119,605 ) Long-term portion of operating lease liability $ 685,120 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022 are as follows: Gross Carrying Amount Fair Value 8.75% Senior Secured First Lien Notes – due 2026 $ 750,000 $ 213,750 6.125% Senior Notes — due 2023 22,924 1,146 6.625% Senior Notes — due 2026 92,254 3,133 First Lien Party City Notes – due 2025 188,842 50,778 First Lien Anagram Notes – due 2025 148,446 141,165 Second Lien Anagram Notes – due 2026 144,529 95,096 |
Changes in Accumulated Other _2
Changes in Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive Income (Loss) | The changes in accumulated other comprehensive income (loss) consisted of the following: Foreign Currency Adjustments Impact of Foreign Exchange Contracts, Net of Taxes Total, Net of Taxes Balance at December 31, 2021 $ 3,541 $ — $ 3,541 Other comprehensive loss, net of tax ( 1,686 ) — ( 1,686 ) Balance at December 31, 2022 $ 1,855 $ — $ 1,855 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 before ( 1,784 ) 77 ( 1,707 ) Release of cumulative foreign currency translation 36,589 ( 1,422 ) 35,167 Amounts reclassified from accumulated other — ( 3 ) ( 3 ) Other comprehensive income 34,805 ( 1,348 ) 33,457 Balance at December 31, 2021 $ 3,541 $ — $ 3,541 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 Other comprehensive income 6,170 ( 352 ) 5,818 Balance at December 31, 2020 $ ( 31,264 ) $ 1,348 $ ( 29,916 ) |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Revenue from Contracts with Customers | The following table summarizes revenue from contracts with customers for the years ended December 31, 2022, December 31, 2021, and December 31, 2020: Year ended December 31, 2022 2021 2020 Retail Net Sales: Party City Stores* $ 1,724,044 $ 1,734,261 $ 1,374,680 Temporary Stores 51,582 35,726 7,645 Total Retail Revenues $ 1,775,626 $ 1,769,987 $ 1,382,325 Wholesale Net Sales: Domestic $ 255,369 $ 263,661 $ 238,936 International 138,883 137,412 229,429 Total Wholesale Net Sales $ 394,252 $ 401,073 $ 468,365 Total Consolidated Revenue $ 2,169,878 $ 2,171,060 $ 1,850,690 * 2022 and 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) - USD ($) | 1 Months Ended | 12 Months Ended | ||||||||||||
Apr. 11, 2025 | Jun. 30, 2024 | Mar. 31, 2024 | Nov. 08, 2023 | Oct. 12, 2023 | Sep. 06, 2023 | Jan. 18, 2023 | Jul. 30, 2020 | Feb. 28, 2021 | Dec. 31, 2022 | Jan. 19, 2023 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Basis Of Presentation [Line Items] | ||||||||||||||
Common stock, shares outstanding | 113,509,223 | 112,170,944 | 110,781,613 | 94,461,576 | ||||||||||
Commitment fee percentage | 0.25% | |||||||||||||
Registration Rights Agreement [Member] | ||||||||||||||
Basis Of Presentation [Line Items] | ||||||||||||||
Interest rate | 25% | |||||||||||||
Gross proceeds from offering | $ 50,000,000 | |||||||||||||
New ABL Facility [Member] | ||||||||||||||
Basis Of Presentation [Line Items] | ||||||||||||||
Interest on overdue principal | 2% | |||||||||||||
Commitment fee percentage | 0.50% | |||||||||||||
Secured Overnight Financing Rate SOFR [Member] | ||||||||||||||
Basis Of Presentation [Line Items] | ||||||||||||||
Basis spread on variable rate | 1% | |||||||||||||
Maximum [Member] | ||||||||||||||
Basis Of Presentation [Line Items] | ||||||||||||||
Commitment fee percentage | 1% | |||||||||||||
Minimum [Member] | ||||||||||||||
Basis Of Presentation [Line Items] | ||||||||||||||
Commitment fee percentage | 0.50% | |||||||||||||
Minimum [Member] | Anagram ABL Facility [Member] | ||||||||||||||
Basis Of Presentation [Line Items] | ||||||||||||||
Proceeds to acquire assets | $ 175,000 | |||||||||||||
New PCHI Shares [Member] | ||||||||||||||
Basis Of Presentation [Line Items] | ||||||||||||||
Interest rate | 0.30% | |||||||||||||
Shares Issued | 36,879 | |||||||||||||
Stock issued during period, value related to commitments to debtors | $ 75,000 | |||||||||||||
Subsequent Event [Member] | ||||||||||||||
Basis Of Presentation [Line Items] | ||||||||||||||
Amount of claims filed | $ 150,000,000 | |||||||||||||
Cases, date plan confirmed | Sep. 06, 2023 | |||||||||||||
Cases, effective date of plan | Oct. 12, 2023 | |||||||||||||
Issuance of shares of common stock | true | |||||||||||||
Authorizing issuance of shares of common stock representing equity interests percentage | 100% | |||||||||||||
Subsequent Event [Member] | New ABL Facility [Member] | ||||||||||||||
Basis Of Presentation [Line Items] | ||||||||||||||
Maturity date | Oct. 12, 2028 | |||||||||||||
Subsequent Event [Member] | New FILO Facility [Member] | ||||||||||||||
Basis Of Presentation [Line Items] | ||||||||||||||
Asset based credit facility | $ 17,100,000 | |||||||||||||
Subsequent Event [Member] | New PCHI Shares [Member] | ||||||||||||||
Basis Of Presentation [Line Items] | ||||||||||||||
Authorizing issuance of shares of common stock representing equity interests percentage | 100% | |||||||||||||
Common stock, shares outstanding | 13,374,519 | |||||||||||||
Subsequent Event [Member] | New PCHI Shares [Member] | Maximum [Member] | ||||||||||||||
Basis Of Presentation [Line Items] | ||||||||||||||
Percentage contribution of all shares | 1% | |||||||||||||
Debtor In Possession Term Loan Facility [Member] | Anagram ABL Facility [Member] | ||||||||||||||
Basis Of Presentation [Line Items] | ||||||||||||||
Commitment fee amount | 15,000 | |||||||||||||
Debtor In Possession Term Loan Facility [Member] | Anagram Notes Facility [Member] | ||||||||||||||
Basis Of Presentation [Line Items] | ||||||||||||||
Commitment fee amount | $ 22,000 | |||||||||||||
Debtor In Possession Term Loan Facility [Member] | New PCHI Shares [Member] | ||||||||||||||
Basis Of Presentation [Line Items] | ||||||||||||||
Interest rate | 69.80% | |||||||||||||
Shares Issued | 9,339,564 | |||||||||||||
Debtor In Possession Term Loan Facility [Member] | Subsequent Event [Member] | ||||||||||||||
Basis Of Presentation [Line Items] | ||||||||||||||
Debtor-in-Possession Financing, Date Arrangement Approved by Bankruptcy Court | Jan. 18, 2023 | |||||||||||||
Debtor-in-Possession Financing, Amount Arranged | $ 150,000,000 | |||||||||||||
Debt initial draw amount | $ 75,000,000 | |||||||||||||
Debt second draw amount | $ 75,000,000 | |||||||||||||
Commitment fee percentage | 0.50% | |||||||||||||
Debtor In Possession Term Loan Facility [Member] | Subsequent Event [Member] | Base Rate [Member] | ||||||||||||||
Basis Of Presentation [Line Items] | ||||||||||||||
Basis spread on variable rate | 9% | |||||||||||||
Debtor In Possession Term Loan Facility [Member] | Subsequent Event [Member] | Secured Overnight Financing Rate SOFR [Member] | ||||||||||||||
Basis Of Presentation [Line Items] | ||||||||||||||
Basis spread on variable rate | 10% | |||||||||||||
Debtor In Possession Term Loan Facility [Member] | Subsequent Event [Member] | New PCHI Shares [Member] | ||||||||||||||
Basis Of Presentation [Line Items] | ||||||||||||||
Common stock, shares outstanding | 9,339,564 | |||||||||||||
8.75% Senior Secured First Lien Notes due 2026 [Member] | ||||||||||||||
Basis Of Presentation [Line Items] | ||||||||||||||
Interest rate | 8.75% | |||||||||||||
Asset Based Revolving Credit Facility [Member] | ||||||||||||||
Basis Of Presentation [Line Items] | ||||||||||||||
Percentage of total line cap | 10% | |||||||||||||
Line of credit facility, excess availability | $ 46,000 | |||||||||||||
6.125% Senior Notes due 2023 [Member] | ||||||||||||||
Basis Of Presentation [Line Items] | ||||||||||||||
Interest rate | 6.125% | |||||||||||||
Six Point Six Two Five Percentage Senior Notes Due2026 [Member] | ||||||||||||||
Basis Of Presentation [Line Items] | ||||||||||||||
Interest rate | 6.625% | |||||||||||||
12.00% Senior Secured Second Lien PIK Toggle [Member] | Subsequent Event [Member] | ||||||||||||||
Basis Of Presentation [Line Items] | ||||||||||||||
Interest rate | 12% | |||||||||||||
Rights Offering [Member] | ||||||||||||||
Basis Of Presentation [Line Items] | ||||||||||||||
Aggregate principal amount | $ 75,000,000 | $ 75,000,000 | ||||||||||||
Rights Offering [Member] | New PCHI Shares [Member] | ||||||||||||||
Basis Of Presentation [Line Items] | ||||||||||||||
Interest rate | 2.70% | |||||||||||||
Shares Issued | 363,462 | |||||||||||||
Rights Offering [Member] | New PCHI Shares [Member] | Backstop Agreement [Member] | ||||||||||||||
Basis Of Presentation [Line Items] | ||||||||||||||
Interest rate | 0.90% | |||||||||||||
Shares Issued | 118,535 | |||||||||||||
Rights Offering [Member] | Subsequent Event [Member] | ||||||||||||||
Basis Of Presentation [Line Items] | ||||||||||||||
Aggregate principal amount | $ 75,000,000 | |||||||||||||
Rights Offering [Member] | Subsequent Event [Member] | New PCHI Shares [Member] | ||||||||||||||
Basis Of Presentation [Line Items] | ||||||||||||||
Common stock, shares outstanding | 3,634,614 | |||||||||||||
Subscription Rights [Member] | New PCHI Shares [Member] | ||||||||||||||
Basis Of Presentation [Line Items] | ||||||||||||||
Interest rate | 26.30% | |||||||||||||
Shares Issued | 3,516,079 | |||||||||||||
Second Lien [Member] | ||||||||||||||
Basis Of Presentation [Line Items] | ||||||||||||||
Aggregate principal amount | $ 232,400 | |||||||||||||
Maturity date | Jan. 11, 2029 | |||||||||||||
Interest rate description | Interest on the Second Lien Notes accrues at a rate of 12.00% per annum, payable, at the Company’s option, either in cash or by increasing the amount of the Second Lien Notes outstanding, on February 15, May 15, August 15, and November 15 of each year, commencing February 15, 2024. | |||||||||||||
Debt instrument, interest rate payable in cash | 12% | |||||||||||||
Period for purchase of all outstanding notes under Change of Control | 60 days | |||||||||||||
Second Lien [Member] | Debt Instrument Redemption on or after April 11, 2025 [Member] | ||||||||||||||
Basis Of Presentation [Line Items] | ||||||||||||||
Percentage of principal amount to be redeemed | 100% | |||||||||||||
Second Lien [Member] | Debt instrument redemption by equity offering before April 11, 2025 [Member] | ||||||||||||||
Basis Of Presentation [Line Items] | ||||||||||||||
Percentage of principal amount to be redeemed | 100% | |||||||||||||
Second Lien [Member] | Debt Instrument Redemption on or after April 11, 2025 [Member] | ||||||||||||||
