Business Segments

6 Months Ended

Mar. 31, 2021

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, original equipment manufacturers (“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.

Corporate activities include general corporate expenses, elimination of inter-segment transactions, interest income and expense and certain other charges. Certain other charges may 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 and certain integration costs) 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.

Reportable operating segment revenue and operating profit for the three and six months ended March 31, 2021 and 2020 were as follows:

	Three Months Ended March 31,				Six Months Ended March 31,
	2021		2020		2021		2020
Total revenue
Integrated Solutions and Services	$	228,203	$	240,824	$	444,956	$	472,624
Applied Product Technologies	146,107		129,424		269,688		267,953
Total revenue	374,310		370,248		714,644		740,577
Intersegment revenue
Integrated Solutions and Services	4,069		2,939		6,105		6,601
Applied Product Technologies	23,677		15,646		39,782		36,208
Total intersegment revenue	27,746		18,585		45,887		42,809
Revenue to external customers
Integrated Solutions and Services	224,134		237,885		438,851		466,023
Applied Product Technologies	122,430		113,778		229,906		231,745
Total revenue	$	346,564	$	351,663	$	668,757	$	697,768
Operating profit (loss)
Integrated Solutions and Services	$	30,784	$	36,695	$	57,141	$	69,849
Applied Product Technologies	18,103		23,750		31,483		86,892
Corporate	(32,709)		(39,290)		(56,212)		(65,894)
Total operating profit	16,178		21,155		32,412		90,847
Interest expense	(8,395)		(13,252)		(17,068)		(26,835)
Income before income taxes	7,783		7,903		15,344		64,012
Income tax (expense) benefit	(2,701)		7		(3,785)		(2,596)
Net income	$	5,082	$	7,910	$	11,559	$	61,416