Note 14 - Operating Segment and Geographic Information

12 Months Ended

Dec. 31, 2011

Segment Reporting Disclosure [Text Block]

Note 14 — Operating Segment and Geographic Information

The following table presents certain operating segment information.

In Thousands	2011			2010			2009
Sporting Goods
Net revenue	$	96,971		$	85,815		$	76,807
Operating income		10,802			9,171			4,610
Interest expense		686			1,655			2,673
Provision for taxes		4,365			2,993			715
Net income		5,817			4,601			1,273
Identifiable assets		69,324			68,047			67,528
Non-marketable equity investments (equity method)		—			—			—
Depreciation & amortization		2,623			2,461			3,217
Capital expenditures		1,595			517			792
Information Security and Print Finishing
Net revenue		37,279			34,841			39,192
Operating income		71			926			1,780
Interest expense		445			203			(208	)
Provision for taxes		551			913			988
Net income (loss)		(921	)		(187	)		1,077
Identifiable assets		40,396			37,713			40,105
Non-marketable equity investments (equity method)		318			321			341
Depreciation & amortization		974			1,114			1,576
Capital expenditures		780			1,261			640
All Other
Net revenue		—			—			—
Operating loss		(6,702	)		(1,908	)		(4,390	)
Interest expense		(438	)		(695	)		(800	)
Benefit for taxes		(2,482	)		(889	)		(755	)
Net income (loss)		(455	)		1,645			(693	)
Identifiable assets		20,395			21,793			19,605
Non-marketable equity investments (equity method)		14,079			11,303			8,815
Depreciation & amortization		5,175			755			1,172
Capital expenditures		—			—			462
Total
Net revenue		134,250			120,656			115,999
Operating income		4,171			8,189			2,000
Interest expense		693			1,163			1,665
Provision for taxes		2,434			3,017			948
Net income		4,441			6,059			1,657
Identifiable assets		130,115			127,553			127,238
Non-marketable equity investments (equity method)		14,397			11,624			9,156
Depreciation & amortization		8,772			4,330			5,965
Capital expenditures		2,375			1,778			1,894

Each operating segment is individually managed and has separate financial results that are reviewed by the Company’s management. Each segment contains closely related products that are unique to the particular segment. There were no changes to the composition of segments in 2011. The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies.

The Sporting Goods segment consists of home entertainment products such as table tennis tables and accessories; basketball goals; pool tables and accessories; outdoor playsets; soccer and hockey tables; archery equipment and accessories; and fitness, arcade and darting products. Customers include retailers, dealers and wholesalers located throughout the United States and Europe.

The Information Security and Print Finishing segment consists of products such as high-security data shredders, disintegrators and deguassers, and office machinery used in the office and graphic arts environment. Office environment products include folding machines; and paper trimmers and cutters. Customers include end-users, as well as, retailers, wholesalers, catalogs, specialty dealers and business partners.

All other segments consist of general and administrative expenses not specifically related to the operating business segments and includes investment income from equity investments.

Interest expense is allocated to operating segments based on working capital usage and the provision for taxes is allocated based on a combined federal and state statutory rate of 39.4% adjusted for actual taxes on foreign income. Permanent tax adjustments and timing differences are included in the all other segment.

Identifiable assets are principally those assets used in each segment. The assets in the all other segment are principally cash and cash equivalents; deferred tax assets; and investments.

The Company has one customer in 2011 in the Sporting Goods segment who accounted for 16% of consolidated total revenues and one customer in 2010 and 2009 who accounted for 15% and 15% of consolidated total revenues, respectively. No other customers accounted for 10% or more of consolidated revenues. Within the Sporting Goods segment, this customer accounted for 22%, 21% and 22% of total revenues in 2011, 2010 and 2009, respectively.

As of December 31, 2011, approximately 13 employees of the Company’s labor force were covered by a collective bargaining agreement that expires April 30, 2012.

Raw materials for Escalade’s various product lines consist of wood, particleboard, slate, standard grades of steel, steel tubing, plastic, vinyl, steel cables, fiberglass and packaging. Escalade relies upon suppliers in China for its requirement of billiard balls and slate utilized in the production of home pool tables and upon various Asia manufacturers for certain of its table tennis needs and other items. Escalade sources its game table and billiard product lines in China.

Revenues by geographic region/country were as follows:

In Thousands	2011		2010		2009
North America	$	112,907	$	100,921	$	95,723
Europe		12,240		11,486		13,033
Other		9,103		8,249		7,243
	$	134,250	$	120,656	$	115,999

Revenues are attributed to country based on location of customer and are for continuing operations.

Identified assets by geographic region/country were as follows:

In Thousands	2011		2010		2009
North America	$	105,717	$	103,277	$	100,643
Europe		24,398		24,276		26,595
	$	130,115	$	127,553	$	127,238