Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Feb. 28, 2017 | Jun. 30, 2016 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | PRTY | ||
Entity Registrant Name | Party City Holdco Inc. | ||
Entity Central Index Key | 1,592,058 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 119,524,854 | ||
Entity Public Float | $ 418,306,722 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 64,610 | $ 42,919 |
Accounts receivable, net | 134,091 | 132,287 |
Inventories, net | 613,868 | 564,259 |
Prepaid expenses and other current assets | 68,255 | 50,450 |
Total current assets | 880,824 | 789,915 |
Property, plant and equipment, net | 292,904 | 272,420 |
Goodwill | 1,572,568 | 1,562,515 |
Trade names | 566,599 | 568,712 |
Other intangible assets, net | 76,581 | 89,157 |
Other assets, net | 4,502 | 9,684 |
Total assets | 3,393,978 | 3,292,403 |
Current liabilities: | ||
Loans and notes payable | 120,138 | 126,136 |
Accounts payable | 163,415 | 111,616 |
Accrued expenses | 149,683 | 146,319 |
Income taxes payable | 46,675 | 8,504 |
Current portion of long-term obligations | 13,348 | 14,552 |
Total current liabilities | 493,259 | 407,127 |
Long-term obligations, excluding current portion | 1,539,604 | 1,646,121 |
Deferred income tax liabilities | 278,819 | 276,667 |
Deferred rent and other long-term liabilities | 65,507 | 49,471 |
Total liabilities | 2,377,189 | 2,379,386 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Common stock (119,515,894 and 119,258,374 shares issued and outstanding at December 31, 2016 and December 31, 2015, respectively) | 1,195 | 1,193 |
Additional paid-in capital | 910,167 | 904,425 |
Retained earnings | 157,666 | 40,189 |
Accumulated other comprehensive loss | (52,239) | (32,790) |
Total stockholders' equity | 1,016,789 | 913,017 |
Total liabilities and stockholders' equity | $ 3,393,978 | $ 3,292,403 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - shares | Dec. 31, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Common stock, shares issued | 119,515,894 | 119,258,374 |
Common stock, shares outstanding | 119,515,894 | 119,258,374 |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues: | |||
Net sales | $ 2,266,386 | $ 2,275,122 | $ 2,251,589 |
Royalties and franchise fees | 17,005 | 19,411 | 19,668 |
Total revenues | 2,283,391 | 2,294,533 | 2,271,257 |
Expenses: | |||
Cost of sales | 1,350,387 | 1,370,884 | 1,375,706 |
Wholesale selling expenses | 59,956 | 64,260 | 73,910 |
Retail operating expenses | 408,583 | 401,039 | 397,110 |
Franchise expenses | 15,213 | 14,394 | 14,281 |
General and administrative expenses | 152,919 | 151,097 | 147,718 |
Art and development costs | 22,249 | 20,640 | 19,390 |
Total expenses | 2,009,307 | 2,022,314 | 2,028,115 |
Income from operations | 274,084 | 272,219 | 243,142 |
Interest expense, net | 89,380 | 123,361 | 155,917 |
Other (income) expense, net | (2,010) | 130,990 | 5,891 |
Income before income taxes | 186,714 | 17,868 | 81,334 |
Income tax expense | 69,237 | 7,409 | 25,211 |
Net income | $ 117,477 | $ 10,459 | $ 56,123 |
Net income per common share-basic | $ 0.98 | $ 0.09 | $ 0.60 |
Net income per common share-diluted | $ 0.98 | $ 0.09 | $ 0.59 |
Weighted-average number of common shares-basic | 119,381,842 | 111,917,168 | 93,996,355 |
Weighted-average number of common shares-diluted | 120,369,672 | 112,943,807 | 94,444,137 |
Other comprehensive loss, net of tax: | |||
Foreign currency adjustments | $ (19,770) | $ (20,432) | $ (18,707) |
Cash flow hedges | 321 | 377 | 564 |
Other comprehensive loss, net | (19,449) | (20,055) | (18,143) |
Comprehensive income (loss) | $ 98,028 | $ (9,596) | $ 37,980 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings (Deficit) [Member] | Accumulated Other Comprehensive (Loss) Income [Member] |
Balance at Dec. 31, 2013 | $ 456,757 | $ 909 | $ 476,629 | $ (26,189) | $ 5,408 |
Balance, Shares at Dec. 31, 2013 | 90,917,952 | ||||
Net income | 56,123 | 56,123 | |||
Equity based compensation | 1,583 | 1,583 | |||
Adjustment of redeemable common shares | (9,713) | $ 1 | (9,714) | ||
Adjustment of redeemable common shares, Shares | 83,222 | ||||
Exercise of stock options | 37 | 37 | |||
Exercise of stock options, Shares | 6,720 | ||||
Foreign currency adjustments | (18,707) | (18,707) | |||
Excess tax benefit from stock options | 582 | 582 | |||
Impact of foreign exchange contracts, net | 564 | 564 | |||
Balance at Dec. 31, 2014 | 487,226 | $ 910 | 469,117 | 29,934 | (12,735) |
Balance, Shares at Dec. 31, 2014 | 91,007,894 | ||||
Net income | 10,459 | 10,459 | |||
Equity based compensation | 3,042 | 3,042 | |||
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 | (20,432) | (20,432) | |||
Excess tax benefit from stock options | 298 | 298 | |||
Spin-off of subsidiary | (204) | (204) | |||
Impact of foreign exchange contracts, net | 377 | 377 | |||
Balance at Dec. 31, 2015 | $ 913,017 | $ 1,193 | 904,425 | 40,189 | (32,790) |
Balance, Shares at Dec. 31, 2015 | 119,258,374 | 119,258,374 | |||
Net income | $ 117,477 | 117,477 | |||
Equity based compensation | 3,853 | 3,853 | |||
Exercise of stock options | 1,373 | $ 2 | 1,371 | ||
Exercise of stock options, Shares | 257,520 | ||||
Foreign currency adjustments | (19,770) | (19,770) | |||
Excess tax benefit from stock options | 518 | 518 | |||
Impact of foreign exchange contracts, net | 321 | 321 | |||
Balance at Dec. 31, 2016 | $ 1,016,789 | $ 1,195 | $ 910,167 | $ 157,666 | $ (52,239) |
Balance, Shares at Dec. 31, 2016 | 119,515,894 | 119,515,894 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows provided by operating activities: | |||
Net income | $ 117,477 | $ 10,459 | $ 56,123 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization expense | 83,630 | 80,515 | 82,890 |
Amortization of deferred financing costs | 5,818 | 40,516 | 15,610 |
Provision for doubtful accounts | 781 | 223 | 1,783 |
Deferred income tax expense (benefit) | 3,401 | (6,178) | (13,758) |
Deferred rent | 18,835 | 13,407 | 14,418 |
Undistributed loss in unconsolidated joint ventures | 314 | 562 | 1,556 |
Impairment of intangible assets | 0 | 852 | 0 |
Impairment of fixed assets | 0 | 0 | 1,012 |
Loss (gain) on disposal of equipment | 14 | (2,593) | 2,310 |
Equity based compensation | 3,853 | 3,042 | 1,583 |
Changes in operating assets and liabilities, net of effects of acquired businesses: | |||
(Increase) decrease in accounts receivable | (5,898) | 6,868 | (7,202) |
(Increase) decrease in inventories | (42,819) | 15,515 | (55,786) |
(Increase) decrease in prepaid expenses and other current assets | (14,499) | (4,683) | 5,813 |
Increase (decrease) in accounts payable, accrued expenses and income taxes payable | 86,893 | (78,293) | 30,035 |
Net cash provided by operating activities | 257,800 | 80,212 | 136,387 |
Cash flows used in investing activities: | |||
Cash paid in connection with acquisitions, net of cash acquired | (31,820) | (22,615) | (12,377) |
Capital expenditures | (81,948) | (78,825) | (78,241) |
Proceeds from disposal of property and equipment | 35 | 1,304 | 986 |
Net cash used in investing activities | (113,733) | (100,136) | (89,632) |
Cash flows (used in) provided by financing activities: | |||
Repayment of loans, notes payable and long-term obligations | (1,521,218) | (2,561,594) | (1,374,017) |
Proceeds from loans, notes payable and long-term obligations | 1,399,717 | 2,198,600 | 1,349,197 |
Cash held in escrow in connection with acquisitions | 0 | (3,832) | 0 |
Excess tax benefit from stock options | 518 | 298 | 582 |
Exercise of stock options | 1,373 | 30 | 1,080 |
Issuance of common stock | 0 | 397,159 | 0 |
Debt issuance costs | (130) | (11,720) | (372) |
Net cash (used in) provided by financing activities | (119,740) | 18,941 | (23,530) |
Effect of exchange rate changes on cash and cash equivalents | (2,636) | (3,312) | (1,656) |
Net increase (decrease) in cash and cash equivalents | 21,691 | (4,295) | 21,569 |
Cash and cash equivalents at beginning of period | 42,919 | 47,214 | 25,645 |
Cash and cash equivalents at end of period | 64,610 | 42,919 | 47,214 |
Cash paid during the period | |||
Interest | 86,183 | 143,458 | 145,632 |
Income taxes, net of refunds | $ 26,883 | $ 40,134 | $ 14,455 |
Consolidated Statements of Cas7
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Cash Flows [Abstract] | |||
Capital lease obligations | $ 1,623 | $ 223 | $ 1,474 |
Organization, Description of Bu
Organization, Description of Business and Basis of Presentation | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Description of Business and Basis of Presentation | Note 1 — Organization, Description of Business and Basis of Presentation Party City Holdco Inc. (the “Company” or “Party City Holdco”) is a vertically integrated supplier of decorated party goods. The Company designs, manufactures, sources and distributes party goods, including paper and plastic tableware, metallic and latex balloons, Halloween and other costumes, accessories, novelties and stationery throughout the world. The Company’s operations include over 900 specialty retail party supply stores (including franchise stores) in the United States and Canada operating under the names Party City and Halloween City, and e-commerce websites, principally through the domain name PartyCity.com. Party City Holdco also 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. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
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. 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. The Company’s consolidated financial statements for the year ended December 31, 2014 include the results of its retail operations for the 53-week Fiscal Year ended January 3, 2015. Use of Estimates The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Management periodically evaluates estimates used in the preparation of the consolidated financial statements for continued reasonableness. Appropriate adjustments, if any, to the estimates used are made prospectively based on such periodic evaluations. Cash Equivalents Highly liquid investments with a maturity of three months or less when purchased are considered to be cash equivalents. All credit card transactions that process in less than seven days are classified as cash and cash equivalents. Inventories Inventories are valued at the lower of cost or market. The Company principally determines the cost of inventory using the weighted average method. The Company estimates retail inventory shortage 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 The Company maintains allowances for doubtful accounts for estimated losses resulting from the inability of the Company’s customers to make required payments. A considerable amount of judgment is required in assessing the ultimate realization of these receivables, including consideration of the Company’s history of receivable write-offs, the level of past due accounts and the economic status of the Company’s customers. In an effort to identify adverse trends relative to customer economic status, the Company assesses the financial health of the markets it operates in and performs periodic credit evaluations of its customers and ongoing reviews of account balances and aging of receivables. Amounts are considered past due when payment has not been received within the time frame of the credit terms extended. Write-offs are charged directly against the allowance for doubtful accounts and occur only after all collection efforts have been exhausted. At December 31, 2016 and December 31, 2015, the allowance for doubtful accounts was $2,683 and $2,343, respectively. Long-Lived and Intangible Assets (including Goodwill) Property, plant and equipment are stated at cost. Equipment under capital leases are stated at the present value of the minimum lease payments at the inception of the lease. Depreciation is calculated principally on the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized on a straight-line basis over the shorter of the lease term or the estimated useful life of the asset. The Company reviews the recoverability of its finite long-lived assets, including finite-lived intangible assets, whenever facts and circumstances indicate that the carrying amount may not be fully recoverable. For purposes of recognizing and measuring impairment, the Company evaluates long-lived assets other than goodwill based upon the lowest level of independent cash flows ascertainable to evaluate impairment. If the sum of the undiscounted future cash flows expected over the remaining asset life is less than the carrying value of the assets, the Company may recognize an impairment loss. The impairment related to long-lived assets is measured as the amount by which the carrying amount of the asset exceeds the fair value of the asset. In the evaluation of the fair value and future benefits of finite long-lived assets attached to retail stores, the Company performs its cash flow analysis on a store-by-store basis. Various factors including future sales growth and profit margins are included in this analysis. Goodwill represents the excess of the purchase price of acquired companies over the estimated fair value of the net assets acquired. Goodwill and other intangibles with indefinite lives are not amortized, but are reviewed for impairment annually or more frequently if certain indicators arise. The Company evaluates the goodwill associated with its acquisitions, and other intangibles with indefinite lives, for impairment as of the first day of its fourth quarter based on current and projected performance. For purposes of testing goodwill for impairment, reporting units are determined by identifying individual components within the Company’s organization which constitute a business for which discrete financial information is available and is reviewed by management. Components within a segment are aggregated to the extent that they have similar economic characteristics. Based on this evaluation, the Company has determined that its operating segments, wholesale and retail, represent reporting units for the purposes of its goodwill impairment test. If it is concluded that it is more likely than not that the Company’s goodwill is impaired, the Company estimates the fair value of each reporting unit using a combination of a market approach and an income approach. If the carrying amount of a reporting unit exceeds its fair value, the excess, if any, of the fair value of the reporting unit over amounts allocable to the unit’s other assets and liabilities is the implied fair value of goodwill. If the carrying amount of a reporting unit’s goodwill exceeds the implied fair value of that goodwill, an impairment loss will be recognized in an amount equal to that excess. The fair value of a reporting unit refers to the amount at which the unit as a whole could be sold in a current transaction between willing parties. Deferred Financing Costs Deferred financing costs are netted against amounts outstanding under the related debt instruments. They are amortized to interest expense over the lives of the instruments using the effective interest method. Deferred Rent and Rental Expenses The Company leases its retail stores under operating leases that generally have initial terms of ten years, with two five year renewal options. The Company’s leases may have early cancellation clauses, which permit the lease to be terminated if certain sales levels are not met in specific periods, and may provide for the payment of contingent rent based on a percentage of the store’s net sales. The Company’s lease agreements generally have defined escalating rent provisions, which are reported as a deferred rent liability and expensed on a straight-line basis over the term of the related lease, commencing with the date of possession. In addition, the Company may receive cash allowances from its landlords on certain properties, which are reported as deferred rent and amortized to rent expense over the term of the lease, also commencing with the date of possession. Retail’s deferred rent liability at December 31, 2016 and 2015 was $68,857 and $49,826, respectively. Investments The Company has an investment in Convergram Mexico, S. De R.L. De C.V., a joint venture distributing metallic balloons, principally in Mexico and Latin America. The Company accounts for its 49.9% investment in the joint venture using the equity method. Additionally, the Company has an investment in PD Retail Group Limited, a joint venture operating party goods stores in the United Kingdom (“U.K.”). The Company accounts for its 50% investment using the equity method. The Company’s investments in the joint ventures are included in other assets on the consolidated balance sheet and the results of the joint ventures’ operations are included in other expense (income) in the consolidated statement of income and comprehensive income (loss) (see Note 10). Insurance Accruals The Company maintains certain self-insured workers’ compensation and general liability insurance plans. The Company estimates the required liability for claims under such plans based upon various assumptions, which include, but are not limited to, historical loss experience, projected loss development factors, actual payroll and other data. The required liability is also subject to adjustment in the future based upon changes in claims experience, including changes in the number of incidents (frequency) and changes in the ultimate cost per incident (severity). Revenue Recognition The Company’s terms of sale to retailers and other distributors for substantially all of its sales is free-on-board (“F.O.B.”) shipping point and, accordingly, title and the risks and rewards of ownership are transferred to the customer, and revenue is recognized, when goods are shipped. The Company estimates reductions to revenues for volume-based rebate programs at the time sales are recognized. Wholesale sales returns are not significant as, generally, we only accept the return of goods that were shipped to retailers in error. Revenue from retail store operations is recognized at the point of sale. Retail e-commerce sales are recognized on a F.O.B destination basis. The Company estimates future retail sales returns and records a provision in the period that the related sales are recorded based on historical information. Retail sales are reported net of taxes collected. Franchise fee revenue is recognized upon the completion of the Company’s performance requirements and the opening of the franchise store. In addition to the initial franchise fee, the Company also recognizes royalty fees generally ranging from 4% to 6% of net sales and advertising fund fees ranging from 1% to 2.25% of net sales each based upon the franchised stores’ reported gross retail sales. Additionally, the terms of the Company’s franchise agreements also provide for payments to franchisees based on e-commerce sales originating from specified areas relating to the franchisees’ contractual territory. The amounts paid by the Company vary based on several factors, including the profitability of the Company’s e-commerce sales, and are expensed at the time of sale. Revenues, and the related profit, on sales from the Company’s wholesale operations to its retail operations are eliminated in consolidation. Cost of Sales Cost of sales at wholesale reflects the production costs (i.e., raw materials, labor and overhead) of manufactured goods and the direct cost of purchased goods, inventory shrinkage at both retail and wholesale, inventory adjustments, inbound freight to the Company’s manufacturing and distribution facilities, distribution costs and outbound freight to transfer goods to the Company’s wholesale customers. At retail, cost of sales reflects the direct cost of goods purchased from third parties and the production or purchase costs of goods acquired from the Company’s wholesale operations. Retail cost of sales also includes inventory shrinkage, inventory adjustments, inbound freight, occupancy costs related to store operations, such as rent and common area maintenance, utilities and depreciation on assets, and all logistics costs (i.e., procurement, handling and distribution costs) associated with the Company’s e-commerce business. Retail Operating Expenses Retail operating expenses include the costs and expenses associated with the operation of the Company’s retail stores, with the exception of occupancy costs included in cost of sales. Retail operating expenses principally consist of employee compensation and benefits, advertising, supplies expense and credit card and banking fees. Shipping and Handling Outbound shipping costs billed to customers are included in net sales. The costs of shipping and handling incurred by the Company are included in cost of sales. Restructuring and Store Closure Costs The Company records estimated store closure costs, estimated lease commitment costs (net of estimated sublease income) and other miscellaneous store closing costs when the liability is incurred. Product Royalty Agreements The Company enters into product royalty agreements that allow the Company to use licensed designs on certain of its products. These contracts require the Company to pay royalties, generally based on the sales of such product, and may require guaranteed minimum royalties, a portion of which may be paid in advance. The Company matches royalty expense with revenue by recording royalties at the time of sale, at the greater of the contractual rate or an effective rate calculated based on the guaranteed minimum royalty and the Company’s estimate of sales during the contract period. If a portion of the guaranteed minimum royalty is determined to be unrecoverable, the unrecoverable portion is charged to expense at that time. Guaranteed minimum royalties paid in advance are recorded in the consolidated balance sheets in either prepaid expenses and other current assets or other assets, depending on the nature of the royalties. Catalog Costs The Company expenses costs associated with the production of catalogs when incurred. Advertising Advertising costs are expensed as incurred. Retail advertising expenses for the years ended December 31, 2016, December 31, 2015, and December 31, 2014 were $63,528, $62,495, and $64,816, respectively. Art and Development Costs Art and development costs are primarily internal costs that are not easily associated with specific designs, some of which may not reach commercial production. Accordingly, the Company expenses these costs as incurred. Derivative Financial Instruments Accounting Standards Codification (“ASC”) Topic 815, “Accounting for Derivative Instruments and Hedging Activities”, requires that all derivative financial instruments be recognized on the balance sheet at fair value and establishes criteria for both the designation and effectiveness of hedging activities. The Company uses derivatives in the management of interest rate and foreign currency exposure. ASC Topic 815 requires the Company to formally document the assets, liabilities or other transactions the Company designates as hedged items, the risk being hedged and the relationship between the hedged items and the hedging instruments. The Company must measure the effectiveness of the hedging relationship at the inception of the hedge and on an on-going basis. If derivative financial instruments qualify