View Filing Data

Print Document View Excel Document

Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Dec. 31, 2016	Mar. 15, 2017	Jun. 30, 2016
Document Information [Line Items]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2016
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	FY
Trading Symbol	JAKK
Entity Registrant Name	JAKKS PACIFIC INC
Entity Central Index Key	0001009829
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		23,208,535
Entity Public Float			$ 176,823,818

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Current assets
Cash and cash equivalents	$ 86,064	$ 102,528
Accounts receivable, net of allowance for uncollectible accounts of $2,714 and $2,864 in 2015 and 2016, respectively	173,599	163,387
Inventory, net	75,435	60,544
Income taxes receivable	1,204	24,008
Prepaid expenses and other assets	17,077	31,901
Total current assets	353,379	382,368
Property and equipment
Office furniture and equipment	14,345	15,141
Molds and tooling	103,128	86,307
Leasehold improvements	10,927	10,640
Total	128,400	112,088
Less accumulated depreciation and amortization	105,559	93,653
Property and equipment, net	22,841	18,435
Intangibles, net	33,111	42,185
Other long term assets	2,156	3,125
Investment in DreamPlay LLC	7,000	7,000
Goodwill, net	43,208	44,199
Trademarks, net	2,608	2,308
Total assets	464,303	499,620
Current liabilities
Accounts payable	51,741	34,986
Accrued expenses	38,645	54,081
Reserve for sales returns and allowances	16,424	17,267
Income taxes payable		21,067
Short term debt	10,000
Total current liabilities	116,810	127,401
Convertible senior notes, net of debt issuance costs of $5,834 and $3,858 in 2015 and 2016, respectively	203,007	209,166
Other liabilities	5,004	5,155
Income taxes payable	2,248	2,199
Deferred income taxes, net	2,034	2,293
Total liabilities	329,103	346,214
Commitments and Contingencies
Stockholders' equity
Preferred stock, $.001 par value; 5,000,000 shares authorized; nil outstanding
Common stock, $.001 par value; 100,000,000 shares authorized; 21,153,878 and 19,376,773 shares issued and outstanding in 2015 and 2016, respectively	20	21
Treasury stock at cost; 3,660,201 and 3,112,840 shares in 2015 and 2016, respectively	(24,000)	(28,322)
Additional paid-in capital	177,623	194,743
Accumulated deficit	(2,148)	(3,391)
Accumulated other comprehensive loss	(17,207)	(10,051)
Total JAKKS Pacific, Inc. stockholders' equity	134,288	153,000
Non-controlling interests	912	406
Total stockholders' equity	135,200	153,406
Total liabilities and stockholders' equity	$ 464,303	$ 499,620

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Accounts receivable, allowance for uncollectible accounts	$ 2,864	$ 2,714
Debt issuance costs	$ 3,858	$ 5,834
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, outstanding	0	0
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	19,376,773	21,153,878
Common stock, shares outstanding	19,376,773	21,153,878
Treasury stock, shares	3,112,840	3,660,201

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Net Sales	$ 706,603	$ 745,741	$ 810,060
Cost of sales	483,582	517,172	574,253
Gross profit	223,021	228,569	235,807
Selling, general and administrative expenses	205,915	198,039	204,480
Income from operations	17,106	30,530	31,327
Change in fair value of business combination liability		5,642	5,932
Profit from video game joint venture	174	2,701
Income from joint ventures	715	60	314
Other income	305
Interest income	51	62	112
Interest expense	(12,975)	(12,402)	(12,461)
Income before provision for income taxes	5,376	26,593	25,224
Provision for income taxes	4,127	3,423	3,715
Net income	1,249	23,170	21,509
Net income (loss) attributable to non-controlling interests	6	(84)
Net income attributable to JAKKS Pacific, Inc.	$ 1,243	$ 23,254	$ 21,509
Basic earnings per share	$ 0.08	$ 1.20	$ 1.03
Basic weighted number of shares	16,542	19,435	20,948
Diluted earnings per share	$ 0.07	$ 0.71	$ 0.70
Diluted weighted number of shares	16,665	43,321	41,516

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Net income	$ 1,249	$ 23,170	$ 21,509
Other comprehensive income (loss):
Foreign currency translation adjustment	(7,156)	(3,216)	(2,986)
Comprehensive income (loss)	(5,907)	19,954	18,523
Less: Comprehensive income (loss) attributable to non-controlling interests	6	(84)
Comprehensive income (loss) attributable to JAKKS Pacific, Inc.	$ (5,913)	$ 20,038	$ 18,523

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Treasury Stock	Additional Paid-in Capital	Accumulated Deficit	Accumulated Other Comprehensive Loss	JAKKS Pacific, Inc. Stockholders' Equity	Non- Controlling Interests
Beginning Balance (in shares) at Dec. 31, 2013		22,669
Beginning Balance at Dec. 31, 2013	$ 148,685	$ 23		$ 200,665	$ (48,154)	$ (3,849)	$ 148,685
Excess tax benefit on vesting of restricted stock	(85)			(85)			(85)
Restricted stock grants (in shares)		65
Restricted stock grants	1,473	$ 1		1,472			1,473
Retirement of restricted stock (in shares)		(52)
Retirement of restricted stock	(2)	$ (1)		(1)			(2)
Prepaid forward purchase contract	(24,000)		$ (24,000)				(24,000)
Contributions from non-controlling interests	490							$ 490
Net income	21,509				21,509		21,509
Foreign currency translation adjustment	(2,986)					(2,986)	(2,986)
Ending Balance (in shares) at Dec. 31, 2014		22,682
Ending Balance at Dec. 31, 2014	145,084	$ 23	(24,000)	202,051	(26,645)	(6,835)	144,594	490
Restricted stock grants (in shares)		71
Restricted stock grants	1,562	$ 1		1,561			1,562
Retirement of restricted stock (in shares)		(52)
Retirement of restricted stock	(1)	$ (1)					(1)
Repurchase of common stock	(13,193)	$ (1)	(13,192)				(13,193)
Repurchase of common stock (in shares)		(1,547)
Retirement of treasury stock		$ (1)	8,870	(8,869)
Net income	23,170				23,254		23,254	(84)
Foreign currency translation adjustment	(3,216)					(3,216)	(3,216)
Ending Balance (in shares) at Dec. 31, 2015		21,154
Ending Balance at Dec. 31, 2015	153,406	$ 21	(28,322)	194,743	(3,391)	(10,051)	153,000	406
Excess tax benefit on vesting of restricted stock	548			548			548
Restricted stock grants (in shares)		65
Restricted stock grants	1,621	$ 1		1,620			1,621
Retirement of restricted stock (in shares)		(25)
Contributions from non-controlling interests	500							500
Repurchase of common stock	(13,506)		(13,506)				(13,506)
Repurchase of common stock (in shares)		(1,766)
Repurchase of common stock for employee tax withholding	(1,462)			(1,462)			(1,462)
Repurchase of common stock for employee tax withholding (in shares)		(51)
Retirement of treasury stock		$ (2)	17,828	(17,826)
Net income	1,249				1,243		1,243	6
Foreign currency translation adjustment	(7,156)					(7,156)	(7,156)
Ending Balance (in shares) at Dec. 31, 2016		19,377
Ending Balance at Dec. 31, 2016	$ 135,200	$ 20	$ (24,000)	$ 177,623	$ (2,148)	$ (17,207)	$ 134,288	$ 912

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Cash flows from operating activities
Net income	$ 1,249	$ 23,170	$ 21,509
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	22,944	18,860	18,971
Write-off and amortization of debt issuance costs	2,542	2,042	2,912
Share-based compensation expense	1,621	1,562	1,473
Loss on disposal of property and equipment	17	47	18
Change in fair value of business combination liability		(5,642)	(5,932)
Gain on extinguishment of convertible senior notes	(98)
Income from joint ventures		(1,017)	(314)
Deferred income taxes	(259)	(329)	(371)
Changes in operating assets and liabilities, net of acquisitions
Accounts receivable	(10,212)	71,129	(133,293)
Inventory	(14,891)	18,283	(32,043)
Income taxes receivable	22,804
Prepaid expenses and other assets	15,227	(7,513)	2,534
Accounts payable	10,558	(21,037)	30,391
Accrued expenses	(12,767)	(26,811)	24,338
Reserve for sales returns and allowances	(843)	(7,210)	(6,897)
Income taxes payable	(21,018)	(3,014)	2,921
Other liabilities	(151)	3,281	(5,147)
Excess tax deficiency from share-based compensation			(85)
Total adjustments	15,474	42,631	(100,524)
Net cash provided by (used in) operating activities	16,723	65,801	(79,015)
Cash flows from investing activities
Purchases of property and equipment	(14,765)	(17,840)	(10,524)
Distributions from joint venture		60	332
Cash paid for intangible assets	(300)
Sale of marketable securities		220
Change in other assets		(4,149)	(2,766)
Net cash used in investing activities	(15,065)	(21,709)	(12,958)
Cash flows from financing activities
Surrender of common stock	(1,462)	(1)	(2)
Repurchase of common stock	(13,506)	(13,193)	(24,000)
Repurchase of common stock for employee tax withholding	(1,462)	(1)	(2)
Net proceeds from credit facility borrowings	10,000
Credit facility costs		(188)	(1,851)
Repurchase of convertible senior notes	(8,035)		(39,000)
Proceeds from issuance of convertible senior notes			115,000
Bank fees related to convertible senior notes			(4,594)
Retirement of convertible senior notes	(8,035)		(39,000)
Proceeds from issuance of common shares of non-controlling interests	500		490
Excess tax benefit from share-based compensation	548
Net cash provided by (used in) financing activities	(11,955)	(13,382)	46,043
Net increase (decrease) in cash and cash equivalents	(10,297)	30,710	(45,930)
Effect of foreign currency translation	(6,167)	293	384
Cash and cash equivalents, beginning of year	102,528	71,525	117,071
Cash and cash equivalents, end of year	86,064	102,528	71,525
Cash paid during the period for:
Interest	9,855	10,198	8,964
Income taxes	$ 2,165	$ 7,832	$ 945

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Accounts Payable
Purchase of property and equipment incurred	$ 6.6	$ 0.4	$ 0.5
Accrued Expenses
Purchase of property and equipment incurred		$ 2.7	$ 2.1

Principal Industry

12 Months Ended

Dec. 31, 2016

Principal Industry

Note 1—Principal Industry

JAKKS Pacific, Inc. (the “Company”) is engaged in the development, production and marketing of consumer products, including toys and related products, electronic products, pet toys and related products, and other consumer products, many of which are based on highly-recognized character and entertainment licenses. The Company commenced its primary business operations in July 1995 through the purchase of substantially all of the assets of a Hong Kong toy company. The Company markets its product lines domestically and internationally.

The Company was incorporated under the laws of the State of Delaware in January 1995.

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2016

Summary of Significant Accounting Policies

Note 2—Summary of Significant Accounting Policies

Principles of consolidation

These consolidated financial statements include the accounts of the Company, its wholly owned subsidiaries, and its majority owned joint venture. All intercompany transactions have been eliminated.

The Company entered into a joint venture with Meisheng Culture & Creative Corp., for the purpose of providing certain JAKKS licensed and non-licensed toys and consumer products to agreed-upon territories of the People’s Republic of China. The joint venture includes a subsidiary in the Shanghai Free Trade Zone that sells, distributes and markets these products, which include dolls, plush, role play products, action figures, costumes, seasonal items, technology and app-enhanced toys, based on top entertainment licenses and JAKKS’ own proprietary brands. The Company owns fifty-one percent of the joint venture and consolidates the joint venture since control rests with the Company.

Cash and cash equivalents

The Company considers all highly liquid investments with an original maturity of three months or less, when acquired, to be cash equivalents. The Company maintains its cash in bank deposits which, at times, may exceed federally insured limits. The Company has not experienced any losses in such accounts. The Company believes it is not exposed to any significant credit risk of cash and cash equivalents.

Cash and cash equivalents are maintained at financial institutions and, at times, balances may exceed federally insured limits. The Company has never experienced any losses related to these balances.

Accounts Receivable and Allowance for Doubtful Accounts

Credit is granted to customers on an unsecured basis. Credit limits and payment terms are established based on extensive evaluations made on an ongoing basis throughout the fiscal year of the financial performance, cash generation, financing availability, and liquidity status of each customer. Customers are reviewed at least annually, with more frequent reviews performed as necessary, depending upon the customer’s financial condition and the level of credit being extended. For customers who are experiencing financial difficulties, management performs additional financial analyses before shipping to those customers on credit. The Company uses a variety of financial arrangements to ensure collectability of accounts receivable of customers deemed to be a credit risk, including requiring letters of credit, purchasing various forms of credit insurance with unrelated third parties, or requiring cash in advance of shipment.

The Company records an allowance for doubtful accounts based upon management’s assessment of the business environment, customers’ financial condition, historical collection experience, accounts receivable aging, customer disputes and the collectability of specific customer accounts.

Use of estimates

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the dates of the consolidated financial statements, and the reported amounts of revenue and expenses during the reporting periods. Actual future results could differ from those estimates.

Revenue recognition

Revenue is recognized upon the shipment of goods to customers or their agents, depending upon terms, provided there are no uncertainties regarding customer acceptance, the sales price is fixed or determinable and collectability is reasonably assured.

Generally the Company does not allow product returns. It provides its customers a negotiated allowance for breakage or defects, which is recorded when the related revenue is recognized. However, the Company does make occasional exceptions to this policy and consequently accrues a return allowance based upon historic return amounts and management estimates. The Company occasionally grants credits to facilitate markdowns and sales of slow moving merchandise. These credits are recorded as a reduction of gross sales at the time of the sale.

Fair value measurements

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In determining fair value, the Company uses various methods including market, income and cost approaches. Based upon these approaches, the Company often utilizes certain assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and/or the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market-corroborated, or unobservable inputs. The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. Based upon observable inputs used in the valuation techniques, the Company is required to provide information according to the fair value hierarchy. The fair value hierarchy ranks the quality and reliability of the information used to determine fair values into three broad levels as follows:

Level 1:	Valuations for assets and liabilities traded in active markets from readily available pricing sources for market transactions involving identical assets or liabilities.
Level 2:	Valuations for assets and liabilities traded in less active dealer or broker markets. Valuations are obtained from third-party pricing services for identical or similar assets or liabilities.
Level 3:	Valuations incorporate certain assumptions and projections in determining the fair value assigned to such assets or liabilities.

In instances where the determination of the fair value measurement is based upon inputs from different levels of the fair value hierarchy, the level in the fair value hierarchy within which the entire fair value measurement falls is based upon the lowest level input that is significant to the fair value measurement in its entirety. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability.

The following table summarizes the Company’s financial assets measured at fair value on a recurring basis as of December 31 (in thousands):

			Fair Value Measurements
	Carrying Amount as of		As of December 31, 2015
	December 31, 2015		Level 1		Level 2		Level 3

Cash equivalents	$	13,218	$	13,218	$	—	$	—

			Fair Value Measurements
	Carrying Amount as of		As of December 31, 2016
	December 31, 2016		Level 1		Level 2		Level 3

Cash equivalents	$	15,312	$	15,312	$	—	$	—

The Company’s accounts receivable, accounts payable and accrued expenses represent financial instruments. The carrying value of these financial instruments is a reasonable approximation of fair value.

The fair value of the 4.25% convertible senior notes payable due 2018 as of December 31, 2015 and 2016 was $102.0 million and $83.7 million respectively, based upon the most recent quoted market prices, and the fair value of the 4.875% convertible senior notes payable due 2020 as of December 31, 2015 and 2016 was $112.3 million and $89.3 million, respectively, based upon the most recent quoted market prices. The fair values of the convertible senior notes are considered to be Level 2 measurements on the fair value hierarchy.

For the years ended December 31, 2015 and 2016, there was no impairment to the value of the Company’s non-financial assets.

Inventory

Inventory, which includes the ex-factory cost of goods, capitalized warehouse costs and in-bound freight and duty, is valued at the lower of cost (first-in, first-out) or market, net of inventory obsolescence reserve, and consists of the following (in thousands):

		December 31,
		2015		2016
Raw materials	$	3,717	$	5,204
Finished goods		56,827		70,231
	$	60,544	$	75,435

Property and equipment

Property and equipment are stated at cost and are being depreciated using the straight-line method over their estimated useful lives as follows:

Office equipment	5 years
Automobiles	5 years
Furniture and fixtures	5 - 7 years
Leasehold improvements	Shorter of length of lease or 10 years

The Company uses the usage method as its depreciation methodology for molds and tools used in the manufacturing of its products, which is more closely correlated to production of goods. The Company believes that the usage method more accurately matches costs with revenues. Furthermore, the useful estimated life of molds and tools is two years.

For the years ended December 31, 2014, 2015 and 2016, the Company’s aggregate depreciation expense related to property and equipment was $10.4 million, $10.9 million and $13.9 million, respectively.

Other Comprehensive Income (Loss)

Other comprehensive income (loss) includes all changes in equity from non-owner sources. The Company accounts for other comprehensive income in accordance with Accounting Standards Codification (“ASC”) ASC 220, “Comprehensive Income.” All the activity in other comprehensive income (loss) and all amounts in accumulated other comprehensive income (loss) relate to foreign currency translation adjustments.

Advertising

Production costs of commercials and programming are charged to operations in the period during which the production is first aired. The costs of other advertising, promotion and marketing programs are charged to operations in the period incurred. Advertising expense for the years ended December 31, 2014, 2015 and 2016, was approximately $19.3 million, $15.8 million and $20.1 million, respectively.

The Company also participates in cooperative advertising arrangements with certain customers, whereby it allows a discount from invoiced product amounts in exchange for customer purchased advertising that features the Company’s products. Typically, these discounts range from 1% to 6% of gross sales, and are generally based upon product purchases or specific advertising campaigns. Such amounts are accrued when the related revenue is recognized or when the advertising campaign is initiated. These cooperative advertising arrangements are accounted for as direct selling expenses.

Income taxes

The Company does not file a consolidated return with its foreign subsidiaries. The Company files federal and state returns and its foreign subsidiaries file returns in their respective jurisdictions. Deferred taxes are provided on an asset and liability method whereby deferred tax assets are recognized as deductible temporary differences and operating loss and tax credit carry-forwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax basis. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.

Foreign Currency Translation Exposure

The Company’s reporting currency is the U.S. dollar. The translation of its net investment in subsidiaries with non-U.S. dollar functional currencies subjects the Company to currency exchange rate fluctuations in its results of operations and financial position. Assets and liabilities of subsidiaries with non-U.S. dollar functional currencies are translated into U.S. dollars at year-end exchange rates. Income, expense and cash flow items are translated at average exchange rates prevailing during the year. The resulting currency translation adjustments are recorded as a component of accumulated other comprehensive loss/gain within stockholders’ equity. The Company’s primary currency translation exposures in 2014, 2015 and 2016 were related to its net investment in entities having functional currencies denominated in the Hong Kong dollar, British pound, Canadian dollar, Chinese yuan, Mexican peso and the Euro.

