Business Segment Information

12 Months Ended

Dec. 31, 2018

18.	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 are presented in three reportable segments. The results of the segments are reviewed through to the “Income (loss) from operations” line on the Consolidated Statements of Operations. The accounting policies of the segments are the same as those in the consolidated financial statements. Except for the information reported on a segment basis, the Company does not accumulate net sales information by product or service and therefore, the Company does not disclose net sales by product or service because to do so would be impractical.

During the first quarter of 2018, the Company finalized an overall assessment and recalibration of its strategy. As a part of the changes to its strategy, management determined that a realignment of the Company’s segments was necessary to better reflect the technologies and solutions we provide, and the end markets we serve. As a result of this realignment, the reportable segments of the Company have been renamed and we reclassified the operating results of certain business units within the Energy Solutions and Industrial Solutions segments to have their reportable segment more closely align with our strategy. We have reclassified all prior year amounts to reflect the new segment structure.

The Company’s reportable segments are organized as groups of similar products and services, as described as follows:

•

Energy Solutions segment: Our Energy Solutions segment serves the Energy market, where we are a key part of helping meet the global demand for Clean Energy with products and services that support our customers with efficient solutions and technologies to keep the world clean and safe. Our offerings improve air quality and solves fluid handling needs with market leading, highly engineered, and customized solutions for the power generation, oil & gas, and petrochemical industries.

•

Industrial Solutions segment: Our Industrial Solutions segment serves the Industrial Pollution Control market where our aim is to address the growing need to protect the air we breathe and help our customers’ desires for sustainability upgrades beyond carbon footprint issues. Our offerings improve air quality with a compelling solution set of 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, and industrial odors.

•

Fluid Handling Solutions segment: Our Fluid Handling Solutions segment offers unique pump and filtration solutions that maintain safe and clean operations in some of the most harsh and toxic environments. In this market, we provide solutions for mission-critical applications to a wide variety of industries including, but not limited to, plating and metal finishing, food and beverage, chemical, petrochemical, pharmaceutical, wastewater treatment, desalination and the aquarium & aquaculture markets.

	2018		2017			2016
Net Sales (less intra-, inter-segment sales)
(Table only in thousands)
Energy Solutions segment	$	211,185	$	188,955		$	254,806
Industrial Solutions segment		75,414		87,838			101,909
Fluid Handling Solutions segment		50,740		69,159			61,788
Corporate and Other (1)		—		(901	)		(1,492	)
Net sales	$	337,339	$	345,051		$	417,011

(1)	Includes adjustment for revenue on intercompany jobs.

	2018			2017			2016
Income (loss) from Operations
(Table only in thousands)
Energy Solutions segment	$	28,398		$	14,565		$	30,582
Industrial Solutions segment		5,635			8,123			8,481
Fluid Handling Solutions segment		8,402			14,736			(36,209	)
Corporate and Other (2)		(32,433	)		(26,649	)		(26,817	)
Eliminations		—			(2,751	)		(1,599	)
Income (loss) from operations	$	10,002		$	8,024		$	(25,562	)

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

	2018		2017		2016
Property and Equipment Additions
(Table only in thousands)
Energy Solutions segment	$	205	$	444	$	672
Industrial Solutions segment		756		160		301
Fluid Handling Solutions segment (3)		1,226		382		4,481
Corporate and Other		903		42		7
Property and equipment additions	$	3,090	$	1,028	$	5,461

(3)	Includes non-cash additions of $4,385 for property, plant, and equipment acquired under capital leases for 2016. See Note 12 for further detail.