as fair value hedges, the gain or loss on the instrument and the offsetting loss or gain on the hedged item attributable to the hedged risk are recognized in net income during the period of the change in fair values. For derivative financial instruments that qualify as cash flow hedges ( i.e i.e Income Taxes Deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities (and operating loss and tax credit carryforwards) applying enacted statutory tax rates in effect for the years in which the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance when, in the judgment of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Stock-Based Compensation Accounting for stock-based compensation requires measurement of compensation cost for all stock-based awards at fair value on the date of grant and recognition of compensation expense over the service period for awards expected to vest. Accumulated Other Comprehensive Loss Accumulated other comprehensive loss consists of the Company’s foreign currency adjustments and the impact of interest rate swap and foreign exchange contracts that qualify as hedges (see Notes 18 and 19). Foreign Currency Transactions and Translation The functional currencies of the Company’s foreign operations are the local currencies in which they operate. Foreign currency exchange gains or losses resulting from receivables or payables in currencies other than the functional currencies generally are credited or charged to operations. The balance sheets of foreign subsidiaries are translated into U.S. dollars at the exchange rates in effect on the balance sheet date. The results of operations of foreign subsidiaries are translated into U.S. dollars at the average exchange rates effective for the periods presented. The differences from historical exchange rates are recorded as comprehensive income (loss) and are included as a component of accumulated other comprehensive loss. Earnings Per Share Basic earnings per share are computed by dividing net income available for common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share are calculated based on the weighted average number of outstanding common shares plus the dilutive effect of stock options as if they were exercised. A reconciliation between basic and diluted income per share is as follows: Year Ended Year Ended Year Ended 2014 Net income attributable to Party City Holdco Inc.: $ 117,477 $ 10,459 $ 56,123 Weighted average shares — Basic: 119,381,842 111,917,168 93,996,355 Effect of dilutive stock options: 987,830 1,026,639 447,782 Weighted average shares — Diluted: 120,369,672 112,943,807 94,444,137 Net income per common share — Basic: $ 0.98 $ 0.09 $ 0.60 Net income per common share — Diluted: $ 0.98 $ 0.09 $ 0.59 All earnings per share amounts, and the 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 the years ended December 31, 2016, December 31, 2015 and December 31, 2014, 2,371,876 stock options, 1,991,965 stock options and 0 stock options, respectively, were excluded from the calculations of net income per common share — diluted as they were anti-dilutive. Recently Issued Accounting Pronouncements In November 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-18, “Statement of Cash Flows: Restricted Cash”. The pronouncement clarifies how entities should present changes in restricted cash on the statement of cash flows. The update is effective for the Company during the first quarter of 2018. The Company is in the process of evaluating the impact of the pronouncement on the Company’s consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments”. The pronouncement clarifies how entities should classify certain cash receipts and cash payments on the statement of cash flows. The update is effective for the Company during the first quarter of 2018. The Company is in the process of evaluating the impact of the pronouncement on the Company’s consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, “Compensation — Stock Compensation: Improvements to Employee Share-Based Payment Accounting”. The pronouncement simplifies several aspects of the accounting for share-based payment transactions. The update is 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 February 2016, the FASB issued ASU 2016-02, “Leases”. The ASU requires that companies recognize on their balance sheets assets and liabilities for the rights and obligations created by the companies’ leases. The update is effective for the Company during the first quarter of 2019. The Company is in the process of evaluating the impact of the pronouncement on the Company’s consolidated financial statements. See notes 8 and 14 for detail of the Company’s leases. In January 2016, the FASB issued ASU 2016-01, “Financial Instruments – Overall: Recognition and Measurement of Financial Assets and Financial Liabilities”. The update impacts the accounting for equity investments and the recognition of changes in fair value of financial liabilities when the fair value option is elected. The pronouncement will be effective for the Company during the first quarter of 2018. Although the Company continues to evaluate this pronouncement, it does not believe that it will have a material impact on the Company’s consolidated financial statements. In September 2015, the FASB issued ASU 2015-16, “Business Combinations: Simplifying the Accounting for Measurement-Period Adjustments”. The update requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The Company adopted the update during the three months ended March 31, 2016 and such adoption did not have a material impact on the Company’s consolidated financial statements. In July 2015, the FASB issued ASU 2015-11, “Inventory: 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 2015-05, “Intangibles – Goodwill and Other – Internal-Use Software: Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement”. The update amended the guidance on internal use software to clarify how customers in cloud computing arrangements should determine whether the arrangements include software licenses. The Company adopted the update during the three months ended March 31, 2016 and such adoption did not have a material impact on the Company’s consolidated financial statements. In June 2014, the FASB issued ASU 2014-12, “Compensation – Stock Compensation: 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 Company adopted the update during the three months ended March 31, 2016 and such adoption did not have any 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. 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; as well as the alternatives for the method of adoption. The Company currently anticipates adopting the pronouncement through a cumulative-effect adjustment; although this is subject to the completion of its analysis of the standard. The Company will continue its evaluation of ASU 2014-09 through the date of adoption. |
Inventories, Net
Inventories, Net | 12 Months Ended |
Dec. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories, Net | Note 3 — Inventories, Net Inventories consisted of the following: December 31, 2016 2015 Finished goods $ 581,277 $ 532,606 Raw materials 23,222 21,278 Work in process 9,369 10,375 $ 613,868 $ 564,259 |
Property, Plant and Equipment,
Property, Plant and Equipment, Net | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, Net | Note 4 — Property, Plant and Equipment, Net Property, plant and equipment, net consisted of the following: December 31, 2016 2015 Useful lives Machinery and equipment $ 157,170 $ 135,004 3-15 years Buildings 67,851 67,727 40 years Data processing 49,688 41,674 3-5 years Leasehold improvements 109,218 91,067 1-10 years Furniture and fixtures 163,539 141,089 5-10 years Land 10,450 9,294 557,916 485,855 Less: accumulated depreciation (265,012 ) (213,435 ) $ 292,904 $ 272,420 Depreciation and amortization expense related to property, plant and equipment, including assets under capital leases, was $66,383, $61,630, and $60,695, for the years ended December 31, 2016, December 31, 2015, and December 31, 2014, respectively. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Acquisitions | Note 5 — Acquisitions During January 2016, the Company acquired 19 franchise stores located in Arizona and New Mexico for total consideration of approximately $26,500. The following summarizes the fair values of the major classes of assets acquired and liabilities assumed: inventories of $8,484, property, plant and equipment of $765, a reacquired right intangible asset in the amount of $5,200 and a liability in the amount of $500 due to leases that are unfavorable when compared to market rates. The allocation of the purchase price is based on the Company’s estimate of the fair value of the assets acquired and liabilities assumed. Goodwill, which is tax-deductible, arose due to numerous factors, including the wholesale profit generated via the sale of product from the Company’s wholesale operations through the 19 stores. Goodwill also arose due to the value to the Company of customers knowing that there are party stores in the locations (when the Company opens a new store, sales are initially lower than those of mature stores and increase over time), the Company’s ability to run the stores more efficiently than the franchisee based on the Company’s experience with its approximately 700 corporate-owned stores and the assembled workforce at the 19 stores. Additionally, during March 2016, the Company acquired Festival S.A. (“Festival”), a manufacturer of costumes and accessories, for approximately $5,500. The following summarizes the fair values of the major classes of assets acquired and liabilities assumed: inventories of $2,990, accounts receivable of $591, property, plant and equipment of $338 and current liabilities of $1,994. $3,572 has been recorded as goodwill. The allocation of the purchase price is based on the Company’s estimate of the fair value of the assets acquired and liabilities assumed. Goodwill, which is not tax-deductible, arose due to synergies expected to be generated by selling the manufactured costumes in the Company’s approximately 700 corporate-owned Party City stores, in its temporary Halloween City stores and via its e-commerce sites. During August 2015, the Company acquired 75% of the operations of Accurate Custom Injection Molding Inc. (“ACIM”) for total consideration of approximately $10,000. Based on the terms of the acquisition agreement, the Company will acquire the remaining 25% interest in ACIM over the next eight years and the Company’s liability for the estimated purchase price of such interest was $0 at December 31, 2016. The liability represents a Level 3 fair value measurement as it is based on unobservable inputs. During March 2015, the Company acquired all of the stock of Travis Designs Limited (“Travis”), a U.K.-based Pro forma financial information has not been presented because the impact of the acquisitions individually, and in the aggregate, is not material to the Company’s consolidated financial results. Goodwill Changes by Reporting Segment For the years ended December 31, 2016 and December 31, 2015 goodwill changes, by reporting segment, were as follows: Year Ended Year Ended Wholesale segment: Beginning balance $ 494,299 $ 492,096 Travis acquisition 0 7,489 ACIM acquisition 0 548 Festival acquisition 3,572 0 Foreign currency impact (6,012 ) (5,834 ) Ending balance 491,859 494,299 Retail segment: Beginning balance 1,068,216 1,065,154 Store acquisitions 12,869 4,028 Foreign currency impact (376 ) (966 ) Ending balance 1,080,709 1,068,216 Total ending balance, both segments $ 1,572,568 $ 1,562,515 |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Note 6 — Intangible Assets The Company had the following other identifiable intangible assets: December 31, 2016 Cost Accumulated Net Useful lives Retail franchise licenses $ 72,200 $ 27,600 $ 44,600 4-19 years Customer lists and relationships 56,385 30,796 25,589 20 years Copyrights and designs 29,030 24,454 4,576 5-7 years Leasehold interests 15,556 14,140 1,416 1-11 years Design licenses 2,469 2,469 0 1-4 years Non-compete agreements 500 100 400 5 years Total $ 176,140 $ 99,559 $ 76,581 December 31, 2015 Cost Accumulated Net Useful lives Retail franchise licenses $ 67,000 $ 20,900 $ 46,100 19 years Customer lists and relationships 56,459 25,592 30,867 20 years Copyrights and designs 29,030 20,352 8,678 5-7 years Leasehold interests 16,045 13,174 2,871 1-11 years Design licenses 2,469 2,328 141 1-4 years Non-compete agreements 500 0 500 5 years Total $ 171,503 $ 82,346 $ 89,157 The Company is amortizing the majority of its intangible assets utilizing accelerated patterns based on the discounted cash flows that were used to value such assets. The amortization expense for finite-lived intangible assets for the years ended December 31, 2016, December 31, 2015, and December 31, 2014 was $17,247, $18,885, and $22,195, respectively. Estimated amortization expense for each of the next five years will be approximately $14,230, $10,883, $9,799, $7,363, and $6,512, respectively. In addition to the Company’s finite-lived intangible assets, the Company has recorded indefinite-lived intangible assets for the Party City trade name, the Amscan trade name, the Halloween City trade name, the partycity.com domain name and the partydelights.co.uk domain name. |
Loans and Notes Payable
Loans and Notes Payable | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Loans and Notes Payable | Note 7 — Loans and Notes Payable ABL Facility The Company has a $540,000 asset-based revolving credit facility (with a seasonal increase to $640,000 during a certain period of each calendar year) (“ABL Facility”), which matures on August 19, 2020. It provides for (a) revolving loans, subject to a borrowing base described below, and (b) letters of credit, in an aggregate face amount at any time outstanding not to exceed $50,000. Under the ABL Facility, the borrowing base at any time equals (a) a percentage of eligible trade receivables, plus (b) a percentage of eligible inventory, plus (c) a percentage of eligible credit card receivables, less (d) certain reserves. The ABL Facility generally provides for two pricing options: (i) an alternate base interest rate (“ABR”) equal to the greater of (a) the prime rate, (b) the federal funds rate plus 0.5% or (c) the LIBOR rate plus 1%, in each case, on the date of such borrowing or (ii) a LIBOR based interest rate, in each case plus an applicable margin. The applicable margin ranges from 0.25% to 0.50% with respect to ABR borrowings and from 1.25% to 1.50% with respect to LIBOR borrowings. In addition to paying interest on outstanding principal, the Company is required to pay a commitment fee of 0.25% per annum in respect of unutilized commitments. The Company must also pay customary letter of credit fees. All obligations under the ABL Facility are jointly and severally guaranteed by PC Intermediate, PCHI and each existing and future domestic subsidiary of PCHI. PCHI and each guarantor has secured its obligations, subject to certain exceptions and limitations, including obligations under its guaranty, as applicable, by a first-priority lien on its accounts receivable, inventory, cash and certain related assets and a second-priority lien on substantially all of its other assets. The facility contains negative covenants that, among other things and subject to certain exceptions, restrict the ability of PCHI to: • incur additional indebtedness; • pay dividends on capital stock or redeem, repurchase or retire capital stock; • make certain investments, loans, advances and acquisitions; • engage in transactions with affiliates; • create liens; and • transfer or sell certain assets. In addition, PCHI must comply with a fixed charge coverage ratio if excess availability under the ABL Facility on any day is less than the greater of: (a) 10% of the lesser of the aggregate commitments and the then borrowing base under the ABL Facility and (b) $40,000. The fixed charge coverage ratio is the ratio of (i) Adjusted EBITDA (as defined in the facility) minus maintenance-related capital expenditures (as defined in the facility) to (ii) fixed charges (as defined in the facility). The ABL Facility also contains certain customary affirmative covenants and events of default. In connection with entering into the ABL Facility, the Company incurred and capitalized third-party costs. All capitalized costs are being amortized over the life of the ABL Facility and are included in loans and notes payable in the Company’s consolidated balance sheet. The balance of related unamortized financing costs at December 31, 2016 was $3,049. Borrowings under the ABL Facility totaled $122,025 at December 31, 2016. The weighted average interest rate for such borrowings was 2.49% at December 31, 2016. Outstanding standby letters of credit totaled $26,681 at December 31, 2016 and, after considering borrowing base restrictions, at December 31, 2016 PCHI had $368,484 of available borrowing capacity under the terms of the facility. Other Credit Agreements The Company’s subsidiaries have also entered into several foreign asset-based and overdraft credit facilities that provide the Company with additional borrowing capacity. At December 31, 2016 and December 31, 2015, there were $1,162 and $0 borrowings outstanding under the foreign facilities, respectively. The facilities contain customary affirmative and negative covenants. |
Long-Term Obligations
Long-Term Obligations | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Long-Term Obligations | Note 8 — Long-Term Obligations Long-term obligations consisted of the following: December 31, 2016 2015 Senior secured term loan facility (“Term Loan Credit Agreement”) (a) $ 1,205,496 $ 1,314,538 6.125% senior notes (“Senior Notes”) (b) 344,544 343,721 Capital lease obligations (c) 2,912 2,414 Total long-term obligations 1,552,952 1,660,673 Less: current portion (13,348 ) (14,552 ) Long-term obligations, excluding current portion $ 1,539,604 $ 1,646,121 Term Loan Credit Agreement (a) During October 2016, the Company amended its Term Loan Credit Agreement. In conjunction with the amendment, the Company borrowed $100,000 under its ABL Facility and used the proceeds to make a voluntary prepayment of a portion of the outstanding balance under the Term Loan Credit Agreement. At the time of the amendment, all outstanding term loans were replaced with new term loans for the same principal amount. The applicable margin for ABR borrowings was lowered from 2.25% to 2.00% and the applicable margin for LIBOR borrowings was lowered from 3.25% to 3.00%. Additionally, the LIBOR floor was lowered from 1.00% to 0.75%. The amended agreement provides for two pricing options: (i) an ABR for any day, a rate per annum equal to the greater of (a) the prime rate in effect on such day, (b) the federal funds effective rate in effect on such day plus 0.5%, (c) the adjusted LIBOR rate plus 1% and (d) 1.75% or (ii) the LIBOR rate, with a LIBOR floor of 0.75%, in each case plus an applicable margin (3.00% for LIBOR borrowings and 2.00% for ABR borrowings). The amendment provides that the term loans are subject to a 1.00% prepayment premium if voluntarily repaid within six months from the date of the amendment. Otherwise, the term loans may be voluntarily prepaid at any time without premium or penalty, other than customary breakage costs with respect to loans based on the LIBOR rate. As the Term Loan Credit Agreement is a loan syndication, the Company assessed whether the refinancing should be accounted for as an extinguishment on a creditor-by-creditor basis and wrote-off $394 of existing deferred financing costs, a $217 capitalized original issue discount and $122 of capitalized call premium. The write-offs were recorded in other expense in the Company’s consolidated statement of income and comprehensive income. The remaining deferred financing costs, original issue discount and capitalized call premium will continue to be amortized over the life of the Term Loan Credit Agreement, using the effective interest method. Additionally, in conjunction with the amendment, the Company incurred $757 of banker and legal fees, $725 of which was recorded in other expense. The rest of the costs are being amortized over the life of the debt. 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 consolidated statement of cash flows. Outstanding term loans are subject to mandatory prepayment, subject to certain exceptions, with (i) 100% of net proceeds above a threshold amount of certain asset sales/insurance proceeds, subject to reinvestment rights and certain other exceptions, (ii) 100% of the net cash proceeds of any incurrence of debt other than debt permitted under the Term Loan Credit Agreement, (iii) 50% of Excess Cash Flow, as defined in the agreement, if any (reduced to 25% if PCHI’s first lien leverage ratio (as defined in the agreement) is less than 3.50 to 1.00, but greater than 2.50 to 1.00, and 0% if PCHI’s first lien leverage ratio is less than 2.50 to 1.00). The term loans under the Term Loan Credit Agreement mature on August 19, 2022. The Company is required to repay installments on the loans in quarterly principal amounts of 0.25%, with the remaining amount payable on the maturity date. All obligations under the agreement are jointly and severally guaranteed by PC Intermediate, PCHI and each existing and future domestic subsidiary of PCHI. PCHI and each guarantor has secured its obligations, subject to certain exceptions and limitations, by a first-priority lien on substantially all of its assets (other than accounts receivable, inventory, cash and certain related assets), including a pledge of all of the capital stock held by PC Intermediate, PCHI and each guarantor, and a second-priority lien on its accounts receivable, inventory, cash and certain related assets. The Term Loan Credit Agreement contains certain customary affirmative covenants and events of default. Additionally, it contains negative covenants which, among other things and subject to certain exceptions, restrict the ability of PCHI to: • incur additional indebtedness; • pay dividends on capital stock or redeem, repurchase or retire capital stock; • make certain investments, loans, advances and acquisitions; • engage in transactions with affiliates; • create liens; and • transfer or sell certain assets. At December 31, 2016, the principal amount of term loans outstanding under the Term Loan Credit Agreement was $1,223,534. Such amount is recorded net of original issue discounts, capitalized call premiums and deferred financing costs on the Company’s consolidated balance sheet. At December 31, 2016, original issue discounts, capitalized call premiums and deferred financing costs totaled $18,038. At December 31, 2016, all outstanding borrowings were based on LIBOR and were at a weighted average interest rate of 4.21%. Senior Notes (b) The Senior Notes mature on August 15, 2023. Interest on the notes is payable semi-annually in arrears on February 15 and August 15 of each year. Interest accrues at 6.125%. The notes are guaranteed, jointly and severally, on a senior basis by each of PCHI’s existing and future wholly-owned domestic subsidiaries. The Senior Notes and the guarantees are general unsecured senior obligations and are effectively subordinated to all other secured debt to the extent of the assets securing such secured debt. The indenture governing the Senior Notes contains certain covenants limiting, among other things and subject to certain exceptions, PCHI’s ability to: • incur additional indebtedness or issue certain disqualified stock and preferred stock; • pay dividends or distributions, redeem or repurchase equity; • prepay subordinated debt or make certain investments; • engage in transactions with affiliates; • consolidate, merge or transfer all or substantially all of PCHI’s assets; • create liens; and • transfer or sell certain assets. The indenture governing the notes also contains certain customary affirmative covenants and events of default. On or after August 15, 2018, the Company may redeem the Senior Notes, in whole or in part, at the following (expressed as a percentage of the principal amount to be redeemed): Twelve-month period beginning on August 15, Percentage 2018 103.063 % 2019 101.531 % 2020 and thereafter 100.000 % In addition, the Company may redeem up to 40% of the aggregate principal amount outstanding on or before August 15, 2018 with the net cash proceeds from certain equity offerings at a redemption price of 106.125% of the principal amount. The Company may also redeem some or all of the Senior Notes before August 15, 2018 at a redemption price of 100% of the principal amount plus a premium that is defined in the indenture. Also, if the Company experiences certain types of change in control, as defined, the Company may be required to offer to repurchase the Senior Notes at 101% of their principal amount. In connection with issuing the Senior Notes, the Company incurred and capitalized third-party costs. Capitalized costs are being amortized over the life of the debt and are included in long-term obligations, excluding current portion, in the Company’s consolidated balance sheet. At December 31, 2016, $5,456 of costs were capitalized. Other Indebtedness (c) Additionally, the Company has entered into various capital leases for machinery and equipment. At December 31, 2016 and December 31, 2015 the balances of such leases were $2,912 and $2,414, respectively. Subject to certain exceptions, PCHI may not make certain payments, including the payment of dividends to its shareholders (“restricted payments”), unless certain conditions are met under the terms of the indenture governing the Senior Notes, the ABL Facility and the Term Loan Credit Agreement. As of December 31, 2016, the most restrictive of these conditions existed in the indenture for the Senior Notes and in the Term Loan Credit Agreement, which both limit restricted payments based on PCHI’s consolidated net income and leverage ratios. As of December 31, 2016, PCHI had $301,494 of capacity under the two debt instruments to make restricted payments. PCHI’s parent companies, PC Intermediate, PC Nextco and Party City Holdco, have no assets or operations other than their investments in their subsidiaries and income from those subsidiaries. At December 31, 2016, maturities of long-term obligations consisted of the following: Long-Term Debt Capital Lease Totals 2017 $ 12,266 $ 1,082 $ 13,348 2018 12,266 560 12,826 2019 12,266 441 12,707 2020 12,266 291 12,557 2021 12,266 282 12,548 Thereafter 1,512,204 256 1,512,460 Long-term obligations $ 1,573,534 $ 2,912 $ 1,576,446 |
