Business Segments

The Company has three reportable segments – Industrial, Municipal and Products. 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 segments are the organization and alignment of the Company’s internal operations, the nature of the products and services, and customer type. The business segments are described as follows:

Industrial combines equipment and services to improve operational reliability and environmental compliance for heavy and light industry, commercial and institutional markets. Their customers span industries including hydrocarbon refineries, chemical processing, power, food and beverage, life sciences, health services and microelectronics.

Municipal helps engineers and municipalities meet new demands for plant performance through leading equipment, solutions and services backed by trusted brands and over 100 plus years of applications experience. Their customers include waste water and drinking water collection and distribution systems, and utility operators. Their services include odor control services.

Products has distinct business operating units. Each has a unique standard product built on well-known brands and technologies that are sold globally through multiple sales and aftermarket channels. Additionally, Products also offers industrial, municipal and water recreational users with well-known brands that improve operational reliability and environmental compliance. Their customers include original equipment manufacturers, regional and global distributors, engineering, procurement and contracting customers, and end users in the municipal, industrial and commercial industries, including hotels, resorts, colleges, universities, waterparks, aquariums and zoos.

The Company evaluates its business segments’ operating results based on earnings before interest, taxes, depreciation and amortization, and certain other charges that are specific to the activities of the respective segments. Corporate activities include general corporate expenses, elimination of intersegment transactions, interest income and expense and certain other charges. Certain other charges 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, certain integration costs and recognition of backlog intangible assets recorded in purchase accounting) 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.



	Three Months Ended June 30,						Nine Months Ended June 30,
	2017			2018			2017			2018
Total sales
Industrial	$	155,904		$	184,133		$	464,414		$	536,351
Municipal	79,817			75,927			217,897			215,768
Products	93,257			104,013			258,181			280,496
Total sales	328,978			364,073			940,492			1,032,615
Intersegment sales
Industrial	1,206			1,810			3,553			7,575
Municipal	7,075			7,428			18,970			21,079
Products	9,555			12,360			27,053			30,746
Total intersegment sales	17,836			21,598			49,576			59,400
Sales to external customers
Industrial	154,698			182,323			460,861			528,776
Municipal	72,742			68,499			198,927			194,689
Products	83,702			91,653			231,128			249,750
Total sales	311,142			342,475			890,916			973,215
Earnings before interest, taxes, depreciation and amortization (EBITDA)
Industrial	34,758			35,805			102,133			117,646
Municipal	12,556			14,434			29,644			30,784
Products	21,196			23,989			53,070			57,635
Corporate	(23,794		)	(37,828		)	(96,172		)	(93,667		)
Total EBITDA	44,716			36,400			88,675			112,398
Depreciation and amortization
Industrial	9,191			11,390			27,632			32,244
Municipal	1,994			1,736			6,119			5,312
Products	2,084			3,269			8,722			9,345
Corporate	5,024			5,167			13,340			15,023
Total depreciation and amortization	18,293			21,562			55,813			61,924
Operating profit (loss)
Industrial	25,567			24,415			74,501			85,402
Municipal	10,562			12,698			23,525			25,472
Products	19,112			20,720			44,348			48,290
Corporate	(28,817		)	(42,995		)	(109,512		)	(108,689		)
Total operating profit	26,424			14,838			32,862			50,475
Interest expense	(12,466		)	(12,370		)	(39,117		)	(40,423		)
Income (loss) before income taxes	13,958			2,468			(6,255		)	10,052
Income tax (expense) benefit	(12,202		)	(1,433		)	(295		)	960
Net income (loss)	$	1,756		$	1,035		$	(6,550	)	$	11,012
Capital expenditures
Industrial	$	9,256		$	14,364		$	31,019		$	34,866
Products	1,658			2,817			4,239			5,138
Municipal	561			3,182			1,577			6,154
Corporate	1,772			2,536			3,640			8,411
Total capital expenditures	$	13,247		$	22,899		$	40,475		$	54,569



	September 30, 2017		June 30, 2018
Assets
Industrial	$	461,471	$	492,875
Municipal	155,698		171,438
Products	513,941		538,430
Corporate	342,199		296,478
Total assets	$	1,473,309	$	1,499,221
Goodwill
Industrial	$	128,190	$	127,357
Municipal	9,865		9,741
Products	183,858		187,174
Total goodwill	$	321,913	$	324,272