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## Note 16. Segments of the Business: 

The Company has three operating segments: Engine, Power Generation, and Filtration and Other. The Engine segment produces engines and parts for sale to customers in automotive and industrial markets. The engines are used in trucks of all sizes, buses and recreational vehicles, as well as various indus- trial applications including construction, mining, agriculture, marine, rail and military. The Power Generation segment is the CompanyGLYPH<213>s power systems supplier, selling engines, generator sets and alternators and providing temporary power through rentals of generator sets. The Filtration and Other segment includes sales of filtration products, exhaust systems and turbochargers and sales from company-owned distributors. 

Operating segment information is as follows: 

The CompanyGLYPH<213>s operating segments are organized according to products and the markets they each serve. This business structure was designed to focus efforts on providing enhanced service to a wide range of customers. 

The accounting policies of the segments are the same as those described in the summary of significant accounting policies except that the Company evaluates performance based on earnings before interest and income taxes and on net assets; therefore, no allocation of debt-related items and income taxes is made to the individual segments. 

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