Capital Stock
Capital Stock | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Capital Stock | Note 9 — Capital Stock At December 31, 2016, 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. During April 2015, the Company consummated an initial public offering of its common stock and sold 25,156,250 shares. The net proceeds of the offering were used to, among other things, fully redeem $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”). See Notes 10 and 14 for discussion of the charges recorded by the Company in conjunction with the initial public offering. |
Other (Income) Expense, net
Other (Income) Expense, net | 12 Months Ended |
Dec. 31, 2016 | |
Text Block [Abstract] | |
Other (Income) Expense, net | Note 10 — Other (Income) Expense, net Year Ended Year Ended Year Ended Other (income) expense, net consists of the following: Undistributed loss in unconsolidated joint ventures $ 314 $ 562 $ 1,556 Foreign currency (gains)/losses (7,417 ) 3,691 1,447 Debt refinancings (a) 1,458 94,607 4,396 Management agreement termination fee (b) 0 30,697 0 Corporate development expenses 3,290 1,786 700 Business interruption proceeds 0 0 (4,514 ) Other, net 345 (353 ) 2,306 Other (income) expense, net $ (2,010 ) $ 130,990 $ 5,891 (a) In October 2016, the Company amended the Term Loan Credit Agreement and recorded charges in other expense. See Note 8 for further discussion. Additionally, in August 2015, the Company refinanced its debt and recorded $79,010 of charges in other expense related to call premiums, third-party costs and the write-off of existing deferred financing costs, original issue discounts and capitalized call premiums. Further, during April 2015, the Company consummated an initial public offering of its common stock and the net proceeds of the offering were used to, among other things, fully redeem the Nextco Notes. The Company recorded $15,597 of charges related to the early redemption of such notes and the write-off of existing deferred financing costs and original issue discounts. (b) In conjunction with the initial public offering (“IPO”), the Company paid a management agreement termination fee to affiliates of THL and Advent. See Note 14 for further discussion. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2016 | |
Postemployment Benefits [Abstract] | |
Employee Benefit Plans | Note 11 — Employee Benefit Plans Certain subsidiaries of the Company maintain defined contribution plans for eligible employees. The plans require the subsidiaries to match from approximately 11% to 100% of voluntary employee contributions to the plans, not to exceed a maximum amount of the employee’s annual salary, ranging from 5% to 6%. Expense for the plans for the years ended December 31, 2016, December 31, 2015, and December 31, 2014 totaled $5,792, $5,196, and $6,179, respectively. |
Equity Incentive Plans
Equity Incentive Plans | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Equity Incentive Plans | Note 12 — Equity Incentive Plans Party City Holdco has adopted the Amended and Restated 2012 Omnibus Equity Incentive Plan (the “2012 Plan”) under which it can grant incentive awards in the form of stock appreciation rights, restricted stock and common stock options to certain directors, officers, employees and consultants of Party City Holdco and its affiliates. A committee of Party City Holdco’s Board of Directors, or the Board itself in the absence of a committee, is authorized to make grants and various other decisions under the 2012 Plan. The maximum number of shares reserved under the 2012 Plan is 15,316,000 shares. Time-based options Party City Holdco grants time-based options to key eligible employees and outside directors. In conjunction with the options, the Company recorded compensation expense of $3,853, $3,042, and $1,583 during the years ended December 31, 2016, December 31, 2015, and December 31, 2014, respectively. The fair value of time-based options granted during the year ended December 31, 2016 was estimated on the grant date using a Black-Scholes option valuation model based on the assumptions in the following table: Expected dividend rate 0% Risk-free interest rate 1.16% to 1.53% Volatility 25.87% to 26.38% Expected option term 5.5 years – 6.5 years The fair value of time-based options granted during the year ended December 31, 2015 was estimated on the grant date using a Black-Scholes option valuation model based on the assumptions in the following table: Expected dividend rate 0% Risk-free interest rate 1.57% to 1.93% Volatility 30.00% Expected option term 5.5 years – 6.5 years The fair value of time-based options granted during the year ended December 31, 2013 was estimated on the grant date using a Black-Scholes option valuation model based on the assumptions in the following table: Expected dividend rate 0% Risk-free interest rate 1.03% to 2.07% Volatility 35.00% Expected option term 6.2 years – 6.5 years No time-based options were granted during the year ended December 31, 2014. As Party City Holdco’s stock only recently started trading publicly, the Company determined volatility based on the average historical volatility of guideline companies. Additionally, as there is not sufficient historical exercise data to provide a reasonable basis for determining the expected term, the Company estimated the expected term using the “simplified” method. The Company based its estimated forfeiture rate of 13.4% on historical forfeitures for time-based options that were granted by PCHI between 2004 and 2012 as the number of options given to each of the various levels of management is principally consistent with historical grants and forfeitures are expected to be materially consistent with past experience. Most of the time-based options that were granted during 2013 vested 20% on July 27, 2013 and vest 20% each July 27 th Performance-based options During 2013, Party City Holdco granted performance-based stock options to key employees and independent directors. For performance-based options, vesting is contingent upon THL achieving specified investment returns when it sells its ownership stake in Party City Holdco. Since the sale of THL’s shares cannot be assessed as probable before it occurs, no compensation expense has been recorded for the performance-based options that have been granted. As of December 31, 2016, 3,852,801 performance-based options were outstanding. Based on a Monte Carlo simulation and the following assumptions, the options have an average grant date fair value of $3.09 per option: Expected dividend rate 0% Risk-free interest rate 1.86% Volatility 52.00% Expected option term 5 years As Party City Holdco’s stock was not publicly traded when the performance-based options were granted, the Company determined volatility based on the average historical volatility of guideline companies. The following table summarizes the changes in outstanding stock options for the years ended December 31, 2014, December 31, 2015 and December 31, 2016. Options Average Average Fair Value of Grant Date Aggregate Weighted Average Remaining Outstanding at December 31, 2013 7,131,600 Granted 0 Exercised (202,720 ) $ 5.33 Forfeited (242,480 ) 5.33 Outstanding at December 31, 2014 6,686,400 5.33 $ 40,282 8.3 Granted 2,013,764 17.97 $ 6.04 Exercised (5,600 ) 5.33 Forfeited (176,919 ) 7.36 Outstanding at December 31, 2015 8,517,645 8.28 39,453 7.8 Granted 484,950 15.78 4.68 Exercised (257,520 ) 5.33 Forfeited (283,249 ) 10.05 Outstanding at December 31, 2016 8,461,826 $ 8.74 $ 46,214 6.9 Exercisable at December 31, 2016 2,053,474 $ 7.71 $ 13,337 6.6 Expected to vest at December 31, 2016 (excluding performance-based options) 2,555,551 $ 14.71 $ (1,294 ) 8.1 The intrinsic value of options exercised was $2,726, $60, and $561 for the years ended December 31, 2016, December 31, 2015, and December 31, 2014, respectively. The fair value of options vested was $4,110, $1,726, and $1,769, during the years ended December 31, 2016, December 31, 2015, and December 31, 2014, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 13 — Income Taxes A summary of domestic and foreign income before income taxes and including noncontrolling interest follows: Year Ended 2016 Year Ended 2015 Year Ended 2014 Domestic $ 152,800 $ 7,180 $ 67,000 Foreign 33,914 10,688 14,334 Total $ 186,714 $ 17,868 $ 81,334 The income tax expense (benefit) consisted of the following: Year Ended 2016 Year Ended 2015 Year Ended 2014 Current: Federal $ 50,851 $ 8,137 $ 28,735 State 8,121 2,652 5,954 Foreign 6,864 2,798 4,280 Total current expense 65,836 13,587 38,969 Deferred: Federal 3,290 (6,710 ) (11,522 ) State (906 ) (1,086 ) (2,838 ) Foreign 1,017 1,618 602 Total deferred expense (benefit) 3,401 (6,178 ) (13,758 ) Income tax expense $ 69,237 $ 7,409 $ 25,211 Deferred income taxes reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Deferred income tax assets and liabilities consisted of the following: December 31, 2016 2015 Deferred income tax assets: Inventory valuation $ 10,138 $ 9,794 Allowance for doubtful accounts 893 678 Accrued liabilities 13,638 10,891 Federal tax loss carryforwards 2,715 3,829 State tax loss carryforwards 1,070 1,161 Foreign tax loss carryforwards 13,992 14,778 Foreign tax credit carryforwards 1,418 1,418 Deferred rent 11,816 10,955 Other 509 294 Deferred income tax assets before valuation allowances 56,189 53,798 Less: valuation allowances (17,331 ) (15,817 ) Deferred income tax assets, net $ 38,858 $ 37,981 Deferred income tax liabilities: Property, plant and equipment $ 24,055 $ 21,810 Intangible assets 218,046 218,636 Amortization of goodwill and other assets 61,163 61,786 Foreign earnings expected to be repatriated 10,954 7,178 Other 2,655 4,072 Deferred income tax liabilities $ 316,873 $ 313,482 In the Company’s December 31, 2016 consolidated balance sheet, $804 was included in other assets, net and $278,819 was included in deferred income tax liabilities. At December 31, 2015, $1,166 was included in other assets, net and $276,667 was included in deferred income tax liabilities. Management assesses the available positive and negative evidence to estimate if sufficient taxable income will be generated to realize existing deferred tax assets. On the basis of this evaluation, a valuation allowance was recorded to reduce the total deferred tax assets to an amount that will, more-likely-than-not, be realized in the future. The valuation allowance and the net change during the year, relates primarily to foreign net operating loss carryforwards. As of December 31, 2016, the Company had foreign tax-effected net operating loss carryforwards in Germany of $8,233, the U.K. of $4,609, and Australia of $824, all of which have an unlimited carryforward; as well as $326 from other foreign countries, which expire at different dates. In addition, the U.S. Federal net operating loss carryforwards begin to expire in 2019, the U.S. state net operating loss carryforwards, expire beginning in 2018, and the foreign tax credit carryforwards, $1,418, expire beginning in 2020. The difference between the Company’s effective income tax rate and the U.S. statutory income tax rate is as follows: Year Ended Year Ended Year Ended Tax provision at U.S. statutory income tax rate 35.0 % 35.0 % 35.0 % State income tax, net of federal income tax 2.5 5.7 2.5 Domestic production activities deduction (1.0 ) (5.1 ) (1.9 ) Deferred tax adjustments 0.0 0.0 (0.2 ) Contingent consideration adjustment (0.1 ) (6.0 ) 0.0 Transaction costs 0.0 0.0 (6.9 ) Work Opportunity Tax Credit (0.3 ) (3.2 ) (0.4 ) Valuation allowances 0.5 21.7 0.5 Foreign earnings 2.3 9.1 4.9 U.S. — foreign rate differential (2.4 ) (13.7 ) (3.4 ) Other 0.6 (2.0 ) 0.9 Effective income tax rate 37.1 % 41.5 % 31.0 % Transaction costs: Foreign earnings Other differences between the effective income tax rate and the federal statutory income tax rate are composed primarily of reserves for unrecognized tax benefits, and non-deductible meals and entertainment expenses. At December 31, 2016, the cumulative undistributed earnings of any foreign subsidiaries whose earnings are considered permanently reinvested were approximately $26,534. No provision has been made for U.S. or additional foreign taxes on the undistributed earnings of these subsidiaries as such earnings have been reinvested indefinitely in the subsidiaries’ operations. It is not practical to calculate the potential deferred income tax impact that may arise from the distribution of these earnings, as there is a significant amount of uncertainty with respect to determining the amount of foreign tax credits, additional local withholding tax and other indirect tax consequences at the time of such event. The following table summarizes the activity related to the Company’s gross unrecognized tax benefits: Year Ended Year Ended Year Ended 2014 Balance as of beginning of period $ 765 $ 798 $ 285 Increases related to current period tax positions 444 130 763 Increases related to prior period tax positions 339 0 0 Decrease related to settlements (635 ) (92 ) (193 ) Decreases related to lapsing of statutes of limitations — (71 ) (57 ) Balance as of end of period $ 913 $ 765 $ 798 The Company’s total unrecognized tax benefits that, if recognized, would impact the Company’s effective tax rate were $913 and $765 at December 31, 2016 and 2015, respectively. As of December 31, 2016, we do not believe that there are any positions for which it is reasonably possible that the total amount of unrecognized tax benefits will significantly increase or decrease within the next 12 months. The Company recognizes accrued interest and penalties related to unrecognized tax benefits in income tax expense. The Company has accrued $28 and $15 for the potential payment of interest and penalties at December 31, 2016 and 2015, respectively. In 2016, the IRS concluded an examination of the year ended December 31, 2014 with no material changes. For U.S. state income tax purposes, tax years 2012-2016 generally remain open, whereas for non-U.S. income tax purposes tax years 2011-2016 generally remain open. |
Commitments, Contingencies and
Commitments, Contingencies and Related Party Transactions | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Commitments, Contingencies and Related Party Transactions | Note 14 — Commitments, Contingencies and Related Party Transactions Lease Agreements The Company has non-cancelable operating leases for its numerous retail store sites, as well as for its corporate offices, certain distribution and manufacturing facilities, showrooms, and warehouse equipment that expire on various dates, principally through 2026. These leases generally contain renewal options and require the Company to pay real estate taxes, utilities and related insurance. At December 31, 2016, future minimum lease payments under all operating leases consisted of the following: Future Minimum 2017 $ 171,776 2018 150,509 2019 125,993 2020 113,371 2021 100,036 Thereafter 301,024 $ 962,709 The future minimum lease payments included in the above table also do not include contingent rent based upon sales volumes or other variable costs, such as maintenance, insurance and taxes. Rent expense for the years ended December 31, 2016, December 31, 2015, and December 31, 2014 was $235,790, $225,543, and $216,572, respectively, and included immaterial amounts of rent expense related to contingent rent. Litigation On November 18, 2015, a putative class action complaint was filed in the U.S. District Court for the Southern District of New York, naming Party City Holdco Inc. and certain executives as defendants. An Amended Complaint was filed on April 25, 2016, which named additional defendants. The Amended Complaint alleges violations of Sections 11, 12(a)(2), and 15 of the Securities Act of 1933 in connection with public filings related to the Company’s April 2015 IPO. The plaintiff seeks to represent a class of shareholders who purchased stock in the initial public offering or who can trace their shares to that offering, and the complaint seeks unspecified damages and costs. On February 1, 2017, the Court issued an opinion dismissing the complaint, and entered Judgment in favor of the defendants. On April 5, 2016, a derivative complaint was filed in the Supreme Court for the State of New York, naming certain directors and executives as defendants, and naming the Company as a nominal defendant. The complaint seeks unspecified damages and costs, and corporate governance reforms, for alleged injury to the Company in connection with public filings related to the Company’s April 2015 IPO, compensation paid to executives, and the termination of the management agreement disclosed in the initial public offering-related public filings. On June 15, 2016, by agreement of the parties, the court entered a temporary stay of the proceedings pending (among other things) resolution of the motion to dismiss in connection with the November 18, 2015 filed class action. The Company intends to vigorously defend itself against this action. The Company is unable, at this time, to determine whether the outcome of the litigation would have a material impact on its results of operations, financial condition or cash flows. Additionally, the Company is a party to certain claims and litigation in the ordinary course of business. The Company does not believe that any of these proceedings will result, individually or in the aggregate, in a material adverse effect upon its financial condition or future results of operations. Product Royalty Agreements The Company has entered into product royalty agreements, with various licensors of copyrighted and trademarked characters and designs, which are used on the Company’s products, which require royalty payments based on sales of the Company’s products, and, in some cases, include annual minimum royalties. At December 31, 2016, the Company’s commitment to pay future minimum product royalties was as follows: Future Minimum 2017 $ 29,833 2018 16,199 2019 6,106 2020 5,550 2021 0 Thereafter 0 $ 57,688 Product royalty expense for the years ended December 31, 2016, December 31, 2015, and December 31, 2014 was $43,914, $45,710, and $42,679, respectively. Related Party Transactions During 2012, Party City Holdco and PCHI entered into a management agreement with THL and Advent under which THL and Advent provided advice on, among other things, financing, operations, acquisitions and dispositions. Under the agreement, THL and Advent were paid, in aggregate, an annual management fee in the amount of the greater of $3,000 or 1.0% of Adjusted EBITDA, as defined in PCHI’s debt agreements. THL and Advent received annual management fees in the amounts of $692 and $238, respectively, during the year ended December 31, 2015, and $2,498 and $858, respectively, during the year ended December 31, 2014. Such amounts were recorded in general and administrative expenses in the Company’s consolidated statement of income and comprehensive income (loss). In the case of an initial public offering or a change in control, as defined in Party City Holdco’s stockholders’ agreement, at the time of such event the Company was required to pay THL and Advent the net present value of the remaining annual management fees that were payable over the agreement’s ten year term. Therefore, during April 2015, in conjunction with the Company’s initial public offering, the Company paid a management agreement termination fee of $30,697. