Note 3. Segment Reporting

We organize and manage our business by the following five segments which meet the definition of reportable segments under ASC 280-10, Segment Reporting: Commercial, Live Events, High School Park and Recreation, Transportation, and International. These segments are based on the customer type or geography and are the same as our business units.

Our Commercial business unit primarily consists of sales of our integrated video display systems, digital billboards, Galaxy^® and Fuelight^™ product lines, and dynamic messaging systems to resellers (primarily sign companies), out-of-home ("OOH") companies, national retailers, quick-serve restaurants, casinos, shopping centers, cruise ships, commercial building owners, and petroleum retailers. Our Live Events business unit primarily consists of sales of integrated scoring and video display systems to college and professional sports facilities and convention centers and sales of our mobile display technology to video rental organizations and other live events type venues. Our High School Park and Recreation business unit primarily consists of sales of scoring systems, Galaxy^® displays and video display systems to primary and secondary education facilities and resellers (primarily sign companies). Our Transportation business unit primarily consists of sales of intelligent transportation system dynamic messaging signs for road management, mass transit, and aviation applications and other electronic signage for advertising and way-finding needs, which includes our Vanguard^® and Galaxy^® product lines and other intelligent transportation systems dynamic message signs, to governmental transportation departments, transportation industry contractors, airlines and other transportation related customers. Our International business unit consists of sales of all product lines outside the United States and Canada. In our International business unit, we focus on product lines related to integrated scoring and video display systems for sports and commercial applications, OOH advertising products, architectural lighting, and transportation related products for sale outside of the United States and Canada to the related type of company, including sports and commercial business facilities, OOH companies, and governmental transportation agencies.

We evaluate segment performance based on operating results through contribution margin, which is comprised of gross profit less selling expense. Gross profit is net sales less cost of sales. Cost of sales consists primarily of inventory and components, logistics related costs including tariffs and duties, consumables, salaries, other employee-related costs, facilities-related costs for manufacturing locations, machinery and equipment maintenance and depreciation, site sub-contractors, warranty costs, enterprise resource and service management systems, inventory obsolescence and write-downs, inventory procurement and handling costs, and other manufacturing, installation, and service delivery expenses. Selling expenses consist primarily of salaries, other employee-related costs, travel and entertainment expenses, facilities-related costs for sales and service offices, bad debt expenses, third-party commissions and expenditures for marketing efforts, including the costs of collateral materials, conventions and trade shows, product demonstrations, customer relationship management systems, and supplies. Contribution margin excludes general and administration expense, product design and development expense, non-operating income and expense and income tax expense. Assets are not allocated to the segments. Depreciation and amortization are allocated to each segment based on various financial measures; however, some depreciation and amortization are corporate in nature and remain unallocated. Our segments follow the same accounting policies as those described in "Note 1. Nature of Business and Summary of Significant Accounting Policies." Some expenses or services are not directly allocable to a sale or segment or the resources and related expenses are shared across business segment areas. These expenses are allocated using estimates and allocation methodologies based on some financial measures and professional judgment. Shared or unabsorbed manufacturing costs are allocated to the business unit benefiting most from that manufacturing location's production capabilities. Shared or unabsorbed costs of domestic field sales and services infrastructure, including most field administrative staff, are allocated to the Commercial, Live Events, High School Park and Recreation, and Transportation business units based on cost of sales. Shared manufacturing, buildings and utilities, and procurement costs are allocated based on payroll dollars, square footage and various other financial measures in the segment analysis. Separate financial information is available and regularly evaluated by our chief operating decision-maker ("CODM"), who is our president and chief executive officer, in making resource allocation decisions for our segments.

We do not maintain information on sales by products; therefore, disclosure of such information is not practical.

The following table sets forth certain financial information for each of our five reporting segments for the periods indicated:



	Year Ended
	May 2, 2020			April 27, 2019			April 28, 2018
Net sales:
Commercial	$	152,627		$	148,833		$	134,535
Live Events	196,591			170,952			236,333
High School Park and Recreation	96,414			91,187			87,627
Transportation	70,139			64,391			59,578
International	93,161			94,341			92,457
	608,932			569,704			610,530

Gross profit:
Commercial	29,246			31,785			26,665
Live Events	39,518			32,164			49,755
High School Park and Recreation	28,874			26,858			29,317
Transportation	23,910			22,525			21,247
International	17,152			16,962			18,685
	138,700			130,294			145,669

Contribution margin: (1)
Commercial	9,897			13,218			7,986
Live Events	26,074			18,484			35,439
High School Park and Recreation	15,341			14,518			18,317
Transportation	19,566			18,260			17,048
International	1,920			1,166			4,119
	72,798			65,646			82,909

Non-allocated operating expenses:
General and administrative	35,193			34,817			34,919
Product design and development	37,772			35,557			35,530
Operating (loss) income	(167		)	(4,728		)	12,460

Nonoperating income (expense):
Interest income	805			1,031			723
Interest expense	(106		)	(160		)	(217		)
Other (expense) income, net	(541		)	(1,087		)	(537		)

(Loss) income before income taxes	(9		)	(4,944		)	12,429
Income tax (benefit) expense	(500		)	(3,986		)	6,867
Net income (loss)	$	491		$	(958	)	$	5,562

Depreciation and amortization:
Commercial	$	3,682		$	4,795		$	6,199
Live Events	5,605			5,194			4,783
High School Park and Recreation	2,025			1,965			1,646
Transportation	1,029			1,102			1,138
International	2,460			2,829			1,163
Unallocated corporate depreciation	2,917			2,750			2,855
	$	17,718		$	18,635		$	17,784

(1) Contribution margin consists of gross profit less selling expense.

No single geographic area comprises a material amount of our net sales or property and equipment, net of accumulated depreciation, other than the United States. The following table presents information about net sales and property and equipment, net of accumulated depreciation, in the United States and elsewhere:



	Year Ended
	May 2, 2020		April 27, 2019		April 28, 2018
Net sales:
United States	$	504,931	$	460,099	$	501,646
Outside United States	104,001		109,605		108,884
	$	608,932	$	569,704	$	610,530
Property and equipment, net of accumulated depreciation:
United States	$	58,422	$	59,192	$	61,206
Outside United States	9,062		6,122		6,853
	$	67,484	$	65,314	$	68,059

We have numerous customers worldwide for sales of our products and services, and no customer accounted for 10% or more of net sales; therefore, we are not economically dependent on a limited number of customers for the sale of our products and services.

We have numerous raw material and component suppliers, and no supplier accounts for 10% or more of our cost of sales; however, we have a number of single-source suppliers that could limit our supply or cause delays in obtaining raw material and components needed in manufacturing.