Equity Interest Investments

3 Months Ended

Mar. 25, 2017

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 March 25, 2017 and March 19, 2016 are addbacks to Stiga’s consolidated financial information of $10.1 million and $10.8 million, respectively. These net differences are comprised of cumulative goodwill adjustments of $14.1 million offset by the related cumulative tax effect of $4.0 million as of March 25, 2017 and cumulative goodwill adjustments of $15.1 million offset by the related cumulative tax effect of $4.3 million as of March 19, 2016. The Company’s 50% portion of net income (loss) for Stiga for the periods ended March 25, 2017 and March 19, 2016 was ($52) thousand and $49 thousand, respectively, and is included in equity in earnings (loss) of affiliates on the Company’s statements of operations.

Summarized financial information for Stiga Sports AB balance sheets as of March 25, 2017, December 31, 2016, and March 19, 2016 and statements of operations for the three months ended March 25, 2017 and March 19, 2016 is as follows:

	March 25,		December 31,		March 19,
In thousands	2017		2016		2016
Current assets	$	27,931	$	28,322	$	29,018
Non-current assets		9,539		9,379		10,244
Total assets		37,470		37,701		39,262
Current liabilities		3,642		4,847		3,857
Non-current liabilities		5,376		5,133		6,042
Total liabilities		9,018		9,980		9,899
Net assets	$	28,452	$	27,721	$	29,363

	Three Months Ended
	March 25,		March 19,
	2017		2016
Net sales	$	5,125	$	5,399
Gross profit		2,278		2,558
Net income (loss)		(105)		97