Note 6 - Segment Information

3 Months Ended

Mar. 31, 2015

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, 2015
Net sales	$	6,725,304		$	13,109,413	$	954,047		$	20,788,764
Gross profit		4,169,635			7,845,766		567,527			12,582,928
Income from operations		951,855			1,403,452		33,574			2,388,881
Interest expense		44,163			-		-			44,163
Other, net		(11,393	)		-		(8,480	)		(19,873	)
Income before income taxes		919,085			1,403,452		42,054			2,364,591
Depreciation and amortization		239,718			132,862		11,356			383,936
Fixed asset additions		419,906			257,538		-			677,444
Total assets	$	39,891,481		$	16,388,517	$	3,357,336		$	59,637,334
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

Net sales for geographic areas were as follows for the three months ended March 31, 2015 and 2014:

	2015		2014
United States	$	17,748,632	$	16,645,886
Canada		1,899,118		1,913,512
All other countries		1,141,014		1,279,068
	$	20,788,764	$	19,838,466

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, 2015 and 2014. We do not have any significant long-lived assets outside of the United States.