Note 7 - Segment Information

3 Months Ended

Mar. 31, 2016

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 four stores operating in this segment: one in Northampton, United Kingdom; one in Manchester, United Kingdom (which opened in October 2015); 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, 20 16
Net sales	$	6,496,908		$	13,242,583	$	932,736		$	20,672,227
Gross profit		4,388,629			7,696,180		567,937			12,652,746
Income from operations		1,126,259			1,214,950		21,581			2,362,790
Interest expense		23,429			-		-			23,429
Other, net		(5,746	)		-		5,785			39
Income before income taxes		1,108,576			1,214,950		15,796			2,339,322
Depreciation and amortization		241,899			151,693		20,636			414,228
Fixed asset additions		371,299			231,565		4,068			606,932
Total assets	$	41,849,437		$	18,296,478	$	5,113,930		$	65,259,845
For the quarter ended March 31, 20 15
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

Net sales for geographic areas were as follows for the three months ended March 31:

	201 6		201 5
United States	$	17,727,629	$	17,748,632
Canada		1,741,756		1,899,118
All other countries		1,202,842		1,141,014
	$	20,672,227	$	20,788,764

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, 2016 and 2015. We do not have any significant long-lived assets outside of the United States.