Note 15 - Operating Data

12 Months Ended

Jun. 30, 2015

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

15. OPERATING DATA

The Company believes it has no significant concentration of credit risk as of June 30, 2015. Trade receivables are dispersed among a large number of retailers, distributors and industrial accounts in many countries, with none exceeding 10% of consolidated sales.

The Company is engaged in the single business segment of producing and marketing industrial, professional and consumer products. It manufactures over 5,000 tools, including precision measuring tools, tape measures, gages and saw blades. Operating segments are identified as components of an enterprise about which separate discrete financial information is used by the chief operating decision maker in determining how to allocate assets and assess performance of the Company.

The Company has (and is managed through) nine manufacturing plants, which are in Jedburgh, Scotland, Itu, Brazil, Athol, MA, Cleveland, OH, Mt. Airy, NC, Suzhou, China, Waite Park, MN, Laguna Hills, CA, and Columbus, GA. Internal operating statements used by the chief operating decision maker (the CEO) are prepared on the basis of the operating results of each of these units, and the Company believes these reporting units meet the aggregation criteria as stated in ASC 280 Segment Reporting.

The Company has concluded that its principal operations in North America, Scotland and Brazil have similar economic characteristics and therefore similar long-term financial prospects because they operate in worldwide markets, produce and market the same or similar finished products in the same way, generate comparable gross margins, have comparable return on equity, and sell primarily through distribution as opposed to directly to the end user of the product.  Because the units operate in different countries, the economic climate in each country may affect the short-term results of each unit differently; however, over the long run, the units in general are expected to operate similarly and generate similar returns.

Other reporting unit similarities include:

a.   All the Company’s units produce tools and related products used primarily by the metal-working and construction trades.  These include rules and tape measures, levels, dial indicators, band saw and hole saw blades, gage blocks, ground flat stock, granite surface plates, micrometers and calipers, etc.  All the Company’s products are included in a single catalog regardless of where manufactured.

b.   The production processes for all products (regardless of where manufactured) are the same or similar in that they use metal or granite as a raw material.

c.   The Company’s products are sold from its manufacturing units through a customer base of resellers, primarily industrial distributors.

d.   The Company and its individual units are not materially affected by the regulatory environment.

For these reasons, the Company believes it is appropriate to report on the basis of one reporting segment.

The Company’s operations are primarily in North America, Brazil the United Kingdom and China. Geographic information about the Company’s sales and long-lived assets are as follows (in thousands):

	2015			2014			2013
Net Sales
United States	$	147,589		$	143,803		$	133,129
Brazil		70,629			80,794			86,122
United Kingdom		29,789			31,717			29,260
China		22,385			22,663			17,882
North America (other than U.S.)		11,555			12,062			12,344
Eliminations and other		(40,397	)		(43,905	)		(34,940	)
Total	$	241,550		$	247,134		$	243,797
Long-lived Assets
United States	$	58,185		$	61,930		$	77,198
Brazil		8,154			12,699			11,044
United Kingdom		5,211			5,779			4,527
China		3,347			3,558			3,460
North America (other than U.S.)		360			387			449
Eliminations and other		3,602			188			168
Total	$	78,859		$	84,541		$	96,846