17.

Business Segment Information

The Company’s operations are organized and reviewed by management along its product lines and presented in three reportable segments. The results of the segments are reviewed through to the “Income from operations” line on the Condensed Consolidated Statements of Income.

Environmental Segment (“Environmental”)

Our Environmental Segment, formerly known as the Air Pollution Control Segment, provides the design and manufacture of product recovery and air pollution control technologies that enable our customers to meet compliance targets for toxic emissions, fumes, volatile organic compounds, process and industrial odors. These products and solutions include chemical and biological scrubbers, fabric filters and cartridge collectors, thermal and catalytic oxidation systems, cyclones, separators, gas absorbers and industrial ventilation systems. This segment also provides component parts for industrial air systems and provides cost effective alternatives to traditional duct components, as well as custom metal engineered fabrication services. These products and services are applicable to a wide variety of industries. This segment is comprised of Adwest, HEE-Duall Air and Odor Technologies, Busch, Emtrol-Buell, Flex-Kleen Dust Collection Technologies, FKI-Emtrol, Kirk & Blum, KB Duct, and SAT. During the quarter, the Company concluded that changing the name of this segment was appropriate to more accurately describe the long-term goals of the Company in conjunction with the products and services offered within the segment.

Energy Segment (“Energy”)

Our Energy Segment provides the design and manufacture of technologies for flue gas and diverter dampers, non-metallic expansion joints, natural gas turbine exhaust systems, and silencer and precipitator applications, primarily for coal-fired and natural gas power plants, refining, oil production and petrochemical processing, as well as a variety of other industries. This segment is comprised of Aarding, Effox-Flextor, AVC, PMFG and Zhongli.

Fluid Handling and Filtration Segment (“FHF”)

Our Fluid Handling and Filtration Segment provides the design and manufacture of technologies including high quality centrifugal pumps for corrosive, abrasive and high temperature liquids, filter products for air and liquid filtration, and technologically advanced air movement and exhaust systems. These products are applicable to a wide variety of industries, particularly the aquarium/aquaculture, plating and metal finishing, food and beverage, chemical/petrochemical, wastewater treatment, desalination and pharmaceutical markets. This segment is comprised of Met-Pro Global Pump Solutions, Mefiag Filtration Solutions, Keystone Filtration Solutions, CECO Filters and Strobic Air Corporation.

The accounting policies of the reporting segments are the same as those described in the summary of significant accounting policies. Interest income and expense are not included in the measure of segment profit reviewed by management. Income taxes are also not included in the measure of segment operating profit reviewed by management. The operating results of the segments are reviewed through to the “Income from Operations” line on the Condensed Consolidated Statements of Income.

The financial segment information is presented in the following table:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2015		2014		2015		2014
Net Sales (less intra-, inter-segment sales)
Environmental Segment	$	40,644	$	27,709	$	124,158	$	87,396
Energy Segment		40,014		17,977		91,666		50,093
Fluid Handling and Filtration Segment		17,136		17,584		50,075		49,729
Corporate and Other⁽¹⁾		436		30		277		(107	)

Net sales	$	98,230	$	63,300	$	266,176	$	187,111

⁽¹⁾	Includes adjustment for revenue on intercompany jobs.


	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
Income (Loss) from Operations
Environmental Segment	$	5,225		$	3,315		$	14,383		$	12,057
Energy Segment		(1,082	)		1,850			(447	)		5,833
Fluid Handling and Filtration Segment		4,011			4,347			11,398			10,087
Corporate and Other⁽²⁾		(11,170	)		(3,944	)		(20,061	)		(8,900	)
Eliminations		822			(323	)		—			(1,152	)

Income (loss) from operations	$	(2,194	)	$	5,245		$	5,273		$	17,925

⁽²⁾	Includes corporate compensation, professional services, information technology, acquisition and integration expenses, and other general and administrative corporate expenses.


