Business Segment Information | 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 Nine Months Ended 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 Nine Months Ended 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 Nine Months Ended 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 Nine Months Ended 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, December 31, 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, December 31, 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 Intra- Environmental Energy FHF Corp Net Sales to 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 Intra- Environmental Energy FHF Corp Net Sales to 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 Intra- Environmental Energy FHF Corp Net Sales to 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 Intra- Environmental Energy FHF Corp Net Sales to 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. |