Note 11 - Segment Information

12 Months Ended

Dec. 31, 2014

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

11. 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, 2014
Net Sales	$	27,285,884		$	51,805,944		$	4,339,084		$	83,430,912
Gross Profit		18,393,969			30,880,718			2,850,070			52,124,757
Operating earnings		5,300,413			6,077,345			580,271			11,958,029
Interest expense		225,584			-			-			225,584
Other expense, net		(61,984	)		-			(13,181	)		(75,165	)
Income before income taxes		5,136,813			6,077,345			593,452			11,807,610
Depreciation and amortization		911,327			460,534			64,763			1,436,624
Fixed asset additions		909,260			1,243,123			51,807			2,204,190
Total assets	$	43,000,030		$	16,608,386		$	3,265,458		$	62,873,874
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 expense, 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 expense, 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

Net sales by geographic areas were as follows:

	2014		2013		2012
United States	$	69,791,099	$	65,371,652	$	61,041,650
Canada		6,342,896		8,004,320		7,496,840
All other countries		5,296,917		4,908,613		4,182,134
	$	83,430,912	$	78,284,585	$	72,720,624

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, 2014, 2013, and 2012. We do not have any significant long-lived assets outside of the United States.