Business Segments

9 Months Ended

Jun. 30, 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 nine months ended June 30, 2021 and 2020 were as follows:

	Three Months Ended June 30,				Nine Months Ended June 30,
	2021		2020		2021		2020
Total revenue
Integrated Solutions and Services	$	245,414	$	230,314	$	690,370	$	702,938
Applied Product Technologies	149,434		136,350		419,122		404,303
Total revenue	394,848		366,664		1,109,492		1,107,241
Intersegment revenue
Integrated Solutions and Services	5,727		1,603		11,832		8,204
Applied Product Technologies	19,440		17,234		59,222		53,442
Total intersegment revenue	25,167		18,837		71,054		61,646
Revenue to external customers
Integrated Solutions and Services	239,687		228,711		678,538		694,734
Applied Product Technologies	129,994		119,116		359,900		350,861
Total revenue	$	369,681	$	347,827	$	1,038,438	$	1,045,595
Operating profit (loss)
Integrated Solutions and Services	$	37,793	$	32,608	$	94,934	$	102,457
Applied Product Technologies	22,735		23,588		54,218		110,480
Corporate	(32,218)		(23,130)		(88,430)		(89,024)
Total operating profit	28,310		33,066		60,722		123,913
Interest expense	(11,224)		(10,485)		(28,292)		(37,320)
Income before income taxes	17,086		22,581		32,430		86,593
Income tax expense	(3,887)		(740)		(7,672)		(3,336)
Net income	$	13,199	$	21,841	$	24,758	$	83,257