Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Nov. 12, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | PRTY | |
Entity Registrant Name | Party City Holdco Inc. | |
Entity Central Index Key | 1,592,058 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding | 119,258,374 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 53,805 | $ 47,214 |
Accounts receivable, net | 190,127 | 140,663 |
Inventories, net | 684,387 | 582,230 |
Prepaid expenses and other current assets | 127,966 | 77,232 |
Total current assets | 1,056,285 | 847,339 |
Property, plant and equipment, net | 272,180 | 248,684 |
Goodwill | 1,563,232 | 1,557,250 |
Trade names | 569,024 | 569,343 |
Other intangible assets, net | 92,712 | 107,010 |
Other assets, net | 32,002 | 51,237 |
Total assets | 3,585,435 | 3,380,863 |
Current liabilities: | ||
Loans and notes payable | 360,477 | 25,336 |
Accounts payable | 199,726 | 145,686 |
Accrued expenses | 168,908 | 165,683 |
Income taxes payable | 0 | 34,670 |
Current portion of long-term obligations | 14,267 | 12,249 |
Total current liabilities | 743,378 | 383,624 |
Long-term obligations, excluding current portion | 1,667,550 | 2,127,583 |
Deferred income tax liabilities | 296,064 | 309,338 |
Deferred rent and other long-term liabilities | 49,852 | 38,030 |
Total liabilities | 2,756,844 | 2,858,575 |
Redeemable common securities (3,088,630 shares issued and outstanding at December 31, 2014) | $ 0 | $ 35,062 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Common stock (119,258,374 and 91,007,894 shares issued and outstanding at September 30, 2015 and December 31, 2014, respectively) | $ 1,193 | $ 910 |
Additional paid-in capital | 903,179 | 469,117 |
(Accumulated deficit) retained earnings | (46,130) | 29,934 |
Accumulated other comprehensive loss | (29,651) | (12,735) |
Total stockholders' equity | 828,591 | 487,226 |
Total liabilities, redeemable common securities and stockholders' equity | $ 3,585,435 | $ 3,380,863 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - shares | Sep. 30, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Redeemable common securities, shares issued | 3,088,630 | |
Redeemable common securities, shares outstanding | 3,088,630 | |
Common stock, shares issued | 119,258,374 | 91,007,894 |
Common stock, shares outstanding | 119,258,374 | 91,007,894 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Revenues: | ||||
Net sales | $ 551,380 | $ 538,671 | $ 1,500,781 | $ 1,455,073 |
Royalties and franchise fees | 4,027 | 3,990 | 12,251 | 12,149 |
Total revenues | 555,407 | 542,661 | 1,513,032 | 1,467,222 |
Expenses: | ||||
Cost of sales | 361,530 | 354,525 | 958,667 | 933,424 |
Wholesale selling expenses | 15,465 | 18,244 | 48,825 | 54,870 |
Retail operating expenses | 102,432 | 95,571 | 267,975 | 261,524 |
Franchise expenses | 3,608 | 3,537 | 10,597 | 10,333 |
General and administrative expenses | 35,979 | 37,135 | 110,048 | 107,587 |
Art and development costs | 4,913 | 4,871 | 15,369 | 14,495 |
Total expenses | 523,927 | 513,883 | 1,411,481 | 1,382,233 |
Income from operations | 31,480 | 28,778 | 101,551 | 84,989 |
Interest expense, net | 29,554 | 39,218 | 101,430 | 117,103 |
Other expense (income), net | 79,130 | (116) | 126,519 | 4,435 |
Loss before income taxes | (77,204) | (10,324) | (126,398) | (36,549) |
Income tax benefit | (32,715) | (4,914) | (50,334) | (13,683) |
Net loss | (44,489) | (5,410) | (76,064) | (22,866) |
Comprehensive loss | $ (55,797) | $ (17,536) | $ (92,980) | $ (30,959) |
Net loss per common share-Basic | $ (0.37) | $ (0.06) | $ (0.69) | $ (0.24) |
Net loss per common share-Diluted | $ (0.37) | $ (0.06) | $ (0.69) | $ (0.24) |
Weighted-average number of common shares-Basic | 119,253,707 | 94,027,724 | 109,470,099 | 93,966,622 |
Weighted-average number of common shares-Diluted | 119,253,707 | 94,027,724 | 109,470,099 | 93,966,622 |
Dividends declared per share | $ 0 | $ 0 | $ 0 | $ 0 |
Condensed Consolidated Stateme5
Condensed Consolidated Statement of Stockholder's Equity - 9 months ended Sep. 30, 2015 - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | (Accumulated Deficit) Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] |
Balance at Dec. 31, 2014 | $ 487,226 | $ 910 | $ 469,117 | $ 29,934 | $ (12,735) |
Balance, Shares at Dec. 31, 2014 | 91,007,894 | 91,007,894 | |||
Net loss | $ (76,064) | (76,064) | |||
Equity based compensation | 2,094 | 2,094 | |||
Adjustment of redeemable common shares | 35,062 | $ 31 | 35,031 | ||
Adjustment of redeemable common shares, Shares | 3,088,630 | ||||
Issuance of common stock | 397,159 | $ 252 | 396,907 | ||
Issuance of common stock, Shares | 25,156,250 | ||||
Exercise of stock options | 30 | 30 | |||
Exercise of stock options, shares | 5,600 | ||||
Foreign currency adjustments | (17,122) | (17,122) | |||
Impact of foreign exchange contracts, net of taxes | 206 | 206 | |||
Balance at Sep. 30, 2015 | $ 828,591 | $ 1,193 | $ 903,179 | $ (46,130) | $ (29,651) |
Balance, Shares at Sep. 30, 2015 | 119,258,374 | 119,258,374 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Cash flows used in operating activities: | ||
Net loss | $ (76,064) | $ (22,866) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization expense | 59,567 | 60,995 |
Amortization of deferred financing costs and original issuance discounts | 39,225 | 12,437 |
(Credit) provision for doubtful accounts | (10) | 1,192 |
Deferred income tax benefit | (5,994) | (6,181) |
Deferred rent | 9,580 | 11,676 |
Undistributed loss in unconsolidated joint venture | 377 | 846 |
(Gain) loss on sale of assets | (2,488) | 2,305 |
Equity based compensation | 2,094 | 1,187 |
Changes in operating assets and liabilities, net of effects of acquired businesses: | ||
Increase in accounts receivable | (50,034) | (47,490) |
Increase in inventories | (104,968) | (171,195) |
Increase in prepaid expenses and other current assets | (12,178) | (3,259) |
(Decrease) increase accounts payable, accrued expenses and income taxes payable | (23,656) | 47,592 |
Net cash used in operating activities | (164,549) | (112,761) |
Cash flows used in investing activities: | ||
Cash paid in connection with acquisitions, net of cash acquired | (18,405) | (2,152) |
Capital expenditures | (62,032) | (52,944) |
Proceeds from disposal of property and equipment | 604 | 951 |
Net cash used in investing activities | (79,833) | (54,145) |
Cash flows provided by financing activities: | ||
Repayment of loans, notes payable and long-term obligations | (2,327,517) | (1,139,953) |
Proceeds from loans, notes payable and long-term obligations | 2,198,600 | 1,310,166 |
Cash held in escrow in connection with acquisitions | (3,832) | 0 |
Issuance of common stock | 397,159 | 0 |
Exercise of stock options | 30 | 1,081 |
Debt issuance costs | (11,248) | (373) |
Net cash provided by financing activities | 253,192 | 170,921 |
Effect of exchange rate changes on cash and cash equivalents | (2,219) | (565) |
Net increase in cash and cash equivalents | 6,591 | 3,450 |
Cash and cash equivalents at beginning of period | 47,214 | 25,645 |
Cash and cash equivalents at end of period | 53,805 | 29,095 |
Cash paid during the period | ||
Interest | 127,367 | 132,934 |
Income taxes, net of refunds | $ 36,675 | $ 14,574 |
Description of Business
Description of Business | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | Note 1 – Description of Business Party City Holdco Inc. (the “Company” or “Party City Holdco”) is a vertically integrated supplier of decorated party goods. The Company designs, manufactures, sources and distributes party goods, including paper and plastic tableware, metallic and latex balloons, Halloween and other costumes, accessories, novelties, gifts and stationery throughout the world. The Company’s retail operations include approximately 900 specialty retail party supply stores (including approximately 200 franchise stores) in the United States and Canada operating under the names Party City and Halloween City, and e-commerce websites, principally through the domain name PartyCity.com. Party City Holdco franchises both individual stores and franchise areas throughout the United States, Mexico and Puerto Rico, principally under the name Party City. 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 the Company’s operating subsidiaries. On April 21, 2015, the Company consummated an initial public offering and sold 25,156,250 shares of common stock for net proceeds of $397,159. See Note 6 for further detail. During March 2015, the Company acquired the stock of Travis Designs Limited for total consideration of $10,319. Additionally, during August 2015, the Company acquired the assets of Accurate Custom Injection Molding Inc. for total consideration of $10,147. The Company is in the process of finalizing purchase accounting for the acquisitions. |
Basis of Presentation and Recen
