Note 7 - Segment Information

6 Months Ended

Jun. 30, 2013

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

7. 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 the North America; and

c.  International Leathercraft, which sells to both wholesale and retail customers. We have three stores operating in this segment: one in Northampton, United Kingdom which opened in February 2008, one in Sydney, Australia which opened in October 2011, and one 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		Int’l Leathercraft		Total
For the quarter ended June 30, 2013
Net sales	$	6,728,586		$	11,242,080	$	1,002,347	$	18,973,013
Gross profit		4,648,116			6,670,357		601,648		11,920,121
Operating earnings		883,533			1,377,105		85,426		2,346,064
Interest (expense)		(51,544	)		-		-		(51,544	)
Other income (expense), net		60,212			16		38,056		98,284
Income before income taxes		892,201			1,377,121		123,482		2,392,804
Depreciation and amortization		221,625			64,193		13,790		299,608
Fixed asset additions		830,162			149,985		-		980,147
Total assets	$	39,552,986		$	10,815,721	$	2,787,275	$	53,155,982
For the quarter ended June 30, 2012
Net sales	$	6,282,990		$	9,863,139	$	758,125	$	16,904,254
Gross profit		4,273,989			6,145,188		521,024		10,940,201
Operating earnings		1,103,311			1,309,503		51,958		2,464,772
Interest (expense)		(58,235	)		-		-		(58,235	)
Other income (expense), net		12,299			-		30,458		42,757
Income before income taxes		1,057,375			1,309,503		82,416		2,449,294
Depreciation and amortization		203,927			46,465		14,125		264,517
Fixed asset additions		102,598			141,537		19,635		263,770
Total assets	$	36,240,356		$	9,358,545	$	2,811,382	$	48,410,283

	Wholesale Leathercraft			Retail Leathercraft		Int’l Leathercraft		Total
For the six months ended June 30, 2013
Net sales	$	13,458,320		$	22,801,941	$	1,950,579	$	38,210,840
Gross profit		8,813,271			13,831,585		1,206,094		23,850,950
Operating earnings		1,896,498			2,891,944		178,482		4,966,924
Interest (expense)		(107,638	)		-		-		(107,638	)
Other income (expense), net		74,705			26		50,292		125,023
Income before income taxes		1,863,565			2,891,970		228,774		4,984,309
Depreciation and amortization		413,158			121,622		27,930		562,710
Fixed asset additions		1,568,898			392,134		1,668		1,962,700
Total assets	$	39,552,986		$	10,815,721	$	2,787,275	$	53,155,982
For the six months ended June 30, 2012
Net sales	$	13,435,407		$	20,145,953	$	1,499,972	$	35,081,332
Gross profit		8,803,672			12,517,333		984,829		22,305,834
Operating earnings		2,336,163			2,668,228		14,556		5,018,947
Interest expense		(116,627	)		-		-		(116,627	)
Other income (expense), net		28,347			13		34,211		62,571
Income before income taxes		2,247,883			2,668,241		48,767		4,964,891
Depreciation and amortization		407,617			89,916		26,520		524,053
Fixed asset additions		134,224			196,291		73,096		403,611
Total assets	$	36,240,356		$	9,358,545	$	2,811,382	$	48,410,283

Net sales for geographic areas were as follows for the three and six months ended June 30, 2013 and 2012:

Three months ended June 30,	2013		2012
United States	$	15,741,570	$	14,112,191
Canada		1,918,986		1,732,982
All other countries		1,312,457		1,059,081
	$	18,973,013	$	16,904,254

Six months ended June 30,	2013		2012
United States	$	31,937,964	$	29,639,646
Canada		3,838,709		3,452,822
All other countries		2,434,167		1,988,864
	$	38,210,840	$	35,081,332

Geographic sales information is based on the location of the customer. No single foreign country, except for Canada, accounted for any material amount of our consolidated net sales for the three or six-month periods ended June 30, 2013 and 2012. We do not have any significant long-lived assets outside of the United States.