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | Note 15 — Segment Information Industry Segments The Company has two identifiable business segments. The Wholesale segment designs, manufactures, contracts for manufacture and distributes party goods, including paper and plastic tableware, metallic and latex balloons, Halloween and other costumes, accessories, novelties and stationery throughout the world. The Retail segment operates specialty retail party supply stores in the United States and Canada, principally under the names Party City and Halloween City, and it operates e-commerce 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 years ended December 31, 2016, December 31, 2015, and December 31, 2014 are as follows: Wholesale Retail Consolidated Year Ended December 31, 2016 Revenues: Net sales $ 1,252,218 $ 1,641,068 $ 2,893,286 Royalties and franchise fees 0 17,005 17,005 Total revenues 1,252,218 1,658,073 2,910,291 Eliminations (626,900 ) 0 (626,900 ) Net revenues $ 625,318 $ 1,658,073 $ 2,283,391 Income from operations $ 91,920 $ 182,164 $ 274,084 Interest expense, net 89,380 Other income, net (2,010 ) Income before income taxes $ 186,714 Depreciation and amortization $ 29,695 $ 53,935 $ 83,630 Capital expenditures $ 26,854 $ 55,094 $ 81,948 Total assets $ 1,004,599 $ 2,389,379 $ 3,393,978 Wholesale Retail Consolidated Year Ended December 31, 2015 Revenues: Net sales $ 1,226,989 $ 1,621,524 $ 2,848,513 Royalties and franchise fees 0 19,411 19,411 Total revenues 1,226,989 1,640,935 2,867,924 Eliminations (573,391 ) 0 (573,391 ) Net revenues $ 653,598 $ 1,640,935 $ 2,294,533 Income from operations $ 85,728 $ 186,491 $ 272,219 Interest expense, net 123,361 Other expense, net 130,990 Income before income taxes $ 17,868 Depreciation and amortization $ 29,352 $ 51,163 $ 80,515 Capital expenditures $ 18,849 $ 59,976 $ 78,825 Total assets $ 864,698 $ 2,427,705 $ 3,292,403 Wholesale Retail Consolidated Year Ended December 31, 2014 Revenues: Net sales $ 1,213,024 $ 1,605,228 $ 2,818,252 Royalties and franchise fees 0 19,668 19,668 Total revenues 1,213,024 1,624,896 2,837,920 Eliminations (566,663 ) 0 (566,663 ) Net revenues $ 646,361 $ 1,624,896 $ 2,271,257 Income from operations $ 74,177 $ 168,965 $ 243,142 Interest expense, net 155,917 Other expense, net 5,891 Income before income taxes $ 81,334 Depreciation and amortization $ 32,446 $ 50,444 $ 82,890 Capital expenditures $ 27,651 $ 50,590 $ 78,241 Geographic Segments Export sales of metallic balloons of $23,631, $22,803, and $22,023 during the years ended December 31, 2016, December 31, 2015, and December 31, 2014, respectively, are included in domestic sales to unaffiliated customers below. Intercompany sales between geographic areas primarily consist of sales of finished goods and are generally made at cost plus a share of operating profit. The Company’s geographic area data follows: Domestic Foreign Eliminations Consolidated Year Ended December 31, 2016 Revenues: Net sales to unaffiliated customers $ 1,917,158 $ 349,228 $ 0 $ 2,266,386 Net sales between geographic areas 51,916 80,776 (132,692 ) 0 Net sales 1,969,074 430,004 (132,692 ) 2,266,386 Royalties and franchise fees 17,005 0 0 17,005 Total revenues $ 1,986,079 $ 430,004 $ (132,692 ) $ 2,283,391 Income from operations $ 257,774 $ 16,310 $ 0 $ 274,084 Interest expense, net 89,380 Other income, net (2,010 ) Income before income taxes $ 186,714 Depreciation and amortization $ 77,176 $ 6,454 $ 83,630 Total long-lived assets (excluding goodwill, trade names and other intangible assets, net) $ 269,047 $ 28,359 $ 297,406 Total assets $ 3,147,003 $ 246,975 $ 0 $ 3,393,978 Domestic Foreign Eliminations Consolidated Year Ended December 31, 2015 Revenues: Net sales to unaffiliated customers $ 1,937,793 $ 337,329 $ 0 $ 2,275,122 Net sales between geographic areas 47,752 74,974 (122,726 ) 0 Net sales 1,985,545 412,303 (122,726 ) 2,275,122 Royalties and franchise fees 19,411 0 0 19,411 Total revenues $ 2,004,956 $ 412,303 $ (122,726 ) $ 2,294,533 Income from operations $ 267,209 $ 5,010 $ 0 $ 272,219 Interest expense, net 123,361 Other expense, net 130,990 Income before income taxes $ 17,868 Depreciation and amortization $ 74,849 $ 5,666 $ 80,515 Total long-lived assets (excluding goodwill, trade names and other intangible assets, net) $ 251,328 $ 30,776 $ 282,104 Total assets $ 3,093,949 $ 198,454 $ 0 $ 3,292,403 Domestic Foreign Eliminations Consolidated Year Ended December 31, 2014 Revenues: Net sales to unaffiliated customers $ 1,930,270 $ 321,319 $ 0 $ 2,251,589 Net sales between geographic areas 44,903 75,462 (120,365 ) 0 Net sales 1,975,173 396,781 (120,365 ) 2,251,589 Royalties and franchise fees 19,668 0 0 19,668 Total revenues $ 1,994,841 $ 396,781 $ (120,365 ) $ 2,271,257 Income from operations $ 236,495 $ 6,647 $ 0 $ 243,142 Interest expense, net 155,917 Other expense, net 5,891 Income before income taxes $ 81,334 Depreciation and amortization $ 77,445 $ 5,445 $ 82,890 |
Quarterly Results
Quarterly Results | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results | Note 16 — Quarterly Results (Unaudited) Despite a concentration of holidays in the fourth quarter of the year, as a result of the Company’s expansive product lines and customer base and increased promotional activities, the impact of seasonality on the quarterly results of the Company’s wholesale operations has been limited. However, due to Halloween and Christmas, the inventory balances of the Company’s wholesale operations are slightly higher during the third quarter than during the remainder of the year. Additionally, the promotional activities of the Company’s wholesale business, including special dating terms, particularly with respect to Halloween products sold to retailers and other distributors, result in slightly higher accounts receivable balances during the third quarter. The Company’s retail operations are subject to significant seasonal variations. Historically, the Company’s retail operations have realized a significant portion of their revenues, cash flow and net income in the fourth quarter of the year, principally due to Halloween sales in October and, to a lesser extent, year-end holiday sales. The following table sets forth our historical revenues, gross profit, income (loss) from operations, net income (loss), net income (loss) attributable to Party City Holdco Inc., net income (loss) per common share – Basic, and net income (loss) per common share—Diluted for each of the following periods: For the Three Months Ended, 2016: March 31, June 30, September 30, December 31, Revenues: Net sales $ 454,286 $ 515,426 $ 553,382 $ 743,292 Royalties and franchise fees 3,454 3,987 3,568 5,996 Gross profit 166,519 207,561 196,720 345,199 Income from operations 19,556 58,480 36,918 159,130 Net (loss) income (394 ) 22,515 10,180 85,176 Net (loss) income per common share — Basic $ (0.00 ) $ 0.19 $ 0.09 $ 0.71 Net (loss) income per common share — Diluted $ (0.00 ) $ 0.19 $ 0.08 $ 0.71 For the Three Months Ended, 2015: March 31, June 30, September 30, December 31, Revenues: Net sales $ 458,195 $ 491,206 $ 551,380 $ 774,341 Royalties and franchise fees 3,910 4,314 4,027 7,160 Gross profit 163,921 188,343 189,850 362,124 Income from operations 24,004 46,067 31,480 170,668 Net (loss) income (8,525 ) (23,050 )(a) (44,489 )(b) 86,523 Net (loss) income per common share — Basic $ (0.09 ) $ (0.20 )(a) $ (0.37 )(b) $ 0.73 Net (loss) income per common share — Diluted $ (0.09 ) $ (0.20 )(a) $ (0.37 )(b) $ 0.72 (a) During the three months ended June 30, 2015, the Company consummated an initial public offering of its common stock. The net proceeds of the offering were used to, among other things, fully redeem the Nextco Notes and pay a management agreement termination fee to affiliates of THL and Advent (see Note 10). (b) During the three months ended September 30, 2015, the Company refinanced its debt. See Note 10 for further discussion. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 17 — Fair Value Measurements The provisions of ASC Topic 820, “Fair Value Measurement”, define fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. ASC Topic 820 established a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: • Level 1 — Quoted prices in active markets for identical assets or liabilities. • Level 2 — Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. • Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. The following table shows assets and liabilities as of December 31, 2016 that are measured at fair value on a recurring basis: Level 1 Level 2 Level 3 Total as of Derivative assets $ 0 $ 697 $ 0 $ 697 Derivative liabilities 0 215 0 215 The following table shows assets and liabilities as of December 31, 2015 that are measured at fair value on a recurring basis: Level 1 Level 2 Level 3 Total as of Derivative assets $ 0 $ 773 $ 0 $ 773 Derivative liabilities 0 391 0 391 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 December 31, 2016 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, 2016 are as follows: Carrying Amount Fair Value Term Loan Credit Agreement $ 1,205,496 $ 1,232,710 Senior Notes 344,544 366,625 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, 2016 based on the discounted future cash flows of each instrument at rates currently offered for similar debt instruments of comparable maturity. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Note 18 — Derivative Financial Instruments The Company is directly and indirectly affected by changes in certain market conditions. These changes in market conditions may adversely impact the Company’s financial performance and are referred to as market risks. The Company, when deemed appropriate, uses derivatives as a risk management tool to mitigate the potential impact of certain market risks. The primary market risks managed through the use of derivative financial instruments are interest rate risk and foreign currency exchange rate risk. Interest Rate Risk Management As part of the Company’s risk management strategy, the Company periodically uses interest rate swap agreements to hedge the variability of cash flows on floating rate debt obligations. Accordingly, interest rate swap agreements are reflected in the consolidated balance sheets at fair value and the related gains and losses on these contracts are deferred in equity and recognized in interest expense over the same period in which the related interest payments being hedged are recognized in income. The fair value of an interest rate swap agreement is the estimated amount that the counterparty would receive or pay to terminate the swap agreement at the reporting date, taking into account current interest rates and the current creditworthiness of the swap counterparty. The Company did not utilize interest rate swap agreements during the years ended December 31, 2016, December 31, 2015 or December 31, 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 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 December 31, 2016 and 2015, the Company had foreign currency exchange contracts that qualified for hedge accounting. No components of these agreements were excluded in the measurement of hedge effectiveness. As these hedges are 100% effective, there is no current impact on earnings due to hedge ineffectiveness. The Company anticipates that substantially all unrealized gains and losses in accumulated other comprehensive loss related to these foreign currency exchange contracts will be reclassified into earnings by June 2018. The following table displays the fair values of the Company’s derivatives at December 31, 2016 and December 31, 2015: Derivative Assets Derivative Liabilities Balance Fair Balance Fair Balance Fair Balance Fair Derivative Instrument December 31, 2016 December 31, 2015 December 31, 2016 December 31, 2015 Foreign Exchange Contracts (a ) PP $ 697 (a ) PP $ 773 (b ) AE $ 215 (b ) AE $ 391 (a) PP = Prepaid expenses and other current assets (b) AE = Accrued expenses The following table displays the notional amounts of the Company’s derivatives at December 31, 2016 and December 31, 2015: Derivative Instrument December 31, December 31, Foreign Exchange Contracts $ 22,502 $ 23,028 |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive (Loss) Income | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive (Loss) Income | Note 19 — Changes in Accumulated Other Comprehensive (Loss) Income The changes in accumulated other comprehensive (loss) income attributable to Party City Holdco Inc. consisted of the following: Year Ended December 31, 2016 Foreign Impact of Total, Net Balance at December 31, 2015 $ (33,401 ) $ 611 $ (32,790 ) Other comprehensive (loss) income before reclassifications, net of income tax (19,770 ) 1,080 (18,690 ) Amounts reclassified from accumulated other comprehensive loss to the consolidated statement of income and comprehensive income, net of income tax 0 (759 ) (759 ) Net current-period other comprehensive (loss) income (19,770 ) 321 (19,449 ) Balance at December 31, 2016 $ (53,171 ) $ 932 $ (52,239 ) Year Ended December 31, 2015 Foreign Impact of Total, Net Balance at December 31, 2014 $ (12,969 ) $ 234 $ (12,735 ) Other comprehensive (loss) income before reclassifications, net of income tax (20,432 ) 675 (19,757 ) Amounts reclassified from accumulated other comprehensive loss to the consolidated statement of income and comprehensive loss, net of income tax 0 (298 ) (298 ) Net current-period other comprehensive (loss) income (20,432 ) 377 (20,055 ) Balance at December 31, 2015 $ (33,401 ) $ 611 $ (32,790 ) Year Ended December 31, 2014 Foreign Impact of Total, Net Balance at December 31, 2013 $ 5,738 $ (330 ) $ 5,408 Other comprehensive (loss) income before reclassifications, net of income tax (18,707 ) 336 (18,371 ) Amounts reclassified from accumulated other comprehensive income (loss) to the consolidated statement of income and comprehensive income, net of income tax 0 228 228 Net current-period other comprehensive (loss) income (18,707 ) 564 (18,143 ) Balance at December 31, 2014 $ (12,969 ) $ 234 $ (12,735 ) |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 20 — Subsequent Events During January 2017, the Company acquired 18 franchise stores, which are located mostly in Louisiana and Alabama, for total consideration of approximately $15,000. During March 2017, the Company acquired 85% of the common stock of Granmark, S.A. de C.V., a Mexican manufacturer and wholesaler of party goods, for total consideration of approximately $22,000. Based on the terms of the acquisition agreement, the Company is required to acquire the remaining 15% interest over a three to five year period. During March 2017, the Company acquired an additional 18 franchise stores, which are located in North Carolina and South Carolina, for total consideration of approximately $31,000. |
Schedule I - Condensed Financia
Schedule I - Condensed Financial Information of Registrant | 12 Months Ended |
Dec. 31, 2016 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Schedule I - Condensed Financial Information of Registrant | SCHEDULE I—CONDENSED FINANCIAL INFORMATION OF REGISTRANT PARTY CITY HOLDCO INC. (Parent company only) CONDENSED BALANCE SHEETS (Dollars in thousands) December 31, 2016 December 31, 2015 ASSETS Other assets (principally investment in and amounts due from wholly-owned subsidiaries) .. $ 1,016,789 $ 913,017 Total assets $ 1,016,789 $ 913,017 LIABILITIES AND STOCKHOLDERS’ EQUITY Total liabilities $ 0 $ 0 Commitments and contingencies Stockholders’ equity: Common stock ($0.01 par value; 119,515,894 and 119,258,374 shares issued and outstanding at December 31, 2016 and December 31, 2015, respectively) 1,195 1,193 Additional paid-in capital 910,167 904,425 Retained earnings 157,666 40,189 Accumulated other comprehensive loss (52,239 ) (32,790 ) Total stockholders’ equity 1,016,789 913,017 Total liabilities and stockholders’ equity $ 1,016,789 $ 913,017 See accompanying notes to these condensed financial statements. PARTY CITY HOLDCO INC. (Parent company only) CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (LOSS) (Dollars in thousands) Year Ended Year Ended Year Ended Income tax benefit $ 0 $ 0 $ 5,918 Equity in net income of subsidiaries 117,477 10,459 50,205 Net income $ 117,477 $ 10,459 $ 56,123 Other comprehensive loss (19,449 ) (20,055 ) (18,143 ) Comprehensive income (loss) $ 98,028 $ (9,596 ) $ 37,980 See accompanying notes to these condensed financial statements. PARTY CITY HOLDCO INC. (Parent company only) CONDENSED STATEMENTS OF CASH FLOWS (Dollars in thousands) Year Ended Year Ended Year Ended Cash flows used in operating activities: Net income $ 117,477 $ 10,459 $ 56,123 Adjustments to reconcile net income to net cash used in operating activities: Equity in net income of subsidiaries (117,477 ) (10,459 ) (50,205 ) Change in due to/from affiliates and income taxes payable (1,373 ) (397,189 ) (6,998 ) Net cash (used in) operating activities (1,373 ) (397,189 ) (1,080 ) Cash flows provided by financing activities: Issuance of common stock 0 397,159 0 Exercise of stock options 1,373 30 1,080 Net cash provided by financing activities 1,373 397,189 1,080 Net change in cash and cash equivalents 0 0 0 Cash and cash equivalents at beginning of period 0 0 0 Cash and cash equivalents at end of period $ 0 $ 0 $ 0 |
Basis of presentation and descr
Basis of presentation and description of registrant | 12 Months Ended |
Dec. 31, 2016 | |
Party City Holdco Inc. [Member] | |
Basis of presentation and description of registrant | Note 1 — Basis of presentation and description of registrant Party City Holdco Inc. (“Party City Holdco”) Schedule I Condensed Financial Information provides all parent company information that is required to be presented in accordance with the SEC rules and regulations for financial statement schedules. The consolidated financial statements of Party City Holdco are included elsewhere. The parent-company financial statements should be read in conjunction with the consolidated financial statements and the notes thereto. Party City Holdco conducts no separate operations and acts only as a holding company. Its share of the net income of its unconsolidated subsidiaries is included in its statements of income using the equity method. Since all material stock requirements, dividends and guarantees of the registrant have been disclosed in the consolidated financial statements, the information is not required to be repeated in this schedule. |
Dividends from subsidiaries
Dividends from subsidiaries | 12 Months Ended |
Dec. 31, 2016 | |
Party City Holdco Inc. [Member] | |
Dividends from subsidiaries | Note 2 — Dividends from subsidiaries No cash dividends were paid to Party City Holdco by its subsidiaries during the years included in these financial statements. |
Schedule II- Valuation and Qual
Schedule II- Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2016 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule II- Valuation and Qualifying Accounts | SCHEDULE II PARTY CITY HOLDCO INC. VALUATION AND QUALIFYING ACCOUNTS The Years Ended December 31, 2016, December 31, 2015, and December 31, 2014 (Dollars in thousands) Beginning Write-Offs Additions Ending Allowance for Doubtful Accounts: For the year ended December 31, 2014 $ 1,362 $ 256 $ 1,783 $ 2,889 For the year ended December 31, 2015 2,889 769 223 2,343 For the year ended December 31, 2016 2,343 441 781 2,683 Sales Returns and Allowances: For the year ended December 31, 2014 326 83,750 83,950 526 For the year ended December 31, 2015 526 78,219 78,348 655 For the year ended December 31, 2016 655 80,317 80,128 466 |
Summary of Significant Accoun32
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Consolidated Financial Statements | Consolidated Financial Statements The consolidated financial statements of the Company include the accounts of all majority-owned subsidiaries and controlled entities. All intercompany balances and transactions have been eliminated. The Company’s retail operations define a fiscal year (“Fiscal Year”) as the 52-week 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. 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. The Company’s consolidated financial statements for the year ended December 31, 2014 include the results of its retail operations for the 53-week Fiscal Year ended January 3, 2015. |
Use of Estimates | Use of Estimates The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Management periodically evaluates estimates used in the preparation of the consolidated financial statements for continued reasonableness. Appropriate adjustments, if any, to the estimates used are made prospectively based on such periodic evaluations. |
Cash Equivalents | Cash Equivalents Highly liquid investments with a maturity of three months or less when purchased are considered to be cash equivalents. All credit card transactions that process in less than seven days are classified as cash and cash equivalents. |
Inventories | Inventories Inventories are valued at the lower of cost or market. The Company principally determines the cost of inventory using the weighted average method. The Company estimates retail inventory shortage 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 The Company maintains allowances for doubtful accounts for estimated losses resulting from the inability of the Company’s customers to make required payments. A considerable amount of judgment is required in assessing the ultimate realization of these receivables, including consideration of the Company’s history of receivable write-offs, the level of past due accounts and the economic status of the Company’s customers. In an effort to identify adverse trends relative to customer economic status, the Company assesses the financial health of the markets it operates in and performs periodic credit evaluations of its customers and ongoing reviews of account balances and aging of receivables. Amounts are considered past due when payment has not been received within the time frame of the credit terms extended. Write-offs are charged directly against the allowance for doubtful accounts and occur only after all collection efforts have been exhausted. At December 31, 2016 and December 31, 2015, the allowance for doubtful accounts was $2,683 and $2,343, respectively. |
