Segment Information

6 Months Ended

Jan. 01, 2017

Segment Reporting [Abstract]

Segment Information

Segment Information

The Company aggregates operating segments that have similar economic characteristics, products, production processes, types or classes of customers and distribution methods into reportable segments. The Company concluded that it operates two reportable segments: Engines and Products. 

The Company uses “segment income (loss)” as the primary measure to evaluate operating performance and allocate capital resources for the Engines and Products Segments. Prior to the third quarter of fiscal 2016, segment income (loss) is defined as income (loss) from operations plus equity in earnings of unconsolidated affiliates. Beginning with the third quarter of fiscal 2016, segment income (loss) is equal to operating income (loss).

Summarized segment data is as follows (in thousands):

	Three Months Ended						Six Months Ended
	January 1, 2017			December 27, 2015			January 1, 2017			December 27, 2015
NET SALES:
Engines	$	260,737		$	262,007		$	415,235		$	412,090
Products	190,701			172,497			341,497			335,038
Inter-Segment Eliminations	(23,202		)	(21,125		)	(41,698		)	(44,291		)
Total*	$	428,236		$	413,379		$	715,034		$	702,837
* International sales included in net sales based on product shipment destination	$	158,727		$	152,676		$	268,614		$	244,216
GROSS PROFIT:
Engines	$	61,573		$	65,635		$	92,559		$	89,411
Products	33,178			26,744			56,129			53,888
Inter-Segment Eliminations	655			(683		)	(760		)	(1,891		)
Total	$	95,406		$	91,696		$	147,928		$	141,408
SEGMENT INCOME (LOSS):
Engines	$	17,922		$	20,782		$	6,269		$	28
Products	6,808			417			3,563			479
Inter-Segment Eliminations	655			(683		)	(760		)	(1,891		)
Total	$	25,385		$	20,516		$	9,072		$	(1,384	)
Reconciliation from Segment Income (Loss) to Income (Loss) Before Income Taxes:
Equity in Earnings of Unconsolidated Affiliates	—			1,751			—			3,187
Income (Loss) from Operations	$	25,385		$	18,765		$	9,072		$	(4,571	)
INTEREST EXPENSE	(5,133		)	(5,013		)	(9,638		)	(9,549		)
OTHER INCOME, Net	381			2,383			836			3,838
Income (Loss) Before Income Taxes	20,633			16,135			270			(10,282		)
PROVISION (CREDIT) FOR INCOME TAXES	5,382			3,575			(833		)	(4,671		)
Net Income (Loss)	$	15,251		$	12,560		$	1,103		$	(5,611	)

Pre-tax restructuring charges and acquisition-related charges included in gross profit were as follows (in thousands):

	Three Months Ended				Six Months Ended
	January 1, 2017		December 27, 2015		January 1, 2017		December 27, 2015
Engines	$	—	$	—	$	—	$	464
Products	—		2,647		—		4,892
Total	$	—	$	2,647	$	—	$	5,356

Pre-tax restructuring charges, acquisition-related charges, and litigation charges included in segment income (loss) were as follows (in thousands):

	Three Months Ended				Six Months Ended
	January 1, 2017		December 27, 2015		January 1, 2017		December 27, 2015
Engines	$	—	$	1,975	$	—	$	4,179
Products	—		3,019		—		5,314
Total	$	—	$	4,994	$	—	$	9,493