Foreign Currency Transaction Exposure

Currency exchange rate fluctuations may impact the Company’s results of operations and cash flows. The Company’s currency transaction exposures include gains and losses realized on unhedged inventory purchases and unhedged receivables and payables balances that are denominated in a currency other than the applicable functional currency. Gains and losses on unhedged inventory purchases and other transactions associated with operating activities are recorded in the components of operating income in the consolidated statement of operations.

Accounting for the impairment of finite-lived tangible and intangible assets

Long-lived assets with finite lives, which include property and equipment and intangible assets other than goodwill, are evaluated for impairment when events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable through the estimated undiscounted future cash flows from the use of these assets. When any such impairment exists, the related assets will be written down to fair value. Finite-lived intangible assets consist primarily of product technology rights, acquired backlog, customer relationships, product lines and license agreements. These intangible assets are amortized over the estimated economic lives of the related assets. There were no impairments for years ended December 31, 2014, 2015 and 2016.

Goodwill and other indefinite-lived intangible assets

Goodwill and indefinite-lived intangible assets are not amortized, but are tested for impairment at least annually at the reporting unit level and asset level, respectively. Losses in value are recorded when material impairment has occurred in the underlying assets or when the benefits of the identified intangible assets are realized. Indefinite-lived intangible assets other than goodwill consist of trademarks.

The carrying value of goodwill and trademarks are based upon cost, which is subject to management’s current assessment of fair value. Management evaluates fair value recoverability using both objective and subjective factors. Objective factors include cash flows and analysis of recent sales and earnings trends. Subjective factors include management’s best estimates of projected future earnings and competitive analysis and the Company’s strategic focus.

For the years ended December 31, 2014, 2015 and 2016, there was no impairment to the value of the Company's goodwill or trademarks.

Share-based Compensation

The Company measures all employee stock-based compensation awards using a fair value method and records such expense in its consolidated financial statements. The Company recorded $1.5 million, $1.6 million and $1.6 million of restricted stock expense, in 2014, 2015 and 2016, respectively. See Note 17 for further details relating to share based compensation.

Earnings per share

The following table is a reconciliation of the weighted-average shares used in the computation of basic and diluted earnings per share (“EPS”) for the periods presented (in thousands, except per share data):

	2014
		Income	Weighted Average Shares			Per Share
Basic EPS
Income available to common stockholders	$	21,509		20,948	$	1.03
Effect of dilutive securities:
Assumed conversion of convertible senior notes		7,345		20,388
Options and warrants		—		—
Unvested restricted stock grants		—		180
Diluted EPS
Income available to common stockholders plus assumed exercises and conversion	$	28,854		41,516	$	0.70

	2015
		Income	Weighted Average Shares		Per Share
Basic EPS
Income available to common stockholders	$	23,254	19,435	$	1.20
Effect of dilutive securities:
Assumed conversion of convertible senior notes		7,385	23,369
Options and warrants		—	—
Unvested performance stock grants		—	347
Unvested restricted stock grants		—	170
Diluted EPS
Income available to common stockholders plus assumed exercises and conversion	$	30,639	43,321	$	0.71

			2016
	Income		Weighted Average Shares		Per Share
Basic EPS
Income available to common stockholders	$	1,243		16,542	$	0.08
Effect of dilutive securities:
Assumed conversion of convertible senior notes		—		—
Options and warrants		—		—
Unvested performance stock grants		—		—
Unvested restricted stock grants		—		123
Diluted EPS
Income available to common stockholders plus assumed exercises and conversion	$	1,243		16,665	$	0.07

Basic earnings per share is calculated using the weighted average number of common shares outstanding during the period. Diluted earnings per share is calculated using the weighted average number of common shares and common share equivalents outstanding during the period (which consist of warrants, options and convertible debt to the extent they are dilutive). For the years ended December 31, 2014, 2015 and 2016, the convertible senior notes interest and related common share equivalent of nil, nil and 23,004,916, respectively, were excluded from the diluted earnings per share calculation because they were anti-dilutive. Potentially dilutive stock options and warrants of 1,601,272, 1,518,596 and 1,500,000 for the years ended December 31, 2014, 2015 and 2016, respectively, were excluded from the computation of diluted earnings per share since they would have been anti-dilutive. Potentially dilutive restricted stock of nil for each of the years ended December 31, 2014, 2015 and 2016 were excluded from the computation of diluted earnings per share since they would have been anti-dilutive.

The Company is also party to a prepaid forward contract to purchase 3,112,840 shares of its common stock that are to be delivered over a settlement period in 2020. The number of shares to be delivered under the prepaid forward contract has been removed from the weighted-average basic and diluted shares outstanding. Any dividends declared and paid on the shares underlying the forward contract are to be reverted back to the Company based on the contractual terms of the forward contract.

Debt with Conversion and Other Options

In July 2013, the Company sold an aggregate of $100.0 million principal amount of 4.25% convertible senior notes due 2018 (the “2018 Notes”). The 2018 Notes are senior unsecured obligations of the Company paying interest semi-annually in arrears on August 1 and February 1 of each year at a rate of 4.25% per annum and will mature on August 1, 2018. The initial and still current conversion rate for the 2018 Notes is 114.3674 shares of the Company’s common stock per $1,000 principal amount of notes, equivalent to an initial conversion price of approximately $8.74 per share of common stock, subject to adjustment in certain events. Upon conversion, the 2018 Notes will be settled in shares of the Company’s common stock. Holders of the 2018 Notes may require that the Company repurchase for cash all or some of their notes upon the occurrence of a fundamental change (as defined in the 2018 Notes). In 2016, the Company repurchased and retired an aggregate of approximately $6.1 million principal amount of the 2018 Notes.

In June 2014, the Company sold an aggregate of $115.0 million principal amount of 4.875% convertible senior notes due 2020 (the “2020 Notes”). The 2020 Notes are senior unsecured obligations of the Company paying interest semi-annually in arrears on June 1 and December 1 of each year at a rate of 4.875% per annum and will mature on June 1, 2020. The initial and still current conversion rate for the 2020 Notes is 103.7613 shares of the Company’s common stock per $1,000 principal amount of notes, equivalent to an initial conversion price of approximately $9.64 per share of common stock, subject to adjustment in certain events. Upon conversion, the 2020 Notes will be settled in shares of the Company’s common stock. Holders of the 2020 Notes may require that the Company repurchase for cash all or some of their notes upon the occurrence of a fundamental change (as defined in the 2020 Notes). The Company received net proceeds of approximately $110.4 million from the offering of which $24.0 million was used to repurchase 3.1 million shares of the Company’s common stock under a prepaid forward purchase contract. In January 2016, the Company repurchased and retired an aggregate of $2.0 million principal amount of the 2020 Notes.

In June 2014, the Company effectively repurchased 3,112,840 shares of its common stock at an average cost of $7.71 per share for an aggregate amount of $24.0 million pursuant to a prepaid forward share repurchase agreement entered into with Merrill Lynch International (“ML”). These repurchased shares are treated as retired for basic and diluted EPS purposes although they remain legally outstanding. The Company reflects the aggregate purchase price of its common shares repurchased as a reduction to stockholders’ equity allocated to treasury stock. Any dividends declared and paid on the shares underlying the forward contract are to be reverted back to the Company based on the contractual terms of the forward contract.

Reclassifications

Certain reclassifications were made to the prior year consolidated financial statements to conform to current year presentation.

Recent Accounting Pronouncements

In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers” (“ASU 2014-09”), which supersedes nearly all existing revenue recognition guidance under U.S. GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. ASU 2014-09 defines a five step process to achieve this core principle and, in doing so, more judgment and estimates may be required within the revenue recognition process than are required under existing U.S. GAAP. The standard is effective for annual periods beginning after December 15, 2017, and interim periods therein, using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients, or (ii) a retrospective approach with the cumulative effect of initially adopting ASU 2014-09 recognized at the date of adoption (which includes additional footnote disclosures). The Company is currently evaluating the impact of the pending adoption of ASU 2014-09 on its consolidated financial statements and has not yet determined the method by which it will adopt the standard in 2018.

In July 2015, the FASB issued ASU 2015-11, “Inventory (Topic 330): Simplifying the Measurement of Inventory” (“ASU 2015-11”). ASU 2015-11 requires inventory accounted for under the FIFO or average cost method to be measured using the lower of cost and net realizable value. The amendments are effective prospectively for fiscal years and for interim periods beginning after December 15, 2016. The Company is currently evaluating the impact of the pending adoption of ASU 2015-11 on its consolidated financial statements.

In January 2016, the FASB issued ASU 2016-01, “Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities” (“ASU 2016-01”). The new guidance is intended to improve the recognition and measurement of financial instruments. The ASU is effective for fiscal years and interim periods within those years beginning after December 15, 2017. The Company is currently assessing the potential impact of this ASU on its consolidated financial statements.

In February 2016, the FASB issued Accounting Standards Update 2016-02, “Leases” (“ASU 2016-02”). ASU 2016-02 establishes a right-of-use (“ROU”) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Company is currently evaluating the impact of the pending adoption of this new standard on its consolidated financial statements.

In March 2016, the FASB issued ASU No. 2016-09, “Improvements to Employee Share-Based Payment Accounting,” (“ASU 2016-09”) which simplifies several aspects of the accounting for share-based payments, including income tax consequences and classification on the statement of cash flows. Under the new standard, all excess tax benefits and tax deficiencies will be recognized as income tax expense or benefit in the income statement as discrete items in the reporting period in which they occur. Additionally, excess tax benefits will be classified as an operating activity on the statement of cash flows. In regards to forfeitures, the entity can make an accounting policy election to either recognize forfeitures as they occur or estimate the number of awards expected to be forfeited. The guidance in ASU 2016-09 is effective for the fiscal year, and interim periods within that fiscal year, beginning after December 15, 2016. The Company is currently evaluating the impact of the adoption of this standard on its consolidated financial statements.

In August 2016, the FASB issued ASU 2016-15, “Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments.” The new guidance is intended to reduce diversity in practice in how transactions are classified in the statement of cash flows. This ASU is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2017. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements.

In October 2016, the FASB issued ASU 2016-16, “Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other than Inventory.” The amendments in this ASU reduces the complexity in the accounting standards by allowing the recognition of current and deferred income taxes for an intra-entity asset transfer, other than inventory, when the transfer occurs. Historically, recognition of the income tax consequence was not recognized until the asset was sold to an outside party. This ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is permitted. The Company is currently evaluating the impact of this ASU on its consolidated financial statements.

Business Segments, Geographic Data, Sales by Product Group and Major Customers

12 Months Ended

Dec. 31, 2016

Business Segments, Geographic Data, Sales by Product Group and Major Customers

Note 3—Business Segments, Geographic Data, Sales by Product Group and Major Customers

The Company is a worldwide producer and marketer of children’s toys and other consumer products, principally engaged in the design, development, production, marketing and distribution of its diverse portfolio of products. The Company recently realigned its operating segments into three new segments to better reflect the management and operation of the business. The Company’s segments are (i) U.S. and Canada, (ii) International and (iii) Halloween. Prior year’s segment reporting units have been restated to reflect this change.

The U.S. and Canada segment includes action figures, vehicles, play sets, plush products, dolls, electronic products, construction toys, infant and pre-school toys, role play and everyday costume play, foot to floor ride-on vehicles, wagons, novelty toys, seasonal and outdoor products, kids’ indoor and outdoor furniture, and pet treats and related products, primarily within the United States and Canada.

Within the International segment, the Company markets and sells its toy products in markets outside of the U.S. and Canada, primarily in the European, Asia Pacific, and Latin and South American regions.

Within the Halloween segment, the Company markets and sells Halloween costumes and accessories and everyday costume play products, primarily in the U.S. and Canada.

Segment performance is measured at the operating income level. All sales are made to external customers and general corporate expenses have been attributed to the various segments based upon relative sales volumes. Segment assets are primarily comprised of accounts receivable and inventories, net of applicable reserves and allowances, goodwill and other assets. Certain assets which are not tracked by operating segment and/or that benefit multiple operating segments have been allocated on the same basis.

Results are not necessarily those which would be achieved if each segment was an unaffiliated business enterprise. Information by segment and a reconciliation to reported amounts as of December 31, 2015 and 2016 and for the three years in the period ended December 31, 2016 are as follows (in thousands):

	Years Ended December 31,
	2014		2015		2016
Net Sales
U.S. and Canada	$	546,864	$	478,728	$	478,595
International		121,607		169,826		131,229
Halloween		141,589		97,187		96,779
	$	810,060	$	745,741	$	706,603

	Years Ended December 31,
	2014		2015			2016
Income from Operations
U.S. and Canada	$	20,864	$	17,562		$	17,434
International		6,275		16,249			4,360
Halloween		4,188		(3,281	)		(4,688	)
	$	31,327	$	30,530		$	17,106

	Years Ended December 31,
	2014		2015		2016
Depreciation and Amortization Expense
U.S. and Canada	$	13,411	$	13,023	$	16,817
International		2,991		4,439		4,549
Halloween		2,569		1,398		1,578
	$	18,971	$	18,860	$	22,944

	December 31,
	2015		2016
Assets
U.S. and Canada	$	313,312	$	306,895
International		149,950		119,560
Halloween		36,358		37,848
	$	499,620	$	464,303

Information regarding the Company’s operations in different geographical areas is presented below on the basis the Company uses to manage its business. Net revenues are categorized based upon location of the customer, while long-lived assets are categorized based upon the location of the Company’s assets. Tools, dies and molds represent a substantial portion of the long-lived assets included in the United States with a net book value of $10.2 million in 2015 and $15.7 million in 2016 and substantially all of these assets are located in China. The following tables present information about the Company by geographic area as of December 31, 2015 and 2016 and for each of the three years in the period ended December 31, 2016 (in thousands):

	December 31,
	2015		2016
Long-lived Assets
China	$	10,172	$	15,710
United States		7,702		6,587
Hong Kong		561		544
	$	18,435	$	22,841

	Years Ended December 31,
	2014		2015		2016
Net Sales by Customer Area
United States	$	653,497	$	542,101	$	544,096
Europe		67,027		117,313		92,811
Canada		33,040		32,587		26,947
Hong Kong		2,746		1,675		2,012
Other		53,750		52,065		40,737
	$	810,060	$	745,741	$	706,603

Major Customers

Net sales to major customers were as follows (in thousands, except for percentages):

	2014					2015					2016
			Percentage of					Percentage of					Percentage of
	Amount		Net Sales			Amount		Net Sales			Amount		Net Sales
Wal-Mart	$	165,777		20.5	%	$	163,333		21.9	%	$	165,345		23.4	%
Target		124,257		15.3			96,766		13.0			110,159		15.6
Toys ‘R’ Us		93,926		11.6			71,150		9.5			66,633		9.4
	$	383,960		47.4	%	$	331,249		44.4	%	$	342,137		48.4	%

No other customer accounted for more than 10% of the Company’s total net sales.

As of December 31, 2015 and 2016, the Company’s three largest customers accounted for approximately 56.2% and 35.8%, respectively, of net accounts receivable. The concentration of the Company’s business with a relatively small number of customers may expose the Company to material adverse effects if one or more of its large customers were to experience financial difficulty. The Company performs ongoing credit evaluations of its top customers and maintains an allowance for potential credit losses.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8981-108599

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9038-108599

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 33
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8971-108599

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8595-108599

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8380-108599

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8933-108599

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 26
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8844-108599

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 35
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8984-108599

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9031-108599

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9054-108599

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8538-108599

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 29
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8864-108599

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8924-108599

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8906-108599

+ Details

Joint Ventures

12 Months Ended

Dec. 31, 2016

Joint Ventures

Note 4—Joint Ventures

The Company owns a fifty percent interest in a joint venture (“Pacific Animation Partners”) with the U.S. entertainment subsidiary of a leading Japanese advertising and animation production company. The joint venture was created to develop and produce a boys’ animated television show, which it licensed worldwide for television broadcast as well as consumer products. The Company produced toys based upon the television program under a license from the joint venture which also licensed certain other merchandising rights to third parties. The Company is responsible for fifty percent of the operating expenses of the joint venture. The Company’s investment is being accounted for using the equity method. The joint venture completed and delivered 65 episodes of the show, which began airing in February 2012, and has since ceased production of the television show. For the years ended December 31, 2014, 2015 and 2016, the Company recognized income from the joint venture of $0.3 million, $0.1 million and $0.7 million, respectively.

As of December 31, 2015 and 2016, the balance of the investment in the Pacific Animation Partners joint venture is nil.

In September 2012, the Company entered into a joint venture (“DreamPlay Toys”) with NantWorks LLC (“NantWorks”) in which it owns a fifty percent interest. Pursuant to the operating agreement of DreamPlay Toys, the Company paid to NantWorks cash in the amount of $8.0 million and issued NantWorks a warrant to purchase 1.5 million shares of the Company’s common stock at a value of $7.0 million in exchange for the exclusive right to arrange for the provision of the NantWorks recognition technology platform for toy products. The Company has classified these rights as an intangible asset, which is being amortized over the anticipated revenue stream from the exploitation of these rights. The joint venture entered into a Toy Services Agreement, as amended, with a current expiration date of October 1, 2018, to develop and produce toys utilizing recognition technologies owned by NantWorks. Pursuant to the terms of the amended Toy Services Agreement, NantWorks is entitled to receive a renewal fee of $0.4 million per year and a preferred return based upon net sales of DreamPlay Toys product sales and third-party license fees. The Company retains the financial risk of the joint venture and is responsible for the day-to-day operations, including development, sales and distribution, for which it is entitled to receive any remaining profit or is responsible for any losses. The results of operations of the joint venture are consolidated with the Company’s results. Sales of DreamPlay Toys products commenced in the third quarter of 2013.

In addition, in 2012, the Company invested $7.0 million in cash in exchange for a five percent economic interest in a related entity, DreamPlay LLC, which will exploit the recognition technologies in non-toy consumer product categories. NantWorks has the right to repurchase the Company’s interest for $7.0 million. The Company has classified this investment as a long term asset on its balance sheet. The Company’s investment is being accounted for using the cost method. As of December 31, 2016, the Company determined the value of this investment will be realized and that no impairment has occurred.

In November 2014, the Company entered into a joint venture with Meisheng Culture & Creative Corp., for the purpose of providing certain JAKKS licensed and non-licensed toys and consumer products to agreed-upon territories of the People’s Republic of China. The joint venture includes a subsidiary in the Shanghai Free Trade Zone that sells, distributes and markets these products, which include dolls, plush, role play products, action figures, costumes, seasonal items, technology and app-enhanced toys, based on top entertainment licenses and JAKKS’ own proprietary brands. The Company owns fifty-one percent of the joint venture and consolidates the joint venture since control rests with the Company. The non-controlling interest’s share of the income and losses from the joint venture for the year ended December 31, 2015 and 2016 was a loss of $84,000 and income of $6,000, respectively.

