Note 6 - Equity Interest Investments

12 Months Ended

Dec. 31, 2011

Equity Method Investments Disclosure [Text Block]

Note 6 — Equity Interest Investments

The Company has a 50% interest in a joint venture, Stiga Sports AB (Stiga). The joint venture is accounted for under the equity method of accounting. Stiga, located in Sweden, is a global sporting goods company producing table tennis equipment and game products. Financial information for Stiga reflected in the table below has been translated from local currency to U.S. dollars using exchange rates in effect at the respective year-end for balance sheet amounts and using average exchange rates for income statement amounts. Certain differences exist between U.S. GAAP and local GAAP in Sweden, and the impact of these differences is not reflected in the summarized information reflected in the table below. The most significant difference relates to the accounting for goodwill for Stiga which is amortized over eight years in Sweden but is not amortized for U.S. GAAP reporting purposes. The effect on Stiga’s net assets resulting from the amortization of goodwill for the years ended 2011 and 2010 are addbacks of $9.3 million and $7.6 million, respectively. These net differences are comprised of cumulative goodwill adjustments of $13.0 million offset by the related cumulative tax effect of $3.7 million as of December 31, 2011 and cumulative goodwill adjustments of $10.6 million offset by the related cumulative tax effect of $3.0 million as of December 25, 2010. The income statement impact of these goodwill and tax adjustments and other individually insignificant U.S. GAAP adjustments for the years ended December 31, 2011, December 25, 2010, and December 26, 2009 are to increase total Stiga net income by approximately $1.6 million, $1.7 million, and $1.3 million, respectively.

In addition, the Company has a 50% interest in two joint ventures, Escalade International, Ltd. in the United Kingdom and Neoteric Industries Inc. in Taiwan. The income and assets of Neoteric have no material impact on the Company’s financial reporting. Escalade International Ltd. is a sporting goods wholesaler, specializing in fitness equipment. The Company’s 50% portion of net income (loss) for Escalade International for the years ended December 31, 2011, December 25, 2010, and December 26, 2009 was ($103) thousand, $87 thousand, and $123 thousand respectively, and is included in other income on the Company’s statement of operations. Additional information regarding these entities is considered immaterial and has not been included in the combined totals listed below.

In accordance with Rule 8-03(b)(3) of Regulation S-X, summarized financial information for Stiga Sports AB balance sheets as of December 31, 2011 and 2010, and statements of operations for the years ended December 31, 2011, 2010 and 2009 is as follows:

In Thousands	2011		2010
Current assets	$	23,451	$	19,384
Non-current assets		9,460		11,338
Total assets		32,911		30,722
Current liabilities		10,033		9,599
Non-current liabilities		6,334		8,918
Total liabilities		16,367		18,517
Net assets	$	16,544	$	12,205

	2011		2010		2009
Net sales	$	45,588	$	30,826	$	25,833
Gross profit		21,746		13,953		12,166
Net income		5,223		2,044		1,615