Business Segments, Geographic Data, Sales by Product Group and Major Customers The Company is a worldwide producer and marketer of childrens toys and other consumer products, principally engaged in the design, development, production, marketing and distribution of its diverse portfolio of products. The Company has aligned its operating segments into three segments that reflect the management and operation of the business. The Companys segments are (i) U.S. and Canada, (ii) International and (iii) Halloween. 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, and kids indoor and outdoor furniture, 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 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, 2017 and 2018 and for the three years in the period ended December 31, 2018 are as follows (in thousands): Year Ended December 31, 2016 2017 2018 Net Sales U.S. and Canada $ 478,595 $ 406,411 $ 364,313 International 131,229 107,231 101,873 Halloween 96,779 99,469 101,624 $ 706,603 $ 613,111 $ 567,810 Year Ended December 31, 2016 2017 2018 Income (Loss) from Operations U.S. and Canada $ 17,434 $ (35,720 ) $ (11,693 ) International 4,360 (13,184 ) (8,706 ) Halloween (4,688 ) (15,254 ) (11,774 ) $ 17,106 $ (64,158 ) $ (32,173 ) Year Ended December 31, 2016 2017 2018 Depreciation and Amortization Expense U.S. and Canada $ 16,817 $ 15,286 $ 12,553 International 4,549 4,079 3,449 Halloween 1,578 1,638 1,079 $ 22,944 $ 21,003 $ 17,081 December 31, 2017 2018 Assets U.S. and Canada $ 229,505 $ 223,877 International 106,255 108,669 Halloween 34,589 10,295 $ 370,349 $ 342,841 Net revenues are categorized based upon location of the customer, while long-lived assets are categorized based upon the location of the Companys 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 $17.0 million in 2017 and $15.8 million in 2018 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, 2017 and 2018 and for each of the three years in the period ended December 31, 2018 (in thousands): December 31, 2017 2018 Long-lived Assets China $ 17,194 $ 15,825 United States 5,755 4,920 Hong Kong 278 157 $ 23,227 $ 20,902 Year Ended December 31, 2016 2017 2018 Net Sales by Customer Area United States $ 544,096 $ 479,133 $ 439,979 Europe 92,811 71,094 69,647 Canada 26,947 21,882 21,923 Hong Kong 2,012 1,064 1,952 Other 40,737 39,938 34,309 $ 706,603 $ 613,111 $ 567,810 Major Customers Net sales to major customers were as follows (in thousands, except for percentages): 2016 2017 2018 Amount Percentage of Net Sales Amount Percentage of Net Sales Amount Percentage of Net Sales Wal-Mart $ 186,894 26.5 % $ 156,436 25.5 % $ 143,587 25.3 % Target 110,233 15.6 108,799 17.8 122,141 21.5 Toys "R" Us 90,568 12.8 69,508 11.3 * * $ 387,695 54.9 % $ 334,743 54.6 % $ 265,728 46.8 % * Sales to Toys "R" Us in the applicable periods were less than 10% of total net sales. No other customer accounted for more than 10% of the Company's total net sales. As of December 31, 2017 and 2018 , the Companys three largest customers accounted for approximately 60.6% and 61.4% , respectively, of net accounts receivable. The concentration of the Companys 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. For the years ended December 31, 2017 and 2018, the Company recorded bad debt expense of $11.8 million and $9.6 million , respectively, primarily due to the bankruptcy and liquidation of Toys "R" Us.