Basis of Presentation and Recently Issued Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Recently Issued Accounting Pronouncements | Note 2 – Basis of Presentation and Recently Issued Accounting Pronouncements The unaudited condensed consolidated financial statements of the Company include the accounts of the Company and its majority-owned and controlled entities. All significant intercompany balances and transactions have been eliminated in consolidation. The unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information. Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring items) considered necessary for a fair presentation have been included in the unaudited condensed consolidated financial statements. The majority of our retail operations define a fiscal year (“Fiscal Year”) as the 52-week period or 53-week period ended on the Saturday nearest December 31st of each year and define fiscal quarters (“Fiscal Quarter”) as the four interim 13-week periods following the end of the previous Fiscal Year, except in the case of a 53-week Fiscal Year when the fourth Fiscal Quarter is extended to 14 weeks. The condensed consolidated financial statements of the Company combine the Fiscal Quarters of our retail operations with the calendar quarters of our wholesale operations. The Company has determined the differences between the retail operation’s Fiscal Year and Fiscal Quarters and the calendar year and calendar quarters to be insignificant. Operating results for interim periods are not necessarily indicative of the results to be expected for the year ending December 31, 2015. Our business is subject to substantial seasonal variations as our retail segment has realized a significant portion of its net sales, cash flows and net income in the fourth quarter of each year, principally due to its Halloween season sales in October and, to a lesser extent, other year-end holiday sales. We expect that this general pattern will continue. Our results of operations may also be affected by industry factors that may be specific to a particular period such as movement in and the general level of raw material costs. For further information see the consolidated financial statements, and notes thereto, included in the Company’s prospectus filed pursuant to Rule 424(b) under the Securities Act of 1933, as amended , as filed with the Securities and Exchange Commission on April 15, 2015. Recently Issued Accounting Pronouncements In September 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2015-16, In July 2015, the FASB issued ASU 2015-11, “Simplifying the Measurement of Inventory”. The update changes the measurement principle for inventory from the lower of cost or market to lower of cost and net realizable value. The pronouncement will be effective for the Company during the first quarter of 2017. The Company is in the process of evaluating the impact of the pronouncement on the Company’s consolidated financial statements. In April 2015, the FASB issued ASU 2015-03, “Simplifying the Presentation of Debt Issuance Costs”. The pronouncement will be effective for the Company during the first quarter of 2016. It will require companies to present debt issuance costs related to a recognized debt liability as a direct deduction from the carrying amount of such debt liability. As of September 30, 2015 and December 31, 2014, the Company had $22,400 and $44,372, respectively, of debt issuance costs recorded in “other assets” on the Company’s condensed consolidated balance sheet. In June 2014, the FASB issued ASU 2014-12, “Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period”. The update clarifies that a performance target in a share-based payment that affects vesting and that could be achieved after the requisite service period should be accounted for as a performance condition. The pronouncement will be effective for the Company during the first quarter of 2016. Although the Company continues to review this pronouncement, it does not believe that it will have a material impact on the Company’s consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)”. The pronouncement contains a five-step model which replaces most existing revenue recognition guidance. The update is effective for the Company during the first quarter of 2018; however, early adoption is permitted. The pronouncement can be applied retrospectively to prior reporting periods or through a cumulative-effect adjustment as of the date of adoption. The Company is in the process of evaluating the impact of the pronouncement on the Company’s consolidated financial statements. |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2015 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 3 – Inventories Inventories consisted of the following: September 30, December 31, Finished goods $ 653,069 $ 550,975 Raw materials 22,438 22,093 Work in process 8,880 9,162 $ 684,387 $ 582,230 Inventories are valued at the lower of cost or market. The Company determines the cost of inventory at its retail stores using the weighted average method. Other inventory cost is principally determined using the first-in, first-out method. The Company estimates retail inventory shortages for the periods 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. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 4 – Income Taxes The income tax benefit for the three and nine months ended September 30, 2015 was determined based upon the Company’s estimated consolidated effective income tax rate for the year ending December 31, 2015. The difference between the estimated consolidated effective income tax rate for the year ending December 31, 2015 and the U.S. federal statutory rate is primarily attributable to unrecognized foreign tax credits and state income taxes, partially offset by a foreign rate differential and available domestic manufacturing deductions. |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive (Loss) Income | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive (Loss) Income | Note 5 – Changes in Accumulated Other Comprehensive (Loss) Income The changes in accumulated other comprehensive (loss) income consisted of the following: Three Months Ended September 30, 2015 Foreign Impact of Total, Net of Taxes Balance at June 30, 2015 $ (18,589 ) $ 246 $ (18,343 ) Other comprehensive (loss) income before reclassifications (11,502 ) 211 (11,291 ) Amounts reclassified from accumulated other comprehensive loss to the condensed consolidated statement of operations and comprehensive loss 0 (17 ) (17 ) Net current-period other comprehensive (loss) income (11,502 ) 194 (11,308 ) Balance at September 30, 2015 $ (30,091 ) $ 440 $ (29,651 ) Three Months Ended September 30, 2014 Foreign Impact of Total, Net of Taxes Balance at June 30, 2014 $ 9,815 $ (374 ) $ 9,441 Other comprehensive (loss) income before reclassifications (12,625 ) 332 (12,293 ) Amounts reclassified from accumulated other comprehensive income to the condensed consolidated statement of operations and comprehensive loss 0 167 167 Net current-period other comprehensive (loss) income (12,625 ) 499 (12,126 ) Balance at September 30, 2014 $ (2,810 ) $ 125 $ (2,685 ) Nine Months Ended September 30, 2015 Foreign Impact of Total, Net of Taxes Balance at December 31, 2014 $ (12,969 ) $ 234 $ (12,735 ) Other comprehensive (loss) income before reclassifications (17,122 ) 476 (16,646 ) Amounts reclassified from accumulated other comprehensive loss to the condensed consolidated statement of operations and comprehensive loss 0 (270 ) (270 ) Net current-period other comprehensive (loss) income (17,122 ) 206 (16,916 ) Balance at September 30, 2015 $ (30,091 ) $ 440 $ (29,651 ) Nine Months Ended September 30, 2014 Foreign Impact of Total, Balance at December 31, 2013 $ 5,738 $ (330 ) $ 5,408 Other comprehensive (loss) income before reclassifications (8,548 ) 172 (8,376 ) Amounts reclassified from accumulated other comprehensive income to the condensed consolidated statement of operations and comprehensive loss 0 283 283 Net current-period other comprehensive (loss) income (8,548 ) 455 (8,093 ) Balance at September 30, 2014 $ (2,810 ) $ 125 $ (2,685 ) |
Capital Stock
Capital Stock | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
Capital Stock | Note 6 – Capital Stock At September 30, 2015, the Company’s authorized capital stock consisted of 300,000,000 shares of $0.01 par value common stock. On April 2, 2015, the Company affected a 2,800 for 1 split of its common stock. All earnings per share amounts and number of shares outstanding have been retroactively adjusted. Additionally, on April 21, 2015, the Company consummated an initial public offering of its common stock and sold 25,156,250 shares. The net proceeds of the offering, $397,159 after underwriter fees and other expenses directly related to the offering, were used to, among other things, fully redeem the $350,000 PIK Notes (“Nextco Notes”) and pay a management agreement termination fee to affiliates of Thomas H. Lee Partners, L.P. (“THL”) and Advent International Corporation (“Advent”). The Company paid $363,720 in order to redeem the Nextco Notes, including a 2% prepayment penalty of $7,000 and the payment of all accrued interest as of the redemption date of $6,720. The Company recorded the $7,000 prepayment penalty in other expense, net in the Company’s condensed consolidated statement of operations and comprehensive loss for the three months ended June 30, 2015. Additionally, in conjunction with the redemption, the Company wrote off $8,596 of capitalized debt issuance costs and original issuance discounts related to the Nextco Notes. Such charge was also recorded in other expense, net in the Company’s condensed consolidated statement of operations and comprehensive loss for the three months ended June 30, 2015 and it was recorded in amortization of deferred financing costs and original issuance discounts in the Company’s condensed consolidated statement of cash flows for the nine months ended September 30, 2015. In 2012, the Company entered into a management agreement with THL and Advent under which THL and Advent provided advice to the Company on, among other things, financing, operations, acquisitions and dispositions. Under the agreement, THL and Advent were paid an annual management fee for such services. In connection with the initial public offering, the management agreement was terminated and the Company paid THL and Advent an aggregate termination fee of $30,697. Such amount was recorded in other expense, net in the Company’s condensed consolidated statement of operations and comprehensive loss for the three months ended June 30, 2015. Under the terms of Party City Holdco’s prior stockholders’ agreement, dated July 27, 2012, employee stockholders who died or became disabled while employed could have required Party City Holdco to purchase all of the shares held by the employee stockholders. The aggregate amount that would have been payable by the Company to current employee stockholders should they have died or become disabled while employed, based on the estimated fair market value of fully paid and vested common securities, totaled $35,062 at December 31, 2014 and was classified as redeemable common securities on the Company’s consolidated balance sheet. During April 2015, Party City Holdco consummated an initial public offering of its common stock and, at such time, the existing stockholders’ agreement was amended and restated. In conjunction with such amendment and restatement, employee stockholders no longer have the ability to require Party City Holdco to purchase their shares in the event of death or disability and, therefore, all amounts included in redeemable common securities have been reclassified to common stock and additional paid-in capital. The changes in redeemable common securities during the nine months ended September 