Segment Information

9 Months Ended

Apr. 02, 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						Nine Months Ended
	April 2, 2017			March 27, 2016			April 2, 2017			March 27, 2016
NET SALES:
Engines	$	391,063		$	415,680		$	806,298		$	827,770
Products	233,510			220,845			575,007			555,883
Inter-Segment Eliminations	(27,608		)	(32,775		)	(69,307		)	(77,066		)
Total*	$	596,965		$	603,750		$	1,311,998		$	1,306,587
* International sales included in net sales based on product shipment destination	$	171,565		$	160,227		$	440,179		$	404,493
GROSS PROFIT:
Engines	$	98,814		$	99,371		$	191,373		$	188,783
Products	34,946			27,527			91,075			81,414
Inter-Segment Eliminations	1,011			197			251			(1,694		)
Total	$	134,771		$	127,095		$	282,699		$	268,503
SEGMENT INCOME (LOSS):
Engines	$	50,946		$	52,166		$	57,216		$	52,195
Products	5,614			(7,246		)	9,177			(6,767		)
Inter-Segment Eliminations	1,011			197			251			(1,694		)
Total	$	57,571		$	45,117		$	66,644		$	43,734
Reconciliation from Segment Income (Loss) to Income Before Income Taxes:
Equity in Earnings of Unconsolidated Affiliates	—			—			—			3,187
Income from Operations	$	57,571		$	45,117		$	66,644		$	40,547
INTEREST EXPENSE	(5,521		)	(5,593		)	(15,159		)	(15,142		)
OTHER INCOME, Net	844			511			1,679			4,348
Income Before Income Taxes	52,894			40,035			53,164			29,753
PROVISION FOR INCOME TAXES	17,075			13,212			16,242			8,541
Net Income	$	35,819		$	26,823		$	36,922		$	21,212

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

	Three Months Ended				Nine Months Ended
	April 2, 2017		March 27, 2016		April 2, 2017		March 27, 2016
Engines	$	—	$	—	$	—	$	464
Products	—		580		—		5,472
Total	$	—	$	580	$	—	$	5,936

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

	Three Months Ended				Nine Months Ended
	April 2, 2017		March 27, 2016		April 2, 2017		March 27, 2016
Engines	$	—	$	—	$	—	$	4,179
Products	—		8,375		—		13,689
Total	$	—	$	8,375	$	—	$	17,868