Note 12 - Segment Information

12 Months Ended

Dec. 31, 2016

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

12.

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 four stores. One store is located in each of Northampton, United Kingdom; Sydney, Australia; Jerez, Spain; and Manchester, United Kingdom which opened in October 2015.

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, 2016
Net Sales	$	25,371,580		$	53,670,340	$	3,882,072		$	82,923,992
Gross Profit		18,097,205			31,217,798		2,398,239			51,713,242
Operating earnings		5,254,227			4,970,546		75,958			10,300,731
Interest expense		155,189			-		-			155,189
Other expense, net		(35,290	)		-		(21,997	)		(57,287	)
Income before income taxes		5,134,328			4,970,546		97,955			10,202,829
Depreciation and amortization		969,202			662,332		87,620			1,719,154
Fixed asset additions		869,250			740,578		87,875			1,697,704
Total assets	$	50,067,046		$	16,435,386	$	4,150,288		$	70,652,720
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	$	42,141,174		$	17,753,324	$	4,716,578		$	64,611,076
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

Net sales by geographic areas were as follows:

	201 6		201 5		20 14
United States	$	70,886,401	$	72,061,009	$	69,791,099
Canada		7,199,155		7,543,468		8,342,896
All other countries		4,838,436		4,556,723		5,296,917
	$	82,923,992	$	84,161,200	$	83,430,912

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,

2016,

2015,

and

2014.

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