Equity Interest Investments

6 Months Ended

Jul. 15, 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 July 15, 2017 and July 9, 2016 are addbacks to Stiga’s consolidated financial information of $10.8 million and $10.4 million, respectively. These net differences are comprised of cumulative goodwill adjustments of $15.1 million offset by the related cumulative tax effect of $4.3 million as of July 15, 2017 and cumulative goodwill adjustments of $14.5 million offset by the related cumulative tax effect of $4.1 million as of July 9, 2016. 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 six month periods ended July 15, 2017 and July 9, 2016 is as follows:

	Three Months Ended				Six Months Ended
In thousands	July 15, 2017		July 9, 2016		July 15, 2017		July 9, 2016
Equity in earnings of affiliates	$	76	$	127	$	24	$	176

7

Summarized financial information for Stiga Sports AB balance sheets as of July 15, 2017, December 31, 2016, and July 9, 2016 and statements of operations for the three month and six month periods ended July 15, 2017 and July 9, 2016 is as follows:

	July 15,		December 31,		July 9,
In thousands	2017		2016		2016
Current assets	$	26,058	$	28,322	$	24,963
Non-current assets		10,451		9,379		9,860
Total assets		36,509		37,701		34,823
Current liabilities		5,755		4,847		3,013
Non-current liabilities		5,535		5,133		5,673
Total liabilities		11,290		9,980		8,686
Net assets	$	25,219	$	27,721	$	26,137

	Three Months Ended				Six Months Ended
In thousands	July 15, 2017		July 9, 2016		July 15, 2017		July 9, 2016
Net sales	$	11,172	$	11,127	$	16,297	$	16,526
Gross profit		5,434		5,185		7,712		7,743
Net income		154		255		49		352