Business Segment Information

3 Months Ended

Mar. 31, 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 solutions and end markets served, 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 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, water and 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 air pollution control, 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 and 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 March 31,
(dollars in thousands)	2021		2020
Net Sales (less intra-, inter-segment sales)
Engineered Systems	$	42,057	$	50,646
Industrial Process Solutions		29,835		29,840
Net sales	$	71,892	$	80,486

	Three months ended March 31,
(dollars in thousands)	2021			2020
Income from Operations
Engineered Systems	$	6,170		$	8,557
Industrial Process Solutions		3,822			3,096
Corporate and Other(1)		(6,938	)		(7,414	)
Income from operations	$	3,054		$	4,239

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

	Three months ended March 31,
(dollars in thousands)	2021		2020
Property and Equipment Additions
Engineered Systems	$	9	$	197
Industrial Process Solutions		190		579
Corporate and Other		293		200
Property and equipment additions	$	492	$	976

	Three months ended March 31,
(dollars in thousands)	2021		2020
Depreciation and Amortization
Engineered Systems	$	1,067	$	1,221
Industrial Process Solutions		1,068		928
Corporate and Other		300		47
Depreciation and amortization	$	2,435	$	2,196

(dollars in thousands)	March 31, 2021		December 31, 2020
Identifiable Assets
Engineered Systems	$	264,607	$	270,573
Industrial Process Solutions		137,351		135,204
Corporate and Other(2)		11,699		13,537
Identifiable assets	$	413,657	$	419,314

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

(dollars in thousands)	March 31, 2021		December 31, 2020
Goodwill
Engineered Systems	$	99,617	$	99,785
Industrial Process Solutions		62,035		62,035
Goodwill	$	161,652	$	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 March 31, 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	$	44,476	$	(2,374	)	$	(45	)	$	—		$	42,057
Industrial Process Solutions		32,933		(2,774	)		—			(324	)		29,835
Net Sales	$	77,409	$	(5,148	)	$	(45	)	$	(324	)	$	71,892

	Three months ended March 31, 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	$	53,338	$	(2,535	)	$	(157	)	$	—		$	50,646
Industrial Process Solutions		33,890		(3,666	)		—			(384	)		29,840
Net Sales	$	87,228	$	(6,201	)	$	(157	)	$	(384	)	$	80,486