	2018		2017		2016
Depreciation and Amortization
(Table only in thousands)
Energy Solutions segment	$	8,112	$	9,675	$	11,557
Industrial Solutions segment		1,067		1,488		1,814
Fluid Handling Solutions segment		3,517		4,754		5,406
Corporate and Other		576		171		126
Depreciation and amortization	$	13,272	$	16,088	$	18,903

	December 31,
	2018		2017
Identifiable Assets
(Table only in thousands)
Energy Solutions segment	$	245,842	$	258,218
Industrial Solutions segment		54,179		66,723
Fluid Handling Solutions segment		73,910		100,917
Corporate and Other (4)		18,651		12,691
Identifiable assets	$	392,582	$	438,549

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

	December 31,
	2018		2017
Goodwill
(Table only in thousands)
Energy Solutions segment	$	97,930	$	98,408
Industrial Solutions segment		22,419		22,419
Fluid Handling Solutions segment		31,807		46,124
Goodwill	$	152,156	$	166,951

Intra-segment and Inter-segment Revenues

The Company has divisions that sell to each other within segments (intra-segment sales) and between segments (inter-segment sales) as indicated in the following tables:

	Year Ended December 31, 2018
						Less Inter-Segment Sales
	Total Sales		Intra - Segment Sales			Industrial			Energy			Fluid			Corp and Other		Net Sales to Outside Customers
Net Sales
(Table only in thousands)
Energy Solutions segment	$	220,334	$	(7,912	)	$	(1,232	)	$	—		$	(5	)	$	—	$	211,185
Industrial Solutions segment		79,139		(3,084	)		—			(600	)		(41	)		—		75,414
Fluid Handling Solutions segment		52,846		(1,483	)		(616	)		(7	)		—			—		50,740
Corporate and Other		—		—			—			—			—			—		—
Net Sales	$	352,319	$	(12,479	)	$	(1,848	)	$	(607	)	$	(46	)	$	—	$	337,339

	Year Ended December 31, 2017
						Less Inter-Segment Sales
	Total Sales		Intra - Segment Sales			Industrial			Energy			Fluid			Corp and Other			Net Sales to Outside Customers
Net Sales
(Table only in thousands)
Energy Solutions segment	$	197,897	$	(8,833	)	$	(109	)	$	—		$	—		$	—		$	188,955
Industrial Solutions segment		91,915		(3,235	)		—			(787	)		(55	)		—			87,838
Fluid Handling Solutions segment		73,652		(3,169	)		(492	)		(832	)		—			—			69,159
Corporate and Other (5)		—		—			—			—			—			(901	)		(901	)
Net Sales	$	363,464	$	(15,237	)	$	(601	)	$	(1,619	)	$	(55	)	$	(901	)	$	345,051

	Year Ended December 31, 2016
						Less Inter-Segment Sales
	Total Sales		Intra - Segment Sales			Industrial			Energy			Fluid			Corp and Other			Net Sales to Outside Customers
Net Sales
(Table only in thousands)
Energy Solutions segment	$	258,710	$	(3,506	)	$	(398	)	$	—		$	—		$	—		$	254,806
Industrial Solutions segment		109,524		(4,256	)		—			(3,153	)		(206	)		—			101,909
Fluid Handling Solutions segment		64,332		(1,714	)		(317	)		(513	)		—			—			61,788
Corporate and Other (5)		—		—			—			—			—			(1,492	)		(1,492	)
Net Sales	$	432,566	$	(9,476	)	$	(715	)	$	(3,666	)	$	(206	)	$	(1,492	)	$	417,011

(5)

Includes adjustment for revenue on intercompany jobs.

No single customer represented greater than 10% of consolidated net sales or accounts receivable for 2018, 2017, or 2016.

For 2018, 2017, and 2016, sales to customers outside the United States, including export sales, accounted for approximately 33%, 32%, and 37%, respectively, of consolidated net sales. The largest portion of export sales in 2018 was destined for Asia (11.5%), Europe (11.0%), and Middle East and Africa (6.2%). Of consolidated long-lived assets, $19.1 million and $29.7 million were located outside of the United States as of December 31, 2018 and 2017, respectively. The largest portion of long-lived assets located outside the United States at December 31, 2018 were in Europe ($14.5 million).