Equity Interest Investments

3 Months Ended

Mar. 23, 2013

Equity Method Investments and Joint Ventures [Abstract]

Equity Method Investments Disclosure [Text Block]

Note D – 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 period-end for balance sheet amounts, and using average exchange rates for statement of operations 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 periods ended March 23, 2013 and March 24, 2012 are addbacks to Stiga’s consolidated financial information of $11.9 million and $9.7 million, respectively. These net differences are comprised of cumulative goodwill adjustments of $16.6 million offset by the related cumulative tax effect of $4.7 million as of March 23, 2013 and cumulative goodwill adjustments of $13.5 million offset by the related cumulative tax effect of $3.8 million as of March 24, 2012. The statement of operations impact of these goodwill and tax adjustments and other individually insignificant U.S. GAAP adjustments for the periods ended March 23, 2013, and March 24, 2012 are to increase Stiga’s net income by approximately $0.1 million and $0.5 million, respectively. The Company’s 50% portion of net income for Stiga for the periods ended March 23, 2013 and March 24, 2012 was $69 thousand and $188 thousand, respectively, and is included in other income (expense) on the Company’s statements of operations.

In addition, Escalade has a 50% interest in two joint ventures, Escalade International, Ltd. in the United Kingdom, and Neoteric Industries Inc. in Taiwan. 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 periods ended March 23, 2013 and March 24, 2012 was $109 thousand and $20 thousand respectively, and is included in other income (expense) on the Company’s statements of operations. The income and assets of Neoteric have no impact on the Company’s financial reporting. Additional information regarding these entities is considered immaterial and has not been included in the totals listed below.

Summarized financial information for Stiga Sports AB balance sheets as of March 23, 2013, December 29, 2012, and March 24, 2012 and statements of operations for the periods ended March 23, 2013 and March 24, 2012 is as follows:

In thousands	March 23, 2013		December 29, 2012		March 24, 2012
Current assets	$	23,730	$	28,538	$	19,182
Non-current assets		8,133		8,065		9,252
Total assets		31,863		36,603		28,434
Current liabilities		6,670		10,850		5,689
Non-current liabilities		3,990		4,487		5,956
Total liabilities		10,660		15,337		11,645
Net assets	$	21,203	$	21,266	$	16,789

	Three Months Ended
	March 23, 2013		March 24, 2012
Net Sales	$	4,836	$	4,147
Gross Profit		2,563		2,167
Net Income (Loss)		52		(97	)