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Note E - Business Segments
 9 Months Ended
Mar. 27, 2020
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 Three Quarters Ended
  
   
March 27, 2020
     March 29, 2019    
March 27, 2020
    
March 29, 2019
  
Net sales
                                
Manufacturing segment sales
   $
58,877
     $
71,374
     $
170,611
     $
211,273
  
Distribution segment sales
    
28,387
      
27,547
      
72,839
      
77,557
  
Inter/Intra segment elimination – manufacturing
    
(13,993
 )    
(16,272
 )    
(42,928
 )    
(45,953
 )
Inter/Intra segment elimination – distribution
    
(4,635
 )    
 (5,229
 )    
 (13,060
 )    
 (12,661
 )
    $
68,636
     $
77,420
     $
187,462
     $
230,216
  
Net (loss) income attributable to Twin Disc
                                
Manufacturing segment net (loss) income
   $
(26,859
 )   $
6,350
     $
(34,650
 )   $
21,509
  
Distribution segment net income
    
991
      
(498
 )    
2,925
      
935
  
Corporate and eliminations
    
638
      
 (1,292
 )    
 (6,332
 )    
 (10,950
 )
    $
(25,230
 )   $
4,560
     $
(38,057
 )   $
11,494
  
 
Assets
  
March 27, 2020
     June 30, 2019  
Manufacturing segment assets
   $
365,884
     $
384,612
  
Distribution segment assets
    
47,334
      
46,076
  
Corporate assets and elimination of intercompany assets
    
(112,058
 )    
 (83,818
 )
    $
301,160
     $
346,870
  
 
Disaggregated revenue:
 
The following table presents details deemed most relevant to the users of the financial statements for the quarters and
three
quarters ended
March 27, 2020
and
March 29, 2019.
 
Net sales by product group for the quarter ended
March 27, 2020
is summarized as follows:
 
                   
Elimination of
          
   
Manufacturing
    
Distribution
    
Intercompany Sales
    
Total
  
Industrial
   $
5,709
     $
1,760
     $
(619
 )   $
6,850
  
Land-based transmissions
    
15,185
      
9,051
      
(6,599
 )    
17,637
  
Marine and propulsion systems
    
37,968
      
15,817
      
(11,409
 )    
42,376
  
Other
    
15
      
1,759
      
(1
 )    
1,773
  
Total
   $
58,877
     $
28,387
     $
(18,628
 )   $
68,636
  
 
Net sales by product group for the quarter ended
March 29, 2019
is summarized as follows:
 
                   
Elimination of
          
   
Manufacturing
    
Distribution
    
Intercompany Sales
    
Total
  
Industrial
   $
8,149
     $
2,457
     $
(1,070
 )   $
9,536
  
Land-based transmissions
    
27,133
      
8,309
      
(8,538
 )    
26,904
  
Marine and propulsion systems
    
36,076
      
15,573
      
(11,908
 )    
39,741
  
Other
    
16
      
1,208
      
15
      
1,239
  
Total
   $
71,374
     $
27,547
     $
(21,501
 )   $
77,420
  
 
Net sales by product group for the
three
quarters ended
March 27, 2020
is summarized as follows:
 
                   
Elimination of
          
   
Manufacturing
    
Distribution
    
Intercompany Sales
    
Total
  
Industrial
   $
18,409
     $
4,712
     $
(2,183
 )   $
20,938
  
Land-based transmissions
    
49,159
      
20,769
      
(21,466
 )    
48,462
  
Marine and propulsion systems
    
102,988
      
43,445
      
(32,337
 )    
114,096
  
Other
    
55
      
3,913
      
(2
 )    
3,966
  
Total
   $
170,611
     $
72,839
     $
(55,988
 )   $
187,462
  
 
Net sales by product group for the
three
quarters ended
March 29, 2019
is summarized as follows:
 
                   
Elimination of
          
   
Manufacturing
    
Distribution
    
Intercompany Sales
    
Total
  
Industrial
   $
22,883
     $
6,434
     $
(3,619
 )   $
25,698
  
Land-based transmissions
    
86,876
      
20,765
      
(21,322
 )    
86,319
  
Marine and propulsion systems
    
101,464
      
46,037
      
(33,629
 )    
113,872
  
Other
    
50
      
4,321
      
(44
 )    
4,327
  
Total
   $
211,273
     $
77,557
     $
(58,614
 )   $
230,216