Business Segments

6 Months Ended

Mar. 31, 2022

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, 2022 and 2021 were as follows:

	Three Months Ended March 31,				Six Months Ended March 31,
	2022		2021		2022		2021
Total revenue
Integrated Solutions and Services	$	304,499	$	228,203	$	558,075	$	444,956
Applied Product Technologies	154,861		146,107		297,358		269,688
Total revenue	459,360		374,310		855,433		714,644
Intersegment revenue
Integrated Solutions and Services	9,659		4,069		18,189		6,105
Applied Product Technologies	22,973		23,677		44,248		39,782
Total intersegment revenue	32,632		27,746		62,437		45,887
Revenue to external customers
Integrated Solutions and Services	294,840		224,134		539,886		438,851
Applied Product Technologies	131,888		122,430		253,110		229,906
Total revenue	$	426,728	$	346,564	$	792,996	$	668,757
Operating profit (loss)
Integrated Solutions and Services	$	38,105	$	30,784	$	73,405	$	57,141
Applied Product Technologies	22,993		18,103		40,820		31,483
Corporate	(41,526)		(32,709)		(80,365)		(56,212)
Total operating profit	19,572		16,178		33,860		32,412
Interest expense	(9,950)		(8,395)		(16,529)		(17,068)
Income before income taxes	9,622		7,783		17,331		15,344
Income tax expense	(2,248)		(2,701)		(3,869)		(3,785)
Net income	$	7,374	$	5,082	$	13,462	$	11,559