30, 2015 were as follows: Balance at December 31, 2014 $ 35,062 Adjustment of common shares to fair value 5,893 Impact of stockholders’ agreement amendment and restatement (40,955 ) Balance at September 30, 2015 $ 0 |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Segment Information | Note 7 – 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, gifts and stationery throughout the world. The Retail segment operates specialty retail party supply stores in the United States and Canada, principally under the names Party City and Halloween City, and it operates e-commerce websites, principally through the domain name Partycity.com. The Retail segment also franchises both individual stores and franchise areas throughout the United States, Mexico and Puerto Rico, principally under the name Party City. The Company’s industry segment data for the three months ended September 30, 2015 and September 30, 2014 was as follows: Wholesale Retail Consolidated Three Months Ended September 30, 2015 Revenues: Net sales $ 418,447 $ 339,465 $ 757,912 Royalties and franchise fees 0 4,027 4,027 Total revenues 418,447 343,492 761,939 Eliminations (206,532 ) 0 (206,532 ) Net revenues $ 211,915 $ 343,492 $ 555,407 Income (loss) from operations $ 35,860 $ (4,380 ) $ 31,480 Interest expense, net 29,554 Other expense, net 79,130 Loss before income taxes $ (77,204 ) Wholesale Retail Consolidated Three Months Ended September 30, 2014 Revenues: Net sales $ 423,967 $ 326,086 $ 750,053 Royalties and franchise fees 0 3,990 3,990 Total revenues 423,967 330,076 754,043 Eliminations (211,382 ) 0 (211,382 ) Net revenues $ 212,585 $ 330,076 $ 542,661 Income (loss) from operations $ 31,804 $ (3,026 ) $ 28,778 Interest expense, net 39,218 Other income, net (116 ) Loss before income taxes $ (10,324 ) The Company’s industry segment data for the nine months ended September 30, 2015 and September 30, 2014 was as follows: Wholesale Retail Consolidated Nine Months Ended September 30, 2015 Revenues: Net sales $ 923,717 $ 1,003,196 $ 1,926,913 Royalties and franchise fees 0 12,251 12,251 Total revenues 923,717 1,015,447 1,939,164 Eliminations (426,132 ) 0 (426,132 ) Net revenues $ 497,585 $ 1,015,447 $ 1,513,032 Income from operations $ 59,882 $ 41,669 $ 101,551 Interest expense, net 101,430 Other expense, net 126,519 Loss before income taxes $ (126,398 ) Wholesale Retail Consolidated Nine Months Ended September 30, 2014 Revenues: Net sales $ 912,261 $ 968,101 $ 1,880,362 Royalties and franchise fees 0 12,149 12,149 Total revenues 912,261 980,250 1,892,511 Eliminations (425,289 ) 0 (425,289 ) Net revenues $ 486,972 $ 980,250 $ 1,467,222 Income from operations $ 58,377 $ 26,612 $ 84,989 Interest expense, net 117,103 Other expense, net 4,435 Loss before income taxes $ (36,549 ) |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 8 – Commitments and Contingencies The Company is a party to certain claims and litigation in the ordinary course of business. The Company does not believe these proceedings will result, individually or in the aggregate, in a material adverse effect on its financial condition or future results of operations. The Company is an assignor with contingent lease liability for three stores sold to franchisees and other parties. The potential contingent lease obligations continue until the applicable leases expire in 2018. The maximum amount of the contingent lease obligations may vary, but is limited to the sum of the total amount due under the leases. At September 30, 2015, the maximum amount of the contingent lease obligations was approximately $539. Payment of such amount is contingent upon certain events occurring, which management has not assessed as probable or estimable at this time. |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Sep. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Note 9 – Derivative Financial Instruments The Company is directly and indirectly affected by changes in certain market conditions. These changes in market conditions may adversely impact the Company’s financial performance and are referred to as market risks. The Company, when deemed appropriate, uses derivatives as a risk management tool to mitigate the potential impact of certain market risks. The primary market risks managed through the use of derivative financial instruments are interest rate risk and foreign currency exchange rate risk. Interest Rate Risk Management As part of the Company’s risk management strategy, the Company periodically uses interest rate swap agreements to hedge the variability of cash flows on floating rate debt obligations. Accordingly, interest rate swap agreements are reflected in the consolidated balance sheets at fair value and the related gains and losses on these contracts are deferred in stockholders’ equity and recognized in interest expense over the same period in which the related interest payments being hedged are recognized in income. The fair value of an interest rate swap agreement is the estimated amount that the counterparty would receive or pay to terminate the swap agreement at the reporting date, taking into account current interest rates and the current creditworthiness of the swap counterparty. The Company did not utilize interest rate swap agreements during the nine months ended September 30, 2015 and September 30, 2014. Foreign Exchange Risk Management A portion of the Company’s cash flows is derived from transactions denominated in foreign currencies. In order to reduce the uncertainty of foreign exchange rate movements on transactions denominated in foreign currencies, including the British Pound Sterling, the Canadian Dollar, the Euro, the Malaysian Ringgit and the Australian Dollar, the Company enters into foreign exchange contracts with major international financial institutions. These forward contracts, which typically mature within one year, are designed to hedge anticipated foreign currency transactions, primarily inventory purchases and sales. For contracts that qualify for hedge accounting, the terms of the foreign exchange contracts are such that cash flows from the contracts should be highly effective in offsetting the expected cash flows from the underlying forecasted transactions. The foreign currency exchange contracts are reflected in the condensed consolidated balance sheets at fair value. The fair value of the foreign currency exchange contracts is the estimated amount that the counterparties would receive or pay to terminate the foreign currency exchange contracts at the reporting date, taking into account current foreign exchange spot rates. At September 30, 2015 and December 31, 2014, the Company had certain foreign currency exchange contracts that qualified for hedge accounting. No components of these agreements were excluded in the measurement of hedge effectiveness. As these hedges were 100% effective, there was no impact on earnings due to hedge ineffectiveness. The Company anticipates that substantially all unrealized gains and losses in accumulated other comprehensive loss related to these foreign currency exchange contracts will be reclassified into earnings by June 2017. The impact of foreign exchange contracts that do not qualify for hedge accounting is not material. The following table displays the fair values of the Company’s derivatives at September 30, 2015 and December 31, 2014: Derivative Assets Derivative Liabilities Balance Fair Balance Fair Balance Fair Balance Fair Derivative Instrument September 30, 2015 December 31, 2014 September 30, 2015 December 31, 2014 Foreign Exchange Contracts (a) PP $ 917 (a) PP $ 0 (b) AE $ 802 (b) AE $ 476 (a) PP = Prepaid expenses and other current assets (b) AE = Accrued expenses The following table displays the notional amounts of the Company’s derivatives at September 30, 2015 and December 31, 2014: Derivative Instrument September 30, 2015 December 31, Foreign Exchange Contracts $ 19,624 $ 8,900 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 10 – Fair Value Measurements The provisions of FASB 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 following table shows assets and liabilities as of September 30, 2015 that are measured at fair value on a recurring basis: Level 1 Level 2 Level 3 Total as of Derivative assets $ 0 $ 917 $ 0 $ 917 Derivative liabilities 0 802 0 802 The following table shows assets and liabilities as of December 31, 2014 that are measured at fair value on a recurring basis: Level 1 Level 2 Level 3 Total as of Derivative assets $ 0 $ 0 $ 0 $ 0 Derivative liabilities 0 476 0 476 In addition to assets and liabilities that are recorded at fair value on a recurring basis, the Company is required to record other assets and liabilities at fair value on a nonrecurring basis, generally as a result of impairment charges. 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 September 30, 2015 because of the short-term maturities of the instruments and/or their variable rates of interest. During the three months ended September 30, 2015, the Company refinanced its debt. See Note 12 for further discussion. The carrying amount and fair value of the Company’s borrowings under its $1,340,000 senior secured term loan facility (“Term Loan Credit Agreement”) and its $350,000 of 6.125% senior notes (“Senior Notes”) are as follows: September 30, 2015 Carrying Fair Value Term Loan Credit Agreement $ 1,329,352 $ 1,337,186 Senior Notes 350,000 353,500 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 September 30, 2015 based on the discounted future cash flows of each instrument at rates currently offered for similar debt instruments of comparable maturity. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 11 – Earnings Per Share Basic earnings per share are computed by dividing net income available for common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share are calculated based on the weighted average number of outstanding common shares plus the dilutive effect of stock options as if they were exercised. A reconciliation between basic and diluted income (loss) per share is as follows: Three Months Three Months Nine Months Nine Months Net loss $ (44,489 ) $ (5,410 ) $ (76,064 ) $ (22,866 ) Weighted average shares - Basic 119,253,707 94,027,724 109,470,099 93,966,622 Effect of dilutive securities: Stock options 0 0 0 0 Weighted average shares - Diluted 119,253,707 94,027,724 109,470,099 93,966,622 Net loss per common share - Basic $ (0.37 ) $ (0.06 ) $ (0.69 ) $ (0.24 ) Net loss per common share - Diluted $ (0.37 ) $ (0.06 ) $ (0.69 ) $ (0.24 ) All earnings per share amounts and number of shares outstanding have been retroactively adjusted to give effect to a 2,800-for-1 split of the Company’s common stock, which was effected on April 2, 2015. During both the three and nine months ended September 30, 2015, 4,544,964 stock options were excluded from the calculation of net loss per common share – diluted as they were anti-dilutive. During both the three and nine months ended September 30, 2014, 2,609,600 stock options were excluded from the calculation of net loss per common share – diluted as they were anti-dilutive. |
