Equity Interest Investments

12 Months Ended

Dec. 26, 2015

Equity Method Investments and Joint Ventures [Abstract]

Equity Method Investments Disclosure [Text Block]

Note 6 — 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 year-end for balance sheet amounts and using average exchange rates for income statement 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 years ended 2015 and 2014 are addbacks of $10.4 million and $11.4 million, respectively. These net differences are comprised of cumulative goodwill adjustments of $14.6 million offset by the related cumulative tax effect of $4.2 million as of December 26, 2015 and cumulative goodwill adjustments of $16.0 million offset by the related cumulative tax effect of $4.6 million as of December 27, 2014. The income statement impact of these goodwill and tax adjustments and other individually insignificant U.S. GAAP adjustments for the years ended December 26, 2015, December 27, 2014, and December 28, 2013 are to increase total Stiga net income by approximately $0.1 million, $0.3 million, and $1.6 million, respectively. The Company’s 50% portion of net income for Stiga for the years ended December 26, 2015, December 27, 2014, and December 28, 2013 are $3.0 million, $3.9 million, and $3.3 million, respectively. Additionally, for each of the years ended December 26, 2015, December 27, 2014 and December 28, 2013, the Company paid royalties to Stiga in the amount of $0.4 million.

 

In addition, the Company had a 50% interest in Neoteric Industries Inc. in Taiwan. The income and assets of Neoteric had no material impact on the Company’s financial reporting. During 2014, the decision was made to divest the Company’s 50% interest in Neoteric Industries Inc. in Taiwan as part of the divestiture of the Information Security and Print Finishing businesses.

During 2013, the Company also had a 50% interest in Escalade International Ltd. that was a sporting goods wholesaler, specializing in fitness equipment. The decision was made during 2013 to cease operations and liquidate Escalade International, Ltd. Losses incurred include shutdown costs. As a result, the Company’s 50% portion of net loss for Escalade International, Ltd. for 2013 was ($343) thousand and is included in equity in earnings of affiliates on the Company’s statements of operations.

In accordance with Rule 4-08(g) of Regulation S-X, summarized financial information for Stiga Sports AB balance sheets as of December 31, 2015 and 2014, and statements of operations for the years ended December 31, 2015, 2014 and 2013 is as follows:

In Thousands	2015		2014
Current assets	$	29,300	$	30,539
Non-current assets		9,908		8,082
Total assets		39,208		38,621
Current liabilities		5,096		7,669
Non-current liabilities		5,835		4,229
Total liabilities		10,931		11,898
Net assets	$	28,277	$	26,723

	2015		2014		2013
Net sales	$	45,688	$	52,583	$	48,914
Gross profit		22,122		25,737		23,636
Net income		5,843		7,537		4,914