Note 5. Segment Reporting

We organize and manage our business by the following 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. We evaluate segment performance based on operating results through contribution margin, which is comprised of gross profit less selling expense. We exclude general and administration expense, product design and development expense, non-operating income and expense, and income tax expense 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.

The following table sets forth certain financial information for each of our five reporting segments for the periods indicated:



	Three Months Ended						Six Months Ended
	November 2, 2019			October 27, 2018			November 2, 2019			October 27, 2018
Net sales:
Commercial	$	39,651		$	46,069		$	83,686		$	76,638
Live Events	59,319			55,099			118,625			104,571
High School Park and Recreation	30,193			31,580			60,658			59,700
Transportation	20,330			18,077			39,348			35,234
International	25,418			21,867			52,850			50,737
	174,911			172,692			355,167			326,880

Gross profit:
Commercial	7,862			11,757			17,080			18,651
Live Events	11,934			12,312			24,671			22,545
High School Park and Recreation	9,224			9,759			19,411			19,261
Transportation	7,003			6,140			13,757			11,591
International	4,064			2,789			10,673			8,956
	40,087			42,757			85,592			81,004

Contribution margin: (1)
Commercial	2,853			7,050			6,937			9,524
Live Events	8,362			8,918			17,234			15,903
High School Park and Recreation	5,988			6,706			12,580			13,258
Transportation	5,895			4,991			11,347			9,286
International	812			(1,033		)	3,020			530
	23,910			26,632			51,118			48,501

Non-allocated operating expenses:
General and administrative	8,965			8,574			18,058			17,111
Product design and development	10,121			9,039			20,621			18,331
Operating income	4,824			9,019			12,439			13,059

Nonoperating income (expense):
Interest income	162			188			431			385
Interest expense	(31		)	(2		)	(66		)	(41		)
Other income (expense), net	(514		)	(66		)	(321		)	(220		)

Income before income taxes	4,441			9,139			12,483			13,183
Income tax (benefit) expense	(2,833		)	533			(1,821		)	3
Net income	$	7,274		$	8,606		$	14,304		$	13,180

Depreciation and amortization:
Commercial	$	895		$	1,236		$	1,869		$	2,414
Live Events	1,394			1,334			2,792			2,506
High School Park and Recreation	507			517			1,019			960
Transportation	252			277			516			551
International	563			723			1,087			1,423
Unallocated corporate depreciation	730			725			1,441			1,446
	$	4,341		$	4,812		$	8,724		$	9,300

(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:



	Three Months Ended				Six Months Ended
	November 2, 2019		October 27, 2018		November 2, 2019		October 27, 2018
Net sales:
United States	$	147,106	$	145,936	$	296,566	$	267,261
Outside United States	27,805		26,756		58,601		59,619
	$	174,911	$	172,692	$	355,167	$	326,880


	November 2, 2019		April 27, 2019
Property and equipment, net of accumulated depreciation:
United States	$	59,655	$	59,192
Outside United States	7,508		6,122
	$	67,163	$	65,314

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.