15.	Business Segment Information

The Company’s operations are organized and reviewed by management along its product lines or end market that the segment serves and presented in three reportable segments. During the first quarter of 2018, the Company finalized an overall assessment and recalibration of its strategy. As a part of this assessment and recalibration of this strategy, management determined that a realignment of the Company’s segments was necessary to better reflect the technologies and solutions we provide, and the end markets we serve. As a result of this realignment, the reportable segments of the Company have been renamed utilizing the nomenclature below. Furthermore, we reclassified the operating results of certain business units within the Energy Solutions and Industrial Solutions Segments to have their reportable segment more closely align with our strategy.

Energy Solutions Segment

Our Energy Solutions segment, formerly known as the Energy segment, improves air quality and solves fluid handling needs with market leading, highly engineered and customized solutions for the power generation, oil & gas, and petrochemical industries. Our offerings in this space include solutions such as natural gas turbine exhaust systems, selective catalytic reduction (“SCR”) and selective non-catalytic reduction (“SNCR”) systems, acoustical components and silencers, silencer and precipitator applications, the design and manufacture of technologies for flue gas dampers, diverters, expansion joints, gas and liquid separation and filtration equipment, secondary separators (nuclear plant reactor vessels), and fluid catalytic cracking (“FCC”) unit cyclones for processing in power generation, refining, oil production and petrochemical plants, as well as a variety of other industries.

Industrial Solutions Segment

Our Industrial Solutions segment, formerly known as the Environmental segment, improves air quality with a compelling solution set of air pollution control technologies that enable our customers to reduce their carbon footprint, lower energy consumption, minimize waste and meet compliance targets for toxic emissions, fumes, volatile organic compounds, process and industrial odors. With a powerful suite of products and solutions to address air quality needs in the industrial markets, our offerings 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.

Fluid Handling Solutions Segment

Our Fluid Handling Solutions segment, formerly known as the Fluid Handling and Filtration segment, provides solutions for mission-critical applications to a wide variety of industries including, but not limited to, chemical, petrochemical, pharmaceutical, wastewater treatment, desalination, aquarium and aquaculture, plating and metal finishing, and food and beverage. To meet the needs of these markets, we design and manufacture high quality pumps and specialty filtration solutions including centrifugal pumps for corrosive, abrasive and high-temperature liquids, filter products for air and liquid filtration, precious metal recovery systems, carbonate precipitators, and technologically advanced air movement and exhaust systems.

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 Operations.

The financial segment information is presented in the following tables:

	Three Months Ended June 30,					Six Months Ended June 30,
(dollars in thousands)	2018			2017		2018		2017
Net Sales (less intra-, inter-segment sales)
Energy Solutions Segment	$	51,136		$	52,499	$	91,109	$	106,208
Industrial Solutions Segment		18,324			22,796		36,121		46,099
Fluid Handling Solutions Segment		11,791			18,348		27,999		34,164
Corporate and Other⁽¹⁾		(162	)		227		—		50
Net sales	$	81,089		$	93,870	$	155,229	$	186,521

⁽¹⁾	Includes adjustment for revenue on intercompany jobs.

	Three Months Ended June 30,						Six Months Ended June 30,
(dollars in thousands)	2018			2017			2018			2017
Income from Operations
Energy Solutions Segment	$	5,901		$	10,535		$	9,525		$	14,359
Industrial Solutions Segment		1,273			1,935			2,642			4,669
Fluid Handling Solutions Segment		2,182			4,148			5,392			7,457
Corporate and Other⁽²⁾		(6,539	)		(6,935	)		(2,025	)		(14,782	)
Eliminations		(236	)		(428	)		(822	)		(1,098	)
Income from operations	$	2,581		$	9,255		$	14,712		$	10,605

⁽²⁾

Includes gain on divestitures, net of selling costs, corporate compensation, professional services, information technology, executive transition expenses, acquisition and integration expenses, and other general and administrative corporate expenses. This figure excludes earnout expenses, which are recorded in the segment in which the expense occurs. See Note 7 for the earnout expenses by segment.

