BUSINESS SEGMENTS AND OTHER INFORMATION

12 Months Ended

Jan. 31, 2012

BUSINESS SEGMENT DATA [Abstract]

BUSINESS SEGMENT DATA AND OTHER INFORMATION

NOTE 15:              BUSINESS SEGMENTS AND OTHER INFORMATION

The segment discussion outlined below represents the adjusted segment structure as determined by management in accordance with FASB ASC Topic 280, "Segment Reporting".

The Company has five operating segments which are aggregated into three reportable segments: Product Recovery/Pollution Control Technologies, Fluid Handling Technologies and Mefiag Filtration Technologies, and one other segment (Filtration/Purification Technologies). The Filtration/Purification Technologies segment is comprised of two operating segments that do not meet the criteria for aggregation outlined in FASB ASC Topic 280-10-50-12. The Company's analysis is that FASB ASC Topic 280-10-50-12 permits the aggregation of operating segments if, individually, each operating segment does not meet any of the following quantitative thresholds: (i) reported revenue is 10% or more of combined revenue of all reported operating segments, (ii) the absolute amount of reported profit or loss is 10% or more of the greater, in absolute amounts, of either the combined reported profit of all operating segments that did not report a loss or the combined reported loss of all operating segments that did report a loss, and (iii) its assets are 10% or more of the combined assets of all operating segments.  As of the fiscal years ended January 31, 2012, 2011 and 2010, none of the operating segments included in the Filtration/Purification Technologies segment met these criteria, and at least 75% of total consolidated revenue was included in the Product Recovery/Pollution Control Technologies, Fluid Handling Technologies and Mefiag Filtration Technologies reporting segments; therefore the Company determined the aggregation of these operating segments into this other segment was appropriate under FASB ASC Topic 280-10-50-12.

The Company expects, based upon the current financial performance of its business units, the segmentation reporting will continue to be presented in future periods using the three reportable segments and the one other segment.

The following is a description of each segment:

Product Recovery/Pollution Control Technologies: This reportable segment consists of one operating segment that manufactures products for the purification of air or liquids.  Many of these products are custom designed and engineered to solve a customer's product recovery or pollution control issues.  The products are sold worldwide through Company sales personnel and a network of manufacturer's representatives.  This reporting segment is comprised of the Met-Pro Environmental Air Solutions (the combination of the Duall, Systems, Flex-Kleen, Bio-Reaction Industries and Met-Pro Industrial Services product brands), Met-Pro Product Recovery/Pollution Control Technologies Inc., and Strobic Air Corporation business units.

Fluid Handling Technologies: This reportable segment consists of one operating segment that manufactures high-quality centrifugal pumps that are suitable for difficult applications, including the pumping of acids, brines, caustics, bleaches, seawater, high-temperature liquids and a wide variety of waste liquids.  A variety of pump configurations make these products adaptable to almost any pumping application.  These products are sold worldwide through an extensive network of distributors.  This reporting segment is comprised of Met-Pro Global Pump Solutions business unit (consisting of the Dean Pump, Fybroc and Sethco product brands).

Mefiag Filtration Technologies:  This reportable segment consists of one operating segment that produces filter systems using horizontal disc technology for tough, corrosive applications in the plating, metal finishing and printing industries.  These products are sold worldwide through Company sales personnel and a network of distributors.  This reporting segment is comprised of the Mefiag, Mefiag B.V. and Mefiag (Guangzhou) Filter Systems Ltd. business units.

Filtration/Purification Technologies: This other segment consists of two operating segments that produce the following products: proprietary chemicals for the treatment of municipal drinking water systems and boiler and cooling tower systems; cartridges and filter housings; and filtration products for difficult industrial air and liquid applications.  This other segment is comprised of the Keystone Filter and Pristine Water Solutions operating segments.

The accounting policies of the reporting segments are the same as those described in the summary of significant accounting policies. The Company evaluates the performance of these segments based on many factors including sales, sales trends, margins and operating performance.

No significant intercompany revenue is realized in these reporting segments. 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.

Financial information for the three reporting segments and one other segment is as follows:

	Years ended January  31,
	2012	2011	2010
Net sales to unaffiliated customers
Product Recovery/Pollution Control Technologies	$43,568,042	$41,426,858	$35,899,630
Fluid Handling Technologies	33,264,149	27,488,559	24,527,998
Mefiag Filtration Technologies	12,945,610	9,897,038	9,526,908
Filtration/Purification Technologies	10,383,591	10,052,971	10,177,957
	$100,161,392	$88,865,426	$80,132,493
Income (loss) from operations
Product Recovery/Pollution Control Technologies	$1,198,674	$2,046,716	$1,924,005
Fluid Handling Technologies	8,220,768	5,926,592	4,325,853
Mefiag Filtration Technologies	780,586	401,695	(34,886	)
Filtration/Purification Technologies	391,256	595,318	297,583
	$10,591,284	$8,970,321	$6,512,555
Depreciation and amortization expense
Product Recovery/Pollution Control Technologies	$708,507	$657,724	$620,734
Fluid Handling Technologies	720,841	672,072	703,644
Mefiag Filtration Technologies	265,192	265,261	331,065
Filtration/Purification Technologies	219,878	229,628	276,069
	$1,914,418	$1,824,685	$1,931,512
Capital expenditures
Product Recovery/Pollution Control Technologies	$692,383	$305,803	$312,221
Fluid Handling Technologies	580,354	476,104	291,452
Mefiag Filtration Technologies	420,187	138,384	29,740
Filtration/Purification Technologies	110,886	57,679	59,278
	1,803,810	977,970	692,691
Corporate	293,424	687,979	1,441,116
	$2,097,234	$1,665,949	$2,133,807
Identifiable assets at January 31
Product Recovery/Pollution Control Technologies	$36,444,763	$34,003,251	$34,466,168
Fluid Handling Technologies	19,290,035	18,114,257	18,068,428
Mefiag Filtration Technologies	14,017,572	12,814,143	12,257,281
Filtration/Purification Technologies	8,368,652	8,369,385	8,257,837
	78,121,022	73,301,036	73,049,714
Corporate	37,388,193	34,745,292	31,558,645
	$115,509,215	$108,046,328	$104,608,359

The Company follows the practice of allocating general corporate expenses, including depreciation and amortization expense, among the reporting segments.

Geographic Information:

Transfers between geographic areas are accounted for at cost and consistent with rules and regulations of governing tax authorities.  Such transfers are eliminated in the consolidated financial statements. Income from operations by geographic segment includes an allocation of general corporate expenses.  Identifiable assets are those that can be directly associated with the geographic area. Geographic information for the three years ended January 31 is presented in the following table:

	2012	2011	2010
Net sales:
United States	$72,180,541	$66,459,905	$60,499,608
Foreign	27,980,851	22,405,521	19,632,885
	$100,161,392	$88,865,426	$80,132,493
Foreign Sales by Segment:
Product Recovery/Pollution Control Technologies	$7,492,321	$7,912,462	$7,017,041
Fluid Handling Technologies	10,072,782	7,086,069	5,081,925
Mefiag Filtration Technologies	10,290,964	7,310,354	7,444,774
Filtration/Purification Technologies	124,784	96,636	89,145
	$27,980,851	$22,405,521	$19,632,885
Income from operations:
United States	$6,264,686	$5,721,656	$4,991,481
Foreign	4,326,598	3,248,665	1,521,074
	$10,591,284	$8,970,321	$6,512,555
Total assets:
United States	$104,812,114	$97,875,243	$94,035,051
Foreign	10,697,101	10,171,085	10,573,308
	$115,509,215	$108,046,328	$104,608,359