Operating Segment and Geographic Information

12 Months Ended

Dec. 29, 2018

Segment Reporting Disclosure [Text Block]

Note 13 — Operating Segment and Geographic Information

The following table presents certain operating

segment

information.

In Thousands	2018			2017			2016

Sporting Goods
Net revenue	$	175,780		$	177,333		$	171,662
Operating income		13,999			15,600			15,731
Interest expense		427			975			802
Provision for taxes		3,739			6,134			6,173
Net income		9,869			8,626			8,774
Identifiable assets		142,490			130,388			125,780
Depreciation & amortization		3,857			3,910			5,244
Capital expenditures		2,818			2,745			2,653

All Other
Net revenue		—			—			—
Operating loss		(182	)		(1,000	)		(1,148	)
Interest expense (income)		—			(171	)		32
Provision (benefit) for taxes		2,261			(4,678	)		(2,124	)
Net income		10,573			5,435			2,719
Identifiable assets		7,037			25,717			24,981
Non-marketable equity investments (equity method)		—			20,278			19,030
Depreciation & amortization		—			—			—
Capital expenditures		—			—			—

Total
Net revenue		175,780			177,333			171,662
Operating income		13,817			14,600			14,583
Interest expense		427			804			834
Provision for taxes		6,000			1,456			4,049
Net income		20,442			14,061			11,493
Identifiable assets		149,527			156,105			150,761
Non-marketable equity investments (equity method)		—			20,278			19,030
Depreciation & amortization		3,857			3,910			5,244
Capital expenditures		2,818			2,745			2,653

Each operating segment is individually managed and has separate financial results that are reviewed by the Company’s management. There were no changes to the composition of segments in 2018. The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies.

The Sporting Goods segment consists of home entertainment products such as table tennis tables and accessories; basketball goals; pool tables and accessories; outdoor playsets; soccer and hockey tables; archery equipment and accessories; and fitness, arcade and darting products. Customers include retailers, dealers and wholesalers located throughout North America, Europe and the rest of the world.

All Other consist of general and administrative expenses not specifically related to the operating business segments and included investment income from equity investments.

Interest expense is allocated to operating segments based on working capital usage and the provision for taxes is allocated based on a combined federal and state statutory rate of 27.5% adjusted for actual taxes on foreign income. Permanent tax adjustments and timing differences are included in the all other segment.

Identifiable assets are principally those assets used in each segment. The assets in the all other segment are principally cash and cash equivalents; deferred tax assets; and investments.

During 2018, 2017 and 2016, the Company had one customer, Amazon.com, Inc., that accounted for approximately 19%, 18% and 13%, respectively of the Company’s revenues.

During 2018, 2017 and 2016 the Company had another customer, Dick’s Sporting Goods, which accounted for approximately 13%

, 17% and 18%, respectively, of the Company’s revenues.

As of December 29, 2018, the Company had approximately 14% and 24% of its total accounts receivable with Dick’s Sporting Goods and Amazon.com, Inc., respectively. As of December 30, 2017, the Company had approximately 22% and 25% of its total accounts receivable with Dick’s Sporting Goods and Amazon.com, Inc., respectively.

As of December 29, 2018, approximately 27 employees of the Company's labor force were covered by a collective bargaining agreement that expires May 1, 2021.

Raw materials for Escalade’s various product lines consist of wood, tempered glass, particle board, standard grades of steel and steel tubing, aluminum, engineering plastics, fiberglass and packaging materials. Escalade relies upon domestic, Mexico, and Asian suppliers for these materials and upon various Asian manufacturers for many of its products.

Net sales are attributed to country based on location of customer and are for continuing operations. Net sales by geographic region/country were as follows:

In Thousands	2018		2017		2016

North America	$	172,656	$	175,065	$	168,998
Europe		965		974		1,302
Other		2,159		1,294		1,362
	$	175,780	$	177,333	$	171,662

Identified assets by geographic region/country were as follows:

In Thousands	2018		2017		2016

North America	$	149,527	$	156,105	$	150,761
Europe		—		—		—
	$	149,527	$	156,105	$	150,761