Long-Lived and Intangible Assets (including Goodwill) | Long-Lived and Intangible Assets (including Goodwill) Property, plant and equipment are stated at cost. Equipment under capital leases are stated at the present value of the minimum lease payments at the inception of the lease. Depreciation is calculated principally on the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized on a straight-line basis over the shorter of the lease term or the estimated useful life of the asset. The Company reviews the recoverability of its finite long-lived assets, including finite-lived intangible assets, whenever facts and circumstances indicate that the carrying amount may not be fully recoverable. For purposes of recognizing and measuring impairment, the Company evaluates long-lived assets other than goodwill based upon the lowest level of independent cash flows ascertainable to evaluate impairment. If the sum of the undiscounted future cash flows expected over the remaining asset life is less than the carrying value of the assets, the Company may recognize an impairment loss. The impairment related to long-lived assets is measured as the amount by which the carrying amount of the asset exceeds the fair value of the asset. In the evaluation of the fair value and future benefits of finite long-lived assets attached to retail stores, the Company performs its cash flow analysis on a store-by-store basis. Various factors including future sales growth and profit margins are included in this analysis. Goodwill represents the excess of the purchase price of acquired companies over the estimated fair value of the net assets acquired. Goodwill and other intangibles with indefinite lives are not amortized, but are reviewed for impairment annually or more frequently if certain indicators arise. The Company evaluates the goodwill associated with its acquisitions, and other intangibles with indefinite lives, for impairment as of the first day of its fourth quarter based on current and projected performance. For purposes of testing goodwill for impairment, reporting units are determined by identifying individual components within the Company’s organization which constitute a business for which discrete financial information is available and is reviewed by management. Components within a segment are aggregated to the extent that they have similar economic characteristics. Based on this evaluation, the Company has determined that its operating segments, wholesale and retail, represent reporting units for the purposes of its goodwill impairment test. If it is concluded that it is more likely than not that the Company’s goodwill is impaired, the Company estimates the fair value of each reporting unit using a combination of a market approach and an income approach. If the carrying amount of a reporting unit exceeds its fair value, the excess, if any, of the fair value of the reporting unit over amounts allocable to the unit’s other assets and liabilities is the implied fair value of goodwill. If the carrying amount of a reporting unit’s goodwill exceeds the implied fair value of that goodwill, an impairment loss will be recognized in an amount equal to that excess. The fair value of a reporting unit refers to the amount at which the unit as a whole could be sold in a current transaction between willing parties. |
Deferred Financing Costs | Deferred Financing Costs Deferred financing costs are netted against amounts outstanding under the related debt instruments. They are amortized to interest expense over the lives of the instruments using the effective interest method. |
Deferred Rent and Rental Expenses | Deferred Rent and Rental Expenses The Company leases its retail stores under operating leases that generally have initial terms of ten years, with two five year renewal options. The Company’s leases may have early cancellation clauses, which permit the lease to be terminated if certain sales levels are not met in specific periods, and may provide for the payment of contingent rent based on a percentage of the store’s net sales. The Company’s lease agreements generally have defined escalating rent provisions, which are reported as a deferred rent liability and expensed on a straight-line basis over the term of the related lease, commencing with the date of possession. In addition, the Company may receive cash allowances from its landlords on certain properties, which are reported as deferred rent and amortized to rent expense over the term of the lease, also commencing with the date of possession. Retail’s deferred rent liability at December 31, 2016 and 2015 was $68,857 and $49,826, respectively. |
Investments | Investments The Company has an investment in Convergram Mexico, S. De R.L. De C.V., a joint venture distributing metallic balloons, principally in Mexico and Latin America. The Company accounts for its 49.9% investment in the joint venture using the equity method. Additionally, the Company has an investment in PD Retail Group Limited, a joint venture operating party goods stores in the United Kingdom (“U.K.”). The Company accounts for its 50% investment using the equity method. The Company’s investments in the joint ventures are included in other assets on the consolidated balance sheet and the results of the joint ventures’ operations are included in other expense (income) in the consolidated statement of income and comprehensive income (loss) (see Note 10). |
Insurance Accruals | Insurance Accruals The Company maintains certain self-insured workers’ compensation and general liability insurance plans. The Company estimates the required liability for claims under such plans based upon various assumptions, which include, but are not limited to, historical loss experience, projected loss development factors, actual payroll and other data. The required liability is also subject to adjustment in the future based upon changes in claims experience, including changes in the number of incidents (frequency) and changes in the ultimate cost per incident (severity). |
Revenue Recognition | Revenue Recognition The Company’s terms of sale to retailers and other distributors for substantially all of its sales is free-on-board (“F.O.B.”) shipping point and, accordingly, title and the risks and rewards of ownership are transferred to the customer, and revenue is recognized, when goods are shipped. The Company estimates reductions to revenues for volume-based rebate programs at the time sales are recognized. Wholesale sales returns are not significant as, generally, we only accept the return of goods that were shipped to retailers in error. Revenue from retail store operations is recognized at the point of sale. Retail e-commerce sales are recognized on a F.O.B destination basis. The Company estimates future retail sales returns and records a provision in the period that the related sales are recorded based on historical information. Retail sales are reported net of taxes collected. Franchise fee revenue is recognized upon the completion of the Company’s performance requirements and the opening of the franchise store. In addition to the initial franchise fee, the Company also recognizes royalty fees generally ranging from 4% to 6% of net sales and advertising fund fees ranging from 1% to 2.25% of net sales each based upon the franchised stores’ reported gross retail sales. Additionally, the terms of the Company’s franchise agreements also provide for payments to franchisees based on e-commerce sales originating from specified areas relating to the franchisees’ contractual territory. The amounts paid by the Company vary based on several factors, including the profitability of the Company’s e-commerce sales, and are expensed at the time of sale. Revenues, and the related profit, on sales from the Company’s wholesale operations to its retail operations are eliminated in consolidation. |
Cost of Sales | Cost of Sales Cost of sales at wholesale reflects the production costs (i.e., raw materials, labor and overhead) of manufactured goods and the direct cost of purchased goods, inventory shrinkage at both retail and wholesale, inventory adjustments, inbound freight to the Company’s manufacturing and distribution facilities, distribution costs and outbound freight to transfer goods to the Company’s wholesale customers. At retail, cost of sales reflects the direct cost of goods purchased from third parties and the production or purchase costs of goods acquired from the Company’s wholesale operations. Retail cost of sales also includes inventory shrinkage, inventory adjustments, inbound freight, occupancy costs related to store operations, such as rent and common area maintenance, utilities and depreciation on assets, and all logistics costs (i.e., procurement, handling and distribution costs) associated with the Company’s e-commerce business. |
Retail Operating Expenses | Retail Operating Expenses Retail operating expenses include the costs and expenses associated with the operation of the Company’s retail stores, with the exception of occupancy costs included in cost of sales. Retail operating expenses principally consist of employee compensation and benefits, advertising, supplies expense and credit card and banking fees. |
Shipping and Handling | Shipping and Handling Outbound shipping costs billed to customers are included in net sales. The costs of shipping and handling incurred by the Company are included in cost of sales. |
Restructuring and Store Closure Costs | Restructuring and Store Closure Costs The Company records estimated store closure costs, estimated lease commitment costs (net of estimated sublease income) and other miscellaneous store closing costs when the liability is incurred. |
Product Royalty Agreements | Product Royalty Agreements The Company enters into product royalty agreements that allow the Company to use licensed designs on certain of its products. These contracts require the Company to pay royalties, generally based on the sales of such product, and may require guaranteed minimum royalties, a portion of which may be paid in advance. The Company matches royalty expense with revenue by recording royalties at the time of sale, at the greater of the contractual rate or an effective rate calculated based on the guaranteed minimum royalty and the Company’s estimate of sales during the contract period. If a portion of the guaranteed minimum royalty is determined to be unrecoverable, the unrecoverable portion is charged to expense at that time. Guaranteed minimum royalties paid in advance are recorded in the consolidated balance sheets in either prepaid expenses and other current assets or other assets, depending on the nature of the royalties. |
Catalog Costs | Catalog Costs The Company expenses costs associated with the production of catalogs when incurred. |
Advertising | Advertising Advertising costs are expensed as incurred. Retail advertising expenses for the years ended December 31, 2016, December 31, 2015, and December 31, 2014 were $63,528, $62,495, and $64,816, respectively. |
Art and Development Costs | Art and Development Costs Art and development costs are primarily internal costs that are not easily associated with specific designs, some of which may not reach commercial production. Accordingly, the Company expenses these costs as incurred. |
Derivative Financial Instruments | Derivative Financial Instruments Accounting Standards Codification (“ASC”) Topic 815, “Accounting for Derivative Instruments and Hedging Activities”, requires that all derivative financial instruments be recognized on the balance sheet at fair value and establishes criteria for both the designation and effectiveness of hedging activities. The Company uses derivatives in the management of interest rate and foreign currency exposure. ASC Topic 815 requires the Company to formally document the assets, liabilities or other transactions the Company designates as hedged items, the risk being hedged and the relationship between the hedged items and the hedging instruments. The Company must measure the effectiveness of the hedging relationship at the inception of the hedge and on an on-going basis. If derivative financial instruments qualify as fair value hedges, the gain or loss on the instrument and the offsetting loss or gain on the hedged item attributable to the hedged risk are recognized in net income during the period of the change in fair values. For derivative financial instruments that qualify as cash flow hedges ( i.e i.e |
Income Taxes | Income Taxes Deferred tax assets and liabilities are determined based on the difference between the financial statement and tax bases of assets and liabilities (and operating loss and tax credit carryforwards) applying enacted statutory tax rates in effect for the years in which the differences are expected to reverse. Deferred tax assets are reduced by a valuation allowance when, in the judgment of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. |
Stock-Based Compensation | Stock-Based Compensation Accounting for stock-based compensation requires measurement of compensation cost for all stock-based awards at fair value on the date of grant and recognition of compensation expense over the service period for awards expected to vest. |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Accumulated other comprehensive loss consists of the Company’s foreign currency adjustments and the impact of interest rate swap and foreign exchange contracts that qualify as hedges (see Notes 18 and 19). |
Foreign Currency Transactions and Translation | Foreign Currency Transactions and Translation The functional currencies of the Company’s foreign operations are the local currencies in which they operate. Foreign currency exchange gains or losses resulting from receivables or payables in currencies other than the functional currencies generally are credited or charged to operations. The balance sheets of foreign subsidiaries are translated into U.S. dollars at the exchange rates in effect on the balance sheet date. The results of operations of foreign subsidiaries are translated into U.S. dollars at the average exchange rates effective for the periods presented. The differences from historical exchange rates are recorded as comprehensive income (loss) and are included as a component of accumulated other comprehensive loss. |
Earnings Per Share | Earnings Per Share Basic earnings per share are computed by dividing net income available for common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share are calculated based on the weighted average number of outstanding common shares plus the dilutive effect of stock options as if they were exercised. A reconciliation between basic and diluted income per share is as follows: Year Ended Year Ended Year Ended 2014 Net income attributable to Party City Holdco Inc.: $ 117,477 $ 10,459 $ 56,123 Weighted average shares — Basic: 119,381,842 111,917,168 93,996,355 Effect of dilutive stock options: 987,830 1,026,639 447,782 Weighted average shares — Diluted: 120,369,672 112,943,807 94,444,137 Net income per common share — Basic: $ 0.98 $ 0.09 $ 0.60 Net income per common share — Diluted: $ 0.98 $ 0.09 $ 0.59 All earnings per share amounts, and the 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 the years ended December 31, 2016, December 31, 2015 and December 31, 2014, 2,371,876 stock options, 1,991,965 stock options and 0 stock options, respectively, were excluded from the calculations of net income per common share — diluted as they were anti-dilutive. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In November 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-18, “Statement of Cash Flows: Restricted Cash”. The pronouncement clarifies how entities should present changes in restricted cash on the statement of cash flows. The update is effective for the Company during the first quarter of 2018. The Company is in the process of evaluating the impact of the pronouncement on the Company’s consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments”. The pronouncement clarifies how entities should classify certain cash receipts and cash payments on the statement of cash flows. The update is effective for the Company during the first quarter of 2018. The Company is in the process of evaluating the impact of the pronouncement on the Company’s consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, “Compensation — Stock Compensation: Improvements to Employee Share-Based Payment Accounting”. The pronouncement simplifies several aspects of the accounting for share-based payment transactions. The update is 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 February 2016, the FASB issued ASU 2016-02, “Leases”. The ASU requires that companies recognize on their balance sheets assets and liabilities for the rights and obligations created by the companies’ leases. The update is effective for the Company during the first quarter of 2019. The Company is in the process of evaluating the impact of the pronouncement on the Company’s consolidated financial statements. See notes 8 and 14 for detail of the Company’s leases. In January 2016, the FASB issued ASU 2016-01, “Financial Instruments – Overall: Recognition and Measurement of Financial Assets and Financial Liabilities”. The update impacts the accounting for equity investments and the recognition of changes in fair value of financial liabilities when the fair value option is elected. The pronouncement will be effective for the Company during the first quarter of 2018. Although the Company continues to evaluate this pronouncement, it does not believe that it will have a material impact on the Company’s consolidated financial statements. In September 2015, the FASB issued ASU 2015-16, “Business Combinations: Simplifying the Accounting for Measurement-Period Adjustments”. The update requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The Company adopted the update during the three months ended March 31, 2016 and such adoption did not have a material impact on the Company’s consolidated financial statements. In July 2015, the FASB issued ASU 2015-11, “Inventory: 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 2015-05, “Intangibles – Goodwill and Other – Internal-Use Software: Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement”. The update amended the guidance on internal use software to clarify how customers in cloud computing arrangements should determine whether the arrangements include software licenses. The Company adopted the update during the three months ended March 31, 2016 and such adoption did not have a material impact on the Company’s consolidated financial statements. In June 2014, the FASB issued ASU 2014-12, “Compensation – Stock Compensation: 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 Company adopted the update during the three months ended March 31, 2016 and such adoption did not have any 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. 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; as well as the alternatives for the method of adoption. The Company currently anticipates adopting the pronouncement through a cumulative-effect adjustment; although this is subject to the completion of its analysis of the standard. The Company will continue its evaluation of ASU 2014-09 through the date of adoption. |
Industry Segments | Industry Segments The Company has two identifiable business segments. The Wholesale segment designs, manufactures, contracts for manufacture and distributes party goods, including paper and plastic tableware, metallic and latex balloons, Halloween and other costumes, accessories, novelties and stationery throughout the world. The Retail segment operates specialty retail party supply stores in the United States and Canada, principally under the names Party City and Halloween City, and it operates e-commerce 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. |
Fair Value Measurement | The provisions of ASC Topic 820, “Fair Value Measurement”, define fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. ASC Topic 820 established a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. This hierarchy requires entities to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: • Level 1 — Quoted prices in active markets for identical assets or liabilities. • Level 2 — Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. • Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. |
Summary of Significant Accoun33
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Schedule of Reconciliation Between Basic and Diluted Income Per Share | A reconciliation between basic and diluted income per share is as follows: Year Ended Year Ended Year Ended 2014 Net income attributable to Party City Holdco Inc.: $ 117,477 $ 10,459 $ 56,123 Weighted average shares — Basic: 119,381,842 111,917,168 93,996,355 Effect of dilutive stock options: 987,830 1,026,639 447,782 Weighted average shares — Diluted: 120,369,672 112,943,807 94,444,137 Net income per common share — Basic: $ 0.98 $ 0.09 $ 0.60 Net income per common share — Diluted: $ 0.98 $ 0.09 $ 0.59 |
Inventories, Net (Tables)
Inventories, Net (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consisted of the following: December 31, 2016 2015 Finished goods $ 581,277 $ 532,606 Raw materials 23,222 21,278 Work in process 9,369 10,375 $ 613,868 $ 564,259 |
Property, Plant and Equipment35
Property, Plant and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, Net | Property, plant and equipment, net consisted of the following: December 31, 2016 2015 Useful lives Machinery and equipment $ 157,170 $ 135,004 3-15 years Buildings 67,851 67,727 40 years Data processing 49,688 41,674 3-5 years Leasehold improvements 109,218 91,067 1-10 years Furniture and fixtures 163,539 141,089 5-10 years Land 10,450 9,294 557,916 485,855 Less: accumulated depreciation (265,012 ) (213,435 ) $ 292,904 $ 272,420 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Schedule of Changes in Goodwill by Reporting Segment | For the years ended December 31, 2016 and December 31, 2015 goodwill changes, by reporting segment, were as follows: Year Ended Year Ended Wholesale segment: Beginning balance $ 494,299 $ 492,096 Travis acquisition 0 7,489 ACIM acquisition 0 548 Festival acquisition 3,572 0 Foreign currency impact (6,012 ) (5,834 ) Ending balance 491,859 494,299 Retail segment: Beginning balance 1,068,216 1,065,154 Store acquisitions 12,869 4,028 Foreign currency impact (376 ) (966 ) Ending balance 1,080,709 1,068,216 Total ending balance, both segments $ 1,572,568 $ 1,562,515 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Identifiable Intangible Assets | The Company had the following other identifiable intangible assets: December 31, 2016 Cost Accumulated Net Useful lives Retail franchise licenses $ 72,200 $ 27,600 $ 44,600 4-19 years Customer lists and relationships 56,385 30,796 25,589 20 years Copyrights and designs 29,030 24,454 4,576 5-7 years Leasehold interests 15,556 14,140 1,416 1-11 years Design licenses 2,469 2,469 0 1-4 years Non-compete agreements 500 100 400 5 years Total $ 176,140 $ 99,559 $ 76,581 December 31, 2015 Cost Accumulated Net Useful lives Retail franchise licenses $ 67,000 $ 20,900 $ 46,100 19 years Customer lists and relationships 56,459 25,592 30,867 20 years Copyrights and designs 29,030 20,352 8,678 5-7 years Leasehold interests 16,045 13,174 2,871 1-11 years Design licenses 2,469 2,328 141 1-4 years Non-compete agreements 500 0 500 5 years Total $ 171,503 $ 82,346 $ 89,157 |
Long-Term Obligations (Tables)
Long-Term Obligations (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Summary of Long-Term Obligations | Long-term obligations consisted of the following: December 31, 2016 2015 Senior secured term loan facility (“Term Loan Credit Agreement”) (a) $ 1,205,496 $ 1,314,538 6.125% senior notes (“Senior Notes”) (b) 344,544 343,721 Capital lease obligations (c) 2,912 2,414 Total long-term obligations 1,552,952 1,660,673 Less: current portion (13,348 ) (14,552 ) Long-term obligations, excluding current portion $ 1,539,604 $ 1,646,121 |
Summary of Debt Instrument Redemption | On or after August 15, 2018, the Company may redeem the Senior Notes, in whole or in part, at the following (expressed as a percentage of the principal amount to be redeemed): Twelve-month period beginning on August 15, Percentage 2018 103.063 % 2019 101.531 % 2020 and thereafter 100.000 % |
Maturities of Long-Term Obligations | At December 31, 2016, maturities of long-term obligations consisted of the following: Long-Term Debt Capital Lease Totals 2017 $ 12,266 $ 1,082 $ 13,348 2018 12,266 560 12,826 2019 12,266 441 12,707 2020 12,266 291 12,557 2021 12,266 282 12,548 Thereafter 1,512,204 256 1,512,460 Long-term obligations $ 1,573,534 $ 2,912 $ 1,576,446 |
Other (Income) Expense, net (Ta
