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Note 7 - Segment Information
 3 Months Ended
Mar. 31, 2013
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 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, 2013
                       
Net sales
  $ 6,729,734     $ 11,559,861     $ 948,232     $ 19,237,827  
Gross profit
    4,165,155       7,161,228       604,446       11,930,829  
Income from operations
    1,012,965       1,514,839       93,056       2,620,860  
Interest expense
    56,094       -       -       56,094  
Other, net
    (14,493 )     (10 )     (12,236 )     (26,739 )
Income before income taxes
    971,364       1,514,849       105,292       2,591,505  
                                 
Depreciation and amortization
    191,533       57,429       14,140       263,102  
Fixed asset additions
    738,736       242,149       1,668       982,553  
Total assets
  $ 36,244,560     $ 10,474,588     $ 2,959,476     $ 49,678,624  
                                 
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  
Income from operations
    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  

Net sales for geographic areas were as follows for the three months ended March 31, 2013 and 2012:

   
2013
   
2012
 
United States
  $ 16,196,394     $ 15,527,455  
Canada
    1,919,723       1,719,840  
All other countries
    1,121,710       929,783  
    $ 19,237,827     $ 18,177,078  

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, 2013 and 2012.  We do not have any significant long-lived assets outside of the United States.