Basis Of Presentation [Line Items] | ||||||||||||||
Percentage of principal amount to be redeemed | 101% | |||||||||||||
Second Lien [Member] | Subsequent Event [Member] | ||||||||||||||
Basis Of Presentation [Line Items] | ||||||||||||||
Aggregate principal amount | $ 232,400,000 | |||||||||||||
New ABL Credit Agreement [Member] | ||||||||||||||
Basis Of Presentation [Line Items] | ||||||||||||||
Interest rate description | The applicable margins are subject to a 0.50% increase on March 31, 2024 and an incremental 0.50% increase on June 30, 2024 if the Parent Borrower has, as of such date, not yet delivered to the New ABL Agent an audited consolidated balance sheet and related statements of income, stockholders' equity, and cash flows of the Company and its subsidiaries as of the end of the fiscal year ended December 31, 2022. | |||||||||||||
Percentage of total line cap | 25% | |||||||||||||
Line of credit facility, excess availability | $ 120,000,000 | |||||||||||||
Fixed charge coverage ratio | 1 | |||||||||||||
New ABL Credit Agreement [Member] | Base Rate [Member] | ||||||||||||||
Basis Of Presentation [Line Items] | ||||||||||||||
Basis spread on variable rate | 0% | |||||||||||||
New ABL Credit Agreement [Member] | Federal Fund Rate [Member] | ||||||||||||||
Basis Of Presentation [Line Items] | ||||||||||||||
Basis spread on variable rate | 0.50% | |||||||||||||
New ABL Credit Agreement [Member] | Secured Overnight Financing Rate SOFR [Member] | ||||||||||||||
Basis Of Presentation [Line Items] | ||||||||||||||
Floor rate | 0% | |||||||||||||
Basis spread on variable rate | 1% | |||||||||||||
New ABL Credit Agreement [Member] | Subsequent Event [Member] | ||||||||||||||
Basis Of Presentation [Line Items] | ||||||||||||||
Credit facility current borrowing capacity | 545,000,000 | |||||||||||||
New ABL Credit Agreement [Member] | Subsequent Event [Member] | Letter Of Credit [Member] | ||||||||||||||
Basis Of Presentation [Line Items] | ||||||||||||||
Credit facility borrowing maximum capacity | $ 60,000,000 | |||||||||||||
New ABL Revolving Loan [Member] | Base Rate [Member] | ||||||||||||||
Basis Of Presentation [Line Items] | ||||||||||||||
Basis spread on variable rate | 3% | |||||||||||||
New ABL Revolving Loan [Member] | Secured Overnight Financing Rate SOFR [Member] | ||||||||||||||
Basis Of Presentation [Line Items] | ||||||||||||||
Basis spread on variable rate | 4% | |||||||||||||
New FILO Loans | Base Rate [Member] | ||||||||||||||
Basis Of Presentation [Line Items] | ||||||||||||||
Basis spread on variable rate | 5% | |||||||||||||
New FILO Loans | Secured Overnight Financing Rate SOFR [Member] | ||||||||||||||
Basis Of Presentation [Line Items] | ||||||||||||||
Basis spread on variable rate | 6% | |||||||||||||
New FILO Loans | Subsequent Event [Member] | New ABL Facility [Member] | ||||||||||||||
Basis Of Presentation [Line Items] | ||||||||||||||
Basis spread on variable rate | 0.50% | |||||||||||||
Increase in interest rate | 0.50% |
Organization, Description of _3
Organization, Description of Business, and Basis of Presentation - Additional Information (Detail) 1 | 12 Months Ended |
Dec. 31, 2022 Store | |
PC Nextco [Member] | |
Basis Of Presentation [Line Items] | |
Ownership percentage | 100% |
PC Intermediate [Member] | |
Basis Of Presentation [Line Items] | |
Ownership percentage | 100% |
Party City Holdings Inc [Member] | |
Basis Of Presentation [Line Items] | |
Ownership percentage | 100% |
United States and Canada [Member] | |
Basis Of Presentation [Line Items] | |
Number of stores | 770 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||||
Jul. 18, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2018 | |
Significant Accounting Policies [Line Items] | |||||
Cash and cash equivalents included credit card receivables | $ 33.4 | ||||
Retail advertising expenses | $ 50.9 | $ 55.3 | $ 61 | ||
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] | true | true | |||
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect [true false] | true | ||||
Restricted Stock Units (RSUs) [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Antidilutive securities excluded from calculation of earnings per share | 3,129,830 | 1,514,010 | 787,313 | ||
Performance Restricted Stock Units [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Antidilutive securities excluded from calculation of earnings per share | 3,274,913 | 4,653,373 | 1,206,723 | ||
Employee Stock Option [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Antidilutive securities excluded from calculation of earnings per share | 885,862 | 1,032,219 | 3,240,461 | ||
Warrant [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Antidilutive securities excluded from calculation of earnings per share | 1,000,000 | ||||
Performance-based Restricted Stock Units [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Share based stock awards vesting period | 3 years | 3 years | 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 | $ 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 | 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 | 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 | $ 10 | |||
Retail Segment [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Revenue, information used to determine transaction price | The transaction price for 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% | ||||
Retail Segment [Member] | Maximum [Member] | |||||
Significant Accounting Policies [Line Items] | |||||
Royalty fee percentage | 6% | ||||
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 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Calculation Between Basic and Diluted Loss Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |||
Net (loss) income attributable to common shareholders of Party City Holdco Inc.: | $ (942,630) | $ (6,528) | $ (528,238) |
Weighted-average number of common shares-basic | 112,911,368 | 110,980,934 | 100,804,944 |
Weighted-average number of common shares-diluted | 112,911,368 | 110,980,934 | 100,804,944 |
Net (loss) income per share attributable to common shareholders of Party City Holdco Inc. — Basic: | $ (8.35) | $ (0.06) | $ (5.24) |
Net (loss) income per share attributable to common shareholders of Party City Holdco Inc. — Diluted: | $ (8.35) | $ (0.06) | $ (5.24) |
Store and Other Long-Lived As_2
Store and Other Long-Lived Asset Impairments - Additional Information (Detail) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) Store | |
Regulatory Asset [Line Items] | |||
Impairment charges on lease assets | $ 23.3 | ||
Number of stores closed | Store | 21 | ||
Property, Plant and Equipment [Member] | |||
Regulatory Asset [Line Items] | |||
Impairment charges on lease assets | $ 9 | ||
Store Assets Impairment [Member] | |||
Regulatory Asset [Line Items] | |||
Impairment charges on lease assets | 9.6 | ||
Store Assets Impairment [Member] | Lease Assets [Member] | |||
Regulatory Asset [Line Items] | |||
Impairment charges on lease assets | 8.4 | ||
Store Assets Impairment [Member] | Property, Plant and Equipment [Member] | |||
Regulatory Asset [Line Items] | |||
Impairment charges on lease assets | 1.2 | ||
Vacated Office Space [Member] | |||
Regulatory Asset [Line Items] | |||
Impairment charges on lease assets | 6.8 | ||
Vacated Office Space [Member] | Lease Assets [Member] | |||
Regulatory Asset [Line Items] | |||
Impairment charges on lease assets | 5 | ||
Vacated Office Space [Member] | Property, Plant and Equipment [Member] | |||
Regulatory Asset [Line Items] | |||
Impairment charges on lease assets | 1.8 | ||
Cessation of Information System Projects [Member] | |||
Regulatory Asset [Line Items] | |||
Impairment charges on lease assets | 6.8 | ||
Cessation of Information System Projects [Member] | Property, Plant and Equipment [Member] | |||
Regulatory Asset [Line Items] | |||
Impairment charges on lease assets | 1.9 | ||
Cessation of Information System Projects [Member] | Other Assets [Member] | |||
Regulatory Asset [Line Items] | |||
Impairment charges on lease assets | $ 4.9 | ||
Store and Other Long-Lived Asset [Member] | |||
Regulatory Asset [Line Items] | |||
Impairment charges on lease assets | $ 22.4 |
Goodwill - Additional Informati
Goodwill - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2022 | Sep. 30, 2022 | Mar. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill [Line Items] | ||||||
Goodwill balance | $ 100,357 | $ 100,357 | $ 664,296 | |||
Goodwill, impairment loss | 568,600 | 0 | $ 401,400 | |||
Wholesale Segment [Member] | ||||||
Goodwill [Line Items] | ||||||
Goodwill balance | 331,700 | |||||
Retail Segment [Member] | ||||||
Goodwill [Line Items] | ||||||
Goodwill balance | 100,400 | 100,400 | 332,600 | |||
Operating Segments [Member] | ||||||
Goodwill [Line Items] | ||||||
Goodwill, impairment loss | 280,200 | 568,600 | ||||
Operating Segments [Member] | Wholesale Segment [Member] | ||||||
Goodwill [Line Items] | ||||||
Goodwill, impairment loss | 60,300 | $ 288,400 | $ 148,300 | 348,700 | ||
Goodwill, Increase (Decrease) | 1,500 | |||||
Operating Segments [Member] | Retail Segment [Member] | ||||||
Goodwill [Line Items] | ||||||
Goodwill, impairment loss | $ 219,900 | $ 253,100 | $ 219,900 | |||
Goodwill, Increase (Decrease) | $ 4,500 |
Sale_Leaseback Transaction - Ad
Sale/Leaseback Transaction - Additional Information (Detail) $ in Millions | 1 Months Ended |
Feb. 28, 2021 USD ($) | |
Term Loan Credit Agreement [Member] | |
Repayment of Term debt Loan | $ 694.2 |
Disposition of Assets - Additio
Disposition of Assets - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Jan. 01, 2021 | |
Total impairment charges | $ 11.6 | |||
Equipment impairment charges | $ 8.7 | |||
Impairment, Long-Lived Asset, Held-for-Use, Statement of Income or Comprehensive Income [Extensible Enumeration] | Impairment of Long-Lived Assets to be Disposed of | |||
Impairments of inventories | $ 68.7 | $ 2.4 | ||
Severance and other costs | $ 0.5 | |||
Transaction value | $ 50.7 | |||
Loss reserve on net assets | $ 73.9 |
Inventories, Net - Summary of I
Inventories, Net - Summary of Inventories (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 585,656 | $ 393,609 |
Raw materials | 28,572 | 25,624 |
Work in process | 19,132 | 24,062 |
