Equity Interest Investments

9 Months Ended

Oct. 03, 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 October 3, 2015 and October 4, 2014 are addbacks to Stiga’s consolidated net assets of $10.7 million and $12.4 million, respectively. These net differences are comprised of cumulative goodwill adjustments of $14.9 million offset by the related cumulative tax effect of $4.2 million as of October 3, 2015 and cumulative goodwill adjustments of $17.3 million offset by the related cumulative tax effect of $4.9 million as of October 4, 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 nine month periods ended October 3, 2015, and October 4, 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, included in other income (expense) on the Company’s statements of operations, for the periods ended October 3, 2015 and October 4, 2014 is as follows:

	Three Months Ended				Nine Months Ended
	October 3,		October 4,		October 3,		October 4,
In thousands	2015		2014		2015		2014
Other income	$	1,069	$	1,786	$	2,080	$	2,169

Summarized financial information for Stiga Sports AB balance sheets as of October 3, 2015, December 27, 2014, and October 4, 2014 and statements of operations for the three month and nine month periods ended October 3, 2015 and October 4, 2014 is as follows:

	October 3,		December 27,		October 4,
In thousands	2015		2014		2014
Current assets	$	31,044	$	30,539	$	33,046
Non-current assets		9,533		8,082		8,064
Total assets		40,577		38,621		41,110
Current liabilities		7,777		7,669		10,921
Non-current liabilities		5,736		4,229		4,370
Total liabilities		13,513		11,898		15,291
Net assets	$	27,064	$	26,723	$	25,819

	Three Months Ended				Nine Months Ended
	October 3,		October 4,		October 3,		October 4,
In thousands	2015		2014		2015		2014
Net sales	$	12,846	$	17,206	$	30,161	$	33,944
Gross profit		6,304		8,308		14,899		16,654
Net income		2,138		3,581		3,346		3,969