Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Mar. 01, 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 | ELF | ||
Entity Registrant Name | e.l.f. Beauty, Inc. | ||
Entity Central Index Key | 1,600,033 | ||
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 | Non-accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 45,655,937 | ||
Entity Public Float | $ 0 |
Consolidated balance sheets
Consolidated balance sheets - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash | $ 15,295 | $ 14,004 |
Accounts receivable, net | 37,825 | 22,475 |
Inventories | 69,397 | 31,261 |
Prepaid expenses and other current assets | 2,387 | 2,978 |
Total current assets | 124,904 | 70,718 |
Property and equipment, net | 17,151 | 9,854 |
Intangible assets, net | 113,003 | 121,282 |
Goodwill | 157,264 | 157,264 |
Other assets | 2,407 | 1,954 |
Total assets | 414,729 | 361,072 |
Current liabilities: | ||
Current portion of long-term debt and capital lease obligations | 8,650 | 10,325 |
Accounts payable | 37,944 | 11,114 |
Accrued expenses and other current liabilities | 33,676 | 13,713 |
Foreign currency forward contracts | 10,702 | |
Total current liabilities | 80,270 | 45,854 |
Long-term debt and capital lease obligations | 156,177 | 134,594 |
Deferred tax liabilities | 34,212 | 42,126 |
Other long-term liabilities | 3,208 | 1,601 |
Total liabilities | 273,867 | 224,175 |
Commitments and contingencies (Note 10) | ||
Convertible preferred stock, par value of $0.01 per share; 200,000 shares authorized and 135,041 shares issued and outstanding as of December 31, 2015; liquidation preference of $197,295 as of December 31, 2015; no shares authorized, issued or outstanding as of December 31, 2016 | 197,295 | |
Stockholders' equity (deficit): | ||
Preferred stock, par value of $0.01 per share; no shares authorized, issued or outstanding as of December 31, 2015; 30,000,000 shares authorized as of December 31, 2016; no shares issued and outstanding as of December 31, 2016 | ||
Common stock, par value of $0.01 per share; 13,800,000 and 250,000,000 shares authorized as of December 31, 2015 and December 31, 2016, respectively; 34,493 and 45,276,137 shares issued and outstanding as of December 31, 2015 and December 31, 2016, respectively | 438 | |
Additional paid-in capital | 700,871 | 6,785 |
Accumulated deficit | (560,447) | (67,183) |
Total stockholders' equity (deficit) | 140,862 | (60,398) |
Total liabilities, convertible preferred stock and stockholders' equity (deficit) | $ 414,729 | $ 361,072 |
Consolidated balance sheets (Pa
Consolidated balance sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 30,000,000 | 0 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 250,000,000 | 13,800,000 |
Common stock, shares issued | 45,276,137 | 34,493 |
Common stock, shares outstanding | 45,276,137 | 34,493 |
Convertible Preferred Stock | ||
Convertible preferred stock, par value | $ 0.01 | $ 0.01 |
Convertible preferred stock, shares authorized | 0 | 200,000 |
Convertible preferred stock, shares issued | 0 | 135,041 |
Convertible preferred stock, shares outstanding | 0 | 135,041 |
Convertible preferred stock, Liquidation Preference | $ 197,295 |
Consolidated statements of oper
Consolidated statements of operations and comprehensive income (loss) - USD ($) $ in Thousands | 1 Months Ended | 11 Months Ended | 12 Months Ended | |
Jan. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net sales | $ 135,134 | $ 229,567 | $ 191,413 | |
Cost of sales | 73,684 | 97,332 | 91,084 | |
Gross profit | 61,450 | 132,235 | 100,329 | |
Selling, general, and administrative expenses | 56,103 | 109,156 | 74,758 | |
Operating income | 5,347 | 23,079 | 25,571 | |
Other income (expense), net | (6,633) | 3,016 | (4,172) | |
Interest expense, net | (11,545) | (16,283) | (12,721) | |
Income (loss) before provision for income taxes | (12,831) | 9,812 | 8,678 | |
Income tax benefit (provision) | 3,545 | (4,499) | (4,321) | |
Net income (loss) | (9,286) | 5,313 | 4,357 | |
Comprehensive income (loss) | $ (9,286) | $ 5,313 | $ 4,357 | |
Net income (loss) per share (Note 16): | ||||
Basic | $ (709.35) | $ (39.47) | $ (1,559.81) | |
Diluted | $ (709.35) | $ (39.47) | $ (1,559.81) | |
Weighted average shares outstanding (Note 16): | ||||
Basic | 27,593 | 12,606,529 | 30,523 | |
Diluted | 27,593 | 12,606,529 | 30,523 | |
Predecessor | ||||
Net sales | $ 9,810 | |||
Cost of sales | 5,038 | |||
Gross profit | 4,772 | |||
Selling, general, and administrative expenses | 3,045 | |||
Operating income | 1,727 | |||
Other income (expense), net | 36 | |||
Interest expense, net | (128) | |||
Income (loss) before provision for income taxes | 1,635 | |||
Income tax benefit (provision) | (542) | |||
Net income (loss) | 1,093 | |||
Comprehensive income (loss) | $ 1,093 | |||
Net income (loss) per share (Note 16): | ||||
Basic | $ 1,093 | |||
Diluted | $ 1,087.56 | |||
Weighted average shares outstanding (Note 16): | ||||
Basic | 1,000 | |||
Diluted | 1,005 |
Consolidated statements of conv
Consolidated statements of convertible preferred stock and stockholders' equity (deficit) - USD ($) $ in Thousands | Total | Convertible Preferred Stock | Common stock | Employee note receivable | Additional paid-in capital | Retained earnings |
Beginning balance (Predecessor) at Dec. 31, 2013 | $ 11,581 | $ (3,928) | $ 15,509 | |||
Beginning balance (in shares) (Predecessor) at Dec. 31, 2013 | 1,000 | |||||
Beginning balance (in shares) (Predecessor) at Dec. 31, 2013 | 1,000 | |||||
Net income (loss) | Predecessor | 1,093 | 1,093 | ||||
Ending balance (Predecessor) at Jan. 31, 2014 | 12,674 | (3,928) | 16,602 | |||
Ending balance (in shares) (Predecessor) at Jan. 31, 2014 | 1,000 | |||||
Ending balance (in shares) (Predecessor) at Jan. 31, 2014 | 1,000 | |||||
Net income (loss) | (9,286) | (9,286) | ||||
Issuance of common stock for JACUS acquisition | 100 | 100 | ||||
Issuance of common stock for JACUS acquisition (in shares) | 27,593 | |||||
Issuance of preferred stock | $ 135,041 | |||||
Issuance of preferred stock (in shares) | 135,041 | |||||
Convertible preferred stock accretion | (10,287) | (10,287) | ||||
Convertible preferred stock accretion | 10,287 | $ 10,287 | ||||
Compensation expense paid to seller | 5,380 | 5,380 | ||||
Stock-based compensation | 287 | 287 | ||||
Ending balance at Dec. 31, 2014 | (13,806) | 5,767 | (19,573) | |||
Ending balance at Dec. 31, 2014 | $ 145,328 | |||||
Ending balance (in shares) at Dec. 31, 2014 | 27,593 | |||||
Ending balance (in shares) at Dec. 31, 2014 | 135,041 | |||||
Net income (loss) | 4,357 | 4,357 | ||||
Convertible preferred stock accretion | (51,967) | (51,967) | ||||
Convertible preferred stock accretion | 51,967 | $ 51,967 | ||||
Compensation expense paid to seller | 489 | 489 | ||||
Stock-based compensation | 503 | 503 | ||||
Exercise of stock options | 25 | 25 | ||||
Exercise of stock options (in shares) | 6,900 | |||||
Ending balance at Dec. 31, 2015 | (60,398) | 6,785 | (67,183) | |||
Ending balance at Dec. 31, 2015 | 197,295 | $ 197,295 | ||||
Ending balance (in shares) at Dec. 31, 2015 | 34,493 | |||||
Ending balance (in shares) at Dec. 31, 2015 | 135,041 | |||||
Net income (loss) | 5,313 | 5,313 | ||||
Convertible preferred stock accretion | (436,317) | (436,317) | ||||
Convertible preferred stock accretion | 436,300 | $ 436,317 | ||||
Stock-based compensation | 7,149 | 7,149 | ||||
Dividend paid | (72,060) | (9,801) | (62,259) | |||
Issuance of employee note receivable | (11,932) | $ (11,932) | ||||
Accrued interest on employee note receivable | (39) | 39 | ||||
Repayment of employee note receivable | 11,971 | $ 11,971 | ||||
Conversion of preferred stock | 633,612 | $ (633,612) | $ 372 | 633,240 | ||
Conversion of preferred stock (in shares) | (135,041) | 37,271,375 | ||||
Issuance of common stock upon initial public offering | 63,240 | $ 40 | 63,200 | |||
Issuance of common stock upon initial public offering (in shares) | 4,000,000 | |||||
Vesting of early exercised stock options | 7,859 | $ 22 | 7,837 | |||
Vesting of early exercised stock options (in shares) | 2,169,003 | |||||
Exercise of stock options | 831 | $ 3 | 828 | |||
Exercise of stock options (in shares) | 278,440 | |||||
Deferred offering costs | (8,406) | (8,406) | ||||
Ending balance at Dec. 31, 2016 | $ 140,862 | $ 438 | $ 700,871 | $ (560,447) | ||
Ending balance (in shares) at Dec. 31, 2016 | 43,753,311 | |||||
Ending balance (in shares) at Dec. 31, 2016 | 0 |
Consolidated statements of cash
Consolidated statements of cash flows - USD ($) $ in Thousands | 1 Months Ended | 11 Months Ended | 12 Months Ended | |
Jan. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities: | ||||
Net income (loss) | $ (9,286) | $ 5,313 | $ 4,357 | |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||
Amortization of intangible assets | 7,552 | 8,279 | 8,246 | |
Depreciation of property and equipment | 392 | 4,873 | 2,043 | |
Stock-based compensation expense | 287 | 7,149 | 503 | |
Amortization of debt issuance costs and discount on debt | 994 | 1,281 | 1,070 | |
Deferred income taxes | (4,276) | (7,575) | (3,933) | |
Loss on extinguishment of debt | 2,736 | |||
Loss on disposal of fixed assets | 71 | 260 | 571 | |
Compensation expense paid to seller | 5,380 | 489 | ||
Loss/(gain) on foreign currency forward contracts | 5,961 | (10,702) | 4,741 | |
Other, net | 341 | (13) | 23 | |
Changes in operating assets and liabilities: | ||||
Accounts receivable | (10,980) | (15,392) | 4,448 | |
Inventories | (4,752) | (37,994) | (2,147) | |
Prepaid expenses and other assets | (2,146) | (635) | 943 | |
Accounts payable and accrued expenses | 1,904 | 43,144 | 3,532 | |
Other liabilities | 232 | 1,396 | 787 | |
Due to related parties | (89) | (1,154) | ||
Net cash provided by (used in) operating activities | (8,415) | 2,120 | 24,519 | |
Cash flows from investing activities: | ||||
Acquisition, net of cash acquired | $ (237,900) | (237,891) | ||
Purchase of property and equipment | (1,597) | (9,223) | (10,142) | |
Proceeds from sale of property and equipment | 84 | |||
Acquisition of intangible assets | (100) | |||
Net cash used in investing activities | (239,488) | (9,139) | (10,242) | |
Cash flows from financing activities: | ||||
Proceeds from revolving line of credit | 145,000 | 15,250 | 5,500 | 27,150 |
Repayment of revolving line of credit | (5,600) | (13,200) | (29,100) | |
Proceeds from long term debt | 145,000 | 172,749 | ||
Repayment of long term debt | (1,969) | (151,540) | (2,625) | |
Cash received from issuance of common stock | 100 | 64,071 | 25 | |
Cash received from issuance of preferred stock | 105,041 | |||
Deferred offering costs paid | (7,821) | (391) | ||
Proceeds from repayment of employee note receivable | 7,912 | |||
Dividend paid | (68,000) | |||
Debt issuance costs paid | (5,251) | (704) | ||
Other, net | (657) | |||
Net cash provided by (used in) financing activities | 252,571 | 8,310 | (4,941) | |
Net increase in cash | 4,668 | 1,291 | 9,336 | |
Cash - beginning of period | 14,004 | 4,668 | ||
Cash - end of period | 4,668 | 15,295 | 14,004 | |
Supplemental disclosure of cash flow information: | ||||
Cash paid for interest | 10,544 | 12,170 | 11,617 | |
Cash paid for income taxes | 3,948 | 8,466 | 7,790 | |
Supplemental disclosure of noncash investing and financing activities: | ||||
Accretion of preferred stock to maximum redemption value | 10,287 | 436,317 | 51,967 | |
Deferred offering costs included in accounts payable and accrued expenses | 193 | 829 | ||
Property and equipment acquired under capital leases | 3,000 | |||
Property and equipment purchases included in accounts payable and accrued expenses | 491 | $ 200 | ||
Vesting of shares related to early exercise of common stock options | 7,859 | |||
Note receivable issued to finance early exercise of common stock | (11,971) | |||
Net repayment of note receivable with dividend proceeds | $ 4,060 | |||
Predecessor | ||||
Cash flows from operating activities: | ||||
Net income (loss) | 1,093 | |||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||||
Amortization of intangible assets | 11 | |||
Depreciation of property and equipment | 30 | |||
Amortization of debt issuance costs and discount on debt | 15 | |||
Deferred income taxes | 1,967 | |||
Changes in operating assets and liabilities: | ||||
Accounts receivable | 5,492 | |||
Inventories | (1,455) | |||
Prepaid expenses and other assets | (237) | |||
Accounts payable and accrued expenses | (6,032) | |||
Other liabilities | 2 | |||
Due to related parties | 22 | |||
Net cash provided by (used in) operating activities | 908 | |||
Cash flows from investing activities: | ||||
Purchase of property and equipment | (19) | |||
Net cash used in investing activities | (19) | |||
Cash flows from financing activities: | ||||
Net increase in cash | 889 | |||
Cash - beginning of period | 6,934 | $ 7,823 | ||
Cash - end of period | $ 7,823 |
Nature of Operations
Nature of Operations | 12 Months Ended |
Dec. 31, 2016 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Nature of operations | Note 1—Nature of operations e.l.f. Beauty, Inc. and subsidiaries (the “Company,” “Successor,” “we,” “us,” “its” and “our”) was formed as a Delaware corporation on December 20, 2013 under the name J.A. Cosmetics Holdings, Inc. In April 2016, the Company changed its name to e.l.f. Beauty, Inc. The Company conducts business under the name e.l.f. Cosmetics, and offers high-quality, prestige-inspired beauty products for eyes, lips and face to consumers through its retail customers, e.l.f. stores and e-commerce channels. On September 19, 2016, the Company amended and restated its certificate of incorporation to effect a 2.76:1 forward stock split of the Company’s common stock, increase the number of shares of common stock authorized for issuance to 250.0 million, provide for conversion of preferred stock into common stock prior to its initial public offering and at a ratio that has been adjusted to reflect the effects of the stock split and to address a variety of other corporate governance matters. There was no change in the par value of the Company’s common stock. All common shares, stock options and per share information presented in the financial statements have been adjusted to reflect the stock split on a retroactive basis for all periods presented. Recapitalization In conjunction with the Company’s acquisition of e.l.f. Cosmetics, Inc. on January 31, 2014, described further in Note 2, the Company entered into a five-year, senior secured credit agreement (as amended, the “2014 Senior Secured Credit Facility”) with a syndicate consisting of several large financial institutions. The 2014 Senior Secured Credit Facility originally consisted of a $20.0 million revolving line of credit (the “2014 Revolving Credit Facility”) and a $105.0 million term loan facility (the “2014 Term Loan Facility”). Concurrent with the Company’s entry into the 2014 Senior Secured Credit Facility, and as amended in conjunction with the special dividend declared on June 7, 2016 as described below, the Company entered into a second lien credit agreement (as amended, the “Second Lien Credit Facility”) that provided a $40.0 million second lien term loan (the “Second Lien Term Loan”). On June 7, 2016, the Company incurred an incremental $64.0 million in term loan borrowings under the 2014 Senior Secured Credit Facility to fund, in part, the payment of a $72.0 million special dividend to stockholders, and increased the total availability under the 2014 Revolving Credit Facility to $25.0 million. In connection with the incremental borrowings, certain covenants were amended to reflect the increased leverage. All common stockholders, including individuals that received shares of restricted common stock in connection with the early exercise of certain unvested stock options, received a dividend of $1.79 per share. The $4.1 million dividend paid to restricted common stockholders was immediately used to pay down outstanding notes receivable from such common stockholders pursuant to the underlying recourse note agreements. Accordingly, the net cash outflow related to the dividend was $68.0 million. Finally, in connection with the special dividend, the Company modified all stock options outstanding and reduced the exercise price by $1.79 per share in order to protect the option holders from dilution that would have otherwise resulted from the dividend recapitalization transaction. This constituted a modification in accordance with Accounting Standards Codification ("ASC") 718, Compensation-stock compensation Initial public offering On September 27, 2016, the Company completed the initial public offering of 9,583,333 shares of its common stock, including the underwriters’ exercise of their overallotment option, at an initial offering price to the public of $17.00 per share, for aggregate gross proceeds of $162.9 million. The Company received net proceeds of $54.9 million, after deducting underwriting discounts and commissions and other offering expenses, including offering expenses paid prior to the initial public offering. The Company did not receive any proceeds from the sale of 5,583,333 shares of its common stock by the existing stockholders in the initial public offering. As part of the initial public offering, the outstanding shares of the Company’s convertible preferred stock were converted into an aggregate of 37,271,375 shares of common stock. The shares offered and sold in the initial public offering were registered under the Securities Act of 1933, as amended, pursuant to the Company’s Registration Statement on Form S-1 (Registration No. 333-213333), which was declared effective by the Securities and Exchange Commission on September 21, 2016. The common stock began trading on the New York Stock Exchange on September 22, 2016 under the symbol "ELF." |
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 Basis of presentation On January 31, 2014, the Company acquired 100% of the outstanding shares of capital stock of e.l.f. Cosmetics, Inc. and its subsidiaries (the “Predecessor,” formerly known as J.A. Cosmetics, Inc., or “JACUS”), a developer and marketer of branded value-priced cosmetics, from J.A. Cosmetics Corporation, TSG5 L.P., a private equity fund, and its co-investors (together, the “Sellers”) (the “Acquisition”). The Acquisition was accounted for as a business combination in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 805, Business Combinations (“ASC 805”), and the resulting new basis of accounting is reflected in the Company’s consolidated financial statements for all periods beginning on or after January 31, 2014. As a result, financial information of the Predecessor and Successor periods have been prepared under two different bases of accounting and therefore are not comparable. The accompanying consolidated financial statements of the Company include all the accounts of e.l.f. Beauty, Inc. and its subsidiaries for periods designated as “Successor” and relate to periods after the Acquisition. The Company had no operations from December 20, 2013 to the date of the Acquisition. The period from January 1, 2014 through January 31, 2014 relates to the period prior to the Acquisition, includes all the accounts of e.l.f. Cosmetics, Inc. and its subsidiaries, and is referred to herein as the “Predecessor 2014 Period.” The period from February 1, 2014 through December 31, 2014 is referred to as the “Successor 2014 Period.” The consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and all intercompany balances and transactions have been eliminated in consolidation. Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. Cash and cash equivalents Cash and cash equivalents include all cash balances and highly liquid investments purchased with maturities of three months or less. Accounts receivable Trade receivables consist of uncollateralized, non-interest bearing customer obligations from transactions with retail customers, reduced by an allowance for doubtful accounts for estimated losses resulting from the inability of customers to make payments. The allowance is based on the evaluation and aging of past due balances, specific exposures, historical trends and economic conditions. The Company writes off accounts receivable against the allowance when a balance is determined to be uncollectible. Recoveries of receivables previously written off are recorded when received. As of December 31, 2015 and 2016, the Company recorded an allowance for doubtful accounts of $40,000 and $0.1 million, respectively. The Company recorded a sales allowance of $3.9 million and $11.9 million as of December 31, 2015 and 2016, respectively, which is also presented as a reduction to accounts receivable. The Company grants credit terms in the normal course of business to its customers. Trade credit is extended based upon an evaluation of each customer’s ability to perform its payment obligations. Concentrations of credit risk Financial instruments, which potentially subject the Company to concentrations of credit risk, consist principally of cash and cash equivalents, foreign currency forward contracts and trade receivables. Although the Company deposits its cash with creditworthy financial institutions, its deposits, at times, may exceed federally insured limits. To date, the Company has not experienced any losses on its cash deposits. Foreign currency forward contracts are transacted with creditworthy financial institutions, and no collateral is required. The Company performs credit evaluations of its customers, and the risk with respect to trade receivables is further mitigated by the short duration of customer payment terms and the pedigree of the customer base. During the Predecessor 2014 Period, the Successor 2014 Period, and the year ended December 31, 2016, two customers individually accounted for greater than 10% of the Company’s revenue. During the year ended December 31, 2015, three customers individually accounted for greater than 10% of the Company’s revenue, as disclosed below: Predecessor Successor Period from Period from January 1, 2014 February 1, 2014 through through Year ended December 31, January 31, 2014 December 31, 2014 2015 2016 Customer A 30 % 30 % 28 % 28 % Customer B 17 % 19 % 23 % 30 % Customer C * * 10 % * * Customer comprised less than 10% of net revenue in the period. Two customers individually accounted for greater than 10% of the Company’s accounts receivable at the end of the periods presented: December 31, 2015 December 31, 2016 Customer A 35 % 42 % Customer B 21 % 23 % Inventory Inventory, consisting principally of finished goods, is stated at the lower of cost or market. Cost is principally determined by the first-in, first-out method. A provision is recorded to adjust inventory to its estimated realizable value when inventory is determined to be in excess of anticipated demand. In the Predecessor 2014 Period, the Successor 2014 Period, and the years ended December 31, 2015 and 2016, the Company incurred insignificant inventory write-downs. Property and equipment Property and equipment is stated at cost and is depreciated on a straight-line basis 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 useful lives of the assets. Repairs and maintenance expenditures are expensed as incurred. Useful lives by major asset class are as follows: Estimated useful lives Machinery, equipment and software 3-5 years Leasehold improvements 5 years Furniture and fixtures 2-5 years Store fixtures 2-3 years The Company evaluates events and changes in circumstances that could indicate carrying amounts of long-lived assets, including property and equipment, may not be recoverable. When such events or changes in circumstances occur, the Company assesses the recoverability of long-lived assets by determining whether or not the carrying value of such assets will be recovered through undiscounted future cash flows derived from their use and eventual disposition. If the sum of the undiscounted future cash flows is less than the carrying amount of an asset, the Company records an impairment loss for the amount by which the carrying amount of the assets exceeds its fair value. There were no impairment charges recorded in the Predecessor 2014 Period, the Successor 2014 Period or the years ended December 31, 2015 or 2016. Goodwill and intangible assets Goodwill represents the excess purchase price for the Acquisition over the fair value of the net assets acquired. As part of the Acquisition, the Company also acquired finite-lived intangible assets (customer relationships and favorable leases) and an indefinite-lived intangible asset (trademark). Goodwill is not amortized but rather is reviewed annually for impairment, at the reporting unit level, or when there is evidence that events or changes in circumstances indicate that the Company’s carrying amount may not be recovered. When testing goodwill for impairment, the Company first performs an assessment of qualitative factors. If qualitative factors indicate that it is more likely than not that the fair value of the relevant reporting unit is less than its carrying amount, the Company tests goodwill for impairment at the reporting unit level using a two-step approach. In step one, the Company determines if the fair value of the reporting unit exceeds the unit’s carrying value. If step one indicates that