Equity Interest Investments

6 Months Ended

Jul. 11, 2015

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 goodwill for Stiga was fully amortized as of December 27, 2014. The effect on Stiga’s net assets resulting from the cumulative amortization of goodwill for the periods ended July 11, 2015 and July 12, 2014 are addbacks to Stiga’s consolidated net assets of $10.6 million and $13.8 million, respectively. These net differences are comprised of cumulative goodwill adjustments of $14.8 million offset by the related cumulative tax effect of $4.2 million as of July 11, 2015 and cumulative goodwill adjustments of $19.3 million offset by the related cumulative tax effect of $5.5 million as of July 12, 2014. 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 six month periods ended July 11, 2015, and July 12, 2014 are to increase Stiga’s net income by approximately zero and $0.3 million, respectively. The Company’s 50% portion of net income for Stiga for the six month periods ended July 11, 2015 and July 12, 2014 was $1.0 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 11, 2015, December 27, 2014, and July 12, 2014 and statements of operations for the three month and six month periods ended July 11, 2015 and July 12, 2014 is as follows:

	July 11,		December 27,		July 12,
In thousands	2015		2014		2014
Current assets	$	24,578	$	30,539	$	25,571
Non-current assets		9,101		8,082		8,500
Total assets		33,679		38,621		34,071
Current liabilities		3,911		7,669		6,632
Non-current liabilities		5,781		4,229		4,664
Total liabilities		9,692		11,898		11,296
Net assets	$	23,987	$	26,723	$	22,775

	Three Months Ended				Six Months Ended
	July 11, 2015		July 12, 2014		July 11, 2015		July 12, 2014
Net sales	$	11,716	$	11,393	$	17,315	$	16,738
Gross profit		5,724		5,490		8,595		8,346
Net income		690		295		1,208		388