Business Combinations

12 Months Ended

Dec. 31, 2016

Business Combinations

Note 5—Business Combinations

The Company acquired the following entities to further enhance its existing product lines and to continue diversification into other toy categories and seasonal businesses:

In July 2012, the Company acquired all of the stock of Maui, Inc., an Ohio corporation, Kessler Services, Inc., a Nevada corporation, and A.S. Design Limited, a Hong Kong corporation (collectively, “Maui”). The cash consideration totaled $36.2 million. In addition, the Company agreed to pay an earn-out of up to an aggregate amount of $18.0 million in cash over the three calendar years following the acquisition based upon the achievement of certain financial performance criteria, which was accrued and recorded as goodwill as of December 31, 2012. In 2013, 2014 and 2015, Maui did not achieve the minimum prescribed earn-out targets, therefore the reversals of the earn-out of $6.0 million, $5.9 million and $5.6 million, respectively, was recorded as other income. Maui is a leading manufacturer and distributor of spring and summer activity toys and impulse toys and was included in the Company’s results of operations from the date of acquisition.

In September 2012, the Company acquired all of the stock of JKID, LTD., a United Kingdom corporation for an initial cash consideration of $1.1 million and deferred cash payments of $5.5 million payable in five semi-annual payments of $1.1 million each. In addition, the Company agreed to pay additional compensation of up to an aggregate amount of $4.4 million in cash over the two year period of 2015 through 2016, based upon the achievement of certain financial performance criteria, which was to be accrued and charged to expense when and if it was earned. The financial performance criteria were not met in 2015 or 2016. Accordingly, none of the earn-out was paid. JKID is the developer of augmented reality technology that enhances the play patterns of toys and consumer products.

- Definition

The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable).

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=65885119&loc=d3e1497-128463

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=65885119&loc=d3e1490-128463

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=65885119&loc=d3e1392-128463

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 30
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=35744584&loc=d3e7008-128479

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=65885119&loc=d3e1486-128463

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 30
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=35744584&loc=d3e6927-128479

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=73530397&loc=d3e4845-128472

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=65885119&loc=d3e1524-128463

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 30
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=35744584&loc=d3e7000-128479

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=73530397&loc=d3e4922-128472

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=73530397&loc=d3e4934-128472

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=73530397&loc=d3e4926-128472

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 20
-Section 50
-Paragraph 4A
-URI http://asc.fasb.org/extlink&oid=73530397&loc=SL65897772-128472

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=65885119&loc=d3e1383-128463

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
-SubTopic 30
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=35744584&loc=d3e6996-128479

+ Details

Goodwill

12 Months Ended

Dec. 31, 2016

Goodwill

Note 6—Goodwill

The changes in the carrying amount of goodwill for the years ended December 31, 2015 and 2016 are as follows (in thousands):

	U.S. and Canada			International			Halloween			Total
Balance, December 31, 2014:
Goodwill	$	30,418		$	11,795		$	2,279		$	44,492
Adjustments to goodwill for foreign currency translation		(200	)		(78	)		(15	)		(293	)
Balance December 31, 2015:		30,218			11,717			2,264			44,199
Adjustments to goodwill for foreign currency translation		(678	)		(262	)		(51	)		(991	)
Balance December 31, 2016:	$	29,540		$	11,455		$	2,213		$	43,208

The Company assesses goodwill and indefinite-lived intangible assets for impairment on an annual basis by reviewing relevant qualitative and quantitative factors. More frequent evaluations may be required if the Company experiences changes in its business climate or as a result of other triggering events that take place. If carrying value exceeds fair value, a possible impairment exists and further evaluation is performed.

As of March 31, 2016, the Company revised its reportable segments based on changes to how the businesses are managed and how resources are allocated to the businesses. In conjunction with the required reallocation of goodwill to the new reportable segments as of March 31, 2016, the Company performed an assessment as of April 1, 2016. In performing its assessment for goodwill impairment, the Company evaluated qualitative factors, including but not limited to the performance of each reporting unit, general economic conditions, access to capital, the industry and competitive environment, and the interest rate environment. The Company prepared step-one of its impairment model. The valuation of goodwill involves a high degree of judgment and uncertainty related to key assumptions. Due to the subjective nature of the impairment analysis, significant changes in the assumptions used to develop the estimate could materially affect the conclusion regarding the future cash flows necessary to support the valuation of goodwill. In prior years, the assessment had been performed as of October 1 of each year, however, based on the seasonality of its businesses, the Company has determined that it is most appropriate and preferable to perform future annual assessments as of April 1 after the completion of the business cycles of each of its reporting units. The Company does not believe that the change in the goodwill impairment testing date will have a material effect on the consolidated financial statements.

Based on the Company’s April 1 assessment, it determined that the fair values of its reporting units were not less than the carrying amounts. In addition, as a result of operating performance below expectations for the full year of 2016 that became apparent in December 2016, the Company performed a subsequent impairment assessment on goodwill as of December 31, 2016. Based on the Company’s subsequent assessment, it determined that the fair values of its reporting units were not less than the carrying amounts with excess coverage of fair value over the carrying value of each of the reporting units of 2.0%, 20.6% and 2.0% for U.S. and Canada, International, and Halloween, respectively. As such, the Company determined there was no impairment to be recorded in 2016.

Intangible Assets Other Than Goodwill

12 Months Ended

Dec. 31, 2016

Intangible Assets Other Than Goodwill

Note 7—Intangible Assets Other Than Goodwill

Intangible assets other than goodwill consist primarily of licenses, product lines, customer relationships and trademarks. Amortized intangible assets are included in intangibles in the accompanying balance sheets. Trademarks are disclosed separately in the accompanying balance sheets. Intangible assets are as follows (in thousands, except for weighted useful lives):

			December 31, 2015							December 31, 2016
	Weighted Useful Lives		Gross Carrying Amount		Accumulated Amortization			Net Amount		Gross Carrying Amount		Accumulated Amortization			Net Amount
	(Years)

Amortized Intangible Assets:
Licenses		5.81	$	24,930	$	(20,436	)	$	4,494	$	20,130	$	(17,248	)	$	2,882
Product lines		7.50		50,093		(14,376	)		35,717		50,093		(20,634	)		29,459
Customer relationships		4.90		3,152		(2,195	)		957		3,152		(2,755	)		397
Trade names		5.00		3,000		(2,050	)		950		3,000		(2,650	)		350
Non-compete/ Employment contracts		5.00		200		(133	)		67		200		(177	)		23
Total amortized intangible assets			$	81,375	$	(39,190	)	$	42,185	$	76,575	$	(43,464	)	$	33,111
Unamortized Intangible Assets:
Trademarks			$	2,308	$	―		$	2,308	$	2,608	$	―		$	2,608

In October 2016, the Company acquired the operating assets of the C’est Moi brand of performance makeup and youth skincare products whose distribution is currently limited primarily to Asia. The initial consideration consisted of cash in the amount of $0.3 million. In addition, the Company agreed to pay additional compensation of up to an aggregate of $2.1 million in cash over the five year period of 2017 through 2021, based on the achievement of certain financial performance criteria, which will be accrued and charged to expense when and if it is earned.

For the years ended December 31, 2014, 2015 and 2016, the Company’s aggregate amortization expense related to intangible assets was $8.5 million, $8.0 million and $8.8 million, respectively. The Company currently estimates continuing future amortization expense to be approximately (in thousands):

2017	$	8,780
2018		6,137
2019		3,144
2020		3,053
2021		3,053
Thereafter		8,944
	$	33,111

Concentration of Credit Risk

12 Months Ended

Dec. 31, 2016

Concentration of Credit Risk

Note 8—Concentration of Credit Risk

Financial instruments that subject the Company to concentration of credit risk are cash and cash equivalents and accounts receivable. Cash equivalents consist principally of short-term money market funds. These instruments are short-term in nature and bear minimal risk. To date, the Company has not experienced losses on these instruments.

The Company performs ongoing credit evaluations of its customers’ financial conditions, but does not require collateral to support domestic customer accounts receivable. Most goods shipped FOB Hong Kong or China are secured with irrevocable letters of credit.

Accrued Expenses

12 Months Ended

Dec. 31, 2016

Accrued Expenses

Note 9—Accrued Expenses

Accrued expenses consist of the following (in thousands):

	2015		2016
Royalties	$	21,599	$	13,805
Inventory liabilities		6,754		5,425
Professional fees		2,535		3,696
Goods in transit		2,736		3,441
Salaries and employee benefits		185		3,243
Interest expense		2,333		2,520
Bonuses		6,275		1,500
Sales commissions		1,132		816
Unearned revenue		1,720		779
Molds and tools		2,669		―
Other		6,143		3,420
	$	54,081	$	38,645

In addition to royalties currently payable on the sale of licensed products during the quarter, the Company records a liability as accrued royalties for the estimated shortfall in achieving minimum royalty guarantees pursuant to certain license agreements (Note 16).

Related Party Transactions

12 Months Ended

Dec. 31, 2016

Related Party Transactions

Note 10—Related Party Transactions

A director of the Company is a partner in a law firm that acts as counsel to the Company. The Company incurred legal fees and expenses to the law firm in the amount of approximately $2.4 million in 2014, $3.1 million in 2015 and $3.2 million in 2016. As of December 31, 2015 and 2016, legal fees and reimbursable expenses of $1.6 million and $1.6 million, respectively, were payable to this law firm.

The owner of Nantworks, the Company’s DreamPlay Toys joint venture partner, beneficially owns 16.2% of the Company’s outstanding common stock, which includes 1.5 million shares underlying out-of-the-money stock warrants. Pursuant to the joint venture agreements, the Company is obligated to pay Nantworks a preferred return on joint venture sales.

For the years ended December 31, 2014, 2015 and 2016, preferred returns of $0.8 million, $0.7 million and nil, respectively, were earned and payable to Nantworks. Pursuant to the amended Toy Services Agreement, Nantworks is entitled to receive a renewal fee in the amount $1.2 million payable in installments of $0.8 million paid on the effective date of the renewal in 2015 and $0.2 million on or before each of August 1, 2016 and 2017. As of December 31, 2015 and 2016, the Company has a receivable from Nantworks in the amount of $0.6 million and $0.6 million, respectively. In addition, the Company previously leased office space from Nantworks. Rent expense, including common area maintenance and parking, for the years ended December 31, 2014, 2015 and 2016 was $1.3 million, $0.1 million and nil, respectively.

Credit Facility

12 Months Ended

Dec. 31, 2016

Credit Facility

Note 11—Credit Facility

In March 2014, the Company and its domestic subsidiaries entered into a secured credit facility with General Electric Capital Corporation (“GECC”). The loan agreement, as amended and subsequently assigned to Wells Fargo Bank, N.A. pursuant to its acquisition of GECC, provides for a $75.0 million revolving credit facility subject to availability based on prescribed advance rates on certain accounts receivable and inventory (the “WF Loan Agreement”). The amounts outstanding under the credit facility are payable in full upon maturity of the facility on March 27, 2019, and the credit facility is secured by a security interest in favor of the lender covering a substantial amount of the assets of the Company. As of December 31, 2015, the amount of outstanding borrowings was nil and outstanding stand-by letters of credit totaled $23.2 million; the total excess borrowing capacity was $32.3 million. As of December 31, 2016, the amount of outstanding borrowings was $10.0 million and outstanding stand-by letters of credit totaled $28.2 million; the total excess borrowing capacity was $12.1 million.

The Company’s ability to borrow under the WF Loan Agreement is also subject to its ongoing compliance with certain financial covenants, including the maintenance by the Company of a fixed charge coverage ratio of at least 1.2:1.0 based on the trailing four fiscal quarters. As of December 31, 2015 and 2016, the Company was in compliance with the financial covenants under the WF Loan Agreement.

The Company may borrow funds at LIBOR or at a base rate, plus applicable margins of 225 basis point spread over LIBOR and 125 basis point spread on base rate loans. In addition to standard fees, the facility has an unused credit line fee, which ranges from 25 to 50 basis points. As of December 31, 2015 and 2016, the weighted average interest rate on the credit facility was approximately 2.25% and 2.45%, respectively.

The WF Loan Agreement also contains customary events of default, including a cross default provision and a change of control provision. In the event of a default, all of the obligations of the Company and its subsidiaries under the WF Loan Agreement may be declared immediately due and payable. For certain events of default relating to insolvency and receivership, all outstanding obligations become due and payable.

Convertible Senior Notes

12 Months Ended

Dec. 31, 2016

Convertible Senior Notes

Note 12—Convertible Senior Notes

Convertible senior notes consist of the following (in thousands):

	December 31, 2015						December 31, 2016
			Debt						Debt
	Principal		Issuance		Net		Principal		Issuance		Net
	Amount		Costs		Amount		Amount		Costs		Amount
4.25% convertible senior notes (due 2018)	$	100,000	$	2,181	$	97,819	$	93,865	$	1,098	$	92,767
4.875% convertible senior notes (due 2020)		115,000		3,653		111,347		113,000		2,760		110,240
Total convertible senior notes, net of debt issuance costs	$	215,000	$	5,834	$	209,166	$	206,865	$	3,858	$	203,007

In November 2009, the Company sold an aggregate of $100.0 million principal amount of the 2014 Notes. The 2014 Notes, which were senior unsecured obligations of the Company, paid cash interest semi-annually at a rate of 4.50% per annum and matured on November 1, 2014. In July 2013, the Company repurchased an aggregate of $61.0 million principal amount of these notes at par plus accrued interest with a portion of the net proceeds from the issuance of $100.0 million principal amount of 4.25% convertible senior notes due 2018 resulting in a gain on extinguishment of $0.1 million. The remainder of these notes was redeemed at par at maturity on November 1, 2014.

ASC 470-20, “Debt with Conversion and Other Options,” requires the issuer of certain convertible debt instruments that may be settled in cash (or other assets) upon conversion to separately account for the liability (debt) and equity (conversion option) components of the instrument in a manner that reflects the issuer's non-convertible debt borrowing rate. In accordance with ASC 470-20, the Company allocated $13.7 million of the $100.0 million principal amount of the 2014 Notes to the equity component, which represents a discount to the debt that was being amortized to interest expense through November 1, 2014. Interest expense associated with the amortization of the discount was $0.9 million, nil and nil for December 31, 2014, 2015 and 2016. The Company repurchased $61.0 million of the 2014 Notes during the year ended December 31, 2013 as discussed below, with $2.8 million of the price allocated to the repurchase of the related equity component. In addition, approximately $2.2 million of the unamortized debt discount and $0.6 million of debt issuance costs were written off in connection with the repurchase of the 2014 Notes. The remaining aggregate $39.0 million of principal amount of the 2014 Notes were redeemed at par at maturity on November 1, 2014.

In July 2013, the Company sold an aggregate of $100.0 million principal amount of 4.25% Convertible Senior Notes due 2018 (the “2018 Notes”). The 2018 Notes are senior unsecured obligations of the Company paying interest semi-annually in arrears on August 1 and February 1 of each year at a rate of 4.25% per annum and will mature on August 1, 2018. The initial and still current conversion rate for the 2018 Notes is 114.3674 shares of the Company’s common stock per $1,000 principal amount of notes, equivalent to an initial conversion price of approximately $8.74 per share of common stock, subject to adjustment in certain events. Upon conversion, the 2018 Notes will be settled in shares of the Company’s common stock. Holders of the 2018 Notes may require that the Company repurchase for cash all or some of their notes upon the occurrence of a fundamental change (as defined in the 2018 Notes). In 2016, the Company repurchased and retired an aggregate of approximately $6.1 million principal amount of the 2018 Notes. In addition, approximately $0.1 million of the unamortized debt issuance costs were written off and a nominal gain was recognized in conjunction with the retirement of the 2018 Notes.

In June 2014, the Company sold an aggregate of $115.0 million principal amount of 4.875% Convertible Senior Notes due 2020 (the “2020 Notes”). The 2020 Notes are senior unsecured obligations of the Company paying interest semi-annually in arrears on June 1 and December 1 of each year at a rate of 4.875% per annum and will mature on June 1, 2020. The initial and still current conversion rate for the 2020 Notes is 103.7613 shares of the Company’s common stock per $1,000 principal amount of notes, equivalent to an initial conversion price of approximately $9.64 per share of common stock, subject to adjustment in certain events. Upon conversion, the 2020 Notes will be settled in shares of the Company’s common stock. Holders of the 2020 Notes may require that the Company repurchase for cash all or some of their notes upon the occurrence of a fundamental change (as defined in the 2020 Notes). In January 2016, the Company repurchased and retired an aggregate of $2.0 million principal amount of the 2020 Notes. In addition, approximately $0.1 million of the unamortized debt issuance costs were written off and a $0.1 million gain was recognized in conjunction with the retirement of the 2020 Notes.

On January 1, 2016, the Company adopted ASU 2015-03, “Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs,” which requires that debt issuance costs related to a recognized debt liability to be presented on the balance sheet as a direct deduction from the debt liability, similar to the presentation of debt premiums and discounts. ASU 2015-03 applies retrospectively and does not change the recognition and measurement requirements for debt issuance costs. As a result, the Company reclassified $5.8 million of debt issuance costs previously included in other long term assets to convertible senior notes, net on its consolidated financial statements as of December 31, 2015.

Key components of the 4.50% convertible senior notes due 2014 consist of the following (in thousands):

	Years Ended December 31,
	2014		2015			2016
Contractual interest expense on the coupon	$	1,463	$	―	$	―
Amortization of debt discount and debt issuance costs recognized as interest expense		1,140		―		―
	$	2,603	$	―	$	―

Key components of the 4.25% convertible senior notes due 2018 consist of the following (in thousands):

	Years Ended December 31,
	2014		2015		2016
Contractual interest expense	$	4,250	$	4,250	$	4,191
Amortization of debt issuance costs recognized as interest expense		835		836		1,172
	$	5,085	$	5,086	$	5,363

Key components of the 4.875% convertible senior notes due 2020 consist of the following (in thousands):

	Years Ended December 31,
	2014		2015		2016
Contractual interest expense	$	3,135	$	5,606	$	5,508
Amortization of debt issuance costs recognized as interest expense		473		811		804
	$	3,608	$	6,417	$	6,312

Income Taxes

12 Months Ended

Dec. 31, 2016

Income Taxes

Note 13—Income Taxes

The Company does not file a consolidated return with its foreign subsidiaries. The Company files federal and state returns and its foreign subsidiaries file returns in their respective jurisdiction.

For the years ended 2014, 2015 and 2016, the provision for income taxes, which included federal, state and foreign income taxes, was an expense of $3.7 million, $3.4 million and $4.1 million reflecting effective tax provision rates of 14.7%, 12.9% and 76.8%, respectively.

For the year ended 2014 and 2015, provision for income taxes includes federal, state and foreign income taxes at effective tax rates of 14.7% and 12.9%. Exclusive of discrete items, the effective tax provision rate would be 13.6% in 2014 and 9.5% in 2015. The decrease in the effective rate absent discrete items was primarily due to the foreign rate differential. The rate exclusive of discrete items can be materially impacted by the proportion of Hong Kong earnings to consolidated earnings.

The 2016 tax expense of $4.1 million included a discrete tax benefit of $0.1 million primarily comprised of return to provision adjustments. Absent these discrete tax expenses, the Company’s effective tax rate for 2016 was 79.2%; primarily due to US federal alternative minimum tax, various state taxes and taxes on foreign income.

