Financial Performance - Net revenue for the Sporting Goods segment decreased by 0.9% in 2018, totaling $175.78 million compared to $177.33 million in 2017[113]. - Operating income for the Sporting Goods segment was $13.999 million in 2018, down from $15.6 million in 2017, reflecting a decrease in operating income as a percentage of net revenue to 8.0%[114]. - Gross margin improved to 25.6% in 2018 from 25.2% in 2017, primarily due to a favorable product mix and increased sales in archery[108]. - Selling, general and administrative expenses (SG&A) increased by 4.4% to $29.8 million in 2018, representing 16.9% of sales compared to 16.1% in 2017[109]. - Other income surged to $13.1 million in 2018, significantly up from $1.7 million in 2017, largely due to a $13.0 million gain from the sale of a 50% owned investment[110]. Tax and Debt Management - The effective tax rate increased to 22.7% in 2018 from 9.4% in 2017, influenced by state income taxes and adjustments related to the 2017 U.S. Tax Reform[112]. - Total debt was reduced to zero by the end of 2018, down from $23.1 million in 2017, following the sale of the investment in Stiga[116]. Liquidity and Capital Expenditures - The current ratio improved to 5.3 in 2018 from 4.1 in 2017, indicating enhanced liquidity[115]. - The company estimates capital expenditures for 2019 to be approximately $3.0 million, supported by projected cash flows from operations[120]. - The Company estimates capital expenditures for 2019 to be approximately $3.0 million[138]. Strategic Initiatives - The company plans to pursue new product introductions and strategic acquisitions to drive revenue growth and expand its market presence[102]. - The Company completed the sale of its 50% interest for $33.7 million on May 17, 2018, resulting in a gain on sale of $13.0 million[136]. Asset Management - The Company recorded total goodwill of $26.4 million as of December 29, 2018, all allocated to the Escalade Sports reporting unit, with fair value exceeding carrying value[134]. - The Company evaluates the recoverability of long-lived assets whenever events indicate that carrying amounts may not be recoverable[135]. - The Company uses a combination of market and income approaches to establish fair value for goodwill impairment testing[133]. Investment Income - The Company reported proportionate share of net income from non-marketable equity investments of $0.1 million in 2018, $1.6 million in 2017, and $1.7 million in 2016[136]. - Total cash dividends received from equity investments were $2,323 thousand in 2018, $2,168 thousand in 2017, and $1,060 thousand in 2016[136]. Expense Management - The Company is working on reducing expenses and improving manufacturing technologies to manage inflationary pressures[137]. - The Company provides an allowance for doubtful accounts based on historical collection information and economic conditions[129]. - Customer allowances are accounted for as a reduction to gross sales and are reviewed on an ongoing basis[130].