Long-Term Obligations
Long-Term Obligations | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Long-Term Obligations | Note 12 – Long-Term Obligations Long-term obligations consisted of the following: September 30, December 31, $1,125,000 Old Term Loan $ 0 $ 1,089,242 $1,340,000 Term Loan 1,329,352 0 Capital lease obligations 2,465 3,274 Nextco Notes 0 347,316 $700,000 of 8.875% Old Senior Notes 0 700,000 $350,000 of 6.125% Senior Notes 350,000 0 Total long-term obligations 1,681,817 2,139,832 Less: current portion (14,267 ) (12,249 ) Long-term obligations, excluding current portion $ 1,667,550 $ 2,127,583 The Nextco Notes were redeemed during the three months ended June 30, 2015. See Note 6 for further discussion. During the three months ended September 30, 2015, PCHI redeemed its $700,000 of 8.875% senior notes (“Old Senior Notes”) and refinanced its existing $1,125,000 senior secured term loan facility (“Old Term Loan Credit Agreement”) and $400,000 asset-based revolving credit facility (“Old ABL Facility”) with new indebtedness consisting of: (i) a $1,340,000 senior secured term loan facility (“Term Loan Credit Agreement”), (ii) a $540,000 asset-based revolving credit facility (with a seasonal increase to $640,000 during a certain period of each calendar year) (“ABL Facility”) and (iii) $350,000 of 6.125% senior notes (“Senior Notes”). As both the Old Term Loan Credit Agreement and the Term Loan Credit Agreement are loan syndications, the Company assessed whether the refinancing of the term loans should be accounted for as an extinguishment on a creditor-by-creditor basis and wrote-off $2,036 of existing deferred financing costs, as well as a $786 related original issue discount and $853 of the existing unamortized call premium, all of which were recorded in other expense in the Company’s condensed consolidated statement of operations and comprehensive loss. The remaining deferred financing costs of $9,308 and the remaining original discount of $3,592 will be amortized over the life of the Term Loan Credit Agreement, using the effective interest method. The remainder of the call premium, $3,900, will also continue to be amortized over the life of the Term Loan Credit Agreement. Finally, in conjunction with the refinancing, the Company incurred $12,837 of banker and legal fees; $9,758 of which was recorded in other expense. The rest of the costs will be amortized over the life of the Term Loan Credit Agreement. The write-offs of the deferred financing costs, original issuance discount and call premium were included in amortization of deferred financing costs and original issuance discount in the Company’s condensed consolidated statement of cash flows. Additionally, the Company compared the borrowing capacity under the Old ABL Facility and the ABL Facility, on a creditor-by-creditor basis, and concluded that $321 of existing deferred financing costs should be written-off. Such amount was recorded in other expense in the Company’s condensed consolidated statement of operations and comprehensive loss and included in amortization of deferred financing costs and original issuance discount in the Company’s condensed consolidated statement of cash flows. The remaining costs, $2,246, will be amortized over the term of the ABL Facility. The redemption price for the Old Senior Notes was 6.656 % of the principal amount, aggregating $46,592. The Company recorded such amount in other expense in the Company’s condensed consolidated statement of operations and comprehensive loss. Additionally, the Company wrote-off $18,664 of deferred financing costs related to the Old Senior Notes. Such amount was also recorded in other expense in the Company’s condensed consolidated statement of operations and comprehensive loss and included in amortization of deferred financing costs and original issuance discount in the Company’s condensed consolidated statement of cash flows. Term Loan Credit Agreement Loans outstanding under the Term Loan Credit Agreement were issued with a 0.25% original issuance discount. Such amount, $3,350, has been netted against the amount of the debt on the Company’s condensed consolidated balance sheet and is being amortized over the life of the debt, using the effective interest method. Additionally, a portion of the existing original issuance discount has been netted against the new debt and is being amortized consistent with the new discount (see above for further discussion). The Term Loan Credit Agreement provides for two pricing options for outstanding loans: (i) an ABR for any day, a rate per annum equal to the greater of (a) the prime rate in effect on such day, (b) the federal funds effective rate in effect on such day plus 0.5%, (c) the adjusted LIBOR rate plus 1% and (d) 2.00% or (ii) the LIBOR rate, with a LIBOR floor of 1.00%, in each case plus an applicable margin. The applicable margin is 2.25% with respect to ABR borrowings and 3.25% with respect to LIBOR borrowings. At September 30, 2015, all outstanding borrowings were based on LIBOR and were at a rate of 4.25%. Subsequent to February 19, 2016, the Company may voluntarily prepay the term loans at any time without premium or penalty, other than customary breakage costs with respect to loans based on the LIBOR rate. Prior to such date, voluntary prepayments are subject to a 1% premium. The term loans are subject to mandatory prepayment, subject to certain exceptions, with (i) 100% of net proceeds above a threshold amount of certain asset sales/insurance proceeds, subject to reinvestment rights and certain other exceptions, (ii) 100% of the net cash proceeds of any incurrence of debt other than debt permitted under the Term Loan Credit Agreement, (iii) 50% of Excess Cash Flow, as defined in the agreement, if any (starting with the payment to be made in 2017, the percentage will be reduced to 25% if PCHI’s first lien leverage ratio (as defined in the agreement) is less than 3.50 to 1.00, but greater than 2.50 to 1.00, and 0% if PCHI’s first lien leverage ratio is less than 2.50 to 1.00). The term loans under the Term Loan Credit Agreement mature on August 19, 2022. Starting on December 31, 2015, the Company is required to repay installments on the loans in quarterly principal amounts of 0.25%, with the remaining amount payable on the maturity date. All obligations under the agreement are jointly and severally guaranteed by PC Intermediate, PCHI and each existing and future domestic subsidiary of PCHI. PCHI and each guarantor has secured its obligations, subject to certain exceptions and limitations, by a first-priority lien on substantially all of its assets (other than accounts receivable, inventory, cash and certain related assets), including a pledge of all of the capital stock held by PC Intermediate, PCHI and each guarantor, and a second-priority lien on its accounts receivable, inventory, cash and certain related assets. The Term Loan Credit Agreement contains certain customary affirmative covenants and events of default. Additionally, it contains negative covenants which, among other things and subject to certain exceptions, restrict the ability of PCHI to: • incur additional indebtedness; • pay dividends on capital stock or redeem, repurchase or retire capital stock; • make certain investments, loans, advances and acquisitions; • engage in transactions with affiliates; • create liens; and • transfer or sell certain assets. In connection with entering into the Term Loan Credit Agreement, the Company incurred and capitalized $3,079 of third-party costs. Additionally, certain existing deferred financing costs will continue to be capitalized (see above for further discussion). All capitalized costs are being amortized over the life of the new debt using the effective interest method. Senior Notes The Senior Notes mature on August 15, 2023. Interest on the notes is payable semi-annually in arrears on February 15 and August 15 of each year. The notes are guaranteed, jointly and severally, on a senior basis by each of PCHI’s existing and future wholly-owned domestic subsidiaries. The Senior Notes and the guarantees are general unsecured senior obligations and are effectively subordinated to all other secured debt to the extent of the assets securing such secured debt. The indenture governing the Senior Notes contains certain covenants limiting, among other things and subject to certain exceptions, PCHI’s ability to: • incur additional indebtedness or issue certain disqualified stock and preferred stock; • pay dividends or distributions, redeem or repurchase equity; • prepay subordinated debt or make certain investments; • transfer and sell assets; • engage in transactions with affiliates; • create liens; and • consolidate, merge or transfer all or substantially all of PCHI’s assets. The indenture governing the notes also contains certain customary affirmative covenants and events of default. On or after August 15, 2018, the Company may redeem the Senior Notes, in whole or in part, at the following (expressed as a percentage of the principal amount to be redeemed): Twelve-month period beginning on August 15, Percentage 2018 103.063 % 2019 101.531 % 2020 and thereafter 100.000 % In addition, the Company may redeem up to 40% of the aggregate principal amount outstanding on or before August 15, 2018 with the net cash proceeds from certain equity offerings at a redemption price of 106.125% of the principal amount. The Company may also redeem some or all of the Senior Notes before August 15, 2018 at a redemption price of 100% of the principal amount plus a premium that is defined