In November 2015, the FASB issued ASU No. 2015-17, “Balance Sheet Classification of Deferred Taxes,” which requires all deferred tax assets and liabilities to be classified as noncurrent on the balance sheet. The guidance in ASU 2015-17 is effective for the fiscal year, and interim periods within that fiscal year, beginning after December 15, 2016, with early adoption permitted. The Company early adopted this standard as of January 1, 2016 and applied the standard retrospectively. As a result of adopting this standard, current deferred tax liabilities of $2.7 million and non-current deferred tax assets of $0.4 million were reclassified to net non-current deferred tax liabilities as of December 31, 2015.

For years ended 2015 and 2016, the Company had net deferred tax liabilities of approximately $2.3 million and $2.0 million, respectively, related to foreign jurisdictions.

Provision for income taxes reflected in the accompanying consolidated statements of operations are comprised of the following (in thousands):

	2014			2015			2016
Federal	$	(4	)	$	—		$	1,549
State and local		287			708			652
Foreign		3,887			3,044			1,637
Total Current		4,170			3,752			3,838
APIC		(84	)		—			548
Deferred		(371	)		(329	)		(259	)
Total	$	3,715		$	3,423		$	4,127

The components of deferred tax assets/(liabilities) are as follows (in thousands):

	2015			2016
Net deferred tax assets/(liabilities):
Reserve for sales allowances and possible losses	$	756		$	801
Accrued expenses		1,193			1,739
Prepaid royalties		13,155			16,806
Accrued royalties		3,963			2,638
Inventory		3,315			3,506
State income taxes		―			98
Property and equipment		3,833			4,997
Original issue discount interest		(10,332	)		(6,945	)
Goodwill and intangibles		35,086			29,378
Share based compensation		2,359			1,607
Undistributed foreign earnings		―			(48,731	)
Federal and state net operating loss carryforwards		34,684			22,755
Credit carryforwards		13,254			21,097
Other		(2,621	)		(2,495	)
Gross		98,645			47,251
Valuation allowance		(100,938	)		(49,285	)
Total net deferred tax assets/(liabilities)	$	(2,293	)	$	(2,034	)

Provision for income taxes varies from the U.S. federal statutory rate. The following reconciliation shows the significant differences in the tax at statutory and effective rates:

	2014			2015			2016
Federal income tax expense		35.0	%		35.0	%		35.0	%
State income tax expense, net of federal tax effect		―			1.0			(3.6	)
Effect of differences in U.S. and foreign statutory rates		(14.1	)		(9.4	)		(53.7	)
Uncertain tax positions		―			0.3			3.4
Earn-out adjustments		―			(7.4	)		―
Provision to return		―			12.2			4.5
Non-deductible expenses		1.1			1.1			8.9
Other		(1.5	)		0.5			0.6
Foreign deemed dividend		―			1.7			262.2
Foreign tax credit		―			(0.5	)		(126.1	)
Undistributed foreign earnings		―			―			906.5
Valuation allowance		(5.8	)		(21.6	)		(960.9	)
		14.7	%		12.9	%		76.8	%

Deferred taxes result from temporary differences between tax bases of assets and liabilities and their reported amounts in the consolidated financial statements. The temporary differences result from costs required to be capitalized for tax purposes by the U.S. Internal Revenue Code (“IRC”), and certain items accrued for financial reporting purposes in the year incurred but not deductible for tax purposes until paid. The Company has established a full valuation allowance on net deferred tax assets in the United States since, in the opinion of management, it is not more likely than not that the U.S. net deferred tax assets will be realized.

The components of income (loss) before provision for income taxes are as follows (in thousands):

	2014		2015		2016
Domestic	$	5,358	$	11,692	$	(7,760	)
Foreign		19,866		14,901		13,136
	$	25,224	$	26,593	$	5,376

The Company has approximately $206.0 million of cumulative undistributed earnings of non-U.S. subsidiaries for which U.S. deferred tax liability has been provided as of December 31, 2016. These earnings are no longer permanently reinvested outside the U.S. Due to the valuation allowance against the deferred tax assets, the deferred tax liability recorded reduces the valuation allowance.

The Company uses a recognition threshold and measurement process for recording in the consolidated financial statements uncertain tax positions (“UTP”) taken or expected to be taken in a tax return.

$49,700 of additional UTP related to state taxes was recognized in 2016. During 2015, approximately $1.8 million of the liability for UTP was recognized, and approximately $2.1 million of the liability for UTP was de-recognized.

Current interest on uncertain income tax liabilities is recognized as interest expense and penalties are recognized in selling, general and administrative expenses in the consolidated statement of operations. During 2014, the Company recognized $150,000 of current year interest expense relating to UTPs. During 2015, the Company did not recognize any current year interest expense relating to UTPs. During 2016, the Company recognized $67,900 of current interest expense relating to UTPs.

The following table provides further information of UTPs that would affect the effective tax rate, if recognized, as of December 31, 2016 (in millions):

Balance, January 1, 2014	$	2.6
Current year additions		—
Current year reduction due to lapse of applicable statute of limitations		(0.1	)
Balance, December 31, 2014		2.5
Current year additions		1.8
Current year reduction due to lapse of applicable statute of limitations		(2.1	)
Balance, December 31, 2015		2.2
Current year additions		0.1
Current year reduction due to audit settlement		—
Balance, December 31, 2016	$	2.3

We do not expect our gross unrecognized tax benefits to significantly change within the next 12 months.

Tax years 2013 through 2015 remain subject to examination in the United States. The tax years 2012 through 2015 are generally still subject to examination in the various states. The tax years 2010 through 2015 are still subject to examination in Hong Kong. In the normal course of business, the Company is audited by federal, state and foreign tax authorities. The U.S. Internal Revenue Service is currently examining the 2015 tax year.

Management assesses the available positive and negative evidence to estimate if sufficient future taxable income will be generated to use the existing deferred tax assets by jurisdiction. The Company is required to establish a valuation allowance for the U.S. deferred tax assets and record a charge to income if Management determines, based upon available evidence at the time the determination is made, that it is more likely than not that some portion or all of the deferred tax assets may not be realized.

Based on our evaluation of all positive and negative evidence, as of December 31, 2016, a valuation allowance of $49.3 million has been recorded against the deferred tax assets that more likely than not will not be realized. For the year ended December 31, 2016, the valuation allowance decreased by $51.6 million from $100.9 million at December 31, 2015 to $49.3 million at December 31, 2016. The decrease in the valuation allowance is primarily due to the recognition of the deferred tax liability relating to the Company’s cumulative undistributed earnings of non-U.S. subsidiaries that are no longer permanently reinvested. The net deferred tax liabilities of $2.3 million and $2.0 million in 2015 and 2016, respectively, represent the net deferred tax liabilities in the foreign jurisdiction, where the Company is in a cumulative income position.

At December 31, 2016, the Company had U.S. federal net operating loss carryforwards, or "NOLs," of approximately $36.8 million, which will begin to expire in 2033. At December 31, 2016, the Company's state NOLs were mainly from California. The majority of the approximately $124.2 million of California NOLs will begin to expire in 2031. At December 31, 2016, the Company had foreign tax credit carryforwards of approximately $19.2 million, which will begin to expire in 2022. At December 31, 2016, the Company had federal research and development tax credit carryforwards ("credit carryforwards") of approximately $0.5 million, which will begin to expire in 2029. At December 31, 2016, the Company had state research and development tax credits of approximately $0.1 million, which carry forward indefinitely. At December 31, 2016, the Company had AMT credit carryforwards of approximately $1.5 million, which carry forward indefinitely. Utilization of certain NOLs and research credit carryforwards may be subject to an annual limitation due to ownership change limitations set forth in Sections 382 and 383 of the Internal Revenue Code of 1986, as amended, and comparable state income tax laws. Any future annual limitation may result in the expiration of NOLs and credit carryforwards before utilization.

Leases

12 Months Ended

Dec. 31, 2016

Leases

Note 14—Leases

The Company leases office, warehouse and showroom facilities and certain equipment under operating leases. Rent expense for the years ended December 31, 2014, 2015 and 2016 totaled $13.0 million, $11.5 million and $12.3 million, respectively (including leases abandoned during 2014), the following is a schedule of minimum annual lease payments (in thousands).

2017	$	12,030
2018		9,422
2019		6,276
2020		4,247
2021		3,989
Thereafter		9,184
	$	45,148

Common Stock, Preferred Stock and Warrants

12 Months Ended

Dec. 31, 2016

Common Stock, Preferred Stock and Warrants

Note 15—Common Stock, Preferred Stock and Warrants

The Company has 105,000,000 authorized shares of stock consisting of 100,000,000 shares of $.001 par value common stock and 5,000,000 shares of $.001 par value preferred stock. On December 31, 2015 shares issued and outstanding were 21,153,878, and on December 31, 2016, shares issued and outstanding were 19,376,773.

All issuances of common stock, including those issued pursuant to stock option and warrant exercises, restricted stock grants and acquisitions, are issued from the Company’s authorized but not issued and outstanding shares.

In January 2014, the Company issued an aggregate of 531,993 shares of restricted stock at a value of approximately $3.6 million to two executive officers, which vest, subject to certain company financial performance criteria, over a one to three year period. In addition, an aggregate of 78,150 shares of restricted stock were issued to its five non-employee directors, which vested in January 2015, at an aggregate value of approximately $0.5 million.

In June 2014, the Company effectively repurchased 3,112,840 shares of its common stock at an average cost of $7.71 per share for an aggregate amount of $24.0 million pursuant to a prepaid forward share repurchase agreement entered into with Merrill Lynch International (“ML”). These repurchased shares are treated as retired for basic and diluted EPS purposes although they remain legally outstanding. The Company reflects the aggregate purchase price as a reduction to stockholders’ equity classified as Treasury Stock. No shares have been delivered to the Company by ML as of December 31, 2016.

In January 2015, the Company issued an aggregate of 525,734 shares of restricted stock at a value of approximately $3.6 million to two executive officers, which vest, subject to certain company financial performance criteria and market conditions, over a three year period. In addition, an aggregate of 73,855 shares of restricted stock were issued to its five non-employee directors, which vest in January 2016, at an aggregate value of approximately $0.5 million.

In April 2015, the Company issued an aggregate of 135,234 shares of restricted stock at a value of approximately $0.9 million to an executive officer, which vests subject to certain company financial performance criteria and market conditions, over a three year period.

In June 2015, and as subsequently increased, the Board of Directors authorized the repurchase of up to an aggregate of $35.0 million of the Company’s outstanding common stock and/or convertible senior notes (collectively, “securities”). During 2015, the Company repurchased 1,547,361 shares of its common stock at an aggregate value of $13.2 million. During 2016, the Company repurchased 1,766,284 shares of its common stock at an aggregate value of $13.5 million and also repurchased $2.0 million principal amount of its 2020 Notes at a cost of $1.9 million and $6.1 million principal amount of its 2018 Notes at a cost of $6.1 million. As of December 31, 2016, the Company completed the authorized repurchases of securities and retired all of the repurchased securities.

In January 2016, the Company issued an aggregate of 449,120 shares of restricted stock at a value of approximately $3.6 million to two executive officers, which vest, subject to certain company financial performance criteria and market conditions, over a three year period. In addition, an aggregate of 62,710 shares of restricted stock at an aggregate value of approximately $0.5 million were issued to its five non-employee directors, which vest in January 2017.

In March 2016, the Company issued an aggregate of 134,058 shares of restricted stock at a value of approximately $0.9 million to an executive officer, which vest, subject to certain company financial performance criteria and market conditions, over a three year period.

In October 2016, the Company issued an aggregate of 2,463 shares of restricted stock at a nominal value to a non-employee director, which vest in January 2017.

No dividend was declared or paid in 2015 and 2016.

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 10
-Section S99
-Paragraph 4
-Subparagraph (SAB Topic 4.E)
-URI http://asc.fasb.org/extlink&oid=27010918&loc=d3e74567-122707

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21484-112644

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(29))
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21488-112644

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(e))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(31))
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 4
-Subparagraph (SAB Topic 4.C)
-URI http://asc.fasb.org/extlink&oid=27012166&loc=d3e187143-122770

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(30))
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21506-112644

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(d))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.3-04)
-URI http://asc.fasb.org/extlink&oid=27012166&loc=d3e187085-122770

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 30
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6405834&loc=d3e23285-112656

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Preferred Stock
-URI http://asc.fasb.org/extlink&oid=6521494

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21463-112644

Reference 16: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21564-112644

+ Details

Commitments

12 Months Ended

Dec. 31, 2016

Commitments

Note 16—Commitments

The Company has entered into various license agreements whereby the Company may use certain characters and intellectual properties in conjunction with its products. Generally, such license agreements provide for royalties to be paid at 1% to 20% of net sales with minimum guarantees and advance payments.

In the event the Company determines that a shortfall in achieving the minimum guarantee is likely, a liability is recorded for the estimated short fall and charged to royalty expense.

Future annual minimum royalty guarantees as of December 31, 2016 are as follows (in thousands):

2017	$	51,950
2018		32,677
2019		7,638
	$	92,265

The Company has entered into employment and consulting agreements with certain executives expiring through December 31, 2020. The aggregate future annual minimum guaranteed amounts due under those agreements as of December 31, 2016 are as follows (in thousands):

2017	$	8,226
2018		5,492
2019		5,332
2020		2,285
	$	21,335

Share-Based Payments

12 Months Ended

Dec. 31, 2016

Share-Based Payments

Note 17—Share-Based Payments

Under its 2002 Stock Award and Incentive Plan (“the Plan”), which incorporated its Third Amended and Restated 1995 Stock Option Plan, the Company has reserved shares of its common stock for issuance upon the exercise of options granted under the Plan, as well as for the awarding of other securities. Under the Plan, employees (including officers), non-employee directors and independent consultants may be granted options to purchase shares of common stock and other securities (Note 15). The vesting of these options and other securities may vary, but typically vest on a step-up basis over a maximum period of 4 years. Restricted shares typically vest in the same manner, with the exception of certain awards vesting over one to two years. Share-based compensation expense is recognized on a straight-line basis over the requisite service period. As of December 31, 2016, 2,378,630 shares were available for future grant. Additional shares may become available to the extent that options or shares of restricted stock presently outstanding under the Plan terminate or expire.

Restricted Stock

Under the Plan, share-based compensation payments may include the issuance of shares of restricted stock. Restricted stock award grants are based upon employment contracts, which vary by individual and year, and are subject to vesting conditions. Non-employee directors each receive grants of restricted stock at a value of $100,000 annually which vest after one year – this amount is prorated if a director is appointed within the year. In addition, at the discretion of Management and approval of the Board, non-executive employees also may receive restricted stock awards, which occurs approximately once per year.

During 2014, the Company issued a total of 610,143 shares of restricted stock; of which 531,993 shares of restricted stock (with performance based vesting measures) were issued to two executive officers and were subsequently forfeited based upon the Company not meeting certain financial targets for the year. A total of 78,150 shares were granted to its non-employee directors. The Company cancelled 12,658 shares of restricted stock due to various non-executive employees departing from the Company prior to shares vesting completely. Also during 2014, certain employees, including an executive officer, surrendered an aggregate of 51,877 shares of restricted stock at a value of less than $0.1 million to cover income taxes due on the vesting of restricted shares. As of December 31, 2014, 568,057 shares of the restricted stock remained unvested, representing a weighted average grant date fair value of $3.7 million.

During 2015, the Company issued a total of 734,823 shares of restricted stock; of which 660,968 shares of restricted stock (with performance based vesting measures) were issued to two executive officers. Of the 660,968 shares, a total of 612,221 were subsequently forfeited based upon the Company not meeting certain financial targets for the year. A total of 73,855 shares were granted to its non-employee directors. The Company cancelled 51,633 shares of restricted stock due to various non-executive employees departing from the Company prior to shares vesting completely. Also during 2015, certain employees, including an executive officer, surrendered an aggregate of 52,024 shares of restricted stock for $0.4 million to cover income taxes due on the vesting of restricted shares. As of December 31, 2015, 411,409 shares of the restricted stock remained unvested, representing a weighted average grant date fair value of $2.7 million.

During 2016, the Company issued a total of 648,351 shares of restricted stock; of which 583,178 shares of restricted stock (with performance based vesting measures) were issued to two executive officers. Of the 583,178 shares, all were subsequently forfeited based upon the Company not meeting certain financial targets for the year. A total of 65,173 shares were granted to its non-employee directors. The Company cancelled 24,822 shares of restricted stock due to various non-executive employees departing from the Company prior to shares vesting completely. Also during 2016, certain employees, including an executive officer, surrendered an aggregate of 50,719 shares of restricted stock for $1.5 million to cover income taxes due on the vesting of restricted shares. As of December 31, 2016, 196,453 shares of the restricted stock remained unvested, representing a weighted average grant date fair value of $1.4 million.

The following table summarizes the restricted stock award activity, annually, for the years ended December 31, 2014, 2015 and 2016:

	Restricted and Performance Based Stock Awards (RSA)
	Number of Shares			Weighted Average Fair Value

Outstanding, December 31, 2013		721,752		$	6.88
Awarded		610,143			6.72
Released		(219,187	)		7.99
Forfeited		(544,651	)		6.61
Outstanding, December 31, 2014		568,057			6.54
Awarded		734,823			6.81
Released		(227,616	)		6.60
Forfeited		(663,855	)		6.77
Outstanding, December 31, 2015		411,409			6.61
Awarded		648,351			7.00
Released		(255,307	)		6.68
Forfeited		(608,000	)		6.88
Outstanding, December 31, 2016		196,453			7.01

As of December 31, 2016, there was $0.8 million of total unrecognized compensation cost related to non-vested restricted stock awards, which is expected to be recognized over a weighted-average period of 0.85 years.

The following table summarizes the total share-based compensation expense and related tax benefits recognized (in thousands):

	Year Ended December 31,
	2014		2015		2016

Restricted stock compensation expense	$	1,473	$	1,562	$	1,621
Excess tax benefit related to restricted stock compensation		—		—		548

Stock Options

Share-based compensation cost is measured at the grant date, based on the estimated fair value of the award, and is recognized as expense over the employee's requisite service period. For the three years in the period ending December 31, 2016, the Company incurred no expense related to stock options previously awarded.

The Company uses the Black-Scholes method of valuation for share-based option awards. In valuing the stock options, the Black-Scholes model incorporates assumptions about stock volatility, expected term of stock options, and risk free interest rate. The valuation is reduced by an estimate of stock option forfeitures.

Stock option activity pursuant to the Plan is summarized as follows:

	Number of Shares			Weighted Average Exercise Price
Outstanding, December 31, 2013	127,144		$	20.20
Cancelled	(52,144	)		19.50
Outstanding, December 31, 2014	75,000			20.69
Cancelled	(75,000	)		20.69
Outstanding, December 31, 2015	—			—

There has been no stock option activity since December 31, 2015.

Non-Employee Stock Warrants

In 2012, the Company granted 1,500,000 stock warrants with an exercise price of $16.28 per share and a five year term to a third party as partial consideration for the exclusive right to use certain recognition technology in connection with the Company’s toy products. The exercise price of the 2012 stock warrants is equal to the volume-weighted average price of the Company’s common stock over the five trading days preceding the date of grant. All warrants vested upon grant and are exercisable over the term of the warrants. At December 31, 2014, 2015 and 2016 all such stock warrants remained outstanding with an exercise price of $16.28 per share and an expiration date of September 12, 2017.

