Segment Information

6 Months Ended

Dec. 31, 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. For all periods presented, segment income (loss) is equal to income (loss) from operations. Summarized segment data is as follows (in thousands):

	Three Months Ended						Six Months Ended
	December 31, 2017			January 1, 2017			December 31, 2017			January 1, 2017
NET SALES:
Engines	$	243,505		$	260,737		$	406,252		$	415,235
Products	222,080			190,701			408,676			341,497
Inter-Segment Eliminations	(19,149		)	(23,202		)	(39,397		)	(41,698		)
Total*	$	446,436		$	428,236		$	775,531		$	715,034
* International sales included in net sales based on product shipment destination	$	157,248		$	158,727		$	271,885		$	268,614
GROSS PROFIT:
Engines	$	55,429		$	61,573		$	86,648		$	92,559
Products	37,090			33,178			72,797			56,129
Inter-Segment Eliminations	347			655			(314		)	(760		)
Total	$	92,866		$	95,406		$	159,131		$	147,928
SEGMENT INCOME (LOSS):
Engines	$	8,421		$	17,922		$	(11,437	)	$	6,269
Products	8,320			6,808			12,003			3,563
Inter-Segment Eliminations	347			655			(314		)	(760		)
Total	$	17,088		$	25,385		$	252		$	9,072

Pre-tax business optimization charges included in gross profit were as follows (in thousands):

	Three Months Ended				Six Months Ended
	December 31, 2017		January 1, 2017		December 31, 2017		January 1, 2017
Engines	$	703	$	—	$	1,128	$	—
Products	754		—		1,522		—
Total	$	1,457	$	—	$	2,650	$	—

Pre-tax business optimization charges included in segment income (loss) were as follows (in thousands):

	Three Months Ended				Six Months Ended
	December 31, 2017		January 1, 2017		December 31, 2017		January 1, 2017
Engines	$	2,016	$	—	$	4,347	$	—
Products	1,044		—		3,950		—
Total	$	3,060	$	—	$	8,297	$	—