SEGMENT INFORMATION

12 Months Ended

Jan. 02, 2015

SEGMENT INFORMATION

SEGMENT INFORMATION

12. SEGMENT INFORMATION

        The Company has four reporting segments: Energy Efficiency Services, Engineering Services, Public Finance Services and Homeland Security Services. The Engineering Services segment consists of Willdan Engineering and Public Agency Resources. The Energy Efficiency Services segment, which consists of Willdan Energy Solutions, provides energy efficiency consulting services to utilities, state agencies, municipalities, private industry and non-profit organizations. The Engineering Services segment offers a broad range of engineering and planning services to our public and private sector clients. Prior to December 30, 2011, the energy efficiency and sustainability services were aggregated into the Engineering Services segment. Given the manner in which the chief operating decision maker reviews financial results and allocates resources, these services now compromise a separate reporting segment. Segment information for the comparable prior year period has been restated to conform to the Company's current segment presentation of four operating segments. The Public Finance Services segment, which consists of Willdan Financial Services, provides expertise and support for the various financing techniques employed by public agencies to finance their operations and infrastructure along with the mandated reporting and other requirements associated with these financings. The Homeland Security Services segment, which consists of Willdan Homeland Solutions, provides national preparedness, homeland security consulting, public safety and emergency response services to cities, related municipal service agencies and other entities.

        The accounting policies applied to determine the segment information are the same as those described in the summary of significant accounting policies. There were no intersegment sales in any of the three fiscal years ended January 2, 2015. Management evaluates the performance of each segment based upon income or loss from operations before income taxes. Certain segment asset information including expenditures for long-lived assets has not been presented as it is not reported to or reviewed by the chief operating decision maker. In addition, enterprise-wide service line contract revenue is not included as it is impracticable to report this information for each group of similar services.

        Financial information with respect to the reportable segments and reconciliation to the amounts reported in the Company's consolidated financial statements follows:

	Engineering Services			Energy Efficiency Services			Public Finance Services			Homeland Security Services			Unallocated Corporate(2)			Intersegment			Consolidated Total
Fiscal Year 2014:
Contract revenue	$	40,783,000		$	52,941,000		$	10,630,000		$	3,726,000		$	—		$	—		$	108,080,000
Depreciation and amortization		191,000			212,000			39,000			18,000			—			—			459,000
Interest expense (income)		17,000			(33,000	)		2,000			(2,000	)								(16,000	)
Segment profit (loss) before income tax expense		4,008,000			4,814,000			661,000			443,000			(1,500,000	)		—			8,426,000
Income tax (benefit) expense		(454,000	)		(599,000	)		(64,000	)		(49,000	)		176,000			—			(990,000	)
Net income (loss)		4,462,000			5,413,000			725,000			492,000			(1,676,000	)		—			9,416,000
Segment assets(1)		11,166,000			11,769,000			3,944,000			708,000			50,202,000			(23,130,000	)		54,659,000
Fiscal Year 2013:
Contract revenue	$	35,217,000		$	36,041,000		$	9,845,000		$	4,407,000		$	—		$	—		$	85,510,000
Depreciation and amortization		214,000			223,000			41,000			39,000			—			—			517,000
Interest (income) expense		(68,000	)		(25,000	)		(3,000	)		2,000			—			—			(94,000	)
Segment profit before income tax expense		1,125,000			710,000			535,000			392,000			—			—			2,762,000
Income tax expense (benefit)		53,000			45,000			17,000			17,000			—			—			132,000
Net income		1,072,000			665,000			518,000			375,000			—			—			2,630,000
Segment assets(1)		10,436,000			10,305,000			3,528,000			1,406,000			35,692,000			(23,130,000	)		38,237,000
Fiscal Year 2012:
Contract revenue	$	34,026,000		$	45,549,000		$	9,780,000		$	4,088,000		$	—		$	—		$	93,443,000
Depreciation and amortization		256,000			262,000			53,000			100,000			—			—			671,000
Interest expense (income)		50,000			52,000			1,000			3,000			—			—			106,000
Segment (loss) profit before income tax expense		(726,000	)		(19,314,000	)		930,000			(273,000	)		—			—			(19,383,000	)
Income tax expense (benefit)		(115,000	)		(2,211,000	)		344,000			(101,000	)		—			—			(2,083,000	)
Net (loss) income		(611,000	)		(17,103,000	)		586,000			(172,000	)		—			—			(17,300,000	)
Segment assets(1)		9,237,000			13,256,000			3,411,000			1,371,000			37,831,000			(23,129,000	)		41,977,000

(1)	Segment assets are presented net of intercompany receivables.
(2)	The following sets forth the assets that are included in Unallocated Corporate as of January 2, 2015, December 27, 2013 and December 30, 2011.

	2014		2013		2012
Assets:
Cash and cash equivalents	$	20,371,000	$	7,341,000	$	9,881,000
Prepaid expenses		1,404,000		1,206,000		1,041,000
Intercompany receivables		85,259,000		114,800,000		113,615,000
Other receivables		19,000		73,000		49,000
Equipment and leasehold improvements, net		440,000		177,000		194,000
Investments in subsidiaries		23,130,000		23,130,000		23,130,000
Other		4,640,000		3,765,000		3,536,000
	$	135,263,000	$	150,492,000	$	151,446,000