Inventories, net | $ 633,360 | $ 443,295 |
Inventories, Net - Additional I
Inventories, Net - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |||
Disposal of inventory | $ 68.7 | $ 2.4 | |
Increase In Inventories | $ 190.1 |
Property, Plant and Equipment_3
Property, Plant and Equipment, Net - Property, Plant and Equipment, Net (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment gross | $ 867,382 | $ 816,750 |
Less: accumulated depreciation | (612,112) | (594,880) |
Property plant and equipment, net | 255,270 | 221,870 |
Machinery and Equipment Member | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment gross | $ 239,386 | 245,983 |
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 | $ 6,287 | 6,277 |
Useful lives | 40 years | |
Data Processing Equipment Member | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment gross | $ 136,906 | 131,989 |
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 | $ 235,115 | 203,503 |
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 | $ 249,508 | 228,818 |
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 | $ 180 |
Property, Plant and Equipment_4
Property, Plant and Equipment, Net - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property Plant And Equipment Useful Life And Values [Abstract] | |||
Depreciation expense related to property, plant and equipment, including assets under finance leases | $ 56.9 | $ 56.2 | $ 65.1 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Identifiable Intangible Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Finite-Lived Intangible Assets [Line Items] | ||
Cost | $ 124,692 | $ 161,166 |
Accumulated Amortization | 111,388 | 137,479 |
Net Carrying Value | 13,304 | 23,687 |
Franchise-related Intangible Assets [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 73,225 | 73,225 |
Accumulated Amortization | 62,936 | 59,311 |
Net Carrying Value | 10,289 | 13,914 |
Customer Lists and Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 22,437 | 58,911 |
Accumulated Amortization | 19,436 | 49,154 |
Net Carrying Value | 3,001 | 9,757 |
Copyrights and Designs [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 29,030 | 29,030 |
Accumulated Amortization | 29,016 | 29,014 |
Net Carrying Value | $ 14 | $ 16 |
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 ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2022 | Sep. 30, 2022 | Sep. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Finite-Lived Intangible Assets [Line Items] | |||||||
Amortization expense for finite-lived intangible assets | $ 6,100 | $ 9,100 | $ 11,400 | ||||
Amortization expense for next twelve months | $ 2,900 | 2,900 | |||||
Amortization expense for two year | 2,500 | 2,500 | |||||
Amortization expense for three year | 2,100 | 2,100 | |||||
Amortization expense for four year | 1,800 | 1,800 | |||||
Amortization expense for five year | 1,600 | 1,600 | |||||
Asset impairment charges | $ 2,400 | 862,544 | 0 | $ 581,380 | |||
Carrying values of the Company's trade names | $ 94,680 | 94,680 | 383,737 | ||||
Impairment, Intangible Asset, Finite-Lived, Statement of Income or Comprehensive Income [Extensible Enumeration] | Asset impairment charges | ||||||
Impairment, Intangible Asset, Indefinite-Lived (Excluding Goodwill), Statement of Income or Comprehensive Income [Extensible Enumeration] | Impairment of Long-Lived Assets to be Disposed of | ||||||
Customer Relationships [Member] | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Asset impairment charges | $ 4,900 | ||||||
Trade Names [Member] | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Asset impairment charges | $ 11,000 | $ 135,200 | |||||
Non-Cash Pre-Tax Trade Name [Member] | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Asset impairment charges | 289,000 | ||||||
Amscan Trade Name [Member] | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Asset impairment charges | 26,000 | ||||||
Ancillary Business [Member] | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Asset impairment charges | 900 | ||||||
Party City Holdings Inc [Member] | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Asset impairment charges | 262,000 | ||||||
Carrying values of the Company's trade names | $ 94,700 | $ 94,700 | $ 383,800 |
Current and Long-Term Obligatio
Current and Long-Term Obligations - Presentational Note - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||||
May 09, 2023 | Apr. 21, 2023 | Jan. 17, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Mar. 30, 2023 | |
Debt Instrument [Line Items] | ||||||
Aggregate principal amount outstanding | $ 1,331,003 | $ 1,373 | ||||
Subsequent Event [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Additional principal outstanding, percentage | 0.50% | |||||
Long-Term Debt [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Aggregate principal amount outstanding | $ 1,300,000 | |||||
6.125% Senior Notes due 2023 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate | 6.125% | 6.125% | ||||
Debt instrument maturity period | 2023 | 2023 | ||||
6.125% Senior Notes due 2023 [Member] | Subsequent Event [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate | 6.125% | |||||
Debt instrument maturity period | 2023 | |||||
8.750% Senior Secured First Lien Notes Due 2026 [Member] | Subsequent Event [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate | 8.75% | |||||
Debt instrument maturity period | 2026 | |||||
6.625% Senior Notes due 2026 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate | 6.625% | 6.625% | ||||
Debt instrument maturity period | 2026 | 2026 | ||||
6.625% Senior Notes due 2026 [Member] | Subsequent Event [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate | 6.625% | |||||
Debt instrument maturity period | 2026 | |||||
15.00% Senior Notes due 2025 [Member] | Subsequent Event [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate | 15% | |||||
10.00% Senior Notes due 2025 [Member] | Subsequent Event [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate | 10% | |||||
Senior Secured First Lien Floating Rate Notes Due Two Thousand Twenty Five | Subsequent Event [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument maturity period | 2025 | |||||
15.00% PIK/Cash Senior Secured First Lien Notes due 2025 | Subsequent Event [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate | 15% | |||||
Debt instrument maturity period | 2025 | |||||
Additional payments in-kind | $ 600 | |||||
10.00% PIK/Cash Senior Secured Second Lien Notes due 2026 | Subsequent Event [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate | 10% | |||||
Debt instrument maturity period | 2026 | |||||
Additional payments in-kind | $ 500 |
Current and Long-Term Debt Ob_3
Current and Long-Term Debt Obligations - Prepetition ABL Facility - Additional Information (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | ||||
Jul. 19, 2022 | May 07, 2021 | Feb. 28, 2021 | Dec. 31, 2022 | Mar. 31, 2023 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | ||||||
Commitment fee percentage | 0.25% | |||||
Line of credit facility, amount outstanding | $ 360,745,000 | $ 84,181,000 | ||||
Minimum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Commitment fee percentage | 0.50% | |||||
Maximum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Commitment fee percentage | 1% | |||||
Alternate Base Interest Rate Loans [Member] | Minimum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 1.50% | |||||
Alternate Base Interest Rate Loans [Member] | Maximum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 1.75% | |||||
Filo Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 5.55% | 1.75% | ||||
Asset based credit facility | $ 17,100,000 | |||||
Secured Overnight Financing Rate SOFR [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 1% | |||||
Revolving Credit Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Credit facility current borrowing capacity | $ 475,000,000 | |||||
Line of credit facility, amount outstanding | $ 361,700,000 | $ 87,100,000 | ||||
Interest rates | 6.85% | 2.64% | ||||
Outstanding letter of credit | $ 37,900,000 | $ 24,900,000 | ||||
Line of credit facility, remaining borrowing capacity | $ 75,400,000 | $ 192,400,000 | ||||
Revolving Credit Facility [Member] | Secured Overnight Financing Rate SOFR [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 2.75% | |||||
Letter Of Credit [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Outstanding letter of credit | $ 37,900,000 | |||||
8.75% Senior Secured First Lien Notes due 2026 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate | 8.75% | 8.75% | ||||
Fixed Rate Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Credit facility current borrowing capacity | $ 640,000 | |||||
Debt instrument maturity, year and month | 2026-02 | |||||
Credit facility borrowing maximum capacity | $ 475,000,000 | |||||
Third-party fees | $ 2,400,000 | |||||
ABL Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility, excess availability | $ 46,000 | |||||
Percentage of total line cap | 10% | |||||
Anagram ABL Credit Agreement [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Credit facility current borrowing capacity | $ 15,000,000 | |||||
Unamortized financing costs | $ 800,000 | |||||
Line of credit facility, amount outstanding | $ 11,400,000 | |||||
Anagram ABL Credit Agreement [Member] | Revolving Credit Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument maturity, year and month | 2024-05 | |||||
Interest rate description | All revolving loans would bear interest, at Anagram’s election, at a per annum rate equal to either (a) a base rate, which represented for any day a rate equal to the greater of (i) the prime rate on such day subject to a 0% floor, (ii) the federal funds rate plus 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%. | |||||
Line of credit facility, amount outstanding | $ 3,000,000 | $ 0 | ||||
Anagram ABL Credit Agreement [Member] | Revolving Credit Facility [Member] | Alternate Base Interest Rate Loans [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 2.50% | |||||
Anagram ABL Credit Agreement [Member] | Revolving Credit Facility [Member] | LIBOR [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 0.50% | |||||
Anagram ABL Credit Agreement [Member] | Revolving Credit Facility [Member] | Federal Fund Rate [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 0.50% | |||||
