BUSINESS SEGMENTS

3 Months Ended

May 31, 2021

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

Note 8 – BUSINESS SEGMENTS

We have two reportable segments: Usborne Books & More (“UBAM”) and Publishing. These reportable segments are business units that offer different methods of distribution to different types of customers. They are managed separately based on the fundamental differences in their operations. Our UBAM segment markets its products through a network of independent sales consultants using a combination of internet sales, direct sales, home shows and book fairs. Our Publishing segment markets its products to retail accounts, which include book, school supply, toy and gift stores and museums, trade and specialty wholesalers, through commissioned sales representatives and our internal tele-sales group.

The accounting policies of the segments are the same as those of the rest of the Company. We evaluate segment performance based on earnings before income taxes of the segments, which is defined as segment net revenues reduced by cost of sales and direct expenses. Corporate expenses, depreciation, interest expense and income taxes are not allocated to the segments but are listed in the “Other” row below. Corporate expenses include the executive department, accounting department, information services department, general office management, warehouse operations and building facilities management. Our assets and liabilities are not allocated on a segment basis.

Information by reporting segment for the three-month periods ended May 31, 2021 and 2020, are as follows:

NET REVENUES
	Three Months Ended May 31,
	2021		2020
UBAM	$	37,616,900	$	36,926,200
Publishing		3,191,000		1,365,500
Total	$	40,807,900	$	38,291,700

EARNINGS (LOSS) BEFORE INCOME TAXES
	Three Months Ended May 31,
	2021			2020
UBAM	$	7,861,200		$	5,827,100
Publishing		861,600			346,600
Other		(4,062,200	)		(3,529,800	)
Total	$	4,660,600		$	2,643,900