in the indenture. If the Company experiences certain types of change in control, as defined, the Company may be required to offer to repurchase the Senior Notes at 101% of their principal amount. In connection with the issuance of the Senior Notes, the Company incurred $6,485 of third-party costs that have been capitalized and are being amortized over the life of the debt. ABL Facility The ABL Facility, which matures on August 19, 2020, provides for (a) revolving loans in an aggregate principal amount at any time outstanding not to exceed $540,000 (with a seasonal increase to $640,000 during a certain period of each calendar year), subject to a borrowing base described below, and (b) letters of credit, in an aggregate face amount at any time outstanding not to exceed $50,000. Under the ABL Facility, the borrowing base at any time equals (a) a percentage of eligible trade receivables, plus (b) a percentage of eligible inventory, plus (c) a percentage of eligible credit card receivables, less (d) certain reserves. The ABL Facility generally provides for two pricing options: (i) an alternate base interest rate (“ABR”) equal to the greater of (a) the prime rate, (b) the federal funds rate plus 0.5% or (c) the LIBOR rate plus 1%, in each case, on the date of such borrowing or (ii) a LIBOR based interest rate, in each case plus an applicable margin. The applicable margin ranges from 0.25% to 0.50% with respect to ABR borrowings and from 1.25% to 1.50% with respect to LIBOR borrowings. In addition to paying interest on outstanding principal, the Company is required to pay a commitment fee of 0.25% per annum in respect of unutilized commitments. The Company must also pay customary letter of credit fees. All obligations under the ABL Facility are jointly and severally guaranteed by PC Intermediate, PCHI and each existing and future domestic subsidiary of PCHI. PCHI and each guarantor has secured its obligations, subject to certain exceptions and limitations, including obligations under its guaranty, as applicable, by a first-priority lien on its accounts receivable, inventory, cash and certain related assets and a second-priority lien on substantially all of its other assets. The facility contains negative covenants that, among other things and subject to certain exceptions, restrict the ability of PCHI to: • incur additional indebtedness; • pay dividends on capital stock or redeem, repurchase or retire capital stock; • make certain investments, loans, advances and acquisitions; • engage in transactions with affiliates; • create liens; and • transfer or sell certain assets. In addition, PCHI must comply with a fixed charge coverage ratio if excess availability under the ABL Facility on any day is less than the greater of: (a) 10% of the lesser of the aggregate commitments and the then borrowing base under the ABL Facility and (b) $40,000. The fixed charge coverage ratio is the ratio of (i) Adjusted EBITDA (as defined in the facility) minus maintenance-related capital expenditures (as defined in the facility) to (ii) fixed charges (as defined in the facility). The ABL Facility also contains certain customary affirmative covenants and events of default. In connection with entering into the ABL Facility, the Company incurred and capitalized $1,688 of third-party costs. Additionally, certain existing deferred financing costs will continue to be capitalized (see above for further discussion). All capitalized costs are being amortized over the life of the new debt. Amounts outstanding under the ABL Facility and the Old ABL Facility are included in Loans and Notes Payable in the Company’s condensed consolidated balance sheet. |
Basis of Presentation and Rec19
Basis of Presentation and Recently Issued Accounting Pronouncements (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In September 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2015-16, In July 2015, the FASB issued ASU 2015-11, “Simplifying the Measurement of Inventory”. The update changes the measurement principle for inventory from the lower of cost or market to lower of cost and net realizable value. The pronouncement will be effective for the Company during the first quarter of 2017. The Company is in the process of evaluating the impact of the pronouncement on the Company’s consolidated financial statements. In April 2015, the FASB issued ASU 2015-03, “Simplifying the Presentation of Debt Issuance Costs”. The pronouncement will be effective for the Company during the first quarter of 2016. It will require companies to present debt issuance costs related to a recognized debt liability as a direct deduction from the carrying amount of such debt liability. As of September 30, 2015 and December 31, 2014, the Company had $22,400 and $44,372, respectively, of debt issuance costs recorded in “other assets” on the Company’s condensed consolidated balance sheet. In June 2014, the FASB issued ASU 2014-12, “Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period”. The update clarifies that a performance target in a share-based payment that affects vesting and that could be achieved after the requisite service period should be accounted for as a performance condition. The pronouncement will be effective for the Company during the first quarter of 2016. Although the Company continues to review this pronouncement, it does not believe that it will have a material impact on the Company’s consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)”. The pronouncement contains a five-step model which replaces most existing revenue recognition guidance. The update is effective for the Company during the first quarter of 2018; however, early adoption is permitted. The pronouncement can be applied retrospectively to prior reporting periods or through a cumulative-effect adjustment as of the date of adoption. The Company is in the process of evaluating the impact of the pronouncement on the Company’s consolidated financial statements. |
Inventories | Inventories are valued at the lower of cost or market. The Company determines the cost of inventory at its retail stores using the weighted average method. Other inventory cost is principally determined using the first-in, first-out method. |
Industry Segments | Industry Segments The Company has two identifiable business segments. The Wholesale segment designs, manufactures, contracts for manufacture and distributes party goods, including paper and plastic tableware, metallic and latex balloons, Halloween and other costumes, accessories, novelties, gifts and stationery throughout the world. The Retail segment operates specialty retail party supply stores in the United States and Canada, principally under the names Party City and Halloween City, and it operates e-commerce websites, principally through the domain name Partycity.com. The Retail segment also franchises both individual stores and franchise areas throughout the United States, Mexico and Puerto Rico, principally under the name Party City. |
Derivatives | The Company is directly and indirectly affected by changes in certain market conditions. These changes in market conditions may adversely impact the Company’s financial performance and are referred to as market risks. The Company, when deemed appropriate, uses derivatives as a risk management tool to mitigate the potential impact of certain market risks. The primary market risks managed through the use of derivative financial instruments are interest rate risk and foreign currency exchange rate risk. Interest Rate Risk Management As part of the Company’s risk management strategy, the Company periodically uses interest rate swap agreements to hedge the variability of cash flows on floating rate debt obligations. Accordingly, interest rate swap agreements are reflected in the consolidated balance sheets at fair value and the related gains and losses on these contracts are deferred in stockholders’ equity and recognized in interest expense over the same period in which the related interest payments being hedged are recognized in income. The fair value of an interest rate swap agreement is the estimated amount that the counterparty would receive or pay to terminate the swap agreement at the reporting date, taking into account current interest rates and the current creditworthiness of the swap counterparty. The Company did not utilize interest rate swap agreements during the nine months ended September 30, 2015 and September 30, 2014. Foreign Exchange Risk Management A portion of the Company’s cash flows is derived from transactions denominated in foreign currencies. In order to reduce the uncertainty of foreign exchange rate movements on transactions denominated in foreign currencies, including the British Pound Sterling, the Canadian Dollar, the Euro, the Malaysian Ringgit and the Australian Dollar, the Company enters into foreign exchange contracts with major international financial institutions. These forward contracts, which typically mature within one year, are designed to hedge anticipated foreign currency transactions, primarily inventory purchases and sales. For contracts that qualify for hedge accounting, the terms of the foreign exchange contracts are such that cash flows from the contracts should be highly effective in offsetting the expected cash flows from the underlying forecasted transactions. The foreign currency exchange contracts are reflected in the condensed consolidated balance sheets at fair value. The fair value of the foreign currency exchange contracts is the estimated amount that the counterparties would receive or pay to terminate the foreign currency exchange contracts at the reporting date, taking into account current foreign exchange spot rates. At September 30, 2015 and December 31, 2014, the Company had certain foreign currency exchange contracts that qualified for hedge accounting. No components of these agreements were excluded in the measurement of hedge effectiveness. As these hedges were 100% effective, there was no impact on earnings due to hedge ineffectiveness. The Company anticipates that substantially all unrealized gains and losses in accumulated other comprehensive loss related to these foreign currency exchange contracts will be reclassified into earnings by June 2017. The impact of foreign exchange contracts that do not qualify for hedge accounting is not material. |
