Segment Information

We have three reportable segments: Industrial, Water Treatment and Health and Nutrition. Our Health and Nutrition segment was established as a result of our acquisition of Stauber near the end of the third quarter of fiscal 2016. The accounting policies of the segments are the same as those described in the summary of significant accounting policies. Product costs and expenses for each segment are based on actual costs incurred along with cost allocations of shared and centralized functions.

We evaluate performance based on profit or loss from operations before income taxes not including nonrecurring gains and losses. Reportable segments are defined primarily by product and type of customer. Segments are responsible for the sales, marketing and development of their products and services. Other than our Health and Nutrition segment, the segments do not have separate accounting, administration, customer service or purchasing functions. We allocate certain corporate expenses to our operating segments, and we began allocating a portion of these costs to the Health and Nutrition segment in fiscal 2017. Corporate costs allocated to Health and Nutrition were $2.1 million in fiscal 2018 and $1.9 million in fiscal 2017; these costs would have been allocated to Industrial (approximately $1.3 million and $1.2 million in fiscal 2018 and 2017 respectively) and Water Treatment (approximately $0.8 million and $0.7 million in fiscal 2018 and 2017 respectively) in past years. There are no intersegment sales and no operating segments have been aggregated. No single customer’s revenues amounted to 10% or more of our total revenue. Sales are primarily within the United States and all assets are located within the United States.



Reportable Segments	Industrial		Water Treatment		Health and Nutrition			Total
(In thousands)
Fiscal Year Ended April 1, 2018:
Sales	$	247,374	$	138,465	$	118,330		$	504,169
Gross profit	29,619		36,268		20,873			86,760
Selling, general, and administrative expenses	21,159		19,426		18,818			59,403
Goodwill impairment	—		—		39,116			39,116
Operating (loss) income	8,460		16,842		(37,061		)	(11,759		)
Identifiable assets*	$	165,052	$	58,513	$	153,123		$	376,688
Capital Expenditures	$	10,265	$	7,228	$	2,210		$	19,703
Fiscal Year Ended April 2, 2017:
Sales	$	238,555	$	128,954	$	116,084		$	483,593
Gross profit	38,886		35,962		23,225			98,073
Selling, general, and administrative expenses	21,818		19,798		17,765			59,381
Operating income	17,068		16,164		5,460			38,692
Identifiable assets*	$	159,032	$	53,445	$	192,047		$	404,524
Capital Expenditures	$	10,529	$	7,777	$	3,310		$	21,616
Fiscal Year Ended April 3, 2016:
Sales	$	251,749	$	128,312	$	33,915		$	413,976
Gross profit	37,967		35,470		6,820			80,257
Selling, general, and administrative expenses	22,137		19,261		7,688			49,086
Operating income (loss)	15,830		16,209		(868		)	31,171
Identifiable assets*	$	158,015	$	50,013	$	195,939		$	403,967
Capital Expenditures	$	17,712	$	6,306	$	165		$	24,183

* Unallocated assets, consisting primarily of cash and cash equivalents, investments and prepaid expenses, were $14.3 million at April 1, 2018, $13.1 million at April 2, 2017 and $32.8 million at April 3, 2016.

In fiscal 2016, operating profit for the Health and Nutrition segment was negatively impacted by $3.3 million (pre-tax) of non-recurring SG&A expenses directly related to the acquisition by Hawkins.