Other (Income) Expense, net (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Text Block [Abstract] | |
Summary of Other (Income) Expense, Net | Year Ended Year Ended Year Ended Other (income) expense, net consists of the following: Undistributed loss in unconsolidated joint ventures $ 314 $ 562 $ 1,556 Foreign currency (gains)/losses (7,417 ) 3,691 1,447 Debt refinancings (a) 1,458 94,607 4,396 Management agreement termination fee (b) 0 30,697 0 Corporate development expenses 3,290 1,786 700 Business interruption proceeds 0 0 (4,514 ) Other, net 345 (353 ) 2,306 Other (income) expense, net $ (2,010 ) $ 130,990 $ 5,891 (a) In October 2016, the Company amended the Term Loan Credit Agreement and recorded charges in other expense. See Note 8 for further discussion. Additionally, in August 2015, the Company refinanced its debt and recorded $79,010 of charges in other expense related to call premiums, third-party costs and the write-off of existing deferred financing costs, original issue discounts and capitalized call premiums. Further, during April 2015, the Company consummated an initial public offering of its common stock and the net proceeds of the offering were used to, among other things, fully redeem the Nextco Notes. The Company recorded $15,597 of charges related to the early redemption of such notes and the write-off of existing deferred financing costs and original issue discounts. (b) In conjunction with the initial public offering (“IPO”), the Company paid a management agreement termination fee to affiliates of THL and Advent. See Note 14 for further discussion. |
Equity Incentive Plans (Tables)
Equity Incentive Plans (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Summary of Changes in Outstanding Options | The following table summarizes the changes in outstanding stock options for the years ended December 31, 2014, December 31, 2015 and December 31, 2016. Options Average Average Fair Value of Grant Date Aggregate Weighted Average Remaining Outstanding at December 31, 2013 7,131,600 Granted 0 Exercised (202,720 ) $ 5.33 Forfeited (242,480 ) 5.33 Outstanding at December 31, 2014 6,686,400 5.33 $ 40,282 8.3 Granted 2,013,764 17.97 $ 6.04 Exercised (5,600 ) 5.33 Forfeited (176,919 ) 7.36 Outstanding at December 31, 2015 8,517,645 8.28 39,453 7.8 Granted 484,950 15.78 4.68 Exercised (257,520 ) 5.33 Forfeited (283,249 ) 10.05 Outstanding at December 31, 2016 8,461,826 $ 8.74 $ 46,214 6.9 Exercisable at December 31, 2016 2,053,474 $ 7.71 $ 13,337 6.6 Expected to vest at December 31, 2016 (excluding performance-based options) 2,555,551 $ 14.71 $ (1,294 ) 8.1 |
Time Based Stock Options [Member] | |
Fair Value of Options Granted | The fair value of time-based options granted during the year ended December 31, 2016 was estimated on the grant date using a Black-Scholes option valuation model based on the assumptions in the following table: Expected dividend rate 0% Risk-free interest rate 1.16% to 1.53% Volatility 25.87% to 26.38% Expected option term 5.5 years – 6.5 years The fair value of time-based options granted during the year ended December 31, 2015 was estimated on the grant date using a Black-Scholes option valuation model based on the assumptions in the following table: Expected dividend rate 0% Risk-free interest rate 1.57% to 1.93% Volatility 30.00% Expected option term 5.5 years – 6.5 years The fair value of time-based options granted during the year ended December 31, 2013 was estimated on the grant date using a Black-Scholes option valuation model based on the assumptions in the following table: Expected dividend rate 0% Risk-free interest rate 1.03% to 2.07% Volatility 35.00% Expected option term 6.2 years – 6.5 years |
Performance Shares [Member] | |
Fair Value of Options Granted | Based on a Monte Carlo simulation and the following assumptions, the options have an average grant date fair value of $3.09 per option: Expected dividend rate 0% Risk-free interest rate 1.86% Volatility 52.00% Expected option term 5 years |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Summary of Domestic and Foreign Income Before Income Taxes | A summary of domestic and foreign income before income taxes and including noncontrolling interest follows: Year Ended 2016 Year Ended 2015 Year Ended 2014 Domestic $ 152,800 $ 7,180 $ 67,000 Foreign 33,914 10,688 14,334 Total $ 186,714 $ 17,868 $ 81,334 |
Summary of Income Tax Expense (Benefit) | The income tax expense (benefit) consisted of the following: Year Ended 2016 Year Ended 2015 Year Ended 2014 Current: Federal $ 50,851 $ 8,137 $ 28,735 State 8,121 2,652 5,954 Foreign 6,864 2,798 4,280 Total current expense 65,836 13,587 38,969 Deferred: Federal 3,290 (6,710 ) (11,522 ) State (906 ) (1,086 ) (2,838 ) Foreign 1,017 1,618 602 Total deferred expense (benefit) 3,401 (6,178 ) (13,758 ) Income tax expense $ 69,237 $ 7,409 $ 25,211 |
Summary of Deferred Income Tax Assets and Liabilities | Deferred income tax assets and liabilities consisted of the following: December 31, 2016 2015 Deferred income tax assets: Inventory valuation $ 10,138 $ 9,794 Allowance for doubtful accounts 893 678 Accrued liabilities 13,638 10,891 Federal tax loss carryforwards 2,715 3,829 State tax loss carryforwards 1,070 1,161 Foreign tax loss carryforwards 13,992 14,778 Foreign tax credit carryforwards 1,418 1,418 Deferred rent 11,816 10,955 Other 509 294 Deferred income tax assets before valuation allowances 56,189 53,798 Less: valuation allowances (17,331 ) (15,817 ) Deferred income tax assets, net $ 38,858 $ 37,981 Deferred income tax liabilities: Property, plant and equipment $ 24,055 $ 21,810 Intangible assets 218,046 218,636 Amortization of goodwill and other assets 61,163 61,786 Foreign earnings expected to be repatriated 10,954 7,178 Other 2,655 4,072 Deferred income tax liabilities $ 316,873 $ 313,482 |
Summary of Difference Between the Effective Income Tax Rate and the U.S. Statutory Income Tax Rate | The difference between the Company’s effective income tax rate and the U.S. statutory income tax rate is as follows: Year Ended Year Ended Year Ended Tax provision at U.S. statutory income tax rate 35.0 % 35.0 % 35.0 % State income tax, net of federal income tax 2.5 5.7 2.5 Domestic production activities deduction (1.0 ) (5.1 ) (1.9 ) Deferred tax adjustments 0.0 0.0 (0.2 ) Contingent consideration adjustment (0.1 ) (6.0 ) 0.0 Transaction costs 0.0 0.0 (6.9 ) Work Opportunity Tax Credit (0.3 ) (3.2 ) (0.4 ) Valuation allowances 0.5 21.7 0.5 Foreign earnings 2.3 9.1 4.9 U.S. — foreign rate differential (2.4 ) (13.7 ) (3.4 ) Other 0.6 (2.0 ) 0.9 Effective income tax rate 37.1 % 41.5 % 31.0 % |
Summary of Activity of Company's Gross Unrecognized Tax Benefits | The following table summarizes the activity related to the Company’s gross unrecognized tax benefits: Year Ended Year Ended Year Ended 2014 Balance as of beginning of period $ 765 $ 798 $ 285 Increases related to current period tax positions 444 130 763 Increases related to prior period tax positions 339 0 0 Decrease related to settlements (635 ) (92 ) (193 ) Decreases related to lapsing of statutes of limitations — (71 ) (57 ) Balance as of end of period $ 913 $ 765 $ 798 |
Commitments, Contingencies an42
Commitments, Contingencies and Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Summary of Future Minimum Lease Payments under all Operating Leases | At December 31, 2016, future minimum lease payments under all operating leases consisted of the following: Future Minimum 2017 $ 171,776 2018 150,509 2019 125,993 2020 113,371 2021 100,036 Thereafter 301,024 $ 962,709 |
Summary of Future Minimum Product Royalties | At December 31, 2016, the Company’s commitment to pay future minimum product royalties was as follows: Future Minimum 2017 $ 29,833 2018 16,199 2019 6,106 2020 5,550 2021 0 Thereafter 0 $ 57,688 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Company's Industry Segment Data | The Company’s industry segment data for the years ended December 31, 2016, December 31, 2015, and December 31, 2014 are as follows: Wholesale Retail Consolidated Year Ended December 31, 2016 Revenues: Net sales $ 1,252,218 $ 1,641,068 $ 2,893,286 Royalties and franchise fees 0 17,005 17,005 Total revenues 1,252,218 1,658,073 2,910,291 Eliminations (626,900 ) 0 (626,900 ) Net revenues $ 625,318 $ 1,658,073 $ 2,283,391 Income from operations $ 91,920 $ 182,164 $ 274,084 Interest expense, net 89,380 Other income, net (2,010 ) Income before income taxes $ 186,714 Depreciation and amortization $ 29,695 $ 53,935 $ 83,630 Capital expenditures $ 26,854 $ 55,094 $ 81,948 Total assets $ 1,004,599 $ 2,389,379 $ 3,393,978 Wholesale Retail Consolidated Year Ended December 31, 2015 Revenues: Net sales $ 1,226,989 $ 1,621,524 $ 2,848,513 Royalties and franchise fees 0 19,411 19,411 Total revenues 1,226,989 1,640,935 2,867,924 Eliminations (573,391 ) 0 (573,391 ) Net revenues $ 653,598 $ 1,640,935 $ 2,294,533 Income from operations $ 85,728 $ 186,491 $ 272,219 Interest expense, net 123,361 Other expense, net 130,990 Income before income taxes $ 17,868 Depreciation and amortization $ 29,352 $ 51,163 $ 80,515 Capital expenditures $ 18,849 $ 59,976 $ 78,825 Total assets $ 864,698 $ 2,427,705 $ 3,292,403 Wholesale Retail Consolidated Year Ended December 31, 2014 Revenues: Net sales $ 1,213,024 $ 1,605,228 $ 2,818,252 Royalties and franchise fees 0 19,668 19,668 Total revenues 1,213,024 1,624,896 2,837,920 Eliminations (566,663 ) 0 (566,663 ) Net revenues $ 646,361 $ 1,624,896 $ 2,271,257 Income from operations $ 74,177 $ 168,965 $ 243,142 Interest expense, net 155,917 Other expense, net 5,891 Income before income taxes $ 81,334 Depreciation and amortization $ 32,446 $ 50,444 $ 82,890 Capital expenditures $ 27,651 $ 50,590 $ 78,241 |
Schedule of Company's Industry Geographic Segments | The Company’s geographic area data follows: Domestic Foreign Eliminations Consolidated Year Ended December 31, 2016 Revenues: Net sales to unaffiliated customers $ 1,917,158 $ 349,228 $ 0 $ 2,266,386 Net sales between geographic areas 51,916 80,776 (132,692 ) 0 Net sales 1,969,074 430,004 (132,692 ) 2,266,386 Royalties and franchise fees 17,005 0 0 17,005 Total revenues $ 1,986,079 $ 430,004 $ (132,692 ) $ 2,283,391 Income from operations $ 257,774 $ 16,310 $ 0 $ 274,084 Interest expense, net 89,380 Other income, net (2,010 ) Income before income taxes $ 186,714 Depreciation and amortization $ 77,176 $ 6,454 $ 83,630 Total long-lived assets (excluding goodwill, trade names and other intangible assets, net) $ 269,047 $ 28,359 $ 297,406 Total assets $ 3,147,003 $ 246,975 $ 0 $ 3,393,978 Domestic Foreign Eliminations Consolidated Year Ended December 31, 2015 Revenues: Net sales to unaffiliated customers $ 1,937,793 $ 337,329 $ 0 $ 2,275,122 Net sales between geographic areas 47,752 74,974 (122,726 ) 0 Net sales 1,985,545 412,303 (122,726 ) 2,275,122 Royalties and franchise fees 19,411 0 0 19,411 Total revenues $ 2,004,956 $ 412,303 $ (122,726 ) $ 2,294,533 Income from operations $ 267,209 $ 5,010 $ 0 $ 272,219 Interest expense, net 123,361 Other expense, net 130,990 Income before income taxes $ 17,868 Depreciation and amortization $ 74,849 $ 5,666 $ 80,515 Total long-lived assets (excluding goodwill, trade names and other intangible assets, net) $ 251,328 $ 30,776 $ 282,104 Total assets $ 3,093,949 $ 198,454 $ 0 $ 3,292,403 Domestic Foreign Eliminations Consolidated Year Ended December 31, 2014 Revenues: Net sales to unaffiliated customers $ 1,930,270 $ 321,319 $ 0 $ 2,251,589 Net sales between geographic areas 44,903 75,462 (120,365 ) 0 Net sales 1,975,173 396,781 (120,365 ) 2,251,589 Royalties and franchise fees 19,668 0 0 19,668 Total revenues $ 1,994,841 $ 396,781 $ (120,365 ) $ 2,271,257 Income from operations $ 236,495 $ 6,647 $ 0 $ 243,142 Interest expense, net 155,917 Other expense, net 5,891 Income before income taxes $ 81,334 Depreciation and amortization $ 77,445 $ 5,445 $ 82,890 |
Quarterly Results (Tables)
Quarterly Results (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Historical Revenues, Gross Profit, Income (Loss) from Operations | The following table sets forth our historical revenues, gross profit, income (loss) from operations, net income (loss), net income (loss) attributable to Party City Holdco Inc., net income (loss) per common share – Basic, and net income (loss) per common share—Diluted for each of the following periods: For the Three Months Ended, 2016: March 31, June 30, September 30, December 31, Revenues: Net sales $ 454,286 $ 515,426 $ 553,382 $ 743,292 Royalties and franchise fees 3,454 3,987 3,568 5,996 Gross profit 166,519 207,561 196,720 345,199 Income from operations 19,556 58,480 36,918 159,130 Net (loss) income (394 ) 22,515 10,180 85,176 Net (loss) income per common share — Basic $ (0.00 ) $ 0.19 $ 0.09 $ 0.71 Net (loss) income per common share — Diluted $ (0.00 ) $ 0.19 $ 0.08 $ 0.71 For the Three Months Ended, 2015: March 31, June 30, September 30, December 31, Revenues: Net sales $ 458,195 $ 491,206 $ 551,380 $ 774,341 Royalties and franchise fees 3,910 4,314 4,027 7,160 Gross profit 163,921 188,343 189,850 362,124 Income from operations 24,004 46,067 31,480 170,668 Net (loss) income (8,525 ) (23,050 )(a) (44,489 )(b) 86,523 Net (loss) income per common share — Basic $ (0.09 ) $ (0.20 )(a) $ (0.37 )(b) $ 0.73 Net (loss) income per common share — Diluted $ (0.09 ) $ (0.20 )(a) $ (0.37 )(b) $ 0.72 (a) During the three months ended June 30, 2015, the Company consummated an initial public offering of its common stock. The net proceeds of the offering were used to, among other things, fully redeem the Nextco Notes and pay a management agreement termination fee to affiliates of THL and Advent (see Note 10). (b) During the three months ended September 30, 2015, the Company refinanced its debt. See Note 10 for further discussion. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Summary of Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table shows assets and liabilities as of December 31, 2016 that are measured at fair value on a recurring basis: Level 1 Level 2 Level 3 Total as of Derivative assets $ 0 $ 697 $ 0 $ 697 Derivative liabilities 0 215 0 215 The following table shows assets and liabilities as of December 31, 2015 that are measured at fair value on a recurring basis: Level 1 Level 2 Level 3 Total as of Derivative assets $ 0 $ 773 $ 0 $ 773 Derivative liabilities 0 391 0 391 |
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, 2016 are as follows: Carrying Amount Fair Value Term Loan Credit Agreement $ 1,205,496 $ 1,232,710 Senior Notes 344,544 366,625 |
Derivative Financial Instrume46
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Fair Values of Derivatives | The following table displays the fair values of the Company’s derivatives at December 31, 2016 and December 31, 2015: Derivative Assets Derivative Liabilities Balance Fair Balance Fair Balance Fair Balance Fair Derivative Instrument December 31, 2016 December 31, 2015 December 31, 2016 December 31, 2015 Foreign Exchange Contracts (a ) PP $ 697 (a ) PP $ 773 (b ) AE $ 215 (b ) AE $ 391 (a) PP = Prepaid expenses and other current assets (b) AE = Accrued expenses |
Schedule of Notional Amounts of Derivatives | The following table displays the notional amounts of the Company’s derivatives at December 31, 2016 and December 31, 2015: Derivative Instrument December 31, December 31, Foreign Exchange Contracts $ 22,502 $ 23,028 |
Changes in Accumulated Other 47
Changes in Accumulated Other Comprehensive (Loss) Income (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Changes in Accumulated Other Comprehensive (Loss) Income | The changes in accumulated other comprehensive (loss) income attributable to Party City Holdco Inc. consisted of the following: Year Ended December 31, 2016 Foreign Impact of Total, Net Balance at December 31, 2015 $ (33,401 ) $ 611 $ (32,790 ) Other comprehensive (loss) income before reclassifications, net of income tax (19,770 ) 1,080 (18,690 ) Amounts reclassified from accumulated other comprehensive loss to the consolidated statement of income and comprehensive income, net of income tax 0 (759 ) (759 ) Net current-period other comprehensive (loss) income (19,770 ) 321 (19,449 ) Balance at December 31, 2016 $ (53,171 ) $ 932 $ (52,239 ) Year Ended December 31, 2015 Foreign Impact of Total, Net Balance at December 31, 2014 $ (12,969 ) $ 234 $ (12,735 ) Other comprehensive (loss) income before reclassifications, net of income tax (20,432 ) 675 (19,757 ) Amounts reclassified from accumulated other comprehensive loss to the consolidated statement of income and comprehensive loss, net of income tax 0 (298 ) (298 ) Net current-period other comprehensive (loss) income (20,432 ) 377 (20,055 ) Balance at December 31, 2015 $ (33,401 ) $ 611 $ (32,790 ) Year Ended December 31, 2014 Foreign Impact of Total, Net Balance at December 31, 2013 $ 5,738 $ (330 ) $ 5,408 Other comprehensive (loss) income before reclassifications, net of income tax (18,707 ) 336 (18,371 ) Amounts reclassified from accumulated other comprehensive income (loss) to the consolidated statement of income and comprehensive income, net of income tax 0 228 228 Net current-period other comprehensive (loss) income (18,707 ) 564 (18,143 ) Balance at December 31, 2014 $ (12,969 ) $ 234 $ (12,735 ) |
Organization, Description of 48
Organization, Description of Business and Basis of Presentation - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2016Store | |
PC Nextco [Member] | |
Basis Of Presentation [Line Items] | |
Ownership percentage | 100.00% |
PC Intermediate [Member] | |
Basis Of Presentation [Line Items] | |
Ownership percentage | 100.00% |
Party City Holdings Inc [Member] | |
Basis Of Presentation [Line Items] | |
Ownership percentage | 100.00% |
United States and Canada [Member] | |
Basis Of Presentation [Line Items] | |
Number of specialty retail party supply stores | 900 |
Summary of Significant Accoun49
Summary of Significant Accounting Policies - Additional Information (Detail) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016USD ($)Leaseshares | Dec. 31, 2015USD ($)shares | Dec. 31, 2014USD ($)shares | |
Significant Accounting Policies [Line Items] | |||
Allowance for doubtful accounts | $ 2,683 | $ 2,343 | |
Operating lease initial term | 10 years | ||
Operating lease renewal period | 5 years | ||
Number of operating lease renewals options | Lease | 2 | ||
Deferred rent liability | $ 68,857 | 49,826 | |
Retail advertising expenses | $ 63,528 | $ 62,495 | $ 64,816 |
Common stock split conversion description | All earnings per share amounts, and the 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 | ||
Convergram Mexico, S. De R.L. De C.V. [Member] | |||
Significant Accounting Policies [Line Items] | |||
Equity method investment percentage in joint venture | 49.90% | ||
PD Retail Group Limited [Member] | |||
Significant Accounting Policies [Line Items] | |||
Equity method investment percentage in joint venture | 50.00% | ||
Employee Stock Option [Member] | |||
Significant Accounting Policies [Line Items] | |||
Antidilutive securities excluded from calculation of earnings per share | shares | 2,371,876 | 1,991,965 | 0 |
Maximum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Retail operations period of fiscal year | 53 Weeks | ||
Retail operations period of fiscal quarter | 14 Weekss | ||
Percentage of royalty revenue recognized | 6.00% | ||
Percentage of advertising fund fee recognized | 2.25% | ||
Minimum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Retail operations period of fiscal year | 52 Weeks | ||
Retail operations period of fiscal quarter | 13 Weeks | ||
Percentage of royalty revenue recognized | 4.00% | ||
Percentage of advertising fund fee recognized | 1.00% |
Summary of Significant Accoun50
Summary of Significant Accounting Policies - Schedule of Reconciliation Between Basic and Diluted Income Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Earnings Per Share [Abstract] | |||||||||||
Net income attributable to Party City Holdco Inc.: | $ 117,477 | $ 10,459 | $ 56,123 | ||||||||
Weighted average shares - Basic: | 119,381,842 | 111,917,168 | 93,996,355 | ||||||||
Effect of dilutive stock options: | 987,830 | 1,026,639 | 447,782 | ||||||||
Weighted average shares - Diluted: | 120,369,672 | 112,943,807 | 94,444,137 | ||||||||
Net income per common share - Basic: | $ 0.71 | $ 0.09 | $ 0.19 | $ 0 | $ 0.73 | $ (0.37) | $ (0.20) | $ (0.09) | $ 0.98 | $ 0.09 | $ 0.60 |
Net income per common share - Diluted: | $ 0.71 | $ 0.08 | $ 0.19 | $ 0 | $ 0.72 | $ (0.37) | $ (0.20) | $ (0.09) | $ 0.98 | $ 0.09 | $ 0.59 |
Inventories, Net - Inventories
Inventories, Net - Inventories (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 581,277 | $ 532,606 |
Raw materials | 23,222 | 21,278 |
Work in process | 9,369 | 10,375 |
Inventories, net | $ 613,868 | $ 564,259 |
Property, Plant and Equipment52
Property, Plant and Equipment, Net - Property, Plant and Equipment, Net (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment gross | $ 557,916 | $ 485,855 |
Less: accumulated depreciation | (265,012) | (213,435) |
Property plant and equipment, net | 292,904 | 272,420 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment gross | 157,170 | 135,004 |
Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment gross | $ 67,851 | 67,727 |
Useful lives | 40 years | |
Data Processing [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment gross | $ 49,688 | 41,674 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment gross | 109,218 | 91,067 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment gross | 163,539 | 141,089 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property plant and equipment gross | $ 10,450 | $ 9,294 |
Minimum [Member] | Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful lives | 3 years | |
Minimum [Member] | Data Processing [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful lives | 3 years | |
Minimum [Member] | Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful lives | 1 year | |
Minimum [Member] | Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful lives | 5 years | |
Maximum [Member] | Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful lives | 15 years | |
Maximum [Member] | Data Processing [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful lives | 5 years | |
Maximum [Member] | Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful lives | 10 years | |
Maximum [Member] | Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Useful lives | 10 years |
Property, Plant and Equipment53
Property, Plant and Equipment, Net - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property Plant and Equipment Useful Life and Values [Abstract] | |||
Depreciation and amortization expense related to property, plant and equipment, including assets under capital leases | $ 66,383 | $ 61,630 | $ 60,695 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Mar. 31, 2016USD ($)Store | Jan. 31, 2016USD ($)StoreFranchised_Stores | Aug. 31, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2016USD ($) | |
Arizona and New Mexico [Member] | |||||
Business Acquisition [Line Items] | |||||
Number of franchise stores acquired | Franchised_Stores | 19 | ||||
Total consideration amount | $ 26,500 | ||||
Fair value inventories acquired | 8,484 | ||||
Fair value property, plant and equipment acquired | 765 | ||||
