Business Segments

3 Months Ended

Dec. 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 months ended December 31, 2022 and 2021 were as follows:

	Three Months Ended December 31,
	2022		2021
Total revenue
Integrated Solutions and Services	$	311,264	$	253,576
Applied Product Technologies	150,338		142,497
Total revenue	461,602		396,073
Intersegment revenue
Integrated Solutions and Services	5,838		8,530
Applied Product Technologies	19,918		21,275
Total intersegment revenue	25,756		29,805
Revenue to external customers
Integrated Solutions and Services	305,426		245,046
Applied Product Technologies	130,420		121,222
Total revenue	$	435,846	$	366,268
Operating profit (loss)
Integrated Solutions and Services	$	42,708	$	35,300
Applied Product Technologies	21,015		17,827
Corporate	(40,491)		(38,839)
Total operating profit	23,232		14,288
Interest expense	(10,074)		(6,579)
Income before income taxes	13,158		7,709
Income tax expense	(3,890)		(1,621)
Net income	$	9,268	$	6,088