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## NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 

material processing equipment. The principal purchasers of these products are pipeline and utility contractors. 

All Others - This category consists of the Company’s other business units, including the parent company, Astec Industries, Inc., that do not meet the requirements for separate disclosure as an operating segment. Revenues in this category are derived primarily from operating leases owned by the Company’s finance subsidiary. 

The Company evaluates performance and allocates resources based on profit or loss from operations before federal income taxes and corporate overhead. The accounting policies of the reportable segments are the same as those described in the summary of significant accounting policies. 

Intersegment sales and transfers are valued at prices comparable to those for unrelated parties. For manage- ment purposes, the Company does not allocate federal income taxes or corporate overhead (including interest expense) to its business units. 

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