	Three Months Ended June 30,				Six Months Ended June 30,
(dollars in thousands)	2018		2017		2018		2017
Property and Equipment Additions
Energy Solutions Segment	$	15	$	116	$	32	$	352
Industrial Solutions Segment		90		31		165		40
Fluid Handling Solutions Segment		11		70		284		219
Corporate and Other		10		14		110		30
Property and equipment additions	$	126	$	231	$	591	$	641

	Three Months Ended June 30,				Six Months Ended June 30,
(dollars in thousands)	2018		2017		2018		2017
Depreciation and Amortization
Energy Solutions Segment	$	2,190	$	2,417	$	4,348	$	4,935
Industrial Solutions Segment		205		391		487		782
Fluid Handling Solutions Segment		1,002		1,197		1,996		2,395
Corporate and Other		62		25		125		56
Depreciation and amortization	$	3,459	$	4,030	$	6,956	$	8,168

(dollars in thousands)	June 30, 2018		December 31, 2017
Identifiable Assets
Energy Solutions Segment	$	278,901	$	258,218
Industrial Solutions Segment		56,352		66,723
Fluid Handling Solutions Segment		75,703		100,917
Corporate and Other⁽³⁾		10,445		12,691
Identifiable assets	$	421,401	$	438,549

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

(dollars in thousands)	June 30, 2018		December 31, 2017
Goodwill
Energy Solutions Segment	$	98,145	$	98,408
Industrial Solutions Segment		22,419		22,419
Fluid Handling Solutions Segment		31,807		46,124
Goodwill	$	152,371	$	166,951

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 June 30, 2018
						Less Inter-Segment Sales
(dollars in thousands)	Total Sales		Intra- Segment Sales			Industrial			Energy			Fluid			Corp and Other			Net Sales to Outside Customers
Net Sales
Energy Solutions Segment	$	53,322	$	(1,929	)	$	(252	)	$	—		$	(5	)	$	—		$	51,136
Industrial Solutions Segment		19,670		(813	)		—			(533	)		—			—			18,324
Fluid Handling Solutions Segment		12,409		(295	)		(323	)		—			—			—			11,791
Corporate and Other⁽⁴⁾		—		—			—			—			—			(162	)		(162	)
Net Sales	$	85,401	$	(3,037	)	$	(575	)	$	(533	)	$	(5	)	$	(162	)	$	81,089

	Three Months Ended June 30, 2017
						Less Inter-Segment Sales
(dollars in thousands)	Total Sales		Intra- Segment Sales			Industrial			Energy			Fluid			Corp and Other		Net Sales to Outside Customers
Net Sales
Energy Solutions Segment	$	55,338	$	(2,839	)	$	—		$	—		$	—		$	—	$	52,499
Industrial Solutions Segment		23,635		(800	)		—			—			(39	)		—		22,796
Fluid Handling Solutions Segment		19,160		(539	)		(258	)		(15	)		—			—		18,348
Corporate and Other⁽⁴⁾		—		—			—			—			—			227		227
Net Sales	$	98,133	$	(4,178	)	$	(258	)	$	(15	)	$	(39	)	$	227	$	93,870

	Six Months Ended June 30, 2018
						Less Inter-Segment Sales
(dollars in thousands)	Total Sales		Intra- Segment Sales			Environmental			Energy			FHF			Corp and Other		Net Sales to Outside Customers
Net Sales
Engineered Equipment Segment	$	96,450	$	(4,398	)	$	(938	)		—		$	(5	)		—	$	91,109
Air Quality Segment		38,398		(1,604	)		—			(673	)		—			—	$	36,121
Fluid Handling Solutions Segment		29,175		(809	)		(367	)		—			—			—	$	27,999
Corporate and Other⁽⁴⁾		—		—			—			—			—			—	$	—
Net Sales	$	164,023	$	(6,811	)	$	(1,305	)	$	(673	)	$	(5	)	$	—	$	155,229

	Six Months Ended June 30, 2017
						Less Inter-Segment Sales
(dollars in thousands)	Total Sales		Intra- Segment Sales			Environmental			Energy			FHF			Corp and Other		Net Sales to Outside Customers
Net Sales
Engineered Equipment Segment	$	111,377	$	(5,147	)	$	(22	)		—			—			—	$	106,208
Air Quality Segment		48,557		(1,690	)		—			(729	)		(39	)		—	$	46,099
Fluid Handling Solutions Segment		35,852		(1,157	)		(422	)		(109	)		—			—	$	34,164
Corporate and Other⁽⁴⁾		—		—			—			—			—			50	$	50
Net Sales	$	195,786	$	(7,994	)	$	(444	)	$	(838	)	$	(39	)	$	50	$	186,521

⁽⁴⁾	Includes adjustment for revenue on intercompany jobs.