the fair value of the reporting unit is less than its carrying value, the Company performs step two, determining the fair value of goodwill and, if the carrying value of goodwill exceeds its implied fair value, an impairment charge is recorded. Historically the Company had a single reporting unit for the purpose of performing its goodwill impairment test. During the third quarter of 2015, the Company made structural and reporting changes to its internal organization. This reorganization aligned the internal management and functional support around the Company’s primary sales channels which report into the chief operating decision maker. These changes resulted in the identification of three reporting units that met the definition in ASC 350, Intangibles—Goodwill and Other, of components of the Company’s one operating segment: (i) retail customers, (ii) e.l.f. stores, and (iii) e-commerce. In accordance with ASC 350, on October 1, 2015, the Company reallocated the goodwill to the three reporting units using a relative fair value approach. As a result of the internal reorganization, the Company also performed a goodwill impairment test both immediately before and after this change in reporting units and concluded that no impairment existed. Indefinite-lived intangible assets are not amortized but rather are tested for impairment annually, and impairment is recognized if the carrying amount exceeds the fair value of the intangible asset. The remaining useful life of the indefinite-lived intangible asset is evaluated each reporting period, and when the useful life is no longer considered to be indefinite, the intangible asset is amortized over its remaining useful life on a straight-line basis. Amortization of intangible assets with finite useful lives is computed on a straight-line basis over periods of three to 10 years. The determination of the estimated period of benefit is dependent upon the use and underlying characteristics of the intangible asset. The Company evaluates the recoverability of its intangible assets subject to amortization when facts and circumstances indicate that the carrying value of the asset may not be recoverable. If the carrying value of an intangible asset is not recoverable, impairment loss is measured as the amount by which the carrying value exceeds its estimated fair value. Deferred initial public offering costs Deferred offering costs, which primarily consist of direct incremental legal and accounting fees relating to the initial public offering, were capitalized and $8.4 million such costs were offset against proceeds from our initial public offering in September 2016. As of December 31, 2015, $1.2 million of offering costs were deferred in other assets on the consolidated balance sheets. No deferred offering costs were capitalized as of December 31, 2016. Debt issuance costs Debt issuance costs and lender fees were incurred for arranging the credit facilities from various financial institutions. For credit facilities consisting of both term and revolving debt, such costs are allocated to each sub-facility based upon the total borrowing capacity. For term debt, issuance costs are presented within the related long-term debt liability on the consolidated balance sheet and lender fees are presented as a direct deduction from the carrying amount. Both debt issuance costs and lender fees are amortized over the term of the related debt using the effective interest rate method. For revolving debt, issuance costs and lender fees are presented as a noncurrent asset and amortized over the term of the related debt on a straight-line basis. Fair value of financial instruments The carrying amounts of cash and cash equivalents, accounts receivable, and accounts payable and accrued expenses approximate their fair values due to the short-term nature of these items. The carrying amounts reported for bank debt approximate their fair values as the stated interest rates approximate market rates currently available to the Company for loans with similar terms. See Note 7—Fair value of financial instruments. Segment reporting Operating segments are components of an enterprise for which separate financial information is available that is evaluated by the chief operating decision maker in deciding how to allocate resources and in assessing performance. Utilizing these criteria, the Company manages its business on the basis of one operating segment and one reportable segment. It is impracticable for the Company to provide revenue by product line. During the Predecessor 2014 Period, the Successor 2014 Period and the years ended December 31, 2015 and 2016, net sales in the United States and outside of the United States were as follows (in thousands): Predecessor Successor Period from Period from January 1, 2014 February 1, 2014 through through Year ended December 31, January 31, 2014 December 31, 2014 2015 2016 U.S. $ 9,334 $ 122,317 $ 178,817 $ 210,236 International 476 12,817 12,596 19,331 Total net sales $ 9,810 $ 135,134 $ 191,413 $ 229,567 As of December 31, 2015 and December 31, 2016, the Company had long-lived assets in the United States and outside of the United States as follows (in thousands): December 31, 2015 December 31, 2016 U.S. $ 9,230 $ 16,757 International 624 394 Total long-lived assets $ 9,854 $ 17,151 Revenue recognition Revenue consists of sales of cosmetics through retail customers, e.l.f. stores and e-commerce channels. Sales are recognized when persuasive evidence of an arrangement exists, the product has shipped, title has passed, all risks and rewards of ownership have transferred, the sales price is fixed or determinable and collectability is reasonably assured. Delivery is considered to have occurred at the time the title and risk of loss passes to the customer. For sales to retail customers, delivery is considered to have occurred at the time of shipment or the time of delivery depending upon the specific terms of the customer arrangement. For sales to e-commerce consumers, delivery is considered to have occurred at the time of delivery of merchandise to the customer. Revenue from sales to consumers through e.l.f. stores is recognized at the time of purchase. Revenue recognized through e.l.f. store and e-commerce sales channels is recognized net of any taxes that are collected from consumers and subsequently remitted to governmental authorities, such as sales, use and value added taxes. Provision for sales discounts, product returns, markdowns, shortages and price adjustments are recorded as revenue reductions. These revenue reductions are established by the Company based upon management’s best estimates at the time of sale. The Company regularly reviews and revises, when deemed necessary, its estimates of sales returns and other required reserves based primarily upon the historical rate of actual product returns and the duration of time between the original sale and return. These revenue reductions are reflected on the consolidated balance sheet as a sales allowance against accounts receivable. A reconciliation of the beginning and ending amounts of sales allowances for the Predecessor 2014 Period, the Successor 2014 Period and the years ended December 31, 2015 and 2016 is as follows (in thousands): Balance as of January 1, 2014 (Predecessor) $ 2,411 Charges 306 Deductions (1,092 ) Balance as of January 31, 2014 (Predecessor) 1,625 Charges 6,408 Deductions (6,068 ) Balance as of December 31, 2014 (Successor) 1,965 Charges 13,903 Deductions (12,002 ) Balance as of December 31, 2015 (Successor) 3,866 Charges 24,427 Deductions (16,366 ) Balance as of December 31, 2016 (Successor) $ 11,927 In the Predecessor 2014 Period, the Successor 2014 Period, and the years ended December 31, 2015 and 2016, the Company recorded $0.5 million, $4.0 million, $3.6 million and $1.4 million, respectively, of reimbursed shipping expenses from customers within revenues. The shipping and handling costs associated with product distribution were $0.9 million, $8.3 million, $12.6 million and $20.4 million in the Predecessor 2014 Period, the Successor 2014 Period and the years ended December 31, 2015 and 2016, respectively, and are included in selling, general and administrative expenses in the consolidated statements of operations. Income taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. Future income tax benefits are recognized to the extent that realization of such benefits is more likely than not. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in its income tax provision. Leases The Company leases office space, warehouse and retail store locations, equipment and software. At the inception of each lease, the Company determines its classification as an operating or capital lease. Assets held under capital leases are included in property and equipment. Operating leases are expensed on a straight-line basis over the life of the lease, beginning on the date the Company takes possession of the leased asset. Certain leases provide for rent abatements or scheduled increases in base rent. Rent expense is recognized on a straight-line basis over the lease term, which results in deferred rent payable being recognized on the consolidated balance sheet. As part of its lease agreements, the Company may receive construction allowances from landlords for tenant improvements. These leasehold improvements made by the Company are capitalized and amortized over the shorter of the lease term or five years. The construction allowances are recorded as deferred rent and amortized on a straight-line basis over the lease term as a reduction of rent expense. Foreign currency The functional currency of the Company’s foreign subsidiaries is the U.S. dollar. Transactions denominated in currencies other than the functional currency are recorded at exchange rates in effect on the date of the transaction. At the end of each reporting period, monetary assets and liabilities are remeasured to the functional currency using exchange rates in effect at the balance sheet date. Non-monetary assets and liabilities are remeasured at historical exchange rates. Transaction gains or losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in other income (expense), net in the consolidated statements of operations. Derivative instruments The Company is exposed to foreign exchange risk as it has contracts with suppliers in China for future purchases of inventories denominated in the Chinese renminbi (“RMB”). The Company has previously used derivative instruments, specifically forward contracts, to mitigate the impact of foreign currency fluctuations on a portion of its forecasted foreign currency exposures. These contracts are carried at their fair value either as an asset or liability on the consolidated balance sheet. The Company’s derivative contracts are not designated as hedge instruments, and changes in fair value of derivatives are recorded in other income (expense), net in the consolidated statements of operations. The Company does not enter into derivative contracts for speculative or trading purposes. Stock-based compensation Stock-based compensation cost is measured at the grant date, based on the fair value of the award, and is recognized on a straight-line basis over the requisite service period, which is generally the award’s vesting period. The Company estimates the fair value of employee stock-based payment awards subject to only a service condition on the date of grant using the Black-Scholes valuation model. The Black-Scholes model requires the use of highly subjective and complex assumptions, including the option’s expected term and the price volatility of the underlying stock. The Company estimates the fair value of employee stock-based payment awards subject to both a market condition and the occurrence of a performance condition on the date of grant using a Monte Carlo simulation model that assumes the performance criteria will be met and the target payout levels will be achieved. Compensation expense for employee stock-based awards whose vesting is subject to the fulfillment of both a market condition and the occurrence of a performance condition is recognized on a graded-vesting basis at the time the achievement of the performance condition becomes probable. Forfeitures were previously estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differed from those estimates. The Company early adopted ASU 2016-09 and beginning January 1, 2016, accounts for forfeitures as they occur. The Company recorded a cumulative-effect adjustment to retained earnings, which was not material, upon early adoption. Advertising costs Advertising costs, including promotions and print, are expensed as incurred or distributed. Advertising costs are included in selling, general, and administrative expenses in the accompanying consolidated statements of operations and amounted to approximately $0.2 million, $2.5 million, $3.9 million and $5.6 million in the Predecessor 2014 Period, the Successor 2014 Period, and the years ended December 31, 2015 and 2016, respectively. Net income (loss) per common share Basic net income (loss) per common share is computed using net income (loss) available to common stockholders divided by the weighted-average number of common shares outstanding during the period. Diluted net income (loss) per share reflects the dilutive effects of stock options and restricted stock units outstanding during the period, to the extent such securities would not be anti-dilutive. During 2016, the Company issued unvested restricted stock in connection with the early exercise of certain employee stock options, as described in Note 13. Such restricted stock includes the right to receive non-forfeitable dividends or dividend equivalents and are considered participating securities, which require the Company to compute two-class EPS in periods of net income. Calculations of EPS under the two-class method exclude from the numerator any dividends paid or owed on participating securities and any undistributed earnings considered to be attributable to participating securities. The related participating securities are similarly excluded from the denominator. Recent accounting pronouncements The following table provides a brief description of recent accounting pronouncements that could have a material effect on the Company’s financial statements: Standard Description Date of expected adoption/adoption Effect on the financial statements or other significant matters Standards that are not yet adopted ASU 2014-09, Revenue from Contracts with Customers (Topic 606) The standard will replace existing revenue recognition standards and significantly expand the disclosure requirements for revenue arrangements. It may be adopted either retrospectively or on a modified retrospective basis to new contracts and existing contracts with remaining performance obligations as of the effective date. January 1, 2018 The Company expects the standard to impact the methods used to reserve for discounts, refunds and other customer incentives, which may impact the timing of revenue recognition. The Company is currently evaluating the alternative methods of adoption, as well as other possible impacts of the adoption of this standard on its consolidated financial statements. ASU 2015-14 , Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date In August 2015, the FASB issued ASU 2015-14, which deferred the effective date from annual periods beginning on or after December 15, 2016 to annual periods beginning on or after December 15, 2017. ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing ASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedient ASU 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers In March, April, May and December 2016, the FASB issued ASU 2016-08, ASU 2016-10, ASU 2016-12 and ASU 2016-20, respectively. These standards provide supplemental adoption guidance and clarification to ASU 2014-09, and must be adopted concurrently with the adoption of ASU 2014-09. ASU 2016-02, Leases (Topic 842) The standard will require lessees to recognize a right-of-use asset and a lease liability for virtually all of their leases (other than leases that meet the definition of a short-term lease). The liability will be equal to the present value of lease payments. The asset will be based on the liability, subject to adjustment, such as for initial direct costs. Lessor accounting is similar to the current model, but updated to align with certain changes to the lessee model (e.g., certain definitions, such as initial direct costs, have been updated) and the new revenue recognition standard. It requires a modified retrospective approach for all leases existing at, or entered into after, the date of initial application. January 1, 2019 The Company is currently evaluating the effect of the standard on its financial statements and related disclosures. Standards that were adopted ASU 2014-12, Compensation—Stock Compensation (Topic 718): 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 standard will require that a performance target in a share-based payment award that affects vesting and that can be achieved after the requisite service period is completed to be accounted for as a performance condition. Compensation cost would be recognized in the period in which it becomes probable that the performance target will be achieved, and the amount of compensation cost recognized should be based on the portion of the service period fulfilled. The standard may be adopted either prospectively or retrospectively as of the effective date. January 1, 2016 The Company prospectively adopted this standard in the first quarter of 2016. The standard had no effect on the Company’s consolidated financial statements, as its historical practice complied with the new requirements. ASU 2016-09, Improvements to Employee Share-Based Payment Accounting The standard simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. January 1, 2016 The Company early adopted this standard in the first quarter of 2016. The amendments were applied on a modified retrospective basis, except for amendments requiring recognition of excess tax benefits and deficiencies in the income statement, which was applied prospectively. The standard did not have a material effect on the Company’s consolidated financial statements. ASU 2016-15, Classification of certain cash receipts and cash payments The standard provides specific guidance intended to reduce diversity in practice around eight cash flow statement classification issues. July 1, 2016 The Company early adopted this standard in the third quarter of 2016. The amendments were applied on a retrospective basis. The standard did not have any effect on the Company’s consolidated financial statements. |
Acquisition of e.l.f. Cosmetics
Acquisition of e.l.f. Cosmetics, Inc. and subsidiaries | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Acquisition of e.l.f. Cosmetics, Inc. and subsidiaries | Note 3—Acquisition of e.l.f. Cosmetics, Inc. and subsidiaries On January 31, 2014 (the “Acquisition Date”), the Company acquired 100% of the outstanding shares of capital stock of e.l.f. Cosmetics, Inc. from the Sellers. e.l.f. Cosmetics, Inc. serves as the operating entity of the Company and was incorporated in the State of Delaware in November 2010. The total purchase price was $271.0 million consisting of $239.1 million in cash ($237.9 million net of cash acquired), the issuance of 29,978 shares of the Company’s convertible preferred stock and 6,126 shares of its common stock with an aggregate fair value of $30.0 million, and contingent consideration of $1.9 million related to certain pre-Acquisition tax benefits payable to the Sellers. As of December 31, 2016, $1.9 million of the tax benefit payable to the Sellers remained unpaid. To fund the cash portion of the Acquisition, the Company raised, in aggregate, $250.0 million, of which $145.0 million was drawn down from two credit facilities and $105.0 million was contributed by TPG Growth II Management, LLC (“TPG”) (through TPG Elf Holdings, LP, a wholly-owned subsidiary of TPG, and co-investors) and various other parties including certain executives of the Company and several of the credit facility lenders, in exchange for 105,063 shares of the Company’s convertible preferred stock and 21,467 shares of common stock. In connection with the arrangement of the credit facilities, the Company incurred, in aggregate, $5.3 million in deferred financing costs. Refer to Note 9 for further discussion of credit facilities. Purchase price allocation The Company has accounted for the Acquisition as a business combination in accordance with ASC 805, whereby the purchase price paid to effect the Acquisition was allocated to tangible assets acquired, liabilities assumed and identifiable intangible assets acquired based on their estimated fair values with the excess of the purchase consideration over the aggregate fair values recorded as goodwill. The value of goodwill was 58% of the total purchase consideration and is primarily attributable to the assembled workforce and expected future growth. The goodwill is not deductible for tax purposes. The Acquisition provided the Company with three intangible assets: (i) customer relationships with useful lives ranging from three to 10 years, (ii) favorable leases with useful lives ranging from 27 to 71 months and (iii) an indefinite-lived trademark (See Note 4—Goodwill and other intangible assets). The customer relationships asset represents the value resulting from the Company’s relationships with its retail customers and e-commerce consumers. The favorable leases asset represents the value associated with the leasehold interests associated with the Company’s office and warehouse locations in New York and New Jersey. The trademark asset represents the value resulting from the popularity and recognition of the e.l.f. Cosmetics brand. The fair values of the acquired customer relationships were based on the excess earnings method and are subject to amortization on a straight-line basis over their remaining useful lives. The fair values of the acquired favorable leases were based on the difference between the actual lease rates and the-then current market rent for similar properties in those locations. The fair value of the acquired trademark was based on the relief from royalty method. In addition, the Acquisition resulted in a fair market adjustment to acquired inventory of $1.3 million, the fair value of which was based on the expected selling price less disposal costs and a reasonable profit margin. The Company incurred $2.8 million in Acquisition-related costs, which were expensed and included within selling, general and administrative expenses in the Successor 2014 Period. The following table summarizes the consideration paid and the fair values of the assets acquired and liabilities assumed at the Acquisition Date (in thousands): Amount Tangible assets acquired $ 51,755 Intangible asset—customer relationships, retailers 68,800 Intangible asset—customer relationships, e-commerce 3,800 Intangible asset—trademark 63,800 Intangible asset—favorable leases 580 Goodwill 157,264 Liabilities assumed (74,990 ) Fair value of total purchase consideration $ 271,009 Unaudited pro forma financial information In accordance with ASC 805, the following unaudited pro forma financial information presents the combined results of continuing operations for the year ended December 31, 2014, as if the Acquisition had been completed on January 1, 2014 (in thousands). Unaudited pro forma financial information is not required to be presented for the year ended December 31, 2015 as the actual combined results of the Acquisition are already reflected in the consolidated financial statements for this period. The unaudited pro forma results do not reflect any operating efficiencies or potential cost savings that may result from the consolidation of operations. The unaudited pro forma financial information should not be relied upon as necessarily being indicative of the historical results that would have been obtained if the Acquisition had actually occurred on that date or the results that will be obtained in the future. Year ended December 31, 2014 Net sales $ 144,944 Net loss (9,778 ) |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and other intangible assets | Note 4—Goodwill and other intangible assets Information regarding the Company’s goodwill and intangible assets as of December 31, 2015 is as follows (in thousands): Estimated useful life Gross carrying amount Accumulated amortization Net carrying amount Customer relationships – retailers 10 years $ 68,800 $ (13,187 ) $ 55,613 Customer relationships – e-commerce 3 years 3,900 (2,436 ) 1,464 Favorable leases, net Varies 580 (175 ) 405 Total finite-lived intangibles 73,280 (15,798 ) 57,482 Trademarks Indefinite 63,800 - 63,800 Goodwill 157,264 - 157,264 Total goodwill and other intangibles $ 294,344 $ (15,798 ) $ 278,546 Information regarding the Company’s goodwill and intangible assets as of December 31, 2016 is as follows (in thousands): Estimated useful life Gross carrying amount Accumulated amortization Net carrying amount Customer relationships – retailers 10 years $ 68,800 $ (20,067 ) $ 48,733 Customer relationships – e-commerce 3 years 3,900 (3,736 ) 164 Favorable leases, net Varies 580 (274 ) 306 Total finite-lived intangibles 73,280 (24,077 ) 49,203 Trademarks Indefinite 63,800 - 63,800 Goodwill 157,264 - 157,264 Total goodwill and other intangibles $ 294,344 $ (24,077 ) $ 270,267 The Company has not recognized any impairment charges on its goodwill or intangible assets. Amortization expense on the finite-lived intangible assets amounted to $11,000, $7.6 million, $8.2 million and $8.3 million in the Predecessor 2014 Period, the Successor 2014 Period, and the years ended December, 31 2015 and 2016, respectively. As a result of the Acquisition, the $0.7 million carrying value of the Predecessor’s goodwill as of January 31, 2014, was eliminated and new goodwill was recorded by the Successor on February 1, 2014. In addition, the Predecessor’s $0.6 million in historical finite-lived intangible assets was stepped-up to fair value at the time of the Acquisition. The Predecessor did not recognize any impairment charges during the Predecessor 2014 Period. The estimated future amortization expense related to the finite-lived intangible assets, assuming no impairment as of December 31, 2016, is as follows (in thousands): Year ending December 31, 2017 $ 7,121 2018 7,007 2019 6,982 2020 6,880 Thereafter 21,213 Total $ 49,203 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2016 | |
