Note 14 - Segment Information

12 Months Ended

Dec. 31, 2012

Segment Reporting Disclosure [Text Block]

14.  SEGMENT INFORMATION

We identify our segments based on the activities of three distinct operations:

a. Wholesale Leathercraft, which consists of a chain of wholesale stores operating under the name, The Leather Factory, located in North America;

b. Retail Leathercraft, which consists of a chain of retail stores operating under the name, Tandy Leather Company, located in North America;

c. International Leathercraft, which sells to both wholesale and retail customers.  We have one store located in Northampton, United Kingdom which opened in February 2008, one store located in Sydney, Australia which opened in October 2011, and one store located in Jerez, Spain which opened in January 2012.  These stores carry the same products as our North American stores.

Our reportable operating segments have been determined as separately identifiable business units and we measure segment earnings as operating earnings, defined as income before interest and income taxes.

	Wholesale Leathercraft			Retail Leathercraft			International Leathercraft			Total
For the year ended December 31, 2012
Net Sales	$	26,850,002		$	42,616,546		$	3,254,076		$	72,720,624
Gross Profit		18,063,191			25,833,852			2,008,631			45,905,674
Operating earnings		3,730,678			5,436,745			(23,418	)		9,144,005
Interest expense		240,934			-			-			240,934
Other, net		(14,498	)		(13	)		(27,763	)		(42,574	)
Income before income taxes		3,504,542			5,436,758			4,345			8,945,645
Depreciation and amortization		820,622			193,394			54,210			1,068,226
Fixed asset additions		2,111,569			496,846			77,806			2,686,221
Total assets	$	36,535,099		$	10,037,416		$	2,515,157		$	49,087,672
For the year ended December 31, 2011
Net Sales	$	26,540,899		$	37,435,832		$	2,126,216		$	66,102,947
Gross Profit		16,268,075			22,645,847			1,423,237			40,337,159
Operating earnings		2,803,034			4,656,067			247,549			7,706,650
Interest expense		248,576			-			-			248,576
Other, net		(79,149	)		-			(4,279	)		(83,428	)
Income before income taxes		2,642,586			4,647,089			251,827			7,541,502
Depreciation and amortization		841,058			158,804			16,699			1,016,561
Fixed asset additions		535,713			350,570			214,240			1,100,523
Total assets	$	35,966,965		$	7,185,016		$	2,350,934		$	45,502,915
For the year ended December 31, 2010
Net Sales	$	25,908,177		$	32,291,442		$	1,693,251		$	59,892,870
Gross Profit		15,731,593			19,439,045			1,080,219			36,250,857
Operating earnings		2,690,061			3,614,856			330,694			6,635,611
Interest expense		265,405			-			-			265,405
Other, net		(125,700	)		8,756			11,404			(105,540	)
Income before income taxes		2,550,356			3,606,100			319,290			6,475,746
Depreciation and amortization		826,515			132,217			13,677			972,409
Fixed asset additions		1,372,040			179,703			1,596			1,553,339
Total assets	$	33,595,847		$	6,230,213		$	769,514		$	40,595,574

Net sales by geographic areas were as follows:

	2012		2011		2010
United States	$	61,041,650	$	56,337,737	$	51,561,070
Canada		7,496,840		6,714,100		5,862,857
All other countries		4,182,134		3,051,110		2,468,943
	$	72,720,624	$	66,102,947	$	59,892,870

Geographic sales information is based on the location of the customer.  Except for Canada, we had no sales to any single foreign country that was material to our consolidated net sales for the years ended December 31, 2012, 2011 and 2010.  We do not have any significant long-lived assets outside of the United States.