Equity Interest Investments

9 Months Ended

Oct. 01, 2016

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, snow sleds 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 1, 2016 and October 3, 2015 are addbacks to Stiga’s consolidated net assets of $10.4 million and $10.7 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 October 1, 2016 and cumulative goodwill adjustments of $14.9 million offset by the related cumulative tax effect of $4.2 million as of October 3, 2015. The Company’s 50% portion of the statement of operations impact of other individually insignificant U.S. GAAP adjustments for the nine month periods ended October 1, 2016, and October 3, 2015 are to increase Stiga’s net income by approximately zero and $0.4 million, respectively. The Company’s 50% portion of net income for Stiga, included in equity in earnings of affiliates on the Company’s statements of operations, for the three and nine month periods ended October 1, 2016 and October 3, 2015 is as follows:

 

	Three Months Ended				Nine Months Ended
In thousands	October 1, 2016		October 3, 2015		October 1, 2016		October 3, 2015
Equity in earnings of affiliates	$	573	$	1,069	$	749	$	2,080

Summarized financial information for Stiga Sports AB balance sheets as of October 1, 2016, December 26, 2015, and October 3, 2015 and statements of operations for the three month and nine month periods ended October 1, 2016 and October 3, 2015 is as follows:

In thousands	October 1, 2016		December 26, 2015		October 3, 2015
Current assets	$	28,857	$	29,300	$	31,044
Non-current assets		9,908		9,908		9,533
Total assets		38,765		39,208		40,577
Current liabilities		5,604		5,096		7,777
Non-current liabilities		5,583		5,835		5,736
Total liabilities		11,187		10,931		13,513
Net assets	$	27,578	$	28,277	$	27,064

	Three Months Ended				Nine Months Ended
In thousands	October 1, 2016		October 3, 2015		October 1, 2016		October 3, 2015
Net sales	$	10,635	$	12,846	$	27,161	$	30,161
Gross profit		4,918		6,304		12,661		14,899
Net income		1,146		2,138		1,498		3,346