Anagram ABL Credit Agreement [Member] | Revolving Credit Facility [Member] | Prime Rate [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 0% | |||||
Anagram ABL Credit Agreement [Member] | Revolving Credit Facility [Member] | One-half of One Percent Margin [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 1.50% | |||||
Anagram ABL Credit Agreement [Member] | Letter Of Credit [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Credit facility borrowing maximum capacity | $ 3,000,000 | |||||
Prepetition ABL Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Percentage of total line cap | 10% | |||||
Unamortized financing costs | $ 3,200,000 | $ 2,900,000 | ||||
Line of credit facility, amount outstanding | $ 368,200,000 | |||||
Prepetition ABL Facility [Member] | Subsequent Event [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Unamortized financing costs | $ 3,100,000 | |||||
Prepetition ABL Facility [Member] | Minimum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Credit facility current borrowing capacity | 475,000,000 | |||||
Basis spread on variable rate | 0.50% | |||||
Prepetition ABL Facility [Member] | Maximum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Credit facility borrowing maximum capacity | $ 562,100,000 | |||||
Basis spread on variable rate | 0.75% | |||||
Line of credit facility, excess availability | $ 46,000,000 | |||||
Prepetition ABL Facility [Member] | Federal Fund Rate [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 0.50% | |||||
Prepetition ABL Facility [Member] | Revolving Credit Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility, excess availability | $ 40,000,000 | |||||
Prepetition ABL Facility [Member] | Revolving Credit Facility [Member] | Secured Overnight Financing Rate SOFR [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Basis spread on variable rate | 0.10% |
Current and Long-Term Obligat_2
Current and Long-Term Obligations - Summary of Long-Term Obligations (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Total long-term obligations, Principal Amount | $ 1,258,394 | |
Total long-term obligations, Gross Carrying Amount | 1,358,583 | |
Total long term obligations, Deferred Financing Costs | (16,446) | |
Total long-term obligations, Net Carrying Amount | 1,342,137 | $ 1,352,562 |
Less: current portion, Gross Carrying Amount | (1,347,449) | |
Less: current portion, Deferred Financing Costs | 16,446 | |
Less: current portion, Net Carrying Amount | (1,331,003) | (1,373) |
Less: current portion, Principal Amount | (1,247,260) | |
Long-term obligations excluding current portion, Principal Amount | 11,134 | |
Long-term obligations excluding current portion, Gross Carrying Amount | 11,134 | |
Long-term obligations excluding current portion, Deferred Financing | 0 | |
Long-term obligations excluding current portion, Net Carrying Amount | 11,134 | 1,351,189 |
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 | (13,494) | |
Total long-term obligations, Net Carrying Amount | 736,506 | 732,957 |
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 | (35) | |
Total long-term obligations, Net Carrying Amount | 22,889 | 22,834 |
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 | (519) | |
Total long-term obligations, Net Carrying Amount | 91,735 | 91,591 |
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 | 188,842 | |
Total long term obligations, Deferred Financing Costs | 0 | |
Total long-term obligations, Net Carrying Amount | 188,842 | 198,004 |
First Lien Anagram Notes due 2025 [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term obligations, Principal Amount | 121,666 | |
Total long-term obligations, Gross Carrying Amount | 148,446 | |
Total long term obligations, Deferred Financing Costs | (1,574) | |
Total long-term obligations, Net Carrying Amount | 146,872 | 149,569 |
Second Lien Anagram Notes due 2026 [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term obligations, Principal Amount | 98,293 | |
Total long-term obligations, Gross Carrying Amount | 144,529 | |
Total long term obligations, Deferred Financing Costs | (824) | |
Total long-term obligations, Net Carrying Amount | 143,705 | 144,619 |
Finance lease obligations [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term obligations, Principal Amount | 11,588 | |
Total long-term obligations, Gross Carrying Amount | 11,588 | |
Total long term obligations, Deferred Financing Costs | 0 | |
Total long-term obligations, Net Carrying Amount | $ 11,588 | $ 12,988 |
Current and Long-Term Obligat_3
Current and Long-Term Obligations - Summary of Long-Term Obligations (Parenthetical) (Detail) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
8.75% Senior Secured First Lien Notes due 2026 [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 8.75% | 8.75% |
Debt instrument maturity period | 2026 | 2026 |
6.125% Senior Notes due 2023 [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 6.125% | 6.125% |
Debt instrument maturity period | 2023 | 2023 |
6.625% Senior Notes due 2026 [Member] | ||
Debt Instrument [Line Items] | ||
Interest 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 |
Current and Long-Term Obligat_4
Current and Long-Term Obligations - Senior Notes - Due 2026 - Additional Information (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | ||||
Oct. 12, 2023 | Jul. 30, 2020 | Feb. 28, 2021 | Dec. 31, 2022 | Mar. 31, 2023 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | ||||||
Aggregate principal amount | $ 1,258,394,000 | |||||
Revolving Credit Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Outstanding letter of credit | 37,900,000 | $ 24,900,000 | ||||
Credit facility current borrowing capacity | 475,000,000 | |||||
Letter of Credit [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Outstanding letter of credit | $ 37,900,000 | |||||
New PCHI Shares [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate | 0.30% | |||||
Subsequent Event [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Shares outstanding on effective date | 100% | |||||
Subsequent Event [Member] | New PCHI Shares [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Shares outstanding on effective date | 100% | |||||
Alternate Base Interest Rate Loans [Member] | Maximum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | |||||
Alternate Base Interest Rate Loans [Member] | Minimum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | |||||
Fixed Rate Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument maturity, year and month | 2026-02 | |||||
Deferred finance costs net | $ 2,400,000 | |||||
Credit facility current borrowing capacity | 640,000 | |||||
Credit facility borrowing maximum capacity | 475,000,000 | |||||
6.625% Senior Notes due 2026 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate | 6.625% | |||||
6.625% Senior Notes due 2026 [Member] | Senior Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate | 6.625% | |||||
Debt instrument maturity date | Aug. 01, 2026 | |||||
Debt instrument, frequency of periodic payment | semi-annually | |||||
Outstanding principal amount cancelled | $ 92,300,000 | |||||
6.625% Senior Notes due 2026 [Member] | Senior Notes [Member] | Subsequent Event [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Unamortized financing costs | $ 500,000 | |||||
8.75% Senior Secured First Lien Notes due 2026 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate | 8.75% | |||||
8.75% Senior Secured First Lien Notes due 2026 [Member] | Fixed Rate Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Aggregate principal amount | $ 750,000,000 | |||||
Interest rate | 8.75% | |||||
Debt instrument maturity, year and month | 2026-02 | |||||
Deferred finance costs net | $ 19,000,000 | |||||
Debt Instrument, Payment Terms | Interest on the Fixed Rate Notes was payable semi-annually in arrears on February 15th and August 15th of each year. The Fixed Rate Notes were guaranteed, jointly and severally, on a senior secured basis by each of Holdings’ existing and future domestic subsidiaries. | |||||
Debt instrument, frequency of periodic payment | semi-annually | |||||
Outstanding principal amount | $ 750,000,000 | |||||
8.75% Senior Secured First Lien Notes due 2026 [Member] | Fixed Rate Notes [Member] | New PCHI Shares [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Shares outstanding on effective date | 100% | |||||
8.75% Senior Secured First Lien Notes due 2026 [Member] | Fixed Rate Notes [Member] | Subsequent Event [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Unamortized financing costs | $ 13,300,000 | |||||
Term Loan Credit Agreement [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Repayments Of Long Term Debt | $ 694,200,000 | |||||
Rights Offering [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Outstanding principal amount cancelled | $ 75,000,000 | $ 75,000,000 | ||||
Rights Offering [Member] | New PCHI Shares [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate | 2.70% | |||||
Rights Offering [Member] | Subsequent Event [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Outstanding principal amount cancelled | $ 75,000,000 |
Current and Long-Term Obligat_5
Current and Long-Term Obligations - Senior Notes - Due 2023 - Additional Information (Detail) - 6.125% Senior Notes due 2023 [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Mar. 31, 2023 | |
Debt Instrument [Line Items] | ||
Interest rate | 6.125% | |
Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate | 6.125% | |
Debt instrument maturity date | Aug. 15, 2023 | |
Debt instrument, frequency of periodic payment | semi-annually | |
Outstanding principal amount cancelled | $ 22,900 | |
Senior Notes [Member] | Subsequent Event [Member] | ||
Debt Instrument [Line Items] | ||
Unamortized financing costs | $ 100 |
Current and Long-Term Obligat_6
Current and Long-Term Obligations - First Lien Party City Notes, First Lien Anagram Notes, Second Lien Anagram Notes - Additional Information (Detail) | 1 Months Ended | 12 Months Ended | ||||||||||
Oct. 12, 2023 USD ($) | May 09, 2023 USD ($) | Apr. 21, 2023 | Jan. 17, 2023 | Aug. 18, 2022 USD ($) | Aug. 15, 2022 | Jul. 30, 2020 USD ($) BasisPoint $ / shares shares | Feb. 28, 2021 USD ($) | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 $ / shares | Dec. 31, 2020 USD ($) | Mar. 21, 2023 USD ($) | |
