Note E - Business Segments

3 Months Ended

Sep. 24, 2021

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.  These segment structures reflect 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
	September 24, 2021			September 25, 2020
Net sales
Manufacturing segment sales	$	41,594		$	38,495
Distribution segment sales		20,534			22,506
Inter/Intra segment elimination – manufacturing		(10,942	)		(10,738	)
Inter/Intra segment elimination – distribution		(3,425	)		(4,084	)
	$	47,761		$	46,179
Net income (loss) attributable to Twin Disc
Manufacturing segment net income (loss)	$	4,832		$	(2,662	)
Distribution segment net income		483			1,155
Corporate and eliminations		(3,395	)		(2,472	)
	$	1,920		$	(3,979	)

Assets	September 24, 2021			June 30, 2021
Manufacturing segment assets	$	366,338		$	364,379
Distribution segment assets		49,914			46,956
Corporate assets and elimination of intercompany assets		(140,005	)		(135,922	)
	$	276,247		$	275,413

Disaggregated revenue:

The following table presents details deemed most relevant to the users of the financial statements for the quarters ended September 24, 2021 and September 25, 2020.

Net sales by product group for the quarter ended September 24, 2021 is summarized as follows:

					Elimination of
	Manufacturing		Distribution		Intercompany Sales			Total
Industrial	$	5,907	$	1,118	$	(893	)	$	6,132
Land-based transmissions		11,384		5,105		(4,247	)		12,242
Marine and propulsion systems		24,285		11,562		(9,214	)		26,633
Other		18		2,749		(13	)		2,754
Total	$	41,594	$	20,534	$	(14,367	)	$	47,761

Net sales by product group for the quarter ended September 25, 2020 is summarized as follows:

					Elimination of
	Manufacturing		Distribution		Intercompany Sales			Total
Industrial	$	4,806	$	1,370	$	(753	)	$	5,423
Land-based transmissions		10,494		6,067		(4,302	)		12,259
Marine and propulsion systems		23,179		12,759		(9,762	)		26,176
Other		16		2,310		(5	)		2,321
Total	$	38,495	$	22,506	$	(14,822	)	$	46,179