Equity Interest Investments

6 Months Ended

Jul. 13, 2019

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 expired December 31, 2018. The new license agreement went 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 income statement amounts. 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:

Summarized financial information for Stiga Sports AB statements of operations for the period from March 25, 2018 through May 17, 2018 and the period from December 31, 2017 through May 17, 2018 is as follows:


	Period from		Period from
	March 25,		December 31,
	2018 through		2017 through
In thousands	May 17, 2018		May 17, 2018

Net sales	$	6,804	$	12,978
Gross profit		3,342		6,019
Net income		264		241

Period from March 25,

Period from December 31,

In thousands

2018 through May 17, 2018

2017 through May 17, 2018

Equity in earnings of affiliates