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Segment Information
6 Months Ended
Dec. 30, 2018
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 30,
2018
 
December 31,
2017
 
December 30,
2018
 
December 31,
2017
NET SALES:
 
 
 
 
 
 
 
 
Engines
 
$
272,018

 
$
243,505

 
$
391,108

 
$
406,252

Products
 
254,627

 
222,080

 
427,670

 
408,676

Inter-Segment Eliminations
 
(21,183
)
 
(19,149
)
 
(34,319
)
 
(39,397
)
Total*
 
$
505,462

 
$
446,436

 
$
784,459

 
$
775,531

* International sales included in net sales based on product shipment destination
 
$
148,125

 
$
157,248

 
$
236,651

 
$
271,885

GROSS PROFIT:
 
 
 
 
 
 
 
 
Engines
 
$
55,614

 
$
55,429

 
$
71,551

 
$
86,648

Products
 
37,577

 
37,090

 
65,213

 
72,797

Inter-Segment Eliminations
 
(734
)
 
347

 
(553
)
 
(314
)
Total
 
$
92,457

 
$
92,866

 
$
136,211

 
$
159,131

SEGMENT INCOME (LOSS):
 
 
 
 
 
 
 
 
Engines
 
$
4,658

 
$
8,722

 
$
(39,593
)
 
$
(10,894
)
Products
 
4,411

 
8,320

 
(5,651
)
 
12,003

Inter-Segment Eliminations
 
(734
)
 
347

 
(553
)
 
(314
)
Total
 
$
8,335

 
$
17,389

 
$
(45,797
)
 
$
795

 
 
 
 
 
 
 
 
 


The following supplemental data is presented for informational purposes.

Pre-tax business optimization and litigation settlement charges included in gross profit were as follows (in thousands):
 
 
Three Months Ended
 
Six Months Ended
 
 
December 30,
2018
 
December 31,
2017
 
December 30,
2018
 
December 31,
2017
Engines
 
$
665

 
$
703

 
$
1,088

 
$
1,128

Products
 
834

 
754

 
3,713

 
1,522

Total
 
$
1,499

 
$
1,457

 
$
4,801

 
$
2,650


    
Pre-tax business optimization charges, bad debt expense related to a major retailer bankruptcy, litigation settlement charge, and acquisition integration activities included in segment income (loss) were as follows (in thousands):
 
 
Three Months Ended
 
Six Months Ended
 
 
December 30,
2018
 
December 31,
2017
 
December 30,
2018
 
December 31,
2017
Engines
 
$
7,508

 
$
2,016

 
$
21,871

 
$
4,347

Products
 
3,405

 
1,044

 
15,169

 
3,950

Total
 
$
10,913

 
$
3,060

 
$
37,040

 
$
8,297