The Company measures the fair value of the warrants granted on the measurement date. The fair value of the 2012 stock warrant is capitalized as an intangible asset and will be amortized to expense in the consolidated statements of operations when the related product is released and the related net sales are recognized, which commenced in the third quarter of 2013.

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

+ References + Details

Employee Benefits Plan

12 Months Ended

Dec. 31, 2016

Employee Benefits Plan

Note 18—Employee Benefits Plan

The Company sponsors for its U.S. employees, a defined contribution plan under Section 401(k) of the Internal Revenue Code. The Plan provides that employees may defer up to 50% of their annual compensation subject to annual dollar limitations, and that the Company will make a matching contribution equal to 100% of each employee’s deferral, up to 5% of the employee’s annual compensation. Company matching contributions, which vest immediately, totaled $1.9 million, $2.2 million and $2.5 million for the years ended December 31, 2014, 2015 and 2016, respectively.

Supplemental Information to Consolidated Statements of Cash Flows

12 Months Ended

Dec. 31, 2016

Supplemental Information to Consolidated Statements of Cash Flows

Note 19—Supplemental Information to Consolidated Statements of Cash Flows

In 2014, certain employees, including an executive officer, surrendered an aggregate of 51,877 shares of restricted stock at a value of less than $0.1 million to cover their income taxes due on the 2014 vesting of the restricted shares granted them in 2013 and prior. Additionally, the Company recognized a $0.1 million excess tax deficiency from the vesting of restricted stock.

In 2015, certain employees, including an executive officer, surrendered an aggregate of 52,024 shares of restricted stock at a value of $0.4 million to cover their income taxes due on the 2015 vesting of the restricted shares granted them in 2014 and prior. Additionally, the Company recognized a nominal excess tax benefit from the vesting of restricted stock.

In 2016, certain employees, including an executive officer, surrendered an aggregate of 50,719 shares of restricted stock at a value of $1.5 million to cover their income taxes due on the 2016 vesting of the restricted shares granted them in 2015 and prior. Additionally, the Company recognized a $0.5 million excess tax benefit from the vesting of restricted stock.

Selected Quarterly Financial Data (Unaudited)

12 Months Ended

Dec. 31, 2016

Selected Quarterly Financial Data (Unaudited)

Note 20—Selected Quarterly Financial Data (Unaudited)

Selected unaudited quarterly financial data for the years 2015 and 2016 are summarized below. The Company has derived this data from the unaudited consolidated interim financial statements that, in the Company's opinion, have been prepared on substantially the same basis as the audited financial statements contained elsewhere in this report and include all normal recurring adjustments necessary for a fair presentation of the financial information for the periods presented. These unaudited quarterly results should be read in conjunction with the financial statements and notes thereto included elsewhere in this report. The operating results in any quarter are not necessarily indicative of the results that may be expected for any future period.

	2015											2016
	First			Second			Third		Fourth			First			Second			Third		Fourth
	Quarter			Quarter			Quarter		Quarter			Quarter			Quarter			Quarter		Quarter
	(in thousands, except per share data)
Net sales	$	114,201		$	131,106		$	337,027	$	163,407		$	95,809		$	140,977		$	302,791	$	167,026
Gross profit	$	35,378		$	39,287		$	104,329	$	49,575		$	31,183		$	44,800		$	94,933	$	52,105
Income (loss) from operations	$	(4,199	)	$	(3,008	)	$	44,628	$	(6,891	)	$	(13,816	)	$	(1,100	)	$	34,413	$	(2,391	)
Income (loss) before provision (benefit) for income taxes	$	(7,154	)	$	(4,414	)	$	47,239	$	(9,078	)	$	(16,951	)	$	(3,441	)	$	31,612	$	(5,844	)
Net income (loss)	$	(7,581	)	$	(5,727	)	$	45,864	$	(9,386	)	$	(17,383	)	$	(4,145	)	$	30,529	$	(7,752	)
Basic earnings (loss) per share	$	(0.40	)	$	(0.30	)	$	2.47	$	(0.50	)	$	(1.01	)	$	(0.27	)	$	1.91	$	(0.47	)
Weighted average shares outstanding		19,090			19,108			18,559		18,781			17,218			16,402			16,044		16,098
Diluted earnings (loss) per share	$	(0.40	)	$	(0.30	)	$	1.12	$	(0.50	)	$	(1.01	)	$	(0.27	)	$	0.82	$	(0.47	)
Weighted average shares and equivalents outstanding		19,090			19,108			42,562		18,781			17,218			16,402			39,504		16,098

Quarterly and year-to-date computations of income (loss) per share amounts are made independently. Therefore, the sum of the per-share amounts for the quarters may not agree with the per share amounts for the year.

Litigation

12 Months Ended

Dec. 31, 2016

Litigation

Note 21—Litigation

On July 25, 2013, a purported class action lawsuit was filed in the United States District Court for the Central District of California captioned Melot v. JAKKS Pacific, Inc. et al., Case No. CV13-05388 (JAK) against Stephen G. Berman, Joel M. Bennett (collectively the “Individual Defendants”), and the Company (collectively, “Defendants”). On July 30, 2013, a second purported class action lawsuit was filed containing similar allegations against Defendants captioned Dylewicz v. JAKKS Pacific, Inc. et al., Case No. CV13-5487 (OON). The two cases (collectively, the “Class Action”) were consolidated on December 2, 2013 and a lead plaintiff appointed. A Third Amended Complaint (“TAC”) was filed on March 23, 2015 with similar allegations. The Company filed a motion to dismiss the TAC and that motion was argued on July 22, 2015; after argument it was taken on submission and dismissal with prejudice was ordered on November 18, 2016, and final judgment thereon of dismissal with prejudice was entered on December 12, 2016. The foregoing is a summary of the pleadings and is subject to the text of the pleadings which are on file with the Court.

On February 25, 2014, a shareholder derivative action was filed in the Central District of California by Advanced Advisors, G.P. against the Company, nominally, and against Messrs. Berman, Bennett, Miller, Skala, Glick, Ellin, Almagor, Poulsen and Reilly and Ms. Brodsky (Advanced Partners, G.P., v. Berman, et al., CV14-1420 (DSF)). On March 6, 2014, a second shareholder derivative action alleging largely the same claims against the same defendants was filed in the Central District of California by Louisiana Municipal Police Employees Retirement System (Louisiana Municipal Police Employees Retirement System v. Berman et al., CV14-1670 (GHF)). On April 17, 2014, the cases were consolidated under Case No. 2:14-01420-JAK (SSx) (the “Derivative Action”). On April 30, 2014, a consolidated amended complaint (“CAC”) was filed, which alleged (i) a claim for contribution under Sections 10(b) and 21(D) of the Securities Exchange Act related to allegations made in the Class Action; (ii) derivative and direct claims for alleged violations of Section 14 of the Exchange Act and Rule 14a-9 promulgated thereunder related to allegedly misleading statements about Mr. Berman’s compensation plan in the Company’s October 25, 2013 proxy statement; (iii) derivative claims for breaches of fiduciary duty related to the Company’s response to an unsolicited indication of interest from Oaktree Capital, stock repurchase, standstill agreement with the Clinton Group, and decisions related to the NantWorks joint venture; and (iv) claims against Messrs. Berman and Bennett for breach of fiduciary duty related to the Class Action. The CAC seeks compensatory damages, pre-judgment and post-judgment interest, and declaratory and equitable relief. The foregoing is a summary of the CAC and is subject to the text of the CAC, which is on file with the Court. A motion to dismiss the CAC or, in the alternative, to stay the CAC, was filed in May 2014. The Court granted the motion in part and denied the motion in part with leave for plaintiff to file an amended pleading. Plaintiff declined to do so. Accordingly, claims (i), (ii) and (iv) were dismissed and only the elements of claim (iii) not relating to the NantWorks joint venture remained. Thus, there were no surviving claims against Messrs. Poulsen, Reilly and Bennett and Ms. Brodsky and the Court approved the parties’ stipulation to strike their names as defendants in the CAC. Pleadings in response to the CAC were filed on October 30, 2014, which are on file with the Court. The matter was referred to mediation by the Court and the parties, at the mediation, reached an agreement in principle to resolve the action. Thereafter the parties entered into a memorandum of such agreement, subject to Court approval. A motion was filed seeking preliminary approval of the settlement and establishment of the procedure for final approval of the settlement; preliminary approval of the settlement was granted and a hearing regarding final approval of the proposed settlement and attorneys’ fees in connection therewith took place on November 2, 2015. At the hearing, the Judge indicated that he would approve the settlement with a formal order, and that was done in November 2016. The impact of the settlement has been reflected in the consolidated financial statements.

The Company is a party to, and certain of its property is the subject of, various pending claims and legal proceedings that routinely arise in the ordinary course of its business, but the Company does not believe that any of these claims or proceedings will have a material effect on its business, financial condition or results of operations.

Subsequent Events

12 Months Ended

Dec. 31, 2016

Subsequent Events

Note 22—Subsequent Events

During January and February 2017, the Company entered into exchange transactions with holders of its 4.25% convertible senior notes (due 2018) to exchange at par an aggregate of approximately $39.1 million principal amount of such notes for 2.9 million shares of its common stock and approximately $24.1 million in cash. After these exchanges, the remaining balance of the principal amount of the 2018 Notes was reduced to approximately $54.7 million.

In March 2017, the Company entered into an agreement with Hongkong Meisheng Culture Company Ltd. ("Meisheng Culture Company") to sell 3,660,891 shares of the Company's common stock to Meisheng Culture Company for a total purchase price of $19.3 million. The transaction is subject to approval by the shareholders of Meisheng Culture Company's parent company (Meisheng Culture & Creative Corp., Ltd.), and regulatory filings in China by Meisheng Culture Company. Meisheng Culture & Creative Corp., Ltd. is one of the Company's joint venture partners (Note 2).

Schedule II-Valuation And Qualifying Accounts

12 Months Ended

Dec. 31, 2016

Schedule II-Valuation And Qualifying Accounts

JAKKS PACIFIC, INC. AND SUBSIDIARIES

SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS

YEARS ENDED DECEMBER 31, 2014, 2015 and 2016

Allowances are deducted from the assets to which they apply, except for sales returns and allowances.

	Balance at		Charged to						Balance
	Beginning		Costs and						at End
	of Period		Expenses			Deductions			of Period
	(In thousands)
Year ended December 31, 2014:
Allowance for:
Uncollectible accounts	$	2,928	$	1,545		$	(1,209	)	$	3,264
Reserve for potential product obsolescence		9,487		5,524			(7,134	)		7,877
Reserve for sales returns and allowances		31,374		44,741			(51,638	)		24,477
	$	43,789	$	51,810		$	(59,981	)	$	35,618
Year ended December 31, 2015:
Allowance for:
Uncollectible accounts	$	3,264	$	(143	)	$	(407	)	$	2,714
Reserve for potential product obsolescence		7,877		1,511			(1,337	)		8,051
Reserve for sales returns and allowances		24,477		42,507			(49,717	)		17,267
	$	35,618	$	43,875		$	(51,461	)	$	28,032
Year ended December 31, 2016:
Allowance for:
Uncollectible accounts	$	2,714	$	303		$	(153	)	$	2,864
Reserve for potential product obsolescence		8,051		(161	)		(273	)		7,617
Reserve for sales returns and allowances		17,267		50,582			(51,425	)		16,424
	$	28,032	$	50,724		$	(51,851	)	$	26,905

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2016

Principles of consolidation

These consolidated financial statements include the accounts of the Company, its wholly owned subsidiaries, and its majority owned joint venture. All intercompany transactions have been eliminated.

Cash and cash equivalents

Cash and cash equivalents are maintained at financial institutions and, at times, balances may exceed federally insured limits. The Company has never experienced any losses related to these balances.

Accounts Receivable and Allowance for Doubtful Accounts

Use of estimates

Revenue recognition

Fair value measurements

Level 1:	Valuations for assets and liabilities traded in active markets from readily available pricing sources for market transactions involving identical assets or liabilities.
Level 2:	Valuations for assets and liabilities traded in less active dealer or broker markets. Valuations are obtained from third-party pricing services for identical or similar assets or liabilities.
Level 3:	Valuations incorporate certain assumptions and projections in determining the fair value assigned to such assets or liabilities.

The following table summarizes the Company’s financial assets measured at fair value on a recurring basis as of December 31 (in thousands):

			Fair Value Measurements
	Carrying Amount as of		As of December 31, 2015
	December 31, 2015		Level 1		Level 2		Level 3

Cash equivalents	$	13,218	$	13,218	$	—	$	—

			Fair Value Measurements
	Carrying Amount as of		As of December 31, 2016
	December 31, 2016		Level 1		Level 2		Level 3

Cash equivalents	$	15,312	$	15,312	$	—	$	—

For the years ended December 31, 2015 and 2016, there was no impairment to the value of the Company’s non-financial assets.

Inventory

		December 31,
		2015		2016
Raw materials	$	3,717	$	5,204
Finished goods		56,827		70,231
	$	60,544	$	75,435

Property and equipment

Property and equipment are stated at cost and are being depreciated using the straight-line method over their estimated useful lives as follows:

Office equipment	5 years
Automobiles	5 years
Furniture and fixtures	5 - 7 years
Leasehold improvements	Shorter of length of lease or 10 years

Other Comprehensive Income (Loss)

Advertising

Income taxes

Foreign Currency Translation Exposure

Foreign Currency Transaction Exposure

Accounting for the impairment of finite-lived tangible and intangible assets

Goodwill and other indefinite-lived intangible assets

For the years ended December 31, 2014, 2015 and 2016, there was no impairment to the value of the Company's goodwill or trademarks.

Share-based Compensation

Earnings per share

	2014
		Income	Weighted Average Shares			Per Share
Basic EPS
Income available to common stockholders	$	21,509		20,948	$	1.03
Effect of dilutive securities:
Assumed conversion of convertible senior notes		7,345		20,388
Options and warrants		—		—
Unvested restricted stock grants		—		180
Diluted EPS
Income available to common stockholders plus assumed exercises and conversion	$	28,854		41,516	$	0.70

	2015
		Income	Weighted Average Shares		Per Share
Basic EPS
Income available to common stockholders	$	23,254	19,435	$	1.20
Effect of dilutive securities:
Assumed conversion of convertible senior notes		7,385	23,369
Options and warrants		—	—
Unvested performance stock grants		—	347
Unvested restricted stock grants		—	170
Diluted EPS
Income available to common stockholders plus assumed exercises and conversion	$	30,639	43,321	$	0.71

			2016
	Income		Weighted Average Shares		Per Share
Basic EPS
Income available to common stockholders	$	1,243		16,542	$	0.08
Effect of dilutive securities:
Assumed conversion of convertible senior notes		—		—
Options and warrants		—		—
Unvested performance stock grants		—		—
Unvested restricted stock grants		—		123
Diluted EPS
Income available to common stockholders plus assumed exercises and conversion	$	1,243		16,665	$	0.07

Debt with Conversion and Other Options

Reclassifications

Certain reclassifications were made to the prior year consolidated financial statements to conform to current year presentation.

Recent Accounting Pronouncements

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2016

Financial Assets Measured at Fair Value on Recurring Basis

The following table summarizes the Company’s financial assets measured at fair value on a recurring basis as of December 31 (in thousands):

			Fair Value Measurements
	Carrying Amount as of		As of December 31, 2015
	December 31, 2015		Level 1		Level 2		Level 3

Cash equivalents	$	13,218	$	13,218	$	—	$	—

			Fair Value Measurements
	Carrying Amount as of		As of December 31, 2016
	December 31, 2016		Level 1		Level 2		Level 3

Cash equivalents	$	15,312	$	15,312	$	—	$	—

Net of Inventory Obsolescence Reserve

		December 31,
		2015		2016
Raw materials	$	3,717	$	5,204
Finished goods		56,827		70,231
	$	60,544	$	75,435

Property and Equipment, Estimated Useful Lives

Property and equipment are stated at cost and are being depreciated using the straight-line method over their estimated useful lives as follows:

Office equipment	5 years
Automobiles	5 years
Furniture and fixtures	5 - 7 years
Leasehold improvements	Shorter of length of lease or 10 years

Reconciliation of the Weighted-Average Shares Used in Computation of Basic and Diluted Earnings Per Share

	2014
		Income	Weighted Average Shares			Per Share
Basic EPS
Income available to common stockholders	$	21,509		20,948	$	1.03
Effect of dilutive securities:
Assumed conversion of convertible senior notes		7,345		20,388
Options and warrants		—		—
Unvested restricted stock grants		—		180
Diluted EPS
Income available to common stockholders plus assumed exercises and conversion	$	28,854		41,516	$	0.70

	2015
		Income	Weighted Average Shares		Per Share
Basic EPS
Income available to common stockholders	$	23,254	19,435	$	1.20
Effect of dilutive securities:
Assumed conversion of convertible senior notes		7,385	23,369
Options and warrants		—	—
Unvested performance stock grants		—	347
Unvested restricted stock grants		—	170
Diluted EPS
Income available to common stockholders plus assumed exercises and conversion	$	30,639	43,321	$	0.71

			2016
	Income		Weighted Average Shares		Per Share
Basic EPS
Income available to common stockholders	$	1,243		16,542	$	0.08
Effect of dilutive securities:
Assumed conversion of convertible senior notes		—		—
Options and warrants		—		—
Unvested performance stock grants		—		—
Unvested restricted stock grants		—		123
Diluted EPS
Income available to common stockholders plus assumed exercises and conversion	$	1,243		16,665	$	0.07

Business Segments, Geographic Data, Sales by Product Group and Major Customers (Tables)

12 Months Ended

Dec. 31, 2016

Information by Segment and Reconciliation to Reported Amounts

Information by segment and a reconciliation to reported amounts as of December 31, 2015 and 2016 and for the three years in the period ended December 31, 2016 are as follows (in thousands):

	Years Ended December 31,
	2014		2015		2016
Net Sales
U.S. and Canada	$	546,864	$	478,728	$	478,595
International		121,607		169,826		131,229
Halloween		141,589		97,187		96,779
	$	810,060	$	745,741	$	706,603

	Years Ended December 31,
	2014		2015			2016
Income from Operations
U.S. and Canada	$	20,864	$	17,562		$	17,434
International		6,275		16,249			4,360
Halloween		4,188		(3,281	)		(4,688	)
	$	31,327	$	30,530		$	17,106

	Years Ended December 31,
	2014		2015		2016
Depreciation and Amortization Expense
U.S. and Canada	$	13,411	$	13,023	$	16,817
International		2,991		4,439		4,549
Halloween		2,569		1,398		1,578
	$	18,971	$	18,860	$	22,944

	December 31,
	2015		2016
Assets
U.S. and Canada	$	313,312	$	306,895
International		149,950		119,560
Halloween		36,358		37,848
	$	499,620	$	464,303

