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Segment Disclosure
 3 Months Ended
Aug. 01, 2015
Segment Reporting [Abstract]  
Segment Disclosure
Note 3. Segment Disclosure

We have organized our business into 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 type of customer or geography and are the same as our business units.
 
Our Commercial business unit primarily consists of sales of our video display systems, digital billboards, and Galaxy® and Fuelight™ product lines to resellers (primarily sign companies), outdoor advertisers, national retailers, quick-serve restaurants, casinos 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.  Our Transportation business unit primarily consists of sales of our Vanguard® and Galaxy® product lines to governmental transportation departments, airlines and other transportation related customers.  Our International business unit consists of sales of all product lines outside the United States and Canada. We focus on product lines that relate to integrated scoring and video display systems for sports and commercial applications, out-of-home advertising products, and European transportation related products.

Segment reports present results through contribution margin, which is comprised of gross profit less selling costs. Segment profit excludes general and administration expense, product development expense, interest income and expense, non-operating income 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.  In general, our segments follow the same accounting policies as those described in Note 1 of our Annual Report on Form 10-K for the fiscal year ended May 2, 2015.  Unabsorbed costs of domestic field sales and services infrastructure, including most field administrative staff, are allocated to the Commercial, Live Events, Transportation, and High School Park and Recreation 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.

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 operating segments for the periods indicated:
 
Three Months Ended
 
 
August 1,
2015
 
August 2,
2014
 
Net sales:
 
 
 
 
    Commercial
$
43,210

 
$
39,782

 
    Live Events
47,922

 
75,674

 
    High School Park and Recreation
18,959

 
20,111

 
    Transportation
13,767

 
13,313

 
    International
26,363

 
17,738

 
 
150,221

 
166,618

 
 
 
 
 
 
Contribution margin:
 
 
 
 
    Commercial
6,113

 
6,912

 
    Live Events
6,183

 
12,047

 
    High School Park and Recreation
3,775

 
5,158

 
    Transportation
3,180

 
3,281

 
    International
1,986

 
959

 
 
21,237

 
28,357

 
 
 
 
 
 
Non-allocated operating expenses:
 
 
 
 
    General and administrative
8,170

 
7,937

 
    Product design and development
6,968

 
6,803

 
Operating income
6,099

 
13,617

 
 
 
 
 
 
Nonoperating (expense) income:
 
 
 
 
    Interest income
298

 
300

 
    Interest expense
(62
)
 
(68
)
 
Other (expense) income, net
(443
)
 
(172
)
 
 
 
 
 
 
Income before income taxes
5,892

 
13,677

 
Income tax expense
2,116

 
4,932

 
Net income
$
3,776

 
$
8,745

 
 
 
 
 
 
Depreciation and amortization:
 
 
 
 
    Commercial
$
1,257

 
$
1,207

 
    Live Events
1,321

 
1,147

 
    High School Park and Recreation
490

 
453

 
    Transportation
329

 
265

 
    International
256

 
250

 
    Unallocated corporate depreciation
402

 
394

 
 
$
4,055

 
$
3,716

 

 
No single geographic area comprises a material amount of 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:
 
Three Months Ended
 
August 1,
2015
 
August 2,
2014
Net sales:
 
 
 
United States
$
119,867

 
$
141,830

Outside U.S.
30,354

 
24,788

 
$
150,221

 
$
166,618

 
 
 
 
 
 
 
 
 
August 1,
2015
 
May 2,
2015
Property and equipment, net of accumulated depreciation:
 
 
 
United States
$
71,090

 
$
67,882

Outside U.S.
4,854

 
4,962

 
$
75,944

 
$
72,844


 
We have numerous customers worldwide for sales of our products and services; therefore, we are not economically dependent on a limited number of customers for the sale of our products and services except with respect to our dependence on a few large digital billboard customers in our Commercial business unit.