Segment Information

3 Months Ended

Oct. 01, 2017

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
	October 1, 2017			October 2, 2016
NET SALES:
Engines	$	162,746		$	154,498
Products	186,597			150,795
Inter-Segment Eliminations	(20,249		)	(18,496		)
Total*	$	329,094		$	286,797
* International sales included in net sales based on product shipment destination	$	114,637		$	109,887
GROSS PROFIT:
Engines	$	31,219		$	30,985
Products	35,707			22,951
Inter-Segment Eliminations	(661		)	(1,415		)
Total	$	66,265		$	52,521
SEGMENT INCOME (LOSS):
Engines	$	(19,832	)	$	(11,654	)
Products	3,658			(3,245		)
Inter-Segment Eliminations	(661		)	(1,415		)
Total	$	(16,835	)	$	(16,314	)

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



	Three Months Ended
	October 1, 2017		October 2, 2016
Engines	$	425	$	—
Products	768		—
Total	$	1,193	$	—

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



	Three Months Ended
	October 1, 2017		October 2, 2016
Engines	$	2,331	$	—
Products	2,906		—
Total	$	5,237	$	—