Note 7 - Segment Information

6 Months Ended

Jun. 30, 2015

Notes to Financial Statements

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, 201 5
Net sales	$	6,394,278		$	12,532,411	$	846,839		$	19,773,528
Gross profit		4,726,907			7,548,859		538,615			12,814,381
Operating earnings		968,552			1,336,669		28,621			2,333,842
Interest (expense)		(34,762	)		-		-			(34,762	)
Other income (expense), net		25,769			-		(15,892	)		9,877
Income before income taxes		959,559			1,336,669		12,729			2,308,957
Depreciation and amortization		274,536			137,735		13,249			425,520
Fixed asset additions		164,540			226,777		19,470			410,787
Total assets	$	38,507,395		$	20,875,591	$	4,186,980		$	63,569,966
For the quarter ended June 30 , 20 14
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

	Wholesale Leathercraft			Retail Leathercraft		Int’l Leathercraft			Total
For the six months ended June 30, 201 5
Net sales	$	13,119,582		$	25,641,824	$	1,800,886		$	40,562,292
Gross profit		8,896,542			15,394,625		1,106,142			25,397,309
Operating earnings		1,920,407			2,740,121		62,195			4,722,723
Interest (expense)		(78,925	)		-		-			(78,925	)
Other income (expense), net		37,162			-		(7,412	)		29,750
Income before income taxes		1,878,644			2,740,121		54,783			4,673,548
Depreciation and amortization		514,254			270,597		24,605			809,456
Fixed asset additions		584,446			484,315		19,470			1,088,231
Total assets	$	38,507,395		$	20,875,591	$	4,186,980		$	63,569,966
For the six months ended June 30, 201 4
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

Net sales for geographic areas were as follows for the three and six months ended June 30, 2015 and 2014:

Three months ended June 30,	20 15		20 14
United States	$	16,836,732	$	16,432,956
Canada		1,852,181		2,030,752
All other countries		1,084,615		1,239,899
	$	19,773,528	$	19,703,607
Six months ended June 30,	20 15		20 14
United States	$	34,585,363	$	33,078,842
Canada		3,738,766		3,926,810
All other countries		2,238,163		2,536,421
	$	40,562,292	$	39,542,073

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