Note 11 - Operating Segment and Geographic Information

12 Months Ended

Dec. 25, 2021

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

Note 11 —    Operating Segment and Geographic Information

The following table presents certain operating segment information.

In Thousands	2021			2020			2019
Sporting Goods
Net revenue	$	313,612		$	273,649		$	180,541
Operating income		31,534			32,685			8,611
Interest expense		1,510			250			358
Provision for taxes		8,295			8,951			2,272
Net income		21,892			23,625			5,997
Identifiable assets		241,547			211,253			141,167
Depreciation & amortization		4,835			4,016			4,031
Capital expenditures		9,696			5,455			2,185
All Other
Net revenue		--			--			--
Operating income		362			347			664
Interest expense (income)		--			--			(2	)
Provision (benefit) for taxes		(2,151	)		(1,963	)		(596	)
Net income		2,513			2,309			1,261
Identifiable assets		10,251			9,452			7,612
Depreciation & amortization		--			--			--
Capital expenditures		--			--			--
Total
Net revenue		313,612			273,649			180,541
Operating income		31,896			33,032			9,275
Interest expense		1,510			250			356
Provision for taxes		6,144			6,988			1,676
Net income		24,405			25,934			7,258
Identifiable assets		251,798			220,705			148,779
Depreciation & amortization		4,835			4,016			4,031
Capital expenditures		9,696			5,455			2,185

Each operating segment is individually managed and has separate financial results that are reviewed by the Company’s management. There were no changes to the composition of segments in 2021. The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies.

The Sporting Goods segment consists of home entertainment products such as table tennis tables and accessories; basketball goals; pickleball; pool tables and accessories; outdoor playsets; water sports; soccer and hockey tables; archery equipment and accessories; and fitness, arcade and darting products. Customers include retailers, dealers and wholesalers located throughout North America, Europe and the rest of the world.

All Other consist of general and administrative expenses not specifically related to the operating business segments.

Interest expense is allocated to operating segments based on working capital usage and the provision for taxes is allocated based on a combined federal and state statutory rate of 27.5% adjusted for actual taxes on foreign income. Permanent tax adjustments and timing differences are included in the all other segment.

Identifiable assets are principally those assets used in each segment. The assets in the all other segment are principally cash and cash equivalents; and deferred tax assets.

The Company had net assets of $15.8 million and $16.0 million located in Mexico as of December 25, 2021 and December 26, 2020, respectively.

During 2021, 2020 and 2019, the Company had one customer, Amazon.com, Inc., that accounted for approximately 21%, 23% and 21%, respectively of the Company’s revenues. During 2021, 2020 and 2019 the Company had another customer, Dick’s Sporting Goods, which accounted for approximately 11%, 13% and 13%, respectively, of the Company’s revenues.

As of December 25, 2021, the Company had approximately 24%, 17% and 10% of its total accounts receivable with Amazon.com, Inc., Academy Sports and Outdoors, Inc. and Dick’s Sporting Goods, respectively. As of December 26, 2020, the Company had approximately 26%, 14% and 11% of its total accounts receivable with Amazon.com, Inc., Academy Sports and Outdoors, Inc. and Dick’s Sporting Goods, respectively.

As of December 25, 2021, approximately 28 employees of the Company's labor force were covered by a collective bargaining agreement that expires on January 31, 2025.

Raw materials for Escalade’s various product lines consist of wood, tempered glass, particle board, standard grades of steel and steel tubing, aluminum, engineering plastics, fiberglass and packaging materials. Escalade relies upon domestic, Mexico, and Asian suppliers for these materials and upon various Asian manufacturers for many of its products.

Net sales are attributed to country based on location of customer. Net sales by geographic region/country were as follows:

In Thousands	2021		2020		2019
North America	$	309,211	$	270,173	$	178,069
Europe		2,153		1,555		1,001
Other		2,248		1,921		1,471
	$	313,612	$	273,649	$	180,541