Note 7 - Segment Information

3 Months Ended

Mar. 31, 2017

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

7.

SEGMENT INFORMATION

Effective

January

1,

2017,

we updated our reporting segments to better reflect how management analyzes the business and allocates resources, as follows:

Prior Reporting Structure	New Reporting Structure
1. Wholesale  –  chain of wholesale stores operating under the name, The Leather Factory, located in North America	1. North America  – chain of stores located in North America (combined prior Wholesale and Retail)
2. Retail  –  chain of retail stores operating under the name, Tandy Leather Company, located in North America	2. International – no change
3. International  –  four stores, 2 located in UK, 1 in Spain and 1 in Australia

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. The

2016

segment information has been restated to conform to the current segment structure.

	North America			International			Total
For the quarter ended March 31, 20 17
Net sales	$	19,231,714		$	918,131		$	20,149,845
Gross profit		11,752,957			533,088			12,286,045
Operating income (loss)		1,811,563			(74,072	)		1,737,491
Interest expense		36,344			-			36,344
Other (income) expense, net		(17,654	)		15,003			(2,651	)
Income (loss) before income taxes		1,792,873			(89,075	)		1,703,798
Depreciation and amortization		436,281			21,837			458,118
Fixed asset additions		597,826			1,931			599,757
Total assets	$	67,016,728		$	4,252,046		$	71,268,774
For the quarter ended March 31, 20 16
Net sales	$	19,739,491		$	932,736		$	20,672,227
Gross profit		12,084,809			567,937			12,652,746
Operating income		2,341,209			21,581			2,362,790
Interest expense		23,429			-			23,429
Other (income) expense, net		(5,746	)		5,785			39
Income before income taxes		2,323,526			15,796			2,339,322
Depreciation and amortization		393,592			20,636			414,228
Fixed asset additions		602,864			4,068			606,932
Total assets	$	60,145,915		$	5,113,930		$	65,259,845

Net sales for geographic areas were as follows for the

three

months ended

March

31:

	201 7		201 6
United States	$	17,282,664	$	17,727,629
Canada		1,773,510		1,741,756
All other countries		1,093,671		1,202,842
	$	20,149,845	$	20,672,227

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,

2017

and

2016.

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