Fair Value Measurement | The provisions of FASB 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. |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consisted of the following: September 30, December 31, Finished goods $ 653,069 $ 550,975 Raw materials 22,438 22,093 Work in process 8,880 9,162 $ 684,387 $ 582,230 |
Changes in Accumulated Other 21
Changes in Accumulated Other Comprehensive (Loss) Income (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive (Loss) Income | The changes in accumulated other comprehensive (loss) income consisted of the following: Three Months Ended September 30, 2015 Foreign Impact of Total, Net of Taxes Balance at June 30, 2015 $ (18,589 ) $ 246 $ (18,343 ) Other comprehensive (loss) income before reclassifications (11,502 ) 211 (11,291 ) Amounts reclassified from accumulated other comprehensive loss to the condensed consolidated statement of operations and comprehensive loss 0 (17 ) (17 ) Net current-period other comprehensive (loss) income (11,502 ) 194 (11,308 ) Balance at September 30, 2015 $ (30,091 ) $ 440 $ (29,651 ) Three Months Ended September 30, 2014 Foreign Impact of Total, Net of Taxes Balance at June 30, 2014 $ 9,815 $ (374 ) $ 9,441 Other comprehensive (loss) income before reclassifications (12,625 ) 332 (12,293 ) Amounts reclassified from accumulated other comprehensive income to the condensed consolidated statement of operations and comprehensive loss 0 167 167 Net current-period other comprehensive (loss) income (12,625 ) 499 (12,126 ) Balance at September 30, 2014 $ (2,810 ) $ 125 $ (2,685 ) Nine Months Ended September 30, 2015 Foreign Impact of Total, Net of Taxes Balance at December 31, 2014 $ (12,969 ) $ 234 $ (12,735 ) Other comprehensive (loss) income before reclassifications (17,122 ) 476 (16,646 ) Amounts reclassified from accumulated other comprehensive loss to the condensed consolidated statement of operations and comprehensive loss 0 (270 ) (270 ) Net current-period other comprehensive (loss) income (17,122 ) 206 (16,916 ) Balance at September 30, 2015 $ (30,091 ) $ 440 $ (29,651 ) Nine Months Ended September 30, 2014 Foreign Impact of Total, Balance at December 31, 2013 $ 5,738 $ (330 ) $ 5,408 Other comprehensive (loss) income before reclassifications (8,548 ) 172 (8,376 ) Amounts reclassified from accumulated other comprehensive income to the condensed consolidated statement of operations and comprehensive loss 0 283 283 Net current-period other comprehensive (loss) income (8,548 ) 455 (8,093 ) Balance at September 30, 2014 $ (2,810 ) $ 125 $ (2,685 ) |
Capital Stock (Tables)
Capital Stock (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
Summary of Changes in Redeemable Common Securities | The changes in redeemable common securities during the nine months ended September 30, 2015 were as follows: Balance at December 31, 2014 $ 35,062 Adjustment of common shares to fair value 5,893 Impact of stockholders’ agreement amendment and restatement (40,955 ) Balance at September 30, 2015 $ 0 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Schedule of Company's Industry Segment Data | The Company’s industry segment data for the three months ended September 30, 2015 and September 30, 2014 was as follows: Wholesale Retail Consolidated Three Months Ended September 30, 2015 Revenues: Net sales $ 418,447 $ 339,465 $ 757,912 Royalties and franchise fees 0 4,027 4,027 Total revenues 418,447 343,492 761,939 Eliminations (206,532 ) 0 (206,532 ) Net revenues $ 211,915 $ 343,492 $ 555,407 Income (loss) from operations $ 35,860 $ (4,380 ) $ 31,480 Interest expense, net 29,554 Other expense, net 79,130 Loss before income taxes $ (77,204 ) Wholesale Retail Consolidated Three Months Ended September 30, 2014 Revenues: Net sales $ 423,967 $ 326,086 $ 750,053 Royalties and franchise fees 0 3,990 3,990 Total revenues 423,967 330,076 754,043 Eliminations (211,382 ) 0 (211,382 ) Net revenues $ 212,585 $ 330,076 $ 542,661 Income (loss) from operations $ 31,804 $ (3,026 ) $ 28,778 Interest expense, net 39,218 Other income, net (116 ) Loss before income taxes $ (10,324 ) The Company’s industry segment data for the nine months ended September 30, 2015 and September 30, 2014 was as follows: Wholesale Retail Consolidated Nine Months Ended September 30, 2015 Revenues: Net sales $ 923,717 $ 1,003,196 $ 1,926,913 Royalties and franchise fees 0 12,251 12,251 Total revenues 923,717 1,015,447 1,939,164 Eliminations (426,132 ) 0 (426,132 ) Net revenues $ 497,585 $ 1,015,447 $ 1,513,032 Income from operations $ 59,882 $ 41,669 $ 101,551 Interest expense, net 101,430 Other expense, net 126,519 Loss before income taxes $ (126,398 ) Wholesale Retail Consolidated Nine Months Ended September 30, 2014 Revenues: Net sales $ 912,261 $ 968,101 $ 1,880,362 Royalties and franchise fees 0 12,149 12,149 Total revenues 912,261 980,250 1,892,511 Eliminations (425,289 ) 0 (425,289 ) Net revenues $ 486,972 $ 980,250 $ 1,467,222 Income from operations $ 58,377 $ 26,612 $ 84,989 Interest expense, net 117,103 Other expense, net 4,435 Loss before income taxes $ (36,549 ) |
Derivative Financial Instrume24
Derivative Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Fair Values of Derivatives | The following table displays the fair values of the Company’s derivatives at September 30, 2015 and December 31, 2014: Derivative Assets Derivative Liabilities Balance Fair Balance Fair Balance Fair Balance Fair Derivative Instrument September 30, 2015 December 31, 2014 September 30, 2015 December 31, 2014 Foreign Exchange Contracts (a) PP $ 917 (a) PP $ 0 (b) AE $ 802 (b) AE $ 476 (a) PP = Prepaid expenses and other current assets (b) AE = Accrued expenses |
Schedule of Notional Amounts of Derivatives | The following table displays the notional amounts of the Company’s derivatives at September 30, 2015 and December 31, 2014: Derivative Instrument September 30, 2015 December 31, Foreign Exchange Contracts $ 19,624 $ 8,900 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Summary of Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table shows assets and liabilities as of September 30, 2015 that are measured at fair value on a recurring basis: Level 1 Level 2 Level 3 Total as of Derivative assets $ 0 $ 917 $ 0 $ 917 Derivative liabilities 0 802 0 802 The following table shows assets and liabilities as of December 31, 2014 that are measured at fair value on a recurring basis: Level 1 Level 2 Level 3 Total as of Derivative assets $ 0 $ 0 $ 0 $ 0 Derivative liabilities 0 476 0 476 |
Summary of Carrying Amount and Fair Value | The carrying amount and fair value of the Company’s borrowings under its $1,340,000 senior secured term loan facility (“Term Loan Credit Agreement”) and its $350,000 of 6.125% senior notes (“Senior Notes”) are as follows: September 30, 2015 Carrying Fair Value Term Loan Credit Agreement $ 1,329,352 $ 1,337,186 Senior Notes 350,000 353,500 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Reconciliation of Earnings Per Share | A reconciliation between basic and diluted income (loss) per share is as follows: Three Months Three Months Nine Months Nine Months Net loss $ (44,489 ) $ (5,410 ) $ (76,064 ) $ (22,866 ) Weighted average shares - Basic 119,253,707 94,027,724 109,470,099 93,966,622 Effect of dilutive securities: Stock options 0 0 0 0 Weighted average shares - Diluted 119,253,707 94,027,724 109,470,099 93,966,622 Net loss per common share - Basic $ (0.37 ) $ (0.06 ) $ (0.69 ) $ (0.24 ) Net loss per common share - Diluted $ (0.37 ) $ (0.06 ) $ (0.69 ) $ (0.24 ) |
Long-Term Obligations (Tables)
Long-Term Obligations (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Summary of Long-Term Obligations | Long-term obligations consisted of the following: September 30, December 31, $1,125,000 Old Term Loan $ 0 $ 1,089,242 $1,340,000 Term Loan 1,329,352 0 Capital lease obligations 2,465 3,274 Nextco Notes 0 347,316 $700,000 of 8.875% Old Senior Notes 0 700,000 $350,000 of 6.125% Senior Notes 350,000 0 Total long-term obligations 1,681,817 2,139,832 Less: current portion (14,267 ) (12,249 ) Long-term obligations, excluding current portion $ 1,667,550 $ 2,127,583 |
Summary of Debt Instrument Redemption | On or after August 15, 2018, the Company may redeem the Senior Notes, in whole or in part, at the following (expressed as a percentage of the principal amount to be redeemed): Twelve-month period beginning on August 15, Percentage 2018 103.063 % 2019 101.531 % 2020 and thereafter 100.000 % |
Description of Business - Addit
Description of Business - Additional Information (Detail) $ in Thousands | Apr. 21, 2015USD ($)shares | Aug. 31, 2015USD ($) | Mar. 31, 2015USD ($) | Sep. 30, 2015Store |
Basis Of Presentation [Line Items] | ||||
Net proceeds of the offering | $ 397,159 | |||
IPO [Member] | ||||
Basis Of Presentation [Line Items] | ||||
Common stock shares sold | shares | 25,156,250 | |||
PC Nextco [Member] | ||||
Basis Of Presentation [Line Items] | ||||
Ownership percentage | 100.00% | |||
United States and Canada [Member] | ||||
Basis Of Presentation [Line Items] | ||||
Number of specialty retail party supply stores | Store | 900 | |||
Number of franchise stores included in retail operation | Store | 200 | |||
Subsidiaries [Member] | Reportable Legal Entity Pc Intermediate Holdings Inc [Member] | ||||
Basis Of Presentation [Line Items] | ||||
Ownership percentage | 100.00% | |||
Indirect Subsidiaries [Member] | Party City Holdings Inc [Member] | ||||
Basis Of Presentation [Line Items] | ||||
Ownership percentage | 100.00% | |||
Travis Designs Limited [Member] | ||||
Basis Of Presentation [Line Items] | ||||
Consideration paid for acquisition | $ 10,319 | |||
Accurate Custom Injection Molding Inc [Member] | ||||
Basis Of Presentation [Line Items] | ||||
Consideration paid for acquisition | $ 10,147 |
Basis of Presentation and Rec29
Basis of Presentation and Recently Issued Accounting Pronouncements - Additional Information (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | |
Other Assets [Member] | ||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||
Debt issuance cost | $ 22,400 | $ 44,372 |
Minimum [Member] | ||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||
Retail operations period of fiscal year | 52 Weeks | |
Retail operations period of fiscal quarter | 13 Weeks | |
Maximum [Member] | ||