Information by Geographic Area

The following tables present information about the Company by geographic area as of December 31, 2015 and 2016 and for each of the three years in the period ended December 31, 2016 (in thousands):

	December 31,
	2015		2016
Long-lived Assets
China	$	10,172	$	15,710
United States		7,702		6,587
Hong Kong		561		544
	$	18,435	$	22,841

	Years Ended December 31,
	2014		2015		2016
Net Sales by Customer Area
United States	$	653,497	$	542,101	$	544,096
Europe		67,027		117,313		92,811
Canada		33,040		32,587		26,947
Hong Kong		2,746		1,675		2,012
Other		53,750		52,065		40,737
	$	810,060	$	745,741	$	706,603

Net Sales to Major Customers

Net sales to major customers were as follows (in thousands, except for percentages):

	2014					2015					2016
			Percentage of					Percentage of					Percentage of
	Amount		Net Sales			Amount		Net Sales			Amount		Net Sales
Wal-Mart	$	165,777		20.5	%	$	163,333		21.9	%	$	165,345		23.4	%
Target		124,257		15.3			96,766		13.0			110,159		15.6
Toys ‘R’ Us		93,926		11.6			71,150		9.5			66,633		9.4
	$	383,960		47.4	%	$	331,249		44.4	%	$	342,137		48.4	%

Goodwill (Tables)

12 Months Ended

Dec. 31, 2016

Changes in Carrying Amount of Goodwill

The changes in the carrying amount of goodwill for the years ended December 31, 2015 and 2016 are as follows (in thousands):

	U.S. and Canada			International			Halloween			Total
Balance, December 31, 2014:
Goodwill	$	30,418		$	11,795		$	2,279		$	44,492
Adjustments to goodwill for foreign currency translation		(200	)		(78	)		(15	)		(293	)
Balance December 31, 2015:		30,218			11,717			2,264			44,199
Adjustments to goodwill for foreign currency translation		(678	)		(262	)		(51	)		(991	)
Balance December 31, 2016:	$	29,540		$	11,455		$	2,213		$	43,208

Intangible Assets Other Than Goodwill (Tables)

12 Months Ended

Dec. 31, 2016

Intangible Assets

Intangible assets are as follows (in thousands, except for weighted useful lives):

			December 31, 2015							December 31, 2016
	Weighted Useful Lives		Gross Carrying Amount		Accumulated Amortization			Net Amount		Gross Carrying Amount		Accumulated Amortization			Net Amount
	(Years)

Amortized Intangible Assets:
Licenses		5.81	$	24,930	$	(20,436	)	$	4,494	$	20,130	$	(17,248	)	$	2,882
Product lines		7.50		50,093		(14,376	)		35,717		50,093		(20,634	)		29,459
Customer relationships		4.90		3,152		(2,195	)		957		3,152		(2,755	)		397
Trade names		5.00		3,000		(2,050	)		950		3,000		(2,650	)		350
Non-compete/ Employment contracts		5.00		200		(133	)		67		200		(177	)		23
Total amortized intangible assets			$	81,375	$	(39,190	)	$	42,185	$	76,575	$	(43,464	)	$	33,111
Unamortized Intangible Assets:
Trademarks			$	2,308	$	―		$	2,308	$	2,608	$	―		$	2,608

Future Amortization Expenses

The Company currently estimates continuing future amortization expense to be approximately (in thousands):

2017	$	8,780
2018		6,137
2019		3,144
2020		3,053
2021		3,053
Thereafter		8,944
	$	33,111

Accrued Expenses (Tables)

12 Months Ended

Dec. 31, 2016

Accrued Expenses

Accrued expenses consist of the following (in thousands):

	2015		2016
Royalties	$	21,599	$	13,805
Inventory liabilities		6,754		5,425
Professional fees		2,535		3,696
Goods in transit		2,736		3,441
Salaries and employee benefits		185		3,243
Interest expense		2,333		2,520
Bonuses		6,275		1,500
Sales commissions		1,132		816
Unearned revenue		1,720		779
Molds and tools		2,669		―
Other		6,143		3,420
	$	54,081	$	38,645

Convertible Senior Notes (Tables)

12 Months Ended

Dec. 31, 2016

Convertible Senior Notes

Convertible senior notes consist of the following (in thousands):

	December 31, 2015						December 31, 2016
			Debt						Debt
	Principal		Issuance		Net		Principal		Issuance		Net
	Amount		Costs		Amount		Amount		Costs		Amount
4.25% convertible senior notes (due 2018)	$	100,000	$	2,181	$	97,819	$	93,865	$	1,098	$	92,767
4.875% convertible senior notes (due 2020)		115,000		3,653		111,347		113,000		2,760		110,240
Total convertible senior notes, net of debt issuance costs	$	215,000	$	5,834	$	209,166	$	206,865	$	3,858	$	203,007

4.50% Convertible senior notes (due 2014)

Components of Convertible Senior Notes

Key components of the 4.50% convertible senior notes due 2014 consist of the following (in thousands):

	Years Ended December 31,
	2014		2015			2016
Contractual interest expense on the coupon	$	1,463	$	―	$	―
Amortization of debt discount and debt issuance costs recognized as interest expense		1,140		―		―
	$	2,603	$	―	$	―

4.25% Convertible Senior Notes (due 2018)

Components of Convertible Senior Notes

Key components of the 4.25% convertible senior notes due 2018 consist of the following (in thousands):

	Years Ended December 31,
	2014		2015		2016
Contractual interest expense	$	4,250	$	4,250	$	4,191
Amortization of debt issuance costs recognized as interest expense		835		836		1,172
	$	5,085	$	5,086	$	5,363

4.875% Convertible Senior Notes (due 2020)

Components of Convertible Senior Notes

Key components of the 4.875% convertible senior notes due 2020 consist of the following (in thousands):

	Years Ended December 31,
	2014		2015		2016
Contractual interest expense	$	3,135	$	5,606	$	5,508
Amortization of debt issuance costs recognized as interest expense		473		811		804
	$	3,608	$	6,417	$	6,312

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6479336&loc=d3e64711-112823

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(e),(f))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=64930739&loc=d3e28878-108400

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21538-112644

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21506-112644

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=64930785&loc=d3e28541-108399

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=64930785&loc=d3e28551-108399

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21521-112644

+ Details

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2016

Provision for Income Tax

Provision for income taxes reflected in the accompanying consolidated statements of operations are comprised of the following (in thousands):

	2014			2015			2016
Federal	$	(4	)	$	—		$	1,549
State and local		287			708			652
Foreign		3,887			3,044			1,637
Total Current		4,170			3,752			3,838
APIC		(84	)		—			548
Deferred		(371	)		(329	)		(259	)
Total	$	3,715		$	3,423		$	4,127

Components of Deferred Tax Assets (Liabilities)

The components of deferred tax assets/(liabilities) are as follows (in thousands):

	2015			2016
Net deferred tax assets/(liabilities):
Reserve for sales allowances and possible losses	$	756		$	801
Accrued expenses		1,193			1,739
Prepaid royalties		13,155			16,806
Accrued royalties		3,963			2,638
Inventory		3,315			3,506
State income taxes		―			98
Property and equipment		3,833			4,997
Original issue discount interest		(10,332	)		(6,945	)
Goodwill and intangibles		35,086			29,378
Share based compensation		2,359			1,607
Undistributed foreign earnings		―			(48,731	)
Federal and state net operating loss carryforwards		34,684			22,755
Credit carryforwards		13,254			21,097
Other		(2,621	)		(2,495	)
Gross		98,645			47,251
Valuation allowance		(100,938	)		(49,285	)
Total net deferred tax assets/(liabilities)	$	(2,293	)	$	(2,034	)

Significant Differences in Tax at Statutory and Effective Rates

Provision for income taxes varies from the U.S. federal statutory rate. The following reconciliation shows the significant differences in the tax at statutory and effective rates:

	2014			2015			2016
Federal income tax expense		35.0	%		35.0	%		35.0	%
State income tax expense, net of federal tax effect		―			1.0			(3.6	)
Effect of differences in U.S. and foreign statutory rates		(14.1	)		(9.4	)		(53.7	)
Uncertain tax positions		―			0.3			3.4
Earn-out adjustments		―			(7.4	)		―
Provision to return		―			12.2			4.5
Non-deductible expenses		1.1			1.1			8.9
Other		(1.5	)		0.5			0.6
Foreign deemed dividend		―			1.7			262.2
Foreign tax credit		―			(0.5	)		(126.1	)
Undistributed foreign earnings		―			―			906.5
Valuation allowance		(5.8	)		(21.6	)		(960.9	)
		14.7	%		12.9	%		76.8	%

Income (Loss) Before Provision for Income Tax

The components of income (loss) before provision for income taxes are as follows (in thousands):

	2014		2015		2016
Domestic	$	5,358	$	11,692	$	(7,760	)
Foreign		19,866		14,901		13,136
	$	25,224	$	26,593	$	5,376

Effective Tax Rate

The following table provides further information of UTPs that would affect the effective tax rate, if recognized, as of December 31, 2016 (in millions):

Balance, January 1, 2014	$	2.6
Current year additions		—
Current year reduction due to lapse of applicable statute of limitations		(0.1	)
Balance, December 31, 2014		2.5
Current year additions		1.8
Current year reduction due to lapse of applicable statute of limitations		(2.1	)
Balance, December 31, 2015		2.2
Current year additions		0.1
Current year reduction due to audit settlement		—
Balance, December 31, 2016	$	2.3

Leases (Tables)

12 Months Ended

Dec. 31, 2016

Minimum Annual Lease Payments

Including leases abandoned during 2014, the following is a schedule of minimum annual lease payments (in thousands).

2017	$	12,030
2018		9,422
2019		6,276
2020		4,247
2021		3,989
Thereafter		9,184
	$	45,148

Commitments (Tables)

12 Months Ended

Dec. 31, 2016

Future Annual Minimum Guaranteed Amount

The aggregate future annual minimum guaranteed amounts due under those agreements as of December 31, 2016 are as follows (in thousands):

2017	$	8,226
2018		5,492
2019		5,332
2020		2,285
	$	21,335

Royalty Payments

Future Annual Minimum Guaranteed Amount

Future annual minimum royalty guarantees as of December 31, 2016 are as follows (in thousands):

2017	$	51,950
2018		32,677
2019		7,638
	$	92,265

Share-Based Payments (Tables)

12 Months Ended

Dec. 31, 2016

Restricted Stock Award Activity

The following table summarizes the restricted stock award activity, annually, for the years ended December 31, 2014, 2015 and 2016:

	Restricted and Performance Based Stock Awards (RSA)
	Number of Shares			Weighted Average Fair Value

Outstanding, December 31, 2013		721,752		$	6.88
Awarded		610,143			6.72
Released		(219,187	)		7.99
Forfeited		(544,651	)		6.61
Outstanding, December 31, 2014		568,057			6.54
Awarded		734,823			6.81
Released		(227,616	)		6.60
Forfeited		(663,855	)		6.77
Outstanding, December 31, 2015		411,409			6.61
Awarded		648,351			7.00
Released		(255,307	)		6.68
Forfeited		(608,000	)		6.88
Outstanding, December 31, 2016		196,453			7.01

Total Share-Based Compensation Expense and Related Tax Benefits Recognized

The following table summarizes the total share-based compensation expense and related tax benefits recognized (in thousands):

	Year Ended December 31,
	2014		2015		2016

Restricted stock compensation expense	$	1,473	$	1,562	$	1,621
Excess tax benefit related to restricted stock compensation		—		—		548

Stock Option Activity Pursuant to Plan

Stock option activity pursuant to the Plan is summarized as follows:

	Number of Shares			Weighted Average Exercise Price
Outstanding, December 31, 2013	127,144		$	20.20
Cancelled	(52,144	)		19.50
Outstanding, December 31, 2014	75,000			20.69
Cancelled	(75,000	)		20.69
Outstanding, December 31, 2015	—			—

Selected Quarterly Financial Data (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2016

Quarterly Financial Data

	2015											2016
	First			Second			Third		Fourth			First			Second			Third		Fourth
	Quarter			Quarter			Quarter		Quarter			Quarter			Quarter			Quarter		Quarter
	(in thousands, except per share data)
Net sales	$	114,201		$	131,106		$	337,027	$	163,407		$	95,809		$	140,977		$	302,791	$	167,026
Gross profit	$	35,378		$	39,287		$	104,329	$	49,575		$	31,183		$	44,800		$	94,933	$	52,105
Income (loss) from operations	$	(4,199	)	$	(3,008	)	$	44,628	$	(6,891	)	$	(13,816	)	$	(1,100	)	$	34,413	$	(2,391	)
Income (loss) before provision (benefit) for income taxes	$	(7,154	)	$	(4,414	)	$	47,239	$	(9,078	)	$	(16,951	)	$	(3,441	)	$	31,612	$	(5,844	)
Net income (loss)	$	(7,581	)	$	(5,727	)	$	45,864	$	(9,386	)	$	(17,383	)	$	(4,145	)	$	30,529	$	(7,752	)
Basic earnings (loss) per share	$	(0.40	)	$	(0.30	)	$	2.47	$	(0.50	)	$	(1.01	)	$	(0.27	)	$	1.91	$	(0.47	)
Weighted average shares outstanding		19,090			19,108			18,559		18,781			17,218			16,402			16,044		16,098
Diluted earnings (loss) per share	$	(0.40	)	$	(0.30	)	$	1.12	$	(0.50	)	$	(1.01	)	$	(0.27	)	$	0.82	$	(0.47	)
Weighted average shares and equivalents outstanding		19,090			19,108			42,562		18,781			17,218			16,402			39,504		16,098

Principal Industry - Additional Information (Detail)	12 Months Ended
Principal Industry - Additional Information (Detail)	Dec. 31, 2016
Nature Of Operations [Line Items]
Primary business operation commenced date	1995-07

Summary of Significant Accounting Policies - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended		12 Months Ended
	Jun. 30, 2014	Jul. 31, 2013	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Jan. 31, 2016
Significant Accounting Policies [Line Items]
Depreciation expense			$ 13,900	$ 10,900	$ 10,400
Advertising expenses			20,100	15,800	19,300
Restricted stock compensation expense			$ 1,621	1,562	1,473
Prepaid forward contract, settlement year			2020
Long term debt, face amount			$ 206,865	215,000
Repurchase of common stock under prepaid forward repurchase agreement, shares	3,112,840
Repurchase of common stock, average price per share	$ 7.71
Payment for repurchase of common stock	$ 24,000		$ 13,506	$ 13,193	$ 24,000
Convertible Senior Notes
Significant Accounting Policies [Line Items]
Potentially dilutive securities excluded from computation of diluted earnings per common share			23,004,916	0	0
Options and Warrants
Significant Accounting Policies [Line Items]
Potentially dilutive securities excluded from computation of diluted earnings per common share			1,500,000	1,518,596	1,601,272
Restricted Stock
Significant Accounting Policies [Line Items]
Potentially dilutive securities excluded from computation of diluted earnings per common share			0	0	0
Minimum
Significant Accounting Policies [Line Items]
Discount on invoiced amount of products			1.00%
Maximum
Significant Accounting Policies [Line Items]
Discount on invoiced amount of products			6.00%
Molds and tools
Significant Accounting Policies [Line Items]
Property and equipment useful life			2 years
4.25% Convertible Senior Notes (due 2018)
Significant Accounting Policies [Line Items]
Convertible senior note payable, fair value			$ 83,700	$ 102,000
Debt instrument, interest rate		4.25%	4.25%	4.25%
Debt instrument, maturity year			2018	2018
Long term debt, face amount		$ 100,000	$ 93,865	$ 100,000
Debt instrument, maturity date		Aug. 01, 2018
Frequency of interest payment			Semi-annually
Conversion rate in share per $1000 principal amount of notes		114.3674
Debt instrument, conversion rate		$ 8.74
Debt instrument repurchase amount			$ 6,100
4.875% Convertible Senior Notes (due 2020)
Significant Accounting Policies [Line Items]
Convertible senior note payable, fair value			$ 89,300	$ 112,300
Debt instrument, interest rate	4.875%		4.875%	4.875%
Debt instrument, maturity year			2020	2020
Long term debt, face amount	$ 115,000		$ 113,000	$ 115,000
Debt instrument, maturity date	Jun. 01, 2020
Frequency of interest payment			Semi-annually
Conversion rate in share per $1000 principal amount of notes	103.7613
Debt instrument, conversion rate	$ 9.64
Debt instrument repurchase amount						$ 2,000
Net proceeds from debt instrument	$ 110,400
China Joint Venture
Significant Accounting Policies [Line Items]
Percentage of ownership interest in joint venture			51.00%

Financial Assets Measured at Fair Value on Recurring Basis (Detail) - Cash Equivalents - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Fair Value Measurements, Level 1
Schedule Of Servicing Assets At Fair Value And Amortized Value [Line Items]
Assets measured at fair value on recurring basis	$ 15,312	$ 13,218
Carrying Amount
Schedule Of Servicing Assets At Fair Value And Amortized Value [Line Items]
Assets measured at fair value on recurring basis	$ 15,312	$ 13,218

Inventory Valued at Lower of Cost (First-in, First-out) or Market, Net of Inventory Obsolescence Reserve (Detail) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Inventory [Line Items]
Raw materials	$ 5,204	$ 3,717
Finished goods	70,231	56,827
Inventory, net	$ 75,435	$ 60,544

Property and Equipment, Estimated Useful Lives (Detail)	12 Months Ended
Property and Equipment, Estimated Useful Lives (Detail)	Dec. 31, 2016
Office Equipment
Finite-Lived Intangible Assets [Line Items]
Property and equipment useful life	5 years
Automobiles
Finite-Lived Intangible Assets [Line Items]
Property and equipment useful life	5 years
Furniture and Fixtures \| Minimum
Finite-Lived Intangible Assets [Line Items]
Property and equipment useful life	5 years
Furniture and Fixtures \| Maximum
Finite-Lived Intangible Assets [Line Items]
Property and equipment useful life	7 years
Leasehold Improvements
Finite-Lived Intangible Assets [Line Items]
Property and equipment useful life	Shorter of length of lease or 10 years

