Note 7 - Segment Information

6 Months Ended

Jun. 30, 2014

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 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 June 30, 2014
Net sales	$	6,457,467		$	12,201,624	$	1,044,516		$	19,703,607
Gross profit		4,774,051			7,308,073		697,482			12,779,606
Operating earnings		1,106,942			1,427,913		121,422			2,656,277
Interest (expense)		(44,855	)		-		-			(44,855	)
Other income (expense), net		15,398			-		(10,064	)		5,334
Income before income taxes		1,077,485			1,427,913		111,358			2,616,756
Depreciation and amortization		238,783			113,319		17,263			369,365
Fixed asset additions		160,847			145,768		1,185			307,800
Total assets	$	45,455,609		$	14,967,724	$	2,314,779		$	62,738,112
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

	Wholesale Leathercraft			Retail Leathercraft		Int’l Leathercraft			Total
For the six months ended June 30, 2014
Net sales	$	13,281,435		$	24,157,978	$	2,102,660		$	39,542,073
Gross profit		9,304,260			14,806,489		1,384,580			25,495,329
Operating earnings		2,479,579			2,900,616		242,745			5,622,940
Interest (expense)		(90,683	)		-		-			(90,683	)
Other income (expense), net		25,174			-		(18,496	)		6,678
Income before income taxes		2,414,070			2,900,616		224,249			5,538,935
Depreciation and amortization		464,639			217,760		33,521			715,920
Fixed asset additions		397,057			501,967		50,058			949,082
Total assets	$	45,455,609		$	14,967,724	$	2,314,779		$	62,738,112
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

Net sales for geographic areas were as follows for the three and six months ended June 30, 2014 and 2013:

Three months ended June 30,	2014		2013
United States	$	16,432,956	$	15,741,570
Canada		2,030,752		1,918,986
All other countries		1,239,899		1,312,457
	$	19,703,607	$	18,973,013

Six months ended June 30,	2014		2013
United States	$	33,078,842	$	31,937,964
Canada		3,926,810		3,838,709
All other countries		2,536,421		2,434,167
	$	39,542,073	$	38,210,840

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 and six-month periods ended June 30, 2014 and 2013. We do not have any significant long-lived assets outside of the United States.