Business Segments

12 Months Ended

Sep. 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 intersegment 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 costs and other operating expenses 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.

The tables below provide segment information for the periods presented and a reconciliation to total consolidated information:

	Year Ended September 30,
	2020			2019			2018
Total sales
Integrated Solutions and Services	$	954,542		$	919,985		$	844,851
Applied Product Technologies	559,635			631,332			579,291
Total sales	$	1,514,177		$	1,551,317		$	1,424,142
Intersegment sales
Integrated Solutions and Services	$	10,360		$	9,151		$	9,217
Applied Product Technologies	74,361			97,725			75,384
Total intersegment sales	$	84,721		$	106,876		$	84,601
Sales to external customers
Integrated Solutions and Services	$	944,182		$	910,834		$	835,634
Applied Product Technologies	485,274			533,607			503,907
Total sales	$	1,429,456		$	1,444,441		$	1,339,541
Income (loss) from operations
Integrated Solutions and Services	$	145,655		$	148,593		$	138,043
Applied Product Technologies	134,258			69,377			71,948
Corporate	(111,465		)	(158,298		)	(143,145		)
Total income from operations	$	168,448		$	59,672		$	66,846
Interest expense	(46,682		)	(58,556		)	(57,580		)
Income before income taxes	$	121,766		$	1,116		$	9,266
Income tax expense	(7,371		)	(9,587		)	(1,382		)
Net income (loss)	$	114,395		$	(8,471	)	$	7,884
Depreciation and amortization
Integrated Solutions and Services	$	67,489		$	57,217		$	48,781
Applied Product Technologies	14,226			17,675			16,734
Corporate	25,553			23,344			20,345
Total depreciation and amortization	$	107,268		$	98,236		$	85,860
Capital expenditures
Integrated Solutions and Services	$	75,551		$	73,656		$	58,464
Applied Product Technologies	6,237			7,589			11,501
Corporate	6,668			7,624			10,748
Total Capital expenditures	$	88,456		$	88,869		$	80,713

	September 30, 2020		September 30, 2019
Assets
Integrated Solutions and Services	$	835,307	$	762,707
Applied Product Technologies	598,701		657,879
Corporate	410,450		317,262
Total assets	$	1,844,458	$	1,737,848
Goodwill
Integrated Solutions and Services	$	224,381	$	222,013
Applied Product Technologies	172,824		170,877
Total goodwill	$	397,205	$	392,890