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Note 7 - Segment Information
 9 Months Ended
Sep. 30, 2015
Notes to Financial Statements  
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 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, one in Sydney, Australia, and one in Jerez, Spain. 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
September
30, 201
5
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net sales
   $ 6,114,793     $ 12,328,599     $ 912,545     $ 19,355,937  
Gross profit
     4,180,181       7,118,111       534,405       11,832,697  
Operating earnings
    682,461       1,122,222       55,068       1,859,751  
Interest (expense)
     (228,235 )     -       -       (228,235 )
Other income (expense), net
     9,408       -       28,912       38,320  
Income before income taxes
     463,634       1,122,222       83,980       1,669,836  
                                 
Depreciation and amortization
     200,147       141,582       11,931       353,660  
Fixed asset additions
     122,549       124,502       3,816       250,867  
Total assets
   $ 40,209,669     $ 18,113,696     $ 4,277,115     $ 62,600,480  
                                 
For the quarter ended September 30, 201
4
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net sales
   $ 6,294,745     $ 12,068,832     $ 1,053,657     $ 19,417,234  
Gross profit
     4,283,949       7,167,486       723,274       12,174,709  
Operating earnings
    1,000,329       1,270,884       185,714       2,456,927  
Interest expense
     (63,684 )     -       -       (63,684 )
Other income (expense), net
     19,556       -       17,969       37,525  
Income before income taxes
     956,201       1,270,884       203,683       2,430,768  
                                 
Depreciation and amortization
     241,264       114,516       17,058       372,838  
Fixed asset additions
     489,660       279,829       893       770,382  
Total assets
   $ 44,943,519     $ 16,439,542     $ 2,578,444     $ 63,961,505  
 
 
 
Wholesale Leathercraft
 
 
Retail Leathercraft
 
 
Int’l
Leathercraft
 
 
Total
 
For the
nine
months ended
September
30, 201
5
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net sales
   $ 19,234,375     $ 37,970,423     $ 2,713,431     $ 59,918,229  
Gross profit
     13,076,723       22,512,736       1,640,547       37,230,006  
Operating earnings
    2,602,868       3,862,343       117,263       6,582,474  
Interest (expense)
     (307,160 )     -       -       (307,160 )
Other income (expense), net
     46,570       -       21,500       68,070  
Income before income taxes
     2,342,278       3,862,343       138,763       6,343,384  
                                 
Depreciation and amortization
     714,401       412,179       36,536       1,163,116  
Fixed asset additions
     706,995       608,817       23,286       1,339,098  
Total assets
   $ 40,209,669     $ 18,113,696     $ 4,277,115     $ 62,600,480  
                                 
For the
nine
months ended
September
30, 201
4
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net sales
   $ 19,576,180     $ 36,226,810     $ 3,156,317     $ 58,959,307  
Gross profit
     13,588,209       21,973,975       2,107,854       37,670,038  
Operating earnings
    3,479,908       4,171,500       428,459       8,079,867  
Interest expense
     (154,367 )     -       -       (154,367 )
Other income (expense), net
     44,730       -       (527 )     44,203  
Income before income taxes
     3,370,271       4,171,500       427,932       7,969,703  
                                 
Depreciation and amortization
     705,902       332,276       50,580       1,088,758  
Fixed asset additions
     886,719       781,795       50,951       1,719,465  
Total assets
   $ 44,943,519     $ 16,439,542     $ 2,578,444     $ 63,961,505  
 
Net sales for geographic areas were as follows for the three and nine months ended September 30, 2015 and 2014:
 
Three months ended
September
30,
 
20
15
 
 
20
14
 
United States
   $ 16,558,873     $ 16,219,193  
Canada
     1,693,958       1,908,966  
All other countries
     1,103,106       1,289,075  
    $ 19,355,937     $ 19,417,234  
 
Nine
months ended
September
30,
 
20
15
 
 
20
14
 
United States
   $ 51,144,236     $ 49,298,035  
Canada
     5,432,724       5,835,776  
All other countries
     3,341,269       3,825,496  
    $ 59,918,229     $ 58,959,307  
 
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 and nine-month periods ended September 30, 2015 and 2014. We do not have any significant long-lived assets outside of the United States.