Note 13 - Segment Information

12 Months Ended

Dec. 31, 2013

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

13. 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, 2013
Net Sales	$	27,384,614		$	46,995,902		$	3,904,069		$	78,284,585
Gross Profit		18,425,268			28,430,800			2,471,956			49,328,024
Operating earnings		4,840,416			6,026,731			399,643			11,266,790
Interest expense		206,763			-			-			206,763
Other expenses, net		(118,218	)		(29	)		(42,485	)		(160,732	)
Income before income taxes		4,751,871			6,026,760			442,128			11,220,759
Depreciation and amortization		866,264			271,536			56,812			1,194,612
Fixed asset additions		1,946,980			1,778,727			44,315			3,770,022
Total assets	$	40,981,591		$	12,206,584		$	3,210,391		$	56,398,566
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 expenses, net		(14,798	)		(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 expenses, net		(79,149	)		-			(4,279	)		(83,428	)
Income before income taxes		2,633,607			4,656,067			251,828			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

Net sales by geographic areas were as follows:

	2013		2012		2011
United States	$	65,371,652	$	61,041,650	$	56,337,737
Canada		8,004,320		7,496,840		6,714,100
All other countries		4,908,613		4,182,134		3,051,110
	$	78,284,585	$	72,720,624	$	66,102,947

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, 2013, 2012 and 2011. We do not have any significant long-lived assets outside of the United States.