Note 12 - Segment Information

12 Months Ended

Dec. 31, 2016

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

12.

Segment Information

The Company reports net revenues from operating income by reportable segment. Reportable segments are components of the Company for which separate financial information is available that is evaluated on a regular basis by the chief operating decision maker in deciding how to allocate resources and in assessing performance.

The Company provides similar merchandising and marketing services throughout the world, operating within

two

reportable segments, its Domestic Division and its International Division. The Company uses those divisions to improve its administration and operational and strategic focuses, and it tracks and reports certain financial information separately for each of those divisions. The Company measures the performance of its Domestic and International Divisions and subsidiaries using the same metrics. The primary measurement utilized by management is operating profits, historically the key indicator of long-term growth and profitability, as the Company is focused on reinvesting the operating profits of each of its international subsidiaries back into its local markets in an effort to improve market share and continued expansion efforts.

The accounting policies of each of the reportable segments are the same as those described in the Summary of Significant Accounting Policies. Management evaluates performance as follows (in thousands):

 

	Year Ended December 31,
	2016			2015
Revenue, net:
United States	$	44,979		$	43,612
International		89,345			75,667
Total revenue	$	134,324		$	119,279
Operating (loss) income:
United States	$	(53	)	$	609
International		2,255			2,656
Total operating income	$	2,202		$	3,265
Interest expense:
United States	$	130		$	92
International		3			122
Total interest expense	$	133		$	214
Other income, net:
United States	$	–		$	–
International		(128	)		(243	)
Total other income, net	$	(128	)	$	(243	)
Income (loss) before income tax expense:
United States	$	(183	)	$	517
International		2,380			2,777
Total income before income tax expense	$	2,197		$	3,294

Income (benefit) tax expense:
United States	$	(428	)	$	(65	)
International		869			884
Total income tax expense	$	441		$	819
Net income:
United States	$	245		$	582
International		1,511			1,893
Total net income	$	1,756		$	2,475

Net Income attributable to non-controlling interest:
United States	$	(182	)	$	(195	)
International		(1,401	)		(1,388	)
Total net income attributable to non-controlling interest	$	(1,583	)	$	(1,583	)
Net income attributable to SPAR Group, Inc.:
United States	$	63		$	387
International		110			505
Total net income attributable to SPAR Group, Inc.	$	173		$	892
Depreciation and amortization:
United States	$	1,356		$	1,350
International		744			555
Total depreciation and amortization	$	2,100		$	1,905
Capital expenditures:
United States	$	991		$	1,118
International		564			457
Total capital expenditures	$	1,555		$	1,575

Note: There were

no

inter-company sales for

2016

or

2015.

	December 31,
	2016		2015
Assets:
United States	$	24,578	$	21,799
International		32,662		21,607
Total assets	$	57,240	$	43,406

Geographic Data

(in thousands)

	Year Ended December 31,
	201 6					201 5
Net international revenues:			% of consolidated net revenue					% of consolidated net revenue
South Africa	$	21,299		15.9	%	$	20,341		17.1	%
Mexico		20,809		15.5			17,616		14.8
China		12,290		9.1			14,755		12.4
Brazil		11,688		8.7			–		–
Japan		6,919		5.2			5,473		4.6
Canada		6,725		5.0			6,374		5.3
India		5,865		4.4			6,372		5.3
Australia		3,435		2.6			4,297		3.6
Turkey		315		0.2			439		0.4
Total international revenue	$	89,345		66.6	%	$	75,667		63.5	%

	Years Ended December 31
	20 16		20 15
Long lived assets:
United States	$	10,983	$	10,147
International		3,494		3,148
Total long lived assets	$	14,477	$	13,295