Note 19 - Operations and Industry Segments

12 Months Ended

Oct. 01, 2011

Segment Reporting Disclosure [Text Block]

19.  OPERATIONS AND INDUSTRY SEGMENTS

For management and reporting purposes, we divide our business into two segments:  medical and custom products.  This industry segment information corresponds to the markets in the United States and Canada for which we manufacture and distribute our various products.  The following table summarizes certain information on industry segments:

	2011			2010			2009
Net sales:
Medical	$	34,741,164		$	35,572,689		$	37,813,756
Custom products		17,837,208			16,782,973			18,053,348
Total	$	52,578,372		$	52,355,662		$	55,867,104
Operating profit:
Medical	$	4,666,538		$	5,742,600		$	5,586,679
Custom products		1,518,916			1,628,106			2,129,488
Total		6,185,454			7,370,706			7,716,167
Corporate expense		(710,281	)		(636,685	)		(848,274	)
Other income		18,893			52,194			24,760
Income from continuing operations
before income taxes	$	5,494,066		$	6,786,215		$	6,892,653

Identifiable assets:
Medical	$	15,209,839	$	14,439,795	$	14,153,908
Custom products		7,097,568		6,016,135		5,887,425
Corporate		8,288,593		6,756,258		6,793,218
	$	30,596,000	$	27,212,188	$	26,834,551
Depreciation and amortization expenses:
Operating:
Medical	$	529,050	$	533,184	$	564,184
Custom products		280,381		279,636		285,271
Corporate		265		471		540
	$	809,696	$	813,291	$	849,995
Capital expenditures:
Medical	$	159,527	$	252,985	$	240,771
Custom products		31,682		17,591		114,373
	$	191,209	$	270,576	$	355,144

Total sales by industry segment include sales from unaffiliated customers as reported in our statements of income.  In calculating operating profit, non-allocable general corporate expenses, interest expense, other income and income taxes are not included, but certain corporate operating expenses incurred for the benefit of all segments are included on an allocated basis.

Identifiable assets are those assets that are used in the operations of each segment on an allocated basis.  Amounts shown for corporate assets consist primarily of cash, marketable securities and cash surrender value of life insurance.

We have several customers whose sales represent significant portions of sales in their respective business segments.  In the medical segment, sales to the top four distributors represented 51% of net medical sales in 2011 and 45% in 2010 and 2009.  In the custom products segment, sales to one customer accounted for 83% of net custom products sales in 2011, 82% in 2010, and 79% in 2009.

Net export sales, including both the medical and custom products segments, were approximately $1,857,000 in 2011, $1,616,000 in 2010, and $2,420,000 in 2009 and were primarily to Canada.  We had no physical assets in Canada or any other foreign country as of October 1, 2011.  See Note 2.