Basis Of Presentation And Significant Accounting Policies [Line Items] | ||
Retail operations period of fiscal year | 53 Weeks | |
Retail operations period of fiscal quarter | 14 Weeks |
Inventories - Inventories (Deta
Inventories - Inventories (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 653,069 | $ 550,975 |
Raw materials | 22,438 | 22,093 |
Work in process | 8,880 | 9,162 |
Inventories, net | $ 684,387 | $ 582,230 |
Changes in Accumulated Other 31
Changes in Accumulated Other Comprehensive (Loss) Income - Changes in Accumulated and Other Comprehensive (Loss) Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | $ (18,343) | $ 9,441 | $ (12,735) | $ 5,408 |
Other comprehensive (loss) income before reclassifications | (11,291) | (12,293) | (16,646) | (8,376) |
Amounts reclassified from accumulated other comprehensive income (loss) to the condensed consolidated statement of operations and comprehensive loss | (17) | 167 | (270) | 283 |
Net current-period other comprehensive (loss) income | (11,308) | (12,126) | (16,916) | (8,093) |
Ending balance | (29,651) | (2,685) | (29,651) | (2,685) |
Foreign Currency Adjustments [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (18,589) | 9,815 | (12,969) | 5,738 |
Other comprehensive (loss) income before reclassifications | (11,502) | (12,625) | (17,122) | (8,548) |
Amounts reclassified from accumulated other comprehensive income (loss) to the condensed consolidated statement of operations and comprehensive loss | 0 | 0 | 0 | 0 |
Net current-period other comprehensive (loss) income | (11,502) | (12,625) | (17,122) | (8,548) |
Ending balance | (30,091) | (2,810) | (30,091) | (2,810) |
Impact of Foreign Exchange Contracts, Net of Taxes [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | 246 | (374) | 234 | (330) |
Other comprehensive (loss) income before reclassifications | 211 | 332 | 476 | 172 |
Amounts reclassified from accumulated other comprehensive income (loss) to the condensed consolidated statement of operations and comprehensive loss | (17) | 167 | (270) | 283 |
Net current-period other comprehensive (loss) income | 194 | 499 | 206 | 455 |
Ending balance | $ 440 | $ 125 | $ 440 | $ 125 |
Capital Stock - Additional Info
Capital Stock - Additional Information (Detail) $ / shares in Units, $ in Thousands | Apr. 21, 2015USD ($)shares | Apr. 02, 2015 | Jun. 30, 2015USD ($) | Sep. 30, 2015USD ($)$ / sharesshares | Dec. 31, 2014USD ($) |
Temporary Equity [Line Items] | |||||
Authorized capital stock | shares | 300,000,000 | ||||
Common stock, par value | $ / shares | $ 0.01 | ||||
Common stock split conversion description | All earnings per share amounts and number of shares outstanding have been retroactively adjusted to give effect to a 2,800-for-1 split of the Company's common stock, which was effected on April 2, 2015. | ||||
Common stock split conversion ratio | 2,800 | 2,800 | |||
Net proceeds of the offering | $ 397,159 | ||||
Prepayment penalty percentage | 2.00% | ||||
Fair market value of fully paid and vested common securities | $ 0 | $ 35,062 | |||
Other Expense (Income), Net [Member] | Thomas H. Lee Partners, L.P. and Advent International Corporation [Member] | |||||
Temporary Equity [Line Items] | |||||
Management termination fee paid | $ 30,697 | ||||
Nextco Notes [Member] | |||||
Temporary Equity [Line Items] | |||||
Amount paid to redeem the debt Notes | 363,720 | ||||
Debt prepayment penalty amount | 7,000 | ||||
Payment of accrued interest | $ 6,720 | ||||
Capitalized debt issuance cost written off | 8,596 | ||||
Nextco Notes [Member] | Payment in Kind (PIK) Note [Member] | |||||
Temporary Equity [Line Items] | |||||
Issued notes | $ 350,000 | ||||
Nextco Notes [Member] | Other Expense (Income), Net [Member] | Payment in Kind (PIK) Note [Member] | |||||
Temporary Equity [Line Items] | |||||
Debt prepayment penalty amount | $ 7,000 | ||||
IPO [Member] | |||||
Temporary Equity [Line Items] | |||||
Common stock shares sold | shares | 25,156,250 |
Capital Stock - Summary of Chan
Capital Stock - Summary of Changes in Redeemable Common Securities (Detail) $ in Thousands | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Equity [Abstract] | |
Beginning balance | $ 35,062 |
Adjustment of common shares to fair value | 5,893 |
Impact of stockholders' agreement amendment and restatement | (40,955) |
Ending balance | $ 0 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2015Segment | |
Segment Reporting [Abstract] | |
Number of business segments | 2 |
Segment Information - Schedule
Segment Information - Schedule of Company's Industry Segment Data (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Revenues: | ||||
Net sales | $ 551,380 | $ 538,671 | $ 1,500,781 | $ 1,455,073 |
Royalties and franchise fees | 4,027 | 3,990 | 12,251 | 12,149 |
Total revenues | 555,407 | 542,661 | 1,513,032 | 1,467,222 |
Income (loss) from operations | 31,480 | 28,778 | 101,551 | 84,989 |
Interest expense, net | 29,554 | 39,218 | 101,430 | 117,103 |
Other expense (income), net | 79,130 | (116) | 126,519 | 4,435 |
Loss before income taxes | (77,204) | (10,324) | (126,398) | (36,549) |
Operating Segments [Member] | ||||
Revenues: | ||||
Net sales | 757,912 | 750,053 | 1,926,913 | 1,880,362 |
Royalties and franchise fees | 4,027 | 3,990 | 12,251 | 12,149 |
Total revenues | 761,939 | 754,043 | 1,939,164 | 1,892,511 |
Eliminations [Member] | ||||
Revenues: | ||||
Total revenues | (206,532) | (211,382) | (426,132) | (425,289) |
Wholesale [Member] | ||||
Revenues: | ||||
Total revenues | 211,915 | 212,585 | 497,585 | 486,972 |
Income (loss) from operations | 35,860 | 31,804 | 59,882 | 58,377 |
Wholesale [Member] | Operating Segments [Member] | ||||
Revenues: | ||||
Net sales | 418,447 | 423,967 | 923,717 | 912,261 |
Royalties and franchise fees | 0 | 0 | 0 | 0 |
Total revenues | 418,447 | 423,967 | 923,717 | 912,261 |
Wholesale [Member] | Eliminations [Member] | ||||
Revenues: | ||||
Total revenues | (206,532) | (211,382) | (426,132) | (425,289) |
Retail [Member] | ||||
Revenues: | ||||
Total revenues | 343,492 | 330,076 | 1,015,447 | 980,250 |
Income (loss) from operations | (4,380) | (3,026) | 41,669 | 26,612 |
Retail [Member] | Operating Segments [Member] | ||||
Revenues: | ||||
Net sales | 339,465 | 326,086 | 1,003,196 | 968,101 |
Royalties and franchise fees | 4,027 | 3,990 | 12,251 | 12,149 |
Total revenues | 343,492 | 330,076 | 1,015,447 | 980,250 |
Retail [Member] | Eliminations [Member] | ||||
Revenues: | ||||
Total revenues | $ 0 | $ 0 | $ 0 | $ 0 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Thousands | 9 Months Ended |
Sep. 30, 2015USD ($)Store | |
Commitments and Contingencies Disclosure [Abstract] | |
Number of stores sold to franchisees and other parties for which the company is an assignor | 3 |
Potential contingent lease obligations expiration year | 2,018 |
Maximum amount of the contingent lease obligations | $ | $ 539 |
Derivative Financial Instrume37
Derivative Financial Instruments - Additional Information (Detail) | 9 Months Ended |
Sep. 30, 2015 | |
Derivative [Line Items] | |
Foreign currency exchange contracts reclassified date | 2017-06 |
Foreign Exchange Risk Management [Member] | |
Derivative [Line Items] | |
Foreign exchange forward contracts maturity | 1 year |
Hedging effectiveness | 100.00% |
Derivative Financial Instrume38
Derivative Financial Instruments - Schedule of Fair Values of Derivatives (Detail) - Foreign Exchange Contracts [Member] - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Prepaid Expenses and Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | $ 917 | $ 0 |
Accrued Expenses [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | $ 802 | $ 476 |
Derivative Financial Instrume39
Derivative Financial Instruments - Schedule of Notional Amounts of Derivatives (Detail) - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 |
Foreign Exchange Contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional amounts | $ 19,624,000 | $ 8,900,000 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | $ 917 | $ 0 |
Derivative liabilities | 802 | 476 |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 917 | 0 |
Derivative liabilities | 802 | 476 |
Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | $ 0 | $ 0 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument Carrying Amount | $ 350,000 | $ 350,000 |
Notes issued rate | 6.125% | 6.125% |
Term Loan Credit Agreement [Member] | Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Senior secured term loan facility | $ 1,340,000 | $ 1,340,000 |
Debt Instrument Carrying Amount | $ 1,329,352 |
Fair Value Measurements - Sum42
Fair Value Measurements - Summary of Carrying Amount and Fair Value (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument Carrying Amount | $ 350,000 | $ 350,000 |
Debt Instrument Fair Value | 353,500 | |
Term Loan Credit Agreement [Member] | Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument Carrying Amount | 1,329,352 | |
Debt Instrument Fair Value | $ 1,337,186 |
Earnings Per Share - Reconcilia
Earnings Per Share - Reconciliation of Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Earnings Per Share [Abstract] | ||||
Net loss | $ (44,489) | $ (5,410) | $ (76,064) | $ (22,866) |
Weighted average shares - Basic | 119,253,707 | 94,027,724 | 109,470,099 | 93,966,622 |
Effect of dilutive securities: | ||||
Stock options | 0 | 0 | 0 | 0 |
Weighted average shares - Diluted | 119,253,707 | 94,027,724 | 109,470,099 | 93,966,622 |
Net loss per common share - Basic | $ (0.37) | $ (0.06) | $ (0.69) | $ (0.24) |
Net loss per common share - Diluted | $ (0.37) | $ (0.06) | $ (0.69) | $ (0.24) |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) | Apr. 02, 2015 | Sep. 30, 2015shares | Sep. 30, 2014shares | Sep. 30, 2015shares | Sep. 30, 2014shares |
Earnings Per Share Basic And Diluted [Line Items] | |||||
Common stock split conversion description | All earnings per share amounts and number of shares outstanding have been retroactively adjusted to give effect to a 2,800-for-1 split of the Company's common stock, which was effected on April 2, 2015. | ||||
Common stock split conversion ratio | 2,800 | 2,800 | |||
Equity Option [Member] | |||||
Earnings Per Share Basic And Diluted [Line Items] | |||||
Antidilutive securities excluded from calculation of earnings per share | 4,544,964 | 2,609,600 | 4,544,964 | 2,609,600 |
Long-Term Obligations - Summary