Property Plant And Equipment [Abstract] | |
Property and equipment | Note 5—Property and equipment Property and equipment as of December 31, 2015 and 2016 consists of the following (in thousands): December 31, 2015 December 31, 2016 Machinery, equipment and software $ 1,322 $ 3,956 Leasehold improvements 1,880 7,620 Furniture and fixtures 625 2,771 Store fixtures 8,147 8,921 Property and equipment, gross 11,974 23,268 Less: Accumulated depreciation and amortization (2,120 ) (6,117 ) Property and equipment, net $ 9,854 $ 17,151 Depreciation and amortization expense on property and equipment were $30,000, $0.4 million, $2.0 million and $4.9 million in the Predecessor 2014 Period, the Successor 2014 Period and the years ended December 31, 2015 and 2016, respectively. |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 12 Months Ended |
Dec. 31, 2016 | |
Payables And Accruals [Abstract] | |
Accrued expenses and other current liabilities | Note 6—Accrued expenses and other current liabilities Accrued expenses as of December 31, 2015 and 2016 consists of the following (in thousands): December 31, 2015 December 31, 2016 Accrued expenses $ 2,681 $ 9,537 Other current liabilities 4,752 9,249 Accrued compensation 6,280 7,111 Early exercised option deposit liability - 4,074 Income taxes payable - 3,705 Accrued expenses and other current liabilities $ 13,713 $ 33,676 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair value measurements | Note 7—Fair value of financial instruments The fair value of foreign currency forward contracts and bank debt are categorized based upon the level of judgment associated with the inputs used to measure their fair values. Fair value is measured using inputs from the three levels of the fair value hierarchy, which are described as follows: Level 1 —Quoted prices in active markets for identical assets or liabilities Level 2 —Quoted prices for similar assets and liabilities in active markets or inputs that are observable Level 3 —Inputs that are unobservable (for example, cash flow modeling inputs based on management’s assumptions) The assets’ or liabilities’ fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The Company’s Level 2 instruments consist of foreign currency forward contracts for which fair values were based on market prices obtained from independent brokers or determined using quantitative models that use as their basis readily observable market parameters that are actively quoted and can be validated through external sources, including third-party pricing services, brokers and market transactions. The following table sets forth the fair value of the Company’s financial liabilities by level within the fair value hierarchy as of December 31, 2015 (in thousands): Fair value measurements using Fair value Level 1 Level 2 Level 3 Financial liabilities: Foreign currency forward contracts $ 10,702 $ - $ 10,702 $ - Long-term debt, including current portion (1) 148,106 - 148,106 - Total financial liabilities $ 158,808 $ - $ 158,808 $ - (1) Of this amount, $10,325 is classified as current. The gross carrying amounts of the Company’s bank debt, before reduction of the debt issuance costs, approximate their fair values as the stated rates approximate market rates for loans with similar terms. The following table sets forth the fair value of the Company’s financial liabilities by level within the fair value hierarchy as of December 31, 2016 (in thousands): Fair value measurements using Fair value Level 1 Level 2 Level 3 Financial liabilities: Foreign currency forward contracts $ - $ - $ - $ - Long-term debt, including current portion (1) 165,393 - 165,393 - Total financial liabilities $ 165,393 $ - $ 165,393 $ - (1) Of this amount, $8,650 is classified as current. The gross carrying amounts of the Company’s bank debt, before reduction of the debt issuance costs, approximate their fair values as the stated rates approximate market rates for loans with similar terms. The Company did not transfer any assets measured at fair value on a recurring basis to or from Level 2 for any of the periods presented. |
Derivatives
Derivatives | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivatives | Note 8—Derivatives The Company has previously used forward contracts to economically hedge the impact of the variability in exchange rates on contracts with its suppliers in China for future purchases of inventories denominated in RMB. The Company does not designate any of the forward contracts as hedges and does not apply hedge accounting. All forward contracts are recorded at fair value on the consolidated balance sheet. In the Predecessor 2014 Period, the Successor 2014 Period, and the years ended December 31, 2015 and 2016, realized and unrealized gains (losses) of ($0.1 million), ($6.9 million), ($7.9 million) and $1.1 million, respectively, from the Company’s forward contracts were recognized in other income (expense), net in the consolidated statements of operations and comprehensive income (loss). The Company generally does not hedge the net assets of its international subsidiaries. As of December 31, 2015 and December 31, 2016, the aggregate notional amount of the Company’s outstanding forward contracts was as follows (in thousands): Derivatives not designated as hedging instruments December 31, 2015 December 31, 2016 Foreign currency contracts $ 148,978 $ - The Company’s derivative transactions are governed by ISDA Master Agreements, which include provisions governing the setoff of assets and liabilities between the parties. When the Company has more than one outstanding derivative transaction with a single counterparty, the setoff provisions contained within these agreements generally allow the non-defaulting party the right to reduce its liability to the defaulting party by amounts eligible for setoff as well as eligible offsetting transactions with that counterparty, irrespective of the currency, place of payment or booking office. The Company’s policy is to present its derivative assets and derivative liabilities on the consolidated balance sheets on a net basis. Net amount Gross amounts recognized in the offset in the As of December 31, 2015 consolidated consolidated (in thousands) balance sheets balance sheets Gross amount Liabilities: Foreign currency contracts $ 10,702 $ - $ 10,702 Total liabilities $ 10,702 $ - $ 10,702 There were no forward contracts outstanding as of December 31, 2016. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Debt | Note 9—Debt The following summarizes the recent significant transactions impacting the Company’s indebtedness: • In connection with the Acquisition on January 31, 2014, as discussed in Note 2, the Company entered into the 2014 Senior Secured Credit Facility, which consisted of a $20.0 million revolving line of credit and a $105.0 million term loan. Also on January 31, 2014, the Company entered into the $40.0 million Second Lien Term Loan. The interest rate on both the revolving credit facility and the term loan under the 2014 Senior Secured Credit Facility was 6.25% per annum as of December 31, 2015. The interest rate on the Second Lien Term Loan was 11% per annum as of December 31, 2015. • On June 7, 2016, the Company incurred an incremental $64.0 million in term loan borrowings under the 2014 Senior Secured Credit Facility to fund, in part, a $72.0 million special dividend to stockholders, and increased the total availability under the revolving credit facility to $25.0 million. • On September 27, 2016, the Company used a portion of the proceeds from the initial public offering to repay the entire outstanding balance of $40.0 million from the Second Lien Term Loan. • On December 23, 2016, the Company refinanced its outstanding obligations under the 2014 Senior Secured Credit Facility, entering into a new 5-year, $200.0 million senior secured credit facility (the “Senior Secured Credit Facility”), as further described below. The Company’s outstanding debt as of December 31, 2015 and 2016 consists of the following (in thousands): December 31, 2015 December 31, 2016 Debt: Revolving credit facility $ 7,700 $ - Term loan 100,406 162,627 Second lien term loan 40,000 - Capital lease obligations - 2,766 Total debt 148,106 165,393 Less: debt issuance costs (3,187 ) (566 ) Total debt, net of issuance costs 144,919 164,827 Less: current portion (10,325 ) (8,650 ) Long-term portion of debt $ 134,594 $ 156,177 Senior secured credit facility On December 23, 2016, the Company entered into a new five-year, $200.0 million senior secured credit facility with a syndicate consisting of several large financial institutions. The facility consists of a $35.0 million revolving line of credit (the “Revolving Credit Facility”) and a $165.0 million term loan (the “Term Loan Facility”). All amounts under the Revolving Credit Facility are available for draw until the maturity date on December 23, 2021. The Revolving Credit Facility is collateralized by substantially all of the Company’s assets and requires payment of an unused fee ranging from 0.35% to 0.25% (depending on the Company’s consolidated total net leverage ratio) times the average daily amount of unutilized commitments under the Revolving Credit Facility. The Revolving Credit Facility also provides for sub-facilities in the form of a $7.0 million letter of credit and a $5.0 million swing line loan; however, all amounts under the Revolving Credit Facility cannot exceed $35.0 million. The unused balance of the Revolving Credit Facility as of December 31, 2016 was $34.5 million. The Term Loan Facility maturity date is also December 23, 2021, and is collateralized by substantially all of the Company’s assets. Amortization installment payments on the Term Loan Facility are required to be made in quarterly installments of (i) $2,062,500 for fiscal quarters ending March 31, 2017 through December 31, 2018, (ii) $2,475,000 for fiscal quarters ending March 31, 2019 through December 31, 2019, (iii) $3,093,750 for fiscal quarters ending March 31, 2020 through December 31, 2020 and (iv) $4,125,000 for fiscal quarters ending March 31, 2021 through September 30, 2021. The remaining Term Loan Facility balance is due upon the maturity date. The Term Loan Facility can be prepaid at any time without penalty and is subject to mandatory prepayments when there is (i) excess cash flow, which is defined as EBITDA less certain customary deductions, (ii) non-ordinary course asset dispositions that result in net proceeds in excess of $2.5 million during a year, unless reinvested within twelve months, or (iii) issuance of additional debt. Both the Revolving Credit Facility and the Term Loan Facility bear interest, at the Company’s option, at a rate per annum equal to either (i) the greater of (x) 3.00% and (y) an adjusted LIBOR rate determined by reference to the cost of funds for U.S. dollar deposits for the applicable interest period plus an applicable margin ranging from 2.00% to 3.50% based on the Company’s consolidated total net leverage ratio or (ii) the greater of (x) 2.00% and (y) a floating base rate plus an applicable margin ranging from 1.00% to 2.50% based on the Company’s consolidated total net leverage ratio. The interest rate on both the Revolving Credit Facility and the Term Loan was 4.5% per annum as of December 31, 2016. The Company incurred costs directly related to the Senior Secured Credit Facility of $2.3 million, consisting primarily of lender fees of $2.1 million and third-party fees of $0.2 million. These fees were allocated between the Revolving Credit Facility and the Term Loan Facility, with the portion attributable to the Term Loan Facility recorded as a reduction of the carrying amount of the debt and the portion attributable to the Revolving Credit Facility recorded as a noncurrent asset. The Senior Secured Credit Facility contains a number of covenants that, among other things, restrict the Company’s ability to (subject to certain exceptions) pay dividends and distributions or repurchase its capital stock, incur additional indebtedness, create liens on assets, engage in mergers or consolidations and sell or otherwise dispose of assets. The Senior Secured Credit Facility also includes reporting, financial and maintenance covenants that require the Company to, among other things, comply with certain consolidated total net leverage ratios and consolidated fixed charge coverage ratios. As of December 31, 2015 and 2016, the Company was in compliance with all financial covenants. Aggregate future minimum principal payments on the Term Loan are as follows (in thousands): Year ending December 31, 2017 $ 8,250 2018 8,250 2019 9,900 2020 12,375 Thereafter 126,225 Total $ 165,000 Interest expense and extinguishment of debt In September 2016, the Company used a portion of the proceeds from the initial public offering to repay the entire outstanding balance of the Second Lien Term Loan. In connection with this extinguishment of debt, the Company incurred a $0.4 million prepayment penalty and wrote off $0.5 million in unamortized debt issuance costs attributable to the Second Lien Term Loan. Additionally, as described above, in December 2016, the Company entered into a new Senior Secured Credit Facility and a portion of the debt outstanding under the 2014 Senior Secured Credit Facility was considered extinguished. In connection with this extinguishment of debt, the Company wrote off $1.7 million in unamortized debt discount and debt issuance costs, as well as approximately $0.1 million in other fees associated with the refinancing transaction. For the portion of the 2014 Senior Secured Credit Facility that was not considered extinguished, approximately $0.7 million in unamortized debt discount and $0.8 million in unamortized debt issuance costs remain on the balance sheet and are being amortized over the 5-year term of the new Senior Secured Credit Facility. The components of interest expense are as follows (in thousands): Predecessor Successor Period from Period from January 1, 2014 February 1, 2014 through through Year ended December 31, January 31, 2014 December 31, 2014 2015 2016 Interest of term loan debt $ 126 $ 10,192 $ 10,988 $ 12,076 Amortization of debt issuance costs - 993 1,101 1,281 Loss on extinguishment of debt - - - 2,736 Interest on revolving line of credit 2 369 700 190 Other - (9 ) (68 ) - Interest expense, net $ 128 $ 11,545 $ 12,721 $ 16,283 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and contingencies | Note 10—Commitments and contingencies Operating leases The Company leases office, retail and warehouse space in New York, New Jersey, California and China from third parties under non-cancelable operating leases that provide for minimum base annual rental payments (excluding taxes and other charges). A number of the Company’s store leases provide for contingent rentals based upon sales. Contingent rent amounts have historically not been significant. The leases expire between 2018 and 2026. Total rent expense was $0.1 million, $1.9 million, $3.0 million and $4.1 million for the Predecessor 2014 Period, the Successor 2014 Period, and the years ended December 31, 2015 and 2016, respectively. Future minimum lease payments under the operating leases are as follows (in thousands): Year ending December 31, 2017 $ 4,789 2018 4,726 2019 4,636 2020 4,188 Thereafter 13,397 Total 31,736 In November 2016, the Company vacated a previously leased office facility and has entered into a sublease agreement with a related party for that space. The estimated future sublease income as of December 31, 2016 is $0.9 million and has been recorded as a reduction to the accrual of all remaining lease operating lease payments recognized on the date the previous facility was vacated. Litigation From time to time, the Company may become involved in legal proceedings, claims, and litigation arising in the ordinary course of business. Management is not currently aware of any matters that it expects will have a material adverse effect on the Company’s consolidated financial position, results of operations or cash flows. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 11—Income taxes The components of income (loss) before income taxes are as follows (in thousands): Predecessor Successor Period from Period from January 1, 2014 February 1, 2014 through through Year ended December 31, January 31, 2014 December 31, 2014 2015 2016 Domestic $ 1,709 $ (13,517 ) $ 8,053 $ 9,677 Foreign (74 ) 686 625 135 Total $ 1,635 $ (12,831 ) $ 8,678 $ 9,812 The components of the (provision) benefit for income taxes are as follows (in thousands): Predecessor Successor Period from Period from January 1, 2014 February 1, 2014 through through Year ended December 31, January 31, 2014 December 31, 2014 2015 2016 Current: U.S. federal $ 1,394 $ (363 ) $ (6,837 ) $ (9,978 ) State (5 ) (111 ) (1,026 ) (2,096 ) Foreign 18 (257 ) (391 ) - Total current 1,407 (731 ) (8,254 ) (12,074 ) Deferred: U.S. federal (1,881 ) 3,881 3,710 8,384 State (68 ) 324 201 (773 ) Foreign - 71 22 (36 ) Total deferred (1,949 ) 4,276 3,933 7,575 Total (provision) benefit for income taxes $ (542 ) $ 3,545 $ (4,321 ) $ (4,499 ) The following table presents a reconciliation of the federal statutory rate to the Company’s effective tax rate: Predecessor Successor Period from Period from January 1, 2014 February 1, 2014 through through Year ended December 31, January 31, 2014 December 31, 2014 2015 2016 Federal statutory rate 34.0 % 34.0 % 35.0 % 35.0 % State tax-net of federal benefit 1.7 % 1.7 % 2.2 % 0.7 % State tax deferred rate change 0.0 % 0.0 % 0.3 % 18.7 % Impact of foreign operations 0.4 % 1.0 % (0.2 %) 0.1 % U.S. subpart F income 0.0 % (2.2 %) 2.5 % 0.5 % Nondeductible transaction-related costs 0.0 % (6.5 %) 0.0 % 2.0 % Uncertain tax positions 0.0 % (0.2 %) 5.3 % 2.0 % Stock based compensation 0.0 % 0.0 % 0.6 % (16.8 %) Others (3.0 %) (0.2 %) 4.1 % 3.7 % Effective tax rate 33.1 % 27.6 % 49.8 % 45.9 % The components of net deferred taxes arising from temporary differences are as follows (in thousands): December 31, 2015 December 31, 2016 Deferred tax assets: Compensation $ 1,969 $ 1,848 Inventories and receivables 1,604 6,905 Accrued expenses 2,120 1,996 Stock compensation 238 1,967 Net operating losses - 232 Other 446 1,304 Deferred tax assets 6,377 14,252 Deferred tax liabilities: Goodwill 1,614 2,562 Fixed assets 1,620 2,699 Intangible assets 44,493 42,587 Other 514 579 Deferred tax liabilities 48,241 48,427 Net deferred tax liabilities $ 41,864 $ 34,175 The deferred tax assets and liabilities within the same jurisdiction are reported net in the accompanying balance sheets as follows (in thousands): December 31, 2015 December 31, 2016 Noncurrent deferred tax assets $ 262 $ 37 Noncurrent deferred tax liabilities 42,126 34,212 Net deferred tax liabilities $ 41,864 $ 34,175 At December 31, 2016, the Company had gross foreign net operating loss carryforwards of $0.9 million. The foreign net operating loss carryforwards will begin to expire in 2020 and have a carryforward period of five years. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands): Predecessor Successor Period from Period from January 1, 2014 February 1, 2014 through through Year ended December 31, January 31, 2014 December 31, 2014 2015 2016 Balance at beginning of year $ 581 $ 581 $ 607 $ 1,256 Increases for prior year tax positions - - 1 438 Increases for current year tax positions - 26 648 103 Decreases for prior year tax positions - - - (589 ) Decreases due to settlements - - - - Decreases due to statutes lapsing - - - - Balance at end of year $ 581 $ 607 $ 1,256 $ 1,208 If all of the Company’s unrecognized tax benefits as of December 31, 2015 and December 31, 2016 were recognized, $1.0 million and $0.7 million of unrecognized tax benefits, respectively, would impact the effective tax rate. The Company believes it is reasonably possible that $0.5 million of unrecognized tax benefits may reverse in the next twelve months. The Company recognizes interest and penalties accrued related to unrecognized tax benefits in the provision for income taxes. The Company had $31,000 and $0.2 million of accrued gross interest and penalties as of December 31, 2015 and December 31, 2016, respectively. The Company recognized net interest expense of $20,000 and $0.1 million for the years ended December 31, 2015 and 2016, respectively. The Company did not recognize any net interest expense during the Predecessor 2014 Period and the Successor 2014 Period. The Company files income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. As of December 31, 2016, with few exceptions, the Company or its subsidiaries are no longer subject to examination prior to tax year 2013. Certain state returns are currently under audit by the state tax authorities. The Company does not expect the results of these audits to have a material impact on the consolidated financial statements. |
Preferred Stock
Preferred Stock | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Preferred Stock | Note 12—Preferred stock The Company has authorized 30,000,000 shares of preferred stock for issuance with a par value of $0.01 per share. There were no shares of preferred stock outstanding as of December 31, 2015 or December 31, 2016. In conjunction with the Acquisition, 135,041 shares of convertible preferred stock were issued for a total consideration of approximately $135.0 million. These shares remained outstanding as of December 31, 2015 and were converted to 37,271,375 shares of common stock immediately prior to the initial public offering. Prior to conversion, the Company’s convertible preferred stock was classified as temporary equity in the accompanying consolidated balance sheets in accordance with ASC 480, Distinguishing Liabilities from Equity, as the convertible preferred stock was redeemable at the option of the holder and was also redeemable, if not converted to common stock, at the time of an initial public offering. In conjunction with this classification, the Company has accreted the carrying value of the convertible preferred stock to reflect its maximum redemption amount as of December 31, 2015 and through the date of conversion. The maximum redemption amount is the greater of the convertible preferred stock liquidation value (including dividends) or the as-converted value based on the common stock per share price. For the Successor 2014 Period, the Company accreted $10.3 million, which represents dividends at the rate of 8% per annum. For the years ended December 31, 2015 and 2016, the Company accreted $52.0 million and $436.3 million, respectively, which reflect increases in the as-converted value. The accreted value was reclassified from temporary equity to additional paid-in capital upon conversion and the Company accounted for the accretion of convertible preferred stock as a reduction from amounts available for distribution to common stockholders. |
Stock-based Compensation
