18.	Business Segment Information

The Company’s operations are organized and reviewed by management along its product lines and presented in three reportable segments.

Environmental Segment

Our Environmental 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.

Energy Segment

Our Energy segment provides customized solutions for the power and petrochemical industry. This includes gas turbine exhaust systems, dampers and diverters, gas and liquid separation and filtration equipment, selective catalytic reduction (“SCR”) and selective non-catalytic reduction (“SNCR”) systems, acoustical components and silencers, secondary separators (nuclear plant reactor vessels) and expansion joints, 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.

Fluid Handling and Filtration Segment

Our Fluid Handling and Filtration (“FHF”) segment provides the design and manufacture of high quality pump, filtration and fume exhaust solutions. This includes 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. 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.

The accounting policies of the reporting segments are the same as those described in the summary of significant accounting policies in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015 filed with the SEC. 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 September 30,					Nine Months Ended September 30,
(dollars in thousands)	2016			2015		2016			2015
Net Sales (less intra-, inter-segment sales)
Environmental Segment	$	36,606		$	40,644	$	119,939		$	124,158
Energy Segment		50,259			40,014		151,058			91,666
Fluid Handling and Filtration Segment		14,866			17,136		46,874			50,075
Corporate and Other⁽¹⁾		(135	)		436		(842	)		277
Net sales	$	101,596		$	98,230	$	317,029		$	266,176

⁽¹⁾	Includes adjustment for revenue on intercompany jobs.

	Three Months Ended September 30,						Nine Months Ended September 30,
(dollars in thousands)	2016			2015			2016			2015
Income (loss) from Operations
Environmental Segment	$	5,459		$	5,225		$	16,324		$	14,383
Energy Segment		8,502			(1,082	)		20,065			(447	)
Fluid Handling and Filtration Segment		3,109			4,011			9,507			11,398
Corporate and Other⁽²⁾		(6,520	)		(11,170	)		(20,058	)		(20,061	)
Eliminations		(51	)		822			(971	)		-
Income (loss) from operations	$	10,499		$	(2,194	)	$	24,867		$	5,273

⁽²⁾	Includes corporate compensation, professional services, information technology, acquisition and integration expenses, and other general and administrative corporate expenses.

	Three Months Ended September 30,				Nine Months Ended September 30,
(dollars in thousands)	2016		2015		2016		2015
Property and Equipment Additions
Environmental Segment	$	4	$	49	$	232	$	130
Energy Segment		225		66		529		245
Fluid Handling and Filtration Segment⁽³⁾		1,118		65		4,428		133
Corporate and Other		1		5		7		18
Property and equipment additions	$	1,348	$	185	$	5,196	$	526

⁽³⁾	Includes non-cash additions of $1,089 and $4,385 for property, plant, and equipment acquired under capital leases during the three months ended September 30, 2016 and nine months ended September 30, 2016, respectively. See Note 15 for further detail.

	Three Months Ended September 30,				Nine Months Ended September 30,
(dollars in thousands)	2016		2015		2016		2015
Depreciation and Amortization
Environmental Segment	$	994	$	1,092	$	2,868	$	3,349
Energy Segment		2,341		1,526		8,082		2,957
Fluid Handling and Filtration Segment		1,321		1,586		3,969		4,772
Corporate and Other		33		70		98		139
Depreciation and Amortization	$	4,689	$	4,274	$	15,017	$	11,217

(dollars in thousands)	September 30, 2016		December 31, 2015
Identifiable Assets
Environmental Segment	$	122,350	$	135,171
Energy Segment		263,059		283,002
Fluid Handling and Filtration Segment		155,143		161,394
Corporate and Other⁽⁴⁾		21,406		19,252
Identifiable Assets	$	561,958	$	598,819

⁽⁴⁾	Corporate assets primarily consist of cash and income tax related assets.

(dollars in thousands)	September 30, 2016		December 31, 2015
Goodwill
Environmental Segment	$	55,031	$	55,031
Energy Segment		76,443		72,075
Fluid Handling and Filtration Segment		93,057		93,057
Goodwill	$	224,531	$	220,163

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, 2016
						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
Environmental Segment	$	38,454	$	(941	)	$	—		$	(878	)	$	(29	)	$	—		$	36,606
Energy Segment		51,155		(874	)		(22	)		—			—			—			50,259
Fluid Handling and Filtration Segment		15,451		(313	)		(88	)		(184	)		—			—			14,866
Corporate and Other⁽⁵⁾		—		—			—			—			—			(135	)		(135	)
Net Sales	$	105,060	$	(2,128	)	$	(110	)	$	(1,062	)	$	(29	)	$	(135	)	$	101,596

	Three Months Ended September 30, 2015
						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
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⁽⁵⁾		—		—			—			—			—			436		436
Net Sales	$	102,090	$	(3,842	)	$	(101	)	$	(345	)	$	(8	)	$	436	$	98,230

	Nine Months Ended September 30, 2016
						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
Environmental Segment	$	126,029	$	(3,539	)	$	—		$	(2,345	)	$	(206	)	$	—		$	119,939
Energy Segment		153,476		(2,019	)		(399	)		—			—			—			151,058
Fluid Handling and Filtration Segment		48,508		(1,168	)		(282	)		(184	)		—			—			46,874
Corporate and Other⁽⁵⁾		—		—			—			—			—			(842	)		(842	)
Net Sales	$	328,013	$	(6,726	)	$	(681	)	$	(2,529	)	$	(206	)	$	(842	)	$	317,029

	Nine Months Ended September 30, 2015
						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
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⁽⁵⁾		—		—			—			—			—			277		277
Net Sales	$	278,199	$	(10,531	)	$	(823	)	$	(938	)	$	(8	)	$	277	$	266,176

⁽⁵⁾	Includes adjustment for revenue on intercompany jobs.