Debt Instrument [Line Items] | ||||||||||||
Aggregate principal amount | $ 1,258,394,000 | |||||||||||
Common stock, par value | $ / shares | $ 0.01 | $ 0.01 | ||||||||||
Debt instrument consent fee | $ 1,500,000 | |||||||||||
Payment date of debt instrument consent fee | Aug. 18, 2022 | |||||||||||
Subsequent Event [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Shares outstanding on effective date | 100% | |||||||||||
Additional principal outstanding, percentage | 0.50% | |||||||||||
Rights Offering [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Aggregate principal amount | $ 75,000,000 | $ 75,000,000 | ||||||||||
Rights Offering [Member] | Subsequent Event [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Aggregate principal amount | $ 75,000,000 | |||||||||||
New PCHI Shares [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate | 0.30% | |||||||||||
Shares Issued | shares | 36,879 | |||||||||||
New PCHI Shares [Member] | Subsequent Event [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Shares outstanding on effective date | 100% | |||||||||||
New PCHI Shares [Member] | Rights Offering [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate | 2.70% | |||||||||||
Shares Issued | shares | 363,462 | |||||||||||
Refinancing Transactions [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Shares 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 | $ 22,924,000 | |||||||||||
Interest rate | 6.125% | 6.125% | ||||||||||
Debt instrument maturity period | 2023 | 2023 | ||||||||||
6.125% Senior Notes due 2023 [Member] | Subsequent Event [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate | 6.125% | |||||||||||
Debt instrument maturity period | 2023 | |||||||||||
6.125% Senior Notes due 2023 [Member] | Refinancing Transactions [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Aggregate principal amount | $ 327,100,000 | |||||||||||
Interest rate | 6.125% | |||||||||||
Debt instrument maturity period | 2023 | |||||||||||
8.750% Senior Secured First Lien Notes Due 2026 [Member] | Subsequent Event [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate | 8.75% | |||||||||||
Debt instrument maturity period | 2026 | |||||||||||
6.625% Senior Notes due 2026 [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Aggregate principal amount | $ 92,254,000 | |||||||||||
Interest rate | 6.625% | 6.625% | ||||||||||
Debt instrument maturity period | 2026 | 2026 | ||||||||||
6.625% Senior Notes due 2026 [Member] | Subsequent Event [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate | 6.625% | |||||||||||
Debt instrument maturity period | 2026 | |||||||||||
6.625% Senior Notes due 2026 [Member] | Refinancing Transactions [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Aggregate principal amount | $ 392,700,000 | |||||||||||
Interest rate | 6.625% | |||||||||||
Debt instrument maturity period | 2026 | |||||||||||
Senior Secured First Lien Floating Rate Notes Due Two Thousand Twenty Five | Subsequent Event [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument maturity period | 2025 | |||||||||||
Senior Secured First Lien Floating Rate Notes Due Two Thousand Twenty Five | Refinancing Transactions [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Aggregate principal amount | $ 156,700,000 | |||||||||||
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 | $ 84,700,000 | |||||||||||
Interest rate | 10% | |||||||||||
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 | $ 110,000,000 | |||||||||||
Interest rate | 15% | |||||||||||
Debt instrument maturity period | 2025 | |||||||||||
First Lien Party City Notes | Refinancing Transactions [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Aggregate principal amount | $ 5,000,000 | |||||||||||
First Lien Party City Notes - due 2025 [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Outstanding principal amount | $ 161,700,000 | |||||||||||
First Lien Party City Notes - due 2025 [Member] | New PCHI Shares [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Shares outstanding on effective date | 100% | |||||||||||
First Lien Party City Notes - due 2025 [Member] | Refinancing Transactions [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Aggregate principal amount | $ 161,700,000 | |||||||||||
Debt instrument maturity date | Jul. 15, 2025 | |||||||||||
Credit adjustment carrying amount | $ 27,200,000 | |||||||||||
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 accrued from the Settlement Date at a floating rate equal to the 6-month LIBOR 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 Party City Notes Due2025 [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Aggregate principal amount | $ 161,669,000 | |||||||||||
Debt instrument maturity period | 2025 | 2025 | ||||||||||
First Lien Anagram Notes - due 2025 [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Gain on restructuring of debt | $ 273,100,000 | |||||||||||
Third-party fees incurred | $ 18,900,000 | |||||||||||
Common stock issued in exchange | 27,000,000 | |||||||||||
Cash received from participants in the exchange | 39,500,000 | |||||||||||
Debt instrument, principal amount notes exchanged | 44,500 | |||||||||||
Debt instrument undiscounted value including interest expense | 82,200,000 | |||||||||||
Carrying amount of restructured debt | $ 32,300,000 | |||||||||||
Effective interest rate | 3.50% | |||||||||||
Principal balance of notes not participants in exchange | $ 50,500,000 | |||||||||||
Principal balance of notes after netting | 45,700,000 | |||||||||||
First Lien Anagram Notes - due 2025 [Member] | Refinancing Transactions [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Aggregate principal amount | $ 110,000,000 | |||||||||||
Debt instrument maturity date | Aug. 15, 2025 | |||||||||||
Debt instrument, description of variable rate basis | Interest on the First Lien Anagram Notes accrued 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% | |||||||||||
Debt instrument, interest rate payable on incremental principal | 5% | |||||||||||
Second Lien Anagram Notes due 2026 [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Aggregate principal amount | $ 98,293,000 | |||||||||||
Debt instrument maturity period | 2026 | 2026 | ||||||||||
Second Lien Anagram Notes - due 2026 [Member] | Refinancing Transactions [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Aggregate principal amount | $ 84,700,000 | |||||||||||
Debt instrument maturity date | Aug. 15, 2026 | |||||||||||
Debt instrument, description of variable rate basis | Interest on the Second Lien Anagram Notes accrued 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% | |||||||||||
Debt instrument, interest rate payable on incremental principal | 5% | |||||||||||
First Lien Anagram Notes [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Percentage of debt instrument holders | 99.24% | |||||||||||
First Lien Anagram Notes [Member] | Subsequent Event [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Additional payments in-kind | $ 600,000 | |||||||||||
Second Lien Anagram Notes [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Percentage of debt instrument holders | 97.61% | |||||||||||
Second Lien Anagram Notes [Member] | Subsequent Event [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Additional payments in-kind | $ 500,000 |
Current and Long-Term Debt Ob_4
Current and Long-Term Debt Obligations - DIP Facility - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||||||
Jan. 18, 2023 | Dec. 31, 2022 | Oct. 12, 2023 | Jan. 19, 2023 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | |||||||
Line of credit facility, amount outstanding | $ 360,745 | $ 84,181 | |||||
Common stock, shares outstanding | 113,509,223 | 112,170,944 | 110,781,613 | 94,461,576 | |||
Undrawn commitment fee | 0.25% | ||||||
New PCHI Shares [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Issuance of shares | 36,879 | ||||||
Secured Overnight Financing Rate SOFR [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 1% | ||||||
Subsequent Event [Member] | New PCHI Shares [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Common stock, shares outstanding | 13,374,519 | ||||||
Debtor In Possession Term Loan Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Commitment fee description | DIP Facility provided for the following premiums and fees, as further described in the DIP Credit Agreement: (i) an upfront commitment premium equal to 8.00% of the total commitments that is payable in cash or paid-in-kind, i.e., as additional loans, (ii) an undrawn commitment fee equal to 0.50% per annum that is payable in cash, and (iii) a backstop commitment premium payable, at the election of the backstopping lenders, in (a) equity (or equity-linked securities) or (b) cash in an amount equal to 10.00% of the outstanding term loans held by such as of the date the DIP Facility terminates. | ||||||
Debtor In Possession Term Loan Facility [Member] | New PCHI Shares [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Issuance of shares | 9,339,564 | ||||||
Debtor In Possession Term Loan Facility [Member] | Subsequent Event [Member] | |||||||
Debt Instrument [Line Items] | |||||||
DIP facility debtors proposed date | Jan. 18, 2023 | ||||||
DIP facility debtors proposed, amount arranged | $ 150,000 | ||||||
Debt initial draw amount | $ 75,000 | ||||||
Debt second draw amount | $ 75,000 | ||||||
Line of credit facility, amount outstanding | $ 138,800 | ||||||
Upfront commitment premium, percentage | 8% | ||||||
Undrawn commitment fee | 0.50% | ||||||
Outstanding term loan, percentage | 10% | ||||||
Debtor In Possession Term Loan Facility [Member] | Subsequent Event [Member] | New PCHI Shares [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Common stock, shares outstanding | 9,339,564 | ||||||
Debtor In Possession Term Loan Facility [Member] | Subsequent Event [Member] | Secured Overnight Financing Rate SOFR [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 10% | ||||||
Debtor In Possession Term Loan Facility [Member] | Subsequent Event [Member] | Base Rate [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 9% |
Current and Long-Term Debt Ob_5
Current and Long-Term Debt Obligations - Finance Lease Obligations and Other - Additional Information (Detail) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Disclosure [Abstract] | ||