Stock-based Compensation | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock-based compensation | Note 13—Stock-based compensation Stock plans The Company grants stock-based awards under its 2016 Equity Incentive Award Plan (the “2016 Plan”), which replaced its 2014 Equity Incentive Plan (the “2014 Plan”) and became effective immediately prior to the effectiveness of the Company’s registration statement on Form S-1. Immediately prior to the initial public offering, the 2014 Plan terminated and no further awards will be granted thereunder. The 2016 Plan permits the grant of incentive stock options, non-statutory stock options, restricted stock and other stock- or cash-based awards to employees, officers, directors, advisors and consultants. The 2016 Plan allows for option grants of the Company’s common stock based on service, performance and market conditions. A total of 9,460,556 shares were reserved for grant and 607,276 shares remained available for future issuance under the 2014 Plan as of December 31, 2015. There were no shares reserved for grant or available for future issuance under the 2014 Plan as of December 31, 2016. A total of 5,430,690 shares were initially reserved for grant under the 2016 Plan. Additionally, any awards outstanding under the 2014 Equity Plan that are forfeited or lapse unexercised will be added to the shares reserved and available for grant under the 2016 Plan, up to a maximum of 4,341,200 shares. As of December 31, 2016, a total of 5,510,040 shares were reserved for grant under the 2016 Plan, including 79,350 shares forfeited from the 2014 Plan to date, and 3,683,028 shares remained available for future issuance. Early exercise of stock options Stock options granted pursuant to the 2014 Plan permitted certain management-level option holders and directors to elect to exercise unvested options prior to vesting (“early exercise”). In the event of termination of the option holder’s employment or directorship, all unvested shares issued upon the early exercise, so long as they remain unvested, are subject to repurchase by the Company at the lower of the original exercise price or the fair market value of a share of common stock on the date of termination. Consistent with authoritative guidance, early exercises are not considered substantive exercises for accounting purposes. Cash received for the exercise of unvested options is recorded as a liability, which is released to additional paid-in capital at each reporting date as the shares vest. During the year ended December 31, 2016, options to purchase 3,420,243 shares of common stock were early exercised prior to vesting. Subsequent to the date of exercise through December 31, 2016, options to purchase 1,869,817 shares of common stock subject to early exercise vested and options to purchase 27,600 shares of common stock subject to early exercise were forfeited and repurchased by the Company in connection with the resignation of a Board member. As of December 31, 2016, the Company recorded a liability of $4.1 million related to 1,522,826 shares that remained subject to a potential repurchase obligation of the Company. These shares are expected to vest within the next twelve months. Accordingly, the liability is included in accrued expenses and other current liabilities. In connection with certain of these early exercises, the Company extended loans to certain key management personnel (the “Debtors”) totaling $10.4 million (the “2016 Notes”). The 2016 Notes served as financing for the Debtors’ exercises of previously issued stock options. The 2016 Notes were secured by the underlying shares and were full recourse to the respective Debtor’s personal assets. The 2016 Notes carried interest at between 0.75% and 0.81% per annum, due semi-annually, and matured in January 2018 or earlier upon the occurrence of certain events specified in the 2016 Note agreements. Amounts due from employees in relation to the 2016 Notes were recorded as a reduction in stockholders’ equity. Upon early exercise, the option holders received shares of restricted common stock and as such, participated in the June 2016 special dividend. Pursuant to the terms of the 2016 Notes, the proceeds from the dividend of $4.1 million were required to be used to pay down the outstanding principal balance. In July 2016, the Company provided an additional loan totaling $1.5 million (the “July 2016 Add-On Note”) to one of the Debtors to finance the exercise of an additional option to purchase 808,028 shares of common stock at an exercise price of $1.84 per share. The July 2016 Add-On Note carried interest at 0.71% per annum, due semi-annually, and matured in July 2018 or earlier upon the occurrence of certain events specified in the Note agreement. All other terms and conditions of the July 2016 Add-On Note were identical to the 2016 Notes. Amounts due from this employee in relation to the July 2016 Add-On Notes were recorded as a reduction in stockholders’ equity. Upon early exercise, the option holder received shares of restricted common stock. In August 2016, the Debtors repaid the remaining balance on both the 2016 Notes and the July 2016 Add-On Note of $7.9 million, including accrued interest, in full. Stock option modification In June 2016, the Company modified all stock options outstanding and reduced the exercise price by $1.79 per share in order to protect the option holders from dilution that would have otherwise resulted from the dividend recapitalization transaction. A total of 43 individuals, including three board members, held options that were modified. As the Company was not obligated to provide anti-dilution protection under the 2014 Plan, this constituted a modification, as defined by ASC 718 Compensation-stock compensation, which requires calculation of the incremental fair value of the new award. The incremental compensation related to the modification was approximately $2.7 million and is being recognized over the original requisite service period for each modified option. During the period in which the modification occurred, the Company recognized incremental compensation cost of $0.7 million related to the portion of the modified awards for which the requisite service had already been rendered. Initial public offering grants Effective immediately prior to the effectiveness of the Company’s registration statement on Form S-1, the Company granted 596,217 restricted stock units (“RSUs”) and, upon pricing of the initial public offering, the Company granted options to purchase 1,250,517 shares of the Company’s common stock to certain officers, employees and directors under the 2016 Plan. Each option has an exercise price per share equal to the initial public offering price. Service-based stock options A summary of the Company’s service-based stock option activity and related information is as follows: Options outstanding Weighted-average exercise price (1) Weighted-average remaining contractual life (in years) Aggregate intrinsic values (in thousands) Balance as of December 31, 2015 3,997,502 $ 3.66 Granted 1,872,897 13.58 Exercised (2,447,443 ) 3.55 Forfeited (212,589 ) 4.40 Cancelled (41,400 ) 3.62 Balance as of December 31, 2016 3,168,967 $ 8.55 8.7 $ 64,602 Exercisable, December 31, 2016 1,189,880 $ 1.86 7.3 $ 32,223 (1) The weighted-average exercise prices reflect the impact of the $1.79 exercise price modification for any activity occurring after the June 7, 2016 modification date. Additional information relating to service-based options is as follows (in thousands, except per share data): Predecessor Successor Period from Period from January 1, 2014 February 1, 2014 through through Year ended December 31, January 31, 2014 December 31, 2014 2015 2016 Stock-based compensation expense $ - $ 287 $ 503 $ 4,286 Intrinsic value of options exercised - - 12 2,486 Weighted-average grant date fair value of options granted (per share) (1) $ - $ 0.60 $ 0.99 $ 5.07 (1) Based on the grant date fair value at the date of grant, excluding the impact of any subsequent modifications. The weighted-average incremental fair value related to 640,600 service-based options modified in June 2016 was $3.63. As of December 31, 2016, there was $9.4 million of total unrecognized compensation cost related to service-based stock options, which is expected to be recognized over the remaining weighted-average vesting period of 3.8 years. During the period prior to the initial public offering, the Company estimated the grant date fair value of stock options granted by first computing the fair value using a Black-Scholes option-pricing model under three potential liquidity scenarios and then applying a probability weighting of each scenario. For the Predecessor 2014 Period, the Successor 2014 Period and the years ended December 31, 2015 and 2016, the fair value of service-based stock options granted were calculated using the following weighted-average assumptions: Predecessor Successor Period from Period from January 1, 2014 February 1, 2014 through through Year ended December 31, January 31, 2014 December 31, 2014 2015 2016 Expected term (in years) n/a 4.7 4.1 5.9 Expected volatility n/a 45.00 % 40.92 % 36.50 % Risk-free interest rate n/a 1.34 % 1.51 % 1.34 % Expected dividend yield n/a 0.00 % 0.00 % 0.00 % The determination of the fair value of stock options on the date of grant using a Black-Scholes option-pricing model is affected by the estimated fair value of the underlying common stock, as well as assumptions regarding a number of variables that are complex, subjective and generally require significant judgment. The assumptions used in the Black-Scholes option-pricing model to calculate the fair value of stock options were: Fair value of common stock The fair value of shares of common stock underlying stock options has historically been the responsibility of, and determined by, the Company’s board of directors, with input from management. Prior to the initial public offering, there was no public market for the Company’s common stock and the board of directors determined the fair value of common stock at the time of grant of the option by considering a number of objective and subjective factors including independent third-party valuations of the Company’s common stock, operating and financial performance, the lack of liquidity of capital stock and general and industry specific economic outlook, among other factors. After the initial public offering, the fair value of shares of common stock underlying stock options is based on the closing stock price on the date of grant. Expected term The expected term of the options represents the period of time that the options are expected to be outstanding. Options granted have a maximum contractual life of 10 years. Prior to the initial public offering, the Company estimated the expected term of the option based on the estimated timing of potential liquidity events. Expected volatility As the Company does not have sufficient trading history for its common stock, the expected stock price volatility for the common stock was estimated by taking the average historic price volatility for industry peers based on daily price observations over a period equivalent to the expected term of the stock option grants. Industry peers consist of several public companies within the same industry, which are of similar size, complexity and stage of development. The Company intends to continue to consistently apply this process using the same or similar public companies until a sufficient amount of historical information regarding the volatility of its own share price becomes available, or unless circumstances change such that the identified companies are no longer similar to the Company, in which case, more suitable companies whose share prices are publicly available would be used in the calculation. Risk-free interest rate The risk-free interest rate was based on the U.S. Treasury rate, with maturities similar to the expected term of the options. Expected dividend yield The Company does not anticipate paying any dividends in the foreseeable future. As such, the Company uses an expected dividend yield of zero. Performance-based stock options For the Company’s performance-based options, in addition to the service condition, the ultimate number of shares to be earned depends on the achievement of both a performance and market condition. The performance condition is based on the occurrence of a liquidity event and was satisfied in connection with the initial public offering in September 2016. The market condition is based upon the achievement of a minimum rate of return from the liquidity event, which will first be measured in March 2017, and holders of performance-based options must remain employed as of the measurement date. A summary of the Company’s performance-based stock option activity and related information is as follows: Options outstanding Weighted-average exercise price (1) Weighted-average remaining contractual life (in years) Aggregate intrinsic values (in thousands) Balance as of December 31, 2015 4,848,869 $ 3.64 Granted 276,690 6.69 Exercised - - Forfeited (1,265,992 ) 3.57 Cancelled (23,460 ) 3.62 Balance as of December 31, 2016 3,836,107 $ 2.46 7.8 $ 101,592 (1) The weighted-average exercise prices reflect the impact of the $1.79 exercise price modification for any activity occurring after the June 7, 2016 modification date. In regards to the performance condition, if a liquidity event occurred on or prior to January 31, 2016, an additional number of options would have vested, assuming the minimum rate of return was achieved. During the year ended December 31, 2016, performance-based options to purchase a total of 919,611 shares of common stock did not vest and were forfeited because a liquidity event did not occur on or prior to January 31, 2016. The remaining forfeitures occurred in connection with the termination of employment of certain employees. Additional information relating to performance-based options is as follows (in thousands, except per share data): Predecessor Successor Period from Period from January 1, 2014 February 1, 2014 through through Year ended December 31, January 31, 2014 December 31, 2014 2015 2016 Stock-based compensation expense $ - $ - $ - $ 1,813 Intrinsic value of options exercised $ - - - - Weighted-average grant date fair value of options granted (per share) (1) $ - $ 0.40 $ 0.50 $ 1.52 (1) Based on the grant date fair value at the date of grant, excluding the impact of any subsequent modifications. The weighted-average incremental fair value related to 1,109,163 performance-based options modified in June 2016 was $0.31. Because the achievement of the performance condition was not deemed probable until a liquidity event occurred, no compensation expense was recognized during the Successor 2014 Period or the year ended December 31, 2015 related to performance-based options. As of December 31, 2016, there was $0.3 million of total unrecognized compensation cost related to performance-based options, which is expected to be recognized over the remaining weighted-average vesting period of 0.2 years. The remaining expense reflects the derived service period associated with the requirement to remain employed as of the date that the market condition is satisfied. The fair values were determined using a Monte Carlo simulation model, based on rate of return from a potential liquidity event that ranges from 3.0x to 6.5x. The model assumed three potential liquidity scenarios and applied a probability weighting to each scenario. The rate of return is defined as the aggregate amount of distribution, dividends and sales proceeds received by equity holders, in a liquidity event, divided by the aggregate amount of original capital contribution made by these equity holders as of January 31, 2014. Restricted stock units A summary of the Company’s restricted stock unit activity and related information is as follows: Restricted stock units outstanding Weighted-average grant date fair value Balance as of December 31, 2015 - $ - Granted 596,217 17.00 Vested - - Forfeited (9,993 ) 17.00 Cancelled - - Balance as of December 31, 2016 586,224 $ 17.00 The fair value for restricted stock units is calculated based on the stock price on the date of grant. The weighted-average grant date fair value of restricted stock units granted during the year ended December 31, 2016 was $17.00. The Company recognized $0.7 million in stock-based compensation expense associated with restricted stock units in the year ended December 31, 2016. As of December 31, 2016, there was $9.3 million of total unrecognized compensation cost related to restricted stock units, which is expected to be recognized over the remaining weighted-average vesting period of 3.7 years. Phantom shares On November 14, 2014, the Company adopted the J.A. Cosmetics Holdings, Inc. 2014 Phantom Equity Plan (the “Phantom Plan”). The Phantom Plan authorizes the grant of up to 220,800 units of phantom equity to employees, directors and consultants of the Company and any of its subsidiaries. The phantom shares each represent a contractual right to payment of compensation in the future based on the amounts distributable to a holder of the Company’s common stock in connection with a sale of the Company (defined below), less the exercise price. The phantom shares do not represent shares of the Company’s common stock, and a recipient of phantom shares does not receive an ownership interest in the Company, stockholder voting rights or other incidents of ownership to the Company’s common stock. The phantom shares vest immediately on sale of the majority of the Company’s outstanding common stock or substantially all of the Company’s assets (“sale of the Company”), and the phantom stockholder remains continuously employed by the Company from the date of grant through the date of a sale of the Company. Upon a sale of the Company, holders of a vested phantom share will receive a one-time cash payment in an amount equal to the difference between the fair market value of the amounts to be received by a holder of a share of the Company’s common stock in connection with the sale of the Company and the fair market value of a share of the Company’s common stock on the grant date, as set forth in the phantom shares award agreement. During the Successor 2014 Period and the year ended December 31, 2015, the Company granted 131,100 and 62,100 phantom shares, respectively. No phantom shares were granted during the year ended December 31, 2016. As a cash payment is triggered only upon a sale of the Company, no compensation expense has been recognized related to these phantom shares. As of December 31, 2016, there was $4.5 million of unrecognized stock-based compensation related to the phantom shares; that cost is expected to be recognized upon sale of the Company, if any. |
Employee benefit plan
Employee benefit plan | 12 Months Ended |
Dec. 31, 2016 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee benefit plan | Note 14—Employee benefit plan The Company maintains a defined contribution 401(k) profit-sharing plan (the “401(k) Plan”) for eligible employees. Participants may make voluntary contributions up to the maximum amount allowable by law. The Company may make contributions to the 401(k) Plan on a discretionary basis which vest to the participants 100%. The Company elected not to make any contributions to the 401(k) Plan during the Predecessor 2014 Period or the Successor 2014 Period. The Company made $18,000 and $0.1 million of matching contributions to the 401(k) Plan during the years ended December 31, 2015 and 2016, respectively. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 15—Related-party transactions The Company previously rented office space in Shanghai, China from a lessor who was also an employee of the Company. During the Predecessor 2014 Period and the Successor 2014 Period, the Company incurred $36,000 and $0.4 million in rent expense to this lessor, which was included in selling, general and administrative expenses. In 2015, the employee ceased employment with the Company, and the lease was terminated. Cosmopack and Promotions Plus, each a related party entity owned by a relative of a former executive officer, managed the Company’s distribution and fulfillment operations for the New Jersey warehouse and charged the Company for these services. During the Predecessor 2014 Period and the Successor 2014 Period, the Company incurred $0.4 million and $3.7 million, respectively, for these services, which was included in selling, general and administrative expenses in the consolidated statement of operations. The former executive officer was an employee until December 31, 2014. During the Successor 2014 Period and the years ended December 31, 2015 and 2016, the Company incurred $0.8 million, $0.9 million and $0.9 million, respectively, in management and consulting fees to its majority stockholder, TPG. Amounts owed are included in due to related parties in the consolidated balance sheet. Subsequent to the initial public offering, the Company ceased paying management and consulting fees to TPG and there are no amounts due to TPG as of December 31, 2016. As disclosed in Note 13, during the year ended December 31, 2016, the Company extended loans to certain key management personnel totaling $12.0 million, which were repaid in full as of December 31, 2016. As disclosed in Note 10, in November 2016, the Company vacated a previously leased office facility and has entered into a sublease agreement with a related party for that space. The estimated future sublease income as of December 31, 2016 is $ 0.9 |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Net income (loss) per share | Note 16—Net income (loss) per share The following is a reconciliation of the numerator and denominator in the basic and diluted net income (loss) per common share computations (in thousands, except share data): Predecessor Successor Period from Period from January 1, 2014 February 1, 2014 through through Year ended December 31, January 31, 2014 December 31, 2014 2015 2016 Numerator: Net income (loss) $ 1,093 $ (9,286 ) $ 4,357 $ 5,313 Adjustments to numerator: Dividend paid to preferred stockholders - - - $ (66,531 ) Accretion of convertible preferred stock to maximum redemption value - (10,287 ) (51,967 ) $ (436,317 ) Net loss attributable to common stockholders 1,093 (19,573 ) (47,610 ) $ (497,535 ) Denominator: Weighted average common shares outstanding - basic 1,000 27,593 30,523 12,606,529 Weighted average common shares outstanding - diluted 1,005 27,593 30,523 12,606,529 Net income (loss) per share: Basic $ 1,093.00 $ (709.35 ) $ (1,559.81 ) $ (39.47 ) Diluted $ 1,087.56 $ (709.35 ) $ (1,559.81 ) $ (39.47 ) Anti-dilutive securities excluded from diluted EPS: Service-based stock options - 3,019,451 3,997,503 3,168,967 Common shares underlying convertible preferred stock - 37,271,375 37,271,375 - Performance-based stock options - 3,557,057 4,848,869 3,836,107 Restricted stock units - - - 586,224 Total - 43,847,883 46,117,747 7,591,298 |
Quarterly Financial Summary (Un
Quarterly Financial Summary (Unaudited) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Summary (Unaudited) | Note 17—Quarterly financial summary (unaudited) Unaudited quarterly results for the last two years were as follows (in thousands, except per share data): Q1 Q2 Q3 Q4 2016 Net sales 52,673 44,147 56,312 76,436 Gross profit 29,300 25,137 32,478 45,320 Net income (loss) 3,804 (2,715 ) (2,377 ) 6,601 Net income (loss) attributable to common stockholders (34,143 ) (96,389 ) (373,605 ) 6,378 Net income (loss) per share: Basic $ (69.57 ) $ (117.31 ) $ (73.13 ) $ 0.15 Diluted $ (69.57 ) $ (117.31 ) $ (73.13 ) $ 0.13 2015 Net sales 38,941 36,253 50,783 65,436 Gross profit 20,190 19,108 26,002 35,029 Net income (loss) 1,315 1,363 (748 ) 2,427 Net loss attributable to common stockholders (1,580 ) (1,623 ) (4,701 ) (39,706 ) Net loss per share: Basic $ (57.26 ) $ (58.82 ) $ (154.42 ) $ (1,151.13 ) Diluted $ (57.26 ) $ (58.82 ) $ (154.42 ) $ (1,151.13 ) |
Summary of Significant Accoun24
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation On January 31, 2014, the Company acquired 100% of the outstanding shares of capital stock of e.l.f. Cosmetics, Inc. and its subsidiaries (the “Predecessor,” formerly known as J.A. Cosmetics, Inc., or “JACUS”), a developer and marketer of branded value-priced cosmetics, from J.A. Cosmetics Corporation, TSG5 L.P., a private equity fund, and its co-investors (together, the “Sellers”) (the “Acquisition”). The Acquisition was accounted for as a business combination in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 805, Business Combinations (“ASC 805”), and the resulting new basis of accounting is reflected in the Company’s consolidated financial statements for all periods beginning on or after January 31, 2014. As a result, financial information of the Predecessor and Successor periods have been prepared under two different bases of accounting and therefore are not comparable. The accompanying consolidated financial statements of the Company include all the accounts of e.l.f. Beauty, Inc. and its subsidiaries for periods designated as “Successor” and relate to periods after the Acquisition. The Company had no operations from December 20, 2013 to the date of the Acquisition. The period from January 1, 2014 through January 31, 2014 relates to the period prior to the Acquisition, includes all the accounts of e.l.f. Cosmetics, Inc. and its subsidiaries, and is referred to herein as the “Predecessor 2014 Period.” The period from February 1, 2014 through December 31, 2014 is referred to as the “Successor 2014 Period.” The consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) and all intercompany balances and transactions have been eliminated in consolidation. |
Use of estimates | Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents include all cash balances and highly liquid investments purchased with maturities of three months or less. |
