Business Segments

9 Months Ended

Jun. 30, 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 nine months ended June 30, 2022 and 2021 were as follows:

	Three Months Ended June 30,				Nine Months Ended June 30,
	2022		2021		2022		2021
Total revenue
Integrated Solutions and Services	$	310,431	$	245,414	$	868,506	$	690,370
Applied Product Technologies	166,779		149,434		464,137		419,122
Total revenue	477,210		394,848		1,332,643		1,109,492
Intersegment revenue
Integrated Solutions and Services	13,020		5,727		31,209		11,832
Applied Product Technologies	24,865		19,440		69,113		59,222
Total intersegment revenue	37,885		25,167		100,322		71,054
Revenue to external customers
Integrated Solutions and Services	297,411		239,687		837,297		678,538
Applied Product Technologies	141,914		129,994		395,024		359,900
Total revenue	$	439,325	$	369,681	$	1,232,321	$	1,038,438
Operating profit (loss)
Integrated Solutions and Services	$	39,864	$	37,793	$	113,269	$	94,934
Applied Product Technologies	28,592		22,735		69,412		54,218
Corporate	(37,426)		(32,218)		(117,791)		(88,430)
Total operating profit	31,030		28,310		64,890		60,722
Interest expense	(8,440)		(11,224)		(24,969)		(28,292)
Income before income taxes	22,590		17,086		39,921		32,430
Income tax expense	(5,027)		(3,887)		(8,896)		(7,672)
Net income	$	17,563	$	13,199	$	31,025	$	24,758