Finance lease obligations | $ 11.6 | $ 13 |
Finance Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Other Liabilities, Noncurrent | Other Liabilities, Noncurrent |
Contractual Obligation matures in greater than twelve months | $ 1,300 |
Current and Long-Term Debt Ob_6
Current and Long-Term Debt Obligations - Maturities of Long- Term Obligations (Detail) $ in Thousands | Dec. 31, 2022 USD ($) |
Long-Term Debt Obligations | |
2023 | $ 1,346,995 |
2024 | 0 |
2025 | 0 |
2026 | 0 |
2027 | 0 |
Thereafter | 0 |
Long-term obligations | 1,346,995 |
Finance Lease Obligations | |
2023 | 454 |
2024 | 449 |
2025 | 365 |
2026 | 407 |
2027 | 451 |
Thereafter | 9,462 |
Total finance lease obligations | 11,588 |
Totals | |
2023 | 1,347,449 |
2024 | 449 |
2025 | 365 |
2026 | 407 |
2027 | 451 |
Thereafter | 9,462 |
Total long-term obligations and finance lease obligations | $ 1,358,583 |
Loans and Notes Payable - Other
Loans and Notes Payable - Other Credit Agreements - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Line of credit facility, amount outstanding | $ 360,745 | $ 84,181 |
Capital Stock - Additional Info
Capital Stock - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Equity [Abstract] | |||
Authorized capital stock | 300,000,000 | ||
Common stock, par value | $ 0.01 | $ 0.01 | |
Preferred stock, par value | $ 0.01 | ||
Authorized preferred stock | 15,000,000 | ||
Number of acquired treasury shares | 1,291,315 | 706,458 | 21,685 |
Value of acquired treasury shares | $ 2,382 | $ 5,351 | $ 96 |
Capital Stock - Summary Changes
Capital Stock - Summary Changes in Common Shares Outstanding (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Equity [Abstract] | |||
Common Shares Outstanding, Beginning Balance | 112,170,944 | 110,781,613 | 94,461,576 |
Issuance of stock as part of debt refinancing | 15,942,551 | ||
Vesting of shares to directors | 139,154 | 353,911 | 81,843 |
Treasury stock purchases | (1,291,315) | (706,458) | (21,685) |
Vesting of restricted stock and restricted stock units | 2,499,213 | 1,670,995 | 203,328 |
Exercise of warrants | 366,503 | ||
Cancellation of restricted stock awards | (8,773) | (986,420) | |
Exercise of stock options | 0 | 690,800 | 114,000 |
Common Shares Outstanding, Ending Balance | 113,509,223 | 112,170,944 | 110,781,613 |
Other (Income) Expense, Net - S
Other (Income) Expense, Net - Summary of Other Expense (Income), Net (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Other Income and Expenses [Abstract] | |||
Undistributed (income) loss in equity method investments | $ (1,467) | $ (220) | $ 333 |
Foreign currency gain | (1,962) | (953) | (1,058) |
Corporate development expenses | 0 | 561 | 2,185 |
(Gain) loss on sale of assets | (157) | 143 | 95 |
Other, net | (203) | (145) | 2,160 |
Other (income) expense, net | $ (3,789) | $ (614) | $ 3,715 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - Subsidiary Issuer [Member] - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Defined contribution plan, expenses recognized | $ 8,200 | $ 9,500 | $ 8,600 |
Minimum [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Employer matching contribution of employees contribution | 50% | ||
Percentage of eligible employee contributions | 2% | ||
Maximum [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Employer matching contribution of employees contribution | 100% | ||
Percentage of eligible employee contributions | 3% |
Equity Incentive Plans - Additi
Equity Incentive Plans - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||
Jul. 18, 2020 | Jun. 30, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Performance-based options vested | 0 | ||||
Intrinsic value of options exercised | $ 1,300 | $ 300 | |||
Cash proceeds | $ 0 | $ 3,680 | $ 147 | ||
Exercise of stock options | 0 | 690,800 | 114,000 | ||
Time Based Stock Options [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Compensation expense | $ 200 | $ 400 | $ 800 | ||
Options granted | 0 | ||||
Options vested granted percentage | 20% | ||||
Unrecognized compensation cost | $ 100 | ||||
Unrecognized compensation cost weighted-average recognition period | 9 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 | $ 7,800 | ||||
Options outstanding | 2,539,600 | ||||
Options, Average grant date fair value | $ 3.09 | ||||
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 | 2,602,529 | 1,361,289 | 614,939 | ||
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] | |||||
Unrecognized compensation cost weighted-average recognition period | 1 year 9 months 18 days | ||||
Compensation expense | $ 5,200 | $ 2,600 | $ 2,100 | ||
Unrecognized compensation cost | $ 8,000 | ||||
Performance-based Restricted Stock Units [Member] | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Options granted | 1,443,692 | ||||
Options vested granted percentage | 0.00333% | ||||
Unrecognized compensation cost | $ 300 | ||||
Unrecognized compensation cost weighted-average recognition period | 8 months 12 days | ||||
Compensation expense | $ 1,300 | $ 3,800 | $ 1,500 | ||
Options, Average grant date fair value | $ 1.02 | ||||
Share based stock awards vesting period | 3 years | 3 years | 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 | $ 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 | 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 | 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 | $ 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 - Summar
Equity Incentive Plans - Summary of Changes in Outstanding Options (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Options exercised | 0 | (690,800) | (114,000) |
Performance Based Stock Options [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Options outstanding beginning balance | 1,032,219 | ||
Options granted | 0 | ||
Options exercised | 0 | ||
Options forfeited | (146,357) | ||
Options outstanding ending balance | 885,862 | 1,032,219 | |
Options exercisable | 851,582 | ||
Expected to vest (excluding performance-based options) | 34,280 | ||
Average exercise price outstanding beginning balance | $ 10.18 | ||
Average exercise price granted | 0 | ||
Average exercise price exercised | 0 | ||
Average exercise price forfeited | 8.52 | ||
Average exercise price outstanding ending balance | 10.45 | $ 10.18 | |
Average exercise price exercisable | 10.37 | ||
Average exercise price expected to vest | $ 12.43 | ||
Aggregate intrinsic value outstanding beginning balance | $ (4,754) | ||
Aggregate intrinsic value outstanding ending balance | 0 | $ (4,754) | |
Aggregate intrinsic value exercisable | 0 | ||
Aggregate intrinsic value expected to vest | $ 0 | ||
Weighted average remaining contractual term outstanding | 3 years 10 months 24 days | 4 years 6 months | |
Weighted average remaining contractual term exercisable | 3 years 10 months 24 days | ||
Weighted average remaining contractual term expected to vest | 5 years 8 months 12 days |
Equity Incentive Plans - Fair V
Equity Incentive Plans - Fair Value of Options Granted (Detail) - Performance-based Restricted Stock Units [Member] | 12 Months Ended |
Dec. 31, 2022 $ / shares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Expected dividend rate | 0% |
Risk-free interest rate, minimum | 0.30% |
Risk-free interest rate, maximum | 2.99% |
Volatility, minimum | 106.31% |
Volatility, maximum | 140.02% |
Weighted average grant date fair value | $ 1.02 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2017 | |
Income Tax [Line Items] | ||||
Cancellation of indebtedness income | $ 552,700 | |||
Cancellation of indebtedness income excluded from income tax | 501,000 | |||
Reduction in tax due to discharge of indebtedness | 217,500 | |||
Tax effect due to discharge of indebtedness | 47,700 | |||
Reduction in tax with permanent differences | 283,500 | |||
Tax effect with permanent differences | 59,500 | |||
Net operating loss carryforwards | 500 | |||
Foreign tax credit carryforwards | 4,100 | |||
Other assets, net | 250,164 | $ 306,374 | ||
Deferred income tax liabilities | 9,128 | 29,195 | ||
Valuation allowance | 120,417 | $ 12,608 | ||
Valuation allowance additions | $ 108,900 | |||
State tax credit carryforwards expiration year | 2023 | |||
Federal statutory rate | 21% | 21% | 21% | 35% |
Effective rate benefit | 1.70% | 2.90% | ||
Income tax reconciliation cancellation of debt | $ 59,500 | |||
Debt exchange – cancellation of debt | 0% | 0% | 8.70% | |
Goodwill, Impairment Loss | $ 568,600 | $ 0 | $ 401,400 | |
Goodwill Impairment Charge Tax Benefit Not Recognised | $ 468,800 | $ 336,200 | ||
Goodwill impairment impact on income tax rate | 10.30% | 0% | 10.30% | |
Transition tax | $ 4,200 | |||
Unrecognized tax benefits that would impact effective tax rate | 11,100 | $ 11,600 | ||
Accrued interest and penalties | $ 800 | $ 500 | ||
Minimum [Member] | ||||
Income Tax [Line Items] | ||||
Deferred tax assets operating loss carryforwards state and local expiration | 15 years | |||
Federal statutory rate | 5% | |||
Maximum [Member] | ||||
Income Tax [Line Items] | ||||
Deferred tax assets operating loss carryforwards state and local expiration | 20 years | |||
Tax adjustments | $ (1,000) | |||
Domestic Country | ||||
Income Tax [Line Items] | ||||
Net operating loss carryforwards | $ 6,600 | |||
Mexico | ||||
Income Tax [Line Items] | ||||
Net operating loss carryforwards | 1,500 | |||
Other Liabilities, Net [Member] | ||||
Income Tax [Line Items] | ||||
Deferred income tax liabilities | $ 9,100 | $ 29,200 |
Income Taxes - Summary of Domes
Income Taxes - Summary of Domestic and Foreign (Loss) Income Before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ (963,137) | $ 193 | $ (542,046) |
Foreign | 4,013 | (1,067) | (143,064) |
Loss before income taxes | $ (959,124) | $ (874) | $ (685,110) |
Income Taxes - Summary of Incom
Income Taxes - Summary of Income Tax (Benefit) Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Current: | |||
Federal | $ 2,032 | $ 9,491 | $ (61,528) |
State | 864 | 911 | (1,639) |
Foreign | 203 | 461 | 1,599 |
Total current income tax expense (benefit) | 3,099 | 10,863 | (61,568) |
Deferred: | |||
Federal | (18,888) | (6,707) | (70,440) |
State | (443) | 1,356 | (19,252) |
Foreign | (262) | 196 | (5,393) |
Total deferred income tax benefit | (19,593) | (5,155) | (95,085) |