Accounts receivable | Accounts receivable Trade receivables consist of uncollateralized, non-interest bearing customer obligations from transactions with retail customers, reduced by an allowance for doubtful accounts for estimated losses resulting from the inability of customers to make payments. The allowance is based on the evaluation and aging of past due balances, specific exposures, historical trends and economic conditions. The Company writes off accounts receivable against the allowance when a balance is determined to be uncollectible. Recoveries of receivables previously written off are recorded when received. As of December 31, 2015 and 2016, the Company recorded an allowance for doubtful accounts of $40,000 and $0.1 million, respectively. The Company recorded a sales allowance of $3.9 million and $11.9 million as of December 31, 2015 and 2016, respectively, which is also presented as a reduction to accounts receivable. The Company grants credit terms in the normal course of business to its customers. Trade credit is extended based upon an evaluation of each customer’s ability to perform its payment obligations. |
Concentrations of credit risk | Concentrations of credit risk Financial instruments, which potentially subject the Company to concentrations of credit risk, consist principally of cash and cash equivalents, foreign currency forward contracts and trade receivables. Although the Company deposits its cash with creditworthy financial institutions, its deposits, at times, may exceed federally insured limits. To date, the Company has not experienced any losses on its cash deposits. Foreign currency forward contracts are transacted with creditworthy financial institutions, and no collateral is required. The Company performs credit evaluations of its customers, and the risk with respect to trade receivables is further mitigated by the short duration of customer payment terms and the pedigree of the customer base. During the Predecessor 2014 Period, the Successor 2014 Period, and the year ended December 31, 2016, two customers individually accounted for greater than 10% of the Company’s revenue. During the year ended December 31, 2015, three customers individually accounted for greater than 10% of the Company’s revenue, as disclosed below: Predecessor Successor Period from Period from January 1, 2014 February 1, 2014 through through Year ended December 31, January 31, 2014 December 31, 2014 2015 2016 Customer A 30 % 30 % 28 % 28 % Customer B 17 % 19 % 23 % 30 % Customer C * * 10 % * * Customer comprised less than 10% of net revenue in the period. Two customers individually accounted for greater than 10% of the Company’s accounts receivable at the end of the periods presented: December 31, 2015 December 31, 2016 Customer A 35 % 42 % Customer B 21 % 23 % |
Inventory | Inventory Inventory, consisting principally of finished goods, is stated at the lower of cost or market. Cost is principally determined by the first-in, first-out method. A provision is recorded to adjust inventory to its estimated realizable value when inventory is determined to be in excess of anticipated demand. In the Predecessor 2014 Period, the Successor 2014 Period, and the years ended December 31, 2015 and 2016, the Company incurred insignificant inventory write-downs. |
Property and equipment | Property and equipment Property and equipment is stated at cost and is depreciated on a straight-line basis 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 useful lives of the assets. Repairs and maintenance expenditures are expensed as incurred. Useful lives by major asset class are as follows: Estimated useful lives Machinery, equipment and software 3-5 years Leasehold improvements 5 years Furniture and fixtures 2-5 years Store fixtures 2-3 years The Company evaluates events and changes in circumstances that could indicate carrying amounts of long-lived assets, including property and equipment, may not be recoverable. When such events or changes in circumstances occur, the Company assesses the recoverability of long-lived assets by determining whether or not the carrying value of such assets will be recovered through undiscounted future cash flows derived from their use and eventual disposition. If the sum of the undiscounted future cash flows is less than the carrying amount of an asset, the Company records an impairment loss for the amount by which the carrying amount of the assets exceeds its fair value. There were no impairment charges recorded in the Predecessor 2014 Period, the Successor 2014 Period or the years ended December 31, 2015 or 2016. |
Goodwill and intangible assets | Goodwill and intangible assets Goodwill represents the excess purchase price for the Acquisition over the fair value of the net assets acquired. As part of the Acquisition, the Company also acquired finite-lived intangible assets (customer relationships and favorable leases) and an indefinite-lived intangible asset (trademark). Goodwill is not amortized but rather is reviewed annually for impairment, at the reporting unit level, or when there is evidence that events or changes in circumstances indicate that the Company’s carrying amount may not be recovered. When testing goodwill for impairment, the Company first performs an assessment of qualitative factors. If qualitative factors indicate that it is more likely than not that the fair value of the relevant reporting unit is less than its carrying amount, the Company tests goodwill for impairment at the reporting unit level using a two-step approach. In step one, the Company determines if the fair value of the reporting unit exceeds the unit’s carrying value. If step one indicates that the fair value of the reporting unit is less than its carrying value, the Company performs step two, determining the fair value of goodwill and, if the carrying value of goodwill exceeds its implied fair value, an impairment charge is recorded. Historically the Company had a single reporting unit for the purpose of performing its goodwill impairment test. During the third quarter of 2015, the Company made structural and reporting changes to its internal organization. This reorganization aligned the internal management and functional support around the Company’s primary sales channels which report into the chief operating decision maker. These changes resulted in the identification of three reporting units that met the definition in ASC 350, Intangibles—Goodwill and Other, of components of the Company’s one operating segment: (i) retail customers, (ii) e.l.f. stores, and (iii) e-commerce. In accordance with ASC 350, on October 1, 2015, the Company reallocated the goodwill to the three reporting units using a relative fair value approach. As a result of the internal reorganization, the Company also performed a goodwill impairment test both immediately before and after this change in reporting units and concluded that no impairment existed. Indefinite-lived intangible assets are not amortized but rather are tested for impairment annually, and impairment is recognized if the carrying amount exceeds the fair value of the intangible asset. The remaining useful life of the indefinite-lived intangible asset is evaluated each reporting period, and when the useful life is no longer considered to be indefinite, the intangible asset is amortized over its remaining useful life on a straight-line basis. Amortization of intangible assets with finite useful lives is computed on a straight-line basis over periods of three to 10 years. The determination of the estimated period of benefit is dependent upon the use and underlying characteristics of the intangible asset. The Company evaluates the recoverability of its intangible assets subject to amortization when facts and circumstances indicate that the carrying value of the asset may not be recoverable. If the carrying value of an intangible asset is not recoverable, impairment loss is measured as the amount by which the carrying value exceeds its estimated fair value. |
Deferred initial public offering costs | Deferred initial public offering costs Deferred offering costs, which primarily consist of direct incremental legal and accounting fees relating to the initial public offering, were capitalized and $8.4 million such costs were offset against proceeds from our initial public offering in September 2016. As of December 31, 2015, $1.2 million of offering costs were deferred in other assets on the consolidated balance sheets. No deferred offering costs were capitalized as of December 31, 2016. |
Debt issuance costs | Debt issuance costs Debt issuance costs and lender fees were incurred for arranging the credit facilities from various financial institutions. For credit facilities consisting of both term and revolving debt, such costs are allocated to each sub-facility based upon the total borrowing capacity. For term debt, issuance costs are presented within the related long-term debt liability on the consolidated balance sheet and lender fees are presented as a direct deduction from the carrying amount. Both debt issuance costs and lender fees are amortized over the term of the related debt using the effective interest rate method. For revolving debt, issuance costs and lender fees are presented as a noncurrent asset and amortized over the term of the related debt on a straight-line basis. |
Fair value of financial instruments | Fair value of financial instruments The carrying amounts of cash and cash equivalents, accounts receivable, and accounts payable and accrued expenses approximate their fair values due to the short-term nature of these items. The carrying amounts reported for bank debt approximate their fair values as the stated interest rates approximate market rates currently available to the Company for loans with similar terms. See Note 7—Fair value of financial instruments. |
Segment reporting | Segment reporting Operating segments are components of an enterprise for which separate financial information is available that is evaluated by the chief operating decision maker in deciding how to allocate resources and in assessing performance. Utilizing these criteria, the Company manages its business on the basis of one operating segment and one reportable segment. It is impracticable for the Company to provide revenue by product line. During the Predecessor 2014 Period, the Successor 2014 Period and the years ended December 31, 2015 and 2016, net sales in the United States and outside of the United States were as follows (in thousands): Predecessor Successor Period from Period from January 1, 2014 February 1, 2014 through through Year ended December 31, January 31, 2014 December 31, 2014 2015 2016 U.S. $ 9,334 $ 122,317 $ 178,817 $ 210,236 International 476 12,817 12,596 19,331 Total net sales $ 9,810 $ 135,134 $ 191,413 $ 229,567 As of December 31, 2015 and December 31, 2016, the Company had long-lived assets in the United States and outside of the United States as follows (in thousands): December 31, 2015 December 31, 2016 U.S. $ 9,230 $ 16,757 International 624 394 Total long-lived assets $ 9,854 $ 17,151 |
Revenue recognition | Revenue recognition Revenue consists of sales of cosmetics through retail customers, e.l.f. stores and e-commerce channels. Sales are recognized when persuasive evidence of an arrangement exists, the product has shipped, title has passed, all risks and rewards of ownership have transferred, the sales price is fixed or determinable and collectability is reasonably assured. Delivery is considered to have occurred at the time the title and risk of loss passes to the customer. For sales to retail customers, delivery is considered to have occurred at the time of shipment or the time of delivery depending upon the specific terms of the customer arrangement. For sales to e-commerce consumers, delivery is considered to have occurred at the time of delivery of merchandise to the customer. Revenue from sales to consumers through e.l.f. stores is recognized at the time of purchase. Revenue recognized through e.l.f. store and e-commerce sales channels is recognized net of any taxes that are collected from consumers and subsequently remitted to governmental authorities, such as sales, use and value added taxes. Provision for sales discounts, product returns, markdowns, shortages and price adjustments are recorded as revenue reductions. These revenue reductions are established by the Company based upon management’s best estimates at the time of sale. The Company regularly reviews and revises, when deemed necessary, its estimates of sales returns and other required reserves based primarily upon the historical rate of actual product returns and the duration of time between the original sale and return. These revenue reductions are reflected on the consolidated balance sheet as a sales allowance against accounts receivable. A reconciliation of the beginning and ending amounts of sales allowances for the Predecessor 2014 Period, the Successor 2014 Period and the years ended December 31, 2015 and 2016 is as follows (in thousands): Balance as of January 1, 2014 (Predecessor) $ 2,411 Charges 306 Deductions (1,092 ) Balance as of January 31, 2014 (Predecessor) 1,625 Charges 6,408 Deductions (6,068 ) Balance as of December 31, 2014 (Successor) 1,965 Charges 13,903 Deductions (12,002 ) Balance as of December 31, 2015 (Successor) 3,866 Charges 24,427 Deductions (16,366 ) Balance as of December 31, 2016 (Successor) $ 11,927 In the Predecessor 2014 Period, the Successor 2014 Period, and the years ended December 31, 2015 and 2016, the Company recorded $0.5 million, $4.0 million, $3.6 million and $1.4 million, respectively, of reimbursed shipping expenses from customers within revenues. The shipping and handling costs associated with product distribution were $0.9 million, $8.3 million, $12.6 million and $20.4 million in the Predecessor 2014 Period, the Successor 2014 Period and the years ended December 31, 2015 and 2016, respectively, and are included in selling, general and administrative expenses in the consolidated statements of operations. |
Income taxes | Income taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Valuation allowances are recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. Future income tax benefits are recognized to the extent that realization of such benefits is more likely than not. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in its income tax provision. |
Leases | Leases The Company leases office space, warehouse and retail store locations, equipment and software. At the inception of each lease, the Company determines its classification as an operating or capital lease. Assets held under capital leases are included in property and equipment. Operating leases are expensed on a straight-line basis over the life of the lease, beginning on the date the Company takes possession of the leased asset. Certain leases provide for rent abatements or scheduled increases in base rent. Rent expense is recognized on a straight-line basis over the lease term, which results in deferred rent payable being recognized on the consolidated balance sheet. As part of its lease agreements, the Company may receive construction allowances from landlords for tenant improvements. These leasehold improvements made by the Company are capitalized and amortized over the shorter of the lease term or five years. The construction allowances are recorded as deferred rent and amortized on a straight-line basis over the lease term as a reduction of rent expense. |
Foreign currency | Foreign currency The functional currency of the Company’s foreign subsidiaries is the U.S. dollar. Transactions denominated in currencies other than the functional currency are recorded at exchange rates in effect on the date of the transaction. At the end of each reporting period, monetary assets and liabilities are remeasured to the functional currency using exchange rates in effect at the balance sheet date. Non-monetary assets and liabilities are remeasured at historical exchange rates. Transaction gains or losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are included in other income (expense), net in the consolidated statements of operations. |
Derivative instruments | Derivative instruments The Company is exposed to foreign exchange risk as it has contracts with suppliers in China for future purchases of inventories denominated in the Chinese renminbi (“RMB”). The Company has previously used derivative instruments, specifically forward contracts, to mitigate the impact of foreign currency fluctuations on a portion of its forecasted foreign currency exposures. These contracts are carried at their fair value either as an asset or liability on the consolidated balance sheet. The Company’s derivative contracts are not designated as hedge instruments, and changes in fair value of derivatives are recorded in other income (expense), net in the consolidated statements of operations. The Company does not enter into derivative contracts for speculative or trading purposes. |
Stock-based compensation | Stock-based compensation Stock-based compensation cost is measured at the grant date, based on the fair value of the award, and is recognized on a straight-line basis over the requisite service period, which is generally the award’s vesting period. The Company estimates the fair value of employee stock-based payment awards subject to only a service condition on the date of grant using the Black-Scholes valuation model. The Black-Scholes model requires the use of highly subjective and complex assumptions, including the option’s expected term and the price volatility of the underlying stock. The Company estimates the fair value of employee stock-based payment awards subject to both a market condition and the occurrence of a performance condition on the date of grant using a Monte Carlo simulation model that assumes the performance criteria will be met and the target payout levels will be achieved. Compensation expense for employee stock-based awards whose vesting is subject to the fulfillment of both a market condition and the occurrence of a performance condition is recognized on a graded-vesting basis at the time the achievement of the performance condition becomes probable. Forfeitures were previously estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differed from those estimates. The Company early adopted ASU 2016-09 and beginning January 1, 2016, accounts for forfeitures as they occur. The Company recorded a cumulative-effect adjustment to retained earnings, which was not material, upon early adoption. |
Advertising costs | Advertising costs Advertising costs, including promotions and print, are expensed as incurred or distributed. Advertising costs are included in selling, general, and administrative expenses in the accompanying consolidated statements of operations and amounted to approximately $0.2 million, $2.5 million, $3.9 million and $5.6 million in the Predecessor 2014 Period, the Successor 2014 Period, and the years ended December 31, 2015 and 2016, respectively. |
Net income (loss) per common share | Net income (loss) per common share Basic net income (loss) per common share is computed using net income (loss) available to common stockholders divided by the weighted-average number of common shares outstanding during the period. Diluted net income (loss) per share reflects the dilutive effects of stock options and restricted stock units outstanding during the period, to the extent such securities would not be anti-dilutive. During 2016, the Company issued unvested restricted stock in connection with the early exercise of certain employee stock options, as described in Note 13. Such restricted stock includes the right to receive non-forfeitable dividends or dividend equivalents and are considered participating securities, which require the Company to compute two-class EPS in periods of net income. Calculations of EPS under the two-class method exclude from the numerator any dividends paid or owed on participating securities and any undistributed earnings considered to be attributable to participating securities. The related participating securities are similarly excluded from the denominator. |
Recent accounting pronouncements | Recent accounting pronouncements The following table provides a brief description of recent accounting pronouncements that could have a material effect on the Company’s financial statements: Standard Description Date of expected adoption/adoption Effect on the financial statements or other significant matters Standards that are not yet adopted ASU 2014-09, Revenue from Contracts with Customers (Topic 606) The standard will replace existing revenue recognition standards and significantly expand the disclosure requirements for revenue arrangements. It may be adopted either retrospectively or on a modified retrospective basis to new contracts and existing contracts with remaining performance obligations as of the effective date. January 1, 2018 The Company expects the standard to impact the methods used to reserve for discounts, refunds and other customer incentives, which may impact the timing of revenue recognition. The Company is currently evaluating the alternative methods of adoption, as well as other possible impacts of the adoption of this standard on its consolidated financial statements. ASU 2015-14 , Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date In August 2015, the FASB issued ASU 2015-14, which deferred the effective date from annual periods beginning on or after December 15, 2016 to annual periods beginning on or after December 15, 2017. ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing ASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedient ASU 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers In March, April, May and December 2016, the FASB issued ASU 2016-08, ASU 2016-10, ASU 2016-12 and ASU 2016-20, respectively. These standards provide supplemental adoption guidance and clarification to ASU 2014-09, and must be adopted concurrently with the adoption of ASU 2014-09. ASU 2016-02, Leases (Topic 842) The standard will require lessees to recognize a right-of-use asset and a lease liability for virtually all of their leases (other than leases that meet the definition of a short-term lease). The liability will be equal to the present value of lease payments. The asset will be based on the liability, subject to adjustment, such as for initial direct costs. Lessor accounting is similar to the current model, but updated to align with certain changes to the lessee model (e.g., certain definitions, such as initial direct costs, have been updated) and the new revenue recognition standard. It requires a modified retrospective approach for all leases existing at, or entered into after, the date of initial application. January 1, 2019 The Company is currently evaluating the effect of the standard on its financial statements and related disclosures. Standards that were adopted ASU 2014-12, Compensation—Stock Compensation (Topic 718): 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 standard will require that a performance target in a share-based payment award that affects vesting and that can be achieved after the requisite service period is completed to be accounted for as a performance condition. Compensation cost would be recognized in the period in which it becomes probable that the performance target will be achieved, and the amount of compensation cost recognized should be based on the portion of the service period fulfilled. The standard may be adopted either prospectively or retrospectively as of the effective date. January 1, 2016 The Company prospectively adopted this standard in the first quarter of 2016. The standard had no effect on the Company’s consolidated financial statements, as its historical practice complied with the new requirements. ASU 2016-09, Improvements to Employee Share-Based Payment Accounting The standard simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. January 1, 2016 The Company early adopted this standard in the first quarter of 2016. The amendments were applied on a modified retrospective basis, except for amendments requiring recognition of excess tax benefits and deficiencies in the income statement, which was applied prospectively. The standard did not have a material effect on the Company’s consolidated financial statements. ASU 2016-15, Classification of certain cash receipts and cash payments The standard provides specific guidance intended to reduce diversity in practice around eight cash flow statement classification issues. July 1, 2016 The Company early adopted this standard in the third quarter of 2016. The amendments were applied on a retrospective basis. The standard did not have any effect on the Company’s consolidated financial statements. |
Summary of Significant Accoun25
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Schedule of Concentrations of Risk | During the Predecessor 2014 Period, the Successor 2014 Period, and the year ended December 31, 2016, two customers individually accounted for greater than 10% of the Company’s revenue. During the year ended December 31, 2015, three customers individually accounted for greater than 10% of the Company’s revenue, as disclosed below: Predecessor Successor Period from Period from January 1, 2014 February 1, 2014 through through Year ended December 31, January 31, 2014 December 31, 2014 2015 2016 Customer A 30 % 30 % 28 % 28 % Customer B 17 % 19 % 23 % 30 % Customer C * * 10 % * Two customers individually accounted for greater than 10% of the Company’s accounts receivable at the end of the periods presented: December 31, 2015 December 31, 2016 Customer A 35 % 42 % Customer B 21 % 23 % |