Reconciliation of Weighted Average Shares Used in Computation of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Earnings Per Share Note [Line Items]
Effect of dilutive securities, Options, warrants,unvested restricted stock grants and unvested performance stock grants									$ 0		$ 0
Income available to common stockholders									1,243	$ 23,254	21,509
Income available to common stockholders plus assumed exercises and conversion									$ 1,243	30,639	28,854
Effect of dilutive securities, assumed conversion of convertible senior notes										$ 7,385	$ 7,345
Earnings per share - basic, Weighted Average Shares
Weighted Average Shares, available to common stockholders	16,098	16,044	16,402	17,218	18,781	18,559	19,108	19,090	16,542	19,435	20,948
Effect of dilutive securities:
Assumed conversion of convertible senior notes										23,369	20,388
Options and warrants									0	0	0
Earnings per share - diluted, Weighted Average Shares
Income available to common stockholders plus assumed exercises and conversion, weighted average shares	16,098	39,504	16,402	17,218	18,781	42,562	19,108	19,090	16,665	43,321	41,516
Earnings per share - basic
Net income available to common stockholders, per-share	$ (0.47)	$ 1.91	$ (0.27)	$ (1.01)	$ (0.50)	$ 2.47	$ (0.30)	$ (0.40)	$ 0.08	$ 1.20	$ 1.03
Earnings per share - diluted
Income available to common stockholders plus assumed exercises and conversion, per-share	$ (0.47)	$ 0.82	$ (0.27)	$ (1.01)	$ (0.50)	$ 1.12	$ (0.30)	$ (0.40)	$ 0.07	$ 0.71	$ 0.70
Restricted Stock
Earnings Per Share Note [Line Items]
Effect of dilutive securities, Options, warrants,unvested restricted stock grants and unvested performance stock grants									$ 0	$ 0
Effect of dilutive securities:
Unvested stock grants									123	170	180
Performance Stock
Earnings Per Share Note [Line Items]
Effect of dilutive securities, Options, warrants,unvested restricted stock grants and unvested performance stock grants									$ 0	$ 0
Effect of dilutive securities:
Unvested stock grants										347
Options and Warrants
Earnings Per Share Note [Line Items]
Effect of dilutive securities, Options, warrants,unvested restricted stock grants and unvested performance stock grants										$ 0	$ 0

Information by Segment and Reconciliation to Reported Amounts (Detail) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Segment Reporting Information [Line Items]
Net Sales	$ 167,026	$ 302,791	$ 140,977	$ 95,809	$ 163,407	$ 337,027	$ 131,106	$ 114,201	$ 706,603	$ 745,741	$ 810,060
Income from Operations	(2,391)	$ 34,413	$ (1,100)	$ (13,816)	(6,891)	$ 44,628	$ (3,008)	$ (4,199)	17,106	30,530	31,327
Depreciation and Amortization Expense									22,944	18,860	18,971
Assets	464,303				499,620				464,303	499,620
U.S. and Canada
Segment Reporting Information [Line Items]
Net Sales									478,595	478,728	546,864
Income from Operations									17,434	17,562	20,864
Depreciation and Amortization Expense									16,817	13,023	13,411
Assets	306,895				313,312				306,895	313,312
International
Segment Reporting Information [Line Items]
Net Sales									131,229	169,826	121,607
Income from Operations									4,360	16,249	6,275
Depreciation and Amortization Expense									4,549	4,439	2,991
Assets	119,560				149,950				119,560	149,950
Halloween
Segment Reporting Information [Line Items]
Net Sales									96,779	97,187	141,589
Income from Operations									(4,688)	(3,281)	4,188
Depreciation and Amortization Expense									1,578	1,398	$ 2,569
Assets	$ 37,848				$ 36,358				$ 37,848	$ 36,358

Business Segments, Geographic Data, Sales by Product Group and Major Customers - Additional Information (Detail) $ in Thousands	12 Months Ended
	Dec. 31, 2016 USD ($) Customer	Dec. 31, 2015 USD ($) Customer
Segment Reporting Information [Line Items]
Tools, dyes and molds	$ 22,841	$ 18,435
Percentage of net sales accounted from customer description	No other customer accounted for more than 10% of the Company's total net sales.
Number of major customers \| Customer	3	3
China
Segment Reporting Information [Line Items]
Tools, dyes and molds	$ 15,710	$ 10,172
Net Accounts Receivable \| Three Largest Customers \| Customer Concentration Risk
Segment Reporting Information [Line Items]
Percentage of net accounts receivable accounted for by three largest customers	35.80%	56.20%

Information by Geographic Area (Detail) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived Assets	$ 22,841				$ 18,435				$ 22,841	$ 18,435
Net Sales	167,026	$ 302,791	$ 140,977	$ 95,809	163,407	$ 337,027	$ 131,106	$ 114,201	706,603	745,741	$ 810,060
China
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived Assets	15,710				10,172				15,710	10,172
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived Assets	6,587				7,702				6,587	7,702
Net Sales									544,096	542,101	653,497
Hong Kong
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-lived Assets	$ 544				$ 561				544	561
Net Sales									2,012	1,675	2,746
Europe
Revenues from External Customers and Long-Lived Assets [Line Items]
Net Sales									92,811	117,313	67,027
Canada
Revenues from External Customers and Long-Lived Assets [Line Items]
Net Sales									26,947	32,587	33,040
Other
Revenues from External Customers and Long-Lived Assets [Line Items]
Net Sales									$ 40,737	$ 52,065	$ 53,750

Net Sales to Major Customers (Detail) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Revenue, Major Customer [Line Items]
Net Sales	$ 167,026	$ 302,791	$ 140,977	$ 95,809	$ 163,407	$ 337,027	$ 131,106	$ 114,201	$ 706,603	$ 745,741	$ 810,060
Wal-Mart
Revenue, Major Customer [Line Items]
Net Sales									165,345	163,333	165,777
Target
Revenue, Major Customer [Line Items]
Net Sales									110,159	96,766	124,257
Toys 'R' Us
Revenue, Major Customer [Line Items]
Net Sales									66,633	71,150	93,926
Major Customer
Revenue, Major Customer [Line Items]
Net Sales									$ 342,137	$ 331,249	$ 383,960
Net Sales \| Customer Concentration Risk
Revenue, Major Customer [Line Items]
Percentage of Net Sales from major customer									48.40%	44.40%	47.40%
Net Sales \| Wal-Mart \| Customer Concentration Risk
Revenue, Major Customer [Line Items]
Percentage of Net Sales from major customer									23.40%	21.90%	20.50%
Net Sales \| Target \| Customer Concentration Risk
Revenue, Major Customer [Line Items]
Percentage of Net Sales from major customer									15.60%	13.00%	15.30%
Net Sales \| Toys 'R' Us \| Customer Concentration Risk
Revenue, Major Customer [Line Items]
Percentage of Net Sales from major customer									9.40%	9.50%	11.60%

Joint Ventures - Additional Information (Detail) shares in Millions	1 Months Ended	12 Months Ended
	Sep. 30, 2012 USD ($) shares	Dec. 31, 2016 USD ($) Project	Dec. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)	Dec. 31, 2012 USD ($)
Schedule of Equity Method Investments [Line Items]
Equity in net income/(loss) of joint venture		$ 700,000	$ 100,000	$ 300,000
Investment in DreamPlay LLC		7,000,000	7,000,000
Non-controlling interest's share of losses		$ 6,000	(84,000)
Pacific Animation Partners Joint Venture
Schedule of Equity Method Investments [Line Items]
Percentage of ownership interest in joint venture		50.00%
Investment in joint venture, percentage share of operating expenses		50.00%
Number of episodes for which production completed \| Project		65
Episode show airing beginning date		2012-02
DreamPlay Toys
Schedule of Equity Method Investments [Line Items]
Percentage of ownership interest in joint venture	50.00%
Cash paid to Nant Works for joint venture	$ 8,000,000	$ 400,000
Issue of warrants (in shares) \| shares	1.5
Issue of warrants	$ 7,000,000
Joint venture toy service agreement expiration date	Oct. 01, 2018
Investment in DreamPlay LLC					$ 7,000,000
Percentage of ownership interest in joint venture					5.00%
Impairment charges		$ 0
China Joint Venture
Schedule of Equity Method Investments [Line Items]
Percentage of ownership interest in joint venture		51.00%
Non-controlling interest's share of losses		$ 6,000	$ (84,000)

Business Combinations - Additional Information (Detail) $ in Millions	1 Months Ended		12 Months Ended
	Sep. 30, 2012 USD ($) Installment	Jul. 31, 2012 USD ($)	Dec. 31, 2015 USD ($)	Dec. 31, 2014 USD ($)	Dec. 31, 2013 USD ($)
Business Acquisition [Line Items]
Other income			$ 5.6	$ 5.9	$ 6.0
Maui, Inc.
Business Acquisition [Line Items]
Business acquisition, cash paid		$ 36.2
Business acquisition maximum additional earn-out payment		$ 18.0
Additional earn-out payment period		3 years
JKID, LTD.
Business Acquisition [Line Items]
Business acquisition, cash paid	$ 1.1
Business acquisition maximum additional earn-out payment	$ 4.4
Additional earn-out payment period	2 years
Business acquisition, deferred cash payment	$ 5.5
Business acquisition, deferred cash payment in installment	$ 1.1
Number of semi-annual payment of deferred cash payment \| Installment	5

Changes in Carrying Amount of Goodwill (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Goodwill [Line Items]
Balance at beginning of the period	$ 44,199	$ 44,492
Adjustments to goodwill for foreign currency translation	(991)	(293)
Goodwill Ending Balance	43,208	44,199
U.S. and Canada
Goodwill [Line Items]
Balance at beginning of the period	30,218	30,418
Adjustments to goodwill for foreign currency translation	(678)	(200)
Goodwill Ending Balance	29,540	30,218
International
Goodwill [Line Items]
Balance at beginning of the period	11,717	11,795
Adjustments to goodwill for foreign currency translation	(262)	(78)
Goodwill Ending Balance	11,455	11,717
Halloween
Goodwill [Line Items]
Balance at beginning of the period	2,264	2,279
Adjustments to goodwill for foreign currency translation	(51)	(15)
Goodwill Ending Balance	$ 2,213	$ 2,264

Goodwill - Additional Information (Detail)	Dec. 31, 2016
U.S. and Canada
Goodwill [Line Items]
Percentage of excess coverage of fair value over the carrying value	2.00%
International
Goodwill [Line Items]
Percentage of excess coverage of fair value over the carrying value	20.60%
Halloween
Goodwill [Line Items]
Percentage of excess coverage of fair value over the carrying value	2.00%

Intangible Assets (Detail) - USD ($) $ in Thousands	12 Months Ended
Intangible Assets (Detail) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2016
Acquired Intangible Assets by Major Class [Line Items]
Trademarks, net	$ 2,308	$ 2,608
Amortized Intangible Assets, Gross Carrying Amount	81,375	76,575
Amortized Intangible Assets, Accumulated Amortization	(39,190)	(43,464)
Amortized Intangible Assets, Net Amount	$ 42,185	33,111
Licenses
Acquired Intangible Assets by Major Class [Line Items]
Weighted Useful Lives (Years)	5 years 9 months 22 days
Amortized Intangible Assets, Gross Carrying Amount	$ 24,930	20,130
Amortized Intangible Assets, Accumulated Amortization	(20,436)	(17,248)
Amortized Intangible Assets, Net Amount	$ 4,494	2,882
Product Lines
Acquired Intangible Assets by Major Class [Line Items]
Weighted Useful Lives (Years)	7 years 6 months
Amortized Intangible Assets, Gross Carrying Amount	$ 50,093	50,093
Amortized Intangible Assets, Accumulated Amortization	(14,376)	(20,634)
Amortized Intangible Assets, Net Amount	$ 35,717	29,459
Customer relationships
Acquired Intangible Assets by Major Class [Line Items]
Weighted Useful Lives (Years)	4 years 10 months 24 days
Amortized Intangible Assets, Gross Carrying Amount	$ 3,152	3,152
Amortized Intangible Assets, Accumulated Amortization	(2,195)	(2,755)
Amortized Intangible Assets, Net Amount	$ 957	397
Trade Name
Acquired Intangible Assets by Major Class [Line Items]
Weighted Useful Lives (Years)	5 years
Amortized Intangible Assets, Gross Carrying Amount	$ 3,000	3,000
Amortized Intangible Assets, Accumulated Amortization	(2,050)	(2,650)
Amortized Intangible Assets, Net Amount	$ 950	350
Non-compete/Employment contracts
Acquired Intangible Assets by Major Class [Line Items]
Weighted Useful Lives (Years)	5 years
Amortized Intangible Assets, Gross Carrying Amount	$ 200	200
Amortized Intangible Assets, Accumulated Amortization	(133)	(177)
Amortized Intangible Assets, Net Amount	$ 67	$ 23

Intangible Assets Other Than Goodwill - Additional Information (Detail) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	Oct. 31, 2016	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items]
Cash paid for intangible assets		$ 300
Amortization expense		$ 8,800	$ 8,000	$ 8,500
C'est Moi brand
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items]
Cash paid for intangible assets	$ 300
Contingent consideration payments upon achievements of certain financial performances	$ 2,100
Contingent consideration payments period	5 years
Contingent consideration payment start year	2017
Contingent consideration payment end year	2021

Future Amortization Expense (Detail) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Expected Amortization Expense [Line Items]
2017	$ 8,780
2018	6,137
2019	3,144
2020	3,053
2021	3,053
Thereafter	8,944
Amortized Intangible Assets, Net Amount	$ 33,111	$ 42,185

Accrued Expenses (Detail) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Schedule of Accrued Liabilities [Line Items]
Royalties	$ 13,805	$ 21,599
Inventory liabilities	5,425	6,754
Professional fees	3,696	2,535
Goods in transit	3,441	2,736
Salaries and employee benefits	3,243	185
Interest expense	2,520	2,333
Bonuses	1,500	6,275
Sales commissions	816	1,132
Unearned revenue	779	1,720
Molds and tools		2,669
Other	3,420	6,143
Accrued expenses	$ 38,645	$ 54,081

Related Party Transactions - Additional Information (Detail) - USD ($) shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Related Party Transactions
Related Party Transaction [Line Items]
Legal fees and expenses	$ 3.2	$ 3.1	$ 2.4
Legal fees and reimbursable expense, payable	$ 1.6	1.6
Nantworks
Related Party Transaction [Line Items]
Percentage of ownership interest in joint venture	16.20%
Shares underlying out of money warrants	1.5
Preferred return earned	$ 0.0	0.7	0.8
Rent expense including common area maintenance and parking	0.0	0.1	$ 1.3
Related party, receivable	0.6	$ 0.6
Renewal fee payable	1.2
Renewal fee paid	0.8
Renewal fee payable on or before each of August 1, 2016	0.2
Renewal fee payable in 2017	$ 0.2

Credit Facility - Additional Information (Detail) - USD ($)	1 Months Ended	12 Months Ended
	Mar. 31, 2014	Dec. 31, 2016	Dec. 31, 2015
GECC
Line of Credit Facility [Line Items]
Line of credit facility maximum borrowing capacity	$ 75,000,000	$ 12,100,000	$ 32,300,000
Line of credit facility, maturity date		Mar. 27, 2019
Amount of credit facility outstanding		$ 10,000,000	0
Stand by letters of credit outstanding amount		$ 28,200,000	$ 23,200,000
Rate of credit facility		2.45%	2.25%
GECC \| London Interbank Offered Rate (LIBOR)
Line of Credit Facility [Line Items]
Applicable margin spread over base rate	2.25%
GECC \| Base Rate
Line of Credit Facility [Line Items]
Applicable margin spread over base rate	1.25%
GECC \| Minimum
Line of Credit Facility [Line Items]
Percentage of unused credit line fee		0.25%
GECC \| Maximum
Line of Credit Facility [Line Items]
Percentage of unused credit line fee		0.50%
WF Loan Agreement \| Minimum
Line of Credit Facility [Line Items]
Fixed charge coverage ratio		120.00%

Convertible Senior Notes (Detail) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015	Jun. 30, 2014	Jul. 31, 2013
Debt Instrument [Line Items]
Convertible senior notes, principal amount	$ 206,865	$ 215,000
Convertible senior notes, debt issuance costs	3,858	5,834
Convertible senior notes, net of debt issuance costs	203,007	209,166
4.25% Convertible Senior Notes (due 2018)
Debt Instrument [Line Items]
Convertible senior notes, principal amount	93,865	100,000		$ 100,000
Convertible senior notes, debt issuance costs	1,098	2,181
Convertible senior notes, net of debt issuance costs	92,767	97,819
4.875% Convertible Senior Notes (due 2020)
Debt Instrument [Line Items]
Convertible senior notes, principal amount	113,000	115,000	$ 115,000
Convertible senior notes, debt issuance costs	2,760	3,653
Convertible senior notes, net of debt issuance costs	$ 110,240	$ 111,347

Convertible Senior Notes (Parenthetical) (Detail)	12 Months Ended
Convertible Senior Notes (Parenthetical) (Detail)	Dec. 31, 2016	Dec. 31, 2015	Jun. 30, 2014	Jul. 31, 2013
4.25% Convertible Senior Notes (due 2018)
Debt Instrument [Line Items]
Debt instrument, maturity year	2018	2018
Debt instrument, interest rate	4.25%	4.25%		4.25%
4.875% Convertible Senior Notes (due 2020)
Debt Instrument [Line Items]
Debt instrument, maturity year	2020	2020
Debt instrument, interest rate	4.875%	4.875%	4.875%

Convertible Senior Notes - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands		1 Months Ended				12 Months Ended
	Nov. 01, 2014	Jan. 31, 2016	Jun. 30, 2014	Jul. 31, 2013	Nov. 30, 2009	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Debt Instrument [Line Items]
Long term debt, face amount						$ 206,865	$ 215,000
Gain on debt extinguishment						98
Other long term assets						2,156	3,125
Convertible senior notes, net						$ 203,007	209,166
ASU 2015-03 \| Restatement Adjustment
Debt Instrument [Line Items]
Other long term assets							(5,800)
Convertible senior notes, net							5,800
4.50% Convertible senior notes (due 2014)
Debt Instrument [Line Items]
Long term debt, face amount					$ 100,000
Frequency of interest payment						Semi-annually
Debt instrument, maturity date					Nov. 01, 2014
Debt instrument, interest rate					4.50%
Debt discount					$ 13,700
Interest expenses associated with amortization of equity component						$ 0	0	$ 900
Debt issuance cost written off amount									$ 600
Repurchase of related equity component									2,800
Debt discount written off amount									$ 2,200
Repayments of debt	$ 39,000
4.25% Convertible Senior Notes (due 2018)
Debt Instrument [Line Items]
Long term debt, face amount				$ 100,000		$ 93,865	$ 100,000
Frequency of interest payment						Semi-annually
Debt instrument, maturity date				Aug. 01, 2018
Debt instrument, interest rate				4.25%		4.25%	4.25%
Gain on debt extinguishment				$ 100
Debt issuance cost written off amount						$ 100
Conversion rate in share per $1000 principal amount of notes				114.3674
Debt instrument, conversion rate				$ 8.74
Debt instrument repurchase amount						6,100
Convertible senior notes, net						92,767	$ 97,819
4.875% Convertible Senior Notes (due 2020)
Debt Instrument [Line Items]
Long term debt, face amount			$ 115,000			$ 113,000	$ 115,000
Frequency of interest payment						Semi-annually
Debt instrument, maturity date			Jun. 01, 2020
Debt instrument, interest rate			4.875%			4.875%	4.875%
Gain on debt extinguishment		$ 100
Debt issuance cost written off amount		100
Conversion rate in share per $1000 principal amount of notes			103.7613
Debt instrument, conversion rate			$ 9.64
Debt instrument repurchase amount		$ 2,000
Convertible senior notes, net						$ 110,240	$ 111,347

