Note 6 - Segment Information

3 Months Ended

Mar. 31, 2014

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

6. 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; 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, one in Sydney, Australia, and one in Jerez, Spain. 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 March 31, 2014
Net sales	$	6,823,968		$	11,956,354		$	1,058,144		$	19,838,466
Gross profit		4,530,209			7,498,416			687,098			12,715,723
Income from operations		1,372,637			1,472,703			121,323			2,966,663
Interest expense		45,828			-			-			45,828
Other, net		(9,776	)		-			8,432			(1,344	)
Income before income taxes		1,336,585			1,472,703			112,891			2,922,179
Depreciation and amortization		225,855			104,441			16,259			346,555
Fixed asset additions		236,211			356,198			48,873			641,282
Total assets	$	41,806,750		$	13,903,814		$	2,919,417		$	58,629,981
For the quarter ended March 31, 2013
Net sales	$	6,729,734		$	11,559,861		$	948,232		$	19,237,827
Gross profit		4,165,155			7,161,228			604,446			11,930,829
Income from operations		1,012,965			1,514,839			93,056			2,620,860
Interest expense		56,094			-			-			56,094
Other, net		(14,493	)		(10	)		(12,236	)		(26,739	)
Income before income taxes		971,364			1,514,849			105,292			2,591,505
Depreciation and amortization		191,533			57,429			14,140			263,102
Fixed asset additions		738,736			242,149			1,668			982,553
Total assets	$	36,244,560		$	10,474,588		$	2,959,476		$	49,678,624

Net sales for geographic areas were as follows for the three months ended March 31, 2014 and 2013:

	2014		2013
United States	$	16,645,886	$	16,196,394
Canada		1,913,512		1,919,723
All other countries		1,279,068		1,121,710
	$	19,838,466	$	19,237,827

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-month periods ended March 31, 2014 and 2013. We do not have any significant long-lived assets outside of the United States.