Schedule of Useful Lives by Major Asset Class | Useful lives by major asset class are as follows: Estimated useful lives Machinery, equipment and software 3-5 years Leasehold improvements 5 years Furniture and fixtures 2-5 years Store fixtures 2-3 years |
Net Sales in United States and Outside of United States | During the Predecessor 2014 Period, the Successor 2014 Period and the years ended December 31, 2015 and 2016, net sales in the United States and outside of the United States were as follows (in thousands): Predecessor Successor Period from Period from January 1, 2014 February 1, 2014 through through Year ended December 31, January 31, 2014 December 31, 2014 2015 2016 U.S. $ 9,334 $ 122,317 $ 178,817 $ 210,236 International 476 12,817 12,596 19,331 Total net sales $ 9,810 $ 135,134 $ 191,413 $ 229,567 |
Long-Lived Assets in United States and Outside of United States | As of December 31, 2015 and December 31, 2016, the Company had long-lived assets in the United States and outside of the United States as follows (in thousands): December 31, 2015 December 31, 2016 U.S. $ 9,230 $ 16,757 International 624 394 Total long-lived assets $ 9,854 $ 17,151 |
Reconciliation of Sales Allowances | A reconciliation of the beginning and ending amounts of sales allowances for the Predecessor 2014 Period, the Successor 2014 Period and the years ended December 31, 2015 and 2016 is as follows (in thousands): Balance as of January 1, 2014 (Predecessor) $ 2,411 Charges 306 Deductions (1,092 ) Balance as of January 31, 2014 (Predecessor) 1,625 Charges 6,408 Deductions (6,068 ) Balance as of December 31, 2014 (Successor) 1,965 Charges 13,903 Deductions (12,002 ) Balance as of December 31, 2015 (Successor) 3,866 Charges 24,427 Deductions (16,366 ) Balance as of December 31, 2016 (Successor) $ 11,927 |
Acquisition of e.l.f. Cosmeti26
Acquisition of e.l.f. Cosmetics, Inc. and subsidiaries (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Summary of Fair Values of Assets Acquired and Liabilities Assumed at Acquisition Date | The following table summarizes the consideration paid and the fair values of the assets acquired and liabilities assumed at the Acquisition Date (in thousands): Amount Tangible assets acquired $ 51,755 Intangible asset—customer relationships, retailers 68,800 Intangible asset—customer relationships, e-commerce 3,800 Intangible asset—trademark 63,800 Intangible asset—favorable leases 580 Goodwill 157,264 Liabilities assumed (74,990 ) Fair value of total purchase consideration $ 271,009 |
Unaudited Pro Forma Financial Information | The unaudited pro forma financial information should not be relied upon as necessarily being indicative of the historical results that would have been obtained if the Acquisition had actually occurred on that date or the results that will be obtained in the future. Year ended December 31, 2014 Net sales $ 144,944 Net loss (9,778 ) |
Goodwill and Other Intangible27
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Information Regarding Company's Goodwill and Intangible Assets | Information regarding the Company’s goodwill and intangible assets as of December 31, 2015 is as follows (in thousands): Estimated useful life Gross carrying amount Accumulated amortization Net carrying amount Customer relationships – retailers 10 years $ 68,800 $ (13,187 ) $ 55,613 Customer relationships – e-commerce 3 years 3,900 (2,436 ) 1,464 Favorable leases, net Varies 580 (175 ) 405 Total finite-lived intangibles 73,280 (15,798 ) 57,482 Trademarks Indefinite 63,800 - 63,800 Goodwill 157,264 - 157,264 Total goodwill and other intangibles $ 294,344 $ (15,798 ) $ 278,546 Information regarding the Company’s goodwill and intangible assets as of December 31, 2016 is as follows (in thousands): Estimated useful life Gross carrying amount Accumulated amortization Net carrying amount Customer relationships – retailers 10 years $ 68,800 $ (20,067 ) $ 48,733 Customer relationships – e-commerce 3 years 3,900 (3,736 ) 164 Favorable leases, net Varies 580 (274 ) 306 Total finite-lived intangibles 73,280 (24,077 ) 49,203 Trademarks Indefinite 63,800 - 63,800 Goodwill 157,264 - 157,264 Total goodwill and other intangibles $ 294,344 $ (24,077 ) $ 270,267 |
Estimated Future Amortization Expense Related to Finite-lived Intangible Assets | The estimated future amortization expense related to the finite-lived intangible assets, assuming no impairment as of December 31, 2016, is as follows (in thousands): Year ending December 31, 2017 $ 7,121 2018 7,007 2019 6,982 2020 6,880 Thereafter 21,213 Total $ 49,203 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property Plant And Equipment [Abstract] | |
Summary of Property and Equipment | Property and equipment as of December 31, 2015 and 2016 consists of the following (in thousands): December 31, 2015 December 31, 2016 Machinery, equipment and software $ 1,322 $ 3,956 Leasehold improvements 1,880 7,620 Furniture and fixtures 625 2,771 Store fixtures 8,147 8,921 Property and equipment, gross 11,974 23,268 Less: Accumulated depreciation and amortization (2,120 ) (6,117 ) Property and equipment, net $ 9,854 $ 17,151 |
Accrued Expenses and Other Cu29
Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Payables And Accruals [Abstract] | |
Summary of Accrued Expenses | Accrued expenses as of December 31, 2015 and 2016 consists of the following (in thousands): December 31, 2015 December 31, 2016 Accrued expenses $ 2,681 $ 9,537 Other current liabilities 4,752 9,249 Accrued compensation 6,280 7,111 Early exercised option deposit liability - 4,074 Income taxes payable - 3,705 Accrued expenses and other current liabilities $ 13,713 $ 33,676 |
Fair Value of Financial Instr30
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Summary of Fair Value of Financial Liabilities | The following table sets forth the fair value of the Company’s financial liabilities by level within the fair value hierarchy as of December 31, 2015 (in thousands): Fair value measurements using Fair value Level 1 Level 2 Level 3 Financial liabilities: Foreign currency forward contracts $ 10,702 $ - $ 10,702 $ - Long-term debt, including current portion (1) 148,106 - 148,106 - Total financial liabilities $ 158,808 $ - $ 158,808 $ - (1) Of this amount, $10,325 is classified as current. The gross carrying amounts of the Company’s bank debt, before reduction of the debt issuance costs, approximate their fair values as the stated rates approximate market rates for loans with similar terms. The following table sets forth the fair value of the Company’s financial liabilities by level within the fair value hierarchy as of December 31, 2016 (in thousands): Fair value measurements using Fair value Level 1 Level 2 Level 3 Financial liabilities: Foreign currency forward contracts $ - $ - $ - $ - Long-term debt, including current portion (1) 165,393 - 165,393 - Total financial liabilities $ 165,393 $ - $ 165,393 $ - (1) Of this amount, $8,650 is classified as current. The gross carrying amounts of the Company’s bank debt, before reduction of the debt issuance costs, approximate their fair values as the stated rates approximate market rates for loans with similar terms. |
Derivatives (Tables)
Derivatives (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Summary of Aggregate Notional Amount of Outstanding Forward Contracts | As of December 31, 2015 and December 31, 2016, the aggregate notional amount of the Company’s outstanding forward contracts was as follows (in thousands): Derivatives not designated as hedging instruments December 31, 2015 December 31, 2016 Foreign currency contracts $ 148,978 $ - |
Summary of Derivative Assets and Derivative Liabilities on Consolidated Balance Sheets on Net Basis | The Company’s policy is to present its derivative assets and derivative liabilities on the consolidated balance sheets on a net basis. Net amount Gross amounts recognized in the offset in the As of December 31, 2015 consolidated consolidated (in thousands) balance sheets balance sheets Gross amount Liabilities: Foreign currency contracts $ 10,702 $ - $ 10,702 Total liabilities $ 10,702 $ - $ 10,702 There were no forward contracts outstanding as of December 31, 2016. |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Debt | The Company’s outstanding debt as of December 31, 2015 and 2016 consists of the following (in thousands): December 31, 2015 December 31, 2016 Debt: Revolving credit facility $ 7,700 $ - Term loan 100,406 162,627 Second lien term loan 40,000 - Capital lease obligations - 2,766 Total debt 148,106 165,393 Less: debt issuance costs (3,187 ) (566 ) Total debt, net of issuance costs 144,919 164,827 Less: current portion (10,325 ) (8,650 ) Long-term portion of debt $ 134,594 $ 156,177 |
Schedule of Aggregate Future Minimum Principal Payments on the Term Loan | Aggregate future minimum principal payments on the Term Loan are as follows (in thousands): Year ending December 31, 2017 $ 8,250 2018 8,250 2019 9,900 2020 12,375 Thereafter 126,225 Total $ 165,000 |
Schedule of Components of Interest Expense | The components of interest expense are as follows (in thousands): Predecessor Successor Period from Period from January 1, 2014 February 1, 2014 through through Year ended December 31, January 31, 2014 December 31, 2014 2015 2016 Interest of term loan debt $ 126 $ 10,192 $ 10,988 $ 12,076 Amortization of debt issuance costs - 993 1,101 1,281 Loss on extinguishment of debt - - - 2,736 Interest on revolving line of credit 2 369 700 190 Other - (9 ) (68 ) - Interest expense, net $ 128 $ 11,545 $ 12,721 $ 16,283 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Lease Payments under Operating Leases | Future minimum lease payments under the operating leases are as follows (in thousands): Year ending December 31, 2017 $ 4,789 2018 4,726 2019 4,636 2020 4,188 Thereafter 13,397 Total 31,736 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income (Loss) Before Income Taxes | The components of income (loss) before income taxes are as follows (in thousands): Predecessor Successor Period from Period from January 1, 2014 February 1, 2014 through through Year ended December 31, January 31, 2014 December 31, 2014 2015 2016 Domestic $ 1,709 $ (13,517 ) $ 8,053 $ 9,677 Foreign (74 ) 686 625 135 Total $ 1,635 $ (12,831 ) $ 8,678 $ 9,812 |
Schedule of Components of (Provision) Benefit for Income Taxes | The components of the (provision) benefit for income taxes are as follows (in thousands): Predecessor Successor Period from Period from January 1, 2014 February 1, 2014 through through Year ended December 31, January 31, 2014 December 31, 2014 2015 2016 Current: U.S. federal $ 1,394 $ (363 ) $ (6,837 ) $ (9,978 ) State (5 ) (111 ) (1,026 ) (2,096 ) Foreign 18 (257 ) (391 ) - Total current 1,407 (731 ) (8,254 ) (12,074 ) Deferred: U.S. federal (1,881 ) 3,881 3,710 8,384 State (68 ) 324 201 (773 ) Foreign - 71 22 (36 ) Total deferred (1,949 ) 4,276 3,933 7,575 Total (provision) benefit for income taxes $ (542 ) $ 3,545 $ (4,321 ) $ (4,499 ) |
Schedule of Reconciliation of Federal Statutory Rate to Company's Effective Tax Rate | The following table presents a reconciliation of the federal statutory rate to the Company’s effective tax rate: Predecessor Successor Period from Period from January 1, 2014 February 1, 2014 through through Year ended December 31, January 31, 2014 December 31, 2014 2015 2016 Federal statutory rate 34.0 % 34.0 % 35.0 % 35.0 % State tax-net of federal benefit 1.7 % 1.7 % 2.2 % 0.7 % State tax deferred rate change 0.0 % 0.0 % 0.3 % 18.7 % Impact of foreign operations 0.4 % 1.0 % (0.2 %) 0.1 % U.S. subpart F income 0.0 % (2.2 %) 2.5 % 0.5 % Nondeductible transaction-related costs 0.0 % (6.5 %) 0.0 % 2.0 % Uncertain tax positions 0.0 % (0.2 %) 5.3 % 2.0 % Stock based compensation 0.0 % 0.0 % 0.6 % (16.8 %) Others (3.0 %) (0.2 %) 4.1 % 3.7 % Effective tax rate 33.1 % 27.6 % 49.8 % 45.9 % |
Schedule of Components of Net Deferred Taxes | The components of net deferred taxes arising from temporary differences are as follows (in thousands): December 31, 2015 December 31, 2016 Deferred tax assets: Compensation $ 1,969 $ 1,848 Inventories and receivables 1,604 6,905 Accrued expenses 2,120 1,996 Stock compensation 238 1,967 Net operating losses - 232 Other 446 1,304 Deferred tax assets 6,377 14,252 Deferred tax liabilities: Goodwill 1,614 2,562 Fixed assets 1,620 2,699 Intangible assets 44,493 42,587 Other 514 579 Deferred tax liabilities 48,241 48,427 Net deferred tax liabilities $ 41,864 $ 34,175 |
Schedule of Deferred Tax Assets and Liabilities Within the Same Jurisdiction | The deferred tax assets and liabilities within the same jurisdiction are reported net in the accompanying balance sheets as follows (in thousands): December 31, 2015 December 31, 2016 Noncurrent deferred tax assets $ 262 $ 37 Noncurrent deferred tax liabilities 42,126 34,212 Net deferred tax liabilities $ 41,864 $ 34,175 |
Schedule of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands): Predecessor Successor Period from Period from January 1, 2014 February 1, 2014 through through Year ended December 31, January 31, 2014 December 31, 2014 2015 2016 Balance at beginning of year $ 581 $ 581 $ 607 $ 1,256 Increases for prior year tax positions - - 1 438 Increases for current year tax positions - 26 648 103 Decreases for prior year tax positions - - - (589 ) Decreases due to settlements - - - - Decreases due to statutes lapsing - - - - Balance at end of year $ 581 $ 607 $ 1,256 $ 1,208 |
Stock-based Compensation (Table
Stock-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Summary of Restricted Stock Unit Activity and Related Information | A summary of the Company’s restricted stock unit activity and related information is as follows: Restricted stock units outstanding Weighted-average grant date fair value Balance as of December 31, 2015 - $ - Granted 596,217 17.00 Vested - - Forfeited (9,993 ) 17.00 Cancelled - - Balance as of December 31, 2016 586,224 $ 17.00 |
Service-based Stock Options | |
Summary of Stock Option Activity and Related Information | A summary of the Company’s service-based stock option activity and related information is as follows: Options outstanding Weighted-average exercise price (1) Weighted-average remaining contractual life (in years) Aggregate intrinsic values (in thousands) Balance as of December 31, 2015 3,997,502 $ 3.66 Granted 1,872,897 13.58 Exercised (2,447,443 ) 3.55 Forfeited (212,589 ) 4.40 Cancelled (41,400 ) 3.62 Balance as of December 31, 2016 3,168,967 $ 8.55 8.7 $ 64,602 Exercisable, December 31, 2016 1,189,880 $ 1.86 7.3 $ 32,223 (1) The weighted-average exercise prices reflect the impact of the $1.79 exercise price modification for any activity occurring after the June 7, 2016 modification date. |
Summary of Additional Information Relating to Stock Options Activity | Additional information relating to service-based options is as follows (in thousands, except per share data): Predecessor Successor Period from Period from January 1, 2014 February 1, 2014 through through Year ended December 31, January 31, 2014 December 31, 2014 2015 2016 Stock-based compensation expense $ - $ 287 $ 503 $ 4,286 Intrinsic value of options exercised - - 12 2,486 Weighted-average grant date fair value of options granted (per share) (1) $ - $ 0.60 $ 0.99 $ 5.07 (1) Based on the grant date fair value at the date of grant, excluding the impact of any subsequent modifications. The weighted-average incremental fair value related to 640,600 service-based options modified in June 2016 was $3.63. |
Summary of Weighted-Average Assumptions | For the Predecessor 2014 Period, the Successor 2014 Period and the years ended December 31, 2015 and 2016, the fair value of service-based stock options granted were calculated using the following weighted-average assumptions: Predecessor Successor Period from Period from January 1, 2014 February 1, 2014 through through Year ended December 31, January 31, 2014 December 31, 2014 2015 2016 Expected term (in years) n/a 4.7 4.1 5.9 Expected volatility n/a 45.00 % 40.92 % 36.50 % Risk-free interest rate n/a 1.34 % 1.51 % 1.34 % Expected dividend yield n/a 0.00 % 0.00 % 0.00 % |
Performance-based Stock Options | |
Summary of Stock Option Activity and Related Information | A summary of the Company’s performance-based stock option activity and related information is as follows: Options outstanding Weighted-average exercise price (1) Weighted-average remaining contractual life (in years) Aggregate intrinsic values (in thousands) Balance as of December 31, 2015 4,848,869 $ 3.64 Granted 276,690 6.69 Exercised - - Forfeited (1,265,992 ) 3.57 Cancelled (23,460 ) 3.62 Balance as of December 31, 2016 3,836,107 $ 2.46 7.8 $ 101,592 (1) The weighted-average exercise prices reflect the impact of the $1.79 exercise price modification for any activity occurring after the June 7, 2016 modification date. |
Summary of Additional Information Relating to Stock Options Activity | Additional information relating to performance-based options is as follows (in thousands, except per share data): Predecessor Successor Period from Period from January 1, 2014 February 1, 2014 through through Year ended December 31, January 31, 2014 December 31, 2014 2015 2016 Stock-based compensation expense $ - $ - $ - $ 1,813 Intrinsic value of options exercised $ - - - - Weighted-average grant date fair value of options granted (per share) (1) $ - $ 0.40 $ 0.50 $ 1.52 (1) Based on the grant date fair value at the date of grant, excluding the impact of any subsequent modifications. The weighted-average incremental fair value related to 1,109,163 performance-based options modified in June 2016 was $0.31. |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Reconciliation of Numerator and Denominator in Basic and Diluted Net Income (Loss) Per Common Share Computations | The following is a reconciliation of the numerator and denominator in the basic and diluted net income (loss) per common share computations (in thousands, except share data): Predecessor Successor Period from Period from January 1, 2014 February 1, 2014 through through Year ended December 31, January 31, 2014 December 31, 2014 2015 2016 Numerator: Net income (loss) $ 1,093 $ (9,286 ) $ 4,357 $ 5,313 Adjustments to numerator: Dividend paid to preferred stockholders - - - $ (66,531 ) Accretion of convertible preferred stock to maximum redemption value - (10,287 ) (51,967 ) $ (436,317 ) Net loss attributable to common stockholders 1,093 (19,573 ) (47,610 ) $ (497,535 ) Denominator: Weighted average common shares outstanding - basic 1,000 27,593 30,523 12,606,529 Weighted average common shares outstanding - diluted 1,005 27,593 30,523 12,606,529 Net income (loss) per share: Basic $ 1,093.00 $ (709.35 ) $ (1,559.81 ) $ (39.47 ) Diluted $ 1,087.56 $ (709.35 ) $ (1,559.81 ) $ (39.47 ) Anti-dilutive securities excluded from diluted EPS: Service-based stock options - 3,019,451 3,997,503 3,168,967 Common shares underlying convertible preferred stock - 37,271,375 37,271,375 - Performance-based stock options - 3,557,057 4,848,869 3,836,107 Restricted stock units - - - 586,224 Total - 43,847,883 46,117,747 7,591,298 |
Quarterly Financial Summary (37
Quarterly Financial Summary (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Unaudited Quarterly Results | Unaudited quarterly results for the last two years were as follows (in thousands, except per share data): Q1 Q2 Q3 Q4 2016 Net sales 52,673 44,147 56,312 76,436 Gross profit 29,300 25,137 32,478 45,320 Net income (loss) 3,804 (2,715 ) (2,377 ) 6,601 Net income (loss) attributable to common stockholders (34,143 ) (96,389 ) (373,605 ) 6,378 Net income (loss) per share: Basic $ (69.57 ) $ (117.31 ) $ (73.13 ) $ 0.15 Diluted $ (69.57 ) $ (117.31 ) $ (73.13 ) $ 0.13 2015 Net sales 38,941 36,253 50,783 65,436 Gross profit 20,190 19,108 26,002 35,029 Net income (loss) 1,315 1,363 (748 ) 2,427 Net loss attributable to common stockholders (1,580 ) (1,623 ) (4,701 ) (39,706 ) Net loss per share: Basic $ (57.26 ) $ (58.82 ) $ (154.42 ) $ (1,151.13 ) Diluted $ (57.26 ) $ (58.82 ) $ (154.42 ) $ (1,151.13 ) |
Nature of Operations - Addition
Nature of Operations - Additional Information (Details) | Sep. 27, 2016USD ($)$ / sharesshares | Sep. 19, 2016shares | Jun. 07, 2016USD ($) | Jan. 31, 2014USD ($) | Jun. 30, 2016USD ($)$ / shares | Dec. 31, 2014USD ($) | Dec. 31, 2016USD ($)$ / sharesshares | Dec. 31, 2015USD ($)shares |
Nature of Operations [Line Items] | ||||||||
Common stock, shares authorized | shares | 250,000,000 | 250,000,000 | 13,800,000 | |||||
Description of stock split arrangement | On September 19, 2016, the Company amended and restated its certificate of incorporation to effect a 2.76:1 forward stock split of the Company’s common stock | |||||||
Special dividend declared, date | Jun. 7, 2016 | |||||||
Payment of special dividend | $ 72,000,000 | $ 68,000,000 | ||||||
Common stock dividends paid, per share | $ / shares | $ 1.79 | |||||||
Decrease in exercise price due to modification impact, per share | $ / shares | $ 1.79 | |||||||
Incremental compensation expense | $ 2,700,000 | |||||||
Cash received from issuance of common stock | $ 100,000 | $ 64,071,000 | $ 25,000 | |||||
Initial Public Offering | ||||||||
Nature of Operations [Line Items] | ||||||||
Common stock issued including underwriter's overallotment option | shares | 9,583,333 | |||||||
Sale of stock, price per share | $ / shares | $ 17 | |||||||
Gross proceeds from issuance of initial public offering | $ 162,900,000 | |||||||
Cash received from issuance of common stock | 0 | |||||||
Net proceeds excluding underwriting discounts and commissions and other offering expenses including offering expenses paid prior to the initial public offering | $ 54,900,000 | |||||||
Conversion of preferred stock into common stock | shares | 37,271,375 | |||||||
Existing Stockholders | Initial Public Offering | ||||||||
Nature of Operations [Line Items] | ||||||||
Common stock issued including underwriter's overallotment option | shares | 5,583,333 | |||||||
Restricted Common Stock | ||||||||
Nature of Operations [Line Items] | ||||||||
Payment of special dividend | $ 4,100,000 | |||||||
2014 Term Loan | ||||||||
Nature of Operations [Line Items] | ||||||||
Increase in borrowings under senior secured credit facility | 64,000,000 | |||||||
Second Lien Term Loan | ||||||||
Nature of Operations [Line Items] | ||||||||
Term loan facility | 40,000,000 | |||||||
2014 Revolving Credit Facility | ||||||||
Nature of Operations [Line Items] | ||||||||
Amounts available under senior secured credit facility | 25,000,000 | |||||||
2014 Senior Secured Credit Facility | ||||||||
Nature of Operations [Line Items] | ||||||||
Debt instrument, term | 5 years | |||||||
2014 Senior Secured Credit Facility | 2014 Term Loan | ||||||||
Nature of Operations [Line Items] | ||||||||
Term loan facility | $ 105,000,000 | |||||||
2014 Senior Secured Credit Facility | 2014 Revolving Credit Facility | ||||||||
Nature of Operations [Line Items] | ||||||||
Amounts available under senior secured credit facility | $ 25,000,000 | $ 20,000,000 | ||||||
Common stock | ||||||||
Nature of Operations [Line Items] | ||||||||
Forward stock split, conversion ratio per each share | 2.76 | |||||||
Common stock issued including underwriter's overallotment option | shares | 4,000,000 |
Summary of Significant Accoun39
Summary of Significant Accounting Policies - Additional Information (Details) | Oct. 02, 2015Segment | Jan. 31, 2014USD ($)Customer | Jun. 30, 2015Segment | Dec. 31, 2014USD ($)Customer | Dec. 31, 2016USD ($)CustomerSegment | Dec. 31, 2015USD ($)Customer | Sep. 30, 2016USD ($) |
Summary Of Significant Accounting Policies [Line Items] | |||||||
Percentage of outstanding shares acquired | 100.00% | ||||||
Allowance for doubtful accounts | $ 100,000 | $ 40,000 | |||||
Sales allowances | 11,900,000 | 3,900,000 | |||||
Asset Impairment Charges | $ 0 | 0 | 0 | ||||
Number of reporting units | Segment | 3 | 1 | |||||
Deferred offering costs | $ 0 | 1,200,000 | $ 8,400,000 | ||||
Number of operating segment | Segment | 1 | ||||||
Number of reportable segment | Segment | 1 | ||||||
Reimbursed shipping expenses from customers | 4,000,000 | $ 1,400,000 | 3,600,000 | ||||
Shipping and handling costs | 8,300,000 | 20,400,000 | 12,600,000 | ||||
Advertising costs | $ 2,500,000 | $ 5,600,000 | $ 3,900,000 | ||||
Leasehold Improvements | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Amortization of assets useful lives | 5 years | ||||||
Minimum | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Amortization of intangible assets with finite useful lives | 3 years | ||||||
Maximum | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Amortization of intangible assets with finite useful lives | 10 years | ||||||
Revenue | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Number of Customers | Customer | 2 | 2 | 3 | ||||
Accounts Receivable | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Number of Customers | Customer | 2 | 2 | 2 | ||||
Predecessor | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Percentage of outstanding shares acquired | 100.00% | ||||||
Asset Impairment Charges | $ 0 | ||||||
Reimbursed shipping expenses from customers | 500,000 | ||||||
Shipping and handling costs | 900,000 | ||||||
Advertising costs | $ 200,000 | ||||||
