Equity Interest Investments

6 Months Ended

Jul. 12, 2014

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 July 12, 2014 and July 13, 2013 are addbacks to Stiga’s consolidated financial information of $13.8 million and $12.0 million, respectively. These net differences are comprised of cumulative goodwill adjustments of $19.3 million offset by the related cumulative tax effect of $5.5 million as of July 12, 2014 and cumulative goodwill adjustments of $16.8 million offset by the related cumulative tax effect of $4.8 million as of July 13, 2013. The statement of operations impact of these goodwill and tax adjustments and other individually insignificant U.S. GAAP adjustments for the periods ended July 12, 2014, and July 13, 2013 are to increase Stiga’s net income by approximately $0.3 million and $0.8 million, respectively. The Company’s 50% portion of net income for Stiga for the periods ended July 12, 2014 and July 13, 2013 was $0.4 million and $0.4 million, respectively, and is included in other income (expense) on the Company’s statements of operations.

Summarized financial information for Stiga Sports AB balance sheets as of July 12, 2014, December 28, 2013, and July 13, 2013 and statements of operations for the three months and six months ended July 12, 2014 and July 13, 2013 is as follows:

	July 12,		December 28,		July 13,
In thousands	2014		2013		2013
Current assets	$	25,571	$	31,399	$	23,118
Non-current assets		8,500		8,967		9,062
Total assets		34,071		40,366		32,180
Current liabilities		6,632		10,019		7,030
Non-current liabilities		4,664		4,893		5,696
Total liabilities		11,296		14,912		12,726
Net assets	$	22,775	$	25,454	$	19,454

	Three Months Ended				Six Months Ended
	July 12, 2014		July 13, 2013		July 12, 2014		July 13, 2013
Net sales	$	11,393	$	9,929	$	16,738	$	14,765
Gross profit		5,490		4,892		8,346		7,455
Net income		295		(48)		388		4