Equity Interest Investments

6 Months Ended

Jul. 14, 2018

Equity Method Investments and Joint Ventures [Abstract]

Equity Method Investments Disclosure [Text Block]

Note D – Equity Interest Investments

The Company had a 50% interest in a joint venture, Stiga Sports AB (Stiga). The joint venture was 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. The Company entered into a share purchase agreement for the private sale of the Company’s 50% interest in the Stiga joint venture. On May 17, 2018, the Company completed the sale of its 50% interest for $33.7 million, resulting in a gain on sale of $13.0 million. In conjunction with the sale, the Company entered into a new license agreement with Stiga for the licensing rights to manufacture, market, promote, sell and distribute Stiga-branded table tennis hobby products in the United States, Mexico and Canada. The Company has had the licensing rights for such products since 1995 pursuant to an existing license agreement that continues through December 31, 2018. The new license agreement will go into effect on January 1, 2019.

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. Financial information for the current year represents the results of Stiga through the sale completion date. The Company’s 50% portion of net income for Stiga, included in equity in earnings of affiliates on the Company’s statements of operations, is as follows:

In thousands	Period from March 25, 2018 through May 17, 2018		Three Months Ended July 15, 2017		Period from December 31, 2017 through May 17, 2018		Six Months Ended July 15, 2017
Equity in earnings of affiliates	$	133	$	76	$	121	$	24

Summarized financial information for Stiga Sports AB balance sheets as of December 30, 2017, and July 15, 2017 and statements of operations for the period from March 25, 2018 through May 17, 2018, period from December 31, 2017 through May 17, 2018, and the three month and six month periods ended July 15, 2017 is as follows:

In thousands	December 30, 2017		July 15, 2017
Current assets	$	30,623	$	26,058
Non-current assets		10,854		10,451
Total assets		41,477		36,509
Current liabilities		6,897		5,755
Non-current liabilities		5,462		5,535
Total liabilities		12,359		11,290
Net assets	$	29,118	$	25,219

In thousands	Period from March 25, 2018 through May 17, 2018		Three Months Ended July 15, 2017		Period from December 31, 2017 through May 17, 2018		Six Months Ended July 15, 2017
Net sales	$	6,804	$	11,172	$	12,978	$	16,297
Gross profit		3,342		5,434		6,019		7,712
Net income		264		154		241		49