Note 12 - Segment Information

12 Months Ended

Dec. 31, 2015

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

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. 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; one store located in Jerez, Spain which opened in January 2012; and one store located in Manchester, United Kingdom which opened in October 2015. 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, 2015
Net Sales	$	26,754,165		$	53,714,432		$	3,692,603		$	84,161,200
Gross Profit		18,579,494			31,258,961			2,232,605			52,071,060
Operating earnings		4,663,590			5,689,814			121,296			10,474,700
Interest expense		330,004			-			-			330,004
Other expense, net		(63,230	)		-			(11,127	)		(74,357	)
Income before income taxes		4,396,816			5,689,814			132,423			10,219,053
Depreciation and amortization		950,174			559,418			57,580			1,567,172
Fixed asset additions		945,998			932,231			285,811			2,164,040
Total assets	$	42,097,024		$	17,753,324		$	4,716,578		$	64,566,926
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

Net sales by geographic areas were as follows:

	201 5		2014		20 13
United States	$	72,061,009	$	69,791,099	$	65,371,652
Canada		7,543,468		8,342,896		8,004,320
All other countries		4,556,723		5,296,917		4,908,613
	$	84,161,200	$	83,430,912	$	78,284,585

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, 2015, 2014, and 2013. We do not have any significant long-lived assets outside of the United States.