Segment Information

3 Months Ended

Sep. 29, 2019

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
	September 29, 2019			September 30, 2018
NET SALES:
Engines	$	133,354		$	119,090
Products	195,641			173,042
Inter-Segment Eliminations	(15,276		)	(13,135		)
Total*	$	313,719		$	278,997
* International sales included in net sales based on product shipment destination	$	102,616		$	88,526
GROSS PROFIT:
Engines	$	19,143		$	16,042
Products	24,818			27,556
Inter-Segment Eliminations	(714		)	156
Total	$	43,247		$	43,754
SEGMENT INCOME (LOSS):
Engines	$	(27,903	)	$	(44,408	)
Products	(5,610		)	(9,880		)
Inter-Segment Eliminations	(714		)	156
Total	$	(34,227	)	$	(54,132	)

The following supplemental data is presented for informational purposes.

Pre-tax business optimization and engine manufacturing consolidation project charges included in gross profit were as follows (in thousands):



	Three Months Ended
	September 29, 2019		September 30, 2018
Engines	$	4,988	$	423
Products	649		2,880
Total	$	5,637	$	3,303

Pre-tax business optimization charges, engine manufacturing consolidation project 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
	September 29, 2019		September 30, 2018
Engines	$	5,718	$	14,488
Products	707		11,641
Total	$	6,425	$	26,129