Operating Segment and Geographic Information

12 Months Ended

Dec. 28, 2013

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

Note 13 — Operating Segment and Geographic Information

The following table presents certain operating segment information.

In Thousands	2013		2012		2011
Sporting Goods
Net revenue	$	132,991	$	112,599	$	96,971
Operating income		18,469		14,160		11,217
Interest expense		170		273		686
Provision for taxes		7,212		5,482		4,529
Net income		11,087		8,433		6,068
Identifiable assets		91,137		77,902		69,324
Non-marketable equity investments (equity method)		—		—		—
Depreciation & amortization		3,844		3,398		2,623
Capital expenditures		2,170		2,065		1,595
Information Security and Print Finishing
Net revenue		30,686		34,990		37,279
Operating income (loss)		(1,687)		(14,628)		71
Interest expense		335		515		445
Provision for taxes		764		543		551
Net loss		(2,790)		(15,683)		(921)
Identifiable assets		23,203		25,578		40,396
Non-marketable equity investments (equity method)		331		323		318
Depreciation & amortization		774		924		974
Capital expenditures		185		358		780
All Other
Net revenue		—		—		—
Operating loss		(2,285)		(2,117)		(7,117)
Interest expense		233		(186)		(438)
Benefit for taxes		(1,093)		(1,633)		(2,646)
Net income (loss)		1,508		2,320		(706)
Identifiable assets		27,634		22,260		20,395
Non-marketable equity investments (equity method)		19,455		17,164		14,079
Depreciation & amortization		—		—		5,175
Capital expenditures		—		—		—
Total
Net revenue		163,677		147,589		134,250
Operating income (loss)		14,497		(2,585)		4,171
Interest expense		738		602		693
Provision for taxes		6,883		4,392		2,434
Net income (loss)		9,805		(4,930)		4,441
Identifiable assets		141,974		125,740		130,115
Non-marketable equity investments (equity method)		19,786		17,487		14,397
Depreciation & amortization		4,618		4,322		8,772
Capital expenditures		2,355		2,423		2,375

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 2013. 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.

During 2013, 2012 and 2011 the Company had one customer which accounted for approximately 16%, 18% and 16%, respectively, of the Company’s total consolidated revenues. No other customer accounted for 10% or more of consolidated total revenues. Within the Sporting Goods segment, this customer accounted for approximately 20%, 23% and 22% of total revenues in 2013, 2012 and 2011, respectively.

As of December 28, 2013 and December 29, 2012 the Company had a significant portion of its total accounts receivable with two customers. These two customers accounted for approximately 24% and 10% of total accounts receivable at December 28, 2013, respectively, and approximately 31% and 10% of total accounts receivable at December 29, 2012, respectively.

As of December 28, 2013, approximately 18 employees of the Company's labor force were covered by a collective bargaining agreement that expires April 30, 2016.

Raw materials for Escalade’s various product lines consist of wood, tempered glass, particle board, standard grades of steel and steel tubing, aluminum, engineering plastics, fiberglass and packaging materials. Escalade relies upon domestic, Mexico, and Asian suppliers for these materials and upon various Asian manufacturers for certain of its game room product needs and other items.

Net sales by geographic region/country were as follows:

In Thousands	2013		2012		2011
North America	$	144,296	$	127,013	$	112,907
Europe		11,805		13,220		12,240
Other		7,576		7,356		9,103
	$	163,677	$	147,589	$	134,250

Net sales 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	2013		2012		2011
North America	$	127,405	$	110,977	$	105,717
Europe		14,581		14,763		24,398
	$	141,986	$	125,740	$	130,115