Fair value intangible asset acquired | 5,200 | ||||
Fair value liability due to unfavorable leases conditions | $ 500 | ||||
Number of corporate-owned stores | Store | 700 | ||||
Travis Designs Limited [Member] | |||||
Business Acquisition [Line Items] | |||||
Consideration paid for acquisition | $ 10,500 | ||||
Contingent liability | $ 1,077 | ||||
Party City Stores [Member] | |||||
Business Acquisition [Line Items] | |||||
Number of corporate-owned stores | Store | 700 | ||||
Accurate Custom Injection Molding Inc [Member] | |||||
Business Acquisition [Line Items] | |||||
Consideration paid for acquisition | $ 10,000 | ||||
Business combination, acquisition percentage | 75.00% | ||||
Estimated purchase price interest | $ 0 | ||||
Business combination, percentage of remaining interest | 25.00% | ||||
Business combination, period to acquire remaining interest | 8 years | ||||
Festival S. A. [Member] | |||||
Business Acquisition [Line Items] | |||||
Fair value inventories acquired | $ 2,990 | ||||
Fair value property, plant and equipment acquired | 338 | ||||
Consideration paid for acquisition | 5,500 | ||||
Fair value accounts receivable acquired | 591 | ||||
Fair value property, current liabilities acquired | 1,994 | ||||
Goodwill fair value | $ 3,572 |
Acquisitions - Schedule of Chan
Acquisitions - Schedule of Changes in Goodwill by Reporting Segment (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule Of Goodwill By Segment [Line Items] | ||
Beginning balance | $ 1,562,515 | |
Ending balance | 1,572,568 | $ 1,562,515 |
Wholesale Segment [Member] | ||
Schedule Of Goodwill By Segment [Line Items] | ||
Beginning balance | 494,299 | 492,096 |
Foreign currency impact | (6,012) | (5,834) |
Ending balance | 491,859 | 494,299 |
Wholesale Segment [Member] | Travis Designs Limited [Member] | ||
Schedule Of Goodwill By Segment [Line Items] | ||
Business acquisition | 0 | 7,489 |
Wholesale Segment [Member] | Accurate Custom Injection Molding Inc [Member] | ||
Schedule Of Goodwill By Segment [Line Items] | ||
Business acquisition | 0 | 548 |
Wholesale Segment [Member] | Festival S. A. [Member] | ||
Schedule Of Goodwill By Segment [Line Items] | ||
Business acquisition | 3,572 | 0 |
Retail Segment [Member] | ||
Schedule Of Goodwill By Segment [Line Items] | ||
Beginning balance | 1,068,216 | 1,065,154 |
Foreign currency impact | (376) | (966) |
Ending balance | 1,080,709 | 1,068,216 |
Retail Segment [Member] | Store Acquisition [Member] | ||
Schedule Of Goodwill By Segment [Line Items] | ||
Business acquisition | $ 12,869 | $ 4,028 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Identifiable Intangible Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Finite-Lived Intangible Assets [Line Items] | ||
Cost | $ 176,140 | $ 171,503 |
Accumulated Amortization | 99,559 | 82,346 |
Net Carrying Value | 76,581 | 89,157 |
Retail Franchise Licenses [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 72,200 | 67,000 |
Accumulated Amortization | 27,600 | 20,900 |
Net Carrying Value | 44,600 | $ 46,100 |
Useful lives | 19 years | |
Customer Lists and Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 56,385 | $ 56,459 |
Accumulated Amortization | 30,796 | 25,592 |
Net Carrying Value | $ 25,589 | $ 30,867 |
Useful lives | 20 years | 20 years |
Copyrights and Designs [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | $ 29,030 | $ 29,030 |
Accumulated Amortization | 24,454 | 20,352 |
Net Carrying Value | 4,576 | 8,678 |
Leasehold Interests [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 15,556 | 16,045 |
Accumulated Amortization | 14,140 | 13,174 |
Net Carrying Value | 1,416 | 2,871 |
Design Licenses [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 2,469 | 2,469 |
Accumulated Amortization | 2,469 | 2,328 |
Net Carrying Value | 0 | 141 |
Non-compete Agreements [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 500 | 500 |
Accumulated Amortization | 100 | 0 |
Net Carrying Value | $ 400 | $ 500 |
Useful lives | 5 years | 5 years |
Minimum [Member] | Retail Franchise Licenses [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful lives | 4 years | |
Minimum [Member] | Copyrights and Designs [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful lives | 5 years | 5 years |
Minimum [Member] | Leasehold Interests [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful lives | 1 year | 1 year |
Minimum [Member] | Design Licenses [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful lives | 1 year | 1 year |
Maximum [Member] | Retail Franchise Licenses [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful lives | 19 years | |
Maximum [Member] | Copyrights and Designs [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful lives | 7 years | 7 years |
Maximum [Member] | Leasehold Interests [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful lives | 11 years | 11 years |
Maximum [Member] | Design Licenses [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful lives | 4 years | 4 years |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Intangible Liability Disclosure [Abstract] | |||
Amortization expense for finite-lived intangible assets | $ 17,247 | $ 18,885 | $ 22,195 |
Amortization expense for next twelve months | 14,230 | ||
Amortization expense for two year | 10,883 | ||
Amortization expense for three year | 9,799 | ||
Amortization expense for four year | 7,363 | ||
Amortization expense for five year | $ 6,512 |
Loans and Notes Payable - ABL F
Loans and Notes Payable - ABL Facility - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2016USD ($)OptionPlan | Dec. 31, 2015USD ($) | |
Debt Instrument [Line Items] | ||
Line of credit facility, amount outstanding | $ 120,138,000 | $ 126,136,000 |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Line of credit facility, amount outstanding | $ 122,025,000 | |
Interest rates | 2.49% | |
Outstanding letter of credit | $ 26,681,000 | |
Line of credit facility, remaining borrowing capacity | 368,484,000 | |
ABL Facility [Member] | ||
Debt Instrument [Line Items] | ||
Unamortized financing costs | 3,049,000 | |
ABL Facility [Member] | Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Credit facility current borrowing capacity | 540,000,000 | |
Credit facility borrowing maximum capacity | 640,000,000 | |
Letters of credit outstanding maximum under our ABL facility | $ 50,000,000 | |
Debt instrument maturity date | Aug. 19, 2020 | |
Number of pricing options | OptionPlan | 2 | |
Commitment fee percentage | 0.25% | |
Percentage applied to aggregate commitments and borrowing base | 10.00% | |
Applicability of fixed charge coverage ratio, description | PCHI must comply with a fixed charge coverage ratio if excess availability under the ABL Facility on any day is less than the greater of (a) 10% of the lesser of the aggregate commitments and the then borrowing base under the ABL Facility and (b) $40,000. | |
Line of credit facility, excess availability | $ 40,000,000 | |
ABL Facility [Member] | Revolving Credit Facility [Member] | Alternate Base Interest Rate Loans [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate description | (i) an alternate base interest rate (“ABR”) equal to the greater of (a) the prime rate, (b) the federal funds rate plus 0.5% or (c) the LIBOR rate plus 1%, in each case, on the date of such borrowing | |
ABL Facility [Member] | Revolving Credit Facility [Member] | Alternate Base Interest Rate Loans [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 0.25% | |
ABL Facility [Member] | Revolving Credit Facility [Member] | Alternate Base Interest Rate Loans [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 0.50% | |
ABL Facility [Member] | Revolving Credit Facility [Member] | Federal Fund Rate [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 0.50% | |
ABL Facility [Member] | Revolving Credit Facility [Member] | LIBOR [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.00% | |
ABL Facility [Member] | Revolving Credit Facility [Member] | LIBOR Based Loans [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate description | (ii) a LIBOR based interest rate, in each case plus an applicable margin | |
ABL Facility [Member] | Revolving Credit Facility [Member] | LIBOR Based Loans [Member] | Minimum [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.25% | |
ABL Facility [Member] | Revolving Credit Facility [Member] | LIBOR Based Loans [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.50% |
Loans and Notes Payable - Other
Loans and Notes Payable - Other Credit Agreements - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Line of credit facility, amount outstanding | $ 120,138 | $ 126,136 |
Foreign Facilities [Member] | ||
Debt Instrument [Line Items] | ||
Line of credit facility, amount outstanding | $ 1,162 | $ 0 |
Long-Term Obligations - Summary
Long-Term Obligations - Summary of Long-Term Obligations (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Total long-term obligations | $ 1,552,952 | $ 1,660,673 |
Less: current portion | (13,348) | (14,552) |
Long-term obligations, excluding current portion | 1,539,604 | 1,646,121 |
Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term obligations | 344,544 | 343,721 |
Capital Lease Obligations [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term obligations | 2,912 | 2,414 |
Term Loan Credit Agreement [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term obligations | 1,223,534 | |
Term Loan Credit Agreement [Member] | Senior Secured Term Loan Facility [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term obligations | $ 1,205,496 | $ 1,314,538 |
Long-Term Obligations - Summa61
Long-Term Obligations - Summary of Long-Term Obligations (Parenthetical) (Detail) | Dec. 31, 2016 | Dec. 31, 2015 |
Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Notes issued rate | 6.125% | 6.125% |
Long-Term Obligations - Term Lo
Long-Term Obligations - Term Loan Credit Agreement - Additional Information (Detail) $ in Thousands | Oct. 31, 2016USD ($)OptionPlan | Oct. 31, 2016USD ($)OptionPlan | Aug. 31, 2015USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Debt Instrument [Line Items] | |||||
Outstanding principal amount of term loans | $ 1,552,952 | $ 1,660,673 | |||
Term Loan Credit Agreement [Member] | |||||
Debt Instrument [Line Items] | |||||
Percentage of net cash proceeds above sale of assets subject to debt mandatory prepayment | 100.00% | 100.00% | |||
Percentage of net cash proceeds of incurrence of debt subject to debt mandatory prepayment | 100.00% | 100.00% | |||
Percentage excess cash flow debt mandatory prepayment subject to leverage ratio | 50.00% | 50.00% | |||
Leverage ratio Above that Fifty percentage of Excess Cash Flow as defined in the New Term Loan Credit Agreement | 3.50 | 3.50 | |||
Leverage ratio below that zero percentage of Excess Cash Flow as defined in the New Term Loan Credit Agreement | 2.50 | ||||
Outstanding principal amount of term loans | 1,223,534 | ||||
Original issuance discount, call premium and deferred financing costs | $ 18,038 | ||||
Interest rates | 4.21% | ||||
Term Loan Credit Agreement [Member] | Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Reduction in percentage of excess cash flow debt mandatory prepayment subject to leverage ratio | 25.00% | 25.00% | |||
Leverage ratio below that Twenty Five percentage of Excess Cash Flow as defined in the New Term Loan Credit Agreement | 3.5 | ||||
Term Loan Credit Agreement [Member] | Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Reduction in percentage of excess cash flow debt mandatory prepayment subject to leverage ratio | 0.00% | 0.00% | |||
Leverage ratio below that Twenty Five percentage of Excess Cash Flow as defined in the New Term Loan Credit Agreement | 1 | ||||
Term Loan Credit Agreement [Member] | Secured Debt [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility maximum borrowing capacity | $ 100,000 | $ 100,000 | |||
Interest rate description | The applicable margin for ABR borrowings was lowered from 2.25% to 2.00% and the applicable margin for LIBOR borrowings was lowered from 3.25% to 3.00%. Additionally, the LIBOR floor was lowered from 1.00% to 0.75%. | ||||
Number of pricing options | OptionPlan | 2 | 2 | |||
Minimum adjustment rate of LIBOR | 1.75% | ||||
Decreased LIBOR floor rate | 0.75% | ||||
Percentage of voluntary prepayments | 1.00% | ||||
Deferred financing costs, Write-off | $ 394 | ||||
Original issuance discount, recorded in other expense | 217 | ||||
Call premium recorded in other expense, net | 122 | ||||
Banker and legal fees | $ 757 | $ 757 | |||
Credit facility maturity date | Aug. 19, 2022 | ||||
Term loans repayment, quarterly installment percentage | 0.25% | ||||
Term Loan Credit Agreement [Member] | Secured Debt [Member] | Other Expense [Member] | |||||
Debt Instrument [Line Items] | |||||
Banker and legal fees recorded in other expense | $ 725 | $ 79,010 | |||
Term Loan Credit Agreement [Member] | Secured Debt [Member] | Alternate Base Interest Rate Loans [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 2.00% | 2.25% | 2.00% | ||
Interest rate description | (i) an ABR for any day, a rate per annum equal to the greater of (a) the prime rate in effect on such day, (b) the federal funds effective rate in effect on such day plus 0.5%, (c) the adjusted LIBOR rate plus 1% and (d) 1.75% | ||||
Term Loan Credit Agreement [Member] | Secured Debt [Member] | LIBOR [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.00% | 3.25% | 3.00% | ||
Term Loan Credit Agreement [Member] | Secured Debt [Member] | LIBOR [Member] | Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 3.00% | ||||
Term Loan Credit Agreement [Member] | Secured Debt [Member] | LIBOR Floor Rate [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.00% | 1.00% | 0.75% | ||
Term Loan Credit Agreement [Member] | Secured Debt [Member] | Federal Funds Rate [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 0.50% | ||||
Term Loan Credit Agreement [Member] | Secured Debt [Member] | LIBOR Based Loans [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest rate description | (ii) the LIBOR rate, with a LIBOR floor of 0.75%, in each case plus an applicable margin (3.00% for LIBOR borrowings and 2.00% for ABR borrowings). |
Long-Term Obligations - Senior
Long-Term Obligations - Senior Notes - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | ||
Capital lease obligations | $ 2,912 | $ 2,414 |
Senior Notes [Member] | ||
Debt Instrument [Line Items] | ||
Notes issued rate | 6.125% | 6.125% |
Debt instrument maturity date | Aug. 15, 2023 | |
Equity offering for senior notes description | Cash proceeds from certain equity offerings | |
Repurchase of senior notes of principal amount | 101.00% | |
Third-party costs incurred and capitalized | $ 5,456 | |
Senior Notes [Member] | Debt Instrument Redemption by Equity Offering Before August 15, 2018 [Member] | ||
Debt Instrument [Line Items] | ||
Percentage of principal amount redeemed | 106.125% | |
Senior Notes [Member] | Debt Instrument Redemption Period with Premium Before August 15, 2018 [Member] | ||
Debt Instrument [Line Items] | ||
Percentage of principal amount redeemed | 100.00% | |
Senior Notes [Member] | Maximum [Member] | ||
Debt Instrument [Line Items] | ||
Percentage of principal amount redeemed | 40.00% | |
Senior Notes and Term Loan Credit Agreement [Member] | ||
Debt Instrument [Line Items] | ||
Restricted payment capacity | $ 301,494 |
Long-Term Obligations - Summa64
Long-Term Obligations - Summary of Debt Instrument Redemption (Detail) - Senior Notes [Member] | 12 Months Ended |
Dec. 31, 2016 | |
Twelve-Month Period Beginning on August 15, 2018 [Member] | |
Debt Instrument, Redemption [Line Items] | |
Percentage of principal amount to be redeemed | 103.063% |
Twelve-Month Period Beginning on August 15, 2019 [Member] | |
Debt Instrument, Redemption [Line Items] | |
Percentage of principal amount to be redeemed | 101.531% |
Twelve-Month Period Beginning on August 15, 2020 and Thereafter [Member] | |
Debt Instrument, Redemption [Line Items] | |
Percentage of principal amount to be redeemed | 100.00% |
Long-Term Obligations - Maturit
Long-Term Obligations - Maturities of Long-Term Obligations (Detail) $ in Thousands | Dec. 31, 2016USD ($) |
Debt Instrument [Line Items] | |
2,017 | $ 13,348 |
2,018 | 12,826 |
2,019 | 12,707 |
2,020 | 12,557 |
2,021 | 12,548 |
Thereafter | 1,512,460 |
Long-term obligations | 1,576,446 |
Long-Term Debt Obligations [Member] | |
Debt Instrument [Line Items] | |
2,017 | 12,266 |
2,018 | 12,266 |
2,019 | 12,266 |
2,020 | 12,266 |
2,021 | 12,266 |
Thereafter | 1,512,204 |
Long-term obligations | 1,573,534 |
Capital Lease Obligations [Member] | |
Debt Instrument [Line Items] | |
2,017 | 1,082 |
2,018 | 560 |
2,019 | 441 |
2,020 | 291 |
2,021 | 282 |
Thereafter | 256 |
Long-term obligations | $ 2,912 |
Capital Stock - Additional Info
Capital Stock - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | |
Apr. 30, 2015 | Dec. 31, 2016 | |
Temporary Equity [Line Items] | ||
Authorized capital stock | 300,000,000 | |
Common stock, par value | $ 0.01 | |
Authorized preferred stock | 15,000,000 | |
Preferred stock, par value | $ 0.01 | |
Payment in Kind (PIK) Note [Member] | Nextco Notes [Member] | ||
Temporary Equity [Line Items] | ||
Debt Instrument Carrying Amount | $ 350,000 | |
IPO [Member] | ||
Temporary Equity [Line Items] | ||
Common stock shares sold | 25,156,250 |
Other (Income) Expense, Net - S
Other (Income) Expense, Net - Summary of Other (Income) Expense, Net (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Other Income and Expenses [Abstract] | |||
Undistributed loss in unconsolidated joint ventures | $ 314 | $ 562 | $ 1,556 |
Foreign currency (gains)/losses | (7,417) | 3,691 | 1,447 |
Debt refinancings | 1,458 | 94,607 | 4,396 |
Management agreement termination fee | 0 | 30,697 | 0 |
Corporate development expenses | 3,290 | 1,786 | 700 |
Business interruption proceeds | 0 | 0 | (4,514) |
Other, net | 345 | (353) | 2,306 |
Other (income) expense, net | $ (2,010) | $ 130,990 | $ 5,891 |
Other (Income) Expense, Net -68
Other (Income) Expense, Net - Summary of Other (Income) Expense, Net (Parenthetical) (Detail) - Secured Debt [Member] - Term Loan Credit Agreement [Member] - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |
Oct. 31, 2016 | Aug. 31, 2015 | Dec. 31, 2016 | |
Other Non Operating Income And Expenses [Line Items] | |||
Debt extinguishment amount | $ 15,597 | ||
Other Expense [Member] | |||
Other Non Operating Income And Expenses [Line Items] | |||
Debt instrument refinacing expense | $ 725 | $ 79,010 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - Subsidiary Issuer [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Defined contribution plan, expenses recognized | $ 5,792 | $ 5,196 | $ 6,179 |
Minimum [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Employer matching contribution of employees contribution | 11.00% | ||
Employer matching contribution of employees gross pay | 5.00% | ||
Maximum [Member] | |||
Defined Contribution Plan Disclosure [Line Items] | |||
Employer matching contribution of employees contribution | 100.00% | ||
Employer matching contribution of employees gross pay | 6.00% |
Equity Incentive Plans - Additi
Equity Incentive Plans - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Jul. 27, 2013 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Forfeiture rate | 13.40% | |||
Intrinsic value of options exercised | $ 2,726 | $ 60 | $ 561 | |
Fair value of options vested | 4,110 | 1,726 | 1,769 | |
Time Based Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 3,853 | $ 3,042 | $ 1,583 | |
Options granted | 0 | |||
Options vested granted percentage | 20.00% | 20.00% | ||
Options vesting description | Vested 20% on July 27, 2013 and vest 20% each July 27th thereafter | |||
Unrecognized compensation cost | $ 10,537 | |||
Unrecognized compensation cost weighted-average recognition period | 40 months | |||
Performance Shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options outstanding | 3,852,801 | |||
Options, Average grant date fair value | $ 3.09 | |||
2012 Omnibus Equity Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Maximum number of shares reserved | 15,316,000 |
Equity Incentive Plans - Fair V
Equity Incentive Plans - Fair Value of Options Granted (Detail) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2013 | |
Time Based Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected dividend rate | 0.00% | 0.00% | 0.00% |
Risk-free interest rate, Minimum | 1.16% | 1.57% | 1.03% |
Risk-free interest rate, Maximum | 1.53% | 1.93% | 2.07% |
Volatility | 25.87% | ||
Volatility | 26.38% | ||
Volatility | 30.00% | 35.00% | |
Time Based Stock Options [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected option term | 5 years 6 months | 5 years 6 months | 6 years 2 months 12 days |
Time Based Stock Options [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected option term | 6 years 6 months | 6 years 6 months | 6 years 6 months |
Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected dividend rate | 0.00% | ||
Risk-free interest rate | 1.86% | ||
Volatility | 52.00% | ||
Expected option term | 5 years |
Equity Incentive Plans - Summar
Equity Incentive Plans - Summary of Changes in Outstanding Options (Detail) - Performance Based Stock Options [Member] - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options outstanding beginning balance | 8,517,645 | 6,686,400 | 7,131,600 |
Options granted | 484,950 | 2,013,764 | 0 |
Options exercised | (257,520) | (5,600) | (202,720) |
Options forfeited | (283,249) | (176,919) | (242,480) |
Options outstanding ending balance | 8,461,826 | 8,517,645 | 6,686,400 |
Average exercise price outstanding beginning balance | $ 8.28 | $ 5.33 | |
Options exercisable | 2,053,474 | ||
Average exercise price granted | $ 15.78 | 17.97 | |
Expected to vest (excluding performance-based options) | 2,555,551 | ||
Average exercise price exercised | $ 5.33 | 5.33 | $ 5.33 |
Average exercise price forfeited | 10.05 | 7.36 | 5.33 |
Average exercise price outstanding ending balance | 8.74 | 8.28 | $ 5.33 |
Average exercise price exercisable | 7.71 | ||
Average exercise price expected to vest | 14.71 | ||
Average fair market value of TBOs at grant date granted | $ 4.68 | $ 6.04 | |
Aggregate intrinsic value outstanding ending balance | $ 46,214 | $ 39,453 | $ 40,282 |
Aggregate intrinsic value exercisable | 13,337 | ||
Aggregate intrinsic value expected to vest | $ (1,294) | ||
Weighted average remaining contractual term outstanding ending balance | 6 years 10 months 24 days | 7 years 9 months 18 days | 8 years 3 months 18 days |
Weighted average remaining contractual term exercisable | 6 years 7 months 6 days | ||
Weighted average remaining contractual term expected to vest | 8 years 1 month 6 days |
Income Taxes - Summary of Domes
Income Taxes - Summary of Domestic and Foreign Income Before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 152,800 | $ 7,180 | $ 67,000 |
Foreign | 33,914 | 10,688 | 14,334 |
Total | $ 186,714 | $ 17,868 | $ 81,334 |
Income Taxes - Summary Income T
Income Taxes - Summary Income Tax Expense (Benefit) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Current: | |||
Federal | $ 50,851 | $ 8,137 | $ 28,735 |
State | 8,121 | 2,652 | 5,954 |
Foreign | 6,864 | 2,798 | 4,280 |
