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Note 8 - Segment Information
 3 Months Ended
Mar. 31, 2012
Segment Reporting Disclosure [Text Block]
8.  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.  We have three stores operating in this segment:  one in Northampton, United Kingdom which opened in February 2008, one in Sydney, Australia which opened in October 2011, and one in Jerez, Spain, which opened in January 2012.  These stores carry the same products as our North American stores.

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
   
Total
 
For the quarter ended March 31, 2012
                       
Net sales
  $ 7,152,417     $ 10,282,814     $ 741,847     $ 18,177,078  
Gross profit
    4,529,683       6,372,144       463,806       11,365,633  
Operating earnings
    1,232,852       1,358,725       (37,402 )     2,554,175  
Interest expense
    58,392       -       -       58,392  
Other, net
    (16,048 )     (13 )     (3,753 )     (19,814 )
Income before income taxes
    1,190,508       1,358,738       (33,649 )     2,515,597  
                                 
     Depreciation and amortization
    203,690       43,451       12,395       259,536  
     Fixed asset additions
    31,626       54,754       53,461       139,841  
     Total assets
  $ 34,422,385     $ 8,509,506     $ 2,543,725     $ 45,475,616  
                                 
For the quarter ended March 31, 2011
                               
Net sales
  $ 6,720,709     $ 8,649,152     $ 509,179     $ 15,879,040  
Gross profit
    3,941,571       5,268,048       315,229       9,524,848  
Operating earnings
    808,314       1,004,042       100,132       1,912,488  
Interest expense
    62,003       -       -       62,003  
Other, net
    64,606       1,741       (17,515 )     48,832  
Income before income taxes
    681,705       1,002,301       117,647       1,801,653  
                                 
     Depreciation and amortization
    208,188       34,325       2,491       245,004  
     Fixed asset additions
    107,414       60,272       1,500       169,186  
     Total assets
  $ 32,970,795     $ 6,475,780     $ 1,131,676     $ 40,578,251  

Net sales for geographic areas were as follows for the three months ended March 31, 2012 and 2011:

   
2012
   
2011
 
United States
  $ 15,527,455     $ 13,518,932  
Canada
    1,719,840       1,585,524  
All other countries
    929,783       774,584  
    $ 18,177,078     $ 15,879,040  

13

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-month periods ended March 31, 2012 and 2011.  We do not have any significant long-lived assets outside of the United States.