Key Component of Convertible Senior Notes (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
4.50% Convertible senior notes (due 2014)
Debt Instrument [Line Items]
Contractual interest expense on the coupon			$ 1,463
Amortization of debt discount and debt issuance costs recognized as interest expense			1,140
Amortization of Deferred Charges, Total			2,603
4.25% Convertible Senior Notes (due 2018)
Debt Instrument [Line Items]
Contractual interest expense	$ 4,191	$ 4,250	4,250
Amortization of debt discount and debt issuance costs recognized as interest expense	1,172	836	835
Amortization of Deferred Charges, Total	5,363	5,086	5,085
4.875% Convertible Senior Notes (due 2020)
Debt Instrument [Line Items]
Contractual interest expense	5,508	5,606	3,135
Amortization of debt discount and debt issuance costs recognized as interest expense	804	811	473
Amortization of Deferred Charges, Total	$ 6,312	$ 6,417	$ 3,608

Income Taxes - Additional Information (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Income Taxes [Line Items]
Provision (benefit) for income taxes	$ 4,127,000	$ 3,423,000	$ 3,715,000
Effective income tax rate	76.80%	12.90%	14.70%
Effective income tax rate, exclusive of discrete items	79.20%	9.50%	13.60%
Discrete tax benefit (expenses)	$ 100,000
Net deferred tax liabilities	2,034,000	$ 2,293,000
Deferred tax liability, undistributed earnings of foreign subsidiaries	206,000,000
De-recognized UTP	49,700	2,100,000
Unrecognized tax positions, recognized	100,000	1,800,000
Interest expense relating to UTPs	67,900		$ 150,000
Valuation allowance	49,300,000	$ 100,900,000
Valuation allowance	(51,600,000)
U.S. federal net operating loss carryforwards	$ 36,800,000
U.S. federal net operating loss carryforwards, expiration period	Dec. 31, 2033
Foreign tax credit carryforwards	$ 19,200,000
Foreign tax credit carryforwards, expiration year	2022
Federal research and development tax credit carryforwards	$ 500,000
Federal research and development tax credit carryforwards, expiration year	2029
State research and development tax credit carryforwards	$ 100,000
State Of California
Income Taxes [Line Items]
U.S. federal net operating loss carryforwards	$ 124,200,000
U.S. federal net operating loss carryforwards, expiration period	Dec. 31, 2031
ASU 2015-17 \| Restatement Adjustment
Income Taxes [Line Items]
Current deferred tax liabilities	$ (2,700,000)
Non-current deferred tax assets	$ (400,000)

Provision (Benefit) for Income Taxes (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Income Taxes [Line Items]
Federal	$ 1,549		$ (4)
State and local	652	$ 708	287
Foreign	1,637	3,044	3,887
Total Current	3,838	3,752	4,170
APIC	548		(84)
Deferred	(259)	(329)	(371)
Total	$ 4,127	$ 3,423	$ 3,715

Components of Deferred Tax Assets/(Liabilities) (Detail) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Schedule of Deferred Income Tax Assets and Liabilities [Line Items]
Reserve for sales allowances and possible losses	$ 801	$ 756
Accrued expenses	1,739	1,193
Prepaid royalties	16,806	13,155
Accrued royalties	2,638	3,963
Inventory	3,506	3,315
State income taxes	98
Property and equipment	4,997	3,833
Original issue discount interest	(6,945)	(10,332)
Goodwill and intangibles	29,378	35,086
Share based compensation	1,607	2,359
Undistributed foreign earnings	(48,731)
Federal and state net operating loss carryforwards	22,755	34,684
Credit carryforwards	21,097	13,254
Other	(2,495)	(2,621)
Gross	47,251	98,645
Valuation allowance	(49,285)	(100,938)
Total net deferred tax assets/(liabilities)	$ (2,034)	$ (2,293)

Reconciliation for Significant Differences in Tax at Statutory and Effective Rates (Detail)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Reconciliation of Statutory Federal Tax Rate [Line Items]
Federal income tax expense	35.00%	35.00%	35.00%
State income tax expense, net of federal tax effect	(3.60%)	1.00%
Effect of differences in U.S. and foreign statutory rates	(53.70%)	(9.40%)	(14.10%)
Uncertain tax positions	3.40%	0.30%
Earn-out adjustments		(7.40%)
Provision to return	4.50%	12.20%
Non-deductible expenses	8.90%	1.10%	1.10%
Other	0.60%	0.50%	(1.50%)
Foreign deemed dividend	262.20%	1.70%
Foreign tax credit	(126.10%)	(0.50%)
Undistributed foreign earnings	906.50%
Valuation allowance	(960.90%)	(21.60%)	(5.80%)
Effective income tax rate	76.80%	12.90%	14.70%

Components of Income (Loss) Before Provision for Income Taxes (Detail) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Schedule of Components of Income Before Income Tax Expense (Benefit) [Line Items]
Domestic									$ (7,760)	$ 11,692	$ 5,358
Foreign									13,136	14,901	19,866
Income before provision for income taxes	$ (5,844)	$ 31,612	$ (3,441)	$ (16,951)	$ (9,078)	$ 47,239	$ (4,414)	$ (7,154)	$ 5,376	$ 26,593	$ 25,224

Information of UTPs Affecting Effective Tax Rate, if Recognized (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items]
Beginning Balance	$ 2.2	$ 2.5	$ 2.6
Current year additions	0.1	1.8
Current year reduction due to lapse of applicable statute of limitations		(2.1)	(0.1)
Current year reduction due to audit settlement	0.0
Ending Balance	$ 2.3	$ 2.2	$ 2.5

Leases - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Leases Disclosure [Line Items]
Operating leases rent expense	$ 12.3	$ 11.5	$ 13.0

Schedule of Minimum Annual Lease Payments (Detail) $ in Thousands	Dec. 31, 2016 USD ($)
Operating Leased Assets [Line Items]
2017	$ 12,030
2018	9,422
2019	6,276
2020	4,247
2021	3,989
Thereafter	9,184
Operating Leases, Future Minimum Payments Due, Total	$ 45,148

Common Stock, Preferred Stock and Warrants - Additional Information (Detail)	1 Months Ended							12 Months Ended
	Oct. 31, 2016 shares	Mar. 31, 2016 USD ($) shares	Jan. 31, 2016 USD ($) ExecutiveOfficers Director shares	Apr. 30, 2015 USD ($) shares	Jan. 31, 2015 USD ($) ExecutiveOfficers Director shares	Jun. 30, 2014 USD ($) $ / shares shares	Jan. 31, 2014 USD ($) ExecutiveOfficers Director shares	Dec. 31, 2016 USD ($) $ / shares shares	Dec. 31, 2015 USD ($) $ / shares shares	Dec. 31, 2014 USD ($)	Jun. 30, 2015 USD ($)
Class of Stock [Line Items]
Common stock, shares authorized \| shares								100,000,000	100,000,000
Preferred shares, shares authorized \| shares								5,000,000	5,000,000
Total number of shares authorized \| shares								105,000,000
Common stock, par value \| $ / shares								$ 0.001	$ 0.001
Preferred shares, par value \| $ / shares								$ 0.001	$ 0.001
Common stock, shares issued \| shares								19,376,773	21,153,878
Common stock, shares outstanding \| shares								19,376,773	21,153,878
Number of executive officers \| ExecutiveOfficers					2		2
Number of non-employee directors \| Director					5		5
Repurchase of common stock, shares \| shares						3,112,840
Repurchase of common stock, average price per share \| $ / shares						$ 7.71
Repurchase of common stock, value						$ 24,000,000				$ 24,000,000
Repurchase of convertible senior notes								$ 8,035,000		$ 39,000,000
Cash dividend paid								0	$ 0
4.875% Convertible Senior Notes (due 2020)
Class of Stock [Line Items]
Amount of convertible notes repurchased and retired			$ 2,000,000
4.25% Convertible Senior Notes (due 2018)
Class of Stock [Line Items]
Amount of convertible notes repurchased and retired								$ 6,100,000
Securities
Class of Stock [Line Items]
Retirement of common stock (share) \| shares								1,766,284	1,547,361
Retirement of common stock								$ 13,500,000	$ 13,200,000
Securities \| 4.875% Convertible Senior Notes (due 2020)
Class of Stock [Line Items]
Amount of convertible notes repurchased and retired								2,000,000
Repurchase of convertible senior notes								1,900,000
Securities \| 4.25% Convertible Senior Notes (due 2018)
Class of Stock [Line Items]
Amount of convertible notes repurchased and retired								6,100,000
Repurchase of convertible senior notes								$ 6,100,000
Minimum \| Restricted Stock
Class of Stock [Line Items]
Vesting period								1 year
Maximum \| Restricted Stock
Class of Stock [Line Items]
Vesting period								2 years
Maximum \| Securities
Class of Stock [Line Items]
Stock repurchase, authorized amount											$ 35,000,000
Executive officer
Class of Stock [Line Items]
Restricted stock issued, shares \| shares		134,058	449,120	135,234	525,734		531,993
Restricted stock issued, value		$ 900,000	$ 3,600,000	$ 900,000	$ 3,600,000		$ 3,600,000
Number of executive officers \| ExecutiveOfficers			2
Executive officer \| Restricted Stock
Class of Stock [Line Items]
Vesting period		3 years	3 years	3 years	3 years
Executive officer \| Minimum \| Restricted Stock
Class of Stock [Line Items]
Vesting period							1 year
Executive officer \| Maximum \| Restricted Stock
Class of Stock [Line Items]
Vesting period							3 years
Non-employee directors
Class of Stock [Line Items]
Restricted stock issued, shares \| shares	2,463		62,710		73,855		78,150
Restricted stock issued, value			$ 500,000		$ 500,000		$ 500,000
Number of non-employee directors \| Director			5
Non-employee directors \| Restricted Stock
Class of Stock [Line Items]
Shares of restricted stock, vesting date	2017-01		2017-01		2016-01		2015-01

Commitments - Additional Information (Detail)	12 Months Ended
Commitments - Additional Information (Detail)	Dec. 31, 2016
Minimum
Commitments and Contingencies Disclosure [Line Items]
Royalties percentage of net sales	1.00%
Maximum
Commitments and Contingencies Disclosure [Line Items]
Royalties percentage of net sales	20.00%

Future Annual Minimum Royalty Guarantees (Detail) $ in Thousands	Dec. 31, 2016 USD ($)
Commitments and Contingencies Disclosure [Line Items]
2017	$ 51,950
2018	32,677
2019	7,638
Future minimum royalty payments, total	$ 92,265

Future Minimum Guaranteed Amount (Detail) $ in Thousands	Dec. 31, 2016 USD ($)
Commitments and Contingencies Disclosure [Line Items]
2017	$ 8,226
2018	5,492
2019	5,332
2020	2,285
Future Minimum Guarantee Payments, Total	$ 21,335

Share-Based Payments - Additional Information (Detail) - USD ($)	1 Months Ended					12 Months Ended
	Mar. 31, 2016	Jan. 31, 2016	Apr. 30, 2015	Jan. 31, 2015	Jan. 31, 2014	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2012	Dec. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for future grant						2,378,630
Awarded						648,351	734,823	610,143
Restricted stock surrendered, in values							$ 1,000	$ 2,000
Restricted stock, unvested						196,453	411,409	568,057		721,752
Forfeited						608,000	663,855	544,651
Unrecognized compensation, non-vested restricted stock awards						$ 800,000
Unrecognized compensation, non-vested restricted stock awards expected recognized period						10 months 6 days
Recognition Technology in Connection with Toy Products
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of stock warrants granted to third party in connection with acquisition									1,500,000
Exercise price of warrants									$ 16.28
Warrants exercisable term									5 years
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period						4 years
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awarded						648,351	734,823	610,143
Shares of restricted stock cancelled						24,822	51,633
Restricted stock surrendered, (in shares)						50,719	52,024	51,877
Restricted stock surrendered, in values						$ 1,500,000	$ 400,000
Restricted stock, unvested						196,453	411,409	568,057
Weighted average grant date fair value						$ 1,400,000	$ 2,700,000	$ 3,700,000
Restricted Stock \| Executive officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	3 years	3 years	3 years	3 years
Awarded								531,993
Shares of restricted stock issued						583,178	660,968
Forfeited							612,221
Restricted Stock \| Non-employee directors
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock grants						$ 100,000
Awarded						65,173	73,855	78,150
Restricted Stock \| Non-executive employees
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares of restricted stock cancelled								12,658
Restricted Stock \| Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period						1 year
Restricted Stock \| Minimum \| Executive officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period					1 year
Restricted Stock \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period						2 years
Restricted stock surrendered, in values								$ 100,000
Restricted Stock \| Maximum \| Executive officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period					3 years

Summary of Restricted Stock Award Activity (Detail) - $ / shares	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Number of Shares
Outstanding at beginning of period	411,409	568,057	721,752
Awarded	648,351	734,823	610,143
Released	(255,307)	(227,616)	(219,187)
Forfeited	(608,000)	(663,855)	(544,651)
Outstanding at end of period	196,453	411,409	568,057
Weighted Average Fair Value
Outstanding at beginning of period	$ 6.61	$ 6.54	$ 6.88
Awarded	7.00	6.81	6.72
Released	6.68	6.60	7.99
Forfeited	6.88	6.77	6.61
Outstanding at end of period	$ 7.01	$ 6.61	$ 6.54

Total Share-Based Compensation Expense and Related Tax Benefits Recognized (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock compensation expense	$ 1,621	$ 1,562	$ 1,473
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Excess tax benefit related to restricted stock compensation	$ 548

Stock Option Activity (Detail) - $ / shares	12 Months Ended
Stock Option Activity (Detail) - $ / shares	Dec. 31, 2015	Dec. 31, 2014
Number of Shares
Options outstanding at beginning of period	75,000	127,144
Cancelled	(75,000)	(52,144)
Options outstanding at end of period		75,000
Weighted Average Exercise Price
Options outstanding at beginning of period	$ 20.69	$ 20.20
Cancelled	$ 20.69	19.50
Options outstanding at end of year		$ 20.69

Employee Benefits Plan - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Schedule of Employee Benefit Plans [Line Items]
Maximum percentage of employee gross pay for defined contribution plan under Section 401(k)	50.00%
Employer matching contribution for defined contribution plan under Section 401(k)	5.00%
Total company matching contributions	$ 2.5	$ 2.2	$ 1.9

Supplemental Information to Consolidated Statements of Cash Flows - Additional Information (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Cash Flow Supplemental Disclosures [Line Items]
Restricted stock surrendered, in values		$ 1	$ 2
Restricted Stock Vested
Cash Flow Supplemental Disclosures [Line Items]
Tax benefit (deficiency) related to restricted stock compensation	$ 500		$ (100)
Employees - including an executive officer
Cash Flow Supplemental Disclosures [Line Items]
Restricted stock surrendered, (in shares)	50,719	52,024	51,877
Restricted stock surrendered, in values	$ 1,500	$ 400
Employees - including an executive officer \| Maximum
Cash Flow Supplemental Disclosures [Line Items]
Restricted stock surrendered, in values			$ 100

Quarterly Financial Data (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Dec. 31, 2016	Sep. 30, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Quarterly Financial Information [Line Items]
Net Sales	$ 167,026	$ 302,791	$ 140,977	$ 95,809	$ 163,407	$ 337,027	$ 131,106	$ 114,201	$ 706,603	$ 745,741	$ 810,060
Gross profit	52,105	94,933	44,800	31,183	49,575	104,329	39,287	35,378	223,021	228,569	235,807
Income (loss) from operations	(2,391)	34,413	(1,100)	(13,816)	(6,891)	44,628	(3,008)	(4,199)	17,106	30,530	31,327
Income (loss) before provision (benefit) for income taxes	(5,844)	31,612	(3,441)	(16,951)	(9,078)	47,239	(4,414)	(7,154)	5,376	26,593	25,224
Net income (loss)	$ (7,752)	$ 30,529	$ (4,145)	$ (17,383)	$ (9,386)	$ 45,864	$ (5,727)	$ (7,581)	$ 1,243	$ 23,254	$ 21,509
Basic earnings (loss) per share	$ (0.47)	$ 1.91	$ (0.27)	$ (1.01)	$ (0.50)	$ 2.47	$ (0.30)	$ (0.40)	$ 0.08	$ 1.20	$ 1.03
Weighted average shares outstanding	16,098	16,044	16,402	17,218	18,781	18,559	19,108	19,090	16,542	19,435	20,948
Diluted earnings (loss) per share	$ (0.47)	$ 0.82	$ (0.27)	$ (1.01)	$ (0.50)	$ 1.12	$ (0.30)	$ (0.40)	$ 0.07	$ 0.71	$ 0.70
Weighted average shares and equivalents outstanding	16,098	39,504	16,402	17,218	18,781	42,562	19,108	19,090	16,665	43,321	41,516

Subsequent Events - Additional Information (Detail) - USD ($) $ in Millions	1 Months Ended	2 Months Ended	12 Months Ended
	Mar. 16, 2017	Feb. 28, 2017	Dec. 31, 2016	Dec. 31, 2015	Jul. 31, 2013
4.25% Convertible Senior Notes (due 2018)
Subsequent Event [Line Items]
Debt instrument, interest rate			4.25%	4.25%	4.25%
Debt instrument, maturity year			2018	2018
Subsequent Event \| 4.25% Convertible Senior Notes (due 2018)
Subsequent Event [Line Items]
Debt instrument, interest rate		4.25%
Debt instrument, maturity year		2018
Debt exchange transaction, aggregate principal amount of debt exchanged		$ 39.1
Debt instrument, remaining principal amount		$ 54.7
Subsequent Event \| 4.25% Convertible Senior Notes (due 2018) \| Common Stock
Subsequent Event [Line Items]
Debt exchange transaction, number of shares exchanged		2,900,000
Debt exchange transaction, value of shares exchanged		$ 24.1
Meisheng Culture Company \| Subsequent Event
Subsequent Event [Line Items]
Common stock sold	3,660,891
Total purchase price of stock sold	$ 19.3

Valuation and Qualifying Accounts (Detail) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2014
Valuation and Qualifying Accounts Disclosure [Line Items]
Balance at Beginning of Period	$ 28,032	$ 35,618	$ 43,789
Charged to Costs and Expenses	50,724	43,875	51,810
Deductions	(51,851)	(51,461)	(59,981)
Balance at End of Period	26,905	28,032	35,618
Uncollectible accounts
Valuation and Qualifying Accounts Disclosure [Line Items]
Balance at Beginning of Period	2,714	3,264	2,928
Charged to Costs and Expenses	303	(143)	1,545
Deductions	(153)	(407)	(1,209)
Balance at End of Period	2,864	2,714	3,264
Reserve for potential product obsolescence
Valuation and Qualifying Accounts Disclosure [Line Items]
Balance at Beginning of Period	8,051	7,877	9,487
Charged to Costs and Expenses	(161)	1,511	5,524
Deductions	(273)	(1,337)	(7,134)
Balance at End of Period	7,617	8,051	7,877
Reserve for sales returns and allowances
Valuation and Qualifying Accounts Disclosure [Line Items]
Balance at Beginning of Period	17,267	24,477	31,374
Charged to Costs and Expenses	50,582	42,507	44,741
Deductions	(51,425)	(49,717)	(51,638)
Balance at End of Period	$ 16,424	$ 17,267	$ 24,477