Note 4. 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, 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 gross profit less selling costs. Gross profit is net sales less cost of goods sold. Cost of goods sold consists primarily of inventory, consumables, salaries, other employee-related costs, facilities-related costs for manufacturing locations, machinery and equipment maintenance and depreciation, site sub-contractors, warranty costs, and other 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 demos, and supplies. 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. 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 manufacturing costs are allocated to the business unit benefiting most from that manufacturing location's production capabilities. 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 reporting segments for the periods indicated:



	Three Months Ended						Nine Months Ended
	January 27, 2018			January 28, 2017			January 27, 2018			January 28, 2017
Net sales:
Commercial	$	35,483		$	36,165		$	102,723		$	112,342
Live Events	45,167			41,036			191,432			157,032
High School Park and Recreation	11,463			12,653			69,602			68,977
Transportation	11,189			9,130			46,577			39,517
International	27,014			16,735			62,019			64,989
	130,316			115,719			472,353			442,857

Gross profit:
Commercial	7,546			7,711			21,085			27,418
Live Events	9,747			6,629			43,056			30,430
High School Park and Recreation	2,768			3,198			23,672			21,900
Transportation	3,570			2,325			16,696			12,966
International	4,936			3,453			11,308			13,977
	28,567			23,316			115,817			106,691

Selling expense:
Commercial	4,415			4,575			13,778			13,949
Live Events	3,843			3,417			10,562			9,686
High School Park and Recreation	2,726			2,581			8,073			7,532
Transportation	945			952			3,084			3,461
International	3,342			3,153			10,063			11,200
	15,271			14,678			45,560			45,828

Non-allocated operating expenses:
General and administrative	8,335			8,599			26,138			26,007
Product design and development	8,299			6,973			26,294			21,142
Operating (loss) income	(3,338		)	(6,934		)	17,825			13,714

Nonoperating income (expense):
Interest income	158			183			520			559
Interest expense	(40		)	(56		)	(173		)	(174		)
Other (expense) income, net	(487		)	(305		)	(429		)	(250		)

(Loss) income before income taxes	(3,707		)	(7,112		)	17,743			13,849
Income tax expense (benefit)	2,482			(1,985		)	8,371			4,416
Net (loss) income	$	(6,189	)	$	(5,127	)	$	9,372		$	9,433

Depreciation, amortization and impairment:
Commercial	$	1,550		$	1,616		$	4,628		$	4,777
Live Events	1,192			1,245			3,626			3,798
High School Park and Recreation	401			421			1,245			1,310
Transportation	281			311			860			957
International	284			423			835			1,914
Unallocated corporate depreciation	725			683			2,141			2,015
	$	4,433		$	4,699		$	13,335		$	14,771

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				Nine Months Ended
	January 27, 2018		January 28, 2017		January 27, 2018		January 28, 2017
Net sales:
United States	$	98,297	$	94,174	$	396,155	$	363,766
Outside United States	32,019		21,545		76,198		79,091
	$	130,316	$	115,719	$	472,353	$	442,857


	January 27, 2018		April 29, 2017
Property and equipment, net of accumulated depreciation:
United States	$	58,333	$	62,425
Outside United States	5,962		4,324
	$	64,295	$	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.