Predecessor | Revenue | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Number of Customers | Customer | 2 | ||||||
Predecessor | Accounts Receivable | |||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||
Number of Customers | Customer | 2 |
Summary of Significant Accoun40
Summary of Significant Accounting Policies - Schedule of Concentrations of Risk (Details) - Customer Concentration Risk | 1 Months Ended | 11 Months Ended | 12 Months Ended | |
Jan. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenue | Customer A | ||||
Product Information [Line Items] | ||||
Concentration risk percentage | 30.00% | 28.00% | 28.00% | |
Revenue | Customer B | ||||
Product Information [Line Items] | ||||
Concentration risk percentage | 19.00% | 30.00% | 23.00% | |
Revenue | Customer C | ||||
Product Information [Line Items] | ||||
Concentration risk percentage | 10.00% | |||
Revenue | Predecessor | Customer A | ||||
Product Information [Line Items] | ||||
Concentration risk percentage | 30.00% | |||
Revenue | Predecessor | Customer B | ||||
Product Information [Line Items] | ||||
Concentration risk percentage | 17.00% | |||
Accounts Receivable | Customer A | ||||
Product Information [Line Items] | ||||
Concentration risk percentage | 42.00% | 35.00% | ||
Accounts Receivable | Customer B | ||||
Product Information [Line Items] | ||||
Concentration risk percentage | 23.00% | 21.00% |
Summary of Significant Accoun41
Summary of Significant Accounting Policies - Schedule of Concentrations of Risk (Parenthetical) (Details) - Customer C - Customer Concentration Risk - Revenue | 1 Months Ended | 11 Months Ended | 12 Months Ended | |
Jan. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | |
Product Information [Line Items] | ||||
Concentration risk percentage | 10.00% | |||
Maximum | ||||
Product Information [Line Items] | ||||
Concentration risk percentage | 10.00% | 10.00% | ||
Predecessor | Maximum | ||||
Product Information [Line Items] | ||||
Concentration risk percentage | 10.00% |
Summary of Significant Accoun42
Summary of Significant Accounting Policies - Schedule of Useful Lives by Major Asset Class (Details) | 12 Months Ended |
Dec. 31, 2016 | |
Machinery, Equipment and Software | Minimum | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives | 3 years |
Machinery, Equipment and Software | Maximum | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives | 5 years |
Leasehold Improvements | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives | 5 years |
Furniture and Fixtures | Minimum | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives | 2 years |
Furniture and Fixtures | Maximum | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives | 5 years |
Store Fixtures | Minimum | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives | 2 years |
Store Fixtures | Maximum | |
Property Plant And Equipment [Line Items] | |
Estimated useful lives | 3 years |
Summary of Significant Accoun43
Summary of Significant Accounting Policies - Net Sales in United States and Outside of United States (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 11 Months Ended | 12 Months Ended | ||||||||
Jan. 31, 2014 | 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, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues From External Customers And Long Lived Assets [Line Items] | ||||||||||||
Net sales | $ 76,436 | $ 56,312 | $ 44,147 | $ 52,673 | $ 65,436 | $ 50,783 | $ 36,253 | $ 38,941 | $ 135,134 | $ 229,567 | $ 191,413 | |
U.S | ||||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||||||||||
Net sales | 122,317 | 210,236 | 178,817 | |||||||||
International | ||||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||||||||||
Net sales | $ 12,817 | $ 19,331 | $ 12,596 | |||||||||
Predecessor | ||||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||||||||||
Net sales | $ 9,810 | |||||||||||
Predecessor | U.S | ||||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||||||||||
Net sales | 9,334 | |||||||||||
Predecessor | International | ||||||||||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||||||||||
Net sales | $ 476 |
Summary of Significant Accoun44
Summary of Significant Accounting Policies - Long-Lived Assets in United States and Outside of United States (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Property and equipment, net | $ 17,151 | $ 9,854 |
U.S | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Property and equipment, net | 16,757 | 9,230 |
International | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||
Property and equipment, net | $ 394 | $ 624 |
Summary of Significant Accoun45
Summary of Significant Accounting Policies - Reconciliation of Sales Allowances (Details) - Sales Allowances - USD ($) $ in Thousands | 1 Months Ended | 11 Months Ended | 12 Months Ended | |
Jan. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | |
Valuation And Qualifying Accounts Disclosure [Line Items] | ||||
Balance beginning | $ 3,866 | $ 1,965 | ||
Charges | $ 6,408 | 24,427 | 13,903 | |
Deductions | (6,068) | (16,366) | (12,002) | |
Balance ending | 1,965 | $ 11,927 | $ 3,866 | |
Predecessor | ||||
Valuation And Qualifying Accounts Disclosure [Line Items] | ||||
Balance beginning | $ 2,411 | $ 1,625 | ||
Charges | 306 | |||
Deductions | (1,092) | |||
Balance ending | $ 1,625 |
Acquisition of e.l.f. Cosmeti46
Acquisition of e.l.f. Cosmetics, Inc. and Subsidiaries - Additional Information (Details) $ in Thousands | 1 Months Ended | 11 Months Ended | 12 Months Ended | |
Jan. 31, 2014USD ($)Credit_Facilityshares | Dec. 31, 2014USD ($) | Dec. 31, 2016USD ($)IntangibleAsset | Dec. 31, 2015USD ($) | |
Business Acquisition [Line Items] | ||||
Acquisition date | Jan. 31, 2014 | |||
Percentage of outstanding shares acquired | 100.00% | |||
Total purchase price | $ 271,000 | |||
Business acquisition paid in cash | 239,100 | |||
Business acquisition, net of cash acquired | 237,900 | $ 237,891 | ||
Aggregate fair value of shares issued | 30,000 | |||
Contingent consideration payable to seller | 1,900 | $ 1,900 | ||
Business combination funds raised for acquisition | 250,000 | |||
Proceeds from credit facilities for acquisition | $ 145,000 | 15,250 | 5,500 | $ 27,150 |
Number of credit facilities | Credit_Facility | 2 | |||
Deferred financing costs | $ 5,300 | $ 566 | $ 3,187 | |
Goodwill percentage of total purchase consideration | 58.00% | |||
Goodwill recognized, description | The value of goodwill was 58% of the total purchase consideration and is primarily attributable to the assembled workforce and expected future growth. The goodwill is not deductible for tax purposes. | |||
Number of intangible assets | IntangibleAsset | 3 | |||
Fair market adjustment to acquired inventory | $ 1,300 | |||
Minimum | ||||
Business Acquisition [Line Items] | ||||
Useful lives of intangible assets | 3 years | |||
Maximum | ||||
Business Acquisition [Line Items] | ||||
Useful lives of intangible assets | 10 years | |||
Customer Relationships | Minimum | ||||
Business Acquisition [Line Items] | ||||
Useful lives of intangible assets | 3 years | |||
Customer Relationships | Maximum | ||||
Business Acquisition [Line Items] | ||||
Useful lives of intangible assets | 10 years | |||
Favorable Leases | Minimum | ||||
Business Acquisition [Line Items] | ||||
Useful lives of intangible assets | 27 months | |||
Favorable Leases | Maximum | ||||
Business Acquisition [Line Items] | ||||
Useful lives of intangible assets | 71 months | |||
Selling, General and Administrative Expenses | ||||
Business Acquisition [Line Items] | ||||
Acquisition-related costs | $ 2,800 | |||
TPG Growth II Management, LLC | ||||
Business Acquisition [Line Items] | ||||
Proceeds from issuance of shares | $ 105,000 | |||
Convertible Preferred Stock | ||||
Business Acquisition [Line Items] | ||||
Shares issued for acquisition | shares | 135,041 | |||
Aggregate fair value of shares issued | $ 135,000 | |||
Convertible Preferred Stock | e.l.f. Cosmetics, Inc. | ||||
Business Acquisition [Line Items] | ||||
Shares issued for acquisition | shares | 29,978 | |||
Convertible Preferred Stock | TPG Growth II Management, LLC | ||||
Business Acquisition [Line Items] | ||||
Number of shares issued | shares | 105,063 | |||
Common stock | ||||
Business Acquisition [Line Items] | ||||
Shares issued for acquisition | shares | 6,126 | |||
Common stock | TPG Growth II Management, LLC | ||||
Business Acquisition [Line Items] | ||||
Number of shares issued | shares | 21,467 |
Acquisition of e.l.f. Cosmeti47
Acquisition of e.l.f. Cosmetics, Inc. and Subsidiaries - Summary of Fair Values of Assets Acquired and Liabilities Assumed at Acquisition Date (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Business Acquisition [Line Items] | ||
Tangible assets acquired | $ 51,755 | |
Goodwill | 157,264 | $ 157,264 |
Liabilities assumed | (74,990) | |
Fair value of total purchase consideration | 271,009 | |
Customer Relationships, Retailers | ||
Business Acquisition [Line Items] | ||
Intangible asset | 68,800 | |
Customer Relationships, E-Commerce | ||
Business Acquisition [Line Items] | ||
Intangible asset | 3,800 | |
Favorable Leases | ||
Business Acquisition [Line Items] | ||
Intangible asset | 580 | |
Trademark | ||
Business Acquisition [Line Items] | ||
Intangible asset | $ 63,800 |
Acquisition of e.l.f. Cosmeti48
Acquisition of e.l.f. Cosmetics, Inc. and Subsidiaries - Unaudited Pro Forma Financial Information (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2014USD ($) | |
Business Combinations [Abstract] | |
Net sales | $ 144,944 |
Net loss | $ (9,778) |
Goodwill and Other Intangible49
Goodwill and Other Intangible Assets - Information Regarding Company's Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule Of Intangible Assets And Goodwill [Line Items] | ||
Total finite-lived intangibles, Gross carrying amount | $ 73,280 | $ 73,280 |
Total finite-lived intangibles, Accumulated amortization | (24,077) | (15,798) |
Total finite-lived intangibles, Net carrying amount | 49,203 | 57,482 |
Goodwill, Gross carrying amount | 157,264 | 157,264 |
Goodwill, Net carrying amount | 157,264 | 157,264 |
Total goodwill and other intangibles, Gross carrying amount | 294,344 | 294,344 |
Total goodwill and other intangibles, Accumulated amortization | (24,077) | (15,798) |
Total goodwill and other intangibles, Net carrying amount | 270,267 | 278,546 |
Trademark | ||
Schedule Of Intangible Assets And Goodwill [Line Items] | ||
Indefinite lived intangibles, Net carrying amount | $ 63,800 | 63,800 |
Indefinite-lived intangibles, Estimated useful life | Indefinite | |
Customer Relationships, Retailers | ||
Schedule Of Intangible Assets And Goodwill [Line Items] | ||
Total finite-lived intangibles, Gross carrying amount | $ 68,800 | 68,800 |
Total finite-lived intangibles, Accumulated amortization | (20,067) | (13,187) |
Total finite-lived intangibles, Net carrying amount | $ 48,733 | $ 55,613 |
Amortization of intangible assets with finite useful lives | 10 years | 10 years |
Customer Relationships, E-Commerce | ||
Schedule Of Intangible Assets And Goodwill [Line Items] | ||
Total finite-lived intangibles, Gross carrying amount | $ 3,900 | $ 3,900 |
Total finite-lived intangibles, Accumulated amortization | (3,736) | (2,436) |
Total finite-lived intangibles, Net carrying amount | $ 164 | $ 1,464 |
Amortization of intangible assets with finite useful lives | 3 years | 3 years |
Favorable Leases, Net | ||
Schedule Of Intangible Assets And Goodwill [Line Items] | ||
Total finite-lived intangibles, Gross carrying amount | $ 580 | $ 580 |
Total finite-lived intangibles, Accumulated amortization | (274) | (175) |
Total finite-lived intangibles, Net carrying amount | $ 306 | $ 405 |
Finite-lived intangibles, Estimated useful life | Varies |
Goodwill and Other Intangible50
Goodwill and Other Intangible Assets - Additional Information (Details) - USD ($) | 1 Months Ended | 11 Months Ended | 12 Months Ended | |
Jan. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule Of Intangible Assets And Goodwill [Line Items] | ||||
Amortization of intangible assets | $ 7,552,000 | $ 8,279,000 | $ 8,246,000 | |
Goodwill | 157,264,000 | $ 157,264,000 | ||
Impairment of finite-lived intangible assets | $ 0 | |||
Predecessor | ||||
Schedule Of Intangible Assets And Goodwill [Line Items] | ||||
Amortization of intangible assets | $ 11,000 | |||
Goodwill | 700,000 | |||
Finite lived intangible assets acquired | 600,000 | |||
Impairments of goodwill or intangible assets | $ 0 |
Goodwill and Other Intangible51
Goodwill and Other Intangible Assets - Estimated Future Amortization Expense Related to Finite-lived Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
2,017 | $ 7,121 | |
2,018 | 7,007 | |
2,019 | 6,982 | |
2,020 | 6,880 | |
Thereafter | 21,213 | |
Total finite-lived intangibles, Net carrying amount | $ 49,203 | $ 57,482 |
Property and Equipment - Summar
Property and Equipment - Summary of Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Property Plant And Equipment [Abstract] | ||
Machinery, equipment and software | $ 3,956 | $ 1,322 |
Leasehold improvements | 7,620 | 1,880 |
Furniture and fixtures | 2,771 | 625 |
Store fixtures | 8,921 | 8,147 |
Property and equipment, gross | 23,268 | 11,974 |
Less: Accumulated depreciation and amortization | (6,117) | (2,120) |
Property and equipment, net | $ 17,151 | $ 9,854 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Details) - USD ($) | 1 Months Ended | 11 Months Ended | 12 Months Ended | |
Jan. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property Plant And Equipment [Line Items] | ||||
Depreciation and amortization expense | $ 400,000 | $ 4,900,000 | $ 2,000,000 | |
Predecessor | ||||
Property Plant And Equipment [Line Items] | ||||
Depreciation and amortization expense | $ 30,000 |
Accrued Expenses and Other Cu54
Accrued Expenses and Other Current Liabilities - Summary of Accrued Expenses (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Payables And Accruals [Abstract] | ||
Accrued expenses | $ 9,537 | $ 2,681 |
Other current liabilities | 9,249 | 4,752 |
Accrued compensation | 7,111 | 6,280 |
Early exercised option deposit liability | 4,074 | |
Income taxes payable | 3,705 | |
Accrued expenses and other current liabilities | $ 33,676 | $ 13,713 |
Fair Value of Financial Instr55
Fair Value of Financial Instruments - Summary of Fair Value of Financial Liabilities (Details) - Fair Value Measurements, Recurring Basis - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Financial liabilities: | ||
Foreign currency forward contracts | $ 10,702 | |
Long-term debt, including current portion | $ 165,393 | 148,106 |
Total financial liabilities | 165,393 | 158,808 |
Level 2 | ||
Financial liabilities: | ||
Foreign currency forward contracts | 10,702 | |
Long-term debt, including current portion | 165,393 | 148,106 |
Total financial liabilities | $ 165,393 | $ 158,808 |
Fair Value of Financial Instr56
Fair Value of Financial Instruments - Summary of Fair Value of Financial Liabilities (Parenthetical) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value Measurements, Recurring Basis | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Current portion of long-term debt | $ 8,650 | $ 10,325 |
Derivatives - Additional Inform
Derivatives - Additional Information (Details) - USD ($) | 1 Months Ended | 11 Months Ended | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | |
Foreign Currency Fair Value Hedge Derivative [Line Items] | ||||
Realized and unrealized gains (losses) from forward contracts | $ (6,900,000) | $ 1,100,000 | $ (7,900,000) | |
Foreign Currency Contracts | ||||
Foreign Currency Fair Value Hedge Derivative [Line Items] | ||||
Forward contracts outstanding | $ 0 | |||
Predecessor | ||||
Foreign Currency Fair Value Hedge Derivative [Line Items] | ||||
Realized and unrealized gains (losses) from forward contracts | $ (100,000) |
Derivatives - Summary of Aggreg
Derivatives - Summary of Aggregate Notional Amount of Outstanding Forward Contracts (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Foreign Currency Contracts | Derivatives not designated as hedging instruments | |
Foreign Currency Fair Value Hedge Derivative [Line Items] | |
Aggregate notional amount | $ 148,978 |
Derivatives - Summary of Deriva
Derivatives - Summary of Derivative Assets and Derivative Liabilities on Consolidated Balance Sheets on Net Basis (Details) $ in Thousands | Dec. 31, 2015USD ($) |
Offsetting Liabilities [Line Items] | |
Net amount recognized in the consolidated balance sheets | $ 10,702 |
Gross amount | 10,702 |
Foreign Currency Contracts | |
Offsetting Liabilities [Line Items] | |
Net amount recognized in the consolidated balance sheets | 10,702 |
Gross amount | $ 10,702 |
Debt - Additional Information (
Debt - Additional Information (Details) - USD ($) | Dec. 23, 2016 | Sep. 27, 2016 | Jun. 07, 2016 | Dec. 31, 2016 | Sep. 30, 2016 | Dec. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Jan. 31, 2014 |
Debt Instrument [Line Items] | |||||||||
Payment of special dividend | $ 72,000,000 | $ 68,000,000 | |||||||
Repayment of senior secured credit facility | $ 5,600,000 | $ 13,200,000 | $ 29,100,000 | ||||||
Revolving Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Amounts available under senior secured credit facility | 25,000,000 | ||||||||
Term Loan | |||||||||
Debt Instrument [Line Items] | |||||||||
Maturity date | Dec. 23, 2021 | ||||||||
Line of credit facility, frequency of payments | Quarterly | ||||||||
Net proceeds in excess of term loan | $ 2,500,000 | ||||||||
Term Loan | March 31, 2017 Through December 31, 2018 | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit facility, periodic payment | 2,062,500 | ||||||||
Term Loan | March 31, 2019 Through December 31, 2019 | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit facility, periodic payment | 2,475,000 | ||||||||
Term Loan | March 31, 2020 Through December 31, 2020 | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit facility, periodic payment | 3,093,750 | ||||||||
Term Loan | March 31, 2021 Through September 30, 2021 | |||||||||
Debt Instrument [Line Items] | |||||||||
Line of credit facility, periodic payment | 4,125,000 | ||||||||
2014 Senior Secured Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Write off of unamortized debt discount and debt issuance costs | $ 1,700,000 | ||||||||
Write off of other fees associated with refinancing transaction | 100,000 | ||||||||
Unamortized debt discount | 700,000 | 700,000 | |||||||
Unamortized debt issuance costs | 800,000 | $ 800,000 | |||||||
2014 Senior Secured Credit Facility | Revolving Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Amounts available under senior secured credit facility | 25,000,000 | $ 20,000,000 | |||||||
Credit facility, interest rate | 6.25% | ||||||||
2014 Senior Secured Credit Facility | Term Loan | |||||||||
Debt Instrument [Line Items] | |||||||||
Amounts available under senior secured credit facility | 105,000,000 | ||||||||
Credit facility, interest rate | 6.25% | ||||||||
Line of credit outstanding amount | $ 64,000,000 | ||||||||
2014 Senior Secured Credit Facility | Second Lien Term Loan | |||||||||
Debt Instrument [Line Items] | |||||||||
Amounts available under senior secured credit facility | $ 40,000,000 | ||||||||
Credit facility, interest rate | 11.00% | ||||||||
Repayment of senior secured credit facility | $ 40,000,000 | ||||||||
Debt prepayment penalty | $ 400,000 | ||||||||
Write off of unamortized debt issuance costs | $ 500,000 | ||||||||
Senior Secured Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Amounts available under senior secured credit facility | $ 200,000,000 | ||||||||
Line of credit facility, expiration period | 5 years | ||||||||
Debt instrument, interest rate, description | Both the Revolving Credit Facility and the Term Loan Facility bear interest, at the Company’s option, at a rate per annum equal to either (i) the greater of (x) 3.00% and (y) an adjusted LIBOR rate determined by reference to the cost of funds for U.S. dollar deposits for the applicable interest period plus an applicable margin ranging from 2.00% to 3.50% based on the Company’s consolidated total net leverage ratio or (ii) the greater of (x) 2.00% and (y) a floating base rate plus an applicable margin ranging from 1.00% to 2.50% based on the Company’s consolidated total net leverage ratio. | ||||||||
Cost incurred related to credit facility | 2,300,000 | $ 2,300,000 | |||||||
Debt instrument amortization period | 5 years | ||||||||
Senior Secured Credit Facility | Lender Fees | |||||||||
Debt Instrument [Line Items] | |||||||||
Cost incurred related to credit facility | 2,100,000 | $ 2,100,000 | |||||||
Senior Secured Credit Facility | Third-Party Fees | |||||||||
Debt Instrument [Line Items] | |||||||||
Cost incurred related to credit facility | $ 200,000 | $ 200,000 | |||||||
Senior Secured Credit Facility | LIBOR | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, basis spread on interest rate | 3.00% | ||||||||
Senior Secured Credit Facility | Base Rate | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, basis spread on interest rate | 2.00% | ||||||||
Senior Secured Credit Facility | Maximum | LIBOR | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, basis spread on interest rate | 3.50% | ||||||||
Senior Secured Credit Facility | Maximum | Base Rate | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, basis spread on interest rate | 2.50% | ||||||||
Senior Secured Credit Facility | Minimum | LIBOR | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, basis spread on interest rate | 2.00% | ||||||||
Senior Secured Credit Facility | Minimum | Base Rate | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument, basis spread on interest rate | 1.00% | ||||||||
Senior Secured Credit Facility | Revolving Credit Facility | |||||||||
Debt Instrument [Line Items] | |||||||||
Amounts available under senior secured credit facility | $ 35,000,000 | ||||||||
Credit facility, interest rate | 4.50% | 4.50% | |||||||
Maturity date | Dec. 23, 2021 | ||||||||
Revolving credit facility, unused amount | $ 34,500,000 | $ 34,500,000 | |||||||
Senior Secured Credit Facility | Revolving Credit Facility | Maximum | |||||||||
Debt Instrument [Line Items] | |||||||||
Revolving credit facility, commitment fee | 0.35% | ||||||||
Senior Secured Credit Facility | Revolving Credit Facility | Minimum | |||||||||
Debt Instrument [Line Items] | |||||||||
Revolving credit facility, commitment fee | 0.25% | ||||||||
Senior Secured Credit Facility | Term Loan | |||||||||
Debt Instrument [Line Items] | |||||||||
Amounts available under senior secured credit facility | $ 165,000,000 | ||||||||
Credit facility, interest rate | 4.50% | 4.50% | |||||||
Senior Secured Credit Facility | Letter of Credit | |||||||||
Debt Instrument [Line Items] | |||||||||
Amounts available under senior secured credit facility | 7,000,000 | ||||||||
Senior Secured Credit Facility | Swing Line Loan | |||||||||
Debt Instrument [Line Items] | |||||||||
Amounts available under senior secured credit facility | $ 5,000,000 |
Debt - Schedule of Outstanding
Debt - Schedule of Outstanding Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Jan. 31, 2014 |
Debt Instrument [Line Items] | |||
Total debt | $ 165,393 | $ 148,106 | |
Less: debt issuance costs | (566) | (3,187) | $ (5,300) |
Total debt, net of issuance costs | 164,827 | 144,919 | |
Less: current portion | (8,650) | (10,325) | |
Long-term portion of debt | 156,177 | 134,594 | |
Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Total debt | 7,700 | ||
Term Loan | |||
Debt Instrument [Line Items] | |||
Total debt | 162,627 | 100,406 | |
Second Lien Term Loan | |||
Debt Instrument [Line Items] | |||
Total debt | $ 40,000 | ||
Capital Lease Obligations | |||
Debt Instrument [Line Items] | |||
Total debt | $ 2,766 |
Debt - Schedule of Aggregate Fu
Debt - Schedule of Aggregate Future Minimum Principal Payments on the Term Loan (Details) - Term Loan $ in Thousands | Dec. 31, 2016USD ($) |
Debt Instrument [Line Items] | |
2,017 | $ 8,250 |
2,018 | 8,250 |
2,019 | 9,900 |
2,020 | 12,375 |
Thereafter | 126,225 |
Total | $ 165,000 |
Debt - Schedule of Components o
Debt - Schedule of Components of Interest Expense (Details) - USD ($) $ in Thousands | 1 Months Ended | 11 Months Ended | 12 Months Ended | |
Jan. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | |
Debt Instrument [Line Items] | ||||
Amortization of debt issuance costs | $ 993 | $ 1,281 | $ 1,101 | |
Loss on extinguishment of debt | 2,736 | |||
Other | (9) | (68) | ||
Interest expense, net | 11,545 | 16,283 | 12,721 | |
Predecessor | ||||
Debt Instrument [Line Items] | ||||
Interest expense, net | $ 128 | |||
Term Loan | ||||
Debt Instrument [Line Items] | ||||
Interest on debt | 10,192 | 12,076 | 10,988 | |
Term Loan | Predecessor | ||||
Debt Instrument [Line Items] | ||||
Interest on debt | 126 | |||
Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Interest on debt | $ 369 | $ 190 | $ 700 | |
Revolving Credit Facility | Predecessor | ||||
Debt Instrument [Line Items] | ||||
Interest on debt | $ 2 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions | 1 Months Ended | 11 Months Ended | 12 Months Ended | |
Jan. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | |
Loss Contingencies [Line Items] | ||||
Total rent expense | $ 1.9 | $ 4.1 | $ 3 | |
