Business Segment Information

6 Months Ended

Jun. 30, 2021

Segment Reporting [Abstract]

Business Segment Information

15. Business Segment Information

The Company’s operations are organized and reviewed by management along with its solutions or end markets that the segment serves and presented in two reportable segments. 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 Condensed 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/waste water, 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 emissions management, product recovery, thermal acoustics, and water & gas separation solutions.

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.

The financial segment information is presented in the following tables:

	Three months ended June 30,				Six months ended June 30,
(dollars in thousands)	2021		2020		2021		2020
Net sales (less intra-, inter-segment sales)
Engineered Systems segment	$	43,360	$	49,074	$	85,417	$	99,720
Industrial Process Solutions segment		35,320		26,096		65,155		55,936
Net sales	$	78,680	$	75,170	$	150,572	$	155,656

	Three months ended June 30,						Six months ended June 30,
(dollars in thousands)	2021			2020			2021			2020
Income from operations
Engineered Systems segment	$	5,634		$	8,646		$	11,804		$	17,203
Industrial Process Solutions segment		4,441			1,836			8,263			4,932
Corporate and Other(1)		(7,930	)		(6,087	)		(14,868	)		(13,502	)
Income from operations	$	2,145		$	4,395		$	5,199		$	8,633

⁽¹⁾ Includes corporate compensation, professional services, information technology, and other general and administrative corporate expenses.  

	Three months ended June 30,				Six months ended June 30,
(dollars in thousands)	2021		2020		2021		2020
Property and equipment additions
Engineered Systems segment	$	55	$	101	$	64	$	298
Industrial Process Solutions segment		172		190		362		769
Corporate and Other		278		725		571		925
Property and equipment additions	$	505	$	1,016	$	997	$	1,992

	Three months ended June 30,				Six months ended June 30,
(dollars in thousands)	2021		2020		2021		2020
Depreciation and amortization
Engineered Systems segment	$	1,070	$	1,224	$	2,137	$	2,445
Industrial Process Solutions segment		1,073		983		2,141		1,911
Corporate and Other		328		245		628		292
Depreciation and amortization	$	2,471	$	2,452	$	4,906	$	4,648

(dollars in thousands)	June 30, 2021		December 31, 2020
Identifiable assets
Engineered Systems segment	$	262,663	$	270,573
Industrial Process Solutions segment		136,917		135,204
Corporate and Other(2)		11,122		13,537
Identifiable assets	$	410,702	$	419,314

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

(dollars in thousands)	June 30, 2021		December 31, 2020
Goodwill
Engineered Systems segment	$	99,747	$	99,785
Industrial Process Solutions segment		62,035		62,035
Goodwill	$	161,782	$	161,820

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, 2021
						Less Inter-Segment Sales
(dollars in thousands)	Total Sales		Intra- Segment Sales			Industrial Process Solutions			Engineered Systems			Net Sales to Outside Customers
Net sales
Engineered Systems segment	$	47,069	$	(3,513	)	$	(196	)	$	—		$	43,360
Industrial Process Solutions segment		41,245		(5,281	)		—			(644	)		35,320
Net sales	$	88,314	$	(8,794	)	$	(196	)	$	(644	)	$	78,680

	Three months ended June 30, 2020
						Less Inter-Segment Sales
(dollars in thousands)	Total Sales		Intra- Segment Sales			Industrial Process Solutions			Engineered Systems			Net Sales to Outside Customers
Net sales
Engineered Systems segment	$	52,369	$	(2,984	)	$	(311	)	$	—		$	49,074
Industrial Process Solutions segment		30,438		(3,935	)		—			(407	)		26,096
Net sales	$	82,807	$	(6,919	)	$	(311	)	$	(407	)	$	75,170

	Six months ended June 30, 2021
						Less Inter-Segment Sales
(dollars in thousands)	Total Sales		Intra- Segment Sales			Industrial Process Solutions			Engineered Systems			Net Sales to Outside Customers
Net sales
Engineered Systems segment	$	91,545	$	(5,887	)	$	(241	)	$	—		$	85,417
Industrial Process Solutions segment		74,178		(8,055	)		—			(968	)		65,155
Net sales	$	165,723	$	(13,942	)	$	(241	)	$	(968	)	$	150,572

	Six months ended June 30, 2020
						Less Inter-Segment Sales
(dollars in thousands)	Total Sales		Intra- Segment Sales			Industrial Process Solutions			Engineered Systems			Net Sales to Outside Customers
Net sales
Engineered Systems segment	$	107,978	$	(7,790	)	$	(468	)	$	—		$	99,720
Industrial Process Solutions segment		64,328		(7,601	)		—			(791	)		55,936
Net sales	$	172,306	$	(15,391	)	$	(468	)	$	(791	)	$	155,656