Equity Interest Investments

9 Months Ended

Oct. 04, 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 October 4, 2014 and October 5, 2013 are addbacks to Stiga’s consolidated financial information of $12.4 million and $13.0 million, respectively. These net differences are comprised of cumulative goodwill adjustments of $17.3 million offset by the related cumulative tax effect of $4.9 million as of October 4, 2014 and cumulative goodwill adjustments of $18.2 million offset by the related cumulative tax effect of $5.2 million as of October 5, 2013. The Company’s 50% portion of the statement of operations impact of these goodwill and tax adjustments and other individually insignificant U.S. GAAP adjustments for the periods ended October 4, 2014, and October 5, 2013 are to increase Stiga’s net income by approximately $0.3 million and $0.6 million, respectively. The Company’s 50% portion of net income for Stiga for the periods ended October 4, 2014 and October 5, 2013 was $2.2 million and $1.3 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 October 4, 2014, December 28, 2013, and October 5, 2013 and statements of operations for the three months and nine months ended October 4, 2014 and October 5, 2013 is as follows:

In thousands	October 4, 2014		December 28, 2013		October 5, 2013
Current assets	$	33,046	$	31,399	$	29,894
Non-current assets		8,064		8,967		10,075
Total assets		41,110		40,366		39,969
Current liabilities		10,921		10,019		12,358
Non-current liabilities		4,370		4,893		5,454
Total liabilities		15,291		14,912		17,812
Net assets	$	25,819	$	25,454	$	22,157

	Three Months Ended				Nine Months Ended
	October 4, 2014		October 5, 2013		October 4, 2014		October 5, 2013
Net sales	$	17,206	$	11,520	$	33,944	$	26,285
Gross profit		8,308		5,957		16,654		13,412
Net income		3,581		1,471		3,969		1,475