Estimated future sublease income | $ 0.9 | |||
Minimum | ||||
Loss Contingencies [Line Items] | ||||
Lease expiration year | 2,018 | |||
Maximum | ||||
Loss Contingencies [Line Items] | ||||
Lease expiration year | 2,026 | |||
Predecessor | ||||
Loss Contingencies [Line Items] | ||||
Total rent expense | $ 0.1 |
Commitments and Contingencies65
Commitments and Contingencies - Schedule of Future Minimum Lease Payments under Operating Leases (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
2,017 | $ 4,789 |
2,018 | 4,726 |
2,019 | 4,636 |
2,020 | 4,188 |
Thereafter | 13,397 |
Total | $ 31,736 |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Income (Loss) Before Income Taxes (Details) - USD ($) $ in Thousands | 1 Months Ended | 11 Months Ended | 12 Months Ended | |
Jan. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax [Line Items] | ||||
Domestic | $ (13,517) | $ 9,677 | $ 8,053 | |
Foreign | 686 | 135 | 625 | |
Income (loss) before provision for income taxes | $ (12,831) | $ 9,812 | $ 8,678 | |
Predecessor | ||||
Income Tax [Line Items] | ||||
Domestic | $ 1,709 | |||
Foreign | (74) | |||
Income (loss) before provision for income taxes | $ 1,635 |
Income Taxes - Schedule of Co67
Income Taxes - Schedule of Components of (Provision) Benefit for Income Taxes (Details) - USD ($) $ in Thousands | 1 Months Ended | 11 Months Ended | 12 Months Ended | |
Jan. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current: | ||||
U.S. federal | $ (363) | $ (9,978) | $ (6,837) | |
State | (111) | (2,096) | (1,026) | |
Foreign | (257) | (391) | ||
Total current | (731) | (12,074) | (8,254) | |
Deferred: | ||||
U.S. federal | 3,881 | 8,384 | 3,710 | |
State | 324 | (773) | 201 | |
Foreign | 71 | (36) | 22 | |
Total deferred | 4,276 | 7,575 | 3,933 | |
Total (provision) benefit for income taxes | $ 3,545 | $ (4,499) | $ (4,321) | |
Predecessor | ||||
Current: | ||||
U.S. federal | $ 1,394 | |||
State | (5) | |||
Foreign | 18 | |||
Total current | 1,407 | |||
Deferred: | ||||
U.S. federal | (1,881) | |||
State | (68) | |||
Total deferred | (1,949) | |||
Total (provision) benefit for income taxes | $ (542) |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconciliation of Federal Statutory Rate to Company's Effective Tax Rate (Details) | 1 Months Ended | 11 Months Ended | 12 Months Ended | |
Jan. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax [Line Items] | ||||
Federal statutory rate | 34.00% | 35.00% | 35.00% | |
State tax-net of federal benefit | 1.70% | 0.70% | 2.20% | |
State tax deferred rate change | 0.00% | 18.70% | 0.30% | |
Impact of foreign operations | 1.00% | 0.10% | (0.20%) | |
U.S. subpart F income | (2.20%) | 0.50% | 2.50% | |
Nondeductible transaction-related costs | (6.50%) | 2.00% | 0.00% | |
Uncertain tax positions | (0.20%) | 2.00% | 5.30% | |
Stock based compensation | 0.00% | (16.80%) | 0.60% | |
Others | (0.20%) | 3.70% | 4.10% | |
Effective tax rate | 27.60% | 45.90% | 49.80% | |
Predecessor | ||||
Income Tax [Line Items] | ||||
Federal statutory rate | 34.00% | |||
State tax-net of federal benefit | 1.70% | |||
State tax deferred rate change | 0.00% | |||
Impact of foreign operations | 0.40% | |||
U.S. subpart F income | 0.00% | |||
Nondeductible transaction-related costs | 0.00% | |||
Uncertain tax positions | 0.00% | |||
Stock based compensation | 0.00% | |||
Others | (3.00%) | |||
Effective tax rate | 33.10% |
Income Taxes - Schedule of Co69
Income Taxes - Schedule of Components of Net Deferred Taxes (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred tax assets: | ||
Compensation | $ 1,848 | $ 1,969 |
Inventories and receivables | 6,905 | 1,604 |
Accrued expenses | 1,996 | 2,120 |
Stock compensation | 1,967 | 238 |
Net operating losses | 232 | |
Other | 1,304 | 446 |
Deferred tax assets | 14,252 | 6,377 |
Deferred tax liabilities: | ||
Goodwill | 2,562 | 1,614 |
Fixed assets | 2,699 | 1,620 |
Intangible assets | 42,587 | 44,493 |
Other | 579 | 514 |
Deferred tax liabilities | 48,427 | 48,241 |
Net deferred tax liabilities | $ 34,175 | $ 41,864 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities Within the Same Jurisdiction (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Income Tax Disclosure [Abstract] | ||
Noncurrent deferred tax assets | $ 37 | $ 262 |
Noncurrent deferred tax liabilities | 34,212 | 42,126 |
Net deferred tax liabilities | $ 34,175 | $ 41,864 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 1 Months Ended | 11 Months Ended | 12 Months Ended | |
Jan. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax [Line Items] | ||||
Foreign net operating loss carryforwards | $ 900,000 | |||
Unrecognized tax benefits that would impact effective tax rate | 700,000 | $ 1,000,000 | ||
Unrecognized tax benefits expected to reverse in next twelve months | 500,000 | |||
Accrued gross interest and penalties | 200,000 | 31,000 | ||
Recognized net interest expense | $ 0 | $ 100,000 | $ 20,000 | |
Predecessor | ||||
Income Tax [Line Items] | ||||
Recognized net interest expense | $ 0 | |||
Foreign | ||||
Income Tax [Line Items] | ||||
Net operating loss carryforwards expiration beginning year | 2,020 | |||
Net operating loss carryforwards period | 5 years |
Income Taxes - Schedule of Unre
Income Taxes - Schedule of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 1 Months Ended | 11 Months Ended | 12 Months Ended | |
Jan. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Contingency [Line Items] | ||||
Balance at beginning of year | $ 581 | $ 1,256 | $ 607 | |
Increases for prior year tax positions | 0 | 438 | 1 | |
Increases for current year tax positions | 26 | 103 | 648 | |
Decreases for prior year tax positions | 0 | (589) | 0 | |
Decreases due to settlements | 0 | 0 | 0 | |
Decreases due to statutes lapsing | 0 | 0 | 0 | |
Balance at end of year | $ 581 | 607 | $ 1,208 | $ 1,256 |
Predecessor | ||||
Income Tax Contingency [Line Items] | ||||
Balance at beginning of year | 581 | $ 581 | ||
Increases for prior year tax positions | 0 | |||
Increases for current year tax positions | 0 | |||
Decreases for prior year tax positions | 0 | |||
Decreases due to settlements | 0 | |||
Decreases due to statutes lapsing | 0 | |||
Balance at end of year | $ 581 |
Preferred Stock - Additional In
Preferred Stock - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 11 Months Ended | 12 Months Ended | |
Jan. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | |
Class Of Stock [Line Items] | ||||
Preferred stock, shares authorized | 30,000,000 | 0 | ||
Preferred stock, par value | $ 0.01 | $ 0.01 | ||
Preferred stock, shares outstanding | 0 | 0 | ||
Aggregate fair value of shares issued | $ 30,000 | |||
Conversion of preferred stock into common stock | 37,271,375 | |||
Convertible preferred stock accretion | $ 10,287 | $ 436,300 | $ 51,967 | |
Accreted dividend rate percentage | 8.00% | |||
Convertible Preferred Stock | ||||
Class Of Stock [Line Items] | ||||
Shares issued for acquisition | 135,041 | |||
Aggregate fair value of shares issued | $ 135,000 | |||
Convertible preferred stock accretion | $ 10,287 | $ 436,317 | $ 51,967 |
Stock-based Compensation - Addi
Stock-based Compensation - Additional Information (Details) | Sep. 22, 2016shares | Aug. 31, 2016USD ($) | Jun. 30, 2016USD ($) | Jul. 31, 2016USD ($)$ / sharesshares | Jun. 30, 2016USD ($)Employee$ / shares | Dec. 31, 2014USD ($) | Dec. 31, 2016USD ($)$ / sharesshares | Dec. 31, 2015USD ($)shares | Dec. 31, 2014shares | Nov. 14, 2014shares |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Loan repaid by debtors | $ | $ 7,912,000 | |||||||||
Decrease in exercise price due to modification impact, per share | $ / shares | $ 1.79 | |||||||||
Number of individuals affected | Employee | 43 | |||||||||
Incremental compensation cost, recognized | $ | $ 2,700,000 | |||||||||
Board Members | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Number of individuals affected | Employee | 3 | |||||||||
Key Management Personnel | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Loans to debtors | $ | $ 10,400,000 | |||||||||
Frequency of interest payment | semi-annually | |||||||||
Maturity date | Jan. 31, 2018 | |||||||||
Proceed from dividend used to pay down outstanding principal balance | $ | $ 4,100,000 | |||||||||
Loan repaid by debtors | $ | $ 7,900,000 | $ 12,000,000 | ||||||||
Key Management Personnel | July 2016 Add-On Note | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Exercise of stock options (in shares) | 808,028 | |||||||||
Loans to debtors | $ | $ 1,500,000 | |||||||||
Interest rate on notes payable | 0.71% | |||||||||
Frequency of interest payment | semi-annually | |||||||||
Maturity date | Jul. 31, 2018 | |||||||||
Stock options exercise price | $ / shares | $ 1.84 | |||||||||
Early Exercise Of Stock Options | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Exercise of stock options (in shares) | 3,420,243 | |||||||||
Number of options, vested | 1,869,817 | |||||||||
Number of options, forfeited | 27,600 | |||||||||
Liability related to potential repurchase obligation, shares | 1,522,826 | |||||||||
Early Exercise Of Stock Options | Accrued Expenses And Other Current Liabilities | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Liability related to potential repurchase obligation | $ | $ 4,100,000 | |||||||||
Modified Awards | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Incremental compensation cost, recognized | $ | $ 700,000 | |||||||||
Restricted Stock Units | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Restricted stock units granted | 596,217 | |||||||||
Unrecognized stock-based compensation cost, expected weighted-average period of recognition | 3 years 8 months 12 days | |||||||||
Stock-based compensation expense | $ | $ 700,000 | |||||||||
Weighted average grant date fair value | $ / shares | $ 17 | |||||||||
Unrecognized stock-based compensation cost | $ | $ 9,300,000 | |||||||||
Service-based Stock Options | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Exercise of stock options (in shares) | 2,447,443 | |||||||||
Number of options, forfeited | 212,589 | |||||||||
Stock options exercise price | $ / shares | $ 3.55 | |||||||||
Options outstanding, granted | 1,872,897 | |||||||||
Unrecognized stock-based compensation cost | $ | $ 9,400,000 | |||||||||
Unrecognized stock-based compensation cost, expected weighted-average period of recognition | 3 years 9 months 18 days | |||||||||
Options granted, maximum contractual life | 10 years | |||||||||
Expected dividend yield | 0.00% | 0.00% | 0.00% | |||||||
Stock-based compensation expense | $ | $ 287,000 | $ 4,286,000 | $ 503,000 | |||||||
Performance-based Stock Options | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Number of options, forfeited | 1,265,992 | |||||||||
Options outstanding, granted | 276,690 | |||||||||
Unrecognized stock-based compensation cost | $ | $ 300,000 | |||||||||
Unrecognized stock-based compensation cost, expected weighted-average period of recognition | 2 months 12 days | |||||||||
Options did not vest and were forfeited | 919,611 | |||||||||
Stock-based compensation expense | $ | $ 0 | $ 1,813,000 | $ 0 | |||||||
2014 Plan | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Shares reserved for grant | 0 | 9,460,556 | ||||||||
Common stock reserved for issuance | 0 | 607,276 | ||||||||
Shares forfeited | 79,350 | |||||||||
2016 Plan | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Shares reserved for grant | 5,430,690 | 5,510,040 | ||||||||
Common stock reserved for issuance | 3,683,028 | |||||||||
2016 Plan | Restricted Stock Units | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Restricted stock units granted | 596,217 | |||||||||
2016 Plan | Options | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Options outstanding, granted | 1,250,517 | |||||||||
2014 Phantom Equity Plan | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Restricted stock units granted | 0 | 62,100 | 131,100 | |||||||
Stock-based compensation expense | $ | $ 0 | |||||||||
Unrecognized stock-based compensation cost | $ | $ 4,500,000 | |||||||||
Number of shares authorized to grant | 220,800 | |||||||||
Maximum | Key Management Personnel | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Interest rate on notes payable | 0.81% | |||||||||
Maximum | Performance-based Stock Options | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Rate of return from potential liquidity event range multiplier | 6.50% | |||||||||
Maximum | 2016 Plan | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Additional common stock reserved for issuance | 4,341,200 | |||||||||
Minimum | Key Management Personnel | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Interest rate on notes payable | 0.75% | |||||||||
Minimum | Performance-based Stock Options | ||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||||
Rate of return from potential liquidity event range multiplier | 3.00% |
Stock-based Compensation - Summ
Stock-based Compensation - Summary of Service-based Stock Option Activity and Related Information (Details) - Service-based Stock Options $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($)$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Options outstanding, Beginning balance | shares | 3,997,502 |
Options outstanding, Granted | shares | 1,872,897 |
Options outstanding, Exercised | shares | (2,447,443) |
Options outstanding, Forfeited | shares | (212,589) |
Options outstanding, Cancelled | shares | (41,400) |
Options outstanding, Ending balance | shares | 3,168,967 |
Options outstanding, Exercisable | shares | 1,189,880 |
Weighted-average exercise price, Beginning balance | $ / shares | $ 3.66 |
Weighted-average exercise price, Granted | $ / shares | 13.58 |
Weighted-average exercise price, Exercised | $ / shares | 3.55 |
Weighted-average exercise price, Forfeited | $ / shares | 4.40 |
Weighted-average exercise price, Cancelled | $ / shares | 3.62 |
Weighted-average exercise price, Ending balance | $ / shares | 8.55 |
Weighted-average exercise price, Exercisable | $ / shares | $ 1.86 |
Weighted-average remaining contractual life (in years), Outstanding | 8 years 8 months 12 days |
Weighted-average remaining contractual life(in years), Exercisable | 7 years 3 months 18 days |
Aggregate intrinsic values, Outstanding | $ | $ 64,602 |
Aggregate intrinsic values, Exercisable | $ | $ 32,223 |
Stock-based Compensation - Su76
Stock-based Compensation - Summary of Service-based Stock Option Activity and Related Information (Parenthetical) (Details) - Service-based Stock Options - $ / shares | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Weighted-average exercise price, modification impact per share | $ 8.55 | $ 3.66 |
Exercise price modification date | Jun. 7, 2016 | |
Exercise Price Modification | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Weighted-average exercise price, modification impact per share | $ 1.79 |
Stock-based Compensation - Su77
Stock-based Compensation - Summary of Additional Information Relating to Service-based Options (Details) - Service-based Stock Options - USD ($) $ / shares in Units, $ in Thousands | 11 Months Ended | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 287 | $ 4,286 | $ 503 |
Intrinsic value of options exercised | $ 2,486 | $ 12 | |
Weighted-average grant date fair value of options granted (per share) | $ 0.60 | $ 5.07 | $ 0.99 |
Stock-based Compensation - Su78
Stock-based Compensation - Summary of Additional Information Relating to Service-based Options (Parenthetical) (Details) - Service-based Stock Options - $ / shares | 1 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2016 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Share based compensation award plan modification incremental options | 640,600 | |
Weighted-average incremental fair value of options per share | $ 3.63 | |
Options modified period | 2016-06 |
Stock-based Compensation - Su79
Stock-based Compensation - Summary of Weighted-average Assumptions (Details) - Service-based Stock Options | 11 Months Ended | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected term (in years) | 4 years 8 months 12 days | 5 years 10 months 24 days | 4 years 1 month 6 days |
Expected volatility | 45.00% | 36.50% | 40.92% |
Risk-free interest rate | 1.34% | 1.34% | 1.51% |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Stock-based Compensation - Su80
Stock-based Compensation - Summary of Performance-based Stock Option Activity and Related Information (Details) - Performance-based Stock Options $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($)$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Options outstanding, Beginning balance | shares | 4,848,869 |
Options outstanding, Granted | shares | 276,690 |
Options outstanding, Forfeited | shares | (1,265,992) |
Options outstanding, Cancelled | shares | (23,460) |
Options outstanding, Ending balance | shares | 3,836,107 |
Weighted-average exercise price, Beginning balance | $ / shares | $ 3.64 |
Weighted-average exercise price, Granted | $ / shares | 6.69 |
Weighted-average exercise price, Forfeited | $ / shares | 3.57 |
Weighted-average exercise price, Cancelled | $ / shares | 3.62 |
Weighted-average exercise price, Ending balance | $ / shares | $ 2.46 |
Weighted-average remaining contractual life (in years), Outstanding | 7 years 9 months 18 days |
Aggregate intrinsic values, Outstanding | $ | $ 101,592 |
Stock-based Compensation - Su81
Stock-based Compensation - Summary of Performance-based Stock Option Activity and Related Information (Parenthetical) (Details) - Performance-based Stock Options - $ / shares | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Weighted-average exercise price, modification impact per share | $ 2.46 | $ 3.64 |
Exercise price modification date | Jun. 7, 2016 | |
Exercise Price Modification | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Weighted-average exercise price, modification impact per share | $ 1.79 |
Stock-based Compensation - Su82
Stock-based Compensation - Summary of Additional Information Relating to Performance-based Stock Options (Details) - Performance-based Stock Options - USD ($) | 11 Months Ended | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 0 | $ 1,813,000 | $ 0 |
Weighted-average grant date fair value of options granted (per share) | $ 0.40 | $ 1.52 | $ 0.50 |
Stock-based Compensation - Su83
Stock-based Compensation - Summary of Additional Information Relating to Performance-based Stock Options (Parenthetical) (Details) - Performance-based Stock Options - $ / shares | 1 Months Ended | 12 Months Ended |
Jun. 30, 2016 | Dec. 31, 2016 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Share based compensation award plan modification incremental options | 1,109,163 | |
Weighted-average incremental fair value of options per share | $ 0.31 | |
Options modified period | 2016-06 |
Stock-based Compensation - Su84
Stock-based Compensation - Summary of Restricted Stock Unit Activity and Related Information (Details) - Restricted Stock Units | 12 Months Ended |
Dec. 31, 2016$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Options outstanding, Granted | shares | 596,217 |
Options outstanding, Forfeited | shares | (9,993) |
Options outstanding, Ending balance | shares | 586,224 |
Weighted-average exercise price, Granted | $ / shares | $ 17 |
Weighted-average exercise price, Forfeited | $ / shares | 17 |
Weighted-average exercise price, Ending balance | $ / shares | $ 17 |
Employee benefit plan - Additio
Employee benefit plan - Additional Information (Details) - USD ($) | 1 Months Ended | 11 Months Ended | 12 Months Ended | |
Jan. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Contribution Plan Disclosure [Line Items] | ||||
Defined contribution plan, vest percentage | 100.00% | |||
Company contributions to 401 (k) plan | $ 0 | $ 100,000 | $ 18,000 | |
Predecessor | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Company contributions to 401 (k) plan | $ 0 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - USD ($) | Aug. 31, 2016 | Jan. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 |
Related Party Transaction [Line Items] | |||||
Loan repaid by debtors | $ 7,912,000 | ||||
Estimated future sublease income | 900,000 | ||||
Employee | |||||
Related Party Transaction [Line Items] | |||||
Related party transaction rent expense | $ 400,000 | ||||
Cosmopack and Promotions | |||||
Related Party Transaction [Line Items] | |||||
Related party transaction selling, general and administrative expenses | 3,700,000 | ||||
TPG Growth II Management, LLC | |||||
Related Party Transaction [Line Items] | |||||
Management and consulting fees incurred | $ 800,000 | 900,000 | $ 900,000 | ||
Due to related party | 0 | ||||
Key Management Personnel | |||||
Related Party Transaction [Line Items] | |||||
Loan repaid by debtors | $ 7,900,000 | $ 12,000,000 | |||
Predecessor | Employee | |||||
Related Party Transaction [Line Items] | |||||
Related party transaction rent expense | $ 36,000 | ||||
Predecessor | Cosmopack and Promotions | |||||
Related Party Transaction [Line Items] | |||||
Related party transaction selling, general and administrative expenses | $ 400,000 |
Net Income (Loss) Per Share - R
Net Income (Loss) Per Share - Reconciliation of Numerator and Denominator in Basic and Diluted Net Income (Loss) Per Common Share Computations (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | 11 Months Ended | 12 Months Ended | ||||||||
Jan. 31, 2014 | 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, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | |
Numerator: | ||||||||||||
Net income (loss) | $ 6,601 | $ (2,377) | $ (2,715) | $ 3,804 | $ 2,427 | $ (748) | $ 1,363 | $ 1,315 | $ (9,286) | $ 5,313 | $ 4,357 | |
Adjustments to numerator: | ||||||||||||
Dividend paid to preferred stockholders | (66,531) | |||||||||||
Accretion of convertible preferred stock to maximum redemption value | (10,287) | (436,317) | (51,967) | |||||||||
Net loss attributable to common stockholders | $ 6,378 | $ (373,605) | $ (96,389) | $ (34,143) | $ (39,706) | $ (4,701) | $ (1,623) | $ (1,580) | $ (19,573) | $ (497,535) | $ (47,610) | |
Denominator: | ||||||||||||
Weighted average common shares outstanding - basic | 27,593 | 12,606,529 | 30,523 | |||||||||
Weighted average common shares outstanding - diluted | 27,593 | 12,606,529 | 30,523 | |||||||||
Net income (loss) per share: | ||||||||||||
Basic | $ 0.15 | $ (73.13) | $ (117.31) | $ (69.57) | $ (1,151.13) | $ (154.42) | $ (58.82) | $ (57.26) | $ (709.35) | $ (39.47) | $ (1,559.81) | |
Diluted | $ 0.13 | $ (73.13) | $ (117.31) | $ (69.57) | $ (1,151.13) | $ (154.42) | $ (58.82) | $ (57.26) | $ (709.35) | $ (39.47) | $ (1,559.81) | |
Anti-dilutive securities excluded from diluted EPS: | ||||||||||||
Anti-dilutive securities excluded from diluted EPS, Total | 43,847,883 | 7,591,298 | 46,117,747 | |||||||||
Service-based Stock Options | ||||||||||||
Anti-dilutive securities excluded from diluted EPS: | ||||||||||||
Anti-dilutive securities excluded from diluted EPS, Total | 3,019,451 | 3,168,967 | 3,997,503 | |||||||||
Performance Options With Market Condition | ||||||||||||
Anti-dilutive securities excluded from diluted EPS: | ||||||||||||
Anti-dilutive securities excluded from diluted EPS, Total | 3,557,057 | 3,836,107 | 4,848,869 | |||||||||
Restricted Stock Units | ||||||||||||
Anti-dilutive securities excluded from diluted EPS: | ||||||||||||
Anti-dilutive securities excluded from diluted EPS, Total | 586,224 | |||||||||||
Predecessor | ||||||||||||
Numerator: | ||||||||||||
Net income (loss) | $ 1,093 | |||||||||||
Adjustments to numerator: | ||||||||||||
Net loss attributable to common stockholders | $ 1,093 | |||||||||||
Denominator: | ||||||||||||
Weighted average common shares outstanding - basic | 1,000 | |||||||||||
Weighted average common shares outstanding - diluted | 1,005 | |||||||||||
Net income (loss) per share: | ||||||||||||
Basic | $ 1,093 | |||||||||||
Diluted | $ 1,087.56 | |||||||||||
Common stock | ||||||||||||
Anti-dilutive securities excluded from diluted EPS: | ||||||||||||
Anti-dilutive securities excluded from diluted EPS, Total | 37,271,375 | 37,271,375 |
Quarterly Financial Summary (88
Quarterly Financial Summary (Unaudited) - Schedule of Unaudited Quarterly Results (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 11 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, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net sales | $ 76,436 | $ 56,312 | $ 44,147 | $ 52,673 | $ 65,436 | $ 50,783 | $ 36,253 | $ 38,941 | $ 135,134 | $ 229,567 | $ 191,413 |
Gross profit | 45,320 | 32,478 | 25,137 | 29,300 | 35,029 | 26,002 | 19,108 | 20,190 | 61,450 | 132,235 | 100,329 |
Net income (loss) | 6,601 | (2,377) | (2,715) | 3,804 | 2,427 | (748) | 1,363 | 1,315 | (9,286) | 5,313 | 4,357 |
Net income (loss) attributable to common stockholders | $ 6,378 | $ (373,605) | $ (96,389) | $ (34,143) | $ (39,706) | $ (4,701) | $ (1,623) | $ (1,580) | $ (19,573) | $ (497,535) | $ (47,610) |
Net income (loss) per share: | |||||||||||
Basic | $ 0.15 | $ (73.13) | $ (117.31) | $ (69.57) | $ (1,151.13) | $ (154.42) | $ (58.82) | $ (57.26) | $ (709.35) | $ (39.47) | $ (1,559.81) |
Diluted | $ 0.13 | $ (73.13) | $ (117.31) | $ (69.57) | $ (1,151.13) | $ (154.42) | $ (58.82) | $ (57.26) | $ (709.35) | $ (39.47) | $ (1,559.81) |