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Segment Disclosure
 3 Months Ended
Jul. 30, 2016
Segment Reporting [Abstract]  
Segment Disclosure
Note 4. Segment Disclosure

We have organized our business into five segments which meet the definition of reportable segments under Accounting Standards Codification ("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), Out-of-Home ("OOH") companies, 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. 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, and European transportation related products.

Our segment reporting presents 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 April 30, 2016.  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.

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
 
 
July 30,
2016
 
August 1,
2015
 
Net sales:
 
 
 
 
    Commercial
$
36,254

 
$
43,210

 
    Live Events
60,633

 
47,922

 
    High School Park and Recreation
27,617

 
18,959

 
    Transportation
14,286

 
13,767

 
    International
18,356

 
26,363

 
 
157,146

 
150,221

 
 
 
 
 
 
Contribution margin:
 
 
 
 
    Commercial
4,496

 
6,113

 
    Live Events
8,875

 
6,183

 
    High School Park and Recreation
6,999

 
3,775

 
    Transportation
3,601

 
3,180

 
    International
(163
)
 
1,986

 
 
23,808

 
21,237

 
 
 
 
 
 
Non-allocated operating expenses:
 
 
 
 
    General and administrative
8,783

 
8,170

 
    Product design and development
7,043

 
6,968

 
Operating income
7,982

 
6,099

 
 
 
 
 
 
Nonoperating (expense) income:
 
 
 
 
    Interest income
205

 
298

 
    Interest expense
(42
)
 
(62
)
 
Other income (expense), net
(94
)
 
(443
)
 
 
 
 
 
 
Income before income taxes
8,051

 
5,892

 
Income tax expense
2,512

 
2,116

 
Net income
$
5,539

 
$
3,776

 
 
 
 
 
 
Depreciation and amortization:
 
 
 
 
    Commercial
$
1,567

 
$
1,257

 
    Live Events
1,280

 
1,321

 
    High School Park and Recreation
438

 
490

 
    Transportation
322

 
329

 
    International
329

 
256

 
    Unallocated corporate depreciation
655

 
402

 
 
$
4,591

 
$
4,055

 

 
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:
 
Three Months Ended
 
 
July 30,
2016
 
August 1,
2015
 
Net sales:
 
 
 
 
United States
$
135,018

 
$
119,867

 
Outside U.S.
22,128

 
30,354

 
 
$
157,146

 
$
150,221

 
 
 
 
 
 
 
 
 
 
 
 
July 30,
2016
 
April 30,
2016
 
Property and equipment, net of accumulated depreciation:
 
 
 
 
United States
$
66,386

 
$
68,233

 
Outside U.S.
4,656

 
4,930

 
 
$
71,042

 
$
73,163

 

 
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 two major digital billboard customers in our Commercial business unit.