Segment Information | 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 in our fiscal 2016 Annual Report on Form 10-K. 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 $0.5 million for the three months ended January 1, 2017 and $1.5 million for the nine months ended January 1, 2017; these costs would have otherwise been allocated to Industrial (approximately $0.3 million for the three months ended January 1, 2017 and $0.9 million for the nine month period) and Water Treatment (approximately $0.2 million for the three months ended January 1, 2017 and $0.6 million for the nine month period). There are no intersegment sales and no operating segments have been aggregated. Given the nature of our business, it is not practical to disclose revenues from external customers for each product or each group of similar products. 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. (In thousands) Industrial Water Treatment Health and Nutrition Total Three months ended January 1, 2017: Sales $ 57,083 $ 28,098 $ 27,170 $ 112,351 Gross profit 8,371 7,242 5,299 20,912 Selling, general, and administrative expenses 5,467 4,808 4,641 14,916 Operating income 2,904 2,434 658 5,996 Three months ended December 27, 2015: Sales $ 59,326 $ 29,049 $ — $ 88,375 Gross profit 7,474 7,235 — 14,709 Selling, general, and administrative expenses 5,421 4,714 2,690 12,825 Operating income (loss) 2,053 2,521 (2,690 ) 1,884 Nine months ended January 1, 2017: Sales $ 176,717 $ 100,590 $ 87,668 $ 364,975 Gross profit 28,978 28,943 18,239 76,160 Selling, general and administrative expenses 16,254 14,825 13,834 44,913 Operating income 12,724 14,118 4,405 31,247 Nine months ended December 27, 2015: Sales $ 185,260 $ 99,203 $ — $ 284,463 Gross profit 27,372 27,883 — 55,255 Selling, general and administrative expenses 16,061 14,268 2,690 33,019 Operating income (loss) 11,311 13,615 (2,690 ) 22,236 No significant changes to identifiable assets by segment occurred during the nine months ended January 1, 2017 . |