Note E - Business Segments

3 Months Ended

Sep. 30, 2016

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, 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 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 earnings.

Information about the Company’s segments is summarized as follows:

	For the Quarter Ended
	September 30, 2016			September 25, 2015
Net sales
Manufacturing segment sales	$	30,499		$	29,057
Distribution segment sales		15,395			20,724
Inter/Intra segment elimination - manufacturing		(8,126	)		(8,477	)
Inter/Intra segment elimination – distribution		(1,933	)		(3,931	)
	$	35,835		$	37,373
Net loss attributable to Twin Disc
Manufacturing segment net loss	$	(1,420	)	$	(2,847	)
Distribution segment net earnings		271			553
Corporate and eliminations		(1,547	)		(2,029	)
	$	(2,696	)	$	(4,323	)

Assets	September 30, 2016			June 30, 2016
Manufacturing segment assets	$	222,629		$	221,590
Distribution segment assets		51,381			52,719
Corporate assets and elimination of intercompany assets		(61,254	)		(60,387	)
	$	212,756		$	213,922