Business Segments

9 Months Ended

Jun. 30, 2020

Segment Reporting [Abstract]

Business segments

Business Segments

The Company’s reportable operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated on a regular basis by the chief operating decision maker, or decision making group, in deciding how to allocate resources to an individual segment and in assessing performance. The key factors used to identify these reportable operating segments are the organization and alignment of the Company’s internal operations, the nature of the products and services, and customer type.

The Company has two reportable operating segments, Integrated Solutions and Services and Applied Product Technologies. The business segments are described as follows:

Integrated Solutions and Services is a group entirely focused on engaging directly with end users through direct sales with a market vertical focus. Integrated Solutions and Services provides tailored services and solutions in collaboration with the customers backed by life‑cycle services including on‑demand water, outsourced water, recycle / reuse and emergency response service alternatives to improve operational reliability, performance and environmental compliance. Key offerings within this segment also include equipment systems for industrial needs (influent water, boiler feed water, ultrahigh purity, process water, wastewater treatment and recycle / reuse), full-scale outsourcing of operations and maintenance, and municipal services, including odor and corrosion control services.

Applied Product Technologies is focused on developing product platforms to be sold primarily through third party channels. This segment primarily engages in indirect sales through independent sales representatives, distributors and aftermarket channels. Applied Product Technologies provides a range of highly differentiated and scalable products and technologies specified by global water treatment designers, OEMs, engineering firms and integrators. Key offerings within this segment include filtration and separation, disinfection, wastewater solutions, anode and electrochlorination technology and aquatics technologies and solutions for the global recreational and commercial pool market.

The Company evaluates its business segments’ operating results based on earnings before interest, taxes, depreciation and amortization, and certain other charges that are specific to the activities of the respective segments. Corporate activities include general corporate expenses, elimination of inter-segment transactions, interest income and expense and certain other charges. Certain other charges include restructuring and other business transformation charges that have been

undertaken to align and reposition the Company to the current reporting structure, acquisition related costs (including transaction costs, certain integration costs and recognition of backlog intangible assets recorded in purchase accounting) and share-based compensation charges. 

Since certain administrative and other operating expenses and other items have not been allocated to business segments, the results in the below table are not necessarily a measure computed in accordance with generally accepted accounting principles and may not be comparable to other companies.

	Three Months Ended June 30,						Nine Months Ended June 30,
	2020			2019			2020			2019
Total sales
Integrated Solutions and Services	$	230,314		$	227,815		$	702,938		$	669,031
Applied Product Technologies	136,350			158,526			404,303			437,196
Total sales	366,664			386,341			1,107,241			1,106,227
Intersegment sales
Integrated Solutions and Services	1,603			2,386			8,204			6,240
Applied Product Technologies	17,234			23,612			53,442			68,014
Total intersegment sales	18,837			25,998			61,646			74,254
Sales to external customers
Integrated Solutions and Services	228,711			225,429			694,734			662,791
Applied Product Technologies	119,116			134,914			350,861			369,182
Total sales	347,827			360,343			1,045,595			1,031,973
Operating profit (loss)
Integrated Solutions and Services	32,608			37,345			102,457			102,282
Applied Product Technologies	23,588			22,524			110,480			38,362
Corporate	(23,130		)	(32,778		)	(89,024		)	(108,444		)
Total operating profit	33,066			27,091			123,913			32,200
Interest expense	(10,485		)	(14,842		)	(37,320		)	(43,759		)
Income (loss) before income taxes	22,581			12,249			86,593			(11,559		)
Income tax (expense) benefit	(740		)	(7,959		)	(3,336		)	1,134
Net income (loss)	$	21,841		$	4,290		$	83,257		$	(10,425	)
Depreciation and amortization
Integrated Solutions and Services	$	17,745		$	14,035		$	50,702		$	42,307
Applied Product Technologies	3,556			4,350			10,673			13,142
Corporate	6,241			5,760			18,681			15,948
Total depreciation and amortization	$	27,542		$	24,145		$	80,056		$	71,397
Capital expenditures
Integrated Solutions and Services	$	23,734		$	19,646		$	56,918		$	53,303
Applied Product Technologies	1,040			1,720			4,407			5,988
Corporate	2,391			1,900			4,599			4,657
Total capital expenditures	$	27,165		$	23,266		$	65,924		$	63,948

	June 30, 2020		September 30, 2019
Assets
Integrated Solutions and Services	$	836,389	$	762,707
Applied Product Technologies	589,721		657,879
Corporate	351,786		317,262
Total assets	$	1,777,896	$	1,737,848
Goodwill
Integrated Solutions and Services	$	222,669	$	222,013
Applied Product Technologies	170,758		170,877
Total goodwill	$	393,427	$	392,890