Long-Term Obligations - Summary of Long-Term Obligations (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||
Long-term obligations | $ 1,681,817 | $ 2,139,832 |
Less: current portion | (14,267) | (12,249) |
Long-term obligations, excluding current portion | 1,667,550 | 2,127,583 |
Capital Lease Obligations [Member] | ||
Debt Instrument [Line Items] | ||
Long-term obligations | 2,465 | 3,274 |
Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long-term obligations | 350,000 | 0 |
Old Term Loan Credit Agreement [Member] | Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Long-term obligations | 0 | 1,089,242 |
Term Loan Credit Agreement [Member] | Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Long-term obligations | 1,329,352 | 0 |
Nextco Notes [Member] | Payment in Kind (PIK) Note [Member] | ||
Debt Instrument [Line Items] | ||
Long-term obligations | 0 | 347,316 |
Old Senior Notes [Member] | Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Long-term obligations | $ 0 | $ 700,000 |
Long-Term Obligations - Summa46
Long-Term Obligations - Summary of Long-Term Obligations (Parenthetical) (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument Carrying Amount | $ 350,000 | $ 350,000 |
Notes issued rate | 6.125% | 6.125% |
Old Term Loan Credit Agreement [Member] | Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Senior secured term loan facility | $ 1,125,000 | $ 1,125,000 |
Term Loan Credit Agreement [Member] | Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Senior secured term loan facility | 1,340,000 | 1,340,000 |
Debt Instrument Carrying Amount | 1,329,352 | |
Old Senior Notes [Member] | Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument Carrying Amount | $ 700,000 | $ 700,000 |
Notes issued rate | 8.875% | 8.875% |
Long-Term Obligations - Additio
Long-Term Obligations - Additional Information (Detail) - USD ($) | 9 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | |
Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument Carrying Amount | $ 350,000,000 | $ 350,000,000 |
Notes issued rate | 6.125% | 6.125% |
Old Senior Notes [Member] | Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument Carrying Amount | $ 700,000,000 | $ 700,000,000 |
Notes issued rate | 8.875% | 8.875% |
Deferred financing costs, Write-off | $ 18,664,000 | |
Percentage of principal amount redeemed | 6.656% | |
Principal amount of senior notes | $ 46,592,000 | |
Old Term Loan Credit Agreement [Member] | Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Senior secured term loan facility | 1,125,000,000 | $ 1,125,000,000 |
Deferred financing costs, Write-off | 2,036,000 | |
Additional deferred financing costs, to be amortized | 9,308,000 | |
Original discount to be amortized | 3,592,000 | |
Unamortized call premium | 3,900,000 | |
Banker and legal fees | 12,837,000 | |
Old Term Loan Credit Agreement [Member] | Secured Debt [Member] | Other Expense [Member] | ||
Debt Instrument [Line Items] | ||
Original issuance discount, recorded in other expense | 786,000 | |
Call premium recorded in other expense, net | 853,000 | |
Banker and legal fees recorded in other expense | 9,758,000 | |
Old ABL Facility [Member] | Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Credit facility borrowing capacity | 400,000,000 | |
Deferred financing costs, Write-off | 321,000 | |
Term Loan Credit Agreement [Member] | Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument Carrying Amount | 1,329,352,000 | |
Senior secured term loan facility | 1,340,000,000 | $ 1,340,000,000 |
ABL Facility [Member] | Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Credit facility current borrowing capacity | 540,000,000 | |
Credit facility borrowing maximum capacity | 640,000,000 | |
Additional deferred financing costs, to be amortized | $ 2,246,000 |
Long-Term Obligations - Term Lo
Long-Term Obligations - Term Loan Credit Agreement - Additional Information (Detail) - Term Loan Credit Agreement [Member] $ in Thousands | 9 Months Ended |
Sep. 30, 2015USD ($)OptionPlan | |
Debt Instrument [Line Items] | |
Percentage of voluntary prepayments | 1.00% |
Percentage of net cash proceeds above sale of assets subject to debt mandatory prepayment | 100.00% |
Percentage of net cash proceeds of incurrence of debt subject to debt mandatory prepayment | 100.00% |
Percentage excess cash flow debt mandatory prepayment subject to leverage ratio | 50.00% |
Leverage ratio Above that Fifty percentage of Excess Cash Flow as defined in the New Term Loan Credit Agreement | 3.50 |
Leverage ratio below that zero percentage of Excess Cash Flow as defined in the New Term Loan Credit Agreement | 2.50 |
Maximum [Member] | |
Debt Instrument [Line Items] | |
Reduction in percentage of excess cash flow debt mandatory prepayment subject to leverage ratio | 25.00% |
Leverage ratio below that Twenty Five percentage of Excess Cash Flow as defined in the New Term Loan Credit Agreement | 3.50 |
Minimum [Member] | |
Debt Instrument [Line Items] | |
Reduction in percentage of excess cash flow debt mandatory prepayment subject to leverage ratio | 0.00% |
Leverage ratio below that Twenty Five percentage of Excess Cash Flow as defined in the New Term Loan Credit Agreement | 1 |
Secured Debt [Member] | |
Debt Instrument [Line Items] | |
Percentage of original issuance discount | 0.25% |
Original issuance discount, netted against debt | $ 3,350 |
Minimum adjustment rate of LIBOR | 2.00% |
Decreased LIBOR floor rate | 1.00% |
Number of pricing options | OptionPlan | 2 |
Credit facility maturity date | Aug. 19, 2022 |
Term loans repayment, quarterly installment percentage | 0.25% |
Third-party costs incurred and capitalized | $ 3,079 |
Secured Debt [Member] | Federal Fund Rate [Member] | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 0.50% |
Secured Debt [Member] | LIBOR [Member] | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 1.00% |
Interest rate on the outstanding term loan | 4.25% |
Secured Debt [Member] | Alternate Base Interest Rate Loans [Member] | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 2.25% |
Interest rate description | (i) an ABR for any day, a rate per annum equal to the greater of (a) the prime rate in effect on such day, (b) the federal funds effective rate in effect on such day plus 0.5%, (c) the adjusted LIBOR rate plus 1% and (d) 2.00% |
Secured Debt [Member] | LIBOR Based Loans [Member] | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 3.25% |
Interest rate description | (ii) the LIBOR rate, with a LIBOR floor of 1.00%, in each case plus an applicable margin. |
Long-Term Obligations - Senior
Long-Term Obligations - Senior Notes - Additional Information (Detail) - Senior Notes [Member] $ in Thousands | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Debt Instrument [Line Items] | |
Debt instrument maturity date | Aug. 15, 2023 |
Equity offering for senior notes description | Cash proceeds from certain equity offerings |
Repurchase of senior notes of principal amount | 101.00% |
Third-party costs incurred and capitalized | $ 6,485 |
Debt Instrument Redemption by Equity Offering Before August 15, 2018 [Member] | |
Debt Instrument [Line Items] | |
Percentage of principal amount redeemed | 106.125% |
Debt Instrument Redemption Period with Premium Before August 15, 2018 [Member] | |
Debt Instrument [Line Items] | |
Percentage of principal amount redeemed | 100.00% |
Maximum [Member] | |
Debt Instrument [Line Items] | |
Percentage of principal amount redeemed | 40.00% |
Long-Term Obligations - Summa50
Long-Term Obligations - Summary of Debt Instrument Redemption (Detail) - Senior Notes [Member] | 9 Months Ended |
Sep. 30, 2015 | |
Twelve-Month Period Beginning on August 15, 2018 [Member] | |
Debt Instrument, Redemption [Line Items] | |
Percentage of principal amount to be redeemed | 103.063% |
Twelve-Month Period Beginning on August 15, 2019 [Member] | |
Debt Instrument, Redemption [Line Items] | |
Percentage of principal amount to be redeemed | 101.531% |
Twelve-Month Period Beginning on August 15, 2020 and Thereafter [Member] | |
Debt Instrument, Redemption [Line Items] | |
Percentage of principal amount to be redeemed | 100.00% |
Long-Term Obligations - ABL Fac
Long-Term Obligations - ABL Facility - Additional Information (Detail) - ABL Facility [Member] - Revolving Credit Facility [Member] | 9 Months Ended |
Sep. 30, 2015USD ($)OptionPlan | |
Debt Instrument [Line Items] | |
Credit facility current borrowing capacity | $ 540,000,000 |
Credit facility borrowing maximum capacity | 640,000,000 |
Letters of credit outstanding maximum under our ABL facility | $ 50,000,000 |
Debt instrument maturity date | Aug. 19, 2020 |
Number of pricing options | OptionPlan | 2 |
Commitment fee percentage | 0.25% |
Percentage applied to aggregate commitments and borrowing base | 10.00% |
Applicability of fixed charge coverage ratio, description | PCHI must comply with a fixed charge coverage ratio if excess availability under the ABL Facility on any day is less than the greater of (a) 10% of the lesser of the aggregate commitments and the then borrowing base under the ABL Facility and (b) $40,000 |
Line of credit facility, excess availability | $ 40,000,000 |
Third-party costs incurred and capitalized | $ 1,688,000 |
Alternate Base Interest Rate Loans [Member] | |
Debt Instrument [Line Items] | |
Interest rate description | (i) an alternate base interest rate ("ABR") equal to the greater of (a) the prime rate, (b) the federal funds rate plus 0.5% or (c) the LIBOR rate plus 1%, in each case, on the date of such borrowing |
Alternate Base Interest Rate Loans [Member] | Minimum [Member] | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 0.25% |
Alternate Base Interest Rate Loans [Member] | Maximum [Member] | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 0.50% |
Federal Fund Rate [Member] | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 0.50% |
LIBOR [Member] | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 1.00% |
LIBOR Based Loans [Member] | |
Debt Instrument [Line Items] | |
Interest rate description | (ii) a LIBOR based interest rate, in each case plus an applicable margin |
LIBOR Based Loans [Member] | Minimum [Member] | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 1.25% |
LIBOR Based Loans [Member] | Maximum [Member] | |
Debt Instrument [Line Items] | |
Basis spread on variable rate | 1.50% |