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Note E - Business Segments
 6 Months Ended
Dec. 27, 2019
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]
E
.
Business Segments
 
The Company and its subsidiaries are engaged in the manufacture and sale of marine and heavy-duty off-highway power transmission equipment. Principal products include marine transmissions, azimuth drives, surface drives, propellers and boat management systems, as well as power-shift transmissions, hydraulic torque converters, power take-offs, industrial clutches and controls systems. The Company sells to both domestic and foreign customers in a variety of market areas, principally pleasure craft, commercial and military marine markets, as well as in the energy and natural resources, government and industrial markets. The Company's worldwide sales to both domestic and foreign customers are transacted through a direct sales force and a distributor network.
 
The Company has
two
reportable segments: manufacturing and distribution.  Its segment structure reflects the way management makes operating decisions and manages the growth and profitability of the business. It also corresponds with management’s approach of allocating resources and assessing the performance of its segments. The accounting practices of the segments are the same as those described in the summary of significant accounting policies. Transfers among segments are at established inter-company selling prices.  Management evaluates the performance of its segments based on net income.
 
Information about the Company’s segments is summarized as follows:
 
   
For the Quarter Ended
    
For the Two Quarters Ended
  
   
December 27, 2019
    
December 28, 2018
    
December 27, 2019
    
December 28, 2018
  
Net sales
                                
Manufacturing segment sales
   $
57,173
     $
70,986
     $
111,734
     $
139,899
  
Distribution segment sales
    
22,025
      
27,090
      
44,452
      
50,010
  
Inter/Intra segment elimination – manufacturing
    
(15,105
 )    
(14,931
 )    
(28,935
 )    
(29,681
 )
Inter/Intra segment elimination – distribution
    
(4,557
 )    
(5,038
 )    
(8,425
 )    
(7,432
 )
    $
59,536
     $
78,107
     $
118,826
     $
152,796
  
Net (loss) income attributable to Twin Disc
                                
Manufacturing segment net (loss) income
   $
(2,936
 )   $
7,924
     $
(7,791
 )   $
15,159
  
Distribution segment net income
    
842
      
569
      
1,934
      
1,434
  
Corporate and eliminations
    
(4,422
 )    
(4,420
 )    
(6,970
 )    
(9,658
 )
    $
(6,516
 )   $
4,073
     $
(12,827
 )   $
6,935
  
 
   
December 27, 2019
    
June 30, 2019
    
Assets
                  
Manufacturing segment assets
   $
380,275
     $
384,612
    
Distribution segment assets
    
51,277
      
46,076
    
Corporate assets and elimination of intercompany assets
    
(88,271
 )    
(83,818
 )  
    $
343,281
     $
346,870
    
 
Disaggregated revenue:
 
The following table presents details deemed most relevant to the users of the financial statements for the quarters and
two
quarters ended
December 27, 2019
and
December 28, 2018.
 
Net sales by product group for the quarter ended
December 27, 2019
is summarized as follows:
 
                   
Elimination of
          
   
Manufacturing
    
Distribution
    
Intercompany Sales
    
Total
  
Industrial
   $
5,892
     $
1,484
     $
(751
 )   $
6,625
  
Land-based transmissions
    
16,559
      
6,238
      
(7,492
 )    
15,305
  
Marine and propulsion systems
    
34,700
      
13,418
      
(11,419
 )    
36,699
  
Other
    
22
      
885
      
-
      
907
  
Total
   $
57,173
     $
22,025
     $
(19,662
 )   $
59,536
  
 
Net sales by product group for the quarter ended
December 28, 2018
is summarized as follows:
 
                   
Elimination of
          
   
Manufacturing
    
Distribution
    
Intercompany Sales
    
Total
  
Industrial
   $
8,253
     $
2,580
     $
(1,717
 )   $
9,116
  
Land-based transmissions
    
30,309
      
6,846
      
(7,377
 )    
29,778
  
Marine and propulsion systems
    
32,412
      
16,307
      
(10,863
 )    
37,856
  
Other
    
12
      
1,357
      
(12
 )    
1,357
  
Total
   $
70,986
     $
27,090
     $
(19,969
 )   $
78,107
  
 
Net sales by product group for the
two
quarters ended
December 27, 2019
is summarized as follows:
 
                   
Elimination of
          
   
Manufacturing
    
Distribution
    
Intercompany Sales
    
Total
  
Industrial
   $
12,700
     $
2,952
     $
(1,564
 )   $
14,088
  
Land-based transmissions
    
33,973
      
11,718
      
(14,867
 )    
30,824
  
Marine and propulsion systems
    
65,020
      
27,628
      
(20,928
 )    
71,720
  
Other
    
041
      
2,154
      
(1
 )    
2,194
  
Total
   $
111,734
     $
44,452
     $
(37,360
 )   $
118,826
  
 
Net sales by product group for the
two
quarters ended
December 28, 2018
is summarized as follows:
 
                   
Elimination of
          
   
Manufacturing
    
Distribution
    
Intercompany Sales
    
Total
  
Industrial
   $
14,734
     $
3,977
     $
(2,549
 )   $
16,162
  
Land-based transmissions
    
59,742
      
12,456
      
(12,784
 )    
59,414
  
Marine and propulsion systems
    
65,388
      
30,464
      
(21,721
 )    
74,131
  
Other
    
35
      
3,113
      
(59
 )    
3,089
  
Total
   $
139,899
     $
50,010
     $
(37,113
 )   $
152,796