Note 3. Segment Reporting

We organize and manage our business by 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, 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
	April 27, 2019			April 28, 2018			April 29, 2017
Net sales:
Commercial	$	148,833		$	134,535		$	148,073
Live Events	170,952			236,333			213,982
High School Park and Recreation	91,187			87,627			82,798
Transportation	64,391			59,578			52,426
International	94,341			92,457			89,260
	569,704			610,530			586,539

Gross profit:
Commercial	31,785			26,665			36,514
Live Events	32,164			49,755			40,810
High School Park and Recreation	26,858			29,317			26,388
Transportation	22,525			21,247			18,027
International	16,962			18,685			18,676
	130,294			145,669			140,415

Contribution margin: (1)
Commercial	13,218			7,986			18,046
Live Events	18,484			35,439			27,750
High School Park and Recreation	14,518			18,317			16,114
Transportation	18,260			17,048			13,465
International	1,166			4,119			3,353
	65,646			82,909			78,728

Non-allocated operating expenses:
General and administrative	34,817			34,919			34,226
Product design and development	35,557			35,530			29,081
Operating (loss) income	(4,728		)	12,460			15,421

Nonoperating income (expense):
Interest income	1,031			723			751
Interest expense	(160		)	(217		)	(230		)
Other (expense) income, net	(1,087		)	(537		)	(354		)

(Loss) Income before income taxes	(4,944		)	12,429			15,588
Income tax (benefit) expense	(3,986		)	6,867			5,246
Net (loss) income	$	(958	)	$	5,562		$	10,342

Depreciation, amortization and impairment:
Commercial	$	4,795		$	6,199		$	6,337
Live Events	5,194			4,783			5,032
High School Park and Recreation	1,965			1,646			1,725
Transportation	1,102			1,138			1,267
International	2,829			1,163			2,317
Unallocated corporate depreciation	2,750			2,855			2,714
	$	18,635		$	17,784		$	19,392

(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
	April 27, 2019		April 28, 2018		April 29, 2017
Net sales:
United States	$	460,099	$	501,646	$	485,044
Outside United States	109,605		108,884		101,495
	$	569,704	$	610,530	$	586,539
Property and equipment, net of accumulated depreciation:
United States	$	59,192	$	61,206	$	62,425
Outside United States	6,122		6,853		4,324
	$	65,314	$	68,059	$	66,749

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.