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Note 7 - Segment Information
9 Months Ended
Sep. 30, 2011
Segment Reporting Disclosure [Text Block]
7.           SEGMENT INFORMATION

We identify our segments based on the activities of three distinct operations:

 
a.
Wholesale Leathercraft, which consists of a chain of wholesale stores operating under the name, The Leather Factory, located in North America;

 
b.
Retail Leathercraft, which consists of a chain of retail stores operating under the name, Tandy Leather Company, located in the North America; and

 
c.
International Leathercraft, which sells to both wholesale and retail customers.  It carries the same products as North American stores.  As of September 30, 2011, this operation consisted of one store located in Northampton, UK.  A second store was opened in October 2011 in Sydney, Australia.

Our reportable operating segments have been determined as separately identifiable business units, and we measure segment earnings as operating earnings, defined as income before interest and income taxes.

   
Wholesale
Leathercraft
   
Retail
Leathercraft
   
Int’l
Leathercraft
   
Discontinued
Operations
   
Total
 
For the quarter ended September 30, 2011
                             
Net sales
  $ 6,150,138     $ 8,744,446     $ 490,837           $ 15,385,421  
Gross profit
    3,733,345       5,178,788       326,145             9,238,278  
Operating earnings
    296,824       811,347       113,666             1,221,837  
Interest (expense)
    (61,550 )     -       -             (61,550 )
Other income (expense), net
    175,715       (1,577 )     2,236             176,374  
Income before income taxes
    410,989       809,770       115,902             1,336,661  
                                       
     Depreciation and amortization
    216,958       42,836       2,134             261,928  
     Fixed asset additions
    239,477       114,200       191,613             545,290  
     Total assets
  $ 32,903,869     $ 7,225,267     $ 2,043,348       -     $ 42,172,484  
                                         
For the quarter ended September 30, 2010
                                       
Net sales
  $ 6,012,932     $ 7,212,443     $ 414,818             $ 13,640,193  
Gross profit
    3,699,403       4,238,791       244,331               8,182,525  
Operating earnings
    510,256       518,718       46,882               1,075,856  
Interest (expense)
    (67,565 )     -       -               (67,565 )
Other income (expense), net
    60,634       (356 )     17,609               77,887  
Income before income taxes
    503,325       518,362       64,491               1,086,178  
                                         
     Depreciation and amortization
    204,097       33,294       4,565               241,956  
     Fixed asset additions
    205,409       22,985       -               228,394  
     Total assets
  $ 33,282,964     $ 6,328,371     $ 532,685       -     $ 40,144,020  

   
Wholesale
Leathercraft
   
Retail
Leathercraft
   
Int’l
Leathercraft
   
Discontinued
Operations
   
Total
 
For the nine months ended September 30, 2011
                             
Net sales
  $ 19,341,919     $ 26,327,904     $ 1,528,559           $ 47,198,382  
Gross profit
    11,781,622       15,829,914       996,844             28,608,380  
Operating earnings
    1,709,226       2,857,986       336,428             4,903,640  
Interest (expense)
    (185,685 )     -       -             (185,685 )
Other income (expense), net
    69,968       (7,613 )     19,420             81,775  
Income before income taxes
    1,593,509       2,850,373       355,848             4,799,730  
                                       
     Depreciation and amortization
    636,050       115,597       7,632             759,279  
     Fixed asset additions
    520,805       328,857       193,113             1,042,775  
     Total assets
  $ 32,903,869     $ 7,225,267     $ 2,043,348       -     $ 42,172,484  
                                         
For the nine months ended September 30, 2010
                                       
Net sales
  $ 18,849,015     $ 22,535,418     $ 1,195,120             $ 42,579,553  
Gross profit
    11,491,749       13,649,194       733,144               25,874,087  
Operating earnings
    1,667,718       2,210,932       177,885               4,056,535  
Interest expense
    (198,784 )     -       -               (198,784 )
Other income (expense), net
    157,590       (880 )     4,385               161,095  
Income before income taxes
    1,626,524       2,210,052       182,270               4,018,846  
                                         
     Depreciation and amortization
    603,712       98,329       11,325               713,366  
     Fixed asset additions
    902,858       60,364       -               963,222  
     Total assets
  $ 33,282,964     $ 6,328,371     $ 532,685       -     $ 40,144,020  

Net sales for geographic areas were as follows for the three and nine months ended September 30, 2011 and 2010:

Three months ended September 30,
 
2011
   
2010
 
United States
  $ 13,078,107     $ 11,681,130  
Canada
    1,560,808       1,300,564  
All other countries
    746,506       658,499  
    $ 15,385,421     $ 13,640,193  

Nine months ended September 30,
 
2011
   
2010
 
United States
  $ 40,056,351     $ 36,865,020  
Canada
    4,832,078       4,022,287  
All other countries
    2,309,953       1,692,246  
    $ 47,198,382     $ 42,579,553  

Geographic sales information is based on the location of the customer.  No single foreign country, except for Canada, accounted for any material amount of our consolidated net sales for the three or nine-month periods ended September 30, 2011 and 2010.  We do not have any significant long-lived assets outside of the United States.