Total current expense | 65,836 | 13,587 | 38,969 |
Deferred: | |||
Federal | 3,290 | (6,710) | (11,522) |
State | (906) | (1,086) | (2,838) |
Foreign | 1,017 | 1,618 | 602 |
Total deferred expense (benefit) | 3,401 | (6,178) | (13,758) |
Income tax expense | $ 69,237 | $ 7,409 | $ 25,211 |
Income Taxes - Summary of Defer
Income Taxes - Summary of Deferred Income Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred income tax assets: | ||
Inventory valuation | $ 10,138 | $ 9,794 |
Allowance for doubtful accounts | 893 | 678 |
Accrued liabilities | 13,638 | 10,891 |
Federal tax loss carryforwards | 2,715 | 3,829 |
State tax loss carryforwards | 1,070 | 1,161 |
Foreign tax loss carryforwards | 13,992 | 14,778 |
Foreign tax credit carryforwards | 1,418 | 1,418 |
Deferred rent | 11,816 | 10,955 |
Other | 509 | 294 |
Deferred income tax assets before valuation allowances | 56,189 | 53,798 |
Less: valuation allowances | (17,331) | (15,817) |
Deferred income tax assets, net | 38,858 | 37,981 |
Deferred income tax liabilities: | ||
Property, plant and equipment | 24,055 | 21,810 |
Intangible assets | 218,046 | 218,636 |
Amortization of goodwill and other assets | 61,163 | 61,786 |
Foreign earnings expected to be repatriated | 10,954 | 7,178 |
Other | 2,655 | 4,072 |
Deferred income tax liabilities | $ 316,873 | $ 313,482 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2012 | |
Income Taxes [Line Items] | ||||
Other assets, net | $ 804 | $ 1,166 | ||
Deferred income tax liabilities | $ 278,819 | 276,667 | ||
State tax credit carryforwards expiration year | 2,018 | |||
Foreign tax credit carryforwards expiration year | 2,020 | |||
Foreign tax credit carryforwards | $ 1,418 | 1,418 | ||
Expenses related to the acquisition | $ 24,564 | |||
Acquisition cost, value amortized | $ 15,876 | |||
Tax benefit to be realized | $ 5,918 | |||
Period to realize tax benefit | 15 years | |||
Cumulative undistributed earnings of foreign subsidiaries | 26,534 | |||
Unrecognized Tax Benefit That Would Impact Effective Tax Rate | 913 | 765 | ||
Accrued interest and penalties | 28 | $ 15 | ||
United Kingdom [Member] | ||||
Income Taxes [Line Items] | ||||
Net operating loss carryforwards | $ 4,609 | |||
Domestic [Member] | ||||
Income Taxes [Line Items] | ||||
Operating loss carryforwards acquisition expiration date | 2,019 | |||
Australia [Member] | ||||
Income Taxes [Line Items] | ||||
Net operating loss carryforwards | $ 824 | |||
Other Foreign Country [Member] | ||||
Income Taxes [Line Items] | ||||
Net operating loss carryforwards | 326 | |||
Germany [Member] | ||||
Income Taxes [Line Items] | ||||
Net operating loss carryforwards | $ 8,233 |
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, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Tax provision at U.S. statutory income tax rate | 35.00% | 35.00% | 35.00% |
State income tax, net of federal income tax | 2.50% | 5.70% | 2.50% |
Domestic production activities deduction | (1.00%) | (5.10%) | (1.90%) |
Deferred tax adjustments | 0.00% | 0.00% | (0.20%) |
Contingent consideration adjustment | (0.10%) | (6.00%) | 0.00% |
Transaction costs | 0.00% | 0.00% | (6.90%) |
Work Opportunity Tax Credit | (0.30%) | (3.20%) | (0.40%) |
Valuation allowances | 0.50% | 21.70% | 0.50% |
Foreign earnings | 2.30% | 9.10% | 4.90% |
U.S. - foreign rate differential | (2.40%) | (13.70%) | (3.40%) |
Other | 0.60% | (2.00%) | 0.90% |
Effective income tax rate | 37.10% | 41.50% | 31.00% |
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, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Balance as of beginning of period | $ 765 | $ 798 | $ 285 |
Increases related to current period tax positions | 444 | 130 | 763 |
Increases related to prior period tax positions | 339 | 0 | 0 |
Decrease related to settlements | (635) | (92) | (193) |
Decreases related to lapsing of statutes of limitations | (71) | (57) | |
Balance as of end of period | $ 913 | $ 765 | $ 798 |
Commitments, Contingencies an79
Commitments, Contingencies and Related Party Transactions - Additional Information (Detail) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Apr. 30, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Commitment And Contingencies [Line Items] | ||||
Lease expire year | 2,026 | |||
Rent expense | $ 235,790 | $ 225,543 | $ 216,572 | |
Product royalty expense | 43,914 | 45,710 | 42,679 | |
Annual management fee | $ 3,000 | |||
Annual management fee as percentage of adjusted EBITDA | 1.00% | |||
Management fee payment terms | Ten year | |||
Thomas H. Lee Partners, L.P. [Member] | ||||
Commitment And Contingencies [Line Items] | ||||
Annual management fee | 692 | 2,498 | ||
Advent International Corporation [Member] | ||||
Commitment And Contingencies [Line Items] | ||||
Annual management fee | $ 238 | $ 858 | ||
Thomas H. Lee Partners, L.P. and Advent International Corporation [Member] | ||||
Commitment And Contingencies [Line Items] | ||||
Management termination fee | $ 30,697 |
Commitments, Contingencies an80
Commitments, Contingencies and Related Party Transactions - Summary of Future Minimum Lease Payments Under All Operating Leases (Detail) $ in Thousands | Dec. 31, 2016USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,017 | $ 171,776 |
2,018 | 150,509 |
2,019 | 125,993 |
2,020 | 113,371 |
2,021 | 100,036 |
Thereafter | 301,024 |
Total Minimum Operating Lease Payments | $ 962,709 |
Commitments, Contingencies an81
Commitments, Contingencies and Related Party Transactions - Summary of Future Minimum Product Royalties (Detail) $ in Thousands | Dec. 31, 2016USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,017 | $ 29,833 |
2,018 | 16,199 |
2,019 | 6,106 |
2,020 | 5,550 |
2,021 | 0 |
Thereafter | 0 |
Total Future Minimum Royalty Payments | $ 57,688 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016USD ($)Segment | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Segment Reporting [Abstract] | |||
Number of business segments | Segment | 2 | ||
Export sales | $ | $ 23,631 | $ 22,803 | $ 22,023 |
Segment Information - Schedule
Segment Information - Schedule of Company's Industry Segment Data (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues: | |||||||||||
Net sales | $ 743,292 | $ 553,382 | $ 515,426 | $ 454,286 | $ 774,341 | $ 551,380 | $ 491,206 | $ 458,195 | $ 2,266,386 | $ 2,275,122 | $ 2,251,589 |
Royalties and franchise fees | 5,996 | 3,568 | 3,987 | 3,454 | 7,160 | 4,027 | 4,314 | 3,910 | 17,005 | 19,411 | 19,668 |
Total revenues | 2,283,391 | 2,294,533 | 2,271,257 | ||||||||
Income from operations | 159,130 | $ 36,918 | $ 58,480 | $ 19,556 | 170,668 | $ 31,480 | $ 46,067 | $ 24,004 | 274,084 | 272,219 | 243,142 |
Interest expense, net | 89,380 | 123,361 | 155,917 | ||||||||
Other (income) expense, net | (2,010) | 130,990 | 5,891 | ||||||||
Income before income taxes | 186,714 | 17,868 | 81,334 | ||||||||
Depreciation and amortization | 83,630 | 80,515 | 82,890 | ||||||||
Capital expenditures | 81,948 | 78,825 | 78,241 | ||||||||
Total assets | 3,393,978 | 3,292,403 | 3,393,978 | 3,292,403 | |||||||
Wholesale [Member] | |||||||||||
Revenues: | |||||||||||
Total revenues | 625,318 | 653,598 | 646,361 | ||||||||
Income from operations | 91,920 | 85,728 | 74,177 | ||||||||
Retail [Member] | |||||||||||
Revenues: | |||||||||||
Total revenues | 1,658,073 | 1,640,935 | 1,624,896 | ||||||||
Income from operations | 182,164 | 186,491 | 168,965 | ||||||||
Operating Segments [Member] | |||||||||||
Revenues: | |||||||||||
Net sales | 2,893,286 | 2,848,513 | 2,818,252 | ||||||||
Royalties and franchise fees | 17,005 | 19,411 | 19,668 | ||||||||
Total revenues | 2,910,291 | 2,867,924 | 2,837,920 | ||||||||
Operating Segments [Member] | Wholesale [Member] | |||||||||||
Revenues: | |||||||||||
Net sales | 1,252,218 | 1,226,989 | 1,213,024 | ||||||||
Royalties and franchise fees | 0 | 0 | 0 | ||||||||
Total revenues | 1,252,218 | 1,226,989 | 1,213,024 | ||||||||
Depreciation and amortization | 29,695 | 29,352 | 32,446 | ||||||||
Capital expenditures | 26,854 | 18,849 | 27,651 | ||||||||
Total assets | 1,004,599 | 864,698 | 1,004,599 | 864,698 | |||||||
Operating Segments [Member] | Retail [Member] | |||||||||||
Revenues: | |||||||||||
Net sales | 1,641,068 | 1,621,524 | 1,605,228 | ||||||||
Royalties and franchise fees | 17,005 | 19,411 | 19,668 | ||||||||
Total revenues | 1,658,073 | 1,640,935 | 1,624,896 | ||||||||
Depreciation and amortization | 53,935 | 51,163 | 50,444 | ||||||||
Capital expenditures | 55,094 | 59,976 | 50,590 | ||||||||
Total assets | $ 2,389,379 | $ 2,427,705 | 2,389,379 | 2,427,705 | |||||||
Eliminations [Member] | |||||||||||
Revenues: | |||||||||||
Total revenues | (626,900) | (573,391) | (566,663) | ||||||||
Eliminations [Member] | Wholesale [Member] | |||||||||||
Revenues: | |||||||||||
Total revenues | (626,900) | (573,391) | (566,663) | ||||||||
Eliminations [Member] | Retail [Member] | |||||||||||
Revenues: | |||||||||||
Total revenues | $ 0 | $ 0 | $ 0 |
Segment Information - Schedul84
Segment Information - Schedule of Company's Geographic Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues: | |||||||||||
Net sales to unaffiliated customers | $ 2,266,386 | $ 2,275,122 | $ 2,251,589 | ||||||||
Net sales between geographic areas | 0 | 0 | 0 | ||||||||
Net sales | $ 743,292 | $ 553,382 | $ 515,426 | $ 454,286 | $ 774,341 | $ 551,380 | $ 491,206 | $ 458,195 | 2,266,386 | 2,275,122 | 2,251,589 |
Royalties and franchise fees | 5,996 | 3,568 | 3,987 | 3,454 | 7,160 | 4,027 | 4,314 | 3,910 | 17,005 | 19,411 | 19,668 |
Total revenues | 2,283,391 | 2,294,533 | 2,271,257 | ||||||||
Income from operations | 159,130 | $ 36,918 | $ 58,480 | $ 19,556 | 170,668 | $ 31,480 | $ 46,067 | $ 24,004 | 274,084 | 272,219 | 243,142 |
Interest expense, net | 89,380 | 123,361 | 155,917 | ||||||||
Other (income) expense, net | (2,010) | 130,990 | 5,891 | ||||||||
Income before income taxes | 186,714 | 17,868 | 81,334 | ||||||||
Depreciation and amortization | 83,630 | 80,515 | 82,890 | ||||||||
Total long-lived assets (excluding goodwill, trade names and other intangible assets, net) | 297,406 | 282,104 | 297,406 | 282,104 | |||||||
Total assets | 3,393,978 | 3,292,403 | 3,393,978 | 3,292,403 | |||||||
Reportable Geographical Components [Member] | Domestic [Member] | |||||||||||
Revenues: | |||||||||||
Net sales to unaffiliated customers | 1,917,158 | 1,937,793 | 1,930,270 | ||||||||
Net sales between geographic areas | 51,916 | 47,752 | 44,903 | ||||||||
Net sales | 1,969,074 | 1,985,545 | 1,975,173 | ||||||||
Royalties and franchise fees | 17,005 | 19,411 | 19,668 | ||||||||
Total revenues | 1,986,079 | 2,004,956 | 1,994,841 | ||||||||
Income from operations | 257,774 | 267,209 | 236,495 | ||||||||
Depreciation and amortization | 77,176 | 74,849 | 77,445 | ||||||||
Total long-lived assets (excluding goodwill, trade names and other intangible assets, net) | 269,047 | 251,328 | 269,047 | 251,328 | |||||||
Total assets | 3,147,003 | 3,093,949 | 3,147,003 | 3,093,949 | |||||||
Reportable Geographical Components [Member] | Foreign [Member] | |||||||||||
Revenues: | |||||||||||
Net sales to unaffiliated customers | 349,228 | 337,329 | 321,319 | ||||||||
Net sales between geographic areas | 80,776 | 74,974 | 75,462 | ||||||||
Net sales | 430,004 | 412,303 | 396,781 | ||||||||
Royalties and franchise fees | 0 | 0 | 0 | ||||||||
Total revenues | 430,004 | 412,303 | 396,781 | ||||||||
Income from operations | 16,310 | 5,010 | 6,647 | ||||||||
Depreciation and amortization | 6,454 | 5,666 | 5,445 | ||||||||
Total long-lived assets (excluding goodwill, trade names and other intangible assets, net) | 28,359 | 30,776 | 28,359 | 30,776 | |||||||
Total assets | 246,975 | 198,454 | 246,975 | 198,454 | |||||||
Eliminations [Member] | |||||||||||
Revenues: | |||||||||||
Net sales to unaffiliated customers | 0 | 0 | 0 | ||||||||
Net sales between geographic areas | (132,692) | (122,726) | (120,365) | ||||||||
Net sales | (132,692) | (122,726) | (120,365) | ||||||||
Royalties and franchise fees | 0 | 0 | 0 | ||||||||
Total revenues | (132,692) | (122,726) | (120,365) | ||||||||
Income from operations | 0 | 0 | $ 0 | ||||||||
Total assets | $ 0 | $ 0 | $ 0 | $ 0 |
Quarterly Results (Unaudited) -
Quarterly Results (Unaudited) - Summary of Historical Revenues Gross Profit Income (Loss) From Operations (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues: | |||||||||||
Net sales | $ 743,292 | $ 553,382 | $ 515,426 | $ 454,286 | $ 774,341 | $ 551,380 | $ 491,206 | $ 458,195 | $ 2,266,386 | $ 2,275,122 | $ 2,251,589 |
Royalties and franchise fees | 5,996 | 3,568 | 3,987 | 3,454 | 7,160 | 4,027 | 4,314 | 3,910 | 17,005 | 19,411 | 19,668 |
Gross profit | 345,199 | 196,720 | 207,561 | 166,519 | 362,124 | 189,850 | 188,343 | 163,921 | |||
Income from operations | 159,130 | 36,918 | 58,480 | 19,556 | 170,668 | 31,480 | 46,067 | 24,004 | $ 274,084 | $ 272,219 | $ 243,142 |
Net (loss) income | $ 85,176 | $ 10,180 | $ 22,515 | $ (394) | $ 86,523 | $ (44,489) | $ (23,050) | $ (8,525) | |||
Net (loss) income per common share - Basic | $ 0.71 | $ 0.09 | $ 0.19 | $ 0 | $ 0.73 | $ (0.37) | $ (0.20) | $ (0.09) | $ 0.98 | $ 0.09 | $ 0.60 |
Net (loss) income per common share - Diluted | $ 0.71 | $ 0.08 | $ 0.19 | $ 0 | $ 0.72 | $ (0.37) | $ (0.20) | $ (0.09) | $ 0.98 | $ 0.09 | $ 0.59 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | $ 697 | $ 773 |
Derivative liabilities | 215 | 391 |
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 | 697 | 773 |
Derivative liabilities | 215 | 391 |
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 - Sum87
Fair Value Measurements - Summary of Carrying Amount and Fair Value (Detail) $ in Thousands | Dec. 31, 2016USD ($) |
Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument Carrying Amount | $ 344,544 |
Debt Instrument Fair Value | 366,625 |
Term Loan Credit Agreement [Member] | Secured Debt [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument Carrying Amount | 1,205,496 |
Debt Instrument Fair Value | $ 1,232,710 |
Derivative Financial Instrume88
Derivative Financial Instruments - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2016 | |
Derivative [Line Items] | |
Foreign currency exchange contracts reclassified date | 2018-06 |
Foreign Exchange Risk Management [Member] | |
Derivative [Line Items] | |
Hedging effectiveness | 100.00% |
Foreign Exchange Risk Management [Member] | Maximum [Member] | |
Derivative [Line Items] | |
Foreign exchange forward contracts maturity | 1 year |
Derivative Financial Instrume89
Derivative Financial Instruments - Schedule of Fair Values of Derivatives (Detail) - Foreign Exchange Contracts [Member] - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Prepaid Expenses and Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | $ 697 | $ 773 |
Accrued Expenses [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | $ 215 | $ 391 |
Derivative Financial Instrume90
Derivative Financial Instruments - Schedule of Notional Amounts of Derivatives (Detail) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Foreign Exchange Contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional amounts | $ 22,502,000 | $ 23,028,000 |
Changes in Accumulated Other 91
Changes in Accumulated Other Comprehensive (Loss) Income - Changes in Accumulated and Other Comprehensive (Loss) Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | $ (32,790) | $ (12,735) | $ 5,408 |
Other comprehensive (loss) income before reclassifications, net of income tax | (18,690) | (19,757) | (18,371) |
Amounts reclassified from accumulated other comprehensive income (loss) to the consolidated statement of operations and comprehensive income (loss), net of income tax | (759) | (298) | 228 |
Net current-period other comprehensive (loss) income | (19,449) | (20,055) | (18,143) |
Ending balance | (52,239) | (32,790) | (12,735) |
Foreign Currency Adjustments [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | (33,401) | (12,969) | 5,738 |
Other comprehensive (loss) income before reclassifications, net of income tax | (19,770) | (20,432) | (18,707) |
Amounts reclassified from accumulated other comprehensive income (loss) to the consolidated statement of operations and comprehensive income (loss), net of income tax | 0 | 0 | 0 |
Net current-period other comprehensive (loss) income | (19,770) | (20,432) | (18,707) |
Ending balance | (53,171) | (33,401) | (12,969) |
Impact of Foreign Exchange Contracts, Net of Taxes [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Beginning balance | 611 | 234 | (330) |
Other comprehensive (loss) income before reclassifications, net of income tax | 1,080 | 675 | 336 |
Amounts reclassified from accumulated other comprehensive income (loss) to the consolidated statement of operations and comprehensive income (loss), net of income tax | (759) | (298) | 228 |
Net current-period other comprehensive (loss) income | 321 | 377 | 564 |
Ending balance | $ 932 | $ 611 | $ 234 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - Subsequent Event [Member] | 1 Months Ended | |
Mar. 31, 2017USD ($)Franchised_Stores | Jan. 31, 2017USD ($)Franchised_Stores | |
Granmark [Member] | ||
Subsequent Event [Line Items] | ||
Business combination, acquisition percentage | 85.00% | |
Consideration paid for acquisition | $ 22,000,000 | |
Business combination, percentage of remaining interest | 15.00% | |
Granmark [Member] | Minimum [Member] | ||
Subsequent Event [Line Items] | ||
Business combination, period to acquire remaining interest | 3 years | |
Granmark [Member] | Maximum [Member] | ||
Subsequent Event [Line Items] | ||
Business combination, period to acquire remaining interest | 5 years | |
North Carolina and South Carolina [Member] | ||
Subsequent Event [Line Items] | ||
Number of franchise stores acquired | Franchised_Stores | 18 | |
Total consideration amount | $ 31,000,000 | |
Louisiana and Alabama [Member] | ||
Subsequent Event [Line Items] | ||
Number of franchise stores acquired | Franchised_Stores | 18 | |
Total consideration amount | $ 15,000,000 |
Schedule I - Condensed Financ93
Schedule I - Condensed Financial Information of Registrant - Condensed Balance Sheets (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
ASSETS | ||||
Other assets (principally investment in and amounts due from wholly-owned subsidiaries) | $ 4,502 | $ 9,684 | ||
Total assets | 3,393,978 | 3,292,403 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
Total liabilities | 2,377,189 | 2,379,386 | ||
Commitments and contingencies | ||||
Stockholders' equity: | ||||
Common stock ($0.01 par value; 119,515,894 and 119,258,374 shares issued and outstanding at December 31, 2016 and December 31, 2015, respectively) | 1,195 | 1,193 | ||
Additional paid-in capital | 910,167 | 904,425 | ||
Retained earnings | 157,666 | 40,189 | ||
Accumulated other comprehensive loss | (52,239) | (32,790) | $ (12,735) | $ 5,408 |
Total stockholders' equity | 1,016,789 | 913,017 | $ 487,226 | $ 456,757 |
Total liabilities and stockholders' equity | 3,393,978 | 3,292,403 | ||
Party City Holdco Inc. [Member] | ||||
ASSETS | ||||
Other assets (principally investment in and amounts due from wholly-owned subsidiaries) | 1,016,789 | 913,017 | ||
Total assets | 1,016,789 | 913,017 | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||
Total liabilities | 0 | 0 | ||
Commitments and contingencies | ||||
Stockholders' equity: | ||||
Common stock ($0.01 par value; 119,515,894 and 119,258,374 shares issued and outstanding at December 31, 2016 and December 31, 2015, respectively) | 1,195 | 1,193 | ||
Additional paid-in capital | 910,167 | 904,425 | ||
Retained earnings | 157,666 | 40,189 | ||
Accumulated other comprehensive loss | (52,239) | (32,790) | ||
Total stockholders' equity | 1,016,789 | 913,017 | ||
Total liabilities and stockholders' equity | $ 1,016,789 | $ 913,017 |
Schedule I - Condensed Financ94
Schedule I - Condensed Financial Information of Registrant - Condensed Balance Sheets (Parenthetical) (Detail) - $ / shares | Dec. 31, 2016 | Dec. 31, 2015 |
Condensed Financial Statements, Captions [Line Items] | ||
Common stock, par value | $ 0.01 | |
Common stock, shares issued | 119,515,894 | 119,258,374 |
Common stock, shares outstanding | 119,515,894 | 119,258,374 |
Party City Holdco Inc. [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares issued | 119,515,894 | 119,258,374 |
Common stock, shares outstanding | 119,515,894 | 119,258,374 |
Schedule I - Condensed Financ95
Schedule I - Condensed Financial Information of Registrant - Condensed Statements of Income and Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Condensed Income Statements, Captions [Line Items] | |||
Income tax benefit | $ (69,237) | $ (7,409) | $ (25,211) |
Net income | 117,477 | 10,459 | 56,123 |
Other comprehensive loss | (19,449) | (20,055) | (18,143) |
Comprehensive income (loss) | 98,028 | (9,596) | 37,980 |
Party City Holdco Inc. [Member] | |||
Condensed Income Statements, Captions [Line Items] | |||
Income tax benefit | 0 | 0 | 5,918 |
Equity in net income of subsidiaries | 117,477 | 10,459 | 50,205 |
Net income | 117,477 | 10,459 | 56,123 |
Other comprehensive loss | (19,449) | (20,055) | (18,143) |
Comprehensive income (loss) | $ 98,028 | $ (9,596) | $ 37,980 |
Schedule I - Condensed Financ96
Schedule I - Condensed Financial Information of Registrant - Condensed Statements of Cash Flows (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows used in operating activities: | |||
Net income | $ 117,477 | $ 10,459 | $ 56,123 |
Adjustments to reconcile net income to net cash used in operating activities: | |||
Change in due to/from affiliates and income taxes payable | 86,893 | (78,293) | 30,035 |
Cash flows provided by financing activities: | |||
Issuance of common stock | 0 | 397,159 | 0 |
Exercise of stock options | 1,373 | 30 | 1,080 |
Net change in cash and cash equivalents | 21,691 | (4,295) | 21,569 |
Cash and cash equivalents at beginning of period | 42,919 | 47,214 | 25,645 |
Cash and cash equivalents at end of period | 64,610 | 42,919 | 47,214 |
Party City Holdco Inc. [Member] | |||
Cash flows used in operating activities: | |||
Net income | 117,477 | 10,459 | 56,123 |
Adjustments to reconcile net income to net cash used in operating activities: | |||
Equity in net income of subsidiaries | (117,477) | (10,459) | (50,205) |
Change in due to/from affiliates and income taxes payable | (1,373) | (397,189) | (6,998) |
Net cash (used in) operating activities | (1,373) | (397,189) | (1,080) |
Cash flows provided by financing activities: | |||
Issuance of common stock | 0 | 397,159 | 0 |
Exercise of stock options | 1,373 | 30 | 1,080 |
Net cash provided by financing activities | 1,373 | 397,189 | 1,080 |
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, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
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, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Allowance for Doubtful Accounts [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Beginning Balance | $ 2,343 | $ 2,889 | $ 1,362 |
Write-Offs | 441 | 769 | 256 |
Additions | 781 | 223 | 1,783 |
Ending Balance | 2,683 | 2,343 | 2,889 |
Sales Returns and Allowances [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Beginning Balance | 655 | 526 | 326 |
Write-Offs | 80,317 | 78,219 | 83,750 |
Additions | 80,128 | 78,348 | 83,950 |
Ending Balance | $ 466 | $ 655 | $ 526 |