Note G – Segment Reporting

The Company has two reportable segments, Engine Products and Industrial Products, that have been identified based on the Company's internal organization structure, management of operations, and performance evaluation. Corporate and Unallocated includes corporate expenses determined to be non-allocable to the segments and interest income and expense. The Company is an integrated enterprise, characterized by substantial intersegment cooperation, cost allocations, and sharing of assets. Therefore, the Company does not represent that these segments, if operated independently, would report the operating profit and other financial information shown below. Segment detail is summarized as follows (thousands of dollars):


	Engine Products		Industrial Products		Corporate & Unallocated			Total Company
Three Months Ended April 30, 2011:
Net sales	$	377,609	$	216,956	$	—		$	594,565
Earnings before income taxes		56,469		33,074		(7,727	)		81,816

Three Months Ended April 30, 2010:
Net sales	$	301,312	$	196,307	$	—		$	497,619
Earnings before income taxes		48,535		25,831		(4,297	)		70,069

Nine Months Ended April 30, 2011:
Net sales	$	1,042,500	$	626,079	$	—		$	1,668,579
Earnings before income taxes		149,123		92,236		(19,579	)		221,780
Assets		843,450		503,962		394,395			1,741,807

Nine Months Ended April 30, 2010:
Net sales	$	809,061	$	552,760	$	—		$	1,361,821
Earnings before income taxes		107,833		61,318		(11,531	)		157,620
Assets		678,543		456,522		289,123			1,424,188

For the three and nine months ended April 30, 2010, net sales reflect the reclassification of $8,514 and $22,641, respectively, earnings before income taxes reflect a reclassification of $1,845 and $3,687, respectively, and assets at April 30, 2010 reflect a reclassification of $27,287, as a result of an internal reorganization of Industrial Hydraulics from Industrial Products to Engine Products, which became effective August 1, 2010.

There were no restructuring expenses incurred during the three months ended April 30, 2011. The Industrial Products segment incurred $0.7 million of restructuring expenses during the nine months ended April 30, 2011. The Engine Products and Industrial Products segments incurred $0.2 million and $3.5 million of restructuring and asset impairment charges for the three months ended April 30, 2010, respectively, and $1.7 million and $8.4 million of restructuring and asset impairment expenses for the nine months ended April 30, 2010, respectively.

There were no Customers over 10 percent of net sales for the three or nine months ended April 30, 2011 and 2010. There were no Customers over 10 percent of gross accounts receivable as of April 30, 2011 and 2010.