15.	Business Segment Information

The Company’s operations are organized and reviewed by management along its product lines or end market that the segment serves and presented in three reportable segments.

Energy Segment

Our Energy segment provides customized solutions for the power generation and petrochemical industry. This includes natural 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, and silencer and precipitator applications, primarily for natural gas and coal-fired power plants, refining, oil production and petrochemical processing, as well as a variety of other industries.

Environmental Segment

Our Environmental segment provides the air pollution control technologies that enable our customers to reduce their carbon footprint, lower energy consumption, minimize waste and 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. In addition, this segment designs and manufactures fluid catalytic cracking unit cyclones used in the petroleum and petrochemical refining process. 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.

Fluid Handling and Filtration Segment

Our Fluid Handling and Filtration 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, 2016 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 Income.

The financial segment information is presented in the following tables:

	Three Months Ended September 30,						Nine Months Ended September 30,
(dollars in thousands)	2017			2016			2017			2016
Net Sales (less intra-, inter-segment sales)
Energy Segment	$	36,182		$	50,259		$	114,681		$	151,058
Environmental Segment		29,735			36,606			103,543			119,939
Fluid Handling and Filtration Segment		20,105			14,866			54,269			46,874
Corporate and Other⁽¹⁾		(1,035	)		(135	)		(985	)		(842	)
Net sales	$	84,987		$	101,596		$	271,508		$	317,029

⁽¹⁾	Includes adjustment for revenue on intercompany jobs.

	Three Months Ended September 30,						Nine Months Ended September 30,
(dollars in thousands)	2017			2016			2017			2016
Income from Operations
Energy Segment	$	5,287		$	8,502		$	14,428		$	20,065
Environmental Segment		2,157			5,459			12,043			16,324
Fluid Handling and Filtration Segment		4,299			3,109			11,756			9,507
Corporate and Other⁽²⁾		(5,404	)		(6,520	)		(20,184	)		(20,058	)
Eliminations		(709	)		(51	)		(1,808	)		(971	)
Income from operations	$	5,630		$	10,499		$	16,235		$	24,867

⁽²⁾

Includes corporate compensation, professional services, information technology, acquisition and integration expenses, and other general and administrative corporate expenses / income. This figure excludes earn-out expenses / income, which are recorded in the segment in which the expense / income occurs. See Note 7 for the earn-out expenses / income by segment.

	Three Months Ended September 30,				Nine Months Ended September 30,
(dollars in thousands)	2017		2016		2017		2016
Property and Equipment Additions
Energy Segment	$	69	$	4	$	419	$	232
Environmental Segment		68		225		110		529
Fluid Handling and Filtration Segment⁽³⁾		17		1,118		236		4,428
Corporate and Other		11		1		41		7
Property and equipment additions	$	165	$	1,348	$	806	$	5,196

⁽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.

	Three Months Ended September 30,				Nine Months Ended September 30,
(dollars in thousands)	2017		2016		2017		2016
Depreciation and Amortization
Energy Segment	$	1,927	$	2,341	$	5,957	$	8,082
Environmental Segment		813		994		2,500		2,868
Fluid Handling and Filtration Segment		1,168		1,321		3,563		3,969
Corporate and Other		29		33		85		98
Depreciation and Amortization	$	3,937	$	4,689	$	12,105	$	15,017

(dollars in thousands)	September 30, 2017		December 31, 2016
Identifiable Assets
Energy Segment	$	234,575	$	257,566
Environmental Segment		106,373		118,680
Fluid Handling and Filtration Segment		102,485		104,294
Corporate and Other⁽⁴⁾		12,110		18,094
Identifiable Assets	$	455,543	$	498,634

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

(dollars in thousands)	September 30, 2017		December 31, 2016
Goodwill
Energy Segment	$	76,913	$	75,827
Environmental Segment		48,203		48,203
Fluid Handling and Filtration Segment		46,123		46,123
Goodwill	$	171,239	$	170,153

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, 2017
						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
Energy Segment	$	37,290	$	(1,102	)	$	(6	)	$	—		$	—		$	—		$	36,182
Environmental Segment		30,138		(396	)		—			(1	)		(6	)		—			29,735
Fluid Handling and Filtration Segment		20,768		(570	)		(55	)		(38	)		—			—			20,105
Corporate and Other⁽⁵⁾		—		—			—			—			—			(1,035	)		(1,035	)
Net Sales	$	88,196	$	(2,068	)	$	(61	)	$	(39	)	$	(6	)	$	(1,035	)	$	84,987

	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
Energy Segment	$	51,155	$	(874	)	$	(22	)	$	—		$	—		$	—		$	50,259
Environmental Segment		38,454		(941	)		—			(878	)		(29	)		—			36,606
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

	Nine Months Ended September 30, 2017
						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
Energy Segment	$	120,958	$	(6,249	)	$	(28	)	$	—		$	—		$	—		$	114,681
Environmental Segment		106,404		(2,086	)		—			(730	)		(45	)		—			103,543
Fluid Handling and Filtration Segment		56,620		(1,727	)		(477	)		(147	)		—			—			54,269
Corporate and Other⁽⁵⁾		—		—			—			—			—			(985	)		(985	)
Net Sales	$	283,982	$	(10,062	)	$	(505	)	$	(877	)	$	(45	)	$	(985	)	$	271,508

	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
Energy Segment	$	153,476	$	(2,019	)	$	(399	)	$	—		$	—		$	—		$	151,058
Environmental Segment		126,029		(3,539	)		—			(2,345	)		(206	)		—			119,939
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

⁽⁵⁾	Includes adjustment for revenue on intercompany jobs.