Segment Information

9 Months Ended

Sep. 30, 2011

Segment Information [Abstract]

Segment Information

Note 10 — Segment Information

Industry Segments

     The Company has two identifiable business segments. The Wholesale segment includes the design, manufacture, contract for manufacture and wholesale distribution of party goods, including paper and plastic tableware, metallic and latex balloons, accessories, novelties, costumes, other garments, gifts and stationery. The Retail segment includes the operation of company-owned retail party supply superstores in the United States and Canada, the sale of franchises on an individual store and franchise area basis throughout the United States and Puerto Rico and e-commerce operations through our PartyCity.com website.

The Company’s industry segment data for the three months ended September 30, 2011 and 2010 is as follows:

	Wholesale			Retail			Consolidated
Three Months Ended September 30, 2011
Revenues:
Net sales	$	293,932		$	264,548		$	558,480
Royalties and franchise fees		—			3,962			3,962
Total revenues		293,932			268,510			562,442
Eliminations		(122,294	)		—			(122,294	)
Net revenues	$	171,638		$	268,510		$	440,148
Income (loss) from operations	$	33,214		$	(21,938	)	$	11,276
Interest expense, net								19,572
Other expense, net								703
Loss before income taxes							$	(8,999	)
Depreciation and amortization	$	6,098		$	9,747		$	15,845
Total assets	$	1,117,054		$	749,717		$	1,866,771

	Wholesale			Retail			Consolidated
Three Months Ended September 30, 2010
Revenues:
Net sales	$	219,976		$	229,856		$	449,832
Royalties and franchise fees		—			4,035			4,035
Total revenues		219,976			233,891			453,867
Eliminations		(91,060	)		—			(91,060	)
Net revenues	$	128,916		$	233,891		$	362,807
Income (loss) from operations	$	28,260		$	(10,297	)	$	17,963
Interest expense, net								9,834
Other expense, net								704
Income before income taxes							$	7,425
Depreciation and amortization	$	5,162		$	7,808		$	12,970
Total assets	$	962,547		$	756,960		$	1,719,507

The Company’s industry segment data for the nine months ended September 30, 2011 and 2010 is as follows:

	Wholesale			Retail			Consolidated
Nine Months Ended September 30, 2011
Revenues:
Net sales	$	707,478		$	754,292		$	1,461,770
Royalties and franchise fees		—			12,193			12,193
Total revenues		707,478			766,485			1,473,963
Eliminations		(261,582	)		—			(261,582	)
Net revenues	$	445,896		$	766,485		$	1,212,381
Income (loss) from operations	$	75,800		$	(4,895	)	$	70,905
Interest expense, net								60,252
Other expense, net								950
Income before income tax benefit							$	9,703
Depreciation and amortization	$	16,515		$	26,569		$	43,084
Total assets	$	1,117,054		$	749,717		$	1,866,771

	Wholesale			Retail			Consolidated
Nine Months Ended September 30, 2010
Revenues:
Net sales	$	564,400		$	668,250		$	1,232,650
Royalties and franchise fees		—			12,333			12,333
Total revenues		564,400			680,583			1,244,983
Eliminations		(216,794	)		—			(216,794	)
Net revenues	$	347,606		$	680,583		$	1,028,189
Income (loss) from operations	$	66,850		$	(5,230	)	$	61,620
Interest expense, net								28,261
Other expense, net								758
Income before income tax benefit							$	32,601
Depreciation and amortization	$	14,678		$	21,998		$	36,676
Total assets	$	962,547		$	756,960		$	1,719,507

Geographic Segments

     The Company’s export sales, other than inter-company sales between geographic areas, are not material. Inter-company sales between geographic areas primarily consist of sales of finished goods for distribution in foreign markets, and are made at cost plus a share of operating profit.