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, 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 29, 2017. 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 29, 2017			July 30, 2016
Net sales:
Commercial	$	32,863		$	36,254
Live Events	77,612			60,633
High School Park and Recreation	28,479			27,617
Transportation	18,912			14,286
International	14,862			18,356
	172,728			157,146

Contribution margin:
Commercial	3,573			4,496
Live Events	13,737			8,875
High School Park and Recreation	7,747			6,999
Transportation	5,908			3,601
International	(1,258		)	(163		)
	29,707			23,808

Non-allocated operating expenses:
General and administrative	8,935			8,783
Product design and development	9,047			7,043
Operating income	11,725			7,982

Nonoperating income (expense):
Interest income	211			205
Interest expense	(86		)	(42		)
Other income (expense), net	145			(94		)

Income before income taxes	11,995			8,051
Income tax expense	3,566			2,512
Net income	$	8,429		$	5,539

Depreciation and amortization:
Commercial	$	1,534		$	1,567
Live Events	1,238			1,280
High School Park and Recreation	422			438
Transportation	294			322
International	281			329
Unallocated corporate depreciation	691			664
	$	4,460		$	4,600

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 29, 2017		July 30, 2016
Net sales:
United States	$	154,002	$	135,018
Outside U.S.	18,726		22,128
	$	172,728	$	157,146


	July 29, 2017		April 29, 2017
Property and equipment, net of accumulated depreciation:
United States	$	60,248	$	62,425
Outside U.S.	5,045		4,324
	$	65,293	$	66,749

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.