Business Segment Information

12 Months Ended

Dec. 31, 2021

Segment Reporting [Abstract]

Business Segment Information

16.Business Segment Information

The Company’s operations are organized and reviewed by management along its product lines or end markets that the segment serves and are presented in two reportable segments. The results of the segments are reviewed through to the “Income from operations” line on the Consolidated Statements of Income. The accounting policies of the segments are the same as those in the consolidated financial statements. During the first quarter of 2021, management determined that a realignment of the Company’s segments was necessary to better reflect the solutions we provide, and the end markets we serve. As a result of this realignment, we combined the operating results of the prior Industrial Solutions segment and Fluid Handling Solutions segment into a single reportable segment named the Industrial Process Solutions segment. In addition, the Energy Solutions segment was renamed the Engineered Systems segment. The results of the segments are reviewed through the “Income from operations” line on the Consolidated Statements of Income.

The Company’s reportable segments are organized as groups of similar products and services, as described as follows:

•Engineered Systems segment: Our Engineered Systems segment, formerly known as the Energy Solutions segment, serves the power generation, refinery, water/wastewater and midstream oil & gas markets. We are a key part of helping meet the global demand for environmental and equipment protection through our highly engineered platforms including emissions management, fluid bed cyclones, thermal acoustics, separation & filtration, and dampers & expansion joints.

•Industrial Process Solutions segment: Our Industrial Process Solutions segment is the combination of the segments formerly known as our Industrial Solutions segment and our Fluid Handling Solutions segment, which serves the broad industrial air pollution control, beverage can, fluid handling, electric vehicle production, food and beverage, semi-conductor, process filtration, pharmaceutical, petrochemical, wastewater treatment, wood manufacturing, desalination, and aquaculture markets. We protect the air we collectively breathe, maintain clean and safe operations for employees, lower energy consumption, minimize waste for customers, and ensure they meet regulatory compliance standards for toxic emissions,

fumes, volatile organic compounds and odors through our platforms including duct & installation, industrial air, and fluid handling.

(table only in thousands)	2021		2020		2019
Net Sales (less intra-, inter-segment sales)
Engineered Systems segment	$	186,926	$	205,494	$	210,319
Industrial Process Solutions segment		137,214		110,517		131,550
Net sales	$	324,140	$	316,011	$	341,869

(table only in thousands)	2021			2020			2019
Income from Operations
Engineered Systems segment	$	25,770		$	34,170		$	33,886
Industrial Process Solutions segment		15,054			7,220			11,237
Corporate and Other (1)		(30,967	)		(28,044	)		(27,133	)
Income from operations	$	9,857		$	13,346		$	17,990

(1)Includes corporate compensation, professional services, information technology, acquisition and integration expenses, and other general, administrative corporate expenses and loss on divestitures.

(table only in thousands)	2021		2020		2019
Property and Equipment Additions
Engineered Systems segment	$	100	$	550	$	434
Industrial Process Solutions segment		721		1,349		3,641
Corporate and Other		1,795		2,046		1,580
Property and equipment additions	$	2,616	$	3,945	$	5,655

(table only in thousands)	2021		2020		2019
Depreciation and Amortization
Engineered Systems segment	$	4,249	$	4,957	$	6,084
Industrial Process Solutions segment		4,299		4,199		4,115
Corporate and Other		1,305		765		410
Depreciation and amortization	$	9,853	$	9,921	$	10,609

	December 31,
(table only in thousands)	2021		2020
Identifiable Assets
Engineered Systems segment	$	262,558	$	270,573
Industrial Process Solutions segment		141,975		135,204
Corporate and Other (2)		11,664		13,537
Identifiable assets	$	416,197	$	419,314

(2)Corporate assets primarily consist of cash and income tax related assets.

	December 31,
(table only in thousands)	2021		2020
Goodwill
Engineered Systems segment	$	99,303	$	99,785
Industrial Process Solutions segment		61,880		62,035
Goodwill	$	161,183	$	161,820

Intra-segment and Inter-segment Revenues

The Company has divisions that sell to each other within segments (intra-segment sales) and between segments (inter-segment sales) as indicated in the following tables:

	Year Ended December 31, 2021
						Less Inter-Segment Sales
(table only in thousands)	Total Sales		Intra-Segment Sales			Industrial Process Solutions			Engineered Systems			Net Sales to Outside Customers
Net Sales
Engineered Systems segment	$	197,380	$	(9,483	)	$	(971	)	$	—		$	186,926
Industrial Process Solutions segment		152,886		(14,533	)		—			(1,139	)		137,214
Net Sales	$	350,266	$	(24,016	)	$	(971	)	$	(1,139	)	$	324,140

	Year Ended December 31, 2020
						Less Inter-Segment Sales
(table only in thousands)	Total Sales		Intra-Segment Sales			Industrial Process Solutions			Engineered Systems			Net Sales to Outside Customers
Net Sales
Engineered Systems segment	$	218,290	$	(11,333	)	$	(1,463	)	$	—		$	205,494
Industrial Process Solutions segment		124,547		(12,798	)		—			(1,232	)		110,517
Net Sales	$	342,837	$	(24,131	)	$	(1,463	)	$	(1,232	)	$	316,011

	Year Ended December 31, 2019
						Less Inter-Segment Sales
(table only in thousands)	Total Sales		Intra-Segment Sales			Industrial Process Solutions			Engineered Systems			Net Sales to Outside Customers
Net Sales
Engineered Systems segment	$	217,359	$	(6,650	)	$	(390	)	$	—		$	210,319
Industrial Process Solutions segment		143,086		(9,859	)		—			(1,677	)		131,550
Net Sales	$	360,445	$	(16,509	)	$	(390	)	$	(1,677	)	$	341,869

No single customer represented greater than 10% of consolidated net sales or accounts receivable for 2021, 2020, or 2019.

For 2021, 2020, and 2019, sales to customers outside the United States, including export sales, accounted for approximately 38%, 35%, and 30%, respectively, of consolidated net sales. The largest portion of export sales in 2021 was destined for Asia (16.0%), and Europe (10.3%). Of consolidated long-lived assets, $26.7 million and $29.0 million were located outside of the United States as of December 31, 2021 and 2020, respectively. The largest portion of long-lived assets located outside the United States at December 31, 2021 were in Europe ($23.1 million).