Income tax (benefit) expense | $ (16,494) | $ 5,708 | $ (156,653) |
Income Taxes - Summary of Defer
Income Taxes - Summary of Deferred Income Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred income tax assets: | ||
Inventory reserves and capitalization | $ 13,914 | $ 20,007 |
Allowance for doubtful accounts | 2,246 | 1,884 |
Accrued liabilities | 9,863 | 9,624 |
Equity based compensation | 4,456 | 4,316 |
Federal tax loss carryforwards | 6,560 | 0 |
State tax loss carryforwards | 13,486 | 8,433 |
Foreign tax loss carryforwards | 1,487 | 2,586 |
Debt Exchange basis difference | 34,788 | 47,853 |
Section 163(j) Interest Limitation | 53,455 | 18,126 |
Lease Liabilities | 213,445 | 198,332 |
Amortization of goodwill and other assets | 11,893 | 0 |
Capitalized refinancing and other costs | 2,662 | 4,692 |
Other | 2,326 | 3,129 |
Deferred income tax assets before valuation allowances | 370,581 | 318,982 |
Less: valuation allowances | (120,417) | (12,608) |
Deferred income tax assets, net | 250,164 | 306,374 |
Deferred Tax Liabilities, Gross [Abstract] | ||
Depreciation | 49,048 | 42,548 |
Trade Name | 24,507 | 99,039 |
Amortization of goodwill and other assets | 0 | 13,065 |
Foreign earnings expected to be repatriated | 933 | 969 |
Lease Right of Use Assets | 182,487 | 175,942 |
Other | 2,317 | 4,006 |
Deferred income tax liabilities | 259,292 | 335,569 |
Net deferred income tax liabilities | $ 9,128 | $ 29,195 |
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||||
Tax provision at U.S. statutory income tax rate | 21% | 21% | 21% | 35% |
State income tax, net of federal income tax | (0.10%) | (205.00%) | 2.40% | |
Valuation allowances | (8.50%) | 23.10% | (2.70%) | |
GILTI and foreign-derived intangible income | (0.10%) | 83.80% | 0% | |
Foreign earnings | 0% | (37.50%) | 1.30% | |
U.S. — foreign rate differential | 0% | (35.30%) | 0.40% | |
CARES Act: 5-year NOL carryback | 0% | 0% | 2.90% | |
Debt exchange – cancellation of debt | 0% | 0% | 8.70% | |
Goodwill impairment | (10.30%) | 0% | (10.30%) | |
Uncertain tax positions | (0.10%) | (560.20%) | (1.40%) | |
Other | (0.20%) | 57% | 0.60% | |
Effective income tax rate | 1.70% | (653.10%) | 22.90% |
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Balance at beginning of year | $ 15,021 | $ 13,890 | $ 4,891 |
Increases related to current period tax positions | 485 | 3,759 | 8,186 |
Increases related to prior period tax positions | 735 | 3,885 | 1,061 |
Decreases related to settlements | (1,675) | (6,245) | 0 |
Decreases related to lapsing of statutes of limitations | 0 | (268) | (248) |
Balance at end of year | $ 14,566 | $ 15,021 | $ 13,890 |
Commitments, Contingencies an_3
Commitments, Contingencies and Related Party Transactions - Summary of Future Minimum Product Royalties (Detail) $ in Thousands | Dec. 31, 2022 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2023 | $ 15,692 |
2024 | 6,405 |
2025 | 1,010 |
Thereafter | 0 |
Total Future Minimum Royalty Payments | $ 23,107 |
Commitments, Contingencies an_4
Commitments, Contingencies and Related Party Transactions - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Product royalty expense | $ 36.9 | $ 33.1 | $ 33.3 |
Finished goods purchased | 82.2 | 59.5 | |
Purchases reflected in finished goods inventory | 16.1 | 30.4 | |
Finished goods inventory | $ 17.1 | $ 18.3 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 USD ($) Segment Customer | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of business segments | Segment | 2 | ||
Export sales | $ | $ 38 | $ 55.8 | $ 19.8 |
Wholesale Segment [Member] | |||
Segment Reporting Information [Line Items] | |||
Number of Customer | Customer | 1 | ||
Wholesale Segment [Member] | Revenue, Segment Benchmark [Member] | Customer Concentration Risk [Member] | |||
Segment Reporting Information [Line Items] | |||
Concentration risk percentage | 12% |
Segment Information - Schedule
Segment Information - Schedule of Company's Industry Segment Data (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues: | |||
Net revenues | $ 2,169,878 | $ 2,171,060 | $ 1,850,690 |
Loss from operations | (860,266) | 84,632 | (877,501) |
Interest expense, net | 102,647 | 87,226 | 77,043 |
Other (income) expense, net | (3,789) | (614) | 3,715 |
Gain on debt refinancing | 0 | (1,106) | (273,149) |
Loss before income taxes | (959,124) | (874) | (685,110) |
Depreciation and amortization | 63,031 | 65,610 | 76,506 |
Capital expenditures | (97,539) | (79,222) | (51,128) |
Total assets | 2,019,997 | 2,711,900 | 2,806,455 |
Eliminations [Member] | |||
Revenues: | |||
Net revenues | (788,665) | (589,562) | (471,863) |
Net Sales [Member] | Operating Segments [Member] | |||
Revenues: | |||
Net revenues | 2,958,543 | 2,760,622 | 2,322,553 |
Wholesale [Member] | |||
Revenues: | |||
Loss from operations | (405,989) | (28,492) | (303,663) |
Depreciation and amortization | 19,160 | 21,778 | 25,813 |
Capital expenditures | (15,457) | (22,572) | (22,206) |
Total assets | 1,137,772 | 1,355,010 | 1,123,322 |
Wholesale [Member] | Operating Segments [Member] | |||
Revenues: | |||
Net revenues | 394,252 | 401,074 | 468,365 |
Wholesale [Member] | Eliminations [Member] | |||
Revenues: | |||
Net revenues | (788,665) | (589,562) | (471,863) |
Wholesale [Member] | Net Sales [Member] | Operating Segments [Member] | |||
Revenues: | |||
Net revenues | 1,182,917 | 990,636 | 940,228 |
Retail [Member] | |||
Revenues: | |||
Loss from operations | (454,277) | 113,124 | (573,838) |
Depreciation and amortization | 43,871 | 43,832 | 50,693 |
Capital expenditures | (82,082) | (56,650) | (28,922) |
Total assets | 882,225 | 1,356,890 | 1,683,133 |
Retail [Member] | Operating Segments [Member] | |||
Revenues: | |||
Net revenues | 1,775,626 | 1,769,986 | 1,382,325 |
Retail [Member] | Net Sales [Member] | |||
Revenues: | |||
Net revenues | 1,775,626 | 1,769,987 | 1,382,325 |
Retail [Member] | Net Sales [Member] | Operating Segments [Member] | |||
Revenues: | |||
Net revenues | $ 1,775,626 | $ 1,769,986 | $ 1,382,325 |
Segment Information - Schedul_2
Segment Information - Schedule of Company's Geographic Segments (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues: | |||
Net sales to unaffiliated customers | $ 2,169,878 | $ 2,171,060 | $ 1,850,690 |
Total revenues | 2,169,878 | 2,171,060 | 1,850,690 |
Loss from operations | (860,266) | 84,632 | (877,501) |
Interest expense, net | 102,647 | 87,226 | 77,043 |
Other income, net | (3,789) | (1,720) | (269,434) |
Loss before income taxes | (959,124) | (874) | (685,110) |
Depreciation and amortization | 63,031 | 65,610 | 76,506 |
Total long-lived assets (excluding goodwill, trade names and other intangible assets, net) | 272,101 | 247,821 | 128,631 |
Total assets | 2,019,997 | 2,711,900 | 2,806,455 |
Reportable Geographical Components [Member] | Domestic [Member] | |||
Revenues: | |||
Net sales to unaffiliated customers | 2,109,888 | 2,095,849 | 1,581,294 |
Net sales between geographic areas | 12,007 | 17,798 | 167,945 |
Total revenues | 2,121,895 | 2,113,647 | 1,749,239 |
Loss from operations | (862,219) | 86,095 | (644,338) |
Depreciation and amortization | 61,587 | 63,755 | 70,586 |
Total long-lived assets (excluding goodwill, trade names and other intangible assets, net) | 266,830 | 242,396 | 103,885 |
Total assets | 1,961,675 | 2,657,333 | 2,518,490 |
Reportable Geographical Components [Member] | Foreign [Member] | |||
Revenues: | |||
Net sales to unaffiliated customers | 59,990 | 75,211 | 269,396 |
Net sales between geographic areas | 4,930 | 10,067 | 113,828 |
Total revenues | 64,920 | 85,278 | 383,224 |
Loss from operations | 1,954 | (1,463) | 14,189 |
Depreciation and amortization | 1,444 | 1,855 | 5,920 |
Total long-lived assets (excluding goodwill, trade names and other intangible assets, net) | 5,271 | 5,425 | 24,746 |
Total assets | 58,322 | 54,567 | 287,965 |
Eliminations [Member] | |||
Revenues: | |||
Net sales between geographic areas | (16,937) | (27,865) | (281,773) |
Total revenues | (16,937) | (27,865) | (281,773) |
Loss from operations | $ 0 | $ 0 | $ (247,352) |
Leases - Additional Information
Leases - Additional Information (Detail) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 USD ($) StoreLease | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Lessee, Lease, Description [Line Items] | |||
Number of unexpired store leases rejection closed | StoreLease | 68 | ||
Operating lease cost | $ 175.7 | $ 181.6 | $ 189.9 |
Variable lease cost | 27.6 | 27.1 | 27.4 |
Operating lease liabilities | 163.3 | 223.9 | 140.7 |
Right of use assets in exchange for operating lease liabilities | $ 144.8 | $ 101.7 | $ 70.5 |
Weighted average remaining lease term | 8 years | 5 years | |
Weighted average discount rate | 9.70% | 8.60% |
Leases - Future Cash flows for
Leases - Future Cash flows for the Company's operating leases (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
2023 | $ 194,180 | |
2024 | 169,205 | |
2025 | 165,829 | |
2026 | 132,144 | |
2027 | 106,834 | |
Thereafter | 414,668 | |
Total undiscounted cash flows | 1,182,860 | |
Less: Interest | (378,135) | |
Total operating lease liability | 804,725 | |
Less: Current portion of operating lease liability | (119,605) | $ (116,437) |
Long-term portion of operating lease liability | $ 685,120 | $ 655,875 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Carrying Amount and Fair Value (Detail) $ in Thousands | Dec. 31, 2022 USD ($) |
Debt Instrument [Line Items] | |
Debt Instrument Carrying Amount | $ 1,358,583 |
8.75% Senior Secured First Lien Notes - due 2026 [Member] | Senior Secured First Lien Notes [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument Carrying Amount | 750,000 |
Debt Instrument Fair Value | 213,750 |
6.125% Senior Notes - due 2023 [Member] | Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument Carrying Amount | 22,924 |
Debt Instrument Fair Value | 1,146 |
6.625% Senior Notes - due 2026 [Member] | Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument Carrying Amount | 92,254 |
Debt Instrument Fair Value | 3,133 |
First Lien Party City Notes - due 2025 [Member] | Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument Carrying Amount | 188,842 |
Debt Instrument Fair Value | 50,778 |
First Lien Anagram Notes - due 2025 [Member] | Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument Carrying Amount | 148,446 |
