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Segment Information
6 Months Ended
Dec. 29, 2019
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 29,
2019
 
December 30,
2018
December 29,
2019
 
December 30,
2018
NET SALES:
 
 
 
 
 
 
 
Engines
 
$
219,190

 
$
272,018

$
352,544

 
$
391,108

Products
 
241,984

 
254,627

437,625

 
427,670

Inter-Segment Eliminations
 
(23,233
)
 
(21,183
)
(38,509
)
 
(34,319
)
Total*
 
$
437,941

 
$
505,462

$
751,660

 
$
784,459

* International sales included in net sales based on product shipment destination
 
$
144,019

 
$
148,125

$
246,635

 
$
236,651

GROSS PROFIT:
 
 
 
 
 
 
 
Engines
 
$
33,192

 
$
55,614

$
52,334

 
$
71,551

Products
 
35,179

 
37,577

59,997

 
65,213

Inter-Segment Eliminations
 
(346
)
 
(734
)
(1,060
)
 
(553
)
Total
 
$
68,025

 
$
92,457

$
111,271

 
$
136,211

SEGMENT INCOME (LOSS):
 
 
 
 
 
 
 
Engines
 
$
(14,248
)
 
$
4,658

$
(42,152
)
 
$
(39,593
)
Products
 
4,441

 
4,411

(1,169
)
 
(5,651
)
Inter-Segment Eliminations
 
(346
)
 
(734
)
(1,060
)
 
(553
)
Total
 
$
(10,153
)
 
$
8,335

$
(44,381
)
 
$
(45,797
)


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
 
Six Months Ended
 
 
December 29,
2019
 
December 30,
2018
 
December 29,
2019
 
December 30,
2018
Engines
 
$
7,187

 
$
665

 
$
12,175

 
$
1,088

Products
 
441

 
834

 
1,090

 
3,713

Total
 
$
7,628

 
$
1,499

 
$
13,265

 
$
4,801


    
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
 
Six Months Ended
 
 
December 29,
2019
 
December 30,
2018
 
December 29,
2019
 
December 30,
2018
Engines
 
$
8,719

 
$
7,508

 
$
14,437

 
$
21,871

Products
 
857

 
3,405

 
1,564

 
15,169

Total
 
$
9,576

 
$
10,913

 
$
16,001

 
$
37,040