	Three Months Ended September 30,				Nine Months Ended September 30,
	2015		2014		2015		2014
Property and Equipment Additions
Environmental Segment	$	49	$	59	$	130	$	327
Energy Segment		66		5		245		72
Fluid Handling and Filtration Segment		65		26		133		359
Corporate and Other		5		—		18		43

Property and equipment additions	$	185	$	90	$	526	$	801


	Three Months Ended September 30,				Nine Months Ended September 30,
	2015		2014		2015		2014
Depreciation and Amortization
Environmental Segment	$	1,092	$	508	$	3,349	$	1,286
Energy Segment		1,526		561		2,957		1,780
Fluid Handling and Filtration Segment		1,586		1,614		4,772		4,939
Corporate and Other		70		31		139		98

Depreciation and Amortization	$	4,274	$	2,714	$	11,217	$	8,103


	September 30, 2015		December 31, 2014
Identifiable Assets
Environmental Segment	$	136,517	$	133,899
Energy Segment		316,869		91,850
Fluid Handling and Filtration Segment		169,480		172,779
Corporate and Other⁽³⁾		23,954		15,265

Identifiable Assets	$	646,820	$	413,793

⁽³⁾	Corporate assets primarily consist of cash and income tax related assets.


	September 30, 2015		December 31, 2014
Goodwill
Environmental Segment	$	55,033	$	53,538
Energy Segment		79,976		16,778
Fluid Handling and Filtration Segment		97,231		97,231

Goodwill	$	232,240	$	167,547

Intra-segment and Inter-segment Revenues

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


	Three Months Ended September 30, 2015
						Less Inter-Segment Sales
	Total Sales		Intra- Segment Sales			Environmental			Energy			FHF			Corp and Other		Net Sales to Outside Customers
Net Sales
Environmental Segment	$	42,925	$	(1,928	)	$	—		$	(345	)	$	(8	)	$	—	$	40,644
Energy Segment		41,511		(1,490	)		(7	)		—			—			—		40,014
Fluid Handling and Filtration Segment		17,654		(424	)		(94	)		—			—			—		17,136
Corporate and Other⁽⁴⁾		—		—			—			—			—			436		436

Net Sales	$	102,090	$	(3,842	)	$	(101	)	$	(345	)	$	(8	)	$	436	$	98,230


	Three Months Ended September 30, 2014
						Less Inter-Segment Sales
	Total Sales		Intra- Segment Sales			Environmental			Energy			FHF			Corp and Other		Net Sales to Outside Customers
Net Sales
Environmental Segment	$	29,920	$	(1,634	)	$	—		$	(444	)	$	(133	)	$	—	$	27,709
Energy Segment		19,193		(1,200	)		(16	)		—			—			—		17,977
Fluid Handling and Filtration Segment		18,176		(564	)		(28	)		—			—			—		17,584
Corporate and Other⁽⁴⁾		—		—			—			—			—			30		30

Net Sales	$	67,289		$(3,398	)	$	(44	)	$	(444	)	$	(133	)	$	30	$	63,300


	Nine Months Ended September 30, 2015
						Less Inter-Segment Sales
	Total Sales		Intra- Segment Sales			Environmental			Energy			FHF			Corp and Other		Net Sales to Outside Customers
Net Sales
Environmental Segment	$	130,315	$	(5,211	)	$	—		$	(938	)	$	(8	)	$	—	$	124,158
Energy Segment		96,037		(3,745	)		(626	)		—			—			—		91,666
Fluid Handling and Filtration Segment		51,847		(1,575	)		(197	)		—			—			—		50,075
Corporate and Other⁽⁴⁾		—		—			—			—			—			277		277

Net Sales	$	278,199	$	(10,531	)	$	(823	)	$	(938	)	$	(8	)	$	277	$	266,176


	Nine Months Ended September 30, 2014
						Less Inter-Segment Sales
	Total Sales		Intra- Segment Sales			Environmental			Energy			FHF			Corp and Other			Net Sales to Outside Customers
Net Sales
Environmental Segment	$	93,580	$	(5,124	)	$	—		$	(766	)	$	(294	)	$	—		$	87,396
Energy Segment		53,503		(3,393	)		(17	)		—			—			—			50,093
Fluid Handling and Filtration Segment		51,111		(1,311	)		(71	)		—			—			—			49,729
Corporate and Other⁽⁴⁾		—		—			—			—			—			(107	)		(107	)

Net Sales	$	198,194	$	(9,828	)	$	(88	)	$	(766	)	$	(294	)	$	(107	)	$	187,111

⁽⁴⁾	Includes adjustment for revenue on intercompany jobs.