Debt Instrument Fair Value | 141,165 |
Second Lien Anagram Notes - due 2026 [Member] | Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument Carrying Amount | 144,529 |
Debt Instrument Fair Value | $ 95,096 |
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Foreign Currency Adjustments [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | $ 3,541 | $ (31,264) | $ (37,434) |
Other comprehensive income (loss) before reclassifications, net of income tax | (1,686) | (1,784) | 6,170 |
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 income (loss) to the condensed consolidated statements of operations and comprehensive income (loss) , net of income tax | 0 | 0 | |
Other comprehensive income | 34,805 | 6,170 | |
Ending balance | 1,855 | 3,541 | (31,264) |
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | 0 | 1,348 | 1,700 |
Other comprehensive income (loss) before reclassifications, net of income tax | 0 | 77 | (495) |
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 income (loss) to the condensed consolidated statements of operations and comprehensive income (loss) , net of income tax | (3) | 143 | |
Other comprehensive income | (1,348) | (352) | |
Ending balance | 0 | 0 | 1,348 |
Accumulated Other Comprehensive Loss [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | 3,541 | (29,916) | (35,734) |
Other comprehensive income (loss) before reclassifications, net of income tax | (1,686) | (1,707) | 5,675 |
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 income (loss) to the condensed consolidated statements of operations and comprehensive income (loss) , net of income tax | (3) | 143 | |
Other comprehensive income | 33,457 | 5,818 | |
Ending balance | $ 1,855 | $ 3,541 | $ (29,916) |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation of Revenue [Line Items] | ||
Allowance for doubtful accounts | $ 9.2 | $ 8.1 |
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% | |
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% | |
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 2,169,878 | $ 2,171,060 | $ 1,850,690 |
Wholesale Segment [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 394,252 | 401,073 | 468,365 |
Party City Stores [Member] | Retail Segment [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 1,724,044 | 1,734,261 | 1,374,680 |
Temporary Stores [Member] | Retail Segment [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 51,582 | 35,726 | 7,645 |
Net Sales [Member] | Retail Segment [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 1,775,626 | 1,769,987 | 1,382,325 |
Domestic | Wholesale Segment [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 255,369 | 263,661 | 238,936 |
International [Member] | Wholesale Segment [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 138,883 | $ 137,412 | $ 229,429 |
Kazzam, LLC - Additional Inform
Kazzam, LLC - Additional Information (Detail) - Kazzam LLC [Member] | Mar. 23, 2020 shares |
Schedule Of Equity Method Investments [Line Items] | |
Number of years for royalty on net service revenue | 3 years |
Maximum [Member] | |
Schedule Of Equity Method Investments [Line Items] | |
Warrant to purchase common stock | 1,000,000 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) - Subsequent Event [Member] - USD ($) $ in Millions | Mar. 18, 2024 | Mar. 31, 2023 |
Subsequent Event [Line Items] | ||
Proceeds from sale of equity interests | $ 5.4 | |
Proceeds from sale of assets | $ 7 |
Schedule I - Condensed Financ_2
Schedule I - Condensed Financial Information of Registrant - Condensed Balance Sheets (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
ASSETS | |||
Other assets (principally investment in and amounts due from wholly- owned subsidiaries) | $ 16,831 | $ 25,952 | |
Total assets | 2,019,997 | 2,711,900 | $ 2,806,455 |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Other liabilities (principally amounts due from wholly-owned subsidiaries) | 21,723 | 22,868 | |
Total liabilities | 2,877,824 | 2,629,186 | |
Stockholders' (deficit) equity: | |||
Common stock (Par value $0.01; 113,509,223 and 112,170,944 shares outstanding and 126,787,094 and 124,157,500 shares issued at December 31, 2022 and December 31, 2021, respectively) | 1,385 | 1,384 | |
Additional paid-in capital | 988,463 | 982,307 | |
Accumulated deficit | (1,514,615) | (571,985) | |
Accumulated other comprehensive income | 1,855 | 3,541 | |
Total stockholders' (deficit) equity before common stock held in treasury | (522,912) | 415,247 | |
Less: Common stock held in treasury, at cost (13,277,871 and 11,986,556 shares at December 31, 2022 and December 31, 2021 respectively) | (334,915) | (332,533) | |
Total liabilities and stockholders' (deficit) equity | 2,019,997 | 2,711,900 | |
Party City Holdco Inc. [Member] | |||
ASSETS | |||
Other assets (principally investment in and amounts due from wholly- owned subsidiaries) | 0 | 82,714 | |
Total assets | 0 | 82,714 | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Other liabilities (principally amounts due from wholly-owned subsidiaries) | 857,827 | 0 | |
Total liabilities | 857,827 | 0 | |
Stockholders' (deficit) equity: | |||
Common stock (Par value $0.01; 113,509,223 and 112,170,944 shares outstanding and 126,787,094 and 124,157,500 shares issued at December 31, 2022 and December 31, 2021, respectively) | 1,385 | 1,384 | |
Additional paid-in capital | 988,463 | 982,307 | |
Accumulated deficit | (1,514,615) | (571,985) | |
Accumulated other comprehensive income | 1,855 | 3,541 | |
Total stockholders' (deficit) equity before common stock held in treasury | (522,912) | 415,247 | |
Less: Common stock held in treasury, at cost (13,277,871 and 11,986,556 shares at December 31, 2022 and December 31, 2021 respectively) | (334,915) | (332,533) | |
Total stockholders' (deficit) equity | (857,827) | 82,714 | |
Total liabilities and stockholders' (deficit) equity | $ 0 | $ 82,714 |
Schedule I - Condensed Financ_3
Schedule I - Condensed Financial Information of Registrant - Condensed Balance Sheets (Parenthetical) (Detail) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Condensed Financial Statements, Captions [Line Items] | ||||
Common stock, par value | $ 0.01 | $ 0.01 | ||
Common stock, shares issued | 126,787,094 | 124,157,500 | ||
Common stock, shares outstanding | 113,509,223 | 112,170,944 | 110,781,613 | 94,461,576 |
Common stock held in treasury, shares at cost | 13,277,871 | 11,986,556 | ||
Party City Holdco Inc. [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Common stock, par value | $ 0.01 | |||
Common stock, shares issued | 126,787,094 | 124,157,500 | ||
Common stock, shares outstanding | 113,509,223 | 112,170,944 | ||
Common stock held in treasury, shares at cost | 13,277,871 | 11,986,556 |
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Condensed Income Statements Captions [Line Items] | |||
Net loss | $ (942,630) | $ (6,582) | $ (528,457) |
Net loss attributable to common shareholders of Party City Holdco Inc. | (942,630) | (6,528) | (528,238) |
Other comprehensive (loss) income, net | (1,686) | 33,780 | 5,791 |
Comprehensive (loss) income | (944,316) | 27,198 | (522,666) |
Comprehensive (loss) income attributable to common shareholders of Party City Holdco Inc. | (944,316) | 26,929 | (522,420) |
Party City Holdco Inc. [Member] | |||
Condensed Income Statements Captions [Line Items] | |||
Equity in net loss of subsidiaries | (942,630) | (6,528) | (528,238) |
Net loss | (942,630) | (6,528) | (528,238) |
Add: Net income attributable to redeemable securities holder | 0 | 0 | 0 |
Net loss attributable to common shareholders of Party City Holdco Inc. | (942,630) | (6,528) | (528,238) |
Other comprehensive (loss) income, net | (1,686) | 33,457 | 5,818 |
Comprehensive (loss) income | (944,316) | 26,929 | (522,420) |
Comprehensive income attributable to redeemable securities holder | 0 | 0 | 0 |
Comprehensive (loss) income attributable to common shareholders of Party City Holdco Inc. | $ (944,316) | $ 26,929 | $ (522,420) |
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows provided by (used in) operating activities: | |||
Net loss | $ (942,630) | $ (6,582) | $ (528,457) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | |||
Change in due to/from affiliates | (31,446) | 85,306 | 28,002 |
Net cash (used in) provided by operating activities | (151,935) | 51,935 | 77,200 |
Cash flows provided by (used in) financing activities: | |||
Treasury stock purchases | (2,382) | (5,351) | (96) |
Exercise of stock options | 0 | 3,680 | 147 |
Net cash (used in) provided by financing activities | 259,538 | (89,125) | 93,704 |
Net change in cash and cash equivalents | 11,507 | (102,395) | 116,133 |
Cash and cash equivalents at beginning of period | 47,914 | ||
Cash and cash equivalents at end of period | 59,421 | 47,914 | |
Party City Holdco Inc. [Member] | |||
Cash flows provided by (used in) operating activities: | |||
Net loss | (942,630) | (6,528) | (528,238) |
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | |||
Equity in net loss of subsidiaries | 942,630 | 6,528 | 528,238 |
Change in due to/from affiliates | 2,382 | 1,678 | (49) |
Net cash (used in) provided by operating activities | 2,382 | 1,678 | (49) |
Cash flows provided by (used in) financing activities: | |||
Treasury stock purchases | (2,382) | (5,351) | (96) |
Exercise of stock options | 0 | 3,673 | 145 |
Net cash (used in) provided by financing activities | (2,382) | (1,678) | 49 |
Net change in cash and cash equivalents | 0 | 0 | 0 |
Cash and cash equivalents at beginning of period | 0 | 0 | 0 |
Cash and cash equivalents at end of period | $ 0 | $ 0 | $ 0 |
Dividends from Subsidiaries - A
Dividends from Subsidiaries - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Allowance for Doubtful Accounts [Member] | |||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Beginning Balance | $ 8,057 | $ 7,232 | $ 4,786 |
Write-Offs | 2,540 | 1,744 | 3,875 |
Additions | 3,659 | 2,569 | 6,321 |
Ending Balance | 9,176 | 8,057 | 7,232 |
Sales Returns and Allowances [Member] | |||
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Beginning Balance | 616 | 676 | 676 |
Write-Offs | 76,552 | 72,151 | 61,935 |
Additions | 76,620 | 72,091 | 61,935 |
Ending Balance | $ 684 | $ 616 | $ 676 |