Business Segments

3 Months Ended

Dec. 31, 2021

Segment Reporting [Abstract]

Business segments

Business SegmentsThe 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 months ended December 31, 2021 and 2020 were as follows:

	Three Months Ended December 31,
	2021		2020
Total revenue
Integrated Solutions and Services	$	253,576	$	216,753
Applied Product Technologies	142,497		123,581
Total revenue	396,073		340,334
Intersegment revenue
Integrated Solutions and Services	8,530		2,036
Applied Product Technologies	21,275		16,105
Total intersegment revenue	29,805		18,141
Revenue to external customers
Integrated Solutions and Services	245,046		214,717
Applied Product Technologies	121,222		107,476
Total revenue	$	366,268	$	322,193
Operating profit (loss)
Integrated Solutions and Services	$	35,300	$	26,357
Applied Product Technologies	17,827		13,380
Corporate	(38,839)		(23,503)
Total operating profit	14,288		16,234
Interest expense	(6,579)		(8,673)
Income before income taxes	7,709		7,561
Income tax expense	(1,621)		(1,084)
Net income	$	6,088	$	6,477