A turbine engine is disclosed and includes an airflow passage including an inner surface defined by a main shroud and a shroud extension. A flow splitter is disposed radially outward of the inner surface and axially overlapping the shroud extension. The turbine engine further includes a rotor including a blade proximate the shroud extension and an annular gap defined between the shroud extension